This excerpt taken from the GCFB 10-Q filed Aug 4, 2008.
12. Subsequent Events
In July 2008, DHW purchased and leased to the Company equipment at two of its restaurants under the terms and conditions of the Equipment Lease Commitment the Company entered into with DHW in December 2007. The value of the equipment financed at each restaurant is approximately $1.0 million. The annual interest rate on one five-year lease is 10.55%. The Company will pay 10.3% annual interest on the other lease for 12 months, at which time the interest rate will be locked in at the then 5-year Treasury bill rate plus 8.3%. The Company has the option to purchase the leased equipment for $1.00 upon payment in full of all rent payments due under each lease. While Mr. Wagenheim owns a 20% membership interest in DHW and has agreed to personally guarantee 20% of DHWs indebtedness to its lenders, he will not receive a guarantee fee or other payment in connection with this DHW financing.
This excerpt taken from the GCFB 10-Q filed May 5, 2008.
12. Subsequent Events
South Bend and Indianapolis, Indiana lease agreements
In March and April 2008, the Company entered into 20-year net lease agreements relating to restaurants its anticipates opening in South Bend, Indiana in the third quarter of 2008 and Indianapolis, Indiana in the fourth quarter of 2008, respectively, under the terms specified in the development agreement with Dunham Capital Management L.L.C. (Dunham) for the development of restaurants. The restaurants will be constructed for the Company on a build-to-suit basis. Basic terms of the leases include annual rent equal to 10.5% of the construction cost plus the land lease and contingent rent based on a percentage of revenue. The base rent will escalate 10% at the end of each five-year period. The term of each lease will commence when operations begin and the Company will be responsible for any real-estate taxes and all operating costs. Rental costs associated with the operating lease incurred during the construction period are recognized as pre-opening costs and escalated rent will be recognized as expense on a straight-line basis over the term of each lease.
Development agreement with United Properties Investment LLC (United Properties)
In April 2008, the Company entered into a development agreement with United Properties for the development of up to 22 restaurants to be built between 2009 and 2012. As the Companys developer, United Properties will be responsible for all costs related to the land and building of each restaurant. The annual lease rate for fee-simple land and building developments will be 9.5% and the Company will have the right of first offer to purchase these restaurants. Additionally, in the event United Properties sells one of the buildings that it develops for the Company at a cap rate agreed to by the parties in the agreement, then the Company will share in the profits of that sale. The Company assumes no liability in the event United Properties sell a building at a loss.
These excerpts taken from the GCFB 10-K filed Mar 10, 2008.
14. Subsequent events
On December 31, 2007, a director of the Company exercised a stock option for the purchase of 15,000 shares of common stock at an exercise price of $2.27 per share. These options were issued pursuant to the 1997 Director Stock Option Plan and had an expiration date of January 1, 2008.
On January 31, 2008, the Company issued 10,153 shares of common stock upon the cashless exercise of a warrant for the purchase of 23,996 shares of common stock originally issued March 20, 2003 to one of the agents for its private placement of Series A Convertible Preferred Stock and warrants. The foregoing warrant had an exercise price of $1.58 per share and an expiration date of March 20, 2008.
14. Subsequent events
On December 31, 2007, a director of the Company exercised a stock option for the purchase of 15,000 shares of common stock at an exercise price of $2.27
This excerpt taken from the GCFB 10-K filed Feb 21, 2007.
13. Subsequent events
Rockford and East Peoria, Illinois leases
In January 2007, the Company entered into two 20-year net lease agreements relating to restaurants it anticipates opening in 2007 in Rockford and East Peoria, Illinois, under the terms specified in the development agreement with the Dunham. Each restaurant will be constructed for the Company on a build-to-suit basis. The annual rent of each will be equal to 10.5% of the construction cost including land cost. The Company will be responsible for any real-estate taxes and all operating costs. The term of each lease will commence when operations begin and may be extended at the Companys option for up to five additional five-year periods on the same terms and conditions, except the rent may increase based on a
formula using the Consumer Price Index during any such extension. Rental costs associated with the operating leases that are incurred during the construction period will be recognized as pre-opening costs, and included in income from continuing operations.