Document:

Exhibit 10.1

 

AMENDMENT NO. 2 TO SECURITIES PURCHASE
AGREEMENT

 

This Amendment No. 2 to Securities Purchase Agreement (this
“Amendment”) dated this 30th day of July, 2018, by and among I.AM INC., a Nevada corporation (the “Company”),
David J. Krause, an individual (individually, a “Company Stockholder”), Deborah J. Krause, an individual (a “Company
Stockholder” and with David J. Krause, the “Company Stockholders”) and Digital Power Lending, LLC, a California
limited liability company (the “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, the Company, the Company Stockholders,
and the Purchaser are party to a securities purchase agreement, dated May 23, 2018, as amended by Amendment No. 1 thereto, dated
June 28, 2018 (as amended, the “Purchase Agreement”);

 

WHEREAS, the Company, the Company Stockholders,
and the Purchaser desire to amend the Purchase Agreement as more particularly set forth below;

 

WHEREFORE, the parties do hereby agree as
follows:

 

1.            The last sentence
of Section 4.4 of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

In the event that the Management Agreement is not entered into
by August 31, 2018, then on September 4, 2018, (i) the Purchaser shall return to the Company for cancellation, all Shares owned
by the Purchaser, in return for which Purchaser shall receive a full refund of the Purchase Price; and (ii) the Company shall sell
to the Company Stockholders, and the Company Stockholders shall purchase from the Company, shares of Common Stock in an aggregate
amount equal to the number of shares returned to the Company for cancellation by the Purchaser (allocated between the Company Stockholders
in such amounts that following such sale, each Company Stockholder will own an equal amount of shares of the Company’s Common
Stock, or as otherwise agreed to between the Company Stockholders), at a purchase price of $1.00 per share.

 

2.            Except as modified
herein, the terms of the Purchase Agreement shall remain in full force and effect.

 

3.            This Amendment may
be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and shall be binding
upon all parties, their successors and assigns, and all of which taken together shall constitute one and the same Amendment. A
signature delivered by facsimile shall constitute an original.

 

[Signature Page Follows]

 

    	 	1	 

    

    

 

IN WITNESS WHEREOF, the parties have
executed this Amendment as of the date first written above.

 

 

i.am inc.

 

 

By: /s/ David J. Krause

Name: David J. Krause

Title: CEO

 

 

 

DIGITAL POWER LENDING, LLC

 

 

By: /s/ William Corbett

Name: William Corbett

Title: Manager

 

 

 

/s/ David J. Krause

David J. Krause

 

 

 

/s/ Deborah J. Krause

Deborah J. Krause

 

 

2mgm-ex42_96.htm

Exhibit 4.2

 

EXECUTION VERSION

SUPPLEMENTAL INDENTURE TO THE INDENTURES

Supplemental Indenture (this “Supplemental Indenture”), dated as of June 15, 2018, among  MGP OH, Inc.  (the “Guaranteeing Entity”), a Delaware corporation, MGP Finance Co-Issuer, Inc., a Delaware corporation (the “Co-Issuer”), MGM Growth Properties Operating Partnership LP, a Delaware limited partnership (the “Issuer” and, together with the Co-Issuer, the “Issuers”), the other Subsidiary Guarantors (as defined in the Indenture referred to herein) and U.S. Bank National Association, as Trustee under the Indenture referred to below (the “Trustee”).

W I T N E S S E T H

WHEREAS, the Issuers have heretofore executed and delivered to the Trustee (i) an indenture, dated as of April 20, 2016 providing for the issuance of 5.625% Senior Notes due 2024 (the “2024 Notes”); (ii) an indenture, dated as of August 12, 2016 providing for the issuance of 4.500% Senior Notes due 2026 (the “2026 Notes”); and (iii) an indenture, dated as of September 21, 2017 providing for the issuance of 4.500% Senior Notes due 2028 (the “2028 Notes,” and, collectively, with the 2024 Notes, and the 2026 Notes, the “Notes,” and each of (i), (ii) and (iii), the “Indentures”);

WHEREAS, the Indentures provide that under certain circumstances the Guaranteeing Entity shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Entity shall unconditionally guarantee all of the Issuers’ obligations under the Notes and the Indentures on the terms and conditions set forth herein (the “Note Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indentures, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Entity and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indentures.

2. AGREEMENT TO GUARANTEE. The Guaranteeing Entity hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in each Note Guarantee and in the Indentures including but not limited to Article 10 thereof.

4. NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or stockholder of the Issuers or any Subsidiary Guarantor, as such, will have any liability for any obligations of the Company or the Subsidiary Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

5. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

6. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

7. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

8. THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Entity and the Company.

[Signatures on following page]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

Dated: June 15, 2018

	
 
	
 
	
 

	
MGP OH, INC.

