Document:

Exhibit 4.1

 

RED ROBIN GOURMET BURGERS, INC.

 

 

and

 

 

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

 

 

RIGHTS AGREEMENT

 

 

Dated as of August 11, 2010

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.

  	
   

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
   

  	
  Appointment
  of Rights Agent

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
   

  	
  Issue
  of Right Certificates

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
   

  	
  Form of
  Right Certificates

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
   

  	
  Countersignature
  and Registration

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
   

  	
  Transfer,
  Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed,
  Lost or Stolen Right Certificates

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
   

  	
  Exercise
  of Rights; Purchase Price; Expiration Date of Rights

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
   

  	
  Cancellation
  and Destruction of Right Certificates

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9.

  	
   

  	
  Availability
  of Preferred Shares

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.

  	
   

  	
  Preferred
  Shares Record Date

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.

  	
   

  	
  Adjustment
  of Purchase Price, Number of Shares or Number of Rights

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 12.

  	
   

  	
  Certificate
  of Adjusted Purchase Price or Number of Shares

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.

  	
   

  	
  Consolidation,
  Merger or Sale or Transfer of Assets or Earning Power

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 14.

  	
   

  	
  Fractional
  Rights and Fractional Shares

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 15.

  	
   

  	
  Rights
  of Action

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 16.

  	
   

  	
  Agreement
  of Right Holders

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 17.

  	
   

  	
  Right
  Certificate Holder Not Deemed a Stockholder

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 18.

  	
   

  	
  Concerning
  the Rights Agent

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 19.

  	
   

  	
  Merger
  or Consolidation or Change of Name of Rights Agent

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 20.

  	
   

  	
  Duties
  of Rights Agent

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 21.

  	
   

  	
  Change
  of Rights Agent

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 22.

  	
   

  	
  Issuance
  of New Right Certificates

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 23.

  	
   

  	
  Redemption

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 24.

  	
   

  	
  Exchange

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 25.

  	
   

  	
  Notice
  of Certain Events

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 26.

  	
   

  	
  Notices

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 27.

  	
   

  	
  Supplements
  and Amendments

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 28.

  	
   

  	
  Successors

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 29.

  	
   

  	
  Benefits
  of This Agreement

  	
  47

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 30.

  	
   

  	
  Severability

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 31.

  	
   

  	
  Governing
  Law

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 32.

  	
   

  	
  Counterparts

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 33.

  	
   

  	
  Descriptive
  Headings

  	
  48

  

 

	
  Exhibit A

  	
  -

  	
  Form of
  Certificate of Designations

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Form of
  Right Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Summary
  of Rights to Purchase Preferred Shares

  

 

ii

 

This
Rights Agreement, dated as of August 11, 2010, is by and between Red Robin
Gourmet Burgers, Inc., a Delaware corporation (the “Company”), and
American Stock Transfer & Trust Company, LLC, a New York limited
liability company, as rights agent (the “Rights Agent”).

 

WHEREAS, the Board of Directors of the Company desires to
provide stockholders of the Company with the opportunity to benefit from the
long-term prospects and value of the Company to ensure that stockholders of the
Company receive fair and equal treatment in the event of any proposed takeover
of the Company;

 

WHEREAS, the Board of Directors of the Company has
authorized and declared a dividend of one preferred share purchase right (a “Right”)
for each Common Share (as hereinafter defined) of the Company outstanding on August 23,
2010 (the “Record Date”), each Right representing the right to purchase
one one-thousandth of a Preferred Share (as hereinafter defined), upon the
terms and subject to the conditions herein set forth, and has further authorized
and directed the issuance of one Right with respect to each Common Share that
shall become outstanding between the Record Date and the earliest of the
Distribution Date, the Redemption Date and the Final Expiration Date (as such
terms are hereinafter defined); and

 

WHEREAS, the Company desires to appoint the Rights Agent to
act as rights agent hereunder, in accordance with the terms and conditions
hereof.

 

NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereby agree as follows:

 

Section 1.                                            Definitions.  For purposes of this Agreement, the following
terms have the meanings indicated:

 

 

(a)                                  “Acquiring Person”
shall mean any Person who or which, together with all Affiliates and Associates
of such Person, shall be the Beneficial Owner of 15% or more of the Common
Shares of the Company then outstanding, but shall not include (i) the
Company, (ii) any Subsidiary of the Company, (iii) any employee
benefit plan of the Company or any Subsidiary of the Company or any entity
holding Common Shares for or pursuant to the terms of any such plan or (iv) any
Person who becomes the Beneficial Owner of 15% or more of the Common Shares of
the Company then outstanding as a result of an Exempt Acquisition (as such term
is hereinafter defined), provided that such Person or such Person’s Affiliates
or Associates does not subsequently, at any time while the Beneficial Owner of
15% or more of the Common Shares of the Company then outstanding, acquire
Beneficial Ownership of additional Common Shares of the Company (except
pursuant to a subsequent Exempt Acquisition or upon the exercise of any Rights
hereunder or pursuant to a stock dividend or distribution or similar action by
the Company) or (v) any Person who is, as of the date of this Agreement,
the Beneficial Owner of 15% or more of the Common Shares of the Company then
outstanding, but only so long as such Person thereafter does not, at any time
while the Beneficial Owner of 15% or more of the Common Shares of the Company then
outstanding, acquire Beneficial Ownership of any additional Common Shares
(other than upon the exercise of any rights hereunder or pursuant to a stock
dividend or distribution or similar action by the Company or pursuant to an
Exempt Acquisition) in an aggregate amount exceeding one percent of the then
outstanding number of Common Shares; provided, however,
that a Person excluded from the definition of Acquiring Person pursuant to
clause (iv) or (v) shall cease to be so excluded immediately at such
time as such Person ceases to be the Beneficial Owner of 15% or more of the
Common Shares of the Company then outstanding. 
Notwithstanding the foregoing, no Person shall become an 

 

2

 

“Acquiring Person” solely as the result of an
acquisition of Common Shares by the Company which, by reducing the number of
Common Shares of the Company outstanding, increases the proportionate number of
Common Shares of the Company beneficially owned by such Person to 15% or more
of the Common Shares of the Company then outstanding; provided, however,
that, if a Person shall become the Beneficial Owner of 15% or more of the
Common Shares of the Company then outstanding by reason of share purchases by
the Company and shall, after such share purchases by the Company, become the
Beneficial Owner of any additional Common Shares of the Company, then such
Person shall be deemed to be an “Acquiring Person.”  Notwithstanding the foregoing, if the Board
of Directors of the Company determines in good faith that a Person who would
otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), has become such inadvertently, and such
Person divests as promptly as practicable a sufficient number of Common Shares
so that such Person would no longer be an “Acquiring Person,” as defined
pursuant to the foregoing provisions of this paragraph (a), then such
Person shall not be deemed to be an “Acquiring Person” for any purposes of this
Agreement.

 

(b)                                 “Affiliate” and “Associate”
shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act as in effect on the date of this Agreement.

 

(c)                                  A Person shall be deemed the
“Beneficial Owner” of and shall be deemed to “beneficially own”
any securities:

 

3

 

(i)                                     which such Person or any of
such Person’s Affiliates or Associates, directly or indirectly, beneficially
owns (as determined pursuant to Rule 13d-3 of the Rules under the
Exchange Act, as in effect on the date of this Agreement);

 

(ii)                                  which such Person or any of
such Person’s Affiliates or Associates has:

 

(A)                              the right to
acquire (whether such right is exercisable immediately or only after the
passage of time) pursuant to any agreement, arrangement or understanding
(whether or not in writing) (other than customary agreements with and between
underwriters and selling group members with respect to a bona  fide
public offering of securities), or upon the exercise of conversion rights,
exchange rights, rights (other than these Rights), warrants or options, or
otherwise; provided, however, that a Person shall not be deemed
the Beneficial Owner of, or to beneficially own, securities tendered pursuant
to a tender or exchange offer made by or on behalf of such Person or any of
such Person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange; or

 

(B)                                the right to
vote pursuant to any agreement, arrangement or understanding (whether or not in
writing); provided, however, that a Person shall not be deemed
the Beneficial Owner of, or to beneficially own, any security if the agreement,
arrangement or understanding to vote such security (1) arises solely from
a revocable proxy or consent given to such Person in response to a public proxy
or consent solicitation made pursuant to, and in accordance with, the
applicable rules and regulations promulgated under the Exchange Act or any
comparable applicable legislation and (2) is not also then reportable on
Schedule 13D or 13G under the Exchange Act (or any comparable or successor
report); or

 

4

 

(C)                                the right to
dispose pursuant to any agreement, arrangement or understanding (whether or not
in writing) (other than customary agreements with and between underwriters and
selling group members with respect to a bona  fide public offering
of securities).

 

(iii)                               which are beneficially
owned, directly or indirectly, by any other Person with which such Person or
any of such Person’s Affiliates or Associates has any agreement, arrangement or
understanding (whether or not in writing) (other than customary agreements with
and between underwriters and selling group members with respect to a bona
fide public offering of securities) for the purpose of acquiring,
holding, voting (except to the extent contemplated by the proviso to
Section 1(c)(ii)(B) hereof) or disposing of any securities of the
Company.

 

Notwithstanding
the foregoing, (1) no Person engaged in business as an underwriter of
securities shall be deemed the Beneficial Owner of any securities acquired
through such Person’s participation as an underwriter in good faith in a firm
commitment underwriting until the expiration of forty (40) days after the date
of such acquisition, and (2) no Person who is a director or an officer of
the Company shall be deemed, as a result of his or her position as director or
officer of the Company, the Beneficial Owner of any securities of the Company
that are Beneficially Owned by any other director or officer of the Company.

 

For
all purposes of this Agreement, the phrase “then outstanding,” when used with
reference to a Person’s Beneficial Ownership of securities of the Company,
shall mean the number of such securities then issued and outstanding together
with the number of such securities not then actually issued and outstanding
which such Person would be deemed to own beneficially hereunder.

 

5

 

(d)                                 “Business Day” shall
mean any day other than a Saturday, a Sunday, or a day on which banking
institutions in New York State are authorized or obligated by law or executive
order to close.

 

(e)                                  “Close of Business”
on any given date shall mean 5:00 P.M., New York, New York time, on such
date; provided, however, that, if such date is not a Business
Day, it shall mean 5:00 P.M., New York, New York time, on the next
succeeding Business Day.

 

(f)                                    “Common Shares” when
used with reference to the Company shall mean the shares of common stock, par
value $0.001 per share, of the Company.  “Common
Shares” when used with reference to any Person other than the Company shall
mean the capital stock (or equity interest) with the greatest voting power of
such other Person or, if such other Person is a Subsidiary of another Person,
the Person or Persons which ultimately control such first-mentioned Person.

 

(g)                                 “Distribution Date”
shall have the meaning set forth in Section 3(a) hereof.

 

(h)                                 “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

 

(i)                                     “Exchange Ratio”
shall have the meaning set forth in Section 24(a) hereof.

 

(j)                                     “Exempt Acquisition”
shall mean an acquisition of Common Shares of the Company in respect of which
the Board of Directors has determined in advance of the completion of the
acquisition and the execution of any definitive agreement related thereto that
the Person acquiring Common Shares of the Company in the acquisition who would
otherwise be 

 

6

 

an “Acquiring Person” as defined above, should not
be deemed an “Acquiring Person” because the acquisition is in the best
interests of the Company’s stockholders.

 

(k)                                  “Final Expiration Date”
shall have the meaning set forth in Section 7(a) hereof.

 

(l)                                     “NASDAQ” shall mean
the National Association of Securities Dealers, Inc. Automated Quotation
System.

 

(m)                               “Person” shall mean
any individual, firm, corporation or other entity, and shall include any
successor (by merger or otherwise) of such entity.

 

(n)                                 “Preferred Shares”
shall mean shares of Series A Junior Participating Preferred Stock, par
value $0.001 per share, of the Company having the rights and preferences set
forth in the Form of Certificate of Designations attached to this
Agreement as Exhibit A.

 

(o)                                 “Purchase Price”
shall have the meaning set forth in Section 4 hereof.

 

(p)                                 “Record Date” shall
have the meaning set forth in the second paragraph hereof.

 

(q)                                 “Redemption Date”
shall have the meaning set forth in Section 7(a) hereof.

 

(r)                                    “Redemption Price”
shall have the meaning set forth in Section 23(a) hereof.

 

(s)                                  “Right” shall have
the meaning set forth in the second paragraph hereof.

 

7

 

(t)                                    “Right
Certificate” shall have the meaning set forth in Section 3(a) hereof.

 

(u)                                 “Shares
Acquisition Date” shall mean the first date of public announcement by the
Company or an Acquiring Person that an Acquiring Person has become such.

 

(v)                                 “Subsidiary”
of any Person shall mean any corporation or other entity of which a majority of
the voting power of the voting equity securities or equity interest is owned,
directly or indirectly, by such Person.

 

(w)                               “Summary of
Rights” shall have the meaning set forth in Section 3(b) hereof.

 

(x)                                   “Trading Day”
shall have the meaning set forth in Section 11(d) hereof.

 

Section 2.                                            Appointment of
Rights Agent.  The Company
hereby appoints the Rights Agent to act as agent for the Company in accordance
with the terms and conditions hereof, and the Rights Agent hereby accepts such
appointment.  The Company may from time
to time appoint such co-Rights Agents as it may deem necessary or
desirable.  The Rights Agent shall have
no duty to supervise, and in no event shall be liable for the acts or omissions
of any such co-Rights Agent.

 

Section 3.                                            Issue of Right
Certificates.  (a) Until
the earlier of (i) the tenth day after the Shares Acquisition Date or (ii) the
tenth Business Day (or such later date as may be determined by action of the
Board of Directors of the Company prior to such time as any Person becomes an
Acquiring Person) after the date of the commencement by any Person (other than
the Company, any Subsidiary of the Company, any employee benefit plan of the
Company or of any 

 

8

 

Subsidiary of the Company or any entity holding
Common Shares of the Company for or pursuant to the terms of any such plan) of
a tender or exchange offer the consummation of which would result in any Person
becoming the Beneficial Owner of Common Shares of the Company aggregating 15%
or more of the then outstanding Common Shares of the Company except pursuant to
an Exempt Acquisition (including any such date which is after the date of this
Agreement and prior to the issuance of the Rights; the earlier of such dates
being herein referred to as the “Distribution Date”), (x) the Rights
will be evidenced (subject to the provisions of Section 3(b) hereof) by
the certificates for Common Shares of the Company registered in the names of
the holders thereof (which certificates shall also be deemed to be Right
Certificates) and not by separate Right Certificates, and (y) the right to
receive Right Certificates will be transferable only in connection with the
transfer of Common Shares of the Company. 
As soon as practicable after the Distribution Date, the Company will
prepare and execute, the Rights Agent will countersign, and the Company will
send or cause to be sent (and the Rights Agent will, if requested and provided
with the necessary information, send) by first-class, insured, postage-prepaid
mail, to each record holder of Common Shares of the Company as of the Close of
Business on the Distribution Date, at the address of such holder shown on the
records of the Company, a Right Certificate, in substantially the form of
Exhibit B hereto (a “Right Certificate”), evidencing one Right for
each Common Share so held.  As of the
Distribution Date, the Rights will be evidenced solely by such Right
Certificates.

 

(b)                                 On the Record
Date, or as soon as practicable thereafter, the Company will send a copy of a
Summary of Rights to Purchase Preferred Shares, in substantially the form of
Exhibit C hereto (the “Summary of Rights”), by first-class,
postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Record Date, at the address of such 

 

9

 

holder shown on the records of the Company.  With respect to certificates for Common
Shares of the Company outstanding as of the Record Date, until the Distribution
Date, the Rights will be evidenced by such certificates registered in the names
of the holders thereof together with a copy of the Summary of Rights attached
thereto.  Until the Distribution Date (or
the earlier of the Redemption Date or the Final Expiration Date), the surrender
for transfer of any certificate for Common Shares of the Company outstanding on
the Record Date, with or without a copy of the Summary of Rights attached thereto,
shall also constitute the transfer of the Rights associated with the Common
Shares of the Company represented thereby.

 

(c)                                  Certificates
for Common Shares which become outstanding (including, without limitation,
reacquired Common Shares referred to in the last sentence of this
paragraph (c)) after the Record Date but prior to the earliest of the
Distribution Date, the Redemption Date or the Final Expiration Date shall have
impressed on, printed on, written on or otherwise affixed to them the following
legend:

 

This
certificate also evidences and entitles the holder hereof to certain Rights as
set forth in the Rights Agreement between Red Robin Gourmet Burgers, Inc. (the “Company”)
and American Stock Transfer & Trust Company, LLC (the “Rights Agent”), dated
as of August 11, 2010, as it may be amended from time to time (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference and
a copy of which is on file at the principal offices of the Company.  Under certain circumstances, as set forth in
the Rights Agreement, such Rights will be evidenced by separate certificates
and will no longer be evidenced by this certificate.  The Company will mail to the holder of this
certificate a copy of the Rights Agreement, as in effect on the date of
mailing, without charge promptly after receipt of a written request
therefor.  As set forth in the Rights
Agreement, Rights beneficially owned by any Person (as defined in the Rights
Agreement) who becomes an Acquiring Person (as defined in the Rights Agreement)
become null and void.

