Document:

Exhibit 10.10

 

TERMINATION
OF EQUIPMENT LEASE

AND BILL OF
SALE

 

THIS TERMINATION OF
EQUIPMENT LEASE AND BILL OF SALE (this “Agreement”) is made and entered
into as of October 5, 2009 by and between Granite City Food & Brewery,
Ltd., a Minnesota corporation (“Lessee”) and DHW Leasing, L.L.C., a
South Dakota limited liability company (“Lessor”).

 

RECITALS:

 

A.                                   Lessor and Lessee are currently parties to a written Master Equipment
Finance Lease dated September 19, 2006 and an Equipment Lease Commitment
dated December 6, 2007 (collectively, the “Master Lease”) and sixteen
(16) separate leases identified on the attached Exhibit A (each, a “Lease”),
relating to the lease of certain furniture, fixtures, machinery, equipment and
other personal property as described in Exhibit A to each Lease (the “Equipment”).

 

B.                                     Lessor and Lessee have entered into a Debt Conversion Agreement and
Lessor has agreed in connection therewith to (i) terminate the Master
Lease and each Lease effective on the date hereof (the “Termination Date”)
subject to the terms and conditions of this Agreement, and (ii) convey the
Equipment to Lessee.

 

NOW, THEREFORE, in
consideration of the above recitals that by this reference are incorporated
herein, the mutual covenants and conditions contained herein and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Lessor and Lessee agree as follows:

 

1.                                       Termination.  The Master Lease and the Leases shall
automatically terminate, subject to the agreements, representations, warranties
and indemnities contained in this Agreement, effective on the Termination Date,
without further notice or action.

 

2.                                       Release of
Liens.  The parties acknowledge that
all security interests previously filed against the Equipment have been released.  If any of the security interests against the
Equipment are not released or are reinstated in the future without the consent
of Lessee, Lessor agrees to cause such security interests to be released and
hereby grants to Lessee the authority to terminate any financing statement
filed against the Equipment in favor of Lessor.

 

3.                                       Release of
Lessor.  Effective as of the
Termination Date, but subject to the agreements, representations, warranties
and indemnities contained in this Agreement, which agreements, representations,
warranties and indemnities shall survive the termination of the Master Lease
and the Leases, Lessee forever releases and discharges Lessor from any and all
claims, demands or causes of action whatsoever against Lessor or its successors
and assigns arising out of or in connection with the Equipment, the Master
Lease or the Leases, and forever releases and discharges Lessor from any
obligations to be observed or performed by Lessor under the Master Lease and
the Leases.  Notwithstanding such
release, Lessor shall indemnify Lessee against, and hold Lessee, its officers,
agents, employees, directors and shareholders harmless from, any and all
claims, actions, suits, 

 

1

 

 

proceedings, costs, demands,
damages and liabilities of whatever nature, and all costs and expenses,
including Lessee’s reasonable attorneys’ fees and expenses (collectively “Claims”),
relating to or in any way arising out of its breach of this agreement or any
claims against the Equipment made by any party, whether now existing or
hereafter arising out of events or omissions occurring on or before the
Termination Date, other than Claims caused by the acts or omissions of Lessee;
provided, however, that such indemnification obligation shall not apply to
Claims arising out of or resulting from the operation of the Equipment.

 

4.                                       Release of
Lessee.  Effective as of the
Termination Date, and subject to the agreements, representations, warranties
and indemnities contained in this Agreement, which agreements, representations,
warranties and indemnities shall survive the termination of the Master Lease
and the Leases, Lessor forever releases and discharges Lessee from any and all
claims, demands or causes of action whatsoever against Lessee or its successors
and assigns arising out of or in connection with the Equipment, the Master
Lease or the Leases and forever releases and discharges Lessee from any
obligations to be observed or performed by Lessee under the Master Lease and
the Leases.

 

5.                                       Conveyance.  Lessor hereby sells, transfers and assigns to
Lessee, all right, title and interest in and to the Equipment.

 

6.                                       Representations
and Warranties.  Lessor
represents and warrants that (a) Lessor is the owner of the Equipment; (b) Lessor
has the right to enter into and perform under this Agreement and to sell and
convey the Equipment; (c) Lessor has not done or suffered anything to
encumber the Equipment; and (d) the Equipment is free from all claims of
parties.  In addition, Lessor agrees to
warrant and defend the sale, transfer and assignment of the Equipment to Lessee
against any and all persons or entities who claim title to or an interest in
the Equipment.  The Equipment is being
conveyed on an “as is, where is” basis.

