# EDGAR Filing Document

**Accession Number:** 0000825324
**File Stem:** 0001214659-23-001237
**Filing Date:** 2023-1
**Character Count:** 133112
**Document Hash:** 469fd59981354769408b15ed1e5d3d6a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001214659-23-001237.hdr.sgml**: 20230130

**ACCESSION NUMBER**: 0001214659-23-001237

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20230124

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230130

**DATE AS OF CHANGE**: 20230130

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Good Times Restaurants Inc.
- **CENTRAL INDEX KEY:** 0000825324
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-EATING PLACES [5812]
- **IRS NUMBER:** 841133368
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0926

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18590
- **FILM NUMBER:** 23565183

**BUSINESS ADDRESS:**
- **STREET 1:** 651 CORPORATE CIRCLE
- **STREET 2:** SUITE 200
- **CITY:** GOLDEN
- **STATE:** CO
- **ZIP:** 80401
- **BUSINESS PHONE:** 303-384-1440

**MAIL ADDRESS:**
- **STREET 1:** 651 CORPORATE CIRCLE
- **STREET 2:** SUITE 200
- **CITY:** GOLDEN
- **STATE:** CO
- **ZIP:** 80401

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GOOD TIMES RESTAURANTS INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PARAMOUNT VENTURES INC
- **DATE OF NAME CHANGE:** 19900205

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported)

January 24, 2023

(Exact name of registrant as specified in its charter)

Nevada 000-18590 84-1133368 <br> (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

651 Corporate Circle, Suite 200, Golden, Colorado 80401

(Address of principal executive offices including zip code)

Registrant's telephone number, including area code: (303) 384-1400

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading <br> Symbol(s)** | **Name of each exchange on which <br> registered** |
| Common Stock, $0.001 par value | GTIM | Nasdaq Stock Exchange |

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| | |
|:---|:---|
| **Item 1.01.** | **Entry Into a Material Definitive Agreement.** |

---

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| | |
|:---|:---|
| **Item 2.01.** | **Completion of Acquisition or Disposition of Assets.** |

---

*Membership Interest Purchase Agreement*

On January 25, 2023, Bad Daddy's International, LLC ("<u>BDI</u>"), a wholly-owned subsidiary of Good Times Restaurants Inc. (the "<u>Company</u>") entered into a Membership Interest Purchase Agreement ("<u>Purchase Agreement</u>") by and among Bad Daddy's International, LLC and Thompson Family Associates, RFM Ventures, LLC, Richard Miller, Vicki T. Ponce, Covington DeRamus, ACR Capital Ventures, LLC, Bill Duke, Jim Verney and Jim Abbott (collectively, the "<u>Sellers</u>"). Pursuant to the Purchase Agreement, BDI purchased limited liability company membership interests (the "<u>Joint Venture Interests</u>") from its partners in five of the Company's restaurant joint ventures as follows: (i) 76.7980% of the equity interests of Bad Daddy's Burger Bar of Winston Salem, LLC ("<u>BD Winston</u>"; (ii) 50.0000% of the equity interests of Bad Daddy's of Fayetteville, LLC ("<u>BD Fayetteville</u>"); (iii) 42.1000% of the equity interests of BD of Greenville, LLC ("<u>BD Greenville</u>"); (iv) 49.0000% of the equity interests of BD of Wendover Commons, LLC ("<u>BD Wendover Commons</u>"); and (v) 24.6591% of the equity interests of BD of McDaniel Village, LLC ("<u>BD McDaniel</u>; and collectively with BD Winston, BD Fayetteville, BD Greenville and BD Wendover Commons, LLC, the "<u>Joint Ventures</u>"). The consummation of the purchase of the Joint Venture Interests resulted in BDI owning all of the equity interests of the Joint Ventures such that each Joint Venture became a wholly-owned subsidiary of the Company. The aggregate cash purchase price paid to the Sellers was $4,394,205.00. Mr. Abbott serves as BDI's Vice President of Operations and, as one of the Sellers, received approximately $523,000 of the aggregate proceeds as consideration for the portion of the Joint Venture Interests that he owned. The Purchase Agreement also contains customary representations, warranties and covenants of BDI and the Sellers.

The forgoing description of the Purchase Agreement is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which is filed as Exhibit 10.1 to this current report on Form 8-K and is incorporated by reference herein.

*Credit Agreement Amendment*

Additionally, on January 24, 2023, the "<u>Company</u>" and each of its wholly-owned subsidiaries, as guarantors, entered into an Eighth Amendment to Credit Agreement (the "<u>Amendment</u>") with respect to the Company's Credit Agreement with Cadence Bank, N.A., as lender, entered into on September 8, 2016, as amended on September 11, 2017 by the First Amendment to Credit Agreement (the "<u>First Amendment</u>"), as further amended on October 31, 2018 by the Second Amendment to Credit Agreement (the "<u>Second Amendment</u>"), as further amended on February 21, 2019 by the Third Amendment to Credit Agreement (the "<u>Third Amendment</u>"), as further amended on December 9, 2019 by the Fourth Amendment to Credit Amendment (the "<u>Fourth Amendment</u>"), as further amended on January 8, 2021 by the Fifth Amendment to Credit Amendment (the "<u>Fifth Amendment</u>"), as further amended on August 12, 2021 by the Sixth Amendment to Credit Amendment (the "<u>Sixth Amendment</u>"), and as further amended on January 31, 2022 by the Seventh Amendment to Credit Agreement (the "<u>Seventh Amendment</u>" and, together with the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, and the Sixth Amendment, the "<u>Credit Agreement</u>").

The Amendment, among other things, amends the Credit Agreement to extend its maturity date to April 30, 2023, provides lender consent required under the Credit Agreement for the acquisition of the Joint Venture Interests, and provides EBITDA credit under the facility for a portion of the approximately $850,000 of full-year EBITDA (as that term is defined in the Credit Agreement), that was previously allocated to the non-controlling members of the Joint Ventures. The Amendment also includes a covenant obligating the Company to join the now wholly-owned Joint Ventures as guarantors under the Credit Agreement. As of the date hereof, there are no outstanding borrowings under the facility.

The forgoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, a copy of which is filed in Exhibit 10.2 to this current report on Form 8-K and is incorporated by reference herein.

In connection with the acquisition of Joint Venture Interests, the Company issued a press release on January 30, 2023, which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information contained in Item 1.01 regarding the Amendment is incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

---

| | |
|:---|:---|
| Number | Description |
| 10.1\* | [Membership Interest Purchase Agreement, dated January 25, 2023 by and among Bad Daddy's International, LLC and Thompson Family Associates, RFM Ventures, LLC, Richard Miller, Vicki T. Ponce, Covington DeRamus, ACR Capital Ventures, LLC, Bill Duke, Jim Verney and Jim Abbott](ex10_1.htm) |
| 10.2\* | [Eighth Amendment to Credit Agreement and Waiver, dated January 24, 2023 by and<br> among Good Times Restaurants Inc., each of its wholly-owned subsidiaries and Cadence<br> Bank, N.A.](ex10_2.htm) |
| 10.3 | [Cadence Bank Credit Agreement](https://www.sec.gov/Archives/edgar/data/825324/000121465916013646/ex10_1.htm) (previously filed as Exhibit 10.1 to the<br> registrant's Current Report on Form 8-K filed September 13, 2016 and incorporated herein by reference) |
| 10.4 | [Cadence Bank First Amendment to Credit Agreement](https://www.sec.gov/Archives/edgar/data/825324/000121465917005577/ex10_1.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed September 12, 2017 and incorporated herein by reference) |
| 10.5 | [Cadence Bank Second Amendment to Credit Agreement](https://www.sec.gov/Archives/edgar/data/825324/000121465919006295/p1081958k.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed November 2, 2018 and incorporated herein by reference) |
| 10.6 | [Cadence Bank Third Amendment to Credit Agreement](https://www.sec.gov/Archives/edgar/data/825324/000121465919003342/s5919010q.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 10-Q filed May 10, 2019 and incorporated herein by reference) |
| 10.7 | [Cadence Bank Fourth Amendment to Credit Agreement](https://www.sec.gov/Archives/edgar/data/825324/000121465919007716/j12101918k.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed December 13, 2019 and incorporated herein by reference) |

---

---

| | |
|:---|:---|
| 10.8 | [Cadence Bank Fifth Amendment to Credit Agreement](https://www.sec.gov/Archives/edgar/data/825324/000121465921000477/f1132138k.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed January 14, 2021 and incorporated herein by reference) |
| 10.9 | [Cadence Bank Sixth Amendment to Credit Agreement](https://www.sec.gov/ix?doc=/Archives/edgar/data/825324/000121465921008569/c8122158k.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed August 16, 2021 and incorporated herein by reference) |
| 10.10 | [Cadence Bank Seventh Amendment to Credit Agreement](https://www.sec.gov/ix?doc=/Archives/edgar/data/825324/000121465922001801/c1312248k.htm) (previously filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed February 3, 2022 and incorporated herein by reference) |
| 99.1\* | [Press Release dated January 30, 2023](ex99_1.htm) |
| Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\*Filed herewith

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | GOOD TIMES RESTAURANTS INC. |
| Date: January 30, 2023 | By: | ![](rzink_sig.jpg) |
|  |  | &nbsp;&nbsp;&nbsp;Ryan M. Zink |
|  |  | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**MEMBERSHIP INTEREST PURCHASE AGREEMENT**

This Membership Interest Purchase Agreement (this "**Agreement**"), dated this 25th day of January, 2023 is entered into between Bad Daddy's International, LLC, a North Carolina limited liability company ("**Buyer**") and each "Seller" listed on the signature pages hereto (collectively, the "**Sellers**"). All capitalized terms used but not defined in the body of this Agreement shall have the meanings ascribed to them in **<u>Exhibit A</u>** attached hereto.