 

With respect to such certificates containing the foregoing
legend, until the Distribution Date, the Rights associated with the Common
Shares of the Company represented by such certificates 

 

10

 

shall be evidenced by such certificates alone, and the
surrender for transfer of any such certificate shall also constitute the
transfer of the Rights associated with the Common Shares of the Company
represented thereby.  In the event that
the Company purchases or acquires any Common Shares of the Company after the
Record Date but prior to the Distribution Date, any Rights associated with such
Common Shares of the Company shall be deemed cancelled and retired so that the
Company shall not be entitled to exercise any Rights associated with the Common
Shares of the Company which are no longer outstanding.

 

(d)                                 Any Right Certificate representing Rights beneficially owned by any Person
referred to in Section 7(e)(i), 7(e)(ii) or 7(e)(iii) shall (to the extent
feasible) contain a legend in substantially the following form:

 

The Rights represented by this certificate are or were
beneficially owned by a Person who was or became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the
Rights Agreement).  This certificate and
the Rights represented hereby may be or may become null and void in the
circumstances specified in Section 7(e) of such Rights Agreement.

 

Section 4.                                            Form of Right
Certificates.  The Right
Certificates (and the forms of election to purchase Preferred Shares and of
assignment to be printed on the reverse thereof) shall be substantially the
same as Exhibit B hereto, and may have such marks of identification or
designation and such legends, summaries or endorsements printed thereon as the
Company may deem appropriate (but which do not affect the duties, rights or
responsibilities of the Rights Agent) and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any
applicable law or with any applicable rule or regulation made pursuant thereto
or with any applicable rule or regulation of any governmental authority, stock
exchange, securities commission, the Financial Industry Regulatory Authority,
or similar authority, or to conform to usage. 
Subject to the provisions of Section 22 hereof, the Right
Certificates shall 

 

11

 

entitle the holders thereof to purchase such number
of one one-thousandths of a Preferred Share as shall be set forth therein at
the price per one one-thousandth of a Preferred Share set forth therein (the “Purchase
Price”), but the number of such one one-thousandths of a Preferred Share
and the Purchase Price shall be subject to adjustment as provided herein.

 

Section 5.                                            Countersignature
and Registration.  The Right
Certificates shall be executed on behalf of the Company by its Chair of the
Board, its Chief Executive Officer, its President, any of its Vice Presidents
or its Treasurer, either manually or by facsimile signature, shall have affixed
thereto the Company’s seal or a facsimile thereof, and shall be attested by the
Secretary or an Assistant Secretary of the Company, either manually or by
facsimile signature.  The Right
Certificates shall be manually countersigned by the Rights Agent and shall not
be valid for any purpose unless countersigned. 
In case any officer of the Company who shall have signed any of the
Right Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Right Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered by the Company with the same force and effect as
though the individual who signed such Right Certificates had not ceased to be
such officer of the Company; and any Right Certificate may be signed on behalf
of the Company by any individual who, at the actual date of the execution of
such Right Certificate, shall be a proper officer of the Company to sign such
Right Certificate, although at the date of the execution of this Agreement any
such individual was not such an officer.

 

Following the Distribution Date, and receipt by the
Rights Agent of all necessary information, the Rights Agent will keep or cause
to be kept, at its office designated for such purpose (the “Designated
Office”), books for registration and transfer of the Right Certificates 

 

12

 

issued
hereunder.  Such books shall show the
names and addresses of the respective holders of the Right Certificates, the
number of Rights evidenced on its face by each of the Right Certificates and
the date of each of the Right Certificates.

 

Section 6.                                            Transfer, Split
Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost
or Stolen Right Certificates.  Subject to the provisions of Section 14
hereof, at any time after the Close of Business on the Distribution Date, and
at or prior to the Close of Business on the earlier of the Redemption Date or
the Final Expiration Date, any Right Certificate or Right Certificates (other
than Right Certificates representing Rights that have become void pursuant to
Section 11(a)(ii) hereof or that have been exchanged pursuant to
Section 24 hereof) may be transferred, split up, combined or exchanged for
another Right Certificate or Right Certificates entitling the registered holder
to purchase a like number of one one-thousandths of a Preferred Share as the
Right Certificate or Right Certificates surrendered then entitled such holder
to purchase.  Any registered holder
desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights
Agent, and shall surrender the Right Certificate or Right Certificates to be
transferred, split up, combined or exchanged at the Designated Office of the
Rights Agent.  Thereupon the Rights Agent
shall countersign and deliver to the Person entitled thereto a Right
Certificate or Right Certificates, as the case may be, as so requested.  The Company may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Right
Certificates.  The Rights Agent shall
have no duty or obligation under this Section 6 unless and until it is
reasonably satisfied that all such taxes and/or charges have been paid.

 

13

 

Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory
to them of the loss, theft, destruction or mutilation of a Right Certificate,
and, in case of loss, theft or destruction, of indemnity or security
satisfactory to them, and, at the Company’s request, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and
upon surrender to the Rights Agent and cancellation of the Right Certificate if
mutilated, the Company will make and deliver a new Right Certificate of like
tenor to the Rights Agent for delivery to the registered holder in lieu of the
Right Certificate so lost, stolen, destroyed or mutilated.

 

Section 7.                                            Exercise of
Rights; Purchase Price; Expiration Date of Rights.  (a) The registered holder of any Right
Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein), in whole or in part, at any time after the Distribution Date,
upon surrender of the Right Certificate, with the form of election to purchase on
the reverse side thereof properly and duly executed, to the Rights Agent at the
Designated Office of the Rights Agent, together with payment of the Purchase
Price for each one one-thousandth of a Preferred Share as to which the Rights
are exercised, at or prior to the earliest of (i) the Close of Business on
August 11, 2011 (the “Final Expiration Date”), (ii) the time at which
the Rights are redeemed as provided in Section 23 hereof (the “Redemption
Date”), or (iii) the time at which such Rights are exchanged as provided in
Section 24 hereof.

 

(b)                                 The Purchase
Price for each one one-thousandth of a Preferred Share purchasable pursuant to
the exercise of a Right shall initially be $110.00, and shall be subject to
adjustment from time to time as provided in Section 11 or 13 hereof, and
shall be payable in lawful money of the United States of America in accordance
with paragraph (c) below.

 

14

 

(c)                                  Upon receipt of
a Right Certificate representing exercisable Rights, with the form of election
to purchase properly and duly executed, accompanied by payment of the Purchase
Price for the shares to be purchased and an amount equal to any applicable tax
or charge required to be paid by the holder of such Right Certificate in
accordance with Section 9 hereof by certified check, cashier’s check or
money order payable to the order of the Company, the Rights Agent shall
thereupon promptly (i) (A) requisition from any transfer agent of the Preferred
Shares certificates for the number of Preferred Shares to be purchased and the
Company hereby irrevocably authorizes any such transfer agent to comply with
all such requests, or (B) requisition from the depositary agent depositary
receipts representing such number of one one-thousandths of a Preferred Share
as are to be purchased (in which case certificates for the Preferred Shares
represented by such receipts shall be deposited by the transfer agent of the
Preferred Shares with such depositary agent) and the Company hereby directs such
depositary agent to comply with such request; (ii) when appropriate,
requisition from the Company the amount of cash to be paid in lieu of issuance
of fractional shares in accordance with Section 14 hereof; (iii) promptly
after receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated by such
holder; and (iv) when appropriate, after receipt, promptly deliver such cash to
or upon the order of the registered holder of such Right Certificate.

 

(d)                                 In case the
registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent
to the Rights remaining unexercised shall be issued by the Rights Agent to the
registered holder of 

 

15

 

such Right Certificate or to such holder’s duly
authorized assigns, subject to the provisions of Section 14 hereof.

 

(e)                                  Notwithstanding
anything in this Agreement to the contrary, any Rights that are at any time
beneficially owned by (i) an Acquiring Person or any Associate or
Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person
(or of any Associate or Affiliate of an Acquiring Person) who becomes a
transferee after the Acquiring Person becomes such or (iii) a transferee
of an Acquiring Person (or of any Associate or Affiliate of an Acquiring
Person) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not for consideration) from the Acquiring Person to
holders of equity interests in such Acquiring Person or to any Person with whom
the Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights, the Common Shares of the Company associated
with such Rights or the Company, or (B) a transfer which the Board of
Directors has determined is part of a plan, arrangement or understanding which
has as a primary purpose or effect the avoidance of this Section 7(e)
, shall be null and void without any further action and no holder of such
Rights shall have any rights whatsoever with respect to such Rights, whether
under any provision of this Agreement or otherwise. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 7(e)
and Section 3(d) of this Agreement are complied with, but shall
have no liability to any holder of Right Certificates or other Person as a
result of its failure to make any determinations with respect to an Acquiring
Person or any Affiliates or Associates of an Acquiring Person or any transferee
of any of them hereunder.

 

(f)                                    Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a 

 

16

 

registered
holder of Rights or other securities upon the occurrence of any purported
exercise as set forth in this Section 7  unless such registered holder shall have
(i) properly completed and duly executed the certificate contained in the
form of election to purchase set forth on the reverse side of the Right
Certificate surrendered for such exercise, and (ii) provided such
additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall
reasonably request.

 

Section 8.                                            Cancellation
and Destruction of Right Certificates.  All Right Certificates surrendered for the
purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in cancelled form, or, if surrendered to the Rights
Agent, shall be cancelled by it, and no Right Certificates shall be issued in
lieu thereof except as expressly permitted by any of the provisions of this
Agreement.  The Company shall deliver to
the Rights Agent for cancellation and retirement, and the Rights Agent shall so
cancel and retire, any other Right Certificate purchased or acquired by the
Company otherwise than upon the exercise thereof.  The Rights Agent shall deliver all cancelled
Right Certificates to the Company, or shall, at the written request of the
Company, destroy such cancelled Right Certificates, and, in such case, shall
deliver a certificate of destruction thereof to the Company.

 

Section 9.                                            Availability of
Preferred Shares.  The Company
covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued Preferred Shares or any Preferred Shares held in
its treasury the number of Preferred Shares that will be sufficient to permit
the exercise in full of all outstanding Rights in accordance with
Section 7 hereof.  The Company
covenants and agrees that it will take all such action as may be necessary to
ensure that all Preferred Shares delivered upon exercise of Rights shall, at
the time

 

17

 

of delivery of the certificates for such Preferred
Shares (subject to payment of the Purchase Price), be duly and validly
authorized and issued and fully paid and nonassessable shares.

 

The
Company further covenants and agrees that it will pay when due and payable any
and all taxes and charges which may be payable in respect of the issuance or
delivery of the Right Certificates or of any Preferred Shares upon the exercise
of Rights.  The Company shall not,
however, be required to pay any tax or charge which may be payable in respect
of any transfer or delivery of Right Certificates to a Person other than, or
the issuance or delivery of certificates or depositary receipts for the
Preferred Shares in a name other than that of, the registered holder of the Right
Certificate evidencing Rights surrendered for exercise or to issue or to
deliver any certificates or depositary receipts for Preferred Shares upon the
exercise of any Rights until any such tax or charge shall have been paid (any
such tax or charge being payable by the holder of such Right Certificate at the
time of surrender) or until it has been established to the Company’s reasonable
satisfaction that no such tax or charge is due.

 

Section 10.             Preferred Shares Record Date.  Each Person in whose name any certificate for
Preferred Shares is issued upon the exercise of Rights shall for all purposes
be deemed to have become the holder of record of the Preferred Shares
represented thereby on, and such certificate shall be dated, the date upon
which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable tax or charge) was made; provided,
however, that, if the date of such surrender and payment is a date upon
which the Preferred Shares transfer books of the Company are closed, such
Person shall be deemed to have become the record holder of such shares on, and
such certificate shall be dated, the next succeeding Business Day on which the
Preferred Shares transfer books of the Company are open.  Prior to the exercise of the Rights evidenced
thereby, the holder of a Right Certificate

 

18

 

shall not be entitled to any rights of a holder of
Preferred Shares for which the Rights shall be exercisable, including, without
limitation, the right to vote, to receive dividends or other distributions or
to exercise any preemptive rights, and shall not be entitled to receive any
notice of any proceedings of the Company, except as provided herein.

 

Section 11.             Adjustment of Purchase Price,
Number of Shares or Number of Rights. 
The Purchase Price, the number of Preferred Shares covered by each Right
and the number of Rights outstanding are subject to adjustment from time to
time as provided in this Section 11.

 

(a)           (i) In the event the Company shall at any time after
the date of this Agreement (A) declare a dividend on the Preferred Shares
payable in Preferred Shares, (B) subdivide the outstanding Preferred
Shares, (C) combine the outstanding Preferred Shares into a smaller number
of Preferred Shares or (D) issue any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification
in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), except as otherwise provided in this
Section 11(a), the Purchase Price in effect at the time of the record date
for such dividend or of the effective date of such subdivision, combination or
reclassification, and the number and kind of shares of capital stock issuable
on such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive the aggregate number and
kind of shares of capital stock which, if such Right had been exercised
immediately prior to such date and at a time when the Preferred Shares transfer
books of the Company were open, such holder would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be

 

19

 

less than the aggregate par value of the shares of
capital stock of the Company issuable upon exercise of one Right.

 

(ii)           Subject to Section 24 hereof, in the event any Person
becomes an Acquiring Person, each holder of a Right shall thereafter have a
right to receive, upon exercise thereof at a price equal to the then current
Purchase Price multiplied by the number of one one-thousandths of a Preferred
Share for which a Right is then exercisable, in accordance with the terms of
this Agreement and in lieu of Preferred Shares, such number of Common Shares of
the Company as shall equal the result obtained by (A) multiplying the then
current Purchase Price by the number of one one-thousandths of a Preferred
Share for which a Right is then exercisable and dividing that product by (B) 50%
of the then current per share market price of the Common Shares of the Company
(determined pursuant to Section 11(d) hereof) on the date of the
occurrence of such event.  In the event
that any Person shall become an Acquiring Person and the Rights shall then be
outstanding, the Company shall not take any action which would eliminate or
diminish the benefits intended to be afforded by the Rights.

 

From
and after the occurrence of such event, any Rights that are or were acquired or
beneficially owned by any Acquiring Person (or any Associate or Affiliate of
such Acquiring Person) shall be null and void, and any holder of such Rights
shall thereafter have no right to exercise such Rights under any provision of
this Agreement.  No Right Certificate
shall be issued pursuant to Section 3 hereof that represents Rights beneficially
owned by an Acquiring Person whose Rights would be null and void pursuant to
the preceding sentence or any Associate or Affiliate thereof; no Right
Certificate shall be issued at any time upon the transfer of any Rights to an
Acquiring Person whose Rights would be null and void pursuant to the preceding
sentence or any Associate or Affiliate thereof or to any nominee of such
Acquiring Person, Associate or

 

20

 

Affiliate;
and any Right Certificate delivered to the Rights Agent for transfer to an
Acquiring Person whose Rights would be null and void pursuant to the preceding
sentence shall be cancelled.

 

(iii)          In the event that there shall not be sufficient Common
Shares issued but not outstanding or authorized but unissued to permit the
exercise in full of the Rights in accordance with subparagraph (ii) above,
the Company shall take all such action as may be necessary to authorize
additional Common Shares for issuance upon exercise of the Rights.  In the event the Company shall, after good
faith effort, be unable to take all such action as may be necessary to
authorize such additional Common Shares, the Company shall substitute, for each
Common Share that would otherwise be issuable upon exercise of a Right, a
number of Preferred Shares or fraction thereof such that the current per share
market price of one Preferred Share multiplied by such number or fraction is
equal to the current per share market price of one Common Share as of the date
of issuance of such Preferred Shares or fraction thereof.

 

(b)           In case the Company shall fix a record date for the
issuance of rights, options or warrants to all holders of Preferred Shares
entitling them (for a period expiring within 45 calendar days after such record
date) to subscribe for or purchase Preferred Shares (or shares having the same
rights, privileges and preferences as the Preferred Shares (“equivalent
preferred shares”)) or securities convertible into Preferred Shares or
equivalent preferred shares at a price per Preferred Share or equivalent
preferred share (or having a conversion price per share, if a security
convertible into Preferred Shares or equivalent preferred shares) less than the
then current per share market price (as defined in Section 11(d)) of the
Preferred Shares on such record date, the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in
effect immediately prior to such record date by a fraction, the

 

21

 

numerator of which shall be the number of Preferred
Shares outstanding on such record date plus the number of Preferred Shares
which the aggregate offering price of the total number of Preferred Shares
and/or equivalent preferred shares so to be offered (and/or the aggregate
initial conversion price of the convertible securities so to be offered) would
purchase at such current market price and the denominator of which shall be the
number of Preferred Shares outstanding on such record date plus the number of
additional Preferred Shares and/or equivalent preferred shares to be offered
for subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right.  In
case such subscription price may be paid in a consideration part or all of
which shall be in a form other than cash, the value of such consideration shall
be as determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and holders of the Rights.  Preferred Shares owned by or held for the
account of the Company shall not be deemed outstanding for the purpose of any
such computation.  Such adjustment shall
be made successively whenever such a record date is fixed; and, in the event
that such rights, options or warrants are not so issued, the Purchase Price
shall be adjusted to be the Purchase Price which would then be in effect if
such record date had not been fixed.

 

(c)           In case the Company shall fix a record date for the making
of a distribution to all holders of the Preferred Shares (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of indebtedness
or assets (other than a regular quarterly cash dividend

 

22

 

or a dividend payable in Preferred Shares) or
subscription rights or warrants (excluding those referred to in Section 11(b) hereof),
the Purchase Price to be in effect after such record date shall be determined
by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the then-current per share
market price of the Preferred Shares on such record date, less the fair market
value (as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent and shall be binding on the Rights Agent and holders of the Rights) of
the portion of the assets or evidences of indebtedness so to be distributed or
of such subscription rights or warrants applicable to one Preferred Share and
the denominator of which shall be such then-current per share market price of
the Preferred Shares on such record date; provided, however, that
in no event shall the consideration to be paid upon the exercise of one Right
be less than the aggregate par value of the shares of capital stock of the
Company to be issued upon exercise of one Right.  Such adjustments shall be made successively
whenever such a record date is fixed; and, in the event that such distribution
is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price which would then be in effect if such record date had not been fixed.

