Document:

exv10w18a

 

Exhibit 10.18a

AMENDMENT TO

LEASE AGREEMENT FOR A GAMMA KNIFE UNIT

     This AMENDMENT TO LEASE AGREEMENT FOR A GAMMA KNIFE UNIT (this “Amendment”) is made effective
December 13, 2003 (the “Effective Date”), by and between Methodist Healthcare System of San
Antonio, Ltd., d/b/a Southwest Texas Methodist Hospital, a Texas Corporation (“Hospital”), and GK
Financing, LLC, a California limited liability company (“GKF”).

RECITALS

     WHEREAS, on October 29, 1996, GKF and Hospital executed a Lease Agreement for a Gamma Knife
Unit, and an Addendum dated October 31, 1996 (collectively, the “Original Lease”);

     WHEREAS, the parties desire to amend the terms and provisions of the Original Lease as set
forth herein.

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

AGREEMENT

     1.     Defined Terms. Unless otherwise defined herein, the capitalized terms used herein
shall have the same meaning set forth in the Original Lease.

     2.     Lease Extension. The original ten (10) year Gamma Knife Service Term set forth in
Paragraph 3 of the Original Lease shall be extended for an additional two (2) years plus
the number of days the Equipment is not available for clinical use during Cobalt reloading (the
“Cobalt Reloading Period”). The Commencement Date of the Gamma Knife Service Term was March 17,
1998, and the Cobalt Reloading Period consisted of twenty-two (22) days.. Accordingly, the date on
which the Gamma Knife Service Term expires shall be extended from March 16, 2008 to April 7, 2010,
(which includes the Cobalt Reloading Period).

     3.     Cobalt Reload. The existing Cobalt-60 was removed from, and new Cobalt-60 reloaded
into, the Equipment during the Cobalt Reloading Period commencing on or about December 13, 2003.
The costs to remove and reload Cobalt-60 on the Equipment shall be the sole responsibility of GKF.

     4.     Paragraph 5 of the Original Lease shall be deleted in its entirety.

     5.     Marketing Support. Paragraph 6 of the Original Lease shall be deleted in its
entirety and replaced with the following:

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	 	   	Per Procedure Payments. As its sole consideration for the lease
of the Equipment and the provision of administrative support, Hospital
shall pay GKF the per procedure payment of * for each procedure that is
performed using the Equipment during the first five (5) years of this
Agreement starting from the Commencement Date (i.e., from March
17, 1998 through March 16, 2003).
	 
	 	   	“The per procedure payments during the sixth (6th) year of this
Agreement as extended by the Cobalt Reloading Period (i.e., from
March 17, 2003 through April 7, 2004) shall be determined as follows:

	 	 	 
	“Annual Procedures

	 	Per Procedure Payment
	*

	 	*
	*

	 	*
	*

	 	*
	*

	 	*

	 	   	“The per procedure payments during the seventh (7th) year of
this Agreement and during each subsequent year thereafter through the
expiration of this Agreement (i.e., from April 8, 2004 through
April 7, 2010) shall be determined as follows:

	 	 	 
	“Annual Procedures

	 	Per Procedure Payment
	*

	 	*
	*

	 	*
	*

	 	*
	*

	 	*

	 	   	“Notwithstanding anything to the contrary set forth herein, (a) for
purposes of determining the per procedure payment, the number of annual
procedures performed shall be reset to zero (0) on March 17, 2003, on
April 8, 2004, and on each April 8th thereafter through the
expiration of this Agreement; and (b) there shall be no retroactive
adjustment of the per procedure payment irrespective of whether the number
of procedures performed reaches a lower per procedure payment level. For
example, if * procedures are performed during the eighth year, Hospital
would pay * for each of the first * procedures, and * for each of the next
*.
	 
	 	   	“If no procedures are performed utilizing the Equipment, no charges shall
be incurred by Hospital.
	 
	 	   	“A procedure shall be defined as a single patient treatment session that
may include one or more isocenters during that session. Hospital shall be
billed on the fifteenth (15th) and the last day of each month for the
actual number of procedures performed during the first and second half of
the month, respectively. Hospital shall

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	 	   	pay the procedures invoiced within thirty (30) days after being invoiced.
Interest shall accrue at the rate of 1-1/2% per month on all invoices
remaining unpaid after 45 days.”

