Exhibit 10.10
GUARANTY
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GUARANTY (the "Agreement"), dated this 21st day of October, 1999, by and between
Xxxxxxxx Xxxxxxxx (hereinafter referred to as "Xxxxxxxx" or the "Guarantor"),
and Burger King Corporation (hereinafter referred to as "BKC" or the "Secured
Party").
WHEREAS, International Fast Food Corporation ("IFFC") is the owner of
all the issued and outstanding shares (the "IFFP Shares") of International Fast
Food Polska S.P. z.o.o. ("IFFP");
WHEREAS, on February 24, 0000, Xxxxxxxx (Xxxxxx) S.A. ("Citibank")
agreed to provide credit to IFFP in the aggregate amount of U.S. $5,000,000,
pursuant to a credit agreement dated February 24, 1999 (as amended, the "Credit
Agreement");
WHEREAS, as a condition to the disbursement of funds under the Credit
Agreement, BKC issued a guarantee in favor of Citibank to secure the repayment
by IFFP of amounts borrowed under the Credit Agreement (as amended, the
"Guarantee");
WHEREAS, pursuant to an Agreement for the Transfer of Title to Shares
by way of Security dated February 24, 1999 (as amended, the "Security
Agreement"), in consideration of the Guarantee, IFFC granted BKC a perfected
security interest in the IFFP Shares to secure BKC's claims which may arise as a
result of the payment by BKC of any amounts under the Guarantee;
WHEREAS, as a condition to the making of the Guarantee, IFFC agreed to
reimburse BKC for any payments that it may be required to make to Citibank under
the Guarantee, together with related costs, expenses and interest, as more fully
said forth in that certain Reimbursement Agreement dated as of February 24, 1999
(as amended, the "Reimbursement Agreement"), by and among IFFC, IFFP and BKC;
WHEREAS, Citibank has agreed to increase the amount which may be
borrowed under the Credit Agreement to an aggregate amount of U.S. $8,000,000,
and BKC has agreed to increase the amount of the Guarantee to secure the
repayment by IFFP of amounts borrowed under the Credit Agreement;
WHEREAS, in the event that Citibank is willing to further increase the
available credit under the Credit Agreement, BKC has agreed to increase the
amount of the Guarantee to a maximum aggregate amount of U.S. $10,000,000, upon
the terms, and subject to the conditions, of that certain Guarantee of Future
Advances Agreement dated of even date herewith by and among BKC, IFFC and IFFP;
WHEREAS, pursuant to a Purchase Agreement dated February 24, 1999 (as
amended, the "Purchase Agreement"), the parties agreed that, in the event that
BKC acquires the IFFP Shares pursuant to the exercise of its rights under the
Security Agreement, BKC will sell the IFFP Shares held by BKC to Xxxxxxxx
(subject to Section 1 hereof);
WHEREAS, Xxxxxxxx has agreed to personally guarantee the following
obligations: (i) Xxxxxxxx'x obligations to BKC under the Purchase Agreement and
(ii) IFFC's and IFFP's obligations under the Reimbursement Agreement, and to
secure such personal guarantee by the grant of a security interest in, and a
pledge to BKC of, an aggregate of 5,000,000 shares of common stock of IFFC (the
"Shares") which are owned by Xxxxxxxx.
NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereby agree as follows:
1. GUARANTY The Guarantor guarantees to BKC and its successors,
participants, endorsees and/or assigns, the due performance and full and prompt
payment, the following obligations (the "Obligations"): (i) the Guarantor's
obligations to BKC under the Purchase Agreement and (ii) IFFC's and IFFP's
obligations under the Reimbursement Agreement; provided, however, that
contemporaneous with the full performance by the Guarantor of its obligations
hereunder, BKC shall sell the IFFP Shares to Xxxxxxxx pursuant to the Purchase
Agreement. Any payments made by the Guarantor to BKC hereunder shall be credited
to the purchase price of the IFFP Shares under the Purchase Agreement.
2. GUARANTEE OF PAYMENT This is a guaranty of payment and
not of collection.
3. WAIVERS Guarantor waives any right to require BKC to (a) commence
legal proceedings against Guarantor, IFFC or IFFP or (b) pursue any other remedy
whatsoever available to BKC. Guarantor waives any defense arising by reason of
any disability or other defense of Guarantor, IFFC or IFFP or by reason of the
cessation from any cause whatsoever of Guarantor's, IFFC's or IFFP's liability
or by reason of BKC releasing any security held from Guarantor, IFFC or IFFP.