 

(d)           (i) For the purpose of any computation hereunder, the
“current per share market price” of any security (a “Security” for the
purpose of this Section 11(d)(i)) on any date shall be deemed to be the
average of the daily closing prices per share of such Security for the 30
consecutive Trading Days immediately prior to but not including such date; provided,
however, that, in the event that the current per share market price of
the Security is determined during a period following the announcement by the
issuer of such Security of (A) a dividend or distribution on such Security
payable in shares of such Security or Securities convertible into

 

23

 

such shares, or (B) any subdivision,
combination or reclassification of such Security and prior to the expiration of
30 Trading Days after but not including the ex-dividend date for such dividend
or distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the current per share market
price shall be appropriately adjusted to reflect the current market price per
share equivalent of such Security.  The
closing price for each day shall be the last sale price, regular way, reported
at or prior to 4:00 P.M. Eastern time or, in case no such sale takes place
on such day, the average of the bid and asked prices, regular way, reported as
of 4:00 P.M. Eastern time, in either case, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the Security is listed or
admitted to trading or, if the Security is not listed or admitted to trading on
any national securities exchange, the last quoted price reported at or prior to
4:00 P.M. Eastern time or, if not so quoted, the average of the high bid
and low asked prices in the over-the-counter market, as reported as of
4:00 P.M. Eastern time by NASDAQ or such other system then in use, or, if
on any such date the Security is not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Security selected by the Board of Directors
of the Company.  The term “Trading Day”
shall mean a day on which the principal national securities exchange on which
the Security is listed or admitted to trading is open for the transaction of
business, or, if the Security is not listed or admitted to trading on any
national securities exchange, a Business Day.

 

(ii)           For the purpose of any computation hereunder, the “current
per share market price” of the Preferred Shares shall be determined in
accordance with the method set forth in Section 11(d)(i).  If the Preferred Shares are not publicly
traded, the “current per share market price” of the Preferred Shares shall be
conclusively deemed to be the current per share

 

24

 

market price of the Common Shares as determined
pursuant to Section 11(d)(i) hereof (appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after
the date hereof), multiplied by one thousand. 
If neither the Common Shares nor the Preferred Shares are publicly held
or so listed or traded, “current per share market price” shall mean the fair
value per share as determined in good faith by the Board of Directors of the
Company, whose determination shall be described in a statement filed with the
Rights Agent.

 

(e)           No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least 1% in
the Purchase Price; provided, however, that any adjustments which
by reason of this Section 11(e) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment.  All calculations under this Section 11
shall be made to the nearest cent or to the nearest one one-millionth of a
Preferred Share or one ten-thousandth of any other share or security as the case
may be.  Notwithstanding the first
sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years
from the date of the transaction which requires such adjustment or (ii) the
date of the expiration of the right to exercise any Rights.

 

(f)            If, as a result of an adjustment made pursuant to
Section 11(a) hereof, the holder of any Right thereafter exercised
shall become entitled to receive any shares of capital stock of the Company
other than Preferred Shares, thereafter the number of such other shares so
receivable upon exercise of any Right shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Preferred Shares contained in Section 11(a) through
(c) hereof, inclusive, and the provisions of

 

25

 

Sections 7, 9, 10 and 13 hereof with respect to
the Preferred Shares shall apply on like terms to any such other shares.

 

(g)           All Rights originally issued by the Company subsequent to
any adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-thousandths of
a Preferred Share purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein.

 

(h)           Unless the Company shall have exercised its election as
provided in Section 11(i) hereof, upon each adjustment of the
Purchase Price as a result of the calculations made in Sections 11(b) and
(c) hereof, each Right outstanding immediately prior to the making of such
adjustment shall thereafter evidence the right to purchase, at the adjusted
Purchase Price, that number of one one-thousandths of a Preferred Share
(calculated to the nearest one one-millionth of a Preferred Share) obtained by (A) multiplying
(x) the number of one one-thousandths of a share covered by a Right
immediately prior to this adjustment by (y) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (B) dividing
the product so obtained by the Purchase Price in effect immediately after such
adjustment of the Purchase Price.

 

(i)            The Company may elect, on or after the date of any adjustment
of the Purchase Price, to adjust the number of Rights in substitution for any
adjustment in the number of one one-thousandths of a Preferred Share
purchasable upon the exercise of a Right. 
Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-thousandths of a
Preferred Share for which a Right was exercisable

 

26

 

immediately prior to such adjustment.  Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase
Price.  The Company shall make a public
announcement (with prompt notice thereof to the Rights Agent) of its election
to adjust the number of Rights, indicating the record date for the adjustment,
and, if known at the time, the amount of the adjustment to be made.  This record date may be the date on which the
Purchase Price is adjusted or any day thereafter, but, if the Right
Certificates have been issued, shall be at least 10 days later than the date of
the public announcement.  If Right
Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as
practicable, cause to be distributed to holders of record of Right Certificates
on such record date Right Certificates evidencing, subject to Section 14
hereof, the additional Rights to which such holders shall be entitled as a
result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Right Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment.  Right Certificates so to be
distributed shall be issued, executed and countersigned in the manner provided
for herein, and shall be registered in the names of the holders of record of
Right Certificates on the record date specified in the public announcement.

 

(j)            Irrespective of any adjustment or change in the Purchase
Price or in the number of one one-thousandths of a Preferred Share issuable
upon the exercise of the Rights, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price

 

27

 

and the number of one one-thousandths of a Preferred
Share which were expressed in the initial Right Certificates issued hereunder.

 

(k)           Before taking any action that would cause an adjustment
reducing the Purchase Price below one one-thousandth of the then par value, if
any, of the Preferred Shares issuable upon exercise of the Rights, the Company
shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid
and nonassessable Preferred Shares at such adjusted Purchase Price.

 

(l)            In any case in which this Section 11 shall require
that an adjustment in the Purchase Price be made effective as of a record date
for a specified event, the Company may elect to defer (with prompt notice
thereof to the Rights Agent) until the occurrence of such event the issuing to
the holder of any Right exercised after such record date of the Preferred
Shares and other capital stock or securities of the Company, if any, issuable
upon such exercise over and above the Preferred Shares and other capital stock
or securities of the Company, if any, issuable upon such exercise on the basis
of the Purchase Price in effect prior to such adjustment; provided, however,
that the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder’s right to receive such additional shares
upon the occurrence of the event requiring such adjustment.

 

(m)          Anything in this Section 11 to the contrary
notwithstanding, the Company shall be entitled to make such reductions in the
Purchase Price, in addition to those adjustments expressly required by this
Section 11, as and to the extent that it, in its sole discretion, shall
determine to be advisable in order that any consolidation or subdivision of the
Preferred Shares, issuance wholly for cash of any Preferred Shares at less than
the current market price, issuance

 

28

 

wholly for cash of Preferred Shares or securities
which by their terms are convertible into or exchangeable for Preferred Shares,
dividends on Preferred Shares payable in Preferred Shares or issuance of
rights, options or warrants referred to in Section 11(b) hereof,
hereafter made by the Company to holders of the Preferred Shares shall not be
taxable to such stockholders.

 

(n)           In the event that, at any time after the date of this
Agreement and prior to the Distribution Date, the Company shall (i) declare
or pay any dividend on the Common Shares payable in Common Shares, or (ii) effect
a subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares)
into a greater or lesser number of Common Shares, then, in any such case, (A) the
number of one one-thousandths of a Preferred Share purchasable after such event
upon proper exercise of each Right shall be determined by multiplying the
number of one one-thousandths of a Preferred Share so purchasable immediately
prior to such event by a fraction, the numerator of which is the number of
Common Shares outstanding immediately before such event and the denominator of
which is the number of Common Shares outstanding immediately after such event,
and (B) each Common Share outstanding immediately after such event shall
have issued with respect to it that number of Rights which each Common Share
outstanding immediately prior to such event had issued with respect to it.  The adjustments provided for in this Section 11(n) shall
be made successively whenever such a dividend is declared or paid or such a
subdivision, combination or consolidation is effected.

 

Section 12.             Certificate of Adjusted Purchase
Price or Number of Shares.  Whenever
an adjustment is made as provided in Section 11 or 13 hereof, the Company
shall promptly (a) prepare a certificate setting forth the amount of the
adjustment and a brief statement of the facts and computations accounting for
such adjustment (including, without limitation, the

 

29

 

record date for the adjustment), (b) file with
the Rights Agent and with each transfer agent for the Common Shares or the
Preferred Shares and the Securities and Exchange Commission or other relevant
regulatory authority a copy of such certificate and (c) if such adjustment
occurs at any time after the Distribution Date, mail a brief summary thereof to
each holder of a Right Certificate in accordance with Section 25
hereof.  The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment therein
contained and shall have no duty with respect to and shall not be deemed to
have knowledge of any such adjustment unless and until it shall have received
such certificate.

 

Section 13.             Consolidation, Merger or Sale or
Transfer of Assets or Earning Power. 
In the event, directly or indirectly, at any time after a Person has
become an Acquiring Person, (a) the Company shall consolidate with, or
merge with and into, any other Person, (b) any Person shall consolidate
with the Company, or merge with and into the Company and the Company shall be
the continuing or surviving corporation of such merger and, in connection with
such merger, all or part of the Common Shares shall be changed into or
exchanged for stock or other securities of any other Person (or the Company) or
cash or any other property, or (c) the Company shall sell or otherwise
transfer (or one or more of its Subsidiaries shall sell or otherwise transfer),
in one or more transactions, assets or earning power aggregating 50% or more of
the assets or earning power of the Company and its Subsidiaries (taken as a
whole) to any other Person other than the Company or one or more of its
wholly-owned Subsidiaries, then, and in each such case, proper provision shall
be made so that (i) each holder of a Right (except as otherwise provided
herein) shall thereafter have the right to receive, upon the exercise thereof
at a price equal to the then current Purchase Price multiplied by the number of
one one-thousandths of a Preferred Share for which a Right is then exercisable,
in accordance with the terms of this

 

30

 

Agreement and in lieu of Preferred Shares, such
number of Common Shares of such other Person (including the Company as successor
thereto or as the surviving corporation) as shall equal the result obtained by (A) multiplying
the then current Purchase Price by the number of one one-thousandths of a
Preferred Share for which a Right is then exercisable and dividing that product
by (B) 50% of the then current per share market price of the Common Shares
of such other Person (determined pursuant to Section 11(d) hereof) on
the date of consummation of such consolidation, merger, sale or transfer; (ii) the
issuer of such Common Shares shall thereafter be liable for, and shall assume,
by virtue of such consolidation, merger, sale or transfer, all the obligations
and duties of the Company pursuant to this Agreement; (iii) the term “Company”
shall thereafter be deemed to refer to such issuer; and (iv) such issuer
shall take such steps (including, but not limited to, the reservation of a
sufficient number of its Common Shares in accordance with Section 9
hereof) in connection with such consummation as may be necessary to assure that
the provisions hereof shall thereafter be applicable, as nearly as reasonably
may be, in relation to the Common Shares of the Company thereafter deliverable
upon the exercise of the Rights.  The
Company shall not consummate any such consolidation, merger, sale or transfer
unless, prior thereto, the Company and such issuer shall have executed and
delivered to the Rights Agent a supplemental agreement so providing.  The Company shall not enter into any
transaction of the kind referred to in this Section 13 if at the time of
such transaction there are any rights, warrants, instruments or securities
outstanding or any agreements or arrangements which, as a result of the
consummation of such transaction, would eliminate or substantially diminish the
benefits intended to be afforded by the Rights. 
The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers.

 

31

 

Section 14.             Fractional Rights and Fractional
Shares.  (a) The Company shall
not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights. 
In lieu of such fractional Rights, there shall be paid to the registered
holders of the Right Certificates with regard to which such fractional Rights
would otherwise be issuable, an amount in cash equal to the same fraction of
the current market value of a whole Right. 
For the purposes of this Section 14(a), the current market value of
a whole Right shall be the closing price of the Rights for the Trading Day
immediately prior to the date on which such fractional Rights would have been
otherwise issuable.  The closing price
for any day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked prices,
regular way, in either case, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to
trading or, if the Rights are not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of
the high bid and low asked prices in the over-the-counter market, as reported
by NASDAQ or such other system then in use or, if on any such date the Rights
are not quoted by any such organization, the average of the closing bid and
asked prices as furnished by a professional market maker making a market in the
Rights selected by the Board of Directors of the Company.  If on any such date no such market maker is
making a market in the Rights, the fair value of the Rights on such date as
determined in good faith by the Board of Directors of the Company shall be
used.

 

(b)           The Company shall not be required to issue fractions of
Preferred Shares (other than fractions which are integral multiples of one
one-thousandth of a Preferred Share) upon exercise of the Rights or to
distribute certificates which evidence fractional Preferred

 

32

 

Shares (other than fractions which are integral
multiples of one one-thousandth of a Preferred Share).  Fractions of Preferred Shares in integral
multiples of one one-thousandth of a Preferred Share may, at the election of
the Company, be evidenced by depositary receipts, pursuant to an appropriate
agreement between the Company and a depositary selected by it; provided,
that such agreement shall provide that the holders of such depositary receipts
shall have all the rights, privileges and preferences to which they are
entitled as beneficial owners of the Preferred Shares represented by such
depositary receipts.  In lieu of
fractional Preferred Shares that are not integral multiples of one
one-thousandth of a Preferred Share, the Company shall pay to the registered
holders of Right Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market
value of one Preferred Share.  For the purposes
of this Section 14(b), the current market value of a Preferred Share shall
be the closing price of a Preferred Share (as determined pursuant to the second
sentence of Section 11(d)(i) hereof) for the Trading Day immediately
prior to the date of such exercise.

 

(c)           The holder of a Right, by the acceptance of the Right,
expressly waives such holder’s right to receive any fractional Rights or any
fractional shares upon exercise of a Right (except as provided above).  The Rights Agent shall have no duty or
obligation with respect to this Section 14 and Section 24(d) unless
and until it has received specific instructions (and sufficient cash, if
required) from the Company with respect to its duties and obligations under
such Sections.

 

Section 15.             Rights of Action.  All rights of action in respect of this
Agreement, excepting the rights of action expressly given to the Rights Agent
under Section 18 hereof, are vested in the respective registered holders
of the Right Certificates (and, prior to the Distribution Date, the registered
holders of the Common Shares); and any registered holder of any Right

 

33

 

Certificate (or, prior to the Distribution Date, of
the Common Shares), without the consent of the Rights Agent or of the holder of
any other Right Certificate (or, prior to the Distribution Date, of the Common
Shares), may, in such holder’s own behalf and for such holder’s own benefit,
enforce, and may institute and maintain any suit, action or proceeding against
the Company to enforce, or otherwise act in respect of, such holder’s right to
exercise the Rights evidenced by such Right Certificate in the manner provided
in such Right Certificate and in this Agreement.  Without limiting the foregoing or any remedies
available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of
this Agreement, and will be entitled to specific performance of the obligations
under, and injunctive relief against actual or threatened violations of the
obligations of any Person subject to, this Agreement.

 

Section 16.             Agreement of Right Holders.  Every holder of a Right, by accepting the
same, consents and agrees with the Company and the Rights Agent and with every
other holder of a Right that:

 

(a)           prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Shares;

 

(b)           after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the Designated Office of the Rights Agent, duly endorsed or accompanied by a
proper instrument of transfer; and

 

(c)           the Company and the Rights Agent may deem and treat the
person in whose name the Right Certificate (or, prior to the Distribution Date,
the associated Common Shares certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby

 

34

 

(notwithstanding any notations of ownership or
writing on the Right Certificate or the associated Common Shares certificate
made by anyone other than the Company or the Rights Agent) for all purposes
whatsoever, and neither the Company nor the Rights Agent shall be affected by any
notice to the contrary.

 

Section 17.             Right Certificate Holder Not
Deemed a Stockholder.  No holder, as
such, of any Right Certificate shall be entitled to vote, receive dividends or
be deemed for any purpose the holder of the Preferred Shares or any other
securities of the Company which may at any time be issuable on the exercise of
the Rights represented thereby, nor shall anything contained herein or in any
Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Right Certificate shall have been exercised in accordance
with the provisions hereof.

 

Section 18.             Concerning the Rights Agent.  The Company agrees to pay to the Rights Agent
reasonable compensation for all services rendered by it hereunder, and, from
time to time, on demand of the Rights Agent, its reasonable expenses and counsel
fees and other disbursements incurred in the administration of this Agreement
and the exercise and performance of its duties hereunder.  The Company also agrees to indemnify the
Rights Agent for, and to hold it harmless against, any loss, liability, damage,
judgment, fine, penalty, claim, demand, settlement, cost or expense incurred
without gross negligence, bad faith or willful misconduct on the part of the
Rights Agent, for any action taken, suffered or omitted by the Rights Agent in

 

35

 

connection with the acceptance, amendment and
administration of this Agreement, including without limitation the costs and
expenses of defending against any claim of liability arising therefrom directly
or indirectly in the premises.

 

The
Rights Agent shall be authorized and protected and shall incur no liability
for, or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Right Certificate
or certificate for the Preferred Shares or Common Shares or for other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper person or persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof.

