Document:

Exhibit 10.109

January 24, 2007

Sam Goldfinger

The Smith & Wollensky Restaurant
Group, Inc.

1114 First Avenue

New York, NY 10021

Re:  S&W New Orleans, LLC

Dear Mr. Goldfinger:

As
a condition of the approval of the $2,000,000.00 loan made to S&W New Orleans,
LLC on May 26, 2004 to Hibernia
National Bank (now known as Capital One, N.A.), a Business Loan Agreement was
executed of even date containing
numerous Events of Default. One such event is as follows:

DEBT SERVICE COVERAGE
COVENANT.  Borrower covenants and agrees
with Lender that as long as this Note is in effect, Borrower shall maintain, at
all times, a Debt Service Coverage of no less
than 1.10X, where “Debt Service Coverage” is the result of the following
formula: Cash Flow divided by Debt
Service, where Cash Flow means the net income (loss) of Borrower for a period,
plus any interest expense, plus any
tax expense, plus any depreciation or amortization expense, recorded in
that same period. Debt Service means, for a period, the sum of all scheduled principal
and interest payments on debt (including
any capitalized leases) during the period, including that portion of any long
term debt that is due within the period. The determination of Net Income, the
expense items, and debt payments shall be based on the Borrower’s
financial statements, prepared in accordance
with Generally Accepted Accounting Principles (GAAP), submitted to Lender with
the degree of diligence and
timeliness as required herein or in any loan or other agreement relating to or governing
repayment hereunder. Failure to comply with this provision shall constitute a
default hereunder, and shall entitle Lender
to exercise all remedies provided herein.

In
conjunction with the continued closure of the Smith & Wollensky restaurant
located in New Orleans on Poydras
Street, as a direct result of Hurricane Katrina and the aftermath thereof,
which hit the New Orleans area on or
around August 30, 2005, the above Debt Service Coverage Covenant is hereby
waived for the above referenced loan to S&W New Orleans, LLC for
Fiscal Yearend 2007.

The above waived covenant
applies only to the period specified and does not apply to any other listed covenants in the Business Loan Agreement or any
other financial periods of time.

In addition, it is understood
that The Smith & Wollensky Restaurant Group, Inc. will continue to seek a
buyer  for the location, at which time
the loan would be retired in full.

Should you have any questions,
please do not hesitate to call me at the number listed below.

Sincerely,

	
  /s/ Michael L. Galloway

  	
   

  
	
  Michael L.
  Galloway

  	
   

  
	
  Senior Vice
  President

  	
   

  
	
  DFW-Metro
  Business Banking

  

 

CAPITAL ONE, N.A.               4245 N CENTRAL EXPWY, SUITE 245          DALLAS, TEXAS 75205                  972-364-6327Exhibit
10.116

THIRD MODIFICATION
AND RENEWAL OF LEASE

AGREEMENT (hereafter “this Agreement”) made as of the     
day of December, 2006 (the “Effective Date”) between BEEKMAN TENANTS
CORPORATION, a New York corporation having an address at 575 Park Avenue, New
York, New York 10021 (hereinafter referred to as “Landlord”) and ATLANTIC &
PACIFIC GRILL ASSOCIATES, L.L.C., a New York limited liability company having
an address c/o The Smith & Wollensky Restaurant Group, Inc., 880 Third
Avenue, New York, New York 10022 (hereinafter referred to as “Tenant”).

W I T N E S S E T H:

WHEREAS, Landlord and White & Witkowsky, Inc. (“W&W”)
entered into a lease dated November 1, 1991 (the “Original Lease”) of a portion
of the ground floor and basement space in the building (the “Building”) located
at 575 Park Avenue, New York, New York as more particularly described in the
Lease (the “Demised Premises”); and

WHEREAS, W&W assigned its interest in the Lease to
Atlantic & Pacific Grill Associates, L.P. (“A&P”) pursuant to an Assignment
and Assumption of Lease dated September 9, 1992;

WHEREAS, A&P, on January 12, 1996 in accordance
with the provisions of Section 1006 of the New York Limited Liability Company
Law, converted from a limited partnership to Tenant;

WHEREAS, (i) as of December 3, 2001, Landlord and
Tenant entered into a Modification of Lease (the “First Modification”) which
modified the Original Lease as more particularly described therein and (ii) as
of September 30, 2006, Landlord and Tenant entered into an Extension of Lease
(the “Extension”) which extended the term of the Original Lease to January 8,
2007 (the Original Lease, as modified by the First Modification and extended by
the Extension, hereinafter the “Lease”); and