Guarantor covenants that it will for himself, and that he will use his best
efforts to cause IFFC and IFFP to, maintain and preserve the enforceability of
any instruments now or hereafter executed in favor of BKC and to take no action
of any kind that might be the basis for a claim that Guarantor has any defense
hereunder other than payment in full of all the Obligations. Guarantor hereby
indemnifies BKC against any loss, cost, or expense by reason of the assertion by
Guarantor of any defense hereunder based upon any such action or inaction of
Guarantor, IFFC or IFFP. No delay on the part of BKC in the exercise of any
right, power or privilege under the terms of any documentation between BKC and
Guarantor, IFFC or IFFP or under this Guaranty shall operate as a waiver of any
such privilege, power or right. Guarantor understands and agrees that Guarantor
is fully responsible for being and keeping informed of the financial condition
of IFFC and IFFP and of all circumstances bearing on the risk of failure to
perform the Obligations.
4. FEES AND EXPENSES Guarantor agrees to pay all reasonable attorneys'
fees and all other costs and expenses that may be incurred or expended by BKC in
the enforcement of the Obligations under this Guaranty, whether suit be brought
or not.
5. CONTINUING GUARANTY Guarantor acknowledges and agrees that this
Guaranty shall remain in full force and effect until all of the Obligations are
paid in full. Furthermore, Guarantor agrees that this Guaranty shall continue to
be effective or shall be reinstated, as the case may be, at any time payment, or
any part thereof, of principal or interest charges, or other related expenses of
the Obligations are rescinded or otherwise forgiven by BKC upon the bankruptcy
or reorganization of IFFC, IFFP or Guarantor.
6. MISCELLANEOUS.
6.1 FURTHER ASSURANCES. Each of the parties hereto agrees with the
other parties hereto that it will cooperate with such other parties and will
execute and deliver, or cause to be executed and delivered, all such other
instruments and documents, and will take such other actions, as such other
parties may reasonably request from time to time to effectuate the provisions
and purposes of this Agreement.
6.2 BINDING ON SUCCESSORS, TRANSFEREES AND ASSIGNS; ASSIGNMENT. This
Agreement shall be binding upon the parties hereto and their respective
successors, transferees and assigns. Notwithstanding the foregoing no party
hereto may assign any of its obligations hereunder without the prior written
consent of the other parties hereto; provided, that BKC may assign its rights
and delegate its duties under this Agreement to one or more of its subsidiaries
or affiliates.
6.3 AMENDMENTS; WAIVERS. No amendment to or waiver of any provisions of
this Agreement, nor consent to any departure therefrom by any party hereto,
shall in any event be effective unless the same shall be in writing and signed
by such party, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.
6.4 NO WAIVER; REMEDIES. No failure on the part of any party hereto to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any right. The
remedies herein provided are cumulative and not exclusive of any remedy provided
by law.
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6.5 EXPENSES. Guarantor shall cause IFFC to pay or reimburse BKC for
all of its legal, accounting and other expenses directly related to the
consummation of the transactions contemplated hereby, together with the costs
and expenses of enforcing any of its rights hereunder.
6.6 JURISDICTION. Any claim arising out of this Agreement shall be
brought in any state or federal court located in Miami-Dade County, Florida,
United States. For the purpose of any suit, action or proceeding instituted with
respect to any such claim, each of the parties hereto irrevocably submits to the
jurisdiction of such courts in Miami-Dade County, Florida, United States. Each
of the parties hereto further irrevocably consents to the service of process out
of said courts by mailing a copy thereof by registered mail, postage prepaid, to
such party and agrees that such service, to the fullest extent permitted by law,
(i) shall be deemed in every respect effective service of process upon it in any
such suit, action or proceeding and (ii) shall be taken and held to be a valid
personal service upon and a personal delivery to it. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, any objection
which it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding brought in any such court located in Miami-Dade County,
Florida, United States, and any claim that any such suit, action or proceeding
brought in such court has been brought in an inconvenient forum.
6.7 GOVERNING LAW; SEVERABILITY. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of Florida,
United States, without regard to any conflict of law, rule or principle that
would give effect to the laws of another jurisdiction.
6.8 NOTICES. All notices, requests and other communications to any
party hereunder shall be writing (including facsimile transmission or similar
writing) and shall be given to such party, addressed to it, at its address or
facsimile number set forth on the signature pages below, or at such other
address or facsimile number as such party may hereafter specify for such purpose
by notice to the other party. Each such notice, request or communication shall
be deemed effective when received at the address or facsimile number specified
below.
7. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, and all of which counterparts, when taken together,
shall constitute one and the same Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
/s/ Xxxxxxxx Xxxxxxxx
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Xxxxxxxx Xxxxxxxx
0000 Xxxxxxx Xxxx, Xxxxx 000
Xxxxx Xxxxx, XX 00000, XXX
BURGER KING CORPORATION
By: /s/ Xxxxxx Xxxxxxxxx
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Name: Xxxxxx Xxxxxxxxx
Title: Vice President
c/o Burger Xxxx XXX
Xxxxxxx Xxxxx
Xxxx Xxxxxx
Xxxxxxxx, Xxxxxxx XX00XX
Attn: General Counsel and
Vice President - Financial Affairs
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