 

7.                                       Further Assurances.  If Lessee requests, Lessor shall sign,
deliver and cause to be filed or recorded as Lessee shall direct any further
instruments, statements, certificates and other documents as Lessee reasonably
may consider necessary or desirable in order to convey the Equipment free of
all liens and claims.  Lessor further
agrees to pay to Lessee, upon demand, all reasonable costs and expenses
incurred by Lessee in connection with the preparation, execution, recording, filing
and refiling of any such documents, including reasonable attorneys’ fees.

 

8.                                       Authority.  Each signatory of this Agreement represents
hereby that he or she has the authority to execute and deliver the same on
behalf of the party hereto for which such signatory is acting. This Agreement
shall be binding upon and inure to the benefit of Lessor and Lessee and their
respective successors, assigns and related entities.

 

9.                                       Miscellaneous.  The parties are also subject to the following
miscellaneous provisions: (a) this Agreement is governed by and shall be
construed in accordance with the laws of the state of Minnesota; (b) captions
used in this Agreement are for convenience only and are not a part of the
agreement; (c) time is of the essence; (d) if any provision of this 

 

2

 

Agreement is invalid or
unenforceable to any extent, the remainder of this Agreement shall continue in
effect and be enforceable to the fullest extent permitted by law; (e) this
Agreement contains the entire agreement of the Parties hereto with respect to
the Master Lease, the Leases and the Equipment; (f) this Agreement may be
modified only by a writing executed and delivered by both Parties; and (g) nothing
contained in this Agreement shall be deemed or construed to create a partnership
or joint venture of or between Lessor and Lessee.

 

10.                                 Counterparts.  This Agreement may be executed in any number
of counterparts, all of which together shall constitute one and the same
instrument, and any party or signatory hereto may execute this Agreement by
signing any such counterpart.  Delivery
of a facsimile or digital copy (pdf) of an executed copy of this Agreement
shall be effective to bind the executing party. 
Each party so executing this Agreement shall promptly deliver an
original executed counterpart to the other signatories.

 

11.                                 WITH
RESPECT TO ANY ACTION OR PROCEEDING ARISING IN CONNECTION WITH THIS AGREEMENT,
EACH PARTY HERETO (I) WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY SUCH
ACTION, (II) CONSENTS TO ANY SUCH ACTION BEING VENUED IN ANY FEDERAL COURT
OR MINNESOTA STATE COURT SITTING IN MINNEAPOLIS OR ST. PAUL, MINNESOTA AND
WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT.

 

3

 

IN WITNESS WHEREOF, Lessor
and Lessee have executed this Agreement on the day and year first above
written.

 

 

	
   

  	
  LESSOR:

  
	
   

  	
   

  
	
   

  	
  DHW LEASING, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald A. Dunham, Jr.

  
	
   

  	
  Name:

  	
  Donald A. Dunham, Jr.

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF HENNEPIN

  	
  )

  

 

 

On this 5th day of October 2009, before me the
undersigned, a Notary Public in and for said state, personally appeared Donald
A. Dunham, Jr., personally known to me, or proved to me on the basis of
satisfactory evidence, to be the person who executed the within instrument as
the Managing Member of DHW Leasing, L.L.C., a South Dakota limited liability
company, and executed the within instrument on behalf of such company.

 

	
   

  	
  /s/
  Karen R. Nies

  
	
   

  	
  Notary Public

  

 

4

 

	
   

  	
  LESSEE:

  
	
   

  	
   

  
	
   

  	
  GRANITE CITY FOOD & BREWERY, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Wagenheim

  
	
   

  	
  Name:

  	
  Steven J. Wagenheim

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF HENNEPIN

  	
  )

  

 

 

On this 5th day of October 2009, before me the
undersigned, a Notary Public in and for said state, personally appeared Steven
J. Wagenheim, personally known to me, or proved to me on the basis of
satisfactory evidence, to be the person who executed the within instrument as
the President and Chief Executive Officer of Granite City Food &
Brewery, Ltd., a Minnesota corporation, and executed the within instrument on
behalf of such corporation.