WHEREAS, in connection with Tenant’s right to exercise
its renewal option as set forth in Article 87 of the Lease, Landlord and Tenant
desire to extend the term of the Lease and modify and amend certain terms and
provisions of the Lease in the manner hereinafter set forth; and

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

1.                                       Effective
as of the Effective Date, the Lease is amended as follows:

(a)                                  The term of the Lease
is hereby extended for ten (10) years and seven (7) days commencing on January
8, 2007 through and including January 15, 2017 (the “Extended Term”), upon all
of the same terms, covenants and conditions set forth in the Lease, as hereby
amended, except that: (i) the Fixed Rent shall be as follows:

 

	
  Period (Dates Inclusive)

  	
   

  	
  Fixed Annual Rent

  	
   

  	
  Monthly Installment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  January 9, 2007 –
  December 31, 2007

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  $

  	
  41,666.66

  	
   

  
	
  January 1, 2008 –
  December 31, 2008

  	
   

  	
  $

  	
  510,000.00

  	
   

  	
  $

  	
  42,500.00

  	
   

  
	
  January 1, 2009 –
  December 31, 2009

  	
   

  	
  $

  	
  520,200.00

  	
   

  	
  $

  	
  43,350.00

  	
   

  
	
  January 1, 2010 –
  December 31, 2010

  	
   

  	
  $

  	
  530,604.00

  	
   

  	
  $

  	
  44,217.00

  	
   

  
	
  January 1, 2011 –
  December 31, 2011

  	
   

  	
  $

  	
  541,216.08

  	
   

  	
  $

  	
  45,101.34

  	
   

  
	
  January 1, 2012 –
  December 31, 2012

  	
   

  	
  $

  	
  552,040.40

  	
   

  	
  $

  	
  46,003.37

  	
   

  
	
  January 1, 2013 –
  December 31, 2013

  	
   

  	
  $

  	
  563,081.21

  	
   

  	
  $

  	
  46,923.43

  	
   

  
	
  January 1, 2014 –
  December 31, 2014

  	
   

  	
  $

  	
  574,342.83

  	
   

  	
  $

  	
  47,861.90

  	
   

  
	
  January 1, 2015 –
  December 31, 2015

  	
   

  	
  $

  	
  585,829.69

  	
   

  	
  $

  	
  48,819.14

  	
   

  
	
  January 1, 2016 –
  December 31, 2016

  	
   

  	
  $

  	
  597,546.28

  	
   

  	
  $

  	
  49,795.52

  	
   

  
	
  January 1, 2017 –
  January 15, 2017

  	
   

  	
  $

  	
  597,546.28

  	
   

  	
  $

  	
  49,795.52

  	
   

  

 

(ii) the Expiration Date shall be deemed to be January
15, 2017 (the “Expiration Date”), unless sooner terminated in accordance with
the provisions of the Lease; (iii) the first sentence of Article 63 (Real
Estate Taxes) of the Lease stating: “the amount of such real estate taxes for
the fiscal year commencing July 1, 1991 and ending June 30, 1992”, shall be
deleted and replaced with the following language:  “the amount of such real estate taxes for the
calendar year 2007”; and (iv) Article 87 (Renewal Option) of the Lease shall be
deemed deleted in its entirety and be of no further force or effect so that the
Tenant shall have no further option to renew or extend the Lease or the term
thereof.

(b)                                 At any time after July
15, 2009, Landlord and Tenant shall each have the right to terminate this Lease
prior to the Expiration Date by giving not less than six (6) months’ and not
more than nine (9) months’ prior written notice to the other party of the
exercise of its right to so terminate, stating the date (the “Accelerated
Termination Date”) upon which the Extended Term of this Lease shall then
terminate, provided however, in no event shall the Accelerated Termination Date
be a date that occurs between November 15th and January 15th.  Provided such notice is delivered in
compliance with the provisions of this paragraph 1(b), this Lease shall
terminate as of 11:59 p.m. on the Accelerated Termination Date as if it were
the Expiration Date as set forth herein.

(c)                                  Article 13 of the
Lease shall be revised to permit Landlord access to the Demised Premises,
during non-holiday business days before 11:00 a.m., for the purpose of showing
the same to prospective tenants throughout the Extended Term of the Lease, upon
reasonable notice to Tenant, provided that such access does not otherwise
unreasonably interfere with Tenant’s use or conduct of business in the Demised
Premises.