**RECITALS**

WHEREAS, Sellers own such number of the issued and outstanding membership interests of Bad Daddy's Burger Bar of Winston-Salem LLC, a North Carolina limited liability company ("**BDWS**"), Bad Daddy's of Fayetteville, LLC, a North Carolina limited liability company ("**BDF**"), BD of Greenville, LLC, a North Carolina limited liability company ("**BDG**"), BD of McDaniel Village, LLC, a South Carolina limited liability company ("**BDMV**"), and BD of Wendover Commons, LLC, a North Carolina limited liability company ("**BDWC**" and together with BDWS, BDF, BDG and BDMV, the "**Companies**" and each individually, a "**Company**"), listed opposite their names on **Section 2.02** of the Disclosure Schedule (the "**LLC Interests**"); and

WHEREAS, Sellers wish to sell to Buyer, and Buyer wishes to purchase from Sellers, the LLC Interests, subject to the terms and conditions set forth herein, such that from and after the closing of such transactions, Buyer shall be the sole owner of the Companies.

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

**Article I<br> Purchase and sale**

**Section 1.01** **Purchase and Sale**. Subject to the terms and conditions set forth herein, at the Closing, Sellers shall sell to Buyer, and Buyer shall purchase from Sellers, the LLC Interests, free and clear of all Encumbrances (other than Permitted Interest Encumbrances) for the consideration specified in **Section 1.02**.

**Section 1.02** **Purchase Price**. The aggregate purchase price for the LLC Interests shall be $4,394,205.00, which shall be allocated among the Sellers in accordance with <u>Schedule A</u> attached hereto (the "**Purchase Price**") and shall be paid by wire transfer of immediately available funds to accounts designated by the Sellers at least two (2) Business Days prior to the Closing Date. Notwithstanding the foregoing, at the Closing, five percent (5%) of the portion of the Purchase Price payable to Bill Dukes will be retained by Buyer (the "**Dukes Holdback**") as a non-exclusive source of funds to satisfy any tax reimbursement obligations of Bill Dukes to the Companies based on tax payments made by the Companies to the State of North Carolina with respect to any state tax obligations owed thereto by Mr. Dukes as a result of his ownership of the LLC Interests or membership in the Companies. Upon the provision of evidence of any such tax payment by the Companies on behalf of Mr. Dukes, Buyer shall be entitled to retain such amount of the Dukes Holdback. To the extent the Companies make tax payments on behalf of Mr. Dukes in excess of the Dukes Holdback, in the aggregate, Mr. Dukes shall reimburse the Companies for such excess within ten (10) Business Days following the Companies' written demand therefor. To the extent any portion of the Dukes Holdback remains after all tax payments to the State of North Carolina have been made by the Companies on behalf of Mr. Dukes, Buyer will wire such remaining amounts to Mr. Dukes via the wire instructions provided for the Closing. Buyer shall prepare an accounting identifying the tax payments the Companies make on behalf of Mr. Dukes and Buyer's application of such tax payments against the Dukes Holdback. Buyer will provide a copy of such accounting to Mr. Dukes promptly following Buyer's receipt of evidence that a Company has made such a tax payment or upon Mr. Duke's reasonable written request.

**Section 1.03** **Closing**. The purchase and sale of the LLC Interests contemplated hereby shall take place at a closing (the "**Closing**") to be held on the date hereof, remotely via exchange of signature pages to this Agreement or at such other time or on such other date or by such other method as Sellers and Buyer may mutually agree upon in writing (the day on which the Closing takes place being the "**Closing Date**"). The effective time of the Closing for all purposes hereunder shall be 12:01 a.m. Charlotte, North Carolina time on the Closing Date.

**Article II<br> Representations and Warranties of Sellers**

Except as set forth in the Disclosure Schedules, each Seller represents and warrants to Buyer that the statements contained in this **Article II** are true and correct as of the date of this Agreement, <u>provided that all representations and warranties by each Seller about or with respect to the Companies, their respective businesses or operations (but not about such Seller or the Subject Interests owned thereby) are being made to the Knowledge of Sellers, irrespective of whether the actual representation or warranty includes such knowledge qualification (other than **Section 2.01, Section 2.02(a), and Section 2.02(b)**); provided further that, notwithstanding anything in this Agreement to the contrary, for any Company that is not an Applicable Company of a Seller, then such Seller makes no representation or warranty about or with respect to (i) such Company, (ii) such Company's businesses, operations, or LLC Interests thereof, (iii) the other Sellers' ownership of such Company, or (iv) the other Sellers' acts or omissions in connection with or related to such Company.</u>

**Section 2.01** **Organization, Authority, Right, Power and Capacity of Seller*.*** The Companies are limited liability companies duly organized, validly existing and in good standing under the Laws of the state of their respective organization, and Seller has full power, authority to enter into this Agreement and the other Transaction Documents to which Seller is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller is a party, the performance by Seller of its obligations hereunder and thereunder and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite action on the part of Seller. This Agreement has been duly executed and delivered by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement constitutes a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms, subject to subsequent events of bankruptcy, fraudulent transfer, reorganization, moratorium or similar laws relating to or affecting creditors' rights generally and to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law).

**Section 2.02** **Capitalization.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The LLC Interests set forth opposite Seller's name on **Section 2.02** of the Disclosure Schedule are owned beneficially by such Seller, free and clear of all Encumbrances other than Permitted Interest Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon consummation of the transactions contemplated by this Agreement, Buyer shall own all of the LLC Interests, free and clear of all Encumbrances other than Permitted Interest Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth in the operating agreement of each Company, there are no outstanding or authorized options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to the equity interests of the Companies or obligating Seller or the Companies to issue or sell any equity interests of, or any other interest in, the Companies. The Companies do not have outstanding or authorized any equity interest appreciation, phantom equity interest, profit participation or similar rights. Except as set forth in the operating agreement of each Company, there are no voting trusts, equity holder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the LLC Interests.

**Section 2.03** **No Conflicts; Consents**. Except as described on **Section 2.03** of the Disclosure Schedules, the execution, delivery and performance by Seller of this Agreement and the other Transaction Documents to which Seller is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the articles of organization, operating agreement, or other organizational documents of any Company or, if Seller is not an individual, of Seller; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Sellers or any Company; (c) require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Material Contract to which Sellers or any Company is a party or by which Sellers or any Company is bound or to which any of their respective properties and assets are subject (including any contract) or any material Permit affecting the properties, assets or business of any Company; or (d) result in the creation or imposition of any Encumbrance other than Permitted Encumbrances on any properties or assets of any Company. Except as set forth in **Section 2.03** of the Disclosure Schedules, no consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Sellers or any Company in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby.

**Section 2.04** **Absence of Certain Changes, Events, and Conditions*.*** Except as set forth in **Section 2.04** of the Disclosure Schedules, since January 1, 2022, and other than in the ordinary course of business consistent with past practice, there has not been, with respect to any Company, any event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

**Section 2.05** **Material Contracts.** None of the Sellers have entered into (i) a written Contract on behalf of or that otherwise binds a Company that has not been provided to Buyer or (ii) an oral Contract on behalf of or that otherwise binds a Company.

**Section 2.06** **Title to Assets; Real Property.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Company has good and valid title to all personal property and other assets reflected on such Company's books and records, including, but not limited to, all furniture, fixtures and equipment, other than personal property sold or otherwise disposed of in the ordinary course of business consistent with past practice since the Balance Sheets Date, and other than cash and cash equivalents. All such properties and assets (including leasehold interests) are free and clear of Encumbrances except for the following (collectively referred to as "**Permitted Encumbrances**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) liens for Taxes not yet due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) mechanics, carriers', workmen's, repairmen's or other like statutory liens arising or incurred in the ordinary course of business consistent with past practice with respect to amounts that are not delinquent and which are not, individually or in the aggregate, material to the business of the Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) easements, rights of way, zoning ordinances and other similar encumbrances affecting Real Property which are not, individually or in the aggregate, material to the operation of the business of the Companies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) liens arising under original purchase price conditional sales contracts and equipment leases with third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Company is a sublessor or grantor under any sublease or other instrument granting to any other Person any right to the possession, lease, occupancy or enjoyment of any leased Real Property. The use and operation of the Real Property in the conduct of the business of any Company does not violate in any material respect any Law, covenant, condition, restriction, easement, license, permit or agreement. No material improvements constituting a part of the Real Property encroach on real property owned or leased by a Person other than the Companies. There are no Actions pending nor threatened against or affecting the Real Property or any portion thereof or interest therein in the nature or in lieu of condemnation or eminent domain proceedings.

**Section 2.07** **Condition and Sufficiency of Assets**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on **Section 2.07(a)** of the Disclosure Schedule, the furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property of the Companies and the HVAC systems at the Real Property (i) are in good operating condition and repair, normal wear and tear excepted, and (ii) are adequate for the uses to which they are being put, and none of such furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property or the HVAC systems at the Real Property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs, and the structure and foundation of the Real Property are not in need of material maintenance or repairs except for ordinary, routine maintenance and repairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The buildings, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property currently owned or leased by each Company, together with all other properties and assets of each Company, are sufficient for the continued conduct of such Company's business after the Closing in substantially the same manner as conducted prior to the Closing and constitute all of the rights, property and assets necessary to conduct such Company's business as currently conducted.

**Section 2.08** **Insurance**. None of the Companies or their respective Affiliates has received any written notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of the Company's insurance policies. No Company is in default under, or has otherwise failed to comply with, in any material respect, any provision contained in any such Insurance Policy.