 

	
   

  	
  /s/
  Karen R. Nies

  
	
   

  	
  Notary Public

  

 

5

 

EXHIBIT A

 

List
of Leases

 

	
   

  	
  Description of Schedule (Location)

  
	
   

  	
   

  
	
  1.

  	
  Interim Schedule A (Lease No. 2008-GW06) (Zona Rosa)

  
	
   

  	
   

  
	
  2.

  	
  Final Schedule A (Lease No. 2008-GW01) (Roseville)

  
	
   

  	
   

  
	
  3.

  	
  Schedule A (Lease No. 2008-DB01) (South Bend)

  
	
   

  	
   

  
	
  4.

  	
  Schedule A (Lease No. 2009-GW10) (Sioux Falls)

  
	
   

  	
   

  
	
  5.

  	
  Schedule A (Lease No. 2008-CT04) (Maumee)

  
	
   

  	
   

  
	
  6. 

  	
  Schedule A (Lease No. 2008-GW07) (Wichita) 

  
	
   

  	
   

  
	
  7.

  	
  Interim Schedule A (Lease No. 2007-GW03) (Wichita West)

  
	
   

  	
   

  
	
  8.

  	
  Schedule A (Lease No. 2007-CT02) (Rockford)

  
	
   

  	
   

  
	
  9.

  	
  CORRECTED Schedule A (Lease 2007-CT01) (Creve Couer)

  
	
   

  	
   

  
	
  10.

  	
  Schedule A (Lease No. 2008-GW9) (Maple Grove and Eagan)

  
	
   

  	
   

  
	
  11.

  	
  Schedule A (Lease No. 2007-CT03) (Ft. Wayne)

  
	
   

  	
   

  
	
  12.

  	
  Interim Schedule A (Lease
  No. 2008-GW05) (Legends)

  
	
   

  	
   

  
	
  13. 

  	
  Schedule A (Lease No. 2008-GW06) (Lincoln) 

  
	
   

  	
   

  
	
  14.

  	
  Schedule A (Lease No. 2008-DB02) (Madison)

  
	
   

  	
   

  
	
  15.

  	
  Final Schedule A (Lease No. 2008-GW02) (Omaha)

  
	
   

  	
   

  
	
  16.

  	
  Final Schedule A (Lease No. 2009-GW04) (Carmel)Exhibit 10.1

 

FORBEARANCE AGREEMENT

 

THIS
FORBEARANCE AGREEMENT (this “Agreement”) is
entered into as of October 1, 2009, between Vitesse Semiconductor
Corporation, a Delaware corporation (the “Issuer”) and
the beneficial owners of the 1.50% Convertible Subordinated Debentures due 2024
(the “Notes”) signatories hereto
(the “Forbearing Holders”).  Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to such terms in the
Indenture governing the Notes, dated as of September 22, 2004, between the
Issuer and U.S. Bank National Association (the “Trustee”)
(as amended and supplemented, or otherwise modified, the “Indenture”).

 

RECITALS

 

WHEREAS,
pursuant to the Indenture, the Issuer has issued Notes in principal amount of
$96,700,000 and the Forbearing Holders hold Notes in the principal amount
listed below each Forbearing Holder’s name on the signature pages hereto
(the “Forbearing Notes”).

 

WHEREAS,
the Forbearing Holders have exercised, or have indicated that they intend to
exercise, their rights pursuant to Section 11.1 of the Indenture to
require the Issuer to repurchase the Forbearing Notes on October 1, 2009
(the “Put Repurchase Date”).

 

WHEREAS,
a Default has occurred and is continuing under Section 4.1(d) of the
Indenture as a result of the Issuer’s failure to mail a Repurchase Event Notice
pursuant to Section 11.3 of the Indenture and a Repurchase Event Purchase
Notice pursuant to Section 11.4 of the Indenture or to file a Schedule TO
pursuant to Section 11.7 of the Indenture (the “Existing
Defaults”).

 

WHEREAS,
the Forbearing Holders assert (and the Issuer disputes) that there will be an
Event of Default under Section 4.1(c) of the Indenture if the Issuer
fails to repurchase the Forbearing Notes from the Forbearing Holders on the Put
Repurchase Date at a purchase price equal to 113.76% of the principal amount of
the Forbearing Notes (the “Put Repurchase
Default” and together with the Existing Defaults, the “Specified Defaults”).

