Exhibit 10.3
MASTER AGREEMENT
AMENDMENT NO. 1
AMENDMENT NO. 1 TO MASTER
AGREEMENT entered into
this 5 th day of October, 2009, by and between
DUNHAM CAPITAL MANAGEMENT, L.L.C. , DHW LEASING,
L.L.C. , and DUNHAM EQUITY MANAGEMENT, L.L.C. , all
South Dakota limited liability companies with a business address of
230 South Phillips Avenue, Suite 202, Sioux Falls, South
Dakota 57104 (individually referred to as “DCM,”
“DHW,” and “DEM,” and collectively referred
to as the “Dunham Entities” or “Dunham”);
and GRANITE CITY FOOD & BREWERY LTD , a Minnesota
corporation (“Corporation” or “Granite
City”).
W I T N E S S E T
H:
WHEREAS , the Dunham Entities and the Corporation
entered into a Master Agreement on February 7, 2009 (the
“Master Agreement”);
WHEREAS , the parties hereto have concurrently entered
into a Debt Conversion Agreement and have agreed in connection
therewith to amend this Master Agreement.
NOW, THEREFORE,
the parties hereto agree as
follows:
1.
Aggregate Rent Reductions . Section 1 is
hereby amended and restated as follows:
“The Dunham Entities hereby
(i) agree to provide aggregate rent reductions to the
Corporation in calendar year 2009 in the amounts specified on the
attached Exhibit A , (ii) agree to provide the
rent reductions in the calendar year 2010 in the amounts specified
on the attached Exhibit A , and (iii) agree to use
reasonable commercial efforts to obtain additional rent reductions
to achieve a total of $1,700,000 in rent reductions for the
calendar year 2010, including the rent reductions referred to in
(ii).”
2.
Effect of Amendment . All remaining terms of
the Master Agreement shall remain in full force and
effect.
1
IN WITNESS WHEREOF,
the parties have executed this
Amendment No. 1 to Master Agreement effective the date first
above written.
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DHW LEASING, L.L.C.
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By:
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/s/ Donald A. Dunham, Jr.
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Name:
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Donald A. Dunham, Jr.
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Its:
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Managing Member
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DUNHAM CAPITAL MANAGEMENT, L.L.C.
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By:
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/s/ Donald A. Dunham, Jr.
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Name:
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Donald A. Dunham, Jr.
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Its:
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Managing Member
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DUNHAM EQUITY MANAGEMENT, L.L.C.
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By:
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/s/ Donald A. Dunham, Jr.
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Name:
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Donald A. Dunham, Jr.
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Its:
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Managing Member
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GRANITE CITY FOOD & BREWERY
LTD.
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By:
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/s/ Steven J. Wagenheim
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Name:
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Steven J. Wagenheim
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Its:
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President and Chief Executive Officer
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2
EXHIBIT A
See Attached.
3
Granite City Food &
Brewery
Building/Land Leases
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2009
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2009
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2010
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2010
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2008
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2008
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Average
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Average
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Average
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Average
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Monthly
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Yearly
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Monthly
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Yearly
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Monthly
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Yearly
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Payments
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Payments
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Payments (1)
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Payments (1)
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Payments (1)
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Payments (1)
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Non-Dunham
Leases
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Sioux Falls
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$
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25,431.38
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$
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305,176.56
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$
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21,500.00
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$
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258,000.00
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$
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21,500.00
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$
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258,000.00
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St. Louis Park
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$
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12,385.42
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$
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148,625.04
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$
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9,885.35
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$
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118,624.24
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$
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12,385.42
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$
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148,625.04
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W. Wichita
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$
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26,250.00
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$
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315,000.00
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$
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17,250.00
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$
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207,000.00
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$
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27,500.00
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$
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330,000.00
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St. Cloud
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$
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21,310.97
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$
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255,731.64
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$
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19,830.71
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$
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237,968.46
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$
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22,421.63
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$
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269,059.56
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Cedar Rapids
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$
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26,250.00
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$
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315,000.00
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$
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26,250.00
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$
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315,000.00
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$
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26,250.00
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$
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315,000.00
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E. Peoria
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$
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39,025.00
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$
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468,300.00
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$
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32,229.51
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$
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386,754.13
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$
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34,814.24
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$
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417,770.86
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Fargo
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$
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6,000.00
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$
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72,000.00
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$
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6,000.00
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$
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72,000.00
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$
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6,000.00
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$
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72,000.00
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Orland Park
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$
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45,062.50
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$
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540,750.00
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$
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29,192.71
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$
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350,312.52
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$
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25,000.00
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$
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300,000.00
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Maple Grove
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$
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30,625.00
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$
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367,500.00
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$
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27,708.33
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$
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332,500.00
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$
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25,625.00
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$
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307,500.00
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Legends
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$
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33,687.50
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$
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404,250.00
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$
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26,786.42
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$
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321,437.04
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$
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24,985.32
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$
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299,823.84
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Total
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$
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266,027.77
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$
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3,192,333.24
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$
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216,633.03
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$
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2,599,596.39
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$
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226,481.61
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$
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2,717,779.30
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Savings from 2008
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$
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592,736.85
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$
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474,553.94
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Dunham
Leases
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Des Moines
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24,500.00
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$
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294,000.00
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$
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9,483.33
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$
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113,800.00
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$
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8,500.00
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$
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102,000.00
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Davenport
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28,437.50
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$
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341,250.00
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$
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16,437.50
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$
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197,250.00
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$
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16,437.50
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$
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197,250.00
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Lincoln
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26,732.55
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$
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320,790.60
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$
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20,715.88
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$
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248,590.56
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$
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19,650.00
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$
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235,800.00
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Wichita
