Document:

Exhibit 10.15

    Execution Copy

    

    MEMBERSHIP INTEREST PURCHASE
AGREEMENT

    

    

    This
MEMBERSHIP INTEREST PURCHASE
AGREEMENT, dated November 10, 2008 (this “Agreement”), is made by and
among MDC Acquisition
Inc., a Delaware corporation (“MDC Sub”); CPB Acquisition Inc., a
Delaware Corporation (“Acquisition Co.”); MDC Partners Inc., a Canadian
corporation (“MDC
Partners”); Crispin
& Porter Advertising, Inc. (d/b/a Crispin Porter & Bogusky), a
Florida corporation (“CPB
Inc.” or “Seller”); Charles Porter (“Porter”), Alex Bogusky (“Bogusky”), Jeff Hicks (“Hicks”), and Jeff Steinhour (“Steinhour”; together with
Porter, Bogusky and Hicks collectively referred to as the “Employee Members” and
individually as an “Employee Member”); MDC Sub, together
with the Acquisition Co., Employee Members and CPB Inc., collectively referred
to as the “Members” and
individually a “Member”); and CRISPIN PORTER & BOGUSKY
LLC, a
Delaware limited liability company (the “Company”).  Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the Company’s Amended and Restated Limited Liability Company
Agreement dated as of January 8, 2001 (as subsequently amended, the “LLC Agreement”).

    

    

    W I T N E S S E T H :

    

    WHEREAS, CPB Inc., the
Employee Members, MDC Sub and Acquisition Co. are parties to that certain LLC
Agreement of the Company, which sets forth, among other things, the terms and
conditions relating to transfer and ownership of the Membership Interests upon
exercise of a put or call option;

    

    WHEREAS, pursuant to the LLC
Agreement, Acquisition Co. has the right to exercise the “Third Call” option,
and is hereby exercising such Third Call option early, with respect to the
purchase of an additional 17% of Membership Interests from CPB Inc., and has
assigned such rights to exercise the Third Call to MDC Sub;

    

    WHEREAS, CPB Inc. (the “Seller”) accepts MDC Sub’s
early exercise of the Third Call option and now desires to sell, and MDC Sub
desires to purchase, an aggregate amount equal to 17% of the issued and
outstanding Membership Interests in the Company (the “Purchased Interests”), from
the Seller;

    

    WHEREAS, immediately following
the execution and delivery of this Agreement, the parties hereto are entering
into a further amendment to the LLC Agreement to reflect the transactions
contemplated by this Agreement, including the transfer of the Purchased
Interests to MDC Sub such that following the Closing of the transactions
contemplated by this Agreement, the Membership Interests in the Company will be
owned as follows:  MDC Sub – 45%; Acquisition Co. – 49%
; CPB Inc. - 6%.;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

            
NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties do hereby
agree as follows:

    

               1.        Purchase
and Sale; Closing.

    

                          (a)           Sellers
hereby sell, assign, transfer and deliver to MDC Sub, and MDC Sub hereby
purchases from Seller, the Purchased Interests.   The
Purchased Interests carry with it the right to share in the Profits and Losses
of the Company (as such terms are defined in LLC Agreement) and the other
economic attributes thereof (including distributions of Cash Flow in accordance
with the LLC Agreement) accruing from and after November 10, 2008 in respect of
the Purchased Interests transferred hereby, and the Seller’s rights in its
Capital Account with respect to the Purchased Interests as of November 10, 2008,
subject to Seller receiving distributions in the ordinary course that it would
have received in respect of the Purchased Interests for the period of time
ending immediately prior to the Closing Date.  For purposes of this
Agreement, the calculation of “Profits and Losses” shall be done in accordance
with the LLC Agreement, and shall be based upon profits, losses and
distributions in accordance with the Company’s current financial and operational
policies as of the Closing Date and determined in a manner substantially
consistent with recent practices (e.g.,  no extraordinary
dividends).

    

                          (b)           The
closing of the transaction contemplated by this Agreement (the “Closing”) is taking place
simultaneously with the execution and delivery of this Agreement (the “Closing Date”), at the offices
of MDC Partners Inc., 950 Third Avenue, New York, New York 10022 or by the
exchange of documents and instruments by mail, courier, telecopy and wire
transfer to the extent mutually acceptable to the parties hereto.

    

                          (c)           Effective
as of November 10, 2008, MDC Sub, Acquisition Co. and CPB Inc. shall cause the
Company to close its books for income tax purposes, and there will be no
allocation of Profits or Losses to Sellers with respect to the Purchased
Interests following the Closing Date.  All distributions of Profits
payable as of November 10, 2008 in respect of the Membership Interests
(including the Purchased Interests) shall be distributed and paid by the Company
in the ordinary course following the Closing.  In accordance with the
LLC Agreement, the parties have agreed to elect to adopt the closing of the
books method under Section 706 of the Code for allocating CPB Inc.’s varying
interests in the Company during the taxable year that includes the Closing
Date.

    

               2.        Purchase
Price. 

    

                          (a)           In
full consideration for the purchase by MDC Sub of the Purchased Interests, and
in full satisfaction of any and all amounts due and owing by Acquisition Co.
with respect to the Period Three Formula Amount (as such term is defined in the
LLC Agreement), MDC Sub agrees to pay to Sellers an amount equal to the “Put/Call Purchase Price”,
calculated and determined as follows:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              At
      the Closing, an amount equal to $6,850,000 as the “Closing
      Payment”.  The Closing Payment shall be paid as
      follows:  (A) an amount equal to $6,430,000 shall be paid in
      cash or immediately available funds, and (B) an amount equal to $420,000
      (the “Closing Stock
      Payment”) shall be paid in the form of 105,000 MDC Shares in
      accordance with Secion 2(a)(iv) of this Agreement.   “MDC Shares” shall mean
      MDC Partners’ Class A subordinate voting
shares.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              On
      or prior to April 1, 2010, a payment in an amount equal to the “Period Three Formula
      Amount”, calculated in accordance with Section 10.4.3(c) of the LLC
      Agreement, minus $2.1 million (the “Final Purchase
      Payment”).   In accordance with Section 10.5(e) of
      the LLC Agreement, 80% of the Final Purchase Payment paid in respect of
      the Period Three Formula Amount shall be paid in cash by wire transfer,
      and 20% of the Final Purchase Payment shall be made in MDC
      Shares.  In the event that the Period Three Formula Amount is
      equal to less than zero, there shall be no repayment obligation by the
      Seller to MDC Sub.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      Final Purchase Payment shall be subject to further upward (not downward)
      adjustment as follows:  Within 5 Business Days following the
      final determination of the financial statements of the Company for the
      first calendar quarter of 2010, MDC Sub shall pay to Seller, in cash by
      wire transfer, an amount calculated as
follows:

            

    

    

    {2.85 x
average monthly “Profits” (as defined in the LLC Agreement) of the Company
during the Additional Period}- $5.1 million. 

