Document:

Exhibit 10.26

 

ASSIGNMENT,

ACCEPTANCE, AND CONSENT

 

For and in

consideration of One Dollar ($1.00), and other good and valuable consideration,

DONALD A. DUNHAM, JR., an individual residing in Sioux Falls, South Dakota

(“Assignor”), hereby assigns to DUNHAM CAPITAL MANAGEMENT, L.L.C., a South

Dakota limited liability company, located in Sioux Falls, South Dakota

(“Assignee”), all of the Assignor’s right, title and interest in and to that

certain Development Agreement, by and between Assignor, an individual residing

in Sioux Falls, South Dakota (“Developer”) and Granite City Food & Brewery,

Ltd., a South Dakota limited liability company, hereinafter referred to as

“Granite City,” dated as of October 22, 2002 (the “Agreement”).  From and after the date of this assignment,

the Assignee shall be deemed to be the “Developer” under the Agreement.

 

In consideration

of such assignment, Assignee herewith accepts and agrees to be bound by all of

the terms, conditions and provisions of the Agreement to the same extent as the

Assignor.

 

In consideration

of the acceptance of the Agreement by Assignor, Granite City hereby consents to

the foregoing assignment and agrees to recognize the Assignee as the

“Developer” under the Agreement. 

Granite City hereby releases Assignor from the terms of the Agreement.

 

All parties hereby

acknowledge and covenant that all terms and conditions of this Assignment,

Acceptance, and Consent, as well as the Agreement, shall be kept in strict

confidence and shall not be disclosed to any unauthorized parties or used in

any way, commercially or otherwise, either before or after expiration or

termination of this Assignment and such confidentiality shall include, but not

be limited to, any information regarding the compensation, obligations and

leases, and potential development plans. 

The parties hereby agree to be expressly obligated to maintain such

confidentiality.

 

 

IN WITTNESS WHEREOF,

Assignor, Assignee and Granite City have executed this Assignment,

 

Acceptance and

Consent as of the 22nd day of October, 2002.

 

 

	

   

  	

   

  	

   

  	

  ASSIGNOR:

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  /s/ Donald A.

  Dunham, Jr.

  	

   

  
	

   

  	

   

  	

   

  	

  Donald A.

  Dunham, Jr.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  ASSIGNEE:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  DUNHAM CAPITAL

  MANAGEMENT, L.L.C.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By 

  	

  /s/ Donald A.

  Dunham, Jr.

  	

   

  
	

   

  	

   

  	

   

  	

  Its 

  	

  President

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  GRANITE CITY

  FOOD & BREWERY LTD

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By 

  	

  /s/ Steven J.

  Wagenheim

  	

   

  
	

   

  	

   

  	

   

  	

  Its 

  	

  President

  	

   

  	

   

  
															

 

2Exhibit

10.27

 

 

March 17, 2003

 

 

Granite City Food

& Brewery Ltd.

5831 Cedar Lake

Road

St. Louis Park,

Minnesota  55416

 

Re:                             Development Agreement Between Dunham Capital Management,

L.L.C. (“Dunham”) and Granite City Food & Brewery Ltd. (the “Company”)

 

Ladies and

Gentlemen:

 

Reference is made

to the Development Agreement dated October 22, 2002, between Donald A. Dunham,

Jr. and Granite City Food & Brewery Ltd., as amended by an Assignment,

Acceptance and Consent between the Company, Donald A. Dunham, Jr. and Dunham

Capital Management, L.L.C. (collectively “Dunham”).  The Agreement provides, among other things that all terms and

conditions of the Assignment, Acceptance and Consent, as well as the Agreement,

shall be kept in strict confidence and not be disclosed to any unauthorized

parties or used in any way, commercially or otherwise, either before or after

expiration or termination of the assignment and that such confidentiality shall

include, but not be limited to, any information regarding the compensation,

obligations and leases, and potential development plans.

 

The Company has

advised Dunham that the Agreement is a material contract of the Company and

that disclosure thereof is required under applicable federal securities laws

and Securities and Exchange Commission regulations, and has requested that

Dunham waive any requirements as to confidentiality in connection with such

disclosures.  Based on the

representation by the Company that disclosure of the Agreement is required in

order to comply with applicable laws and regulations, Dunham hereby consents to

the disclosure of the Agreement to the extent necessary for the Company to

comply with its disclosure obligations under the Securities Act of 1933, as

amended, the Securities Exchange Act of 1934, as amended, and the regulations

of the Securities and Exchange Commission thereunder.

 

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  DUNHAM CAPITAL

  MANAGEMENT, L.L.C.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Donald A. Dunham,

  Jr.Exhibit 10.29

FORM
OF

FOUNDERS
FOOD & FIRKINS LTD.

 

NON-QUALIFIED
STOCK OPTION AGREEMENT

 

OUTSIDE
THE STOCK OPTION PLANS

__________________

Number of shares subject to Option:  _________________________

 

THIS AGREEMENT is
made and entered into as of December 27, 2001, between Founders Food &
Firkins Ltd. a Minnesota corporation (herein called the “Company”) and                              , (herein called
the “Optionee”).