	 	6.  	Paragraph 8(e) of the Original Lease shall be deleted in its entirety and
replaced with the following:

	 	(e)  	Use best efforts to develop and implement an ongoing
marketing program that is specific to the Equipment (the “Marketing
Program”), which shall include, without limitation (i) providing
reasonable and customary marketing materials (i.e., brochures,
announcements, seminars for physicians by neurosurgeons and radiation
therapists, etc.) for the Gamma Knife service to be operated by the
Hospital; and (ii) employing an individual, who shall be employed
only after consultation with GKF, whose primary responsibility shall
be to provide marketing services for the Gamma Knife service to be
operated by the Hospital (the “Marketing Employee”). All of the
costs and expenses of the Marketing Program, including, without
limitation, all compensation paid to the Marketing Employee, shall be
borne solely by Hospital.

	 	   	The Marketing Program including, without limitation, all
advertisements, brochures and other marketing materials, shall be
subject to review by GKF prior to their use. Hospital and GKF
shall discuss the Marketing Program on a regular basis, which
shall be not less than once per month. In the event Hospital
materially fails to provide marketing efforts under the Marketing
Program generally consistent with the level and scope of such
efforts, as made by Hospital during its 2003 fiscal year, and
such material failure continues for at least thirty (30) calendar
days, GKF at is option may either (i) terminate this Agreement
upon providing Hospital with thirty (30) calendar days written
notice; or (ii) upon providing fifteen (15) calendar days written
notice to Hospital, increase the per procedure payments owed by
Hospital from * per procedure to * per procedure for each of the
* procedures during the seventh (7th) year of this
Agreement and during each subsequent year thereafter through the
expiration of this Agreement (i.e., from April 8, 2004 through
April 7, 2010) subject to the procedures set forth in Section 6
of this Agreement.

          6.     Paragraph 17 of the Original Lease shall be deleted in its entirety and replaced
with the following:

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	 	   	“17. Options.

     ”(a) Hospital shall have the option, exercisable as set forth below
to:

     ”(i) Renegotiate this Agreement on terms mutually agreeable to GKF
for a specified renewal term taking into account the first twelve (12)
years of activity of the Equipment at the Site. Pursuant to Paragraph
17(a)(ii), if terms and conditions of an extension are not executed by
both parties by the end of the eleventh (11th) year of the Gamma Knife
Service Term (as extended by the Cobalt Reloading Period (i.e., April 7,
2009), this Agreement shall terminate. Both parties shall negotiate in
good faith on the terms and conditions of an extension of this Agreement.

     ”(ii) Terminate this Agreement. If Hospital fails to renew this
Agreement as provided in Paragraph 17(a)(i) above, GKF shall, at its sole
expense remove the Gamma Knife within a reasonable period of time after
the expiration of the Gamma Knife Service Term. Hospital shall cooperate
in good faith in such removal.

     ”(iii) Purchase the Equipment from GKF at the end of the Gamma Knife
Service Term, at a price equal to * if at least * paid procedures have
been performed during the Gamma Knife Service Term.

     ”(iv) Purchase the Equipment from GKF at the end of the Gamma Knife
Service Term at a price equal to * of its Fair Market Value. Should
Hospital pay for the cost to reload the Cobalt on the Equipment during the
original Gamma Knife Service Term, any increase in Equipment value
attributed to Cobalt reloading will be excluded from determining the
Equipment’s Fair Market Value.

     “Hospital shall exercise one (1) of the four (4) options referred to
above, by mailing an irrevocable written notice thereof to GKF at Four
Embarcadero Center, Suite 3700, San Francisco, California, 94111, by
certified mail, return receipt requested, postmarked on or before the end
of the eleventh (11th) year of the Gamma Knife Service Term (as extended
by the Cobalt Reloading Period (i.e., April 7, 2009). Any such notice
shall be sufficient if it states in substance that Hospital elects to
exercise its option and states
which of the four (4) options referred to above Hospital is exercising.

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          7.     Full Force and Effect. Except as otherwise amended hereby or provided herein, all
of the terms and provisions of the Original Lease shall remain in full force and effect.
Notwithstanding the foregoing, to the extent of any conflict or inconsistency between the terms and
provisions of this Amendment and that of the Original Lease, the terms and provisions of this
Amendment shall prevail and control.

          IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the Effective
Date.

	 	 	 
	“HOSPITAL”	 	“GKF”
	Methodist Healthcare System of San

Antonio, Ltd, d/b/a Southwest Texas

Methodist Hospital

	 	GK Financing, LLC
	 
	 	 
	By: /s/ James C. Scoggin, Jr.