    

    For
purposes of this Agreement, the “Additional Period” shall be
the period of time from the Closing Date to March 31, 2010.

    

    
      	
               
      

            	
              (iv)

            	
              The
      certificate representing the shares of MDC Shares to be issued as part of
      the Closing Stock Payment shall be dated the date hereof and shall be
      delivered to the Seller not later than ten (10) business days after the
      Closing Date.  There shall be no contractual holding period for
      the shares of MDC Shares issued as part of the Closing Stock
      Payment.

            

    

    

                          (b)           For
purposes of this Agreement, all of the terms, conditions and procedures set
forth in Sections 10.4.2 and 10.5 of the LLC Agreement regarding “Accounting
Determination” and “Payment of the Purchase Price” shall apply and govern the
determination of Profits and the Period Three Formula Amount, and the payment of
the Final Purchase Payment.  In the event that the Period Three
Formula Amount has not been finally determined by March 31, 2010, the Final
Purchase Payment to be made on April 1, 2010 shall be equal to 75% of a good
faith estimate of such amount estimated by MDC Partners in its reasonable
judgment (the “Undisputed
Payment”). Upon final determination of the Period Three Formula Amount,
the balance of the Final Purchase Payment shall be promptly paid to Seller. In
the event that MDC Sub fails to pay the Undisputed Payment to Seller in respect
of the Final Purchase Payment on or prior to April 1, 2010, and if Seller has
otherwise complied in all material respects with its obligations under the LLC
Agreement, then Seller shall be entitled to liquidated damages from MDC Sub in
an amount equal to the Final Purchase Payment plus 17% of the Profits of the
Company during the period commencing April 1, 2010 and continuing until the date
on which the Undisputed Payment is paid to Seller.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

                         
(c)           The parties
hereto acknowledge and agree that the Put/Call Purchase Price to be paid by MDC
Sub pursuant to the terms and conditions set forth in this Agreement, together
with any amounts paid in respect of the Capital Account Amount, will satisfy
in full all
payment obligations of MDC Sub, Acquisition Co., the Company and/or MDC
Partners Inc. (“MDC
Partners”) in connection with the Purchased Interests, the Third Call,
and the Third Put,  including without limitation satisfaction in full
of any amount due in respect of the Capital Account Amount relating to the
Purchased Interests, all as set forth in the LLC Agreement.  In addition,
in the event that there exists any conflict regarding the language
contained in this Agreement and the language contained in the LLC Agreement, the
language contained in this Agreement shall govern.

    

              
3.        Representations
and Warranties by CPB Inc.  Seller hereby represents and
warrants to MDC Sub as follows:

    

                          (a)           CPB
Inc. is a corporation duly organized, validly existing and in good standing
under the laws of the State of Florida, with full corporate power and authority
to own its property and to carry on its business all as and in the places where
such properties are now owned or operated or such business is now being
conducted.

    

                          (b)           Seller
has the full authority to make, execute, deliver and perform this Agreement and
the transactions contemplated hereby.  The execution and delivery of
this Agreement by CPB Inc. and the consummation by CPB Inc. of the transactions
contemplated hereby have been duly authorized by all required corporate action
on behalf of CPB Inc. and its shareholders.   This Agreement has
been duly and validly executed and delivered by Seller and, assuming due
authorization, execution and delivery by MDC Sub, constitutes a legal, valid and
binding obligation of the Seller, enforceable against Seller in accordance with
its terms.

    

                          (c)           Seller
is the owner of the applicable amount of the Purchased Interests being sold and
transferred pursuant to this Agreement, free and clear of all mortgages, liens,
security interests, encumbrances, claims, charges and restrictions of any kind
or character (“Liens”)
other than the LLC Agreement.  No person or entity has or will have
any claim against the Company, MDC Sub or any of their affiliates related to any
share or future distribution from the Company or to the proceeds from the sale
of the Purchased Interests.

    

                          (d)           Seller agrees that, from and after the date hereof, no
portion or proceeds of the Closing Payment paid in respect of the Put/Call
Purchase Price shall be used to compensate or give any employee of the Company a
bonus, gift, award or similar type of remuneration, other than dividend
distributions that may be paid to shareholders of the
Seller.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

               4.        Representations
and Warranties by MDC Sub.  MDC Sub and MDC Partners, as the
case may be, hereby represent and warrant, jointly and severally, to Sellers as
follows:

    

                          (a)           MDC
Sub is a corporation duly organized, validly existing and in good standing under
the laws of Delaware with full corporate power and authority to own its property
and to carry on its business all as and in the places where such properties are
now owned or operated or such business is now being
conducted.    MDC Sub is an indirect, wholly-owned
subsidiary of MDC Partners.   MDC Partners shall cause sufficient
capital and/or MDC Shares, as the case may be, to be available to MDC Sub to
meet its obligations to pay the Put/Call Purchase Price under Section 2 of this
Agreement.  If MDC Sub fails to meet its payment obligations under
Section 2 hereof, then MDC Partners shall satisfy such payment obligations to
the extent that MDC Sub failed to do so.

    

                          (b)           MDC
Sub has the full corporate power and authority to make, execute, deliver and
perform this Agreement and the transactions contemplated hereby.  The
execution and delivery of this Agreement by MDC Sub and the consummation of the
transactions contemplated hereby have been duly authorized by all required
corporate action on behalf of MDC Sub.   This Agreement has been
duly and validly executed and delivered by MDC Sub and, assuming due
authorization, execution and delivery by CPB Inc., constitutes legal, valid and
binding obligations of MDC Sub, enforceable against each of them in accordance
with its terms.