 

Section 19.             Merger or Consolidation or
Change of Name of Rights Agent.  Any
Person into which the Rights Agent or any successor Rights Agent may be merged
or with which it may be consolidated, or any Person resulting from any merger
or consolidation to which the Rights Agent or any successor Rights Agent shall
be a party, or any Person succeeding to the shareholder services business of
the Rights Agent or any successor Rights Agent, shall be the successor to the
Rights Agent under this Agreement without the execution or filing of any paper
or any further act on the part of any of the parties hereto; provided
that such Person would be eligible for appointment as a successor Rights Agent
under the provisions of Section 21 hereof. 
In case at the time such successor Rights Agent shall succeed to the
agency created by this Agreement, any of the Right Certificates shall have been
countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and, in case at that time any of the Right

 

36

 

Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights
Agent; and, in all such cases, such Right Certificates shall have the full
force provided in the Right Certificates and in this Agreement.

 

In
case at any time the name of the Rights Agent shall be changed and at such time
any of the Right Certificates shall have been countersigned but not delivered,
the Rights Agent may adopt the countersignature under its prior name and
deliver Right Certificates so countersigned; and, in case at that time any of
the Right Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name; and, in all such cases, such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

 

Section 20.             Duties of Rights Agent.  The Rights Agent undertakes the duties and
obligations expressly imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

 

(a)           The Rights Agent may consult with legal counsel (who may
be legal counsel for the Company), and the advice or opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent as
to any action taken, suffered or omitted by it in accordance with such advice
or opinion.

 

(b)           Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter (including, but not limited to, the identity of any Acquiring Person and
the determination of current market price of

 

37

 

any security) be proved or established by the
Company prior to taking, suffering or omitting any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a
certificate signed by any one of the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Treasurer or the Secretary of
the Company and delivered to the Rights Agent; and such certificate shall be full
authorization and protection to the Rights Agent for any action taken or
suffered or omitted by it under the provisions of this Agreement in reliance
upon such certificate.

 

(c)           The Rights Agent shall be liable hereunder to the Company
and any other Person only for its own gross negligence, bad faith or willful
misconduct and that of its officers, directors and employees.

 

(d)           The Rights Agent shall not be liable for or by reason of
any of the statements of fact or recitals contained in this Agreement or in the
Right Certificates (except its countersignature thereof) or be required to
verify the same, but all such statements and recitals are and shall be deemed
to have been made by the Company only.

 

(e)           The Rights Agent shall not be under any liability or
responsibility in respect of the validity of this Agreement or the execution
and delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible or liable for any breach
by the Company of any covenant or condition contained in this Agreement or in
any Right Certificate; nor shall it be responsible or liable for any change in
the exercisability of the Rights (including the Rights becoming null and void
pursuant to Section 11(a)(ii) hereof) or any 

 

38

 

adjustment in the terms of the Rights (including the
manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or
24 hereof, or the ascertaining of the existence of facts that would require any
such change or adjustment (except with respect to the exercise of Rights
evidenced by Right Certificates after actual notice that such change or
adjustment is required); nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any
Preferred Shares to be issued pursuant to this Agreement or any Right
Certificate or as to whether any Preferred Shares will, when issued, be validly
authorized and issued, fully paid and nonassessable.

 

(f)            The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and assurances as may
reasonably be required by the Rights Agent for the carrying out or performing
by the Rights Agent of the provisions of this Agreement.

 

(g)           The Rights Agent is hereby authorized and directed to
accept instructions with respect to the performance of its duties hereunder
from any one of the Chairman of the Board, the Chief Executive Officer, the
President, any Vice President, the Secretary or the Treasurer of the Company,
and to apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken or suffered or omitted
by it in accordance with instructions of any such officer or for any delay in
acting while waiting for those instructions.

 

(h)           The Rights Agent and any stockholder, director, affiliate,
officer or employee of the Rights Agent may buy, sell or deal in any of the
Rights or other securities of the Company or become pecuniarily interested in
any transaction in which the Company may be 

 

39

 

interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement.  Nothing herein
shall preclude the Rights Agent from acting in any other capacity for the
Company or for any other Person.

 

(i)            The Rights Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights Agent shall not
be answerable or accountable for any act, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company resulting from any such
act, default, neglect or misconduct, provided that reasonable care was
exercised in the selection and continued employment thereof.

 

Section 21.             Change of Rights Agent.  The Rights Agent or any successor Rights
Agent may resign and be discharged from its duties under this Agreement upon 30
days’ notice in writing mailed to the Company and to each transfer agent of the
Common Shares or Preferred Shares by registered or certified mail, and to the
holders of the Right Certificates by first-class mail.  The Company may remove the Rights Agent or
any successor Rights Agent upon 30 days’ notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each
transfer agent of the Common Shares or Preferred Shares by registered or
certified mail, and to the holders of the Right Certificates by first-class
mail.  If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. 
If the Company shall fail to make such appointment within a period of 30
days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated
Rights Agent or by the holder of a Right Certificate (which holder shall, with
such notice, submit such holder’s Right Certificate for inspection by the
Company), then the registered holder of any 

 

40

 

Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent.  Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be (i) a Person organized and
doing business and in good standing under the laws of any state of the United
States, so long as such Person is authorized under such laws to exercise all of
the duties of the Rights Agent under this Agreement and is subject to
supervision or examination by federal or state authority and which has at the
time of its appointment as Rights Agent a combined capital and surplus of at
least $50 million or (ii) an Affiliate of such Person.  After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver
any further assurance, conveyance, act or deed necessary for the purpose.  Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Shares or
Preferred Shares, and mail a notice thereof in writing to the registered
holders of the Right Certificates. 
Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of
the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

 

Section 22.             Issuance of New Right
Certificates.  Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such form
as may be approved by the Board of Directors of the Company to reflect any
adjustment or change in the Purchase Price and the 

 

41

 

number or kind or class of shares or other
securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement.

 

Section 23.             Redemption.  (a) The Board of Directors of the
Company may, at its option, at any time prior to such time as any Person
becomes an Acquiring Person, redeem all but not less than all the then
outstanding Rights at a redemption price of $0.001 per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter
referred to as the “Redemption Price”). 
The redemption of the Rights by the Board of Directors of the Company
may be made effective at such time, on such basis and with such conditions as
the Board of Directors of the Company, in its sole discretion, may establish.

 

(b)         Immediately
upon the action of the Board of Directors of the Company ordering the
redemption of the Rights pursuant to paragraph (a) of this
Section 23, and without any further action and without any notice, the
right to exercise the Rights will terminate and the only right thereafter of
the holders of Rights shall be to receive the Redemption Price.  The Company shall promptly give public notice
of any such redemption; provided, however, that the failure to
give, or any defect in, any such notice shall not affect the validity of such
redemption.  Within 10 days after such
action of the Board of Directors of the Company ordering the redemption of the
Rights, the Company shall mail a notice of redemption to all the holders of the
then outstanding Rights at their last addresses as they appear upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the transfer agent for the Common Shares.  Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice.  Each such notice of redemption
will state the method by which the payment of the Redemption Price will be
made.  Neither the Company 

 

42

 

nor
any of its Affiliates or Associates may redeem, acquire or purchase for value
any Rights at any time in any manner other than that specifically set forth in
this Section 23 or in Section 24 hereof, and other than in connection
with the purchase of Common Shares prior to the Distribution Date.

 

Section 24.             Exchange.  (a) The Board of Directors of the
Company may, at its option, at any time after any Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become null and void pursuant to the
provisions of Section 7(e) and/or Section 11(a)(ii) hereof)
for Common Shares at an exchange ratio of one Common Share per Right,
appropriately adjusted to reflect any adjustment in the number of Rights
pursuant to Section 11(i) (such exchange ratio being hereinafter
referred to as the “Exchange Ratio”). 
Notwithstanding the foregoing, the Board of Directors of the Company
shall not be empowered to effect such exchange at any time after any Person
(other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or any such Subsidiary, or any entity holding Common Shares
for or pursuant to the terms of any such plan), together with all Affiliates
and Associates of such Person, becomes the Beneficial Owner of 50% or more of
the Common Shares then outstanding.

 

(b)           Immediately upon the action of the Board of Directors of
the Company ordering the exchange of any Rights pursuant to paragraph (a) of
this Section 24 and without any further action and without any notice, the
right to exercise such Rights shall terminate and the only right thereafter of
the holders of such Rights shall be to receive that number of Common Shares
equal to the number of such Rights held by such holder multiplied by the Exchange
Ratio.  The Company shall promptly give
public notice of any such exchange; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of
such exchange.  

 

43

 

The Company promptly shall mail a notice of any such
exchange to the Rights Agent and to all of the holders of such Rights at their
last addresses as they appear upon the registry books of the Rights Agent.  Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice.  Each such notice of exchange
will state the method by which the exchange of the Common Shares for Rights
will be effected, and, in the event of any partial exchange, the number of
Rights which will be exchanged.  Any
partial exchange shall be effected pro rata based on the number of Rights
(other than Rights which have become null and void pursuant to the provisions
of Section 7(e) and/or Section 11(a)(ii) hereof) held by
each holder of Rights.

 

(c)           In the event that there shall not be sufficient Common
Shares issued but not outstanding or authorized but unissued to permit any
exchange of Rights as contemplated in accordance with this Section 24, the
Company shall take all such action as may be necessary to authorize additional
Common Shares for issuance upon exchange of the Rights.  In the event the Company shall, after good
faith effort, be unable to take all such action as may be necessary to
authorize such additional Common Shares, the Company shall substitute, for each
Common Share that would otherwise be issuable upon exchange of a Right, a
number of Preferred Shares or fraction thereof such that the current per share
market price of one Preferred Share multiplied by such number or fraction is
equal to the current per share market price of one Common Share as of the date
of issuance of such Preferred Shares or fraction thereof.

 

(d)           The Company shall not be required to issue fractions of
Common Shares or to distribute certificates which evidence fractional Common
Shares.  In lieu of such fractional
Common Shares, the Company shall pay to the registered holders of the Right
Certificates with regard to which such fractional Common Shares would otherwise
be issuable an amount in cash 

 

44

 

equal to the same fraction of the current market
value of a whole Common Share.  For the
purposes of this paragraph (d), the current market value of a whole Common
Share shall be the closing price of a Common Share (as determined pursuant to
the second sentence of Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of exchange pursuant to this Section 24.

 

Section 25.             Notice of Certain Events.  (a) In case the Company shall, at any
time after the Distribution Date, propose (i) to pay any dividend payable
in stock of any class to the holders of the Preferred Shares or to make any
other distribution to the holders of the Preferred Shares (other than a regular
quarterly cash dividend), (ii) to offer to the holders of the Preferred
Shares rights or warrants to subscribe for or to purchase any additional
Preferred Shares or shares of stock of any class or any other securities,
rights or options, (iii) to effect any reclassification of the Preferred
Shares (other than a reclassification involving only the subdivision of
outstanding Preferred Shares), (iv) to effect any consolidation or merger
into or with, or to effect any sale or other transfer (or to permit one or more
of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and
its Subsidiaries (taken as a whole) to, any other Person, (v) to effect
the liquidation, dissolution or winding up of the Company, or (vi) to
declare or pay any dividend on the Common Shares payable in Common Shares or to
effect a subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares),
then, in each such case, the Company shall give to the Rights Agent and to each
holder of a Right Certificate, in accordance with Section 26 hereof, a
notice of such proposed action, which shall specify the record date for the
purposes of such stock dividend, or distribution of rights or warrants, or the
date on which such reclassification, 

 

45

 

consolidation, merger, sale, transfer, liquidation,
dissolution, or winding up is to take place and the date of participation
therein by the holders of the Common Shares and/or Preferred Shares, if any
such date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (i) or (ii) above at least 10 days
prior to the record date for determining holders of the Preferred Shares for
purposes of such action, and, in the case of any such other action, at least 10
days prior to the date of the taking of such proposed action or the date of
participation therein by the holders of the Common Shares and/or Preferred
Shares, whichever shall be the earlier.

 

(b)           In case the event set forth in Section 11(a)(ii) hereof
shall occur, then the Company shall, as soon as practicable thereafter, give to
each holder of a Right Certificate, in accordance with Section 26 hereof,
a notice of the occurrence of such event, which notice shall describe such
event and the consequences of such event to holders of Rights under Section 7(e) and/or
Section 11(a)(ii) hereof.

 

Section 26.             Notices.  Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of any Right
Certificate to or on the Company shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

 

Red
Robin Gourmet Burgers, Inc.

6312
S. Fiddler’s Green Circle, Suite 200N

Greenwood
Village, CO 80111

 

Subject to the provisions of Section 21 hereof, any
notice or demand authorized by this Agreement to be given or made by the
Company or by the holder of any Right Certificate to or on the Rights Agent
shall be sufficiently given or made if sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Company)
as follows:

 

46

 

American
Stock Transfer & Trust Company, LLC

6201
15th Avenue

Brooklyn,
New York 11219

Attention:
Issac Kagan

 

Notices or demands authorized by this Agreement to be given
or made by the Company or the Rights Agent to the holder of any Right
Certificate shall be sufficiently given or made if sent by first-class mail,
postage prepaid, addressed to such holder at the address of such holder as
shown on the registry books of the Company.

 

Section 27.             Supplements and Amendments.  The Company may from time to time supplement
or amend this Agreement without the approval of any holders of Right
Certificates in order to cure any ambiguity, to correct or supplement any
provision contained herein which may be defective or inconsistent with any
other provisions herein, or to make any other provisions with respect to the
Rights which the Company may deem necessary or desirable, any such supplement
or amendment to be evidenced by a writing signed by the Company and the Rights
Agent; provided, however, that, from and after such time as any
Person becomes an Acquiring Person, this Agreement shall not be amended in any
manner which would adversely affect the interests of the holders of Rights.

 

Section 28.             Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

 

Section 29.             Benefits of This Agreement.  Nothing in this Agreement shall be construed
to give to any Person other than the Company, the Rights Agent and the
registered holders of the Right Certificates (and, prior to the Distribution
Date, the Common Shares) any legal or equitable right, remedy or claim under
this Agreement; but this Agreement shall be for

 

47

 

the sole and exclusive benefit of the Company, the
Rights Agent and the registered holders of the Right Certificates (and, prior
to the Distribution Date, the Common Shares).

 

Section 30.             Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

 

Section 31.             Governing Law.  This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such state applicable to contracts to be made and
performed entirely within such state.

 

Section 32.             Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 

Section 33.             Determinations and Actions
by the Board of Directors.  The
Board of Directors shall have the exclusive power and authority to administer
this Agreement and to exercise all rights and powers specifically granted to
the Board of Directors or to the Company, or as may be necessary or advisable
in the administration of this Agreement, including the right and power to (a) interpret
the provisions of this Agreement and (b) make all determinations deemed
necessary or advisable for the administration of this Agreement (including a
determination to redeem or exchange or not to redeem or exchange the Rights or
to amend the Agreement). All such actions, calculations, interpretations and
determinations (including, for 

 

48

 

purposes of clause (y) below, all omissions
with respect to the foregoing) that are done or made by the Board of Directors
in good faith shall (x) be final, conclusive and binding on the Company,
the Rights Agent, the holders of the Rights and all other parties and
(y) not subject the Board of Directors to any liability to the holders of
the Common Shares or the Rights. The Rights Agent is entitled always to assume
the Company’s Board of Directors acted in good faith and shall be fully
protected and incur no liability in reliance thereon.

 

Section 34.             Descriptive Headings.  Descriptive headings of the several Sections
of this Agreement are inserted for convenience only and shall not control or
affect the meaning or construction of any of the provisions hereof.

 

49

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and attested, all as of the day and year first above written.

 

	
  Attest:

  	
   

  	
  RED
  ROBIN GOURMET BURGERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  /s/
  Katherine L. Scherping

  	
   

  	
  By

  	
  /s/
  Annita M. Menogan

  
	
  Name:

  	
  Katherine
  L. Scherpring

  	
   

  	
  Name:

  	
  Annita
  M. Menogan

  
	
  Title:

  	
  Chief
  Financial Officer

  	
   

  	
  Title:

  	
  Senior
  Vice President and Chief Legal Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  AMERICAN
  STOCK TRANSFER & TRUST COMPANY, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/
  Cindy Kaim

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Cindy
  Kaim

  	
   

  	
  By

  	
  /s/
  Issac J. Kagan

  
	
  Title:

  	
  Assistant
  Vice President

  	
   

  	
  Name:

  	
  Isaac
  J. Kagan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

50

 

Exhibit A

 

FORM

 

of

 

CERTIFICATE OF DESIGNATIONS

 

of

 

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

of

 

RED ROBIN GOURMET BURGERS, INC.

 

(Pursuant to Section 151 of the

Delaware General Corporation Law)

 

 

Red
Robin Gourmet Burgers, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware (hereinafter called the “Corporation”),
hereby certifies that the following resolution was adopted by the Board of
Directors of the Corporation as required by Section 151 of the General
Corporation Law at a meeting duly called and held on August 11, 2010:

 

RESOLVED,
that pursuant to the authority granted to and vested in the Board of Directors
of this Corporation (hereinafter called the “Board of Directors” or the “Board”)
in accordance with the provisions of the Certificate of Incorporation, the
Board of Directors hereby creates a series of Preferred Stock, par value $0.001
per share, of the Corporation (the “Preferred Stock”), and hereby states the
designation and number of shares, and fixes the relative rights, preferences,
and limitations thereof as follows:

 

Series A
Junior Participating Preferred Stock:

 

Section 1.  Designation and Amount.  The shares of such series shall be designated
as “Series A Junior Participating Preferred Stock” (the “Series A
Preferred Stock”) and the number of shares constituting the Series A
Preferred Stock shall be 16,710.  Such
number of shares may be increased or decreased by resolution of the Board of
Directors; provided, that no decrease shall reduce the number of shares
of Series A Preferred Stock to a number less than the number of shares
then outstanding plus the number of shares reserved for issuance upon the
exercise of outstanding options, rights or warrants or upon the conversion of
any outstanding securities issued by the Corporation convertible into
Series A Preferred Stock.