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28,000.00
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$
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336,000.00
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$
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16,229.17
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$
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194,750.00
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$
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15,500.00
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$
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186,000.00
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Eagan
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33,031.25
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$
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396,375.00
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$
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26,750.00
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$
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321,000.00
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$
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26,750.00
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$
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321,000.00
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Zona Rosa
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37,187.50
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$
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446,250.00
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$
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19,816.67
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$
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237,800.00
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$
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19,000.00
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$
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228,000.00
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Olathe
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34,562.50
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$
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414,750.00
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$
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24,229.17
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$
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290,750.00
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$
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24,000.00
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$
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288,000.00
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Omaha
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26,291.67
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$
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315,500.04
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$
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19,854.17
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$
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238,250.04
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$
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19,666.67
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$
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236,000.04
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Rosedale
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33,625.00
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$
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403,500.00
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$
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33,625.00
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$
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403,500.00
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$
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33,625.00
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$
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403,500.00
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Madison
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34,055.59
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$
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408,667.08
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$
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34,055.59
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$
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408,667.08
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$
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34,055.59
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$
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408,667.08
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Rockford
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36,750.00
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$
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441,000.00
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$
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36,750.00
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$
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441,000.00
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$
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36,750.00
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$
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441,000.00
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Rogers
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33,750.00
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$
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405,000.00
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$
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33,750.00
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$
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405,000.00
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$
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33,750.00
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$
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405,000.00
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Creve Coeur
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26,252.00
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$
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315,024.00
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$
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25,938.00
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$
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311,256.00
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$
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26,252.67
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$
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315,032.04
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Fort Wayne
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32,208.33
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$
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386,499.96
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$
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32,208.33
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$
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386,499.96
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$
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32,208.33
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$
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386,499.96
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Toledo
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32,083.33
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$
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384,999.96
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$
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32,083.33
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$
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384,999.96
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$
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32,083.33
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$
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384,999.96
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South Bend
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34,381.85
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$
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412,582.20
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$
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34,568.55
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$
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414,822.64
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$
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34,441.85
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$
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413,302.20
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Indianapolis
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37,901.88
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$
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454,822.56
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$
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37,901.88
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$
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454,822.56
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$
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37,901.92
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$
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454,823.04
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$
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539,750.95
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$
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6,477,011.40
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$
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454,396.57
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$
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5,452,758.80
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$
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450,572.86
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$
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5,406,874.32
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Savings from 2008
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$
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1,024,252.60
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$
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1,070,137.08
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All Leases
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$
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805,778.72
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$
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9,669,344.64
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$
|
671,029.60
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$
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8,052,355.19
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$
|
666,991.97
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$
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8,003,903.62
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Savings from 2008
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$
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1,616,989.45
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$
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1,665,441.02
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(1.) Payments are averaged as
concession beginning and ending dates vary by store in 2009 and
2010
4
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2009
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2009 - Actual and Projected
Monthly Rents
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2009
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Average
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Jan
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Feb
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Mar
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Apr
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May
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Jun
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Jul
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Aug
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Sep
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Oct
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Nov
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Dec
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Total
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Monthly
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Non-Dunham
Leases
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Sioux Falls
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$
|
21,500.00
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$
|
21,500.00
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$
|
21,500.00
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$
|
21,500.00
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$
|
21,500.00
|
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$
|
21,500.00
|
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$
|
21,500.00
|
|
$
|
21,500.00
|
|
$
|
21,500.00
|
|
$
|
21,500.00
|
|
$
|
21,500.00
|
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$
|
21,500.00
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$
|
258,000.00
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$
|
21,500.00
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St. Louis Park
|
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.32
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$
|
9,885.42
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$
|
9,885.42
|
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$
|
9,885.42
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$
|
9,885.42
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$
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118,624.24
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$
|
9,885.35
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W. Wichita
|
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$
|
18,375.00
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$
|
18,375.00
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$
|
18,375.00
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$
|
18,375.00
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$
|
18,375.00
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$
|
18,375.00
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$
|
18,375.00
|
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$
|
18,375.00
|
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$
|
15,000.00
|
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$
|
15,000.00
|
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$
|
15,000.00
|
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$
|
15,000.00
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$
|
207,000.00
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$
|
17,250.00
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St. Cloud
|
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$
|
17,610.00
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|
$
|
17,610.00
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$
|
17,610.00
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$
|
17,610.00
|
|
$
|
17,610.00
|
|
$
|
17,610.00
|
|
$
|
21,310.97
|
|
$
|
21,310.97
|
|
$
|
22,421.63
|
|
$
|
22,421.63
|
|
$
|
22,421.63
|
|
$
|
22,421.63
|
|
$
|
237,968.46
|
|
$
|
19,830.71
|
|
|
Cedar Rapids
|
|
$
|
26,250.00
|
|
$
|
26,250.00
|
|
$
|
26,250.00
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|
$
|
26,250.00
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