**Section 2.09** **Legal Proceedings; Governmental Orders**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in **Section 2.09(a)** of the Disclosure Schedules, there are no Actions pending or threatened (i) against any Company, or any owner, employee, manager or office thereof, affecting any of their respective properties, assets or business (or by or against Sellers or any Affiliate thereof and relating to any Company); or (ii) against or by any Company, Sellers or any Affiliate thereof that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that is reasonably likely to give rise to, or serve as a basis for, any such Action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against any Company or any of their respective properties, assets or business. No event has occurred or circumstances exist that is reasonably likely to constitute or result in (with or without notice or lapse of time) a violation of any such Governmental Order.

**Section 2.10** **Compliance with Laws; Permits**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Company in compliance and have at all times in the three (3) years prior to the date hereof complied with all Laws, including immigration and employment laws, applicable to their respective businesses, properties or assets in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All material Permits required to conduct each Company's business have been obtained and are valid and in full force and effect. All fees and charges with respect to such Permits due and payable on or prior to the date hereof have been paid in full.

**Section 2.11** **Brokers**. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Sellers or the Companies.

**Section 2.12** **Full Disclosure; Disclaimer of Other Warranties**. To the Knowledge of Sellers, no representation or warranty by Seller in this **Article II** contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading. Except as expressly set forth in this Agreement, the LLC Interests shall be sold, assigned, transferred, and conveyed by Sellers to Buyer on an "as-is", "where is", "with all faults" basis, without any representations, warranty guaranty, promise, projection, statement, or prediction whatsoever with respect to the LLC Interests or the Companies, whether oral or written, express or implied, or arising by operation of law, including, without limitation, any warranty of merchantability or fitness for a particular purpose.

**Article III<br> Representations and Warranties of Buyer**

Except as set forth in the correspondingly numbered Sections of the Disclosure Schedules, Buyer represents and warrants to Sellers that the statements contained in this **Article III** are true and correct as of the date hereof.

**Section 3.01** **Organization and Authority of Buyer**. Buyer is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of North Carolina. Buyer has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which Buyer is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by Sellers) this Agreement constitutes a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms. When each other Transaction Document to which Buyer is or will be a party has been duly executed and delivered by Buyer (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Buyer enforceable against it in accordance with its terms, subject to subsequent events of bankruptcy, fraudulent transfer, reorganization, moratorium or similar laws relating to or affecting creditors' rights generally and to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law).

**Section 3.02** **No Conflicts; Consents**. The execution, delivery and performance by Buyer of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the certificate of incorporation, by-laws or other organizational documents of Buyer; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Buyer; or (c) require the consent, notice or other action by any Person under any Contract to which Buyer is a party.

**Section 3.03** **Investment Purpose**. Buyer is acquiring the LLC Interests solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof. Buyer acknowledges that the LLC Interests are not registered under the Securities Act of 1933, as amended (the "**Securities Act**"), or any state securities laws, and that the LLC Interests may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable.

**Section 3.04** **Brokers**. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Buyer.

**Section 3.05** **Legal Proceedings**. There are no Actions pending or, to Buyer's knowledge, threatened against Buyer or any Affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. To the Knowledge of Buyer, no event has occurred or circumstances exist that may give rise or serve as a basis for any such Action.

**Section 3.06** **Financial Ability**. Buyer shall have, as of the Closing and such other applicable times that Buyer is required to make payments pursuant to this Agreement, cash on hand or existing and available lines of credit to provide, in the aggregate, monies sufficient to fund the consummation of the transactions contemplated by this Agreement and satisfy all other costs and expenses arising in connection therewith.

**Article IV<br> Covenants**

**Section 4.01** **Resignations; Withdrawal**. Sellers shall deliver to Buyer written resignations, effective as of the date hereof, of the officers and managers of the Companies set forth in **<u>Exhibit B</u>** hereof. Buyer acknowledges and agrees that the Sellers shall withdraw as members and economic owners of each Company effective as of the Closing and that as of the Closing and thereafter, no Seller has or will have any obligation to make any capital contribution (including any unfunded portion of a prior capital call) to any Company.

**Section 4.02** **Confidentiality**. For a period of three (3) years commencing on the Closing (the "**Restricted Period**"), Sellers shall, and shall cause its Affiliates to, hold, and shall use its commercially reasonable efforts to cause its or their respective Representatives to hold, in confidence any and all proprietary and confidential information concerning the Companies, except to the extent that Sellers can prove that such information (a) is generally available to and known by the public through no fault of Sellers, any of its Affiliates or their respective Representatives or (b) is lawfully acquired by Sellers, any of its Affiliates or their respective Representatives from and after the Closing from sources which are not prohibited from disclosing such information by any obligation. If Sellers or any of its Affiliates or their respective Representatives are compelled to disclose any information by judicial or administrative process or by other requirements of Law, Sellers shall promptly notify Buyer in writing and shall disclose only that portion of such information which Seller is advised by its counsel in writing is legally required to be disclosed, provided that Sellers shall use commercially reasonable efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.

**Section 4.03** **Books and Records**. In order to facilitate the resolution of any claims made against or incurred by either party prior to the Closing, or for any other reasonable purpose, for a period of three (3) years after the Closing, Buyer and Sellers shall: (i) retain the books and records (including personnel files) of the Companies relating to periods prior to the Closing (which books and records shall have been retained by the Companies prior to the Closing) in a manner reasonably consistent with prior practices; and (ii) upon reasonable notice by either party, afford the Representatives of the other party reasonable access (including the right to make, at such party's expense, photocopies), during normal business hours, of such books and records; *provided, however*, that any books and records related to Tax matters shall be retained pursuant to the periods set forth in **Article V**. Neither party shall be obligated to provide the other party with access to any books or records (including personnel files) pursuant to this **Section 4.03** where such access would violate any Law.

**Section 4.04** **Public Announcements**. With respect to the announcement of the Closing, unless otherwise required by applicable Law, including the Exchange Act (based upon the reasonable advice of counsel), no party to this Agreement shall make any public press announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such press announcement. Except with respect to those announcements or communications required by applicable Law, including the Exchange Act, drafts of any such press announcements, filings or disclosures shall be provided to the other party(ies) as soon as reasonably practicable prior to the date on which they are proposed to be publicly released, filed or made, as applicable, and comments shall be due to the other party(ies) as promptly as reasonably practicable following its receipt thereof (but in no event later than two (2) days following receipt). Notwithstanding the foregoing, the parties expressly agree that Buyer and its Affiliates shall be entitled to make a press release in connection with the transactions contemplated hereby, in form and substance reasonably acceptable to Dennis Thompson.

**Section 4.05** **Further Assurances**. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

**Section 4.06** **Non-competition; Non-solicitation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Restricted Period, Sellers shall not, and shall not permit any of their respective Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in the Restricted Business within the Restricted Territory; (ii) have a financial interest in any Person that engages directly or indirectly in the Restricted Business in the Restricted Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or (iii) intentionally interfere, in the service or on behalf of a Restricted Business, in any material respect with the business relationships between the Applicable Companies and any customers or suppliers thereof. Notwithstanding the foregoing, (A) Sellers may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if Sellers, collectively, do not, directly or indirectly, own two percent or more of any class of securities of such Person and (B) the restrictions set forth in this <u>Section 4.06(a)</u> shall not apply to Thompson Family Associates, LLC, ACR Capital Ventures, LLC, or their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Restricted Period, each Seller shall not, and shall not permit any of his, her, or its Affiliates to, directly or indirectly, hire or solicit any Covered Employees or encourage any Covered Employee to leave his or her employment with an Applicable Company. With respect to any current employee or former employee subject to the foregoing in this **Section 4.06(b)**, Sellers or their Affiliates, as applicable, shall have a reasonable opportunity to cure any violation of the no-hire covenant (but not the non-solicitation covenant) with respect to employees other than restaurant managers or general managers following written notice thereof prior to being in breach of this Section. In order to ensure each Seller's compliance with the foregoing, Buyer shall, upon a Seller's request, identify those employees that are no longer employed by such Seller's Applicable Companies. Notwithstanding anything in this Agreement to the contrary, a general recruitment effort (*e.g.*, job posting in a newspaper classified section or online job search website, attendance at a job fair, or similar acts) by a Seller or an Affiliate of a Seller shall not be considered the solicitation or attempted solicitation of any then-current or former employees of any Company unless such recruitment efforts are targeted or specifically directed at one or more then-current or former employees of one or more Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Sellers acknowledge that a breach or threatened breach of this **Section 4.06** would give rise to irreparable harm to Buyer, for which monetary damages would not be an adequate remedy, and hereby agree that in the event of a breach or a threatened breach of any such obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to seek equitable relief, including a temporary restraining order, an injunction, specific performance and any other equitable relief that may be available from a court of competent jurisdiction (without any requirement to post bond). In addition to the foregoing, Sellers acknowledge and confirm that Buyer will suffer substantial damages by virtue of any Seller's violation of **Section 4.06(b)** with respect to the Companies' restaurant managers or general managers, including, without limitation, lost expertise, lost goodwill with other employees, search costs and expenses, and inability to find appropriate replacement talent, which damages are impractical and extremely difficult to ascertain and/or calculate accurately, and the proof of which would be burdensome and costly, although such damages are real and meaningful to the Companies and Buyer. Accordingly, in the event that a court of competent jurisdiction renders a final, non-preliminary judgment that a Seller or such Seller's Affiliates have violated **Section 4.06(b)** with respect to a restaurant manager or general manager of an Applicable Company of such Seller, the Sellers severally in accordance with his, hers or its Company Pro Rata Share for such Company, agree to pay to Buyer in a lump sum within ten (10) days following the court's final, non-preliminary judgment therefore liquidated damages, which represent a fair and reasonable estimate of Buyer's and the Companies' foreseeable losses as a result of such violation, and which are not in any way intended to be a penalty, in an amount equal to $50,000 per employee with respect to which a violation has occurred. Sellers acknowledge that their obligation to pay liquidated damages is in addition to, not in lieu of, their other obligations pursuant to this Agreement, at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Sellers acknowledge that the restrictions contained in this **Section 4.06** are reasonable and necessary to protect the legitimate interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated by this Agreement. In the event that any covenant contained in this **Section 4.06** should ever be adjudicated to exceed the time, geographic, product or service, or other limitations permitted by applicable Law in any jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by applicable Law. The covenants contained in this **Section 4.06** and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Agreement to the contrary, if an Affiliate of a Seller may take an action that is otherwise prohibited by this **Section 4.06** under such Affiliate's governing documents without the consent or approval of such Seller (or any director or manager of such Affiliate appointed solely by such Seller or any other Affiliate of such Seller), then such Seller shall be deemed to have not permitted such Affiliate to take such action unless Seller (or any director or manager of such Affiliate appointed solely by such Seller or any other Affiliate of such Seller) affirmatively approves of or consents to such action.