 

A-1

 

Section 2.  Dividends and Distributions.

 

(A)          Subject to the
rights of the holders of any shares of any series of Preferred Stock (or any
similar stock) ranking prior and superior to the Series A Preferred Stock
with respect to dividends, the holders of shares of Series A Preferred
Stock, in preference to the holders of Common Stock, par value $0.001 per share
(the “Common Stock”), of the Corporation, and of any other junior stock, shall
be entitled to receive, when, as and if declared by the Board of Directors out
of funds legally available for the purpose, quarterly dividends payable in cash
on the first day of March, June, September and December in each year
(each such date being referred to herein as a “Quarterly Dividend Payment Date”),
commencing on the first Quarterly Dividend Payment Date after the first
issuance of a share or fraction of a share of Series A Preferred Stock, in
an amount per share (rounded to the nearest cent) equal to the greater of (a) $1
or (b) subject to the provision for adjustment hereinafter set forth,
1,000 times the aggregate per share amount of all cash dividends, and 1,000
times the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions, other than a dividend payable in shares of
Common Stock or a subdivision of the outstanding shares of Common Stock (by
reclassification or otherwise), declared on the Common Stock since the
immediately preceding Quarterly Dividend Payment Date or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Preferred Stock.  In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case the amount to which
holders of shares of Series A Preferred Stock were entitled immediately
prior to such event under clause (b) of the preceding sentence shall
be adjusted by multiplying such amount by a fraction, the numerator of which is
the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

 

(B)           The Corporation
shall declare a dividend or distribution on the Series A Preferred Stock
as provided in paragraph (A) of this Section immediately after
it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock); provided that, in the event no
dividend or distribution shall have been declared on the Common Stock during
the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $1 per share on the
Series A Preferred Stock shall nevertheless be payable on such subsequent
Quarterly Dividend Payment Date.

 

(C)           Dividends shall
begin to accrue and be cumulative on outstanding shares of Series A
Preferred Stock from the Quarterly Dividend Payment Date next preceding the
date of issue of such shares, unless the date of issue of such shares is prior
to the record date for the first Quarterly Dividend Payment Date, in which case
dividends on such shares shall begin to accrue from the date of issue of such
shares, or unless the date of issue is a Quarterly Dividend Payment Date or is
a date after the record date for the 

 

A-2

 

determination
of holders of shares of Series A Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be cumulative from
such Quarterly Dividend Payment Date. 
Accrued but unpaid dividends shall not bear interest.  Dividends paid on the shares of Series A
Preferred Stock in an amount less than the total amount of such dividends at
the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding.  The Board of Directors may fix a record date
for the determination of holders of shares of Series A Preferred Stock
entitled to receive payment of a dividend or distribution declared thereon,
which record date shall be not more than 60 days prior to the date fixed for
the payment thereof.

 

Section 3.  Voting Rights.  The holders of shares of Series A
Preferred Stock shall have the following voting rights:

 

(A)          Subject to the
provision for adjustment hereinafter set forth, each share of Series A
Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters
submitted to a vote of the stockholders of the Corporation.  In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of
Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case the number of votes
per share to which holders of shares of Series A Preferred Stock were
entitled immediately prior to such event shall be adjusted by multiplying such
number by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

 

(B)           Except as
otherwise provided herein, in any other Certificate of Designations creating a
series of Preferred Stock or any similar stock, or by law, the holders of
shares of Series A Preferred Stock and the holders of shares of Common
Stock and any other capital stock of the Corporation having general voting
rights shall vote together as one class on all matters submitted to a vote of
stockholders of the Corporation.

 

(C)           Except as set
forth herein, or as otherwise provided by law, holders of Series A
Preferred Stock shall have no special voting rights and their consent shall not
be required (except to the extent they are entitled to vote with holders of
Common Stock as set forth herein) for taking any corporate action.

 

Section 4.  Certain Restrictions.

 

(A)          Whenever
quarterly dividends or other dividends or distributions payable on the
Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on 

 

A-3

 

shares
of Series A Preferred Stock outstanding shall have been paid in full, the
Corporation shall not:

 

(i)            declare or pay dividends, or make any other
distributions, on any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Preferred
Stock;

 

(ii)           declare or pay dividends, or make any other
distributions, on any shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the
Series A Preferred Stock, except dividends paid ratably on the
Series A Preferred Stock and all such parity stock on which dividends are
payable or in arrears in proportion to the total amounts to which the holders
of all such shares are then entitled;

 

(iii)          redeem or purchase or otherwise acquire for
consideration shares of any stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Preferred
Stock, provided that the Corporation may at any time redeem, purchase or
otherwise acquire shares of any such junior stock in exchange for shares of any
stock of the Corporation ranking junior (either as to dividends or upon
dissolution, liquidation or winding up) to the Series A Preferred Stock;
or

 

(iv)          redeem or purchase or otherwise acquire for
consideration any shares of Series A Preferred Stock, or any shares of stock
ranking on a parity with the Series A Preferred Stock, except in
accordance with a purchase offer made in writing or by publication (as
determined by the Board of Directors) to all holders of such shares upon such
terms as the Board of Directors, after consideration of the respective annual
dividend rates and other relative rights and preferences of the respective
series and classes, shall determine in good faith will result in fair and
equitable treatment among the respective series or classes.

 

(B)           The Corporation
shall not permit any subsidiary of the Corporation to purchase or otherwise
acquire for consideration any shares of stock of the Corporation unless the
Corporation could, under paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

 

Section 5.  Reacquired Shares.  Any shares of Series A Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof.  All such shares shall upon their cancellation
become authorized but unissued shares of Preferred Stock and may be reissued as
part of a new series of Preferred Stock subject to the conditions and
restrictions on issuance set forth herein, in the Certificate of Incorporation,
or in any other Certificate of Designations creating a series of Preferred
Stock or any similar stock or as otherwise required by law.

 

Section 6.  Liquidation, Dissolution or Winding Up.  Upon any liquidation, dissolution or winding
up of the Corporation, no distribution shall be made (1) to the holders of
shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding 

 

A-4

 

up)
to the Series A Preferred Stock unless, prior thereto, the holders of
shares of Series A Preferred Stock shall have received $1,000 per share,
plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment, provided that the holders
of shares of Series A Preferred Stock shall be entitled to receive an
aggregate amount per share, subject to the provision for adjustment hereinafter
set forth, equal to 1,000 times the aggregate amount to be distributed per share
to holders of shares of Common Stock, or (2) to the holders of shares of
stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series A Preferred Stock, except
distributions made ratably on the Series A Preferred Stock and all such
parity stock in proportion to the total amounts to which the holders of all
such shares are entitled upon such liquidation, dissolution or winding up.  In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of
Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case the aggregate amount
to which holders of shares of Series A Preferred Stock were entitled
immediately prior to such event under the proviso in clause (1) of
the preceding sentence shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to
such event.

 

Section 7.  Consolidation, Merger, Etc.  In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of
Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, then in any such case each share of Series A
Preferred Stock shall at the same time be similarly exchanged or changed into
an amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 1,000 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be, into which or
for which each share of Common Stock is changed or exchanged.  In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of
Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case the amount set forth
in the preceding sentence with respect to the exchange or change of shares of
Series A Preferred Stock shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to
such event.

 

Section 8.  No Redemption.  The shares of Series A Preferred Stock
shall not be redeemable.

 

Section 9.  Rank. 
The Series A Preferred Stock shall rank, with respect to the
payment of dividends and the distribution of assets, junior to all series of
any other class of the Corporation’s Preferred Stock.

 

A-5

 

Section 10.  Amendment.  The Certificate of Incorporation of the
Corporation shall not be amended in any manner which would materially alter or
change the powers, preferences or special rights of the Series A Preferred
Stock so as to affect them adversely without the affirmative vote of the
holders of at least two-thirds of the outstanding shares of Series A
Preferred Stock, voting together as a single class.

 

IN
WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the
Corporation by its Senior Vice President and Chief Legal Officer this 11th day of August, 2010

 

	
   

  	
   

  
	
   

  	
  Annita
  M. Menogan, Senior Vice President and

  Chief Legal Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Secretary

  	
   

  

 

A-6

 

Exhibit B

 

Form of Right Certificate

 

	
  Certificate
  No. R-

  	
  Rights

  

 

NOT
EXERCISABLE AFTER AUGUST 11, 2011 OR EARLIER IF REDEMPTION OR EXCHANGE
OCCURS.  THE RIGHTS ARE SUBJECT TO
REDEMPTION AT $.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE
AGREEMENT.

 

Right Certificate

 

RED ROBIN GOURMET BURGERS, INC.

 

This
certifies that
              ,
or registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Agreement, dated as of August 11, 2010
(the “Agreement”), between Red Robin Gourmet Burgers, Inc., a Delaware
corporation (the “Company”), and American Stock Transfer & Trust
Company, LLC (the “Rights Agent”), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Agreement) and
prior to 5:00 P.M., New York City time, on August 11, 2011 at the
designated office of the Rights Agent, or at the office of its successor as
Rights Agent, one one-thousandth of a fully paid non-assessable share of
Series A Junior Participating Preferred Stock, par value $0.001 per share,
of the Company (the “Preferred Shares”), at a purchase price of $ 110.00 per
one one-thousandth of a Preferred Share (the “Purchase Price”), upon
presentation and surrender of this Right Certificate with the Form of
Election to Purchase duly executed.  The
number of Rights evidenced by this Right Certificate (and the number of one
one-thousandths of a Preferred Share which may be purchased upon exercise
hereof) set forth above, and the Purchase Price set forth above, are the number
and Purchase Price as of August 11, 2010, based on the Preferred Shares as
constituted at such date.  As provided in
the Agreement, the Purchase Price and the number of one one-thousandth of a
Preferred Share which may be purchased upon the exercise of the Rights
evidenced by this Right Certificate are subject to modification and adjustment
upon the happening of certain events.

 

This
Right Certificate is subject to all of the terms, provisions and conditions of
the Agreement, which terms, provisions and conditions are hereby incorporated
herein by reference and made a part hereof and to which Agreement reference is
hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company
and the holders of the Right Certificates. 
Copies of the Agreement are on file at the principal executive offices
of the Company and the offices of the Rights Agent.

 

This
Right Certificate, with or without other Right Certificates, upon surrender at
the designated office of the Rights Agent, may be exchanged for another Right
Certificate or

 

B-1

 

Right
Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of Preferred Shares as the Rights evidenced by
the Right Certificate or Right Certificates surrendered shall have entitled
such holder to purchase.  If this Right
Certificate shall be exercised in part, the holder shall be entitled to receive
upon surrender hereof another Right Certificate or Right Certificates for the
number of whole Rights not exercised.

 

Subject
to the provisions of the Agreement, the Rights evidenced by this Right
Certificate (i) may be redeemed by the Company at a redemption price of $.001
per Right or (ii) may be exchanged in whole or in part for Preferred Shares or
shares of the Company’s Common Stock, par value $0.001 per share.

 

No
fractional Preferred Shares will be issued upon the exercise of any Right or
Rights evidenced hereby (other than fractions which are integral multiples of
one one-thousandth of a Preferred Share, which may, at the election of the
Company, be evidenced by depositary receipts), but, in lieu thereof, a cash
payment will be made, as provided in the Agreement.

 

No
holder of this Right Certificate shall be entitled to vote or receive dividends
or be deemed for any purpose the holder of the Preferred Shares or of any other
securities of the Company which may at any time be issuable on the exercise
hereof, nor shall anything contained in the Agreement or herein be construed to
confer upon the holder hereof, as such, any of the rights of a stockholder of
the Company or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in the Agreement), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by this Right Certificate shall have been exercised as
provided in the Agreement.

 

This
Right Certificate shall not be valid or obligatory for any purpose until it
shall have been countersigned by the Rights Agent.

 

WITNESS
the facsimile signature of the proper officers of the Company and its corporate
seal. Dated as of         ,
          .

 

	
  ATTEST:

  	
   

  	
  RED
  ROBIN GOURMET BURGERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
   

  	
  Title:

  
	
  Countersigned:  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AMERICAN
  STOCK TRANSFER & TRUST COMPANY, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

B-2

 

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if such 

holder desires to transfer the Right Certificate.)

 

FOR
VALUE RECEIVED
                              
hereby sells, assigns and transfers unto                                                

 

 

(Please
print name and address of transferee)

 

this
Right Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint
           Attorney, to
transfer the within Right Certificate on the books of the within-named Company,
with full power of substitution.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  

 

 

Signature
Guaranteed:

 

All
Guarantees must be made by a financial institution (such as a bank or broker)
which is a participant in the Securities Transfer Agents Medallion Program (“STAMP”),
the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”), or the
Stock Exchanges Medallion Program (“SEMP”) and must not be dated. Guarantees by
a notary public are not acceptable.

 

The
undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate
or Associate thereof (as defined in the Agreement).

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

Form
of Reverse Side of Right Certificate — continued

 

B-3

 

FORM OF ELECTION TO PURCHASE

 

(To be executed if holder desires to exercise 

Rights represented by the Right Certificate.)

 

To:  RED ROBIN GOURMET BURGERS, INC.

 

The
undersigned hereby irrevocably elects to exercise
                  
Rights represented by this Right Certificate to purchase the Preferred Shares
issuable upon the exercise of such Rights and requests that certificates for
such Preferred Shares be issued in the name of:

 

Please
insert social security or other identifying number

 

 

(Please print name and address)

 

 

If
such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

 

Please
insert social security or other identifying number

 

 

(Please print name and address)

 

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  

 

Signature
Guaranteed:

 

All
Guarantees must be made by a financial institution (such as a bank or broker)
which is a participant in the Securities Transfer Agents Medallion Program (“STAMP”),
the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”), or the
Stock Exchanges Medallion Program (“SEMP”) and must not be dated. Guarantees by
a notary public are not acceptable.

 

The
undersigned hereby certifies that the Rights evidenced by this Right
Certificate are not beneficially owned by an Acquiring Person or an Affiliate
or Associate thereof (as defined in the Agreement).

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

B-4

 

NOTICE

 

The
signature in the Form of Assignment or Form of Election to Purchase, as the
case may be, must conform to the name as written upon the face of this Right
Certificate in every particular, without alteration or enlargement or any
change whatsoever.

 

In
the event the certification set forth above in the Form of Assignment or the
Form of Election to Purchase, as the case may be, is not completed, the Company
and the Rights Agent will deem the beneficial owner of the Rights evidenced by
this Right Certificate to be an Acquiring Person or an Affiliate or Associate
thereof (as defined in the Agreement) and such Assignment or Election to
Purchase will not be honored. 

 

B-5

 

Exhibit C

 

SUMMARY OF RIGHTS TO PURCHASE PREFERRED SHARES

 

Introduction

 

On
August 11, 2010, the Board of Directors of our Company, Red Robin Gourmet
Burgers, Inc., a Delaware corporation, declared a dividend of one preferred
share purchase right (a “Right”) for each outstanding share of common stock,
par value $0.001 per share.  The dividend
is payable on August 23, 2010 to the stockholders of record on August 23, 2010.

 

Our
Board has adopted this Rights Agreement to protect stockholders from coercive
or otherwise unfair takeover tactics.  In
general terms, it works by imposing a significant penalty upon any person or
group that acquires 15% or more of our outstanding common stock without the
approval of our Board.  The Rights
Agreement should not interfere with any merger or other business combination
approved by our Board.

 

For
those interested in the specific terms of the Rights Agreement as made between
our Company and American Stock Transfer & Trust Company, LLC, as the Rights
Agent, on August 11, 2010, we provide the following summary description.  Please note, however, that this description
is only a summary, and is not complete, and should be read together with the
entire Rights Agreement, which has been filed with the Securities and Exchange
Commission as an exhibit to a Registration Statement on Form 8-A dated August
12, 2010.  A copy of the agreement is
available free of charge from our Company.

 

The Rights.  The Rights will initially trade with, and
will be inseparable from, the common stock. 
The Rights are evidenced only by certificates that represent shares of
common stock and not by separate certificates. 
New Rights will accompany any new shares of common stock we issue after
August 23, 2010 until the earlier of Distribution Date described below and the
redemption or expiration of the rights.

 

Exercise Price.  Each Right will allow its holder to purchase
from our Company one one-thousandth of a share of Series A Junior
Participating Preferred Stock (“Preferred Share”) for $110.00, once the Rights
become exercisable.  This portion of a
Preferred Share will give the stockholder approximately the same dividend,
voting, and liquidation rights as would one share of common stock.  Prior to exercise, the Right does not give
its holder any dividend, voting, or liquidation rights.

 

Exercisability.  The Rights will not be exercisable until

 

·                  10 days after
the public announcement that a person or group has become an “Acquiring Person”
by obtaining beneficial ownership of 15% or more of our outstanding common
stock, or, if earlier,

 

·                  10 business
days (or a later date determined by our Board before any person or group
becomes an Acquiring Person) after a person or group begins a 

 

C-1

 

tender
or exchange offer which, if completed, would result in that person or group
becoming an Acquiring Person.