	 	By: /s/ Craig K. Tagawa
	 

	 	 
	Name: James C. Scoggin, Jr.

	 	Craig K. Tagawa
	Title: Executive Vice President

	 	Chief Executive Officer
	 
	 	 
	Approved as to Form:
	 	 
	 
	 	 
	By: /s/ Elizabeth Henry

	 	 
	 
	 	 
	Elizabeth Henry
	 	 
	General Counsel
	 	 

-5-exv10w1

 

Exhibit 10.1

FAMOUS DAVE’S OF AMERICA, INC.

AMENDED AND RESTATED

PERFORMANCE SHARE AGREEMENT

(2004-2006 Awards)

This AMENDED AND RESTATED PERFORMANCE SHARE AGREEMENT (the “Agreement”) is made
effective as of _________, 2005 by and between Famous Dave’s of America,
Inc., a Minnesota corporation, having a place of business at 8091 Wallace Road,
Eden Prairie, MN 55344 (the “Company”), and [____________] (“Employee”).

WITNESSETH:

WHEREAS, the Company has adopted the Famous Dave’s of America, Inc. [1995 Stock
Option and Compensation Plan] [1997 Employee Stock Option Plan] (the “Plan”) to
increase shareholder value and to advance the interests of the Company by
furnishing a variety of economic incentives designed to attract, retain and
motivate employees;

WHEREAS, the Company and Employee have previously entered into a Performance
Share Agreement dated as of February 18, 2004 pursuant to which the Company
granted Employee an award to be paid in shares of the Company’s common stock,
$.01 par value per share (the “Performance Shares”), subject to certain
conditions, which Performance Share Agreement was amended as of February 25,
2005 pursuant to Amendment No.1 to Performance Share Agreement (as amended, the
“Original Agreement”);

WHEREAS, the Compensation Committee of the Board of Directors of the Company
(the “Committee”) desires to amend the terms of the Original Agreement as
provided herein and has authorized the Company to amend and restate the terms
of the Original Agreement pursuant to this Agreement.

NOW, THEREFORE, it is agreed as follows:

	1.  	Grant of Stock. 

Subject to the terms and provisions of this Agreement and the Plan, the
Company hereby grants to Employee an award to be paid in shares of the
Company’s common stock, $.01 par value per share (the “Performance Shares”),
on the Vesting Date identified in Exhibit A attached hereto. The number of
Performance Shares granted pursuant to this award is set forth in Exhibit A
and issuance by the Company of such Performance Shares (i) is contingent
upon the Company achieving the performance objectives set forth in Exhibit
A; and (ii) is subject to the other terms and conditions and contingencies
set forth in such Exhibit and in the Plan.
	 
	2.  	Rights of Employee.

Employee shall not have any of the rights of a shareholder with respect to
the Performance Shares except to the extent that such Performance Shares are
issued to Employee in accordance with the terms and conditions of this
Agreement and the Plan.
	 
	3.  	The Plan.

The Performance Share award is granted pursuant to the Plan (including
without limitation Section 9 thereof) and is governed by the terms thereof,
which are incorporated herein by reference. In the event of any conflict or
inconsistency between the provisions of this Agreement and those of the
Plan, the provisions of the Plan shall govern and control.
	 
	4.  	Administration.

This Agreement shall at all times be subject to the terms and conditions of
the Plan. The Committee shall have the sole and complete discretion with
respect to all matters reserved to it by the Plan and decisions of the
Committee with respect thereto and to this Agreement shall be final and
binding upon Employee. In the event of any conflict between the terms and
conditions of this Agreement and the Plan, the provisions of the Plan shall
govern and control.

1

 

	5.  	Continuation of Employment or Right to Corporate Assets.

Nothing contained in this Agreement shall be deemed to grant Employee any
right to continue in the employ of the Company for any period of time or to
any right to continue his or her present or any other rate of compensation,
nor shall this Agreement be construed as giving Employee, Employee’s
beneficiaries or any other person any equity or interests of any kind in the
assets of the Company or creating a trust of any kind or a fiduciary
relationship of any kind between the Company and any such person.
	 
	6.  	Further Assurances.

Each party hereto agrees to execute such further papers, agreements,
assignments or documents of title as may be necessary or desirable to affect
the purposes of this Agreement and carry out its provisions.
	 