2.                                       As
a material consideration and inducement to Landlord to enter into this
Agreement, Tenant has agreed to spend at least Three Hundred Thousand
($300,000) Dollars to refurbish, repair or otherwise make improvements to the
Demised Premises by September 30, 2007, in compliance with the applicable terms
and provisions of the Lease, including, without limitation, Articles 3 and 50
(the “New Alterations”).  Tenant shall
produce paid bills and other proofs of payment reasonably satisfactory to
Landlord to establish such expenditures by October 15, 2007.  To the extent such expenditures are not made
by September 30, 2007, the portion of

 2
 

said funds not
spent or contractually committed to items on which delivery is delayed, shall
be payable to Landlord as additional rent hereunder in twelve (12) equal
monthly installments commencing on December 1, 2007 and thereafter on the first
day of the next eleven (11) months.  Such
payments shall be deemed additional rent. 
Tenant shall, within thirty (30) days after written demand from
Landlord, reimburse Landlord for all reasonable fees, costs and expenses
(including architects’ and engineers’ fees) if any, reasonably incurred by
Landlord in connection with the New Alterations, provided that Tenant shall not
be obligated to reimburse Landlord for any such amounts which are in excess of
$2,000 in the aggregate.  Tenant hereby
agrees, at its sole cost and expense, upon the Expiration Date (or earlier
termination of the Lease), to remove all of the kitchen equipment and kitchen
fixtures installed by Tenant as part of the New Alterations.

3.                                       Landlord
hereby acknowledges delivery of (a) an original executed ratification and
confirmation of the Guaranty by The Smith & Wollensky Restaurant Group,
Inc. (the “Ratification”) in the form of Exhibit A annexed hereto and made a
part hereof, and (b) an original amendment to the Letter of Credit No.
3330001230 (the “Letter of Credit”) issued by North Fork Bank (the “Bank”).  The Letter of Credit shall (i) have an
expiration date no earlier than the first anniversary of the date of issuance
thereof and shall provide that it shall be automatically renewed from year to
year until February 28, 2017, (ii) be maintained by Tenant in effect at all
times during the Extended Term by the Bank or another major banking institution
reasonably approved by Landlord, provided that such bank has its principal
place of business or its duly licensed branch in the City and County of New
York at which the letter of credit may be presented for payment (an “Approved
Bank”) and (iii) otherwise be in compliance with the applicable terms of the
Lease.  Promptly upon Landlord’s receipt
of a notice of non-renewal from the Bank, if any, Landlord shall provide
written notice thereof to Tenant and Tenant shall have the right to procure a
substitute letter of credit from another Approved Bank which complies with the
terms of the Lease within twenty (20) days prior to the expiration date of the
Letter of Credit.  Landlord shall have
the right to draw down upon the Letter of Credit upon Tenant’s failure to
deliver such substitute letter of credit as required herein.  The Letter of Credit shall be returned to
Tenant upon the date which is twenty (20) days following the earlier to occur
of (i) the Expiration Date, (ii) Accelerated Termination Date, or (iii) earlier
termination of this Lease, provided that Tenant has complied with the terms and
conditions of this Lease.

4.                                       Simultaneously
with the execution of this Agreement, Landlord and Tenant have entered into a
contract of sale (the “Townhouse Contract”) whereby Tenant has agreed to convey
to Landlord, and Landlord has agreed to purchase the proprietary lease for and
188 shares of Beekman Tenants Corporation appurtenant to the space known as the
Park Avenue Café Townhouse (the “Townhouse Space”), for a purchase price of
$850,000.  Landlord and Tenant hereby
agree that simultaneously with the closing as contemplated in the Townhouse
Contract, Landlord and Tenant shall enter into an amendment of the Lease (the “Townhouse
Lease Amendment”) in the form attached as Exhibit B.

5.                                       Notwithstanding
anything contained in Section 48 to the contrary, Sections 48(b) and 48(e) of
the Lease shall not apply to a transfer or assignment of the Lease to (a) any
person, firm or entity in connection with the acquisition by said person, firm
or entity or an Affiliate (as defined herein) thereof, of all or substantially
all of the assets or stock of The

 3
 

Smith & Wollensky
Restaurant Group, Inc. in a single transaction or a series of related
transactions, provided that Alan N. Stillman or Michael Stillman continue to
manage the day-to-day operations at the Demised Premises after such acquisition
and throughout the Extended Term of the Lease or (b) any of the following
individuals or to any Affiliate of or a firm or entity controlled (as defined
herein) by either Alan N. Stillman or Michael Stillman.  As used in this paragraph 5, the term “Affiliate”
means a proprietorship, corporation, partnership, unincorporated association or
other person or entity “controlling”, “controlled” by or under common “control”
with such Tenant entity.  The words “controlling”,
“controlled” and “control” shall have the meanings given them under the
Securities Exchange Act of 1934, as amended.