 

We
refer to the date when the Rights become exercisable as the “Distribution Date.”
Until that date, the common stock certificates will also evidence the Rights,
and any transfer of shares of common stock will constitute a transfer of
Rights.  After that date, the Rights will
separate from the common stock and be evidenced by book-entry credits or by
Rights certificates that we will mail to all eligible holders of common
stock.  Any Rights held by an Acquiring
Person are void and may not be exercised.

 

Consequences Of A Person Or Group Becoming An Acquiring
Person.

 

·                  Flip
In.  If a person or group becomes
an Acquiring Person, all holders of Rights except the Acquiring Person may, for
$110.00 purchase shares of our common stock with a market value of $220.00,
based on the market price of the common stock prior to such acquisition.

 

·                  Flip
Over.  If our Company is later
acquired in a merger or similar transaction after the Rights Distribution Date,
all holders of Rights except the Acquiring Person may, for $110.00, purchase
shares of the acquiring corporation with a market value of $220.00 based on the
market price of the acquiring corporation’s stock, prior to such merger.

 

Preferred Share Provisions.

 

Each
one one-thousandth of a Preferred Share, if issued:

 

·                  will not be
redeemable.

 

·                  will entitle
holders to quarterly dividend payments of $.001 per share, or an amount equal
to the dividend paid on one share of common stock, whichever is greater.

 

·                  will entitle
holders upon liquidation either to receive $1 per share or an amount equal to
the payment made on one share of common stock, whichever is greater.

 

·                  will have the
same voting power as one share of common stock.

 

·                  if shares of
our common stock are exchanged via merger, consolidation, or a similar
transaction, will entitle holders to a per share payment equal to the payment
made on one share of common stock.

 

The
value of one one-thousandth interest in a Preferred Share should approximate
the value of one share of common stock.

 

Expiration.  The Rights will expire on August 11, 2011.

 

C-2

 

Redemption.  Our Board may redeem the Rights for $.001 per
Right at any time before any person or group becomes an Acquiring Person.  If our Board redeems any Rights, it must
redeem all of the Rights.  Once the
Rights are redeemed, the only right of the holders of Rights will be to receive
the redemption price of $.001 per Right. 
The redemption price will be adjusted if we have a stock split or stock
dividends of our common stock.

 

Exchange.  After a person or group becomes an Acquiring
Person, but before an Acquiring Person owns 50% or more of our outstanding
common stock, our Board may extinguish the Rights by exchanging one share of
common stock or an equivalent security for each Right, other than Rights held
by the Acquiring Person.

 

Anti-Dilution Provisions.  Our Board may adjust the purchase price of
the Preferred Shares, the number of Preferred Shares issuable and the number of
outstanding Rights to prevent dilution that may occur from a stock dividend, a
stock split, a reclassification of the Preferred Shares or common stock.  No adjustments to the Exercise Price of less
than 1% will be made.

 

Amendments.  The terms of the Rights Agreement may be
amended by our Board without the consent of the holders of the Rights.  After a person or group becomes an Acquiring
Person, our Board may not amend the agreement in a way that adversely affects
holders of the Rights.

 

C-3Exhibit
10.1

 

Execution Copy

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”)
is made as of this 11th day of August, 2010 (the “Agreement Date”),
by and between RED ROBIN GOURMET BURGERS, INC., a Delaware corporation (the “Company”),
and STEPHEN E. CARLEY (“Executive”).

 

RECITAL

 

WHEREAS, on August 11, 2010, the Board of Directors (of the
Company appointed Stephen Carley as the Chief Executive Officer of the Company
and as a member of the Board effective on the Effective Date (as defined below);

 

WHEREAS, on August 11, 2010, the Compensation Committee of
the Board (the “Compensation Committee”) approved and authorized the
entry into this Agreement and the equity award grants specified in Section
3(d)(i) below with Executive; and

 

WHEREAS, the parties desire to enter into this Agreement
setting forth the terms and conditions for the employment relationship between
Executive and the Company.

 

NOW, THEREFORE, in consideration of the promises and mutual
covenants and agreements herein contained and intending to be legally bound
hereby, the Company and Executive hereby agree as follows:

 

AGREEMENT

 

1.                                       Employment
Period.  The Company, through its
wholly-owned subsidiary, Red Robin International, Inc., a Nevada corporation (“RRI”),
hereby employs Executive, and
Executive hereby accepts such employment, upon the terms and conditions
hereinafter set forth.  The term of
Executive’s employment hereunder shall be deemed to have commenced on September
13, 2010, unless Executive commences employment on an earlier date to be
mutually agreed upon (the “Effective Date”), and shall continue
indefinitely, subject to termination as provided herein (such term being
referred to herein as the “Employment Period”).  RRI shall be the “employer” for tax, legal
reporting, payroll processing and similar purposes.

 

2.                                       Position and
Duties.

 

(a)                                  During the
Employment Period, Executive shall be employed as and hold the title of Chief
Executive Officer of the Company, with such duties, authorities and
responsibilities that are customary for public company chief executive officer
positions.  Executive will be the
principal executive officer of the Company, and shall report to the Company’s
Board of Directors, which will include interfacing with the Chair of the
Company’s Board of Directors, and certain committees of the Board of Directors
and their respective chairpersons from time to time (collectively, the “Board”).  The Board may assign Executive such other
duties, authorities and responsibilities that are not inconsistent with his
position as Chief Executive Officer of the Company.  Executive shall also become a member of the
Board as of the Effective Date. 
Thereafter, during the Employment Period, the Board shall nominate

 

 

Executive for re-election as a member of the Board
at the expiration of the then current term, provided that the foregoing
shall not be required to the extent prohibited by legal or regulatory
requirements, or the current provisions of Section 6E of the Company’s
Certificate of Incorporation as in effect at any time or from time to
time.  During the Employment Period,
Executive shall report only to the Board and all employees of the Company, RRI
and the Company’s subsidiaries shall report to Executive or his designee.

 

(b)                                 During the
Employment Period, Executive shall devote substantially all of his skill,
knowledge and working time to the business and affairs of the Company and its
subsidiaries; provided that in no event shall this sentence prohibit Executive
from (i) performing personal, charitable, civic, educational, professional,
community or industry activities (ii) serving on the boards of directors of
non-profit organizations and, with the prior written approval of the Board,
other for profit companies, and (iii) managing Executive’s passive personal
investments, so long as such activities do not materially and adversely
interfere with Executive’s duties for the Company or otherwise violate the
terms and conditions of this Agreement or the Company’s policies in effect from
time to time applicable to executive officers of the Company.  Executive shall perform his services at the
Company’s headquarters, presently located in Greenwood Village, Colorado.

 

(c)                                  In his position
as Chief Executive Officer, Executive shall, subject to the oversight of the
Board and the “Authorization Limits” established from time to time by
the Board, have full authority and responsibility to manage the operation of
the Company’s restaurants and franchise system, including the hiring and
discharge of employees of the Company and its subsidiaries, closing, selling,
developing and opening restaurants as contemplated by the annual budget
approved by the Board (the “Annual Plan”), establishing and
administering the Company’s marketing plan, making improvements in and
refurbishing the Company’s restaurants consistent with the capital expenditure
budget in the Annual Plan, administering and managing the day-to-day operation
of the restaurants, granting new franchises and administering and managing the
franchise operations consistent with the Annual Plan.

 

3.                                       Compensation.

 

(a)                                  Base Salary.  During the Employment Period, Executive shall
receive from the Company an annual base salary at the rate of $700,000, with
such salary to be adjusted at such times, if any, and in such amounts as determined
by the Board; provided, however, Executive’s annual base salary,
even after any increases, shall not be decreased without Executive’s prior
written consent unless the annual salaries of all other Executive Officers are
proportionately decreased, but in no event shall the annual base salary be
decreased (i) by more than ten percent (10%) from Executive’s highest annual
base salary; (ii) on or following a Change in Control Event (as defined below
but without any termination requirement applying for purposes of this clause
(ii)); or (iii) during the one (1) year period commencing with the Effective
Date.  Executive’s
annual base salary shall be subject to annual review for increases by the Board
during the Employment Term.  The Company
shall pay the annual base salary to Executive in accordance with the Company’s
and RRI’s normal payroll policy.  The
annual base salary as determined herein from time to time shall constitute “Annual
Base Salary” for purposes of this Agreement.

 

2

 

(b)                                 Signing Bonus.  Within ten business days following the
Effective Date, the Company shall pay Executive a signing bonus in an amount of
$550,000 (the “Signing Bonus”); provided, however, Executive shall repay
the gross amount of the Signing Bonus ($550,000) if, prior to December 31,
2010, (i) Executive resigns without Good Reason or, (ii) is terminated for
Cause.

 

(c)                                  Annual
Incentive Compensation.  In
addition to the Annual Base Salary, Executive is eligible to receive an annual
cash bonus each fiscal year during the Employment Period as determined in
accordance with the Company’s annual incentive plan and as approved by the
Compensation Committee (the “Annual Bonus”).  For each fiscal year during the Employment
Period, the Annual Bonus shall be targeted at not less than 100% of Executive’s
Annual Base Salary (as prorated for partial years) (the “Target Bonus”).  The actual amount of any Annual Bonus shall
depend on the level of achievement of the applicable performance criteria
established with respect to the Annual Bonus by the Board and the Compensation
Committee in their good faith discretion. 
The Annual Bonus shall be paid during the first complete calendar year
immediately following the fiscal year to which the Annual Bonus relates.

 

(d)                                 Equity Awards.

 

(i)                                     Inducement
Grant.  On the Effective Date, the
Company will grant the following equity awards to Executive pursuant to the
Company’s Amended and Restated 2007 Performance Incentive Plan (the “Plan”):
(A) performance-based restricted stock units having a target value of $400,000;
(B) a number of non-qualified stock options that have a grant date fair value
of $550,000, which shall vest as follows: (x) 25% on the one-year anniversary
of the Effective Date; and (y) thereafter in equal monthly installments over
the following three years; and (C) 20,000
time-vested restricted stock units, of which 25% shall vest on each of the
first, second, third and fourth anniversaries of the Effective Date. The
terms and conditions of such performance-based restricted stock units,
time-vested restricted stock units and stock options will be substantially the
same as the terms and conditions of comparable awards made under the Plan
except as follows: (a) the stock price used to calculate appreciation under the
performance-based restricted stock unit agreement shall be equal to the closing
price of the Company’s common stock on The NASDAQ Global Select Market on the
Effective Date; (b) the options shall expire within seven years from the date
of grant; (c) any limitation with respect to 280G of the Internal Revenue Code
of 1986, as amended (the “Code”) in the Plan or in any equity grant
agreement shall not apply except as provided in Section 21 hereof; and (d) any
time-vesting and/or continued service requirements of such performance-based
restricted stock units, time-vested restricted stock units and stock options
shall 50% vest upon a termination of Executive’s employment by the Company
without Cause or by Executive for Good Reason within the first twelve months
following the Effective Date.

 

(ii)                                  Annual Equity Awards.  During the Employment Period, Executive shall
be eligible to receive annual equity awards customarily granted in the first
quarter of each fiscal year.  Annual
equity awards granted under the Plan (or any successor plan), if any, shall
only be made by the Compensation Committee in its good faith discretion.  The 2011 annual equity grant shall have a
grant date fair value of not

 

3

 

less than
$400,000.  All future annual equity
awards granted to Executive may be contingent on the attaintment of certain
performance criteria established with respect to such award by the
Compensation Committee in its good faith discretion.

 

(e)                                  Other Benefits.

 

(i)                                     Welfare and
Benefit Plans.  During the
Employment Period: (i) Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs of
the Company and RRI to the same extent as other senior executive employees,
including, among other things, participation in the Company’s Non-Qualified
Deferred Compensation Plan; and (ii) Executive and/or Executive’s family, as
the case may be, shall be eligible to participate in, and shall receive all
benefits under, all welfare benefit plans, practices, policies and programs
provided by the Company and RRI (including, to the extent provided, without
limitation, medical, prescription, dental, disability, salary continuance,
employee life insurance, group life insurance, accidental death and travel
accident insurance plans and programs) to the same extent as other senior
executive employees.

 

(ii)                                  Expenses.  During the Employment Period, Executive shall
be entitled to receive prompt reimbursement for all reasonable travel and other
expenses incurred by Executive in carrying out Executive’s duties under this
Agreement, provided that Executive complies with the policies, practices and
procedures of the Company and RRI for submission of expense reports, receipts
or similar documentation of the incurrence and purpose of such expenses
(collectively referred to herein as “Expense Policies”).

 

(iii)                               Automobile
Allowance.  During the
Employment Period, Executive shall be paid a car allowance in the gross amount
of $15,000 annually, which shall be payable in monthly installments.

 

(iv)                              Payment of
Legal Fees.  The Company
shall pay or Executive shall be reimbursed for his reasonable legal fees
incurred in connection with negotiating and drafting this Agreement up to a
maximum of $30,000.

 

(v)                                 Moving and
Relocation Expenses.  It is
expected that Executive shall reside permanently in the Denver, Colorado
metropolitan area on or before the date which is six months from the Effective
Date.  Employer will pay on Executive’s
behalf relocation expenses as set forth below (inclusive of the Relocation
Gross-Up (as defined below)) (“Relocation Expenses”), subject to
Employer’s customary payroll practices and legal requirements regarding
withholding.  The Company shall also
provide Executive with a tax gross-up for applicable federal, state and local
taxes paid by Executive in connection with the reimbursement provided under
this Section 3(e)(v) and the tax gross-up payment itself (the “Relocation
Gross-Up”).  The Relocation Gross-Up
shall be paid no later than April 15th of the year following the year to which
such taxable income relates.  The
Relocation Expenses shall include (i) any brokerage commissions incurred in the
sale of Executive’s current home (up to 6% of the sales price of Executive’s
current home), (ii) new loan financing fees, (iii) up to one “point on a new
mortgage loan, and 

 

4

 

(iv) other costs associated
with buying or selling a home in an amount not to exceed $30,000.  In addition, Relocation Expenses shall be
provided for (i) reasonable expenses actually incurred by Executive to move
personal effects from Los Angeles, California to the Denver, Colorado
metropolitan area, (ii) reasonable costs
incurred for four round trips to Denver, Colorado from Los Angeles, California
to search for a home, and (iii) reimbursement for rent, electricity, gas
and water expenses actually incurred by Executive for interim housing in the
Denver, Colorado metropolitan area for a period of up to six months commencing
on the Effective Date or such earlier date as Executive is no longer incurring
such interim housing expenses. 
Notwithstanding the foregoing, Relocation Expenses shall not include “loss
on sale” protection for Executive’s current home.  The Company’s total reimbursement obligation
in respect of the Relocation Expenses shall not exceed $425,000.  If Executive terminates his employment
without Good Reason or is terminated by the Company for Cause prior to December
31, 2011, Executive shall be required to repay the Company the gross amount of
the Relocation Expenses incurred pursuant to this Section 3(e)(v) within
forty-five days of the termination date. 
Executive shall submit promptly to the Company receipts and other
applicable documentation evidencing the Relocation Expenses, and the Company
shall remit payment for such Relocation Expenses in accordance with its
standard accounts payable practices, but in any event no later than one month
after the date Executive submits such documentation.

 

(vi)                              Vacation.  Executive shall be entitled to no less than
four (4) weeks of paid vacation per calendar year (as prorated for partial
years) in accordance with the Company’s policy on accrual and use applicable to
executive officers as in effect from time to time.

 

(f)                                    Reservation of
Rights.  The Company reserves the right
to modify, suspend or discontinue any and all of the employee benefit plans,
practices, policies and programs referenced in subsections (e)(i) and (ii)
above at any time without recourse by Executive so long as such action is taken
with respect to senior executives generally and does not single out Executive.

 

4.                                       Termination.

 

(a)                                  Death or
Disability.  Executive’s
employment shall terminate automatically upon Executive’s death.  If the Company determines in good faith that
the Disability of Executive has occurred, it may give to Executive written
notice of its intention to terminate Executive’s employment.  In such event, Executive’s employment with
the Company shall terminate effective on the 30th day after receipt of such
notice by Executive, provided that, within the 30 days after such receipt,
Executive shall not have returned to full-time performance of his duties.

 

(b)                                 Cause.  The Company may terminate Executive’s
employment at any time for Cause.

 

5

 

(c)                                  By the Company
without Cause.  The Company
may terminate Executive’s employment at any time without Cause by delivery of
not less than thirty (30) days’ advance written notice to Executive of the
effective date of termination.

 

(d)                                 By Executive
for Good Reason.  Executive
may terminate his employment at any time for Good Reason by delivery of not
less than thirty (30) days’ advance written notice to the Company of the
effective date of termination.

 

(e)                                  Change in
Control Event.  Executive’s
employment shall terminate upon the occurrence of a Change in Control Event.

 

(f)                                    Obligations of
the Company Upon Termination.