W I T N
E S S E T H :

 

WHEREAS, the
Company desires to afford the Optionee an opportunity to purchase shares of its
common stock, (herein called the “Common Stock”), as provided in this
Agreement; and

WHEREAS, the Board
of Directors of the Company (herein called the “Board”) has authorized and
approved the granting of the option to purchase the number of shares of Common
Stock of the Company on the terms set forth in this Agreement,

NOW, THEREFORE, in
consideration of services rendered by the Optionee on behalf of the Company and
the mutual covenants hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto have agreed, and do hereby agree, as follows:

	
  1.

  	
   

  	
  Grant of Option.  The
  Company hereby irrevocably grants to the Optionee on December 31, 2001, the
  right and option (herein called the “Option”) to purchase all or any part of
  an aggregate of  ____shares of Common
  Stock (the “Shares”) at the purchase price of $1.65 per share, such option to
  be exercised as hereinafter provided. 
  This Option is issued outside the Company’s stock option plans.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Exercise of Option.  It is
  understood and agreed that the Option evidenced hereby is subject to the
  following terms and conditions:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
   

  	
  Expiration Date. 
  The option shall expire ten years after the date of grant specified in
  Section 1 above.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Exercisability. 
  Subject to the other terms of this Agreement regarding the
  exercisability of this Option, this Option shall be exercisable in full on
  the date of grant.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Written Notice of
  Exercise.  Any exercise shall be accompanied by a
  written notice to the Company specifying the number of shares of Stock as to
  which the Option is being exercised. 
  Notation of any partial exercise shall be made by the Company on
  Schedule I hereto.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Payment of Purchase
  Price.  The purchase price of the shares as to
  which the Option may be exercised shall be paid in full in cash at the time
  of exercise.  Except as provided

  
							

 

 

	
   

  	
   

  	
   

  	
   

  	
  in paragraphs 6 and 8
  of this Agreement, the Option may not be exercised unless the Optionee shall
  have been in the elected position of an employee of the Company from the date
  hereof to the date of the exercise of the Option.

  

 

3.                                       Adjustments. 
If the number or type of shares of Common Stock of the Company outstanding
shall be changed or if the Company distributes to the holders of its Common
Stock any stock of the Company or any security convertible into stock of the
Company, as a result of recapitalization, stock split, stock dividend,
exchange, consolidation, combination of shares, or reorganization or other
event in which the Company is the surviving corporation, the Board shall,
pursuant to the terms of the Plan, make such proportionate increase or decrease
in the number, kind and price of the shares subject to the Option as it may
deem appropriate, and in doing so may eliminate any fractional shares which
might result from such proportionate increase or decrease.

 

4.                                       Not a Stockholder. 
The holder of the Option shall not have any of the rights of a stockholder
of the Company with respect to the shares covered by the Option except to the
extent that the certificate or certificates for such shares shall be delivered
to him upon the due exercise of the Option.

 

5.                                       Non-Transferability of Option. 
The Option shall not be transferable except by will or the laws of
descent and distribution, and may be exercised during the lifetime of the
Optionee only by the Optionee.  Without
limiting the generality of the foregoing restriction of transferability, the
Option may not be assigned, transferred (except as provided in the preceding
sentence), pledged, or hypothecated in any way, shall not be assignable by
operation of law and shall not be subject to execution, attachment, or similar
process.  Any attempted assignment, transfer,
pledge, hypothecation, or other disposition of the Option contrary to the
provisions hereof, and the levy of any execution, attachment, or similar
process upon the Option, shall be null and void and without effect.

 

	
  6.

  	
   

  	
  Method of Exercising Option.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  Subject to the terms
  and conditions of this Agreement, the Option may be exercised, at any time
  prior to the expiration date specified in such option, by written notice to
  the Company at its executive offices. 
  Such notice shall state the election to exercise the Option and the
  number of shares in respect of which it is being exercised, shall be signed
  by the person or persons so exercising the Option, and shall be accompanied
  by payment of the full purchase price of such shares.  The Company shall deliver a certificate or
  certificates representing such shares as soon as practicable after the notice
  shall be received.  Payment of such
  purchase price shall be made by a certified check payable to the order of the
  Company, or by such other form of payment as the Company shall deem
  acceptable in its sole discretion. 
  The certificate or certificates for the shares as to which the Option
  shall have been so exercised shall be registered in the name of the person or
  persons so exercising the Option (or, if the Option shall be exercised by the
  Optionee and if the Optionee shall so request in the notice exercising the
  Option, shall be registered in the name of the Optionee and another person
  jointly, with right or survivorship) and shall be delivered as provided above
  to or upon the written order of the Optionee exercising the Option.  In the event the Option shall be exercised
  pursuant to paragraph 8 of the Agreement by any person or persons other than
  the Optionee, such notice shall be accompanied by appropriate proof of the
  right of such person or persons to exercise the Option.  All shares that shall be purchased upon
  the exercise of the Option as provided herein shall be fully paid and
  non-assessable.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  It shall be a condition
  to the obligation of the Company to issue or transfer shares of Common Stock
  upon exercise of the Option, that the Optionee (or any authorized
  representative) pay to the Company, upon its demand, such amount as may be
  requested by the 

  
					

 

2

 

	
   

  	
   

  	
   

  	
  Company for the purpose
  of satisfying its liability to withhold federal, state or local income or
  other taxes incurred by reason of the exercise of the Option or the transfer
  of shares upon such exercise.  If the
  amount requested is not paid, the Company may refuse to issue or transfer
  shares of Common Stock upon exercise of the Option.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  The Company shall not
  be required to issue or transfer any certificates for shares purchased upon
  exercise of this Option until all applicable requirements of law have been
  complied with and such shares have been listed on any securities exchange or
  system on which the Common Stock may then be listed.