6.                                       Any
notice, demand or communication which, under the terms of this Lease or under
any statute or municipal regulation must or may be given or made by the parties
hereto, shall be in writing and given or made by (i) hand delivery, (ii)
mailing the same by registered or certified mail, return receipt requested, or
(iii) by nationally recognized overnight courier service (e.g., Federal
Express) addressed to the party for whom intended at its address as set forth
in this Agreement.  A copy of all notices
to Landlord shall be sent in like manner to Stroock & Stroock & Lavan
LLP, 180 Maiden Lane, New York, New York 10038, Attention: Richard Siegler,
Esq., and a copy of all notices to Tenant shall be sent in like manner to Pryor
Cashman Sherman & Flynn LLP, 410 Park Avenue, 10th Floor, New York, New
York 10022, Attention: Thomas J. Malmud, Esq. 
Either party, however, may designate such new or other address to which
such notices, demands or communications thereafter shall be given, made or
mailed by notice given in the manner prescribed herein.  Any such notice, demand or communication
shall be deemed given or served, as the case may be, (i) when delivered by
hand, (ii) three (3) business days after the date of the mailing, or (iii) one
(1) business day after the delivery to such overnight courier service for next
business day delivery.

7.                                       Landlord
and Tenant represent and warrant to the other that it has dealt with no broker
in connection with this Agreement other than Douglas Elliman, LLC and Landlord
and Tenant hereby agree to indemnify and hold the other party harmless of and
from any and all loss, costs, damage or expense (including, without limitation,
attorneys’ fees and disbursements) incurred by such party by reason of any
claim of or liability to any broker, finder or like agent (other than Douglas
Elliman, LLC), who shall claim to have dealt with such party in connection with
this Agreement.  Landlord shall pay any
commission due Douglas Elliman, LLC in connection with this Agreement pursuant
to the terms of a separate agreement between Landlord and Douglas Elliman LLC.

8.                                       As
expressly modified or amended by this Agreement, all of the terms, covenants
and conditions of the Lease are hereby ratified and confirmed.  All terms not otherwise defined herein shall
have the meanings respectively ascribed to them in the Lease.

[SIGNATURE PAGE TO
FOLLOW]

 4
 

IN WITNESS WHEREOF, Landlord and Tenant have duly
executed this Agreement as of the date first above written.

	
  

  	
  BEEKMAN TENANTS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL CRAMES

  	
   

  
	
   

  	
   

  	
  Michael Crames, President

  
	
   

  	
   

  	
   

  
	
   

  	
  ATLANTIC & PACIFIC GRILL ASSOCIATES, L.L.C.

  
	
   

  	
  By:

  	
  The Smith & Wollensky Restaurant Group, Inc.,

  
	
   

  	
   

  	
  its sole member

  
	
   

  	
  By: 

  	
  /s/ EUGENE ZURIFF

  	
   

  
					

f

 5

EXHIBIT A

Ratification
and Confirmation of Guaranty

RATIFICATION AND CONFIRMATION OF GUARANTY dated as of
December      , 2006 between THE SMITH & WOLLENSKY
RESTAURANT GROUP, INC., a Delaware corporate having an address at 1114 First
Avenue, New York, New York 10021 (“Guarantor”) and BEEKMAN TENANTS CORPORATION,
a New York corporation having an office at 575 Park Avenue, New York, New York
10021 (“Landlord”), ratifying and confirming that certain Guaranty dated as of
December 3, 2001 (as the same has been and may from time to time hereafter be
amended, modified and confirmed, the “Guaranty”) by Guarantor in favor of
Landlord (a copy of which is attached).

1.                                      The
Guarantor hereby acknowledges receipt of a copy of the Modification of Lease
(the “Amendment”) dated as of even date herewith with respect to the Lease (as
defined in the Guaranty).

2.                                      The
Guarantor hereby ratifies, confirms and agrees that the Guaranty remains in
full force and effect notwithstanding the Amendment and is extended to
guarantee the obligations of Atlantic & Pacific Grill Associates, L.L.C.
pursuant to the Lease, as amended by the Amendment, with the same force and
effect as though the terms contained in the Amendment had originally been
included in the Lease.

IN WITNESS WHEREOF, the undersigned have executed this
Confirmation of Guaranty as of the date first written above.

	
  GUARANTOR:

  	
  THE SMITH &
  WOLLENSKY

  RESTAURANT GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 6

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