 

(i)                                     Death or
Disability.  If
Executive’s employment is terminated by reason of Executive’s Death or
Disability, Executive (or his legal representative or estate, if applicable)
shall receive: (A) payment of (1) Executive’s Annual Base Salary and any
accrued but unused vacation through the date of termination to the extent not
theretofore paid and reimbursement for any unreimbursed business expenses
incurred through the date of termination, payable within 30 days of the
effective date of termination; (2) any compensation previously deferred by
Executive (together with any accrued interest or earnings thereon) payable
pursuant to, and at such times as provided for by, such deferred compensation
plan, program or policy; and (3) any payments, benefits or fringe benefits to
which Executive shall be entitled under the terms of any applicable
compensation arrangement or benefit, equity or fringe benefit plan or program
or grant or this Agreement, payable at such times as provided for by such plan,
program or grant (the payments and benefits described clauses (1), (2) and (3)
shall be hereinafter referred to as the “Accrued Obligations”); (B) any
Annual Bonus earned but unpaid with respect to the fiscal year ending on or
preceding the date of termination, payable at the time such Annual Bonus would
have been paid if Executive was still employed with the Company; and (C)
payment on the next Annual Bonus payment date immediately following the end of
the fiscal year of the effective date of termination, payable at the time such
Annual Bonus would have been paid if Executive was still employed with the
Company, of a pro rata share (determined on the basis of the number of days
during which Executive was employed by the Company during the applicable fiscal
year prior to the effective date of termination) of the Annual Bonus that would
otherwise have been earned and be payable pursuant to Section 3(c) hereof had
Executive continued to be employed by the Company on such Annual Bonus payment
date.

 

(ii)                                  Cause or
Resignation other than with Good Reason.  If Executive’s employment is terminated by
the Company for Cause or Executive resigns without Good Reason, this Agreement
shall terminate without further obligations to Executive other than for the
payment of Accrued Obligations at the time or times described therefor in
Section 4(f)(i).  If it is subsequently
determined that the Company did not have Cause for termination hereof or that
Executive had Good Reason for termination, then the decision to terminate shall
be deemed to have been made under Section 4(c) or Section 4(d) hereof,
respectively, and the amounts payable under Section 4(f)(iii) hereof shall be
the only amounts Executive may receive on account of his termination.

 

6

 

(iii)                               Upon Change in
Control Event, by the Company without Cause or for Good Reason.  If Executive’s employment terminates upon the
occurrence of a Change in Control Event, the Company terminates Executive’s
employment for any reason other than for Cause (but not including death or
Disability) or Executive terminates his employment for Good Reason, this
Agreement shall terminate without further obligations to Executive other than:

 

(A)                              payment of (1)
Accrued Obligations at the time or times described therefor in Section 4(f)(i)
and (2) any Annual Bonus earned but unpaid with respect to the fiscal year
ending on or preceding the date of termination, payable at the time such Annual
Bonus would have been paid if Executive was still employed with the Company;

 

(B)                                (1) upon a
Change in Control Event, a severance payment equal to two (2) times the sum of
(x) Executive’s Annual Base Salary and (y) the highest Annual Bonus amount
earned by Executive for performance in the last three completed calendar years
prior to the Change in Control Event for which bonuses have been paid or are payable
(which Annual Bonus may be in the aggregate if Executive has earned more than
one bonus payment for such calendar year), payable in a lump sum on the
sixtieth (60th) day following the effective date of termination, provided,
however, if the Change in Control Event occurs in 2010 or 2011, then the amount
payable under this subparagraph (y) shall be based on Executive’s Target Bonus;
or (2) upon a termination by Executive for Good Reason or by the Company other
than for Cause (and that is not a Change in Control Event), a severance payment
equal to two times Executive’s Annual Base Salary, payable in a lump sum on the
sixtieth (60th) day following the effective date of termination;

 

(C)                                on the next
Annual Bonus payment date immediately following the end of the fiscal year of
the effective date of termination, payable at the time such Annual Bonus would
have been paid if Executive was still employed with the Company, of the pro
rata share (determined on the basis on the number of days during which Executive
served the Company during the applicable fiscal year prior to the effective
date of termination) of the Annual Bonus that would otherwise have been earned
and be payable had Executive continued to be employed by the Company on such
Annual Bonus payment date, subject in each case to standard withholdings and
other authorized deductions; and

 

(D)                               monthly
payments (or reimbursement to Executive) of the cost of continuing coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or otherwise,
if COBRA does not apply, for Executive and his spouse under the Company’s and
RRI’s then existing medical, dental and prescription insurance plans for a
period of eighteen (18) months, provided that Executive elects such continuing
coverage in accordance with the requirements of each such plan (provided that
during any period when Executive is eligible to receive such benefits under any
employer-provided plan 

 

7

 

or through any
government-sponsored program such as Medicare, the benefits provided under this
clause (D) may be made secondary to those provided under such other plan);

 

provided, however,
that as conditions precedent to receiving the payments and benefits provided
for in this Section 4(f)(iii) (other than payment of the Accrued Obligations),
Executive shall execute and deliver to the Company and RRI a general release
agreement substantially in the form attached hereto as Exhibit A within
fifty (50) days of such termination and not revoke within the seven day
revocation period thereafter, and all rights of Executive thereunder or under
applicable law to rescind or revoke the release shall have expired; and provided,
further, to the extent
payment of any amount of the payments described in this Section 4(f)(iii)
constitutes “nonqualified deferred compensation” for purposes of Section 409A
of the Code, any such payment scheduled to occur during the first sixty (60)
days following the termination of employment shall not be paid until the
sixtieth (60th) day following such termination of employment and shall include
payment of any amount that was otherwise scheduled to be paid prior thereto.

 

(iv)                              Exclusive
Remedy.  Executive agrees that the
payments contemplated by this Section 4(f) shall constitute the exclusive and
sole remedy for any termination of his employment, and Executive covenants not
to assert or pursue any other remedies,
at law or in equity, with respect to any termination of employment; provided,
however, that nothing contained in this Section 4(f)(iv) shall prevent
Executive from otherwise challenging in a subsequent arbitration proceeding a
determination by the Company that it was entitled to terminate Executive’s
employment hereunder for Cause.

 

(v)                                 No Mitigation;
No Offset.  In no event
shall Executive be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to Executive under any of the
provisions of this Agreement, nor shall the amount of any payment hereunder be
reduced by any compensation earned by the Executive as a result of employment
by a subsequent employer, except as provided in Section 4(f)(iii)(D).

 

(g)                                 Survival of
Certain Obligations Following Termination.  Notwithstanding any other provision contained
in this Agreement, the provisions in this Section 4, Sections 5 through 11 and
14 through 22 of this Agreement shall survive any termination of Executive’s
employment hereunder (but shall be subject to Executive’s right to receive the
payments and benefits provided under this Section 4).

 

5.                                       Confidential
Information.  Except in
the good-faith performance of his duties hereunder, Executive shall not
disclose to any person or entity or use, any information not in the public
domain, in any form, acquired by Executive while he was employed or associated
with the Company or RRI or, if acquired following the termination of such
association, such information which, to Executive’s knowledge, has been
acquired, directly or indirectly, from any person or entity owing a duty of
confidentiality to the Company or RRI, relating to the Company or its
business.  The foregoing shall not apply
to information that (i) was known to the public prior to 

 

8

 

its disclosure to Executive; (ii) becomes generally
known to the public subsequent to disclosure to Executive through no wrongful
act of Executive or any representative of Executive; or (iii) Executive is
required to disclose by applicable law, regulation or legal process.  Executive agrees and acknowledges that all of
such information, in any form, and copies and extracts thereof are and shall
remain the sole and exclusive property of the Company, and Executive shall on
request return to the Company the originals and all copies of any such information
provided to or acquired by Executive in connection with his association with
the Company or RRI, and shall return to the Company all files, correspondence
and/or other communications received, maintained and/or originated by Executive
during the course of such association.

 

6.                                       Covenant Not to
Compete.  Executive agrees that, (i) for
the period commencing on the Agreement Date and ending twelve (12) months after
the date of termination of Executive’s employment, Executive shall not, in the
Territory (hereinafter defined), directly or indirectly, either for himself or
for, with or through any other Person, own, manage, operate, control, be
employed by, participate in, loan money to or be connected in any manner with,
or permit his name to be used by, any business that competes with the Company
and its subsidiaries in the casual dining restaurant business or (ii) for the
period commencing on the Agreement Date and ending twenty-four (24) months
after the date of termination of Executive’s employment, Executive shall not,
in the Territory, directly or indirectly, either for himself or for, with or
through any other Person, own, manage, operate, control, be employed by,
participate in, loan money to or be connected in any manner with, or permit his
name to be used by, any of the following companies or restaurant concepts:  Chili’s, Applebees, TGI Fridays, Ruby Tuesday
and any “fast casual” burger concept, including, without limitation,
Smashburger, Five Guys, The Counter, Fuddruckers or Old School Burger (in the
case of (i) or (ii), a “Competitive Activity”).  For purposes of this Agreement, the term “participate”
includes any direct or indirect interest, whether as an officer, director,
employee, partner, sole proprietor, trustee, beneficiary, agent, representative,
independent contractor, consultant, advisor, provider of personal services,
creditor, owner (other than by ownership of less than five percent of the stock
of a publicly-held corporation whose stock is traded on a national securities
exchange or in the NASD National Market (a “Public Company”).  “Territory” means North America and
the territories of the United States in the Caribbean, including Puerto
Rico.  Notwithstanding the foregoing, the
provisions of this Section 6 shall not be violated by Executive providing
services to a subsidiary, division or unit of any entity that engages in a
business in competition with the
Company or any of its subsidiaries so long as such subsidiary, division or unit
to which Executive provides services does not engage in the Competitive
Activity.

 

7.                                       No Interference.  Except in the good faith performance of his
duties hereunder, during the period commencing on the Agreement Date and ending
two (2) years following the date of termination of Executive’s employment,
Executive shall not, without the prior written approval of the Company,
directly or indirectly through any other Person (i) induce or attempt to induce
any employee of the Company or RRI at the level of assistant store manager or
higher to leave the employ of the Company or RRI, or in any way interfere with
the relationship between the Company or RRI and any employee thereof, (ii) hire
any Person who was an employee of the Company or RRI at the level of assistant
store manager or higher within twelve months after such Person’s employment
with the Company or RRI was terminated for any reason or (iii) induce or
attempt to induce any supplier or other business relation of the Company or RRI
to cease doing business with the Company or RRI, or in any way interfere with the
relationship 

 

9

 

between any such supplier or business relation and
the Company or RRI. Notwithstanding the foregoing, the provisions of this
Section 7 shall not be violated by (a) general advertising or solicitation not
specifically targeted at Company-related persons or entities, (b) Executive
serving as a reference, upon request, for any employee of the Company or any of
its subsidiaries or affiliates, or
(c) actions taken by any person or entity with which Executive is
associated if Executive is not personally involved in any manner in the matter,
does not serve as a reference and has not identified such Company-related
person or entity for soliciting or hiring.

 

8.                                       Return of
Documents.  In the
event of the termination of Executive’s employment following the Agreement Date
for any reason, Executive shall deliver to the Company all of (i) the property
of the Company or any of its subsidiaries, and (ii) non-personal documents and
data of any nature and in whatever medium of the Company or any of its
subsidiaries, and he shall not take with him any such property, documents or
data or any reproduction thereof, or any documents containing or pertaining to
any Confidential Information.  Executive
may retain Executive’s rolodex and similar address books provided that such
items only include contact information.

 

9.                                       Reasonableness
of Restrictions.  Executive
agrees that the covenants set forth in Sections 5, 6, 7 and 8 are reasonable
with respect to their duration, geographical area and scope.  In the event that any of the provisions of
Sections 5, 6, 7 and 8 relating to the geographic or temporal scope of the
covenants contained therein or the nature of the business or activities
restricted thereby shall be declared by a court of competent jurisdiction to
exceed the maximum restrictiveness such court deems enforceable, such provision
shall be deemed to be replaced herein by the maximum restriction deemed
enforceable by such court.  In addition,
any covenants pursuant to any equity award agreement or equity incentive plan,
including without limitation, the Plan, that is greater in duration,
geographical area and scope of the covenants set forth in Section 5, 6, 7 and 8
shall not apply to Executive and shall only apply to Executive to the extent
such covenants are consistent with Sections 5, 6, 7 and 8 with respect to their
duration, geographical area and scope.

 

10.                                 Injunctive
Relief.  The parties hereto agree that
the Company would suffer irreparable harm from a breach by Executive of any of
the covenants or agreements contained herein, for which there is no adequate
remedy at law.  Therefore, in the event
of the actual or threatened breach by Executive of any of the provisions of
this Agreement, the Company, or its respective successors or assigns, may, in
addition and supplementary to other rights and remedies existing in their
favor, apply to any court of law or equity of competent jurisdiction for
specific performance, injunctive or other relief in order to enforce compliance
with, or prevent any violation of, the provisions hereof; and that, in the
event of such a breach or threat thereof, the Company shall be entitled to
obtain a temporary restraining order and/or a preliminary or permanent
injunction restraining Executive from engaging in activities prohibited hereby
or such other relief as may be required to specifically enforce any of the
covenants contained herein.

 

11.                                 Extension of
Restricted Periods.  In addition
to the remedies the Company may seek and obtain pursuant to this Agreement, the
applicable restricted periods set forth herein shall be extended by any and all
periods during which Executive shall be found by a court to have been in
violation of the covenants contained herein.

 

10

 

12.                                 Stock Ownership
Requirement.  While
employed by the Company, Executive shall be expected to maintain ownership of
common stock or stock equivalents having a value equal to approximately 3.5
times his Annual Base Salary in accordance with guidelines established by the
Compensation Committee from time to time. 
For purposes of these guidelines, stock ownership includes shares over
which Executive has direct or indirect ownership or control. Stock equivalents
for this purpose include vested restricted share units but do not include
unvested restricted share units subject to a performance requirement.  Executive is expected to meet this ownership
requirement within five years after the Effective Date.  In the event Executive is unable to meet the
foregoing ownership requirements within five years of the Effective Date,
Executive shall retain all net after tax profit shares following option
exercise and/or the vesting of restricted stock units until Executive has
satisfied the requirements set forth in this Section 12.  No additional liability shall apply to
Executive if Executive fails to satisfy the stock ownership requirements set
forth in this Section 12.

 

13.                                 Physical Exam.  Executive shall be required, on an annual
basis, to undergo a physical examination and to send evidence that Executive
has undergone such exam (but in no case the results of such exam) to the Chair
of the Board.  The Company shall
reimburse Executive for any out-of-pocket expenses relating to the physical
examination that are not otherwise covered by Executive’s health insurance
plan.

 

14.                                 Definitions.  As used herein, unless the context otherwise
requires, the following terms have the following respective meanings:

 

“Cause” means with respect to the termination
by the Company of Executive as an employee of the Company:

 

(i)                                     Executive’s
continual, deliberate neglect in the performance of his material duties;

 

(ii)                                  Executive’s
material failure to devote substantially all of his working time to the
business of the Company and its subsidiaries (other than as expressly permitted
in this Agreement)

 

(iii)                               Executive’s
willful failure to follow the lawful directives of the Board in any material
respect, provided, that such directives are consistent with this
Agreement;

 

(iv)                              Executive’s
engaging willfully in misconduct in connection with the performance of any of
his duties, including, without limitation, falsifying or attempting to falsify
documents, books or records of the Company or its subsidiaries,
misappropriating or attempting to misappropriate funds or other property, or
securing or attempting to secure any personal profit in connection with any
transaction entered into on behalf of the Company or its subsidiaries;

 

(v)                                 the violation
by Executive, in any material respect, of any written policies, codes and
standards of behavior and conduct generally applicable to employees of the
Company or its subsidiaries;

 

11

 

(vi)                              Executive’s
material breach of the provisions of this Agreement or any other
non-competition, non-interference, non-disclosure, confidentiality or other
similar agreement executed by Executive with the Company or any of its
subsidiaries or other active disloyalty in a material manner to the Company or
any of its subsidiaries;

 

(vii)                           Executive’s
engaging in willful misconduct with respect to any material aspect of the
business of the Company; or

 

(viii)                        The indictment
for, conviction of, or pleading of guilty or nolo  contendere to,
a felony or any crime involving moral turpitude;

 

provided, however,
Executive will not be deemed to have been terminated for Cause in the case of
clauses (i), (ii), (iv) and (v) above, unless any such failure or
material breach is not fully corrected prior to the expiration of the ten (10) business
day period following delivery to Executive of the Company’s written notice that
specifies in detail of the alleged Cause event(s) and the Company’s
intention to terminate his employment for Cause.

 

“Change in Control Event”
means:

 

(i)                                     The acquisition
by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than
50% or more of either (1) the then-outstanding shares of common stock of
the Company (the “Outstanding Company Common Stock”) or (2) the combined
voting power of the then-outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that, for purposes of this
definition, any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any affiliate of the Company or a
successor shall not constitute a Change in Control Event;

 

(ii)                                  In the event
the Board is a classified board, a majority of the individuals who serve in the
same class of directors that constitute the Board as of the Effective Date (the
“Incumbent Board”) cease for any reason to constitute at least a
majority of that class of directors, or in the event the Board is not a
classified board, members of the Incumbent Board cease for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the Effective Date whose election,
or nomination for election by the Company’s stockholders, was approved by a
vote of at least two-thirds of the directors then comprising the Incumbent
Board (including for these purposes, the new members whose election or
nomination was so approved, without counting the member and his predecessor
twice) shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board;

 

12

 

(iii)                               Consummation of
a reorganization, merger, statutory share exchange or consolidation or similar
corporate transaction involving the Company or any of its Subsidiaries, a sale
or other disposition of all or substantially all of the assets of the Company,
or the acquisition of assets or stock of another entity by the Company or any
of its Subsidiaries (each, a “Business Combination”), in each case
unless, following such Business Combination, (A) all or substantially all
of the individuals and entities that were the beneficial owners of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the then-outstanding shares of common stock and
the combined voting power of the then-outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the entity
resulting from such Business Combination (including, without limitation, an
entity that, as a result of such transaction, owns the Company or all or
substantially all of the Company’s assets directly or through one or more
subsidiaries (a “Parent”)) in substantially the same proportions as
their ownership immediately prior to such Business Combination of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (B) no Person (excluding any entity resulting from
such Business Combination or a Parent or any employee benefit plan (or related
trust) of the Company or such entity resulting from such Business Combination
or Parent) beneficially owns, directly or indirectly, more than 50% of,
respectively, the then-outstanding shares of common stock of the entity
resulting from such Business Combination or the combined voting power of the
then-outstanding voting securities of such entity, except to the extent that
the ownership in excess of more than 50% existed prior to the Business
Combination, and (C) at least a majority of the members of the board of
directors or trustees of the entity resulting from such Business Combination or
a Parent were members of the Incumbent Board at the time of the execution of
the initial agreement or of the action of the Board providing for such Business
Combination; or

 

(iv)                              Approval by the
stockholders of the Company of a complete liquidation or dissolution of the
Company;

 

provided, however, that any of the foregoing events
shall constitute a Change in Control Event only if Executive’s
employment with the Company as Chief Executive Officer is involuntarily
terminated for a reason other than Cause or Executive voluntary terminates for
Good Reason on or within twenty-four (24) months following such Change of
Control Event.