**Section 4.07** **Release of the Companies.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a material inducement to Buyer's willingness to enter into and perform this Agreement and to purchase the LLC Interests pursuant to the terms of this Agreement for the consideration to be paid or provided to Sellers in connection with such purchase, effective as of the Closing Date, Sellers, on behalf of himself, herself or itself and each of his, her or its respective Affiliates and representatives, hereby releases and forever discharges Buyer, each Company and its respective successors and assigns (individually, a "**Company Releasee**" and collectively, the "**Company Releasees**") from any and all actions, orders, obligations, contracts, agreements, debts and liabilities whatsoever, whether known or unknown, suspected or unsuspected, both at law and in equity, which Sellers or any of their respective representatives now has, have ever had or may hereafter have against the respective Company Releasees arising contemporaneously with or prior to the Closing Date or on account of or arising out of any matter, cause or event occurring contemporaneously with or prior to the Closing Date, including, but not limited to, any rights to indemnification or reimbursement from the Company, whether pursuant to their respective charter, operating agreement or any other charter documents, contract or otherwise and whether or not relating to claims pending on, or asserted after, the Closing Date; provided, however, that nothing contained herein shall operate to release any obligation of Buyer arising under this Agreement and the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sellers hereby irrevocably covenant to refrain from, directly or indirectly, asserting any claim or demand, or commencing, instituting or causing to be commenced, any proceeding of any kind against any Company Releasee, based upon any matter purported to be released hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without in any way limiting any of the rights and remedies otherwise available to any Company Releasee, Sellers shall indemnify and hold harmless each Company Releasee from and against all loss, liability, claim, damage (including incidental and consequential damages) or expense (including costs of investigation and defense and reasonable attorney's fees) whether or not involving third party claims, arising directly or indirectly from or in connection with the assertion by or on behalf of Sellers of any claim or other matter purported to be released pursuant to this **Section 4.07**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that any provision of this **Section 4.07** is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this **Section 4.07** will remain in full force and effect. Any provision of this **Section 4.07** held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

**Section 4.08** **Final Distributions**. In addition to the Purchase Price, following the Closing and on or before March 15, 2023, the Sellers shall receive a distribution from each of their respective Applicable Companies of their respective pro rata portion of the operating profit for the period of the 2023 fiscal year of such Company ending on the Closing Date; provided that (a) no such distribution shall me made to the members of BDMV, (b) the operating profit calculation for all Companies other than BDMV and BDWS shall require that $30,000 of cash remain in each of such Companies and (c) the operating profit calculation for BDWS shall require that $3,000 of cash remain in such Company. Operating profit shall otherwise be calculated in the same manner as previously calculated by such Company in the ordinary course of business.

**Article V<br> Tax matters**

**Section 5.01** **Tax Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without the prior written consent of Buyer, Sellers shall not, to the extent it may affect, or relate to the Companies make, change or rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any action, omit to take any action or enter into any other transaction that would have the effect of increasing the Tax liability or reducing the basis of any Tax asset of Buyer or any Company in respect of any Post-Closing Tax Period. Sellers agree that Buyer is to have no liability for any Tax resulting from any action of Sellers, its Affiliates or any of their respective Representatives, and agrees to indemnify and hold harmless Buyer (and, after the Closing Date, the Companies) against any such Tax or basis reduction of any Tax asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents (including any real property transfer Tax and any other similar Tax) shall be borne and paid by Sellers when due. Sellers shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer shall prepare and file (or cause to be prepared and filed) all Tax Returns of the Companies for any taxable periods ending on or prior to the Closing Date which are due after the Closing Date. Any non-income Tax Return prepared by either party pursuant to this **Section 5.01(c)** shall be prepared in a manner consistent with past practice (unless otherwise required by Law). Any party preparing a Tax Return pursuant to this **Section 5.01(c)** shall provide the other party a reasonable opportunity to review and comment on such Tax Return. Any disagreement between Buyer and Sellers with respect to a Tax Return which cannot be timely resolved shall be resolved the Accountants. Buyer agrees that the Tax Returns of any Company filed with respect to a Pre-Closing Tax Period and any Straddle Period which are filed after the Closing Date, and any prior Tax Returns of any Company, shall not be amended without the consent of Sellers, which consent shall not be unreasonably withheld, except to the extent necessary to comply with Law and after delivering prior written notice of such amendment to Sellers.

**Section 5.02** **Straddle Period**. Notwithstanding the provisions of **Section 5.01(c)**, in the case of Taxes that are required to be paid with respect to a taxable period that begins before and ends after the Closing Date (each such period, a "**Straddle Period**"), if any, the portion of any such Taxes that are treated as Pre-Closing Taxes for purposes of this Agreement shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital or net worth, (ii) imposed in connection with the sale, transfer or assignment of property, or (iii) required to be withheld, deemed equal to the amount which would be payable if the taxable year ended with the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of other Taxes, deemed to be the amount of such Taxes for the entire period multiplied by a fraction the numerator of which is the number of days in the period ending on the Closing Date and the denominator of which is the number of days in the entire period.

**Section 5.03** **Tax Treatment; Purchase Price Allocation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Tax Treatment**. The parties hereto agree that, consistent with Revenue Ruling 99-6, Situation 1, the purchase and sale of the LLC Interests as contemplated by this Agreement shall together be treated, for U.S. federal and state income tax purposes, as a sale of the LLC Interests by Sellers and a purchase of the assets of the Companies. The parties hereto agree to report the transactions for U.S. federal and state income tax purposes in all respects consistently with such treatment and shall not take a position inconsistent with such treatment on any Tax Return or any Tax-related legal proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **754 Election**. At Buyer's option and as specified by Buyer, the Companies and Sellers (if necessary) shall join with Buyer in making a timely election under Section 754 of the Code (and any corresponding election under state and local Law) with respect to the deemed purchase and sale of the membership interests of such Subsidiaries hereunder (collectively, a "**Section 754 Election**"). Buyer shall pay any Tax attributable to the making of the Section 754 Election and Buyer shall indemnify Sellers against any adverse consequences arising out of any failure to pay any such Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Allocation of Purchase Price**. Sellers and Buyer agree that the Purchase Price and the Liabilities of the Companies (plus other relevant items) shall be allocated among the assets of the Companies for all purposes (including Tax and financial accounting) as shown on the Allocation Schedule, attached hereto as **<u>Exhibit C</u>** (the "**Allocation Schedule**").

**Section 5.04** **Contests**. Buyer agrees to give written notice to Sellers of the receipt of any written notice by any Company or Buyer which involves the assertion of any claim, or the commencement of any Action, in respect of which an indemnity may be sought by Buyer pursuant to this **Article V** (a "**Tax Claim**"). Buyer shall be entitled to control the contest or resolution of any Tax Claim.

**Section 5.05** **Cooperation and Exchange of Information**. Sellers and Buyer shall provide each other with such cooperation and information as either of them reasonably may request of the other in filing any Tax Return pursuant to this **Article V** or in connection with any audit or other proceeding in respect of Taxes of the Companies. Such cooperation and information shall include providing copies of relevant Tax Returns or portions thereof, together with accompanying schedules, related work papers and documents relating to rulings or other determinations by tax authorities. Each of Sellers and Buyer shall retain all Tax Returns, schedules and work papers, records and other documents in its possession relating to Tax matters of the Companies for any taxable period beginning before the Closing Date until the expiration of the statute of limitations of the taxable periods to which such Tax Returns and other documents relate, without regard to extensions except to the extent notified by the other party in writing of such extensions for the respective Tax periods. Prior to transferring, destroying or discarding any Tax Returns, schedules and work papers, records and other documents in its possession relating to Tax matters of the Companies for any taxable period beginning before the Closing Date, Sellers or Buyer (as the case may be) shall provide the other party with reasonable written notice and offer the other party the opportunity to take custody of such materials.

**Article VI<br> Closing Deliveries**

**Section 6.01** **Sellers' Deliveries**. At the Closing, Sellers shall deliver to Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Copies of all approvals, consents, waivers and authorizations that are listed on **Section 2.04** of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executed copies of the Transaction Documents (other than this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An executed certificate from Sellers certifying that attached thereto are true and complete copies of all resolutions adopted by the board of managers and/or members of Seller authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executed copies of the resignations contemplated by **Section 4.01**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) An executed certificate pursuant to Treasury Regulations Section 1.1445-2(b) that such Seller is not a foreign person within the meaning of Section 1445 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Such other documents or instruments as Buyer reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

**Section 6.02** **Buyer's Deliveries**. At the Closing, Buyer shall deliver, or cause to be delivered, to Sellers the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executed copies of the Transaction Documents (other than this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A certificate from Buyer certifying that attached thereto are true and complete copies of all resolutions adopted by the board of managers and/or sole member of Buyer authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Purchase Price.