    

                          (c)           MDC
Partners is a corporation duly organized, validly existing and in good standing
under the laws of Canada, with full corporate power and authority to own its
property and to carry on its business all as and in the places where such
properties are now owned or operated or such business is now being
conducted.

    

                          (d)           MDC
Partners has the full corporate power and authority to make, execute, deliver
and perform this Agreement and the transactions contemplated
hereby.  The execution and delivery of this Agreement by MDC Partners
and the consummation of the transactions contemplated hereby have been duly
authorized by all required corporate action on behalf of MDC
Partners.   This Agreement has been duly and validly executed and
delivered by MDC Partners and, assuming due authorization, execution and
delivery by CPB Inc., constitutes legal, valid and binding obligations of MDC
Partners, enforceable against each of them in accordance with its
terms.

    

                          (e)           Each
share of MDC Shares to be issued pursuant to the terms of this Agreement will be
duly and validly authorized for issuance by MDC Partners, and upon consummation
of the transactions contemplated hereby, will be duly and validly issued, fully
paid and nonassessable, and not issued in violation of the preemptive rights of
any past or present shareholder.   All of the shares of MDC
Shares to be issued pursuant to this Agreement will be (a) issued in
transactions exempted under all applicable Canadian securities laws and in
compliance with the rules and regulations of the Toronto Stock Exchange, and
assuming the accuracy and truthfulness of an applicable Investment
Representation Certificates to be delivered at Closing by the recipients of such
MDC Shares, United States federal and state securities laws and (b)
conditionally approved for listing on The NASDAQ National Market and the Toronto
Stock Exchange, subject to official notice of issuance and/or the filing of
customary documents and payment of listing fees.

               

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

               
5.       Other
Agreements.

    

                          (a)           As
an inducement for MDC Sub to consummate the transactions contemplated by this
Agreement and in consideration of the payment by MDC Sub of the Put/Call
Purchase Price, each of the Employee Members hereby acknowledges and reaffirms
his respective obligations under the provisions of the separate
Non-Solicitation/Non-Servicing Agreement dated January 8, 2001 (each as
thereafter amended on September 22, 2004 and November 1, 2007, the “Non-Solicit Agreements”),
running to the benefit of the Company, Acquisition Co. and MDC
Sub.  It is understood that for purposes of the agreement referenced
in the preceding sentence, each of the Employee Members shall be deemed to be
employed by the Company for any period that he is either a full-time or
part-time employee of the Company.

    

                          (b)           Each
of the parties hereto ratifies and acknowledges all rights and obligations
pursuant to the existing agreements between the parties, including but not
limited to the rights of the Employee Members pursuant to the Non-Solicit
Agreements.

    

    

               6.        Indemnity.

    

                          (a)           CPB
Inc. hereby agrees to indemnify MDC Partners, MDC Sub and Acquisition Co. and
their respective directors and officers (collectively “MDC Group”) against, and to
protect, save and hold harmless each member of the MDC Group from, and to pay on
behalf of or reimburse the respective member of the MDC Group as and when
incurred for, any and all liabilities, obligations, losses, damages, penalties,
demands, claims, actions, suits, judgments, settlements, penalties, interest,
out-of-pocket costs, expenses and disbursements (including reasonable costs of
investigation, and reasonable attorneys’, accountants’ and expert witnesses’
fees) of whatever kind and nature (collectively, “Losses”), that may be imposed
on or incurred by any member of the MDC Group arising out of or in any way
related to (i) any breach of any warranty or representation contained in Section
3 hereof or (ii) any action, demand, proceeding, investigation or claim by any
third party against or affecting any member of the MDC Group which may give rise
to or evidence the existence of or relate to a misrepresentation or breach of
any of the representations and warranties contained in Section 3
hereof.

    

                          (b)           MDC
Sub and MDC Partners hereby agree to indemnify CPB Inc. against, and to protect,
save and hold harmless CPB Inc. from, and to pay on behalf of or reimburse CPB
Inc. as and when incurred for, any and all Losses that may be imposed on or
incurred by CPB Inc. arising out of or in any way related to (i) any breach of
any warranty or representation of MDC Sub or MDC Partners contained in Section 4
hereof or (ii) any action, demand, proceeding, investigation or claim by any
third party against or affecting CPB Inc. which may give rise to or evidence the
existence of or relate to a misrepresentation or breach of any of the
representations and warranties contained in Section 4 hereof.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

               7.        Miscellaneous.

    

                          (a)            Each
of MDC Sub and MDC Partners, on the one hand, and CPB Inc. and the Employee
Members, on the other hand, shall pay its or his own expenses relating to the
transactions contemplated by this Agreement, including, without limitation, the
fees and expenses of their respective counsel and financial
advisors.

    

                          (b)           The
interpretation and construction of this Agreement, and all matters relating
hereto (including, without limitation, the validity or enforcement of this
Agreement), shall be governed by the laws of the State of New York without
regard to any conflicts or choice of laws provisions of the State of New York
that would result in the application of the law of any other
jurisdiction.

    

                          (c)           Subject
to the provisions of the next sentence, no party to this Agreement shall issue
any press release or other public document or make any public statement relating
to this Agreement or the matters contained herein without obtaining the prior
approval of MDC Sub and CPB Inc.  Notwithstanding the foregoing, the
foregoing provision shall not apply to the extent that MDC Partners is required
to make any announcement or public disclosure relating to or arising out of this
Agreement by virtue of the securities laws of the United States or Canada, or
the rules and regulations promulgated thereunder, or the rules of the any stock
exchange on which shares of MDC Partners are listed.

    

                          (d)           Any
notice, request, instruction or other document to be given hereunder by any
party to any other party shall be in writing and shall be deemed to have been
given (i) upon personal delivery, if delivered by hand or courier, (ii) three
days after the date of deposit in the mails, postage prepaid, or (iii) the next
business day if sent by facsimile transmission (if receipt is electronically
confirmed) or by a prepaid overnight courier service, and in each case at the
respective addresses or numbers set forth below or such other address or number
as such party may have fixed by notice:

    

               If
to MDC Sub or MDC Partners, addressed to:

    

    MDC
Partners Inc.