	
 
	
 

	
By:
	
 
	
 /s/ Andrew Hagopian III

	
 
	
 
	
Name:    Andrew Hagopian III

	
 
	
 
	
Title:      Secretary

	
 

	
MGM GROWTH OPERATING PARTNERSHIP LP

	
 
	
 

	
By:
	
 
	
 /s/ Andrew Hagopian III

	
 
	
 
	
Name:    Andrew Hagopian III

	
 
	
 
	
Title:      Assistant Secretary

	
 

	
MGP FINANCE CO-ISSUER

	
 
	
 

	
By:
	
 
	
 /s/ Andrew Hagopian III

	
 
	
 
	
Name:    Andrew Hagopian III

	
 
	
 
	
Title:      Secretary

	
 

	
MGP LESSOR HOLDINGS, LLC

	
 
	
 

	
By:
	
 
	
 /s/ Andrew Hagopian III

	
 
	
 
	
Name:    Andrew Hagopian III

	
 
	
 
	
Title:      Secretary

	
 

	
MGP LESSOR, LLC

	
 
	
 

	
By:
	
 
	
 /s/ Andrew Hagopian III

	
 
	
 
	
Name:Andrew Hagopian III

	
 
	
 
	
Title:Secretary

	
 

	
U.S. BANK NATIONAL ASSOCIATION

	
as Trustee

	
 
	
 

	
By:
	
 
	
 /s/ Raymond S. Haverstock

	
 
	
 
	
Authorized Signatory

 

[Signature Page to Supplemental Indenture]ex_118547.htm

EXHIBIT 10.1

 

 

 

NATHAN’S FAMOUS, INC.

 

2019 MANAGEMENT INCENTIVE PLAN

Fiscal Year Ending March 31, 2019

 

Plan Purpose

 

The Nathan’s Famous, Inc. 2019 Management Incentive Plan (“Plan”) provides for certain employees of Nathan’s Famous, Inc. (the “Company”) and its subsidiaries who are executive officers and are designated (the “Covered Employees”) to receive annual incentive awards (“Awards”) based on the achievement of specific goals and objectives as established by the Compensation Committee of the Board of Directors of the Company (the “Board”). The Compensation Committee has delegated the authority with respect to the Plan to its Performance-Based Compensation Subcommittee (the “Committee”). The Plan has been adopted pursuant to the authority granted to the Committee under the Nathan’s Famous, Inc. Code Section 162(m) Bonus Plan and accordingly no stockholder approval is required to approve the Plan.

 

Plan Administration

 

By virtue of the authority delegated to the Committee, the Committee shall have the exclusive power and authority, in its discretion, to: (i) interpret the Plan; (ii) approve the designation of Covered Employees eligible to participate in the Plan; (iii) set the performance criteria and performance period for Awards within the Plan guidelines; (iv) certify attainment of performance goals and other material terms; (v) reduce Awards as provided herein; (vi) authorize the payment of all benefits and expenses of the Plan as they become payable under the Plan; (vii) adopt, amend and rescind rules and regulations relating to the Plan; and (viii) make all other determinations and take all other actions necessary or desirable for the Plan’s administration including, without limitation, correcting any defect, supplying any omission or reconciling any inconsistency in the Plan in the manner and to the extent it shall deem necessary to carry the Plan into effect, but only to the extent any such action would be permitted under Section 162(m) of the Internal Revenue Code of 1986, as amended. The Committee’s determinations under the Plan need not be uniform and may be made selectively among Covered Employees whether or not such Covered Employees are similarly situated.

 

All decisions of the Committee on any question concerning the designation of Covered Employees and the interpretation and administration of the Plan shall be final, conclusive and binding upon all parties. The Committee may rely on information, and consider recommendations, provided by the Board or the executive officers of the Company. The Plan is intended to comply with Code Section 162(m), and all provisions contained herein shall be limited, construed and interpreted in a manner to comply therewith.

 

 

 

 

In addition to such other rights of indemnification as they may have as members of the Board, members of the Committee who administer the Plan shall be defended and indemnified by the Company, to the extent permitted by law, on an after-tax basis against (i) all reasonable expenses (including attorneys’ fees) actually and necessarily incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Award awarded hereunder and (ii) all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within 30 days after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to defend the same.

 

Eligible Executives

 

For the fiscal year ending March 31, 2019 the Covered Employees will include Eric Gatoff, Chief Executive Officer (“Covered Employee 1”), Ron DeVos, Chief Financial Officer (“Covered Employee 2”), Scott Harvey, Executive Vice President (“Covered Employee 3”), and Leigh Platte, Vice President, Food Service (“Covered Employee 4”). Additional executive officers of the Company may be added to the Plan at the discretion of the Committee.