**Article VII<br> Indemnification**

**Section 7.01** **Survival**. Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall survive the Closing and shall remain in full force and effect until the date that is one year after the Closing Date. All covenants and agreements of the parties contained herein shall survive the Closing indefinitely or for the period explicitly specified therein, as applicable. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.

**Section 7.02** **Indemnification by Sellers**. Subject to the other terms and conditions of this **Article VII**, Sellers shall severally (based on each Seller's Pro Rata Share) indemnify and defend Buyer and its Affiliates (including the Companies) and their respective Representatives (collectively, the "**Buyer Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, with respect to or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of Sellers contained in this Agreement or in any certificate or instrument delivered by or on behalf of Sellers pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Sellers pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Third Party Claim to the extent arising from or relating to events, circumstances, actions, omissions, or liabilities occurring or existing on or before the Closing Date.

**Section 7.03** **Indemnification by Buyer**. Subject to the other terms and conditions of this **Article VII**, Buyer shall indemnify and defend Sellers and its Affiliates and their respective Representatives (collectively, the "**Seller Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, Seller Indemnitees based upon, arising out of, with respect to or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or in any certificate or instrument delivered by or on behalf of Buyer pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Third Party Claim to the extent arising from or relating to events, circumstances, actions, omissions, or liabilities occurring or existing after the Closing Date.

**Section 7.04** **Certain Limitations**. The indemnification provided for in **Section 7.02** and **Section 7.03** shall be subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Solely for purposes of calculating the amount of any Loss resulting from a breach of the representations or warranties set forth herein, "materiality" and Material Adverse Effect qualifications shall be disregarded, but such qualifications shall not, for the avoidance of doubt, be disregarded for purposes of determining whether a breach has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Buyer Indemnitees shall be entitled to be indemnified with respect to any claim to the extent that the matter that is the subject of the claim was Known by Buyer as of the Closing. No party shall be obligated to indemnify any other party with respect to any claim that relates to Losses resulting from the passing of or change in any applicable Law or any accounting policy, principle or practice after the Closing Date or any increase in Tax rates in effect on the Closing Date, even if the change or increase has retroactive effect or requires action at a future date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Buyer Indemnitee and Seller Indemnitee will use commercially reasonable efforts to (i) mitigate Losses after becoming aware of any event which could reasonably be expected to give rise to Losses that are indemnifiable hereunder and (ii) seek to recover such Losses under all Alternative Arrangements. Except pursuant to a written settlement agreed to by the Indemnifying Party, no Buyer Indemnitee or Seller Indemnitee that is seeking indemnification from the Indemnifying Party shall waive or release any contractual right to recover from a third party any Losses subject to (or that may be subject to) indemnification hereunder without the prior written consent of the Indemnifying Party. Each Buyer Indemnitee and Seller Indemnitee seeking indemnification hereunder will, and will cause its Affiliates to, cooperate with the Indemnifying Party, at the Indemnifying Party's expense, with respect to any such effort to pursue and collect with respect thereto. For the avoidance of doubt, in the event that a recovery is made under an Alternative Arrangement by any Buyer Indemnitee or Seller Indemnitee with respect to any Losses which have been indemnified hereunder, then a refund equal to the aggregate amount of the recovery (up to the amount paid by the Indemnifying Party hereunder) shall be made promptly to the applicable Indemnifying Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to the Sellers' indemnification obligations hereunder upon a breach of any representation or warranty set forth in **Article II**, (i) any Seller that is treated as having not made such representation or warranty by reason of such Seller not owning an LLC Interest in the Company that was the subject of the breached representation or warranty shall have no indemnification obligations hereunder for any Losses arising from such breach, and (ii) the Pro Rata Shares of the other Sellers shall be adjusted to equal their respective proportionate shares of the Purchase Price paid to all such other Sellers hereunder.

**Section 7.05** **Indemnification Procedures**. The party making a claim under this **Article VII** is referred to as the "**Indemnified Party**", and the party against whom such claims are asserted under this **Article VII** is referred to as the "**Indemnifying Party**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Third Party Claims**. If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing (a "**Third Party Claim**") against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than fifteen (15) calendar days after receipt of such notice of such Third Party Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third Party Claim at the Indemnifying Party's expense and by the Indemnifying Party's own counsel, and the Indemnified Party shall cooperate in good faith in such defense; *provided, that* if the Indemnifying Party is Sellers, such Indemnifying Party shall not have the right to defend or direct the defense of any such Third Party Claim that seeks an injunction or other equitable relief against the Indemnified Party. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to **Section 7.05(b)**, it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying Party's right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party, *provided, that* if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party; or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction for which the Indemnified Party determines counsel is required (as evidenced by an opinion of counsel). If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to **Section 7.05(b)**, pay, compromise, defend such Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third Party Claim. Sellers and Buyer shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available (subject to the provisions of **Section 4.02**) records relating to such Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Settlement of Third Party Claims**. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, not to be unreasonably withheld, conditioned or delayed, except as provided in this **Section 7.05(b)**. If a firm offer is made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within ten (10) days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to **Section 7.05(a)**, it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Direct Claims**. Any Action by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a "**Direct Claim**") shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than thirty days after the Indemnified Party becomes aware of such Direct Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have thirty days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party's investigation by giving such information and assistance (including access to the applicable Company's premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such thirty day period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Tax Claims**. Notwithstanding any other provision of this Agreement, the control of any claim, assertion, event or proceeding in respect of Taxes of any Company shall be governed exclusively by **Article V** hereof.

**Section 7.06** **Payments**. Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this **Article VII**, the Indemnifying Party shall satisfy its obligations within ten (10) Business Days of such final, non-appealable adjudication by wire transfer of immediately available funds. The parties hereto agree that should an Indemnifying Party not make full payment of any such obligations within such ten (10) Business Day period, any amount payable shall accrue interest from and including the date of agreement of the Indemnifying Party or final, non-appealable adjudication to and including the date such payment has been made at a rate per annum equal to fifteen percent (15%).

**Section 7.07** **Tax Treatment of Indemnification Payments**. All indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

**Section 7.08** **Exclusive Remedies**. From and after the completion of the purchase and sale of the LLC Interests the parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this **Article VII**. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective Representatives arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this **Article VII**. Nothing in this **Section 7.08** shall limit any Person's right to seek and obtain any equitable relief to which any Person shall be entitled or to seek any remedy on account of any party's actual fraud.

**Article VIII<br> Miscellaneous**

**Section 8.01** **Expenses**. Except as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

**Section 8.02** **Notices**. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this **Section 8.02**):

---

| | |
|:---|:---|
| If to Sellers: | Dennis L. Thompson<br> 3530 Toringdon Way, Ste. 100<br> Charlotte, North Carolina 28277<br> email: DThompson@rmmanagement.net<br>|
| with a copy to (which does not <br> constitute notice): | Culp Elliott & Carpenter, P.L.L.C.<br> 6801 Carnegie Blvd., Ste. 400<br> Charlotte, North Carolina 28211<br> email: chl@ceclaw.com<br> Attention: Clark Lacy<br>|
| If to Buyer: | Bad Daddy's International, LLC<br> c/o Good Times Restaurants, Inc.<br> 651 Corporate Circle, Suite 200<br> Golden, Colorado 80401<br> email: rzink@gtrestaurants.com<br> Attention: Ryan Zink, Chief Executive Officer<br>|
| with a copy to (which does not <br> constitute notice): | Arnall Golden Gregory LLP<br> 171 17th Street NW, Suite 2100<br> Atlanta, Georgia 30363<br> Facsimile: (404) 873-8151<br> email: sean.fogarty@agg.com<br> Attention: Sean P. Fogarty  |

---

**Section 8.03** **Interpretation**. For purposes of this Agreement, (a) the words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation"; (b) the word "or" is not exclusive; and (c) the words "herein," "hereof," "hereby," "hereto" and "hereunder" refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

**Section 8.04** **Headings**. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 8.05** **Severability**. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

**Section 8.06** **Entire Agreement**. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

**Section 8.07** **Successors and Assigns**. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed; *provided, however*, Buyer may, without the prior written consent of, but upon written notice to, Sellers, assign all or any portion of its rights under this Agreement to one or more of its direct or indirect wholly-owned subsidiaries. No assignment shall relieve the assigning party of any of its obligations hereunder.