    45
Hazelton Avenue

    Toronto,
Ontario

    Canada
M5R 2E3

    Attention:  Robert
Dickson

    Fax:  (416)
960-9555

    

                          with a copy
to:

    

    MDC
Partners Inc.

    950 Third
Avenue

    New York,
New York 10022

    Attention:  Mitchell
Gendel, General Counsel

    Fax:  (212)
937-4365

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

               If
to CPB Inc., addressed to:

    

    CPB
Inc.

    3390 Mary
Street, Suite 300

    Miami,
Florida  33133

    Attention:
Chief Financial Officer

    Fax:  (305)
854-3419

    

    

    Any party
may change the address to which notices are to be sent by giving notice of such
change of address to the other parties in the manner herein provided for giving
notice.

    

                          (e)           This
Agreement may not be transferred, assigned, pledged or hypothecated by any party
hereto, other than by operation of law. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors and permitted assigns, as the case may
be.

    

                          (f)      
     In the event any provision of this Agreement is
found to be void and unenforceable by a court of competent jurisdiction, the
remaining provisions of this Agreement shall nevertheless be binding upon the
parties with the same effect as though the void or unenforceable part had been
severed and deleted.

    

                          (g)           This
Agreement, including the other documents referred to herein, contains the entire
understanding of the parties hereto with respect to the subject matter contained
herein and therein.

    

                          (h)           This
Agreement may not be amended, supplemented or modified orally, but only by an
agreement in writing signed by the all of the parties hereto.

    

                          (i)         
  The language used in
this Agreement will be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of law or contract interpretation that
provides that in the case of ambiguity or uncertainty a provision should be
construed against the draftsman will be applied against any party
hereto.

    

                          (j)       
    This Agreement may be executed in one or more
counterparts, and each such counterpart shall be deemed an original instrument,
but all such counterparts taken together shall constitute but one
agreement.  Facsimile signatures shall constitute an
original.

    
 

    

    

    *                      *                      *                      *

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Membership Interest Purchase Agreement, on the
day and year first above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	
                                             

                                          	 
      	 
	 
      	
                                            MDC
      ACQUISITION INC.

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                               
      /s/

                                          	 
	 
      	
                                             

                                          	
                                            Name:
      Mitchell
      Gendel

                                          	 
	 
      	
                                             

                                          	
                                            Title:
      Vice President & Secretary

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            CPB
      ACQUISITION INC.

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/    

                                          	 
	 
      	
                                             

                                          	
                                            Name:
      Mitchell Gendel

                                          	 
	 
      	
                                             

                                          	
                                            Title:
      Vice President & Secretary

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            MDC
      PARTNERS INC.

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/    

                                          	 
	 
      	
                                             

                                          	
                                            Name:
      Michael Sabatino

                                          	 
	 
      	
                                             

                                          	
                                            Title: Senior
      Vice President and Chief Accounting Officer

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            CRISPIN
      & PORTER ADVERTISING, INC.

                                          
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/      

                                          	 
	 
      	
                                             

                                          	
                                            Name:
      Charles
      K. Porter

                                          	 
	 
      	
                                             

                                          	
                                            Title:

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            Employee
      Members:

                                          	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/    

                                          	 
	 
      	
                                             

                                          	
                                            Charles
      Porter

                                          	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/   

                                          	 
	 
      	
                                             

                                          	
                                            Alex
      Bogusky

                                          	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/   

                                          	 
	 
      	
                                             

                                          	
                                            Jeff
      Hicks

                                          	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                              
      /s/   

                                          	 
	 
      	
                                             

                                          	
                                            Jeff
      Steinhour

                                          	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

    
      
        
        

      

      
        9Unassociated Document

    

    

    
      	
              CREDIT
      SUISSE SECURITIES (USA) LLC

              Eleven
      Madison Avenue

              New
      York, NY 10010

            

    

    

    

     

    CONFIDENTIAL

     

    February
6, 2009

    Buffets,
Inc.

    1460
Buffet Way

    Eagan,
Minnesota 55121

    Attention:  R.
Michael Andrews

     

    

     

    Buffets,
Inc.

    $120,000,000 Funded Senior
Secured Exit Credit Facility

    Engagement
Letter

     

    Ladies
and Gentlemen:

    

    You have
advised Credit Suisse Securities (USA) LLC (together with its affiliates, “Credit
Suisse”, “we” or
“us”) that
it is exclusively authorized by Buffet’s, Inc. (the “Borrower”
or “you”), a
debtor-in-possession under Chapter 11 of the United States Bankruptcy Code (the
“Bankruptcy
Code”), and certain of its subsidiaries that are debtors-in-possession
under the Bankruptcy Code (collectively, with the Borrower, the “Debtors”)
in jointly administered cases in the United States Bankruptcy Court for the
District of Delaware (the “Bankruptcy
Court”), in connection with certain transactions described herein, to act
as sole lead arranger, sole bookrunner, sole administrative agent and sole
collateral agent for the Facility (as defined below).

     

    You have
informed us that, in connection with the Debtors’ joint plan of reorganization
under Chapter 11 of the Bankruptcy Code, as amended (the “Plan”), it
is proposed that the Borrower obtain a senior secured exit credit facility
providing gross cash proceeds in an aggregate amount of at least $120,000,000
(the “Facility”)
on the terms described in the Summary of Principal Terms and Conditions attached
hereto as Exhibit A (the “Term
Sheet”) or such other or modified terms as are acceptable to the
Debtors.

     

    You have
also informed us that the Debtors intend to amend the proposed Plan to provide
that:

     

    
      	
               
      

            	
              ·

            	
              up
      to $200,000,000 in aggregate principal amount of the Borrower’s existing
      debtor-in-possession credit facility (the “Rollover
      DIP Facility”) be converted into a second lien senior secured term
      loan facility (the “Second Lien
      Term Facility”)1; provided that (x) prior
      to converting the loans of any lender under the Rollover DIP Facility into
      loans under the Second Lien Term Facility, such lender shall commit to
      provide a portion of the Facility in an aggregate principal amount equal
      to at least 60% of their loans under the Rollover DIP Facility and (y)
      lenders under the Rollover DIP Facility that do not commit to provide a
      portion of the Facility shall not receive any portion of the Second Lien
      Term Facility and shall instead receive a form of equity interest in
      Buffets Restaurants Holdings, Inc.;

            

    

     

     __________________________

      
        	
                1

              	
                A to-be-determined
      portion of the Second Lien Term Facility may be assumed by
      Holdings.

