Document:

EXHIBIT 10.2

INTERIM
FUNDING AGREEMENT

THIS INTERIM FUNDING AGREEMENT dated as of August 16, 2006, between CARLTON
FINANCIAL CORPORATION, 1907 E. Wayzata Boulevard, Suite 180,
Wayzata, MN  55391 (“CARLTON”), as Lessor
and GRANITE CITY FOOD & BREWERY LTD. (“Lessee”),
as Lessee, located at 5402 Parkdale Drive, Minneapolis, MN  55416.

W I T N E S
S E T H:

WHEREAS, Lessee
or CARLTON has entered or will enter into certain Purchase Agreements with
various equipment vendors (“Vendor”) relating to certain equipment more
particularly described in Exhibit A annexed hereto (the “Equipment”, each
distinct unit of which being herein called an “Item of Equipment”);

WHEREAS, CARLTON
and Lessee wish to provide for the lease of the Equipment by CARLTON to Lessee
pursuant to the terms of a Master Lease Agreement together with Schedules and
attachments thereto, substantially in the form of Exhibit B attached hereto
(the “Master Lease Agreement”);

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, the parties hereto
agree as follows:

1.    Lease of Equipment.  CARLTON agrees to lease to Lessee and Lessee
agrees to lease and hire from CARLTON the Items of Equipment as they are
delivered or paid for, in the manner and for the amount specified in paragraph
3 herein until such time as the Master Lease Agreement becomes effective as
provided in paragraph 6 herein.

2.    Acceptance of Equipment.  As Items of Equipment are delivered to Lessee
(or if any payments are required to be made prior to delivery of Items of Equipment,
at such time of payment), Lessee shall present for payment the invoices from
the manufacturer or vendor accompanied by a letter of instruction satisfactory
in form to CARLTON.  Upon receipt of such
invoice and the accompanying letter of instruction referring to and specifying
the invoice, CARLTON shall purchase the Item of Equipment from Vendor for the
invoice price (the “Acquisition Cost”) and Lessee shall immediately lease such
Equipment from CARLTON as provided herein. 
No freight costs or costs of installation shall be borne by CARLTON
unless otherwise agreed to in writing. 
The lease of such Items of Equipment shall commence with payment by
CARLTON to Vendor whether or not such payment occurs prior to actual delivery
of such Items of Equipment to Lessee (the “Delivery Date”).

3.    Interim Rental.  Rental for Items of Equipment, as they are
acquired by CARLTON pursuant to paragraph 2 above, shall be computed by Lessor
and paid by Lessee monthly in arrears at a daily lease factor as specified in
the Proposal Letter based on a 30-day month.

 

4.    Payment of Interim Rental.  All such Interim Rental Payments shall be
paid to CARLTON at its office at 1907 E. Wayzata Boulevard, Suite 180, Wayzata,
MN  55391 on the last day of each month
following the month in which a letter of instruction has been tendered by
Lessee and a payment made by CARLTON pursuant to paragraph 2 herein.  CARLTON will notify Lessee by invoice each
month for the amount due as provided for in paragraph 3.

5.    Entry into Equipment
Lease Agreement.  Upon the happening
of the earlier of the following events:

(a)          Expenditure by CARLTON
of its capital commitment of $3,000,000.00 for
purchase of Items of Equipment; or

(b)         Delivery of the final Item of Equipment listed in
Exhibit A attached hereto, then Lessee shall immediately enter into the
Equipment Lease Agreement appended hereto as Exhibit B and shall be obligated
to make the payments in compliance with the terms and conditions specified
therein and the exhibits and schedules attached thereto.

6.    Net Rent.  The Interim Rental provided in paragraph 3
herein and the Lease Rental Payments specified in paragraph 7 of the Master
Lease Agreement shall be absolutely net to CARLTON so that this Interim Funding
Agreement and the Master Lease Agreement shall yield to CARLTON the full amount
of the installments of Interim Rental and Lease Rental Payments throughout the
term of this Interim Funding Agreement and the Master Lease Agreement without
deduction.

7.    Failure to Perform Master
Lease Agreement.  If none of the
events set forth in paragraph 5 hereof has transpired by December 31, 2006 (or,
if the date so specified shall be extended to a subsequent date agreed upon in
writing by CARLTON and Lessee, then such subsequent date) or if Lessee shall
have failed to have entered into the Equipment Lease Agreement by such date,
Lessee shall immediately purchase from CARLTON all CARLTON’s right, title and
interest in and to the Equipment for a purchase price equal to the aggregate of
the amounts paid by CARLTON pursuant to paragraph 2 hereunder plus such other
amounts which may be due CARLTON from Lessee pursuant to any other provision
hereof.  Upon receipt of such amounts in
immediately available funds, CARLTON shall execute an assignment of its
interest in the Equipment (without any warranties or representations of any
nature whatsoever) and shall have no further right to or interest in the
Equipment.

Accepted this 16th day of August, 2006.

	
  

  	
  By:  GRANITE
  CITY FOOD & BREWERY LTD. (Lessee)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  /s/ Steven J.
  Wagenheim

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  President

  	
   

  	
   

  
							

 

 

GRANITE CITY FOOD & BREWERY
LTD.

5402 Parkdale Drive

Minneapolis, MN  55416

Date:                        

Peter Friedenfeld

Carlton Financial Corporation

1907 E. Wayzata Boulevard, Suite 180

Wayzata, MN  55391

Dear Peter:  

Per the Interim Funding Agreement
dated August 16, 2006 and the Master Lease Agreement dated August 16, 2006
please pay the following invoice(s).