**Section 8.08** **No Third-party Beneficiaries**. Except as expressly provided in this Agreement, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

**Section 8.09** **Amendment and Modification; Waiver**. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

**Section 8.10** **Governing Law; Submission to Jurisdiction; Waiver of Jury Trial**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any legal suit, action or proceeding arising out of or based upon this Agreement, the other Transaction Documents or the transactions contemplated hereby or thereby may be instituted in the federal courts of the United States of America or the courts of the State of North Carolina in each case located in the city of Charlotte, North Carolina, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by mail to such party's address set forth herein shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each party acknowledges and agrees that any controversy which may arise under this Agreement or the other Transaction Documents is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement, the other Transaction Documents or the transactions contemplated hereby or thereby. Each party to this Agreement certifies and acknowledges that (i) no representative of any other party has represented, expressly or otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal action, (ii) such party has considered the implications of this waiver, (iii) such party makes this waiver voluntarily, and (iv) such party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this **Section 8.10(c).**

**Section 8.11** **Specific Performance**. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof (including, but not limited to, any breach of this Agreement by Sellers) and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

**Section 8.12** **Counterparts**. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| **Buyer:** | **Buyer:** | **Sellers:** |
| **Bad Daddy's International, LLC** | **Bad Daddy's International, LLC** | |
| By: Good Times Restaurants, Inc., its sole member | By: Good Times Restaurants, Inc., its sole member | */s/ Cov DeRamus* |
|  |  | Covington DeRamus |
| By: | */s/ Ryan Zink* |  |
| Name: Ryan Zink | Name: Ryan Zink |  |
| Its: Chief Executive Officer | Its: Chief Executive Officer | **Thompson Family Associates, LLC** |
|  |  | */s/ Dennis Thompson* |
|  |  | Name: |
|  |  | Its: |
|  |  | */s/ Vicki Ponce* |
|  |  | Vicki T. Ponce |
|  |  | **RFM Ventures LLC** |
|  |  | */s/ Dr. Richard Miller* |
|  |  | Name: |
|  |  | Its: |
|  |  | */s/ Jim Verney* |
|  |  | Jim Verney |
|  |  | */s/ Dr. Richard Miller* |
|  |  | Dr. Richard Miller |
|  |  | */s/ James Abbott* |
|  |  | James Abbott |
|  |  | */s/ Bill Dukes* |
|  |  | Bill Dukes |
|  |  | **ACR Capital Ventures, LLC** |
|  |  | */s/ Ashley Richards* |
|  |  | Name: |
|  |  | Its: |

---

[signature page]

**EXHIBIT A**

**Defined Terms**

"**Action**" means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.

"**Affiliate**" of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term "control" (including the terms "controlled by" and "under common control with") means the ownership of fifty percent (50%) or more of the voting securities of a Person or possession, directly or indirectly, of the power to elect or appoint fifty percent (50%) or more of the directors or managers of a Person, whether through the ownership of voting securities, by contract or otherwise.

"**Allocation Schedule**" has the meaning set forth in **Section 5.03(c)**.

"**Alternative Arrangement**" means any Tax Benefit or insurance policy, indemnity or reimbursement arrangement, or Contract pursuant to which any Seller Indemnitee or Buyer Indemnitee or their Affiliates is a party or under which it has rights.

"**Applicable Companies**" means, with respect to each Seller, the Company or Companies whose LLC Interests such Seller is selling to Buyer under this Agreement.

"**Business Day**" means any day except Saturday, Sunday or any other day on which commercial banks located in the State of Colorado or the State of North Carolina are authorized or required by Law to be closed for business.

"**Buyer Indemnitees**" has the meaning set forth in **Section 7.02**.

"**Cash**" means, with respect to the Companies, the amount of cash and bank deposits as reflected in the Companies' bank and money market account statements and shall include cash equivalents, such as money market funds, money market instruments and any demand deposits and marketable securities, calculated in accordance with GAAP on a basis consistent with the preparation of the financial statements of the Companies.

"**Closing**" has the meaning set forth in **Section 1.03**.

"**Closing Date**" has the meaning set forth in **Section 1.03**.

"**Code**" means the Internal Revenue Code of 1986, as amended.

"**Company Pro Rata Share**" means, with respect to each Seller and each Company, the percentage equal to the portion of the Purchase Price allocable to the LLC Interests of such Company and payable to such Seller, divided by the total Purchase Price payable to all Sellers for LLC Interests of such Company. Each Seller's Company Pro Rata Share in each Company is set forth in <u>Schedule A</u>.

"**Company Releasee**" has the meaning set forth in **Section 4.07(a)**.

"**Contracts**" means all contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures and all other agreements, commitments and legally binding arrangements, whether written or oral.

"**Covered Employees**" means, with respect to each Seller, the then-current employee of the Applicable Companies for such Seller or any former employee of such Applicable Companies (who was employed by such an Applicable Company within the 12 months prior to such attempted hiring or solicitation with respect to salaried employees and within the 6 months prior to such attempted hiring or solicitation with respect to hourly employees).

"**Direct Claim**" has the meaning set forth in **Section 7.05(c)**.

"**Disclosure Schedules**" means the Disclosure Schedules delivered by Sellers and Buyer concurrently with the execution and delivery of this Agreement.

"**Encumbrance**" means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option, security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended

"**GAAP**" means United States generally accepted accounting principles in effect from time to time.

"**Governmental Authority**" means any federal, state or local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

"**Governmental Order**" means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.

"**Indemnified Party**" has the meaning set forth in **Section 7.05**.

"**Indemnifying Party**" has the meaning set forth in **Section 7.05**.

"**Knowledge of Buyer**" or any other similar knowledge qualification, means the actual knowledge of Ryan Zink.

"**Knowledge of Seller**" or any other similar knowledge qualification, means, with respect to each Seller, the actual knowledge of such Seller. "**Knowledge of Sellers**" means the Knowledge of all Sellers.

"**Law**" means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority.

"**Liabilities**" means liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise.

"**LLC Interests**" has the meaning set forth in the recitals.

"**Losses**" means losses, damages, liabilities, deficiencies, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys' fees and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers reasonably incurred by an Indemnified Party in connection with any claim, action, suit or proceeding in respect of a matter for which an Indemnified Party is entitled to be indemnified against hereunder, in each case, net of any Tax Benefits and other available third party recoveries under any Alternative Arrangement.

"**Material Adverse Effect**" means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or employee relations of any Company, taken as a whole, or (b) the ability of the Sellers to consummate the transactions contemplated hereby on a timely basis.

"**Permits**" means all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities.

"**Permitted Encumbrances**" has the meaning set forth in **Section 2.06(a)**.

"**Permitted Interest Encumbrances**" means Encumbrances set forth in the operating agreements of the Companies (copies of which have been made available to Buyer) and statutory Encumbrances pursuant to the North Carolina Limited Liability Company Act, G.S. 57D-1-01, *et seq*.

"**Person**" means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

"**Pro Rata Share**" means, with respect to each Seller, the percentage equal to the portion of the Purchase Price payable to such Seller, divided by the total Purchase Price payable to all Sellers. Each Seller's Pro Rata Share is set forth in <u>Schedule A</u>.

"**Purchase Price**" has the meaning set forth in **Section 1.02**.

"**Real Property**" means the real property owned, leased or subleased by each Company, together with all buildings, structures and facilities located thereon.

"**Representative**" means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents of such Person.

"**Restricted Business**" means any full service restaurant business or concept in which (i) at least fifteen percent (15%) of its menu items are hamburgers or (ii) the word "burger" is included in name of the restaurant business or concept, but expressly excluding any restaurant business or concept in which Sellers holds an ownership interest as of the Closing Date.

"**Restricted Period**" has the meaning set forth in **Section 4.02**.

"**Restricted Territory**" means, with respect to each Seller and such Seller's Affiliates, the area within a five (5) mile radius of the current location of each Applicable Company for such Seller. For this purpose, the Companies' current locations are as follows:

---

| | |
|:---|:---|
| <u>Company</u> | <u>Current Location</u> |
| BDWS | 504 Hanes Mall Blvd, Winston-Salem, NC 27103 |
| BDF | 1800 Skibo Rd #332, Fayetteville, NC 28303 |
| BDG | 709 Greenville Blvd SE #100, Greenville, NC 27858 |
| BDMV | 1922 Augusta St #100, Greenville, SC 29605 |
| BDWC | 4522 W Wendover Ave #101, Greensboro, NC 27409 |

---

"**Section 754 Election**" has the meaning set forth in **Section 5.03(b)**.

"**Securities Act**" has the meaning set forth in **Section 3.03**.

"**Seller Indemnitees**" has the meaning set forth in **Section 7.03**.

"**Straddle Period**" has the meaning set forth in **Section 5.02**.

"**Taxes**" means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties.

"**Tax Benefit**" means any refund or credit of Taxes paid or reduction in the amount of Taxes that otherwise would have been paid, in each case, computed at the highest marginal tax rates applicable to the recipient of such benefit.

"**Tax Claim**" has the meaning set forth in **Section 5.04**.

"**Tax Return**" means any return, declaration, report, claim for refund, information return or statement or other document relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

"**Third Party Claim**" has the meaning set forth in **Section 7.05(a)**.

"**Transaction Documents**" means this Agreement together with all other documents to be provided at or with respect to the Closing in connection with the transactions contemplated herein.

## Exhibit 10.2

**Exhibit 10.2**

**EIGHTH AMENDMENT TO CREDIT AGREEMENT**

THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT (this "<u>Amendment</u>"), dated January 24, 2023, is by and among GOOD TIMES RESTAURANTS INC., a Nevada corporation (the "<u>Borrower</u>"), the Guarantors, the Lenders and CADENCE BANK, as Administrative Agent (in such capacity, the "<u>Administrative Agent</u>").