	7.  	Governing Law.

This Agreement, in its interpretation and effect, shall be governed by the
laws of the State of Minnesota applicable to contracts executed and to be
performed therein.
	 
	8.  	Entire Agreement; Amendments.

This Agreement and the Plan embody the entire agreement made between the
parties hereto with respect to the matters covered herein and shall not be
modified except by a writing signed by the party to be charged.
	 
	9.  	Counterparts.

This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which shall constitute but one and
the same agreement.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed as
of the date first written above.

	 	 	 	 	 
	 	FAMOUS DAVE’S OF AMERICA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

_________________________________

[_____________], Employee

2

 

Exhibit A to Performance Share Agreement

Additional Terms and Conditions of Performance Shares

	•  	Number of Performance Shares subject to the Agreement:
[_________] (the “ Performance Shares”)

	•  	Grants of Performance Shares are contingent upon:

	 	(i)  	Employee having signed and delivering (either previously or
in connection with this grant) a non-competition agreement in form
and substance acceptable to the Corporation on or prior to the date
of the Agreement.
	 
	 	(ii)  	Employee remaining an employee of the Company during all
periods prior to the “Vesting Date” (as defined below); and
	 
	 	(iii)  	the Company achieving 100% of the cumulative total of the
earnings per share goals (as discussed below) for fiscal 2004,
fiscal 2005 and fiscal 2006 (the “Cumulative EPS Goal”); provided
that if the Company fails to achieve 100% of the Cumulative EPS Goal
but achieves at least the Applicable Percentage (as defined below)
of the Cumulative EPS Goal, then Employee shall be entitled to
receive a percentage of the Performance Shares equal to the
percentage of the Cumulative EPS Goal achieved by the Company.

If these conditions are satisfied, the Company shall issue the number of
Performance Shares earned to Employee as soon as reasonably practicable
following the Vesting Date.

For purposes hereof, the “Applicable Percentage” of the Cumulative EPS
Goal shall be the percentage obtained by multiplying (a) 100; by (b) a
fraction, the numerator of which equals the sum of (i) the fiscal 2004
earnings per share goal; plus (ii) 80% of each of the fiscal 2005 and
2006 earnings per share goals, and the denominator of which equals the
Cumulative EPS Goal. By way of example only, assume the earnings per
share goals for fiscal 2004, 2005 and 2006 equal $1.00, $2.00 and $3.00,
respectively, the Applicable Percentage would be equal to 83.33%,
calculated as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Percentage
	 	 	=	 	 	 	100	 	 	 	x	 	 	 	($1.00 + (80%)($2.00) + (80%)($3.00)	 	 	 	=	 	 	 	100	 	 	 	x	 	 	$	5.00	 	 	 	=	 	 	 	83.33	%

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	($1.00 + $2.00 + $3.00)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	6.00	 	 	 	 	 	 	 	 	 

	•  	The earnings per share goal for each fiscal year will be determined
by the Committee during the 1st fiscal quarter of the applicable fiscal
year, or earlier, as determined by the Committee. Following the
determination of the earnings per share goal for each fiscal year
subject to the Agreement, the Company shall deliver written notice of
such earnings per share goal to Employee (unless Employee is no longer
of an employee of the Company) and Exhibit B to the Agreement shall be
updated to reflect such earnings per share goal.

	•  	The actual earnings per share for each fiscal year shall be based
on the fully diluted earnings per share amount for such fiscal year
that is set forth in the audited financial statements filed with the
Company’s corresponding Annual Report on Form 10-K; provided, however,
that the actual earnings per share for fiscal 2005 shall be net of
compensation expense related to the Company’s performance share
programs that results from increases in the market value of the
Company’s common stock from and after the date on which performance
            shares are granted, but only to the extent that such compensation
expense is in excess of the budgeted amount used in determining the
earnings per share goal for fiscal 2005. The determination regarding
whether the Company has achieved the cumulative total of the earnings
per share goals for fiscal 2004, fiscal 2005 and fiscal 2006 will be
made upon filing of the Annual Report on Form 10-K for fiscal 2006 (the
“Vesting Date”). Performance Shares will be issued only if at least
the Applicable Percentage of the cumulative total goal for all three
fiscal years is achieved and no partial issuance of Performance Shares
shall be made if the Applicable Percentage or more of the goals are
achieved in any one or more fiscal years but not for the cumulative
three year total.

B-1

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