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Death of Optionee.  In the
  event of the death of the Optionee, the estate of the Optionee or the person
  who acquires the right to exercise the Optionee’s Option by reason of the
  Optionee’s death, whether by request, inheritance or intestate succession,
  shall have the right to exercise the Option within twelve (12) months
  following the death of the Optionee (but not after the expiration of the
  Option) for the number of shares which the Optionee was entitled to purchase
  at the time of his death, but only if the person to whom the Option was
  granted was at the time of his death in the employ of the Company or any of
  its subsidiaries or of a corporation (or of a parent or subsidiary of such
  corporation) issuing or assuming the Option in the transaction to which
  Section 425(a) of the Internal Revenue Code of 1954, as amended, (herein
  called the “Internal Revenue Code”) was applicable.  Any such exercise shall be made by (a) delivering written
  notice to the Secretary of the Company specifying the number of shares of
  Common Stock with respect to which the Option is being exercised, and (b)
  paying or causing to be paid to the Company the purchase price of such shares
  (c) providing the Company with such evidence as the Company may request to
  demonstrate that the person or persons exercising the Option has or have the
  right to do so and that all taxes or other assessments with respect to the Common
  Stock issuable upon exercise of the Option have been paid or adequate
  provision for such payment has been made. 
  Upon being satisfied that the person or persons exercising the Option
  has or have right to do so and that all 
  taxes or other assessments with respect to the Common Stock covered
  thereby have been paid or provided for, the Company shall issue certificates
  for such shares in such denominations as the person or persons exercising the
  Option may direct, and shall deliver such shares in accordance with
  reasonable instructions contained in the notice.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Disposal of Shares Acquired. 
  In order to enable the Company to avail itself of any income tax
  deduction to which it may be entitled, the Optionee shall notify the Company
  of its intent to dispose of any of the shares acquired pursuant to exercise
  of this Option.  Promptly after such
  disposition the Optionee shall notify the Company of the number of shares
  disposed of, the dates of acquisition and disposition of such shares, and the
  consideration, if any, received on such disposition.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Reservation of Shares.  The
  Company shall at all times during the term of the Option reserve and keep
  available such number of shares of the Common Stock as will be sufficient to
  satisfy the requirement of this Agreement, shall pay all original issue and
  transfer taxes with respect to the issue and transfer of shares pursuant
  hereto and all other fees and expenses necessarily incurred by the Company in
  connection therewith, and will from time to time use its best efforts to
  comply with all laws and regulations which, in the opinion of counsel for the
  Company, shall be applicable thereto.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Investment Representation. 
  By exercising the Option, the Optionee acknowledges that he or she has
  received all financial and other information concerning the Company he or she
  deems necessary or has requested. 
  Optionee agrees that any shares acquired upon exercise of this Option
  shall be acquired for investment purposes and not with a view to distribution
  and that the Company may place a restrictive legend on any such shares as it
  shall determine necessary or desirable to comply with 

  

 

3

 

	
   

  	
   

  	
  applicable federal and state securities laws.  In addition, the Optionee agrees to
  furnish the Company with a certificate to the effect of the foregoing upon
  exercise of the Option.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Definitions.  As used
  herein, the term “subsidiary” shall mean any present or future corporation
  which would be a “subsidiary corporation” of the Company, as the term is
  defined in Section 425 (f) of the Internal Revenue Code of 1954 as amended.

  
	
  12.

  	
   

  	
  Governing Law.  This
  Agreement shall be governed by and construed in accordance with the laws of
  the State of Minnesota.

  
	
   

  	
   

  	
   

  
	
  IN WITNESS
  WHEREOF, Founders Food & Firkins Ltd. has caused this Agreement to be
  executed by the Optionee named below and the Optionee has executed this
  Agreement, both as of the day and year first above written.

  
	
   

  

FOUNDERS FOOD &
FIRKINS LTD.

 

	
  By:

  	
   

  
	
   

  	
  Steven J. Wagenheim

  
	
   

  	
  Chief Executive Officer

  

 

 

Optionee:

                                                                                

 

Address:

 

                                                                                

 

                                                                                

 

4

 

 

SCHEDULE I

 

NOTATIONS AS TO PARTIAL EXERCISE

 

	
   

  
	
  Date of

  Exercise

  	
   

  	
  Number of
  Purchased Shares

  	
   

  	
  Balance of
  Shares 

  on Option

  	
   

  	
  Authorized
  Signature

  	
   

  	
  Notation
  Date

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