**W I T N E S S E T H**

**WHEREAS**, the Borrower, the Guarantors, the Lenders and the Administrative Agent are parties to that certain Credit Agreement, dated September 8, 2016 (as amended by that certain First Amendment to Credit Agreement, dated September 11, 2017, that certain Second Amendment to Credit Agreement, dated as of October 31, 2018, that certain Third Amendment to Credit Agreement, dated as of February 21, 2019, that certain Fourth Amendment to Credit Agreement, dated as of December 9, 2019, that certain Fifth Amendment to Credit Agreement dated as of January 8, 2021, that certain Sixth Amendment to Credit Agreement dated as of August 12, 2021, that certain Seventh Amendment to Credit Agreement dated as of January 31, 2022 and as further amended, modified, extended, restated, replaced, or supplemented from time to time, the "<u>Credit Agreement</u>"; capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement);

**WHEREAS**, the Borrower has informed the Administrative Agent that Bad Daddy's International LLC ("BDI") intends to enter into certain acquisition agreements pursuant to which BDI shall acquire (i) 76.7980% of the Equity Interests of Bad Daddy's Burger Bar of Winston-Salem, LLC ("<u>BD Winston</u>"), (ii) 50.0000% of the Equity Interests of Bad Daddy's of Fayetteville, LLC ("<u>BD Fayetteville</u>"), (iii) 42.1000% Equity Interests of BD of Greenville, LLC ("<u>BD Greenville</u>"), (iv) 49.0000% of the Equity Interests of BD of Wendover Commons, LLC ("<u>BD Wendover</u>") and (v) 24.6591% Equity Interests of BD of McDaniel Village, LLC ("<u>BD McDaniel</u>"; collectively with BD Winston, BD Fayetteville, BD Greenville and BD Wendover, the "<u>2023 JVs</u>") not previously owned by BDI, such that, after giving effect thereto, the 2023 JVs became wholly-owned Subsidiaries of BDI (the "<u>2023 JV Acquisitions</u>");

**WHEREAS,** the Loan Parties have requested that the Lenders (x) consent to the 2023 JV Acquisitions and (y) make certain amendments to the Credit Agreement as set forth herein; and

**WHEREAS**, the Lenders hereby (x) consent to the 2023 JV Acquisitions and (y) agree to amend the Credit Agreement, in each case, subject to the terms set forth herein.

**NOW, THEREFORE**, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I**

**AMENDMENTS TO CREDIT AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 <u>Amendments to Credit Agreement</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The definition of "<u>Consolidated EBITDA</u>" in Section 1.01 of the Credit Agreement is hereby amended inserting the following new sentence at the end thereof:

Notwithstanding the foregoing, Consolidated EBITDA for any period which includes the fiscal quarter ending on or about (1) June 28, 2022 shall be deemed to include $206,823 in connection with the 2023 JV Acquisitions, (2) September 27, 2022 shall be deemed to include $200,994 in connection with the 2023 JV Acquisitions, (3) December 27, 2022 shall be deemed to include $221,370 in connection with the 2023 JV Acquisitions and (4) March 28, 2023 shall be deemed to include $28,917 in connection with the 2023 JV Acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The definition of "Excluded Subsidiary" in Section 1.01 of the Credit Agreement is hereby amended inserting the following new sentence at the end thereof:

"<u>Excluded Subsidiary</u>" (a) FAST Restaurants Co-Development Limited Partnership, (b) [RESERVED], (c) [RESERVED], (d) Bad Daddy's Burger Bar of Winston-Salem, LLC, (e) Bad Daddy's of Fayetteville, LLC, (f) BD of Greenville, LLC, (g) BD of Wendover Commons, LLC, (h) BD of McDaniel Village, LLC and (i) any other Subsidiary of the Loan Parties that is a joint venture any portion of the Equity Interests of which are held by a third party, unless consent of the third party to such Subsidiary guaranteeing the Obligations is obtained; <u>provided</u> that, following the consummation of the 2023 JV Acquisitions and the joinder of the 2023 JVs pursuant to <u>Section 6.12(b)</u> herein, Bad Daddy's Burger Bar of Winston-Salem, LLC, Bad Daddy's of Fayetteville, LLC BD of Greenville, LLC, BD of Wendover Commons, LLC, and BD of McDaniel Village, LLC shall no longer be deemed to be Excluded Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The definition of "<u>Maturity Date</u>" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

"<u>Maturity Date</u>" means April 30, 2023; <u>provided</u>, <u>however</u>, that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Section 1.01 of the Credit Agreement is hereby amended by inserting the following new definitions in the appropriate alphabetical order therein:

"<u>2023 JV Acquisitions</u>" means the acquisitions made by Bad Daddy's International LLC, following the Eighth Amendment Effective Date, of (i) 76.7980% of the Equity Interests of Bad Daddy's Burger Bar of Winston-Salem, LLC, (ii) 50.0000% of the Equity Interests of Bad Daddy's of Fayetteville, LLC, (iii) 42.1000% Equity Interests of BD of Greenville, LLC, (iv) 49.0000% of the Equity Interests of BD of Wendover Commons, LLC and (v) 24.6591% Equity Interests of BD of McDaniel Village, LLC, each not previously owned by Bad Daddy's International LLC, such that, after giving effect thereto, each of the foregoing became wholly-owned Subsidiaries of Bad Daddy's International LLC.

"<u>2023 JVs</u>" means (i) Bad Daddy's Burger Bar of Winston-Salem, LLC, a North Carolina limited liability company, (ii) Bad Daddy's of Fayetteville, LLC, a North Carolina limited liability company, (iii) BD of Greenville, LLC, a North Carolina limited liability company, (iv) BD of Wendover Commons, LLC, a North Carolina limited liability company, and (v) BD of McDaniel Village, LLC, a South Carolina limited liability company.

"<u>Eighth Amendment Effective Date</u>" means January 24, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Section 6.12 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Covenant to Guarantee Obligations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Loan Parties will cause each of their Subsidiaries (other than an Excluded Subsidiary) whether newly formed, after acquired or otherwise existing to promptly (and in any event within thirty (30) days after such Subsidiary is formed or acquired (or such longer period of time as agreed to by the Administrative Agent in its sole discretion)) become a Guarantor hereunder by way of execution of a Joinder Agreement or such other joinder documents as the Administrative Agent shall deem appropriate for such purpose; <u>provided</u>, <u>however</u>, no Foreign Subsidiary shall be required to become a Guarantor to the extent such Guaranty would result in a material adverse tax consequence for the Borrower. In connection therewith, the Loan Parties shall give notice to the Administrative Agent not less than ten (10) days prior to creating a Subsidiary (or such shorter period of time as agreed to by the Administrative Agent in its sole discretion), or acquiring the Equity Interests of any other Person. In connection with the foregoing, the Loan Parties shall deliver to the Administrative Agent, with respect to each new Guarantor to the extent applicable, substantially the same documentation required pursuant to <u>Sections 4.01(b)</u>, <u>(c)</u>, <u>(e)</u> and <u>(f)</u> and <u>6.13</u> and such other documents or agreements as the Administrative Agent may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within thirty (30) days of the Eighth Amendment Effective Date (or such longer period of time as agreed to by the Administrative Agent in its sole discretion), the Loan Parties shall cause each of the 2023 JVs to become a Guarantor hereunder and provide (or cause to be provided) to the Administrative Agent the following, in each case in form and substance satisfactory to the Administrative Agent (along with any other documents as the Administrative Agent shall deem appropriate for such purpose):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Joinder Agreement duly executed by each of the 2023 JVs, the Borrower and the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) searches of UCC filings in the jurisdiction of incorporation or formation, as applicable, of each of the 2023 JVs, (B) copies of the financing statements on file in such jurisdictions and evidence that no Liens exist other than Permitted Liens, and (C) tax lien, judgment and bankruptcy searches;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) searches of ownership of Intellectual Property in the appropriate governmental offices and such patent/trademark/copyright filings as requested by the Administrative Agent in order to perfect the Administrative Agent's security interest in the Intellectual Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) completed UCC financing statements for each appropriate jurisdiction as is necessary, in the Administrative Agent's sole discretion, to perfect the Administrative Agent's security interest in the Collateral with respect to each of the 2023 JVs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Pledged Equity with respect to each of the 2023 JVs (to the extent such Pledged Equity is certificated); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the extent required to be delivered, filed, registered or recorded pursuant to the terms and conditions of the Collateral Documents, all instruments, documents and chattel paper in the possession of any of the 2023 JVs, together with allonges or assignments as may be necessary or appropriate to create and perfect the Administrative Agent's and the Lenders' security interest in the Collateral with respect to each of the 2023 JVs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) an officer's certificate dated as of the date hereof, executed by a Responsible Officer of each of the 2023 JVs, certifying as to the Organization Documents of each of the 2023 JVs (which, to the extent filed with a Governmental Authority, shall be certified as of a recent date by such Governmental Authority), the resolutions of the governing body of each of the 2023 JVs, the good standing, existence or its equivalent of each of the 2023 JVs and of the incumbency (including specimen signatures) of the Responsible Officers of each of the 2023 JVs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to the extent requested by the Administrative Agent, an opinion or opinions of counsel for the Loan Parties, addressed to the Administrative Agent and the Lenders, with respect to the joinder of the 2023 JVs.

**ARTICLE II**

**CONSENT TO JV ACQUISITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 <u>Consent to JV Acquisitions</u>.** The Administrative Agent and the Lenders hereby consent to the 2023 JV Acquisitions; <u>provided</u> that, it is understood and agreed that, within thirty (30) days of the consummation of each of the 2023 JV Acquisitions, the Borrower shall cause each of the 2023 JVs to become a Guarantor under the Credit Agreement by way of execution of a Joinder Agreement pursuant to Section 6.12(b) of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 <u>Consent Limitations</u>**. This consent shall be effective only to the extent specifically set forth herein and shall not be construed as a consent or waiver to any breach or default other than as specifically consented to or waived herein or as a consent to or waiver of any breach or default of which the Administrative Agent or any Lender has not been informed by the Borrower. This consent shall not operate as a consent to any other action or inaction by the Borrower or any other Loan Party or as a waiver of any right, power, or remedy of any Lender or the Administrative Agent under, or any provision contained in, the Credit Agreement except as specifically provided herein. Except to the extent specifically provided to the contrary in this letter, all terms and conditions of the Credit Agreement shall remain in full force and effect, without modification or limitation.

**ARTICLE IIII**

**CONDITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 <u>Closing Conditions</u>**. This Amendment shall be deemed effective as of the date set forth above (the "<u>Eighth Amendment Effective Date</u>") upon receipt by the Administrative Agent of a copy of this Amendment duly executed by each of the Borrower, the Guarantors, the Administrative Agent and the Lenders.