 

WHEREAS,
the Issuer has requested that the Forbearing Holders agree to forbear, and the
Forbearing Holders have agreed to forbear, from exercising their rights and
remedies with respect to the Specified Defaults for the period, and on the
terms and conditions, specified herein.

 

AGREEMENT

 

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

 

1                        Acknowledgement
and Reaffirmation.  The Issuer
hereby acknowledges and agrees, with respect to the Forbearing Holders only,
that:

 

1

 

(a)                                  On the Put
Repurchase Date, the Issuer will be indebted and liable to the Forbearing
Holders pursuant to Section 11.1(a) of the Indenture in an amount
equal to 113.76% of the principal amount of the Forbearing Notes, together with
any accrued and unpaid interest and any Additional Amounts (the “Repurchase Price”); for the avoidance of doubt, until such
time as the Forbearing Holders receive the Repurchase Price, the Forbearing
Holders will continue to be the beneficial owners of the Forbearing Notes with
all rights and remedies under the Indenture, and shall have the right to direct
the Trustee as required pursuant to Section 7 herein  so long as any such Forbearing Holder has
not sold or otherwise transferred its beneficial ownership of their respective
Forbearing Notes;

 

(b)                                 the obligations
of the Issuer to the Forbearing Holders under the Indenture and hereunder
constitute valid and subsisting obligations of the Issuer to the Forbearing
Holders that are not subject to any credits, offsets, defenses, claims,
counterclaims or adjustments of any kind; and

 

(c)                                  the Specified
Defaults have not previously been waived by the Forbearing Holders.

 

2                  Forbearance.  Subject to the terms and conditions set forth
herein, from the Effective Date through the earlier of (a) the date on
which the Issuer fails to comply with the covenants contained in Section 6
of this Agreement, (b) the date of the commencement by the Issuer of a
voluntary bankruptcy, insolvency, reorganization or other similar proceeding or
the commencement of any similar non-voluntary case or proceeding with respect
to the Issuer, and (c) 12:00 noon (EST) on October 9, 2009 (the “Forbearance Period”), the Forbearing Holders hereby agree to
forbear from exercising any and all rights or remedies available under the
Indenture or applicable law as a result of the Specified Defaults, but only to
the extent that such rights and remedies arise solely as a result of the
occurrence and continuation of the Specified Defaults; provided, however,
that in each case, the Forbearing Holders shall be free to exercise any or all
rights and remedies arising on account of any Specified Default at the end of
the Forbearance Period; provided  further,
that except as expressly set forth herein, this Agreement shall not operate as
a waiver, amendment or modification of the Indenture.

 

3                  No Waiver of
Rights or Remedies.  The
Forbearing Holders and the Issuer agree that, other than as expressly set forth
herein, nothing in this Agreement, or the performance by the Forbearing Holders
of their obligations hereunder, constitutes or shall be deemed to constitute a
waiver of any of the rights or remedies available to the Forbearing Holders
under the Indenture or any applicable law, all of which are hereby
reserved.  In addition, the Issuer
expressly acknowledges and agrees that nothing herein shall be deemed to
preclude or prohibit any Forbearing Holder from taking any action (including
but not limited to delivering a Repurchase Event Purchase Notice on or before
the Put Repurchase Date) necessary to exercise its Repurchase Rights pursuant
to the Indenture.

 

4                  Representations
and Warranties of the Issuer.  The Issuer hereby represents and warrants to
the Forbearing Holders that:

 

2

 

(a)                                                  No Default or
Event of Default exists (or shall exist), to the knowledge of the Issuer, as of
the date hereof (other than the Specified Defaults); and

 

(b)                                                 The execution,
delivery and performance by the Issuer of this Agreement has been duly
authorized by all necessary corporate or other organizational action, and do
not and will not: (i) contravene the terms of any of such person’s
organizational documents; (ii) conflict with or result in any breach or
contravention of, or result in or require the creation of any Lien under, or
require any payment to be made under (A) any contractual obligation to
which such person is a party or affecting such person or the properties of such
person or any of its subsidiaries or (B) any order, injunction, writ or
decree of any governmental authority or any arbitral award to which such person
or its property is subject; or (iii) violate any applicable law.  No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
governmental authority or any other person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against the Issuer of this Agreement.