              

      

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              ·

            	
              up
      to $47,000,000 in aggregate principal amount of the Borrower’s existing
      synthetic letter of credit facility be converted into a modified or new
      second lien senior secured synthetic letter of credit facility (the “Synthetic
      L/C Facility”); and

            

    

     

    
      	
               
      

            	
              ·

            	
              up
      to $25,000,000 in aggregate principal amount of the Borrower’s existing
      cash collateralized letter of credit facility be converted into a new or
      modified $30,000,000 cash collateralized letter of credit facility (the
      “Cash
      Collateralized L/C
Facility”).

            

    

     

    The
consummation of the Plan, including the entering into and funding of the
Facility and all related transactions contemplated by the Plan and this
engagement letter (including the Term Sheet and the other attachments hereto,
this “Engagement
Letter”), are hereinafter collectively referred to as the “Transactions.”

     

    

     

    1.           Titles and
Roles.

     

    You
hereby appoint Credit Suisse to act, and Credit Suisse hereby agrees to act, as
sole administrative agent, sole collateral agent, sole bookrunner and sole lead
arranger for the Facility upon the terms and subject to the conditions set forth
or referred to in this Engagement Letter.  Credit Suisse, in such
capacities, will perform the duties and exercise the authority customarily
performed and exercised by it in such roles.  In its capacity as sole
lead arranger and sole bookrunner, Credit Suisse agrees to use commercially
reasonable efforts to arrange a syndicate of banks, financial institutions and
other institutional lenders (the “Lenders”)
that will participate in the Facility.  You agree that no other
agents, co-agents or arrangers will be appointed, no other titles will be
awarded and no compensation (other than that expressly contemplated by this
Engagement Letter) will be paid in connection with the Facility unless you and
we shall so agree.  It is understood and agreed that this Engagement
Letter shall not constitute a commitment to provide, arrange or syndicate the
Facility or give rise to any obligation or commitment to provide any
financing.

     

    2.           Syndication.

     

    We intend
to commence syndication efforts promptly upon the execution of this Engagement
Letter, and you agree to actively assist us in completing a satisfactory
syndication.  Such assistance shall include (a) your using
commercially reasonable efforts to ensure that any syndication efforts benefit
materially from your existing lending and investment banking relationships, (b)
direct contact between your senior management, representatives and advisors and
the proposed Lenders, (c) assistance by you in the preparation of a Confidential
Information Memorandum for the Facility and other marketing materials to be used
in connection with the syndication, (d) your providing a detailed business plan
or projections of you and your subsidiaries for the years 2009 through 2013 and
for the quarters beginning with the first quarter of 2009 and
through the fourth quarter of 2009, in form
and substance satisfactory to Credit Suisse, and (e) the hosting, with Credit
Suisse, of one or more meetings of prospective Lenders.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    You
agree, at the request of Credit Suisse, to assist in the preparation of a
version of the Confidential Information Memorandum and other marketing materials
and presentations to be used in connection with the syndication of the Facility,
consisting exclusively of information and documentation that is either (i) of a
type that would be publicly available if you were a public reporting company or
(ii) not material with respect to you or your subsidiaries or any of your or
their respective securities for purposes of foreign, United States Federal and
state securities laws (all such information and documentation being “Public Lender
Information”).  Any information and documentation that is not
Public Lender Information is referred to herein as “Private Lender
Information”.  You further agree that each document to be
disseminated by Credit Suisse to any Lender in connection with the Facility
will, upon the request of Credit Suisse, be identified by you as either (i)
containing Private Lender Information or (ii) containing solely Public Lender
Information.  You acknowledge that the following documents contain
solely Public Lender Information (unless you notify us promptly that any such
document contains Private Lender Information): (a) drafts and final definitive
documentation with respect to the Facility; (b) administrative materials
prepared by Credit Suisse for prospective Lenders (such as a lender meeting
invitation, bank allocation, if any, and funding and closing memoranda); and (c)
notification of changes in the terms of the Facility.

     

    Credit
Suisse will manage all aspects of any syndication, including decisions as to the
selection of institutions to be approached and when they will be
approached, when their commitments will be accepted, which institutions will
participate, the allocation of the commitments among the Lenders, any naming
rights and the amount and distribution of fees among the Lenders.  To
assist Credit Suisse in its syndication efforts, you agree promptly to prepare
and provide to Credit Suisse all information with respect to you and your
subsidiaries, the Transactions and the other transactions contemplated hereby,
including all financial information and projections (the “Projections”),
as we may reasonably request.

     

    3.           Information.

     

    You
hereby represent and covenant that (a) all information other than the
Projections (the “Information”)
that has been or will be made available to Credit Suisse by or on behalf of you
or any of your representatives is or will be, when furnished, complete and
correct in all material respects and does not or will not, when furnished,
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained therein not materially
misleading in light of the circumstances under which such statements are made
and (b) the Projections that have been or will be made available to Credit
Suisse by or on behalf of you or any of your representatives have been or will
be prepared in good faith based upon accounting principles consistent with your
historical audited financial statements and upon assumptions that are reasonable
at the time made and at the time the related Projections are made available to
Credit Suisse.  You agree that if at any time prior to the closing
date of the Facility (the “Closing
Date”) any of the representations in the preceding sentence would be
incorrect if the Information and Projections were being furnished, and such
representations were being made, at such time, then you will promptly supplement
the Information and the Projections so that such representations will be correct
under those circumstances.  In arranging and syndicating the Facility,
we will be entitled to use and rely primarily on the Information and the
Projections without responsibility for independent verification
thereof.

     

    4.           Clear
Market.

     

    To ensure
an orderly and effective syndication of the Facility, you agree that, from the
date hereof until the earlier of the termination of the syndication (as
determined by Credit Suisse in its sole discretion) or the termination of this
Engagement Letter, you will not and you will not permit any of your affiliates
to, syndicate or issue, attempt to syndicate or issue, announce or authorize the
announcement of the syndication or issuance of, or engage in discussions
concerning the syndication or issuance of, any debt securities or commercial
bank or other credit facilities, without the prior written consent of Credit
Suisse.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    5.           Fees.