 

Determination of Incentive Awards

 

Performance Criteria

 

Annual Awards will be established based on the following performance criteria:

 

 

	 	
			(i)

				
			Modified EBITDA Net of Restaurant Contribution – Modified EBITDA less Company-Owned Restaurant Operating Profit and Franchising Revenue. The performance measures for the year ending March 31, 2019 are set forth on Exhibit A, and the target Modified EBITDA Net of Restaurant Contribution is as established by separate resolution of the Committee on June 20, 2018.

			

 

	 	
			(ii)

				
			Modified EBITDA – Earnings before interest expense, income taxes, depreciation and amortization and modified to exclude FASB 123R expenses, bonus expenses for Plan participants, any year-end surplus or deficit in the Company’s marketing development fund, litigation or claim judgments or settlements, any tariffs paid by the Company in order to retain existing foodservice customers in Mexico and/or Canada, non-operating items and expenses for restructuring, productivity initiatives or new business initiatives. The performance measures for the year ending March 31, 2019 are set forth on Exhibit B, and the target Modified EBITDA is as established by separate resolution of the Committee on June 20, 2018.

			

 

2

 

 

	 	
			(iii)

				
			Company-Owned Restaurant Operating Profit. Operating profit derived from Company-owned restaurants. The performance measures for the year ending March 31, 2019 are set forth on Exhibits A and C, and the target Company- Owned Restaurant Operating Profit is as established by separate resolution of the Committee on June 20, 2018.

			

 

	 	
			(iv)

				
			Franchising Revenue – Total franchise fees, royalties and rebates earned from franchising activities. The performance measures for the year ending March 31, 2019 are set forth on Exhibits A and C, and the target Franchising Revenue is as established by separate resolution of the Committee on June 20, 2018.

			

 

	 	
			(v)

				
			Foodservice Operating Profit – Operating profit derived from the Branded Products Program excluding any tariffs paid by the Company in order to retain existing foodservice customers in Mexico and/or Canada. The performance measures for the year ending March 31, 2019 are set forth on Exhibit D and the target Foodservice Operating Profit is as established by separate resolution of the Committee on June 20, 2018.

			

 

The aforementioned criteria may be adjusted by the Committee to exclude the effects of the following items: extraordinary, unusual or non-recurring items; effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results; effects of currency fluctuations; effects of financing activities (e.g., effect on earnings per share of issuing convertible debt securities); expenses for restructuring, productivity initiatives or new business initiatives; impairment of tangible or intangible assets; litigation or claim judgments or settlements; non-operating items; acquisition expenses; and effects of assets sales or divestitures.

 

Individual Awards – Performance Criteria:

 

	 	
			Target

			Bonus (%

			of Salary)

				
			Modified 

			EBITDA Net of 

			Restaurant 

			Contribution 

			(Weight %)

				
			Company-

			Owned 

			Restaurant 

			Operating Profit 

			(Weight %)

				
			Franchising 

			Revenue 

			(Weight %)

			
	
			Covered Employee 1

				
			155%

				
			75%

				
			12.5%

				
			12.5%

			

 

 

 

	 	
			Target Bonus (% of Salary)

				
			Modified EBITDA (Weight %)

			
	
			Covered Employee 2

				
			100%

				
			100%

			

 

 

 

	 	
			Target Bonus

			(% of Salary)

				
			Company-Owned 

			Restaurant Operating 

			Profit (Weight %)

				
			Franchising Revenue 

			(Weight %)

			
	
			Covered Employee 3

				
			40%

				
			35%

				
			65%

			

 

3

 

 

 

	 	
			Target Bonus (% of Salary)

				
			Foodservice Operating Profit

			(Weight %)

			
	
			Covered Employee 4

				
			55%

				
			100%

			

 

 

The amount of individual Awards will be determined by the Committee upon attainment of the performance goals based on the aforementioned criteria (the “Performance Goals”). The Committee may exercise negative discretion with respect to any Award to reduce any amount that would otherwise be payable under the Plan.

 

Payment of Awards

 

Awards will be paid in cash no later than 21⁄2 months after the year ending March 31, 2019. Payment of the Awards shall be contingent upon the Committee certifying in writing that the Performance Goals and any other material terms applicable to such Award were satisfied.

 

Limitation on Awards

 

The maximum annual Award payable for the fiscal year ending March 31, 2019 to any Covered Employee under the Plan is $1,162,500.

 

Effective Date

 

The Plan is effective as of March 26, 2018.

 

Amendment, Suspension or Termination of the Plan. The Committee may at any time amend, suspend or terminate the Plan. However, any amendment or modification of the Plan shall be subject to stockholder approval to the extent required under Code Section 162(m) or other applicable law or regulation.

 

Adopted by the Performance-Based Subcommittee on June 20, 2018 for the fiscal year ending March 31, 2019.

 

4

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