	
  Vendor

  	
   

  	
  Invoice #

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  

 

Sincerely,

	
  Granite City Food & Brewery Ltd.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

 

EXHIBIT A

SCHEDULE A OF EQUIPMENT

Restaurant Furniture,
Fixtures & Equipment 

Locations:  St. Louis Park, MN

 

EXHIBIT B

Master Lease Agreement together with Schedules and
attachments thereto

(COPY ATTACHED)

 

 

	
  DATE:

  	
  August 16, 2006

  
	
  LEASE NO.

  	
   

  
			

 

	
  FROM:

  	
  Granite City Food & Brewery Ltd.

  
	
   

  	
  5402 Parkdale
  Drive

  
	
   

  	
  Minneapolis, MN
  55416

  

 

	
  TO:

  	
   

  
	
   

  	
  Insurance
  Carrier:

  	
   

  	
   

  
	
   

  	
  Insurance Agent:

  	
   

  	
   

  
	
   

  	
  Phone:

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
  Policy Number:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  

 

To Whom It May Concern:

We have entered into a lease
agreement with Carlton Financial Corporation for the equipment shown
below.  This equipment is located at:

St. Louis Park, MN

This is a net lease and we are
responsible for the insurance cost. 
Please see that we have immediate coverage and notify Carlton Financial
Corporation at once.  Kindly send a copy
of the insurance policy to Carlton Financial Corporation.  The Lease requires Property Damage Coverage
and Loss Payee Clause.  Liability
Coverage and Additional Insured Clause with endorsements in their favor attached.  Please list Carlton
Financial Corporation and/or its assigns as Certificate Holder.

YOUR IMMEDIATE ATTENTION IS
REQUESTED.

	
  EQUIPMENT TO BE INSURED:

  	
  COST:

  	
   

  
	
   

  	
   

  
	
  Restaurant
  Furniture, Fixtures and Equipment

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
  Mail to:

  	
  Carlton Financial Corporation and/or its assigns

  
	
   

  	
  1907 E. Wayzata
  Boulevard, Suite 180

  
	
   

  	
  Wayzata, MN
  55391EXHIBIT
10.3

GUARANTY

To induce Carlton Financial Corporation (“Carlton”) from time to time
to either lease equipment to Granite City Food &
Brewery Ltd. (the “Debtor”), sell equipment to Debtor or to make a
loan to Debtor pursuant to leases, installment sale contracts, or promissory
notes, as the case may be (all such leases, installment sale contracts, and
promissory notes, whether now existing or hereafter arising, being referred to
herein as “Contract(s),” the undersigned hereby agrees as follows:

1.             The undersigned hereby absolutely and
unconditionally guarantees to Carlton the full and prompt payment and
performance when due of each and every obligation of the Debtor under the
Contracts.

2.             The undersigned hereby waives (i) notice of
the acceptance hereof by Carlton and of the creation and existence of the
Contracts and (ii) any and all defenses otherwise available to a guarantor or
accommodation party.

3.             This Guaranty is complete, absolute,
unconditional, and continuing, and the liability of the undersigned hereunder
shall not be affected or impaired in any way by any of the following, each of
which Carlton may agree to without the consent of the undersigned: (a) any
extension or renewal of any Contract whether or not for longer than the
original period; (b) any change in the terms of payment or other terms of any
Contract or any collateral therefor, or any exchange, release of, or failure to
obtain any collateral therefor, (c) any waiver or forbearance granted to Debtor
or any other person liable with respect to any Contract or any release of,
compromise with, or failure to assert rights against Debtor or any such other
person; and (d) the application or failure to apply in any particular manner
any payments or credits on any Contract or any other obligation Debtor may owe
to Carlton.

4.             Carlton shall not be required first to resort
for payment of any Contract to Debtor or to any other person or to any
collateral before exercising and enforcing its rights under this Guaranty.  The undersigned agrees not to obtain
reimbursement or payment from Debtor or any other person obligated with respect
to any Contract or from any collateral for any Contract until the obligations
under such Contract have been fully satisfied. 
The undersigned shall not without prior written consent from Carlton,
assign any interest hereunder or related hereto including, without limitation,
any claim arising by subrogation.

5.             The undersigned shall be and remain liable
for any deficiency following foreclosure of any leasehold, mortgage or security
interest securing any Contract whether or not the liability of Debtor under
such Contract is discharged by such foreclosure.

6.             The undersigned agrees to pay all costs,
expenses and reasonable attorney’s fees paid or incurred by Carlton in endeavoring
to enforce any Contract and this Guaranty.

7.             Carlton may at any time sell, assign or
otherwise transfer all or any part of its interest in this Guaranty.

 

8.             This agreement shall be governed by the laws
of the State of Minnesota and shall be interpreted, construed and enforced in
accordance with the laws of the State of Minnesota.  In the event of legal proceedings, the
undersigned consents to personal jurisdiction and venue in any State or Federal
Court located within the State of Minnesota. 
THE PARTIES WAIVE ANY RIGHTS THEY MAY HAVE TO A JURY TRIAL.

9.             This Guaranty constitutes the entire
agreement between the parties and no provision shall be deemed waived, amended
or modified by either party unless such waiver, amendment or modification is in
writing and signed by both parties.

10.           This Guaranty shall be binding upon the
estate, heirs, successors and assigns of the undersigned, and shall inure to
the benefit of the successors and assigns of Carlton.

Dated:    August 16, 2006

 

	
  Steven Wagenheim

  	
   

  	
   

  
	
    (Individual)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Steven J.
  Wagenheim

  	
   

  	
   

  
	
   

  	
   

  
	
  Home Address: 

  	
  321 Westwood
  Drive N.

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Golden Valley,
  MN 55427

  	
   

  	
   

  
	
   

  	
   

  
	
  Home Telephone:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Social Security
  Number:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]