     

    As
consideration for Credit Suisse’s structuring of the Facility, you shall pay to
Credit Suisse, for its own account, a non-refundable fee (the “Structuring
Fee”) equal to $1,000,000 within two (2) business days after entry of an
order by the Bankruptcy Court approving the payment of the Structuring
Fee.

     

    In
addition, as consideration for Credit Suisse’s agreement to perform the services
described herein, you agree to pay to Credit Suisse, upon the funding of the
Facility, for its own account, an arrangement fee (the “Arrangement
Fee”) equal to the sum of:

     

    
      	
               
      

            	
               (w)

            	
              3.0%
      of the gross cash proceeds of the Facility arising from loans made by
      lenders (“New
      Lenders”) that, as of the date hereof, are neither lenders under
      the Borrower’s existing “new money” debtor-in-possession credit facility
      (“New
      Money DIP
      Lenders”), lenders under the Borrower’s existing pre-petition
      credit facility (“Pre-Petition
      Lenders”) nor lenders under the Rollover DIP Facility (“Rollover
      DIP Lenders”); provided that to the
      extent the gross cash proceeds of the Facility arising from loans made by
      New Lenders is less than $60,000,000 and Credit Suisse received
      commitments from New Lenders to make loans under the Facility that would
      have yielded a greater amount of gross cash proceeds, the amount under
      this clause (w) shall be increased by an amount equal to 3.0% of the
      additional gross cash proceeds of the Facility that would have resulted
      from accepting such commitments; provided, further, that
      if such amount is increased pursuant to the first proviso of this clause
      (w), the aggregate amount under this clause (w) shall not exceed
      $1,800,000;

            

    

     

    
      	
               
      

            	
              (x)

            	
              3.0%
      of the gross cash proceeds of the Facility arising from loans made by
      Pre-Petition Lenders that are not also New Money DIP
    Lenders;

            

    

     

    
      	
               
      

            	
              (y)

            	
              3.0%
      of the gross cash proceeds of the Facility arising from loans made by
      Rollover DIP Lenders that are not also New Money DIP Lenders;
      and

            

    

     

    
      	
               
      

            	
              (z)

            	
              an
      amount equal to the sum of (i) 1.0% of the initial $73,000,000 in gross
      cash proceeds of the Facility arising from loans made by New Money DIP
      Lenders and (ii) 3.0% of the gross cash proceeds of the Facility arising
      from loans made by New Money DIP Lenders in excess of
      $73,000,000;

            

    

     

    provided, that the aggregate
amount of the Arrangement Fee shall not exceed 3.0% of the gross cash proceeds
of the Facility and the aggregate amount of the Structuring Fee paid to Credit
Suisse shall be credited against the Arrangement Fee.

     

    You
understand that it may be necessary for you to pay participation fees (the
“Participation
Fees”), which may take the form of original issue discount, to the
Lenders (including, if Credit Suisse becomes a Lender, Credit Suisse) in
connection with the syndication of the Facility.  The aggregate amount
of the Participation Fees, and the allocation thereof among the Lenders
(including, if Credit Suisse becomes a Lender, Credit Suisse), shall, subject to
approval by the Debtors, be as determined by Credit Suisse to be advisable to
ensure the successful syndication of the Facility, and the entire amount of the
Participation Fees shall be payable by you to the Lenders in addition to the
Arrangement Fee and the New Lender Arrangement Fee which are payable to Credit
Suisse.  If Credit Suisse becomes a Lender, in no event shall the
Participation Fees payable to any other Lender (as a percentage of the
commitments of such Lender) exceed the Participation Fees payable to Credit
Suisse (as a percentage of the commitments, if any, of Credit
Suisse).

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    In its
capacity as administrative agent in respect of the Facility, Credit Suisse will
be paid an annual administration fee (the “Administration
Fee”) in the amount of $250,000 for each year of the Facility (less the
aggregate amount of administrative agency fees paid to Credit Suisse for such
year with respect to the Second Lien Term Facility and the Synthetic L/C
Facility).  The first payment of such annual Administration Fee will
be due on the Closing Date, and each payment of such annual Administration Fee
thereafter will be due in advance on each anniversary of the Closing Date prior
to the maturity of the Facility.  Such annual Administration Fee will
be in addition to reimbursement of Credit Suisse’s out-of-pocket
expenses.

     

    You agree
that, once paid, the fees or any part thereof payable hereunder will not be
refundable under any circumstances.  All fees payable hereunder will
be paid in immediately available funds and shall not be subject to reduction by
way of setoff or counterclaim.  In connection with the syndication of
the Facility, Credit Suisse may, in its discretion, allocate to the Lenders
portions of any fees payable to it in connection therewith.

     

    6.           Alternate
Transaction.

     

    You also
agree that, if you or any of your affiliates determine to proceed within one
year from
the date hereof with any transaction similar in nature and scope to the
Transactions (any such transaction, an “Alternate
Transaction”), you or such affiliate will appoint Credit Suisse as sole
administrative agent, sole lead arranger and sole bookrunner (on terms
acceptable to Credit Suisse and you) for any bank financing relating to such
Alternate Transaction (“Alternate
Transaction Financing”) unless Credit Suisse does not agree to take such
Alternate Transaction Financing to market (on terms acceptable to Credit Suisse
and you).  If, in connection with the consummation of any Alternate
Transaction, a financial institution other than Credit Suisse arranges or
provides debt financing (notwithstanding a willingness on the part of Credit
Suisse to take to market the Facility or such Alternate Transaction Financing),
you agree to pay to Credit Suisse an amount equal to the Arrangement Fee that
would have otherwise been payable to Credit Suisse immediately upon the
consummation of such Alternate Transaction.  Notwithstanding the
foregoing, no Arrangement Fee shall be payable to Credit Suisse in connection
with an Alternate Transaction if this agreement has been terminated by Credit
Suisse pursuant to subsection (x) of paragraph 17 or terminated by the Borrower
pursuant to paragraph 7 hereof prior to the time such Arrangement Fee would have
otherwise become payable pursuant to the immediately preceding
sentence.