**ARTICLE IV<br> MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 <u>Amended Terms</u>**. On and after the Eighth Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 <u>Representations and Warranties of the Loan Parties</u>**. Each of the Loan Parties represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan Party has all requisite power and authority and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Amendment in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance by each Loan Party of this Amendment have been duly authorized by all necessary corporate or other organizational action and constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Loan Parties of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The representations and warranties set forth in the Loan Documents are true and correct in all material respects as of the date hereof (except for those that are qualified by materiality, which are true and correct in all respects).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No event has occurred and is continuing which constitutes a Default or an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Administrative Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Collateral Documents and prior to all Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Obligations of the Loan Parties are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 <u>Reaffirmation of Obligations</u>**. Each Loan Party hereby ratifies the Credit Agreement and each other Loan Document and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement and each other Loan Document and (b) that it is responsible for the observance and full performance of its respective obligations under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 <u>Loan Document</u>**. This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 <u>Expenses</u>**. The Loan Parties agree to pay all reasonable costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Administrative Agent's legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 <u>Entirety</u>**. This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7 <u>Counterparts; Telecopy</u>**. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging means (e.g., "pdf" or "tif") shall be effective as delivery of a manually executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8 <u>GOVERNING LAW</u>. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 <u>Successors and Assigns</u>**. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10 <u>Consent to Jurisdiction; Service of Process; Waiver of Jury Trial</u>**. The jurisdiction, services of process and waiver of jury trial provisions set forth in Sections 11.14 and 11.15 of the Credit Agreement are hereby incorporated by reference, *mutatis mutandis*.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

---

| | | |
|:---|:---|:---|
| <u>BORROWER</u>: | GOOD TIMES RESTAURANTS INC., |  |
|  | a Nevada corporation |  |
|  | */s/ Ryan M. Zink* |  |
|  | Name: Ryan M. Zink |  |
|  | Title: Chief Executive Officer |  |
| <u>GUARANTORS</u>: | GOOD TIMES DRIVE THRU INC., |  |
|  | a Colorado corporation |  |
|  | */s/ Ryan M. Zink* |  |
|  | Name: Ryan M. Zink |  |
|  | Title: Chief Executive Officer |  |
|  | BD OF COLORADO LLC, |  |
|  | a Colorado limited liability company |  |
|  | By: GOOD TIMES RESTAURANTS INC., |  |
|  | a Nevada corporation, its manager |  |
|  | */s/ Ryan M. Zink* | |
|  | Name: Ryan M. Zink |  |
|  | Title: Chief Executive Officer |  |

---

GOOD TIMES RESTAURANTS INC.

EIGHTH AMENDMENT TO CREDIT AGREEMENT

---

| |
|:---|
| BAD DADDY'S FRANCHISE DEVELOPMENT, LLC, |
| a North Carolina limited liability company |
| By: BAD DADDY'S INTERNATIONAL, LLC, |
| a North Carolina limited liability company, its member |
| By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its sole member |
| */s/ Ryan M. Zink* |
| Name: Ryan M. Zink |
| Title: Chief Executive Officer |
| By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its member |
| */s/ Ryan M. Zink* |
| Name: Ryan M. Zink |
| Title: Chief Executive Officer |
| BAD DADDY'S INTERNATIONAL, LLC, |
| a North Carolina limited liability company |
| By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its sole member |
| */s/ Ryan M. Zink* |
| Name: Ryan M. Zink |
| Title: Chief Executive Officer |

---

GOOD TIMES RESTAURANTS INC.

EIGHTH AMENDMENT TO CREDIT AGREEMENT

---

| |
|:---|
| BAD DADDY'S BURGER BAR, LLC, |
| a North Carolina limited liability company |
| By: BAD DADDY'S INTERNATIONAL, LLC, |
| a North Carolina limited liability company, its sole member |
| By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its sole member |
| */s/ Ryan M. Zink* |
| Name: Ryan M. Zink |
| Title: Chief Executive Officer |
| BAD DADDY'S BURGER BAR OF BALLANTYNE, LLC, |
| a North Carolina limited liability company |
| By: BAD DADDY'S INTERNATIONAL, LLC, |
| a North Carolina limited liability company, its sole member |
| By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its sole member |
| */s/ Ryan M. Zink* |
| Name: Ryan M. Zink |
| Title: Chief Executive Officer |
| BAD DADDY'S BURGER BAR OF BIRKDALE, LLC, |
| a North Carolina limited liability company |
| By: BAD DADDY'S INTERNATIONAL, LLC, |
| a North Carolina limited liability company, its sole member |
| By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its sole member |
| */s/ Ryan M. Zink* |
| Name: Ryan M. Zink |
| Title: Chief Executive Officer |

---

GOOD TIMES RESTAURANTS INC.

EIGHTH AMENDMENT TO CREDIT AGREEMENT

---

| | |
|:---|:---|
| BAD DADDY'S BURGER BAR OF MOORESVILLE, LLC, | BAD DADDY'S BURGER BAR OF MOORESVILLE, LLC, |
| a North Carolina limited liability company | a North Carolina limited liability company |
| By: BAD DADDY'S INTERNATIONAL, LLC, | By: BAD DADDY'S INTERNATIONAL, LLC, |
| a North Carolina limited liability company, its sole member | a North Carolina limited liability company, its sole member |
| By: GOOD TIMES RESTAURANTS INC., | By: GOOD TIMES RESTAURANTS INC., |
| a Nevada corporation, its sole member | a Nevada corporation, its sole member |
| By: | */s/ Ryan M. Zink* |
| Name: Ryan M. Zink | Name: Ryan M. Zink |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

GOOD TIMES RESTAURANTS INC.

EIGHTH AMENDMENT TO CREDIT AGREEMENT

---

| | | |
|:---|:---|:---|
| ADMINISTRATIVE |  |  |
| AGENT: | CADENCE BANK | CADENCE BANK |
|  | By: | */s/ Henry Loong* |
|  | Name: Henry Loong | Name: Henry Loong |
|  | Title: Vice President | Title: Vice President |
| LENDERS: | CADENCE BANK | CADENCE BANK |
|  | By: | */s/ Henry Loong* |
|  | Name: Henry Loong | Name: Henry Loong |
|  | Title: Vice President | Title: Vice President |

---

GOOD TIMES RESTAURANTS INC.

EIGHTH AMENDMENT TO CREDIT AGREEMENT

## Exhibit 99.1

**Exhibit 99.1**

<u>FOR IMMEDIATE RELEASE</u> <br> January 30, 2023 Nasdaq Capital Markets - GTIM

**GOOD TIMES RESTAURANTS ANNOUNCES THE PURCHASE OF MEMBERSHIP INTERESTS FROM ITS PARTNERS IN FIVE BAD DADDY'S BURGER BAR RESTAURANTS**

(DENVER, CO) Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy's Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported its purchase of the limited liability company membership interests from its partners in five previous joint-venture Bad Daddy's restaurants in Winston-Salem, Fayetteville, Greenville and Greensboro, North Carolina and Greenville, South Carolina. Each joint-venture entity is now wholly-owned by the Company. The aggregate cash purchase price of approximately $4.4 million was funded out of cash reserves.

The Winston-Salem location brings a superior culture of hospitality and exceeding guest expectations while Greensboro is best known for a vibrant, energetic, and exciting atmosphere and in Fayetteville, it's our honor to serve our military families. Greenville, North Carolina has a local, loyal, smalltown community feel and in Greenville, South Carolina we are "the Burger Boutique".

Ryan M. Zink, the Company's Chief Executive Officer, said "We are really excited about officially having full ownership of these locations. We have operated Winston-Salem since 2015 and the other four since their openings in 2017 and 2018 so they are already family as former joint-venture restaurants, and we have deep familiarity with the operating history in each location. This acquisition is a key strategic milestone for us as it consolidates the ownership of all traditional Bad Daddy's locations under our ownership."

Additionally, the Company has amended its current credit facility (the "Credit Facility") to extend its maturity date to April 30, 2023, provide lender consent required under the Credit Facility for the acquisition of these membership interests, and provide EBITDA credit under the facility for a portion of the approximately $850,000 of full-year EBITDA, (as that term is defined under the Credit Facility), that was previously allocated to the non-controlling members of the joint-venture entities.

**About Good Times Restaurants Inc.:** Good Times Restaurants Inc. (GTIM) owns, operates, and licenses 41 Bad Daddy's Burger Bar restaurants through its wholly-owned subsidiaries. Bad Daddy's Burger Bar is a full-service "small box" restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 31 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts.

**Forward Looking Statements Disclaimer:** This press release contains forward looking statements within the meaning of federal securities laws. The words "intend," "may," "believe," "will," "should," "anticipate," "expect," "seek" and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, which may cause the Company's actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the Company's stock prevailing from time to time, the nature of other investment opportunities presented to the Company, the Company's financial performance and its cash flows from operations, general economic conditions, which could adversely affect the Company's results of operations and cash flows. These risks also include such factors as the disruption to our business from the COVID-19 pandemic and the impact of the pandemic on our results of operations, financial condition and prospects which may vary depending on the duration and extent of the pandemic and the impact of federal, state and local governmental actions and customer behavior in response to the pandemic, the impact and duration of staffing constraints at our restaurants, the impact of supply chain constraints and the current inflationary environment, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting or other reasons, increased competition, cost increases or shortages in raw food products, and other matters discussed under the Risk Factors section of Good Times' Annual Report on Form 10-K for the fiscal year ended September 27, 2022 filed with the SEC, and other filings with the SEC.

**Good Times Restaurants Inc.** **CONTACTS:**

Ryan M. Zink, Chief Executive Officer (303) 384-1432

Christi Pennington (303) 384-1440