 

5                  Representation
and Warranty of the Forbearing Holders.  Each Forbearing Holder represents and
warrants to the Issuer that no Default or Event of Default exists (or shall
exist), to the knowledge of such Forbearing Holder, as of the date hereof
(other than the Specified Defaults).

 

6                  Covenants.

 

(a) The
Issuer shall pay, on October 1, 2009, the interest payment then due under
the Indenture in an aggregate amount not to exceed $725,250 (the “Ordinary Course Interest Payment”).

 

(b) The
Issuer shall not repay, in part or in full, any Notes that are not Forbearing
Notes (other than the Ordinary Course Interest Payment).

 

(c) The
Issuer shall not incur, create, issue, assume or suffer to exist any
indebtedness for borrowed money other than indebtedness existing on the
Effective Date.

 

(d) The
Issuer shall not incur, create, assume or suffer to exist any lien on any
assets or properties of the Issuer other than (i) liens existing on the
Effective Date and (ii) customary liens incurred in the ordinary course of
business.

 

7                  Actions by Trustee.  The Forbearing Holders will use commercially
reasonable efforts to direct the Trustee to refrain from taking any action
during the Forbearance Period to enforce any remedy under the Indenture with
respect to any Specified Default.

 

8                  Conditions.  The agreement of the Forbearing Holders and
the Issuer hereunder shall become effective as of the date when the following
conditions shall have been satisfied or (with respect to (clauses (a) and (b) waived
by the Forbearing Holders in their sole discretion (the “Effective
Date”):

 

(a) the
Forbearing Holders shall have received counterparts of this Agreement duly
executed by the Issuer and each Forbearing Holder;

 

3

 

(b) the
Issuer shall deliver funds by wire transfer to Gibson, Dunn & Crutcher
LLP (“Gibson Dunn”) in the amount of $175,000
(in addition to any amounts delivered to Gibson Dunn prior to September 28,
2009); and

 

(c) the
Issuer shall have entered into a forbearance agreement, in form and substance
reasonably satisfactory to the Issuer and the Forbearing Holders, with Whitebox
VSC, Ltd. with respect to the indebtedness under that certain Loan Agreement
dated August 23, 2007.

 

9                  Release.  In partial consideration of the Forbearing
Holders’ willingness to enter into this Agreement, the Issuer hereby releases
the Forbearing Holders and the Trustee and their officers, affiliates,
employees, representatives, agents, financial advisors, counsel and directors
from any and all actions, causes of action, claims, demands, damages and
liabilities of whatever kind or nature, in law or in equity, now known or
unknown, suspected or unsuspected to the extent that any of the foregoing
arises from any action or failure to act in connection with the Indenture on or
prior to the date hereof.

 

10            Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.

 

11            Effectiveness.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by Issuer and Forbearing Holders of written or telephonic notification of such
execution and authorization of delivery thereof.

 

12            APPLICABLE LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

13            Entirety.  This Agreement and the Indenture embody the
entire agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof.  This Agreement, together with the Indenture
represent the final agreement between the parties and may not be contradicted
by evidence of prior, contemporaneous or subsequent oral agreements of the
parties.  There are no oral agreements
between the parties.  In the event there
is a conflict between this Agreement and the Indenture, this Agreement shall
control.

 

14            Severability.  In case any provision in or obligation
hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

15            Successors and
Assigns; Transfers.  This
Agreement shall be binding upon and inure to the benefit of each of the parties
and their respective successors and assigns. 
The Forbearing Holders may transfer all or any of their Forbearing Notes
at any time during the Forbearance Period provided that such transferee shall
agree in writing with the Company, as a condition to such transfer, to be bound
by all of the provisions of this Agreement (any such transferee taking 

 

4

 

Forbearing
Notes pursuant to the foregoing shall be considered Forbearing Holders as if
they had been original signatories to this Agreement.

 

5

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

 

	
   

  	
  VITESSE
  SEMICONDUCTOR CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

6

 

	
   

  	
  [HOLDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  Amount
  of Forbearing Notes:

  

 

7

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