     

    7.           Termination by
Debtors.

     

    The
Borrower shall have the right to terminate this agreement (i) if the “Maturity
Date” (as defined under the New Money DIP Facility referred to in the Term Sheet
(the “DIP
Maturity Date”)) is not extended beyond the current date of April 30,
2009, and Credit Suisse has not obtained commitments for the Facility on or
prior to such date, at any time after April 30, 2009, (ii) if the DIP Maturity
Date is extended beyond April 30, 2009 and Credit Suisse has not obtained
commitments for the Facility by May 31, 2009, at any time after May 31, 2009,
(iii) if the DIP Maturity Date is extended beyond April 30, 2009, at any time
after the DIP Maturity Date (as such date may be further extended from time to
time) if the Facility has not closed by such date (except as a result of a
condition precedent to closing not being satisfied) or (iv) at any time for
cause, including, without limitation, Credit Suisse’s failure to timely
undertake commercially reasonable efforts to arrange the Facility.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    8.           No Obligation to
Close.

     

    The
Borrower shall have no obligation to close on any Facility arranged by Credit
Suisse unless the final terms and documentation are in a form acceptable to the
Borrower in its sole discretion.

     

    9.           Indemnification;
Expenses.

     

    You agree
(a) to indemnify and hold harmless Credit Suisse and its officers, directors,
employees, agents, advisors, controlling persons, members and successors and
assigns (each, an “Indemnified
Person”) from and against any and all losses, claims, damages,
liabilities and expenses, joint or several, to which any such Indemnified Person
may become subject arising out of or in connection with this Engagement Letter,
the Transactions, the Facility or any related transaction or any claim,
litigation, investigation or proceeding relating to any of the foregoing,
regardless of whether any such Indemnified Person is a party thereto (and
regardless of whether such matter is initiated by a third party or by the
Borrower or any of its affiliates), and to reimburse each such Indemnified
Person upon demand for any reasonable legal or other expenses incurred in
connection with investigating or defending any of the foregoing, provided that the foregoing
indemnity will not, as to any Indemnified Person, apply to losses, claims,
damages, liabilities or related expenses to the extent they are found in a
final, non-appealable judgment of a court of competent jurisdiction to have
resulted primarily from the willful misconduct or gross negligence of such
Indemnified Person, and (b) to reimburse Credit Suisse from time to time, upon
presentation of a summary statement, for all reasonable out-of-pocket expenses
(including but not limited to expenses of Credit Suisse’s due diligence
investigation, consultants’ and other professionals’ fees, syndication expenses,
travel expenses and fees, disbursements and other charges of counsel), in each
case, incurred in connection with the Facility and the preparation, negotiation
and enforcement of this Engagement Letter, the definitive documentation for the
Facility and any ancillary documents and security arrangements in connection
therewith.  Notwithstanding any other provision of this Engagement
Letter, no
Indemnified Person shall be liable for any indirect, special, punitive or
consequential damages in connection with its activities related to the
Facility.

     

    10.           Sharing Information; Absence
of Fiduciary Relationship; Affiliate Activities.

     

    You
acknowledge that Credit Suisse may be providing debt financing, equity capital
or other services (including financial advisory services) to other companies in
respect of which you may have conflicting interests regarding the transactions
described herein or otherwise.  We will not furnish confidential
information obtained from you by virtue of the transactions contemplated by this
Engagement Letter or our other relationships with you to other
companies.  You also acknowledge that we do not have any obligation to
use in connection with the transactions contemplated by this Engagement Letter,
or to furnish to you, confidential information obtained by us from other
companies.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    You
further acknowledge and agree that (a) no fiduciary, advisory or agency
relationship between you and Credit Suisse is intended to be or has been created
in respect of any of the transactions contemplated by this Engagement Letter,
irrespective of whether Credit Suisse has advised or is advising you on other
matters, (b) Credit Suisse, on the one hand, and you, on the other hand, have an
arms-length business relationship that does not directly or indirectly give rise
to, nor do you rely on, any fiduciary duty on the part of Credit Suisse, (c) you
are capable of evaluating and understanding, and you understand and accept, the
terms, risks and conditions of the transactions contemplated by this Engagement
Letter, (d) you have been advised that Credit Suisse is engaged in a broad range
of transactions that may involve interests that differ from your interests and
that Credit Suisse has no obligation to disclose such interests and transactions
to you by virtue of any fiduciary, advisory or agency relationship, and (e) you
waive, to the fullest extent permitted by law, any claims you may have against
Credit Suisse for breach of fiduciary duty or alleged breach of fiduciary duty
and agree that Credit Suisse shall have no liability (whether direct or
indirect) to you in respect of such a fiduciary duty claim or to any person
asserting a fiduciary duty claim on behalf of or in right of you, including your
stockholders, employees or creditors.

     

    You
further acknowledge that Credit Suisse is a full service securities firm engaged
in securities trading and brokerage activities as well as providing investment
banking and other financial services.  In the ordinary course of
business, Credit Suisse may provide investment banking and other financial
services to, and/or acquire, hold or sell, for its own accounts and the accounts
of customers, equity, debt and other securities and financial instruments
(including bank loans and other obligations) of, you and other companies with
which you may have commercial or other relationships.  With respect to
any securities and/or financial instruments so held by Credit Suisse or any of
its customers, all rights in respect of such securities and financial
instruments, including any voting rights, will be exercised by the holder of the
rights, in its sole discretion.

     

    11.           Assignments, Amendments,
Governing Law, Etc.

     

    This
Engagement Letter shall not be assignable by you without the prior written
consent of Credit Suisse (and any attempted assignment without such consent
shall be null and void), is intended to be solely for the benefit of the parties
hereto (and Indemnified Persons), and is not intended to confer any benefits
upon, or create any rights in favor of, any person other than the parties hereto
(and Indemnified Persons).  Any and all services to be provided by
Credit Suisse hereunder may be performed and any and all rights of Credit Suisse
hereunder may be exercised by or through any of its affiliates or branches. This
Engagement Letter may not be amended or any provision hereof waived or modified
except by an instrument in writing signed by Credit Suisse and
you.  This Engagement Letter may be executed in any number of
counterparts, each of which shall be an original and all of which, when taken
together, shall constitute one agreement.  Delivery of an executed
counterpart of a signature page of this Engagement Letter by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof.  Paragraph headings used herein are for convenience of
reference only, are not part of this Engagement Letter and are not to affect the
construction of, or to be taken into consideration in interpreting, this
Engagement Letter.  You acknowledge that information and documents
relating to the Facility may be transmitted through SyndTrak, Intralinks, the
internet, e-mail or similar electronic transmission systems and that Credit
Suisse shall not be liable for any damages arising from the unauthorized use by
others of information or documents transmitted in such manner. This Engagement
Letter supersedes all prior understandings, whether written or oral, between us
with respect to the Facility.  THIS ENGAGEMENT LETTER SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    12.           Jurisdiction.

     

    Each of
the parties hereto hereby irrevocably and unconditionally (a) submits, for
itself and its property, to the exclusive jurisdiction of any New York State
court or Federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Engagement Letter or the transactions
contemplated hereby, or for recognition or enforcement of any judgment, and
agrees that all claims in respect of any such action or proceeding may be heard
and determined only in such New York State court or, to the extent permitted by
law, in such Federal court or, prior to confirmation of the Plan, the Bankruptcy
Court, (b) waives, to the fullest extent it may legally and effectively do so,
any objection which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Engagement
Letter or the transactions contemplated hereby in any New York State court
or in any such Federal court, (c) waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court, and (d) agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.  Service of any process, summons, notice or document by
registered mail addressed to you at the address above shall be effective service
of process against you for any suit, action or proceeding brought in any such
court.

     

    13.           Waiver of Jury
Trial.

     

    EACH
OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY
RELATED TO OR ARISING OUT OF THIS ENGAGEMENT LETTER OR THE PERFORMANCE OF
SERVICES HEREUNDER.

     

    14.           Confidentiality.

     

    The Term
Sheet is delivered to you on the understanding that neither the Term
Sheet nor any of its terms or substance, nor the activities of Credit
Suisse pursuant hereto, shall be disclosed, directly or indirectly, to any other
person except (a) to your officers, directors, employees, attorneys, accountants
and advisors on a confidential and need-to-know basis, (b) as may be required in
connection with (x) obtaining the order of the Bankruptcy Court authorizing the
Debtors to enter into this Engagement Letter, pay the fees and expenses set
forth or referred to herein and to undertake and perform the indemnity
obligations referred to herein and (y) the confirmation of the Plan; provided that to the extent
it is necessary to disclose the Term Sheet for such purposes, you shall take
such reasonable actions as may be necessary to prevent the Term Sheet from
becoming publicly available, including, without limitation, the filing of a
motion or an ex parte request seeking an order of the Bankruptcy Court
authorizing the Borrower to file the body of the Term Sheet under seal (it being
understood that the issuance of such order will be subject to the approval of
the Bankruptcy Court) and (c) as required by applicable law or compulsory legal
process (in which case you agree to inform us promptly thereof prior to such
disclosure).

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

     

    Notwithstanding
anything herein to the contrary, any party to this Engagement Letter (and any
employee, representative or other agent of such party) may disclose to any and
all persons, without limitation of any kind, the tax treatment and tax structure
of the transactions contemplated by this Engagement Letter and all materials of
any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure, except that (i) tax treatment
and tax structure shall not include the identity of any existing or future party
(or any affiliate of such party) to this Engagement Letter, and (ii) no party
shall disclose any information relating to such tax treatment and tax structure
to the extent nondisclosure is reasonably necessary in order to comply with
applicable securities laws.  For this purpose, the tax treatment of
the transactions contemplated by this Engagement Letter is the purported or
claimed U.S. Federal income tax treatment of such transactions and the tax
structure of such transactions is any fact that may be relevant to understanding
the purported or claimed U.S. Federal income tax treatment of such
transactions.

     

    15.           Surviving
Provisions.

     

    The
compensation, alternate transaction, reimbursement, indemnification,
confidentiality, jurisdiction, governing law and waiver of jury trial provisions
contained herein shall remain in full force and effect regardless of whether
definitive financing documentation shall be executed and delivered and
notwithstanding the termination of this Engagement Letter or Credit Suisse’s
agreements hereunder.

     

    16.           PATRIOT Act
Notification.

     

    Credit
Suisse hereby notifies you that pursuant to the requirements of the USA PATRIOT
Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT
Act”),
Credit Suisse may be and each Lender is required to obtain, verify and record
information that identifies the Borrower, which information includes the name,
address, tax identification number and other information regarding the Borrower
that will allow Credit Suisse or such Lender to identify the Borrower in
accordance with the PATRIOT Act.  This notice is given in accordance
with the requirements of the PATRIOT Act and is effective as to Credit Suisse
and each Lender.  You hereby acknowledge and agree that Credit Suisse
shall be permitted to share any or all such information with the
Lenders.

     

    17.           Acceptance and
Termination.

     

    If the
foregoing correctly sets forth our agreement, please indicate your acceptance of
the terms of this Engagement Letter by returning to us executed counterparts
hereof not later than 5:00 p.m., New York City time, on February 9,
2009.  Credit Suisse’s agreements contained herein will expire at such
time in the event that Credit Suisse has not received such executed counterparts
in accordance with the immediately preceding sentence.  Subject to the
terms of Section 15 above, this Engagement Letter may be terminated by Credit
Suisse at any time after the earlier of (x) the earlier of 30 days after the DIP
Maturity Date (as such date may be further extended from time to time) and July
31, 2009 and (y) a material breach by the Borrower under this Engagement
Letter.

     

    [Remainder of this page intentionally
left blank]

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Credit
Suisse is pleased to have been given the opportunity to assist you in connection
with the financing contemplated hereby.

    

    
      	 
      	
              Very
      truly yours,

            
	 
      	 
      	 
      
	 
      	
              CREDIT
      SUISSE SECURITIES (USA) LLC

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Ali R. Mehdi

            
	 
      	 
      	
              Name:  Ali
      R. Mehdi

            
	 
      	 
      	
              Title:    Managing
      Director

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    Accepted
and agreed to as of

    the date
first above written:

     

    BUFFETS,
INC.

     

    By: /s/ R. Michael Andrews,
Jr.                                                                                                 

    Name:  R.
Michael Andrews, Jr.

    Title:    Chief
Executive Officer

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