 

“Disability” means the failure of Executive
to have performed Executive’s material duties hereunder due to a physical or
mental injury, infirmity or incapacity for one hundred eighty (180) days
(including weekends and holidays) in any 365-day period.

 

“Good Reason” shall mean the occurrence,
without Executive’s express written consent, of: (i) a material reduction
in Executive’s Annual Base Salary (other than as permitted pursuant to Section 3)
or target Annual Bonus opportunity; (ii) a relocation of the Company’s
headquarters to a location more than fifty (50) miles from the location as
provided in Section 2(b); (iii) any material breach by the Company of
any provision of this Agreement or any material provision of any equity award
agreement, including without limitation, the removal of Executive from the
Board by the Company (other than for Cause), the failure by the Board to

 

13

 

nominate
Executive to serve on the Board as required by Section 2 hereof, a breach
of Section 22(a) hereof or a material reduction in the authority
granted under the Authorization Limits; (iv) Executive being required to
report to another person other than the Board; or (v) a material
diminution in Executive’s title, duties, or responsibilities (other than
temporarily while physically or mentally incapacitated or as required by
applicable law); provided that Executive gives written notice to the Company of
the existence of such a condition within 90 days of the initial existence of
the condition and the Company has at least 30 days from the date when such
notice is provided to cure the condition without being required to make
payments due to termination for Good Reason. 
No termination for Good Reason shall occur after the 180th day following the first occurrence of any Good
Reason event.

 

15.                                 Arbitration.  Any controversy arising out of or relating to
this Agreement, its enforcement or interpretation, or because of an alleged
breach, default, or misrepresentation in connection with any of its provisions,
or any other controversy arising out of Executive’s employment, including, but
not limited to, any state or federal statutory claims, shall be submitted to
arbitration in Denver, Colorado, before a sole arbitrator selected from Judicial
Arbiter Group, Inc., Denver, Colorado, or its successor (“JAG”), or
if JAG is no longer able to supply the arbitrator, such arbitrator shall be
selected from the Judicial Arbitration and Mediation Services, Inc. (“JAMS”),
or other mutually agreed upon arbitration provider, as the exclusive forum for
the resolution of such dispute. 
Provisional injunctive relief may, but need not, be sought by either
party to this Agreement in a court of law while arbitration proceedings are
pending, and any provisional injunctive relief granted by such court shall
remain effective until the matter is finally determined by the Arbitrator
unless such relief is terminated by a court of law or the Arbitrator.  Final resolution of any dispute through
arbitration may include any remedy or relief which the Arbitrator deems just
and equitable, including any and all remedies provided by applicable state or
federal statutes.  At the conclusion of
the arbitration, the Arbitrator shall issue a written decision that sets forth
the essential findings and conclusions upon which the Arbitrator’s award or
decision is based.  Any award or relief
granted by the Arbitrator hereunder shall be final and binding on the parties
hereto and may be enforced by any court of competent jurisdiction.  The parties acknowledge and agree that they
are hereby waiving any rights to trial by jury in any action, proceeding or
counterclaim brought by either of the parties against the other in connection
with any matter whatsoever arising out of or in any way connected with this
Agreement or Executive’s employment.  The
parties agree that Company shall be responsible for payment of the forum costs
of any arbitration hereunder, including the Arbitrator’s fee.  Each party shall bear his or its own legal
costs, provided  that if the Arbitrator
determines that the Company has acted in bad faith, then Executive shall be
entitled to the reasonable attorneys’ fees and costs incurred by him in
connection with resolution of the dispute in addition to any other relief granted.  Payments by the Company for Executive’s
reasonable attorneys’ fees and costs, if applicable, shall be made within sixty
(60) days following the date of the Arbitrator’s final non-appealable decision.

 

16.                                 Governing Law.  This Agreement and the legal relations hereby
created between the parties hereto shall be governed by and construed under and
in accordance with the internal laws of the State of Colorado, without regard
to conflicts of laws principles thereof. 
Each Participant shall submit to the venue and personal jurisdiction of
the Colorado state and federal courts concerning any dispute arising from or
relating to the Plan; however the Company is not limited in seeking relief in
those courts.

 

14

 

17.                                 Taxes.  In order to
comply with all applicable federal or state income tax laws or regulations, the
Company may withhold from any payments made under this Agreement all applicable
federal, state, city or other applicable taxes.

 

18.                                 Section 409A
Savings Clause.

 

(a)                                  It is the
intention of the parties that compensation or benefits payable under this
Agreement that are nonqualified deferred compensation under Section 409A
of the Code not be subject to the additional tax imposed pursuant to Section 409A
of the Code and that such payments comply with, or be exempt from Section 409A
of the Code and the Treasury Regulations and guidance promulgated thereunder,
accordingly, to the maximum extent permitted, and that this Agreement shall be
interpreted to be in compliance therewith. 
If Executive notifies the Company (with specificity as to the reason
therefor) that Executive believes that any provision of this Agreement (or of
any award of compensation, including with respect to equity compensation or
benefits) would cause Executive to incur any additional tax or interest under
Code Section 409A  of the Code and
the Company concurs with such belief or the Company independently makes such
determination, the Company shall, after consulting with Executive, reform such provision
to try to comply with Section 409A of the Code through good faith
modifications to the minimum extent reasonably appropriate to conform with Section 409A
of the Code.  To the extent that any
provision hereof is modified in order to comply with Section 409A of the
Code, such modification shall be made in good faith and shall, to the maximum
extent reasonably possible, maintain the original intent and economic benefit
to Executive and the Company of the applicable provision without violating the
provisions of Section 409A of the Code.

 

(b)                                 Notwithstanding anything in this Agreement to the contrary, if on the date
of termination of Executive’s employment with the Company,

 

(i)                                     Executive would not have a separation from service within the meaning of Section 409A
of the Code and the Treasury Regulations thereunder (“Separation From
Service”), and as a result of such termination of employment would receive
any payment that, absent the application of this Section 18(b)(i), would
be subject to additional tax imposed pursuant to Section 409A of the Code,
then such payment shall instead be payable on the date that is the earliest of (A) Executive’s
Separation From Service, (B) the date Executive becomes disabled (within
the meaning of Section 409A(a)(2)(C) of the Code), (C) Executive’s
death, or (D) such other date as will not result in such payment being
subject to such additional tax; and if

 

(ii)                                  Executive is a specified employee within the meaning of Section 409A(a)(2)(B)(i) of
the Code and would receive any payment sooner than 6 months after Executive’s
Separation From Service that, absent the application of this Section 18(b)(ii),
would be subject to additional tax imposed pursuant to Section 409A of the
Code as a result of such status as a specified employee, then such payment
shall instead be payable on the date that is the earliest of (A) 6 months
after Executive’s Separation From Service, (B) Executive’s death, or (C) such
other date as will not result in such payment being subject to such additional
tax.

 

15

 

(c)                                  With regard to
any provision herein that provides for reimbursement of costs and expenses or
the provision of in-kind benefits, except as otherwise permitted by Section 409A
of the Code, (i) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit, (ii) the amount
of expenses eligible for reimbursement or in-kind benefits provided during any
taxable year shall not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other taxable year, provided that the
foregoing clause (ii) shall not be violated with regard to expenses
reimbursed under any arrangement covered by Section 105(b) of the
Code solely because such expenses are subject to a limit related to the period
the arrangement is in effect and (iii) such payments shall be made on or
before the last day of Executive’s taxable year following the taxable year in
which the expense was incurred.  Any tax
gross-up payment as provided herein shall be made in any event no later than
the end of the calendar year immediately following the calendar year in which
Executive remits the related taxes, and any reimbursement of expenses incurred
due to a tax audit or litigation shall be made no later than the end of the
calendar year immediately following the calendar year in which the taxes that
are the subject of the audit or litigation are remitted to the taxing
authority, or, if no taxes are to be remitted, the end of the calendar year
following the calendar year in which the audit or litigation is completed.

 

(d)                                 For purposes of
Section 409A of the Code, Executive’s right to receive any installment
payments pursuant to this Agreement shall be treated as a right to receive a
series of separate and distinct payments and each payment made under this
Agreement (and under any award of compensation, including of  equity compensation or benefits) shall be a
separately identified or designated amount. 
Whenever a payment under this Agreement specifies a payment period with
reference to a number of days (e.g., “payment shall be made within sixty
(60) days following the date of termination”), the actual date of payment
within the specified period shall be within the sole discretion of the Company.

 

19.                                 Entire
Agreement.  This
Agreement (including Exhibits) constitutes and contains the entire agreement
and final understanding concerning Executive’s employment with the Company and
the other subject matters addressed herein between the parties.  It is intended by the parties as a complete
and exclusive statement of the terms of their agreement.  It supersedes and replaces all prior
negotiations and all agreements proposed or otherwise, whether written Or oral,
concerning the subject matter hereof. 
Any representation, promise or agreement not specifically included in
this Agreement shall not be binding upon or enforceable against either
party.  This is a fully integrated
agreement.

 

20.                                 Amendment and
Waiver.  The provisions of this Agreement
may be amended or waived only with the prior written consent of the Board (or a
person expressly authorized thereby) and Executive, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall affect the
validity, binding effect or enforceability of this Agreement.

 

21.                                 Excise Tax
Payment.

 

(a)                                  Anything in
this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to or for the
benefit of Executive (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise)  (a “Payment”) including, by example
and not by way of limitation,

 

16

 

acceleration (by the Company
or otherwise) of the date of vesting or payment under any plan, program,
arrangement or agreement of the Company, would be subject to the excise tax
imposed by Code Section 4999 or any interest or penalties with respect to
such excise tax (such excise tax together with any such interest and penalties,
shall be referred to as the “Excise Tax”), then there shall be made a
calculation under which such Payments provided to Executive are reduced to the
extent necessary so that no portion thereof shall be subject to the Excise Tax
(the “4999 Limit”).  A comparison
shall then be made between (A) Executive’s Net After-Tax Benefit (as
defined below) assuming application of the 4999 Limit; and (B) Executive’s
Net After-Tax Benefit without application of the 4999 Limit.  If (B) exceeds (A) by $50,000 or
more, then no limit on the Payments received by Executive under this Agreement
shall be imposed by this Section 21. 
Otherwise, the amount payable to Executive pursuant to this Agreement
shall be reduced so that no such Payment is subject to the Excise Tax.  “Net
After-Tax Benefit” shall mean the sum of (x) all payments that
Executive receives or is entitled to receive from the Company that are
contingent on a change in the ownership or effective control of the Company or
in the ownership of a substantial portion of the assets of the Company within
the meaning of Code Section 280G(b)(2) (either, a “Section 280G
Transaction”), less (y) the amount of federal, state, local and
employment taxes and Excise Tax (if any) imposed with respect to such payments.

 

(b)                                 All
determinations required to be made under this Section 21, including
whether and when a Payment is cut back pursuant to Section 21(a) and
the amount of such cut-back, and the assumptions to be utilized in arriving at
such determination, shall be made by a certified public accounting firm
designated by the Board and approved by Executive, which approval shall not be
unreasonably withheld (the “Accounting Firm”), which shall provide
detailed supporting calculations both to the Company and Executive.  If the Accounting Firm is serving as
accountant or auditor for the individual, entity or group effecting the Change
in Control Event, the Board shall appoint (subject to Executive’s approval,
which shall not be unreasonably withheld) another nationally recognized
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm
shall be borne solely by the Company.

 

(c)                                  If Payments to
which Executive would otherwise be entitled are reduced such that no portion
thereof is subject to the Excise Tax, then the reduction of the Payments shall
be made by reducing the payments and benefits under the following sections of
this Agreement in the following order: (1) the cancellation of
acceleration of vesting of any equity awards for which the exercise price
exceeds the then fair market value of the underlying equity, (2) from Section 4(f)(iii)(B),
(3) from Section 4(f)(iii)(C), (4) from Section (4)(f)(iii)(D),
and (5) the cancellation of vesting of any equity awards not covered in
clause (1) above, provided, that such acceleration of vesting shall be
cancelled in the reverse order of the date of vesting of such equity awards,
that is, the accelerated vesting of equity awards that vest later shall be
cancelled before equity awards that vest earlier, and provided, further, that
to the extent permitted by Section 409A of the Code and Sections 280G and
4999 of the Code, if a different reduction procedure would be permitted without
violating Section 409A of the Code or losing the benefit of the reduction
under Sections 280G and 4999 of the Code, Executive may designate a different
order of reduction.

 

17

 

22.                                 Miscellaneous.

 

(a)                                  No Assignments.  This Agreement is personal to each of the
parties hereto.  Except as provided in
this Section 22(a) hereof, no party may assign or delegate any rights
or obligations hereunder without first obtaining the written consent of the
other party hereto.  The Company may only
assign this Agreement to any successor to all or substantially all of the
business and/or assets of the Company, provided that the Company shall
require such successor to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement, “Company”
shall mean the Company and any successor to its business and/or assets, which
assumes and agrees to perform the duties and obligations of the Company under
this Agreement by operation of law or otherwise.

 

(b)                                 Indemnification.  The Company shall not amend its by-laws so as
to limit Executive’s rights to indemnification from what currently exists
without Executive’s prior written consent except as otherwise required by law.

 

(c)                                  Binding Effect.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that Executive may not assign
his rights or delegate his obligations hereunder without the prior written
consent of the Company.

 

(d)                                 Notices.  All notices required to be given hereunder
shall be in writing and shall be deemed to have been given if (i) delivered
personally or by documented courier or delivery service, (ii) transmitted
by facsimile during normal business hours or (iii) mailed by registered or
certified mail (return receipt requested and postage prepaid) to the following
listed persons at the addresses and facsimile numbers specified below, or to
such other persons, addresses or facsimile numbers as a party entitled to
notice shall give, in the manner hereinabove described, to the others entitled
to notice:

 

If to the Company, to:

 

Red Robin Gourmet Burgers, Inc.

6312 South Fiddler’s Green Circle, Suite 200N 

Greenwood Village, CO  80111 

Attention:  Chair of the Board of
Directors and General Counsel

Facsimile No.:  303-846-6048

 

18

 

with a copy to:

 

Davis Graham & Stubbs LLP

1550 Seventeenth Street, Suite 500

Denver, Colorado  80202 

Attention: Ronald R. Levine, II 

Facsimile No.:  303-893-1379

 

If to Executive, to:

 

Stephen E. Carley

c/o Red Robin Gourmet Burgers, Inc.

6312 South Fiddler’s Green Circle, Suite 200N 

Greenwood Village, CO  80111

Facsimile No.:  303-846-6048

 

with a copy to:

 

Proskauer Rose LLP

1585 Broadway

New York, New York  10036-8299

Attention: Michael S. Sirkin

Facsimile No.:  212-969-2900

 

If given personally or by documented courier or
delivery service, or transmitted by facsimile, a notice shall be deemed to have
been given when it is received.  If given
by mail, it shall be deemed to have been given on the third business day
following the day on which it was posted.

 

(e)                                  Headings.  The section and other headings contained in
this Agreement are for the convenience of the parties only and are not intended
to be a part hereof or to affect the meaning or interpretation hereof

 

(f)                                    Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

 

(g)                                 Construction.  Each party has cooperated in the drafting and
preparation of this Agreement.  Hence, in
any construction to be made of this Agreement, the same shall not be construed
against any party on the basis that the party was the drafter.

 

(h)                                 Savings Clause.  If any provision of this Agreement or the
application thereof is held invalid, the invalidity shall not affect other
provisions or applications of the Agreement which can be given effect without
the invalid provisions or applications and to this end the provisions of this
Agreement are declared to be severable.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

19

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.

 

	
   

  	
  RED ROBIN GOURMET BURGERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pattye Moore

  
	
   

  	
   

  	
  Pattye Moore, Chair of the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Stephen E. Carley

  
	
   

  	
   

  	
  Stephen E. Carley

  
				

 

20

 

STRICTLY
CONFIDENTIAL

 

EXHIBIT A

 

GENERAL RELEASE

 

1.                                      Definitions.

 

I
intend all words used by this Release to have their plain meanings in ordinary
English.  These terms shall have the
following meanings:

 

A.                                   I, me, my and Releasor mean
me and anyone who has or obtains any legal rights or claims through me.

 

B.                                     Employer
means:  (i) Red Robin
Gourmet Burgers, Inc. and Red Robin International, Inc.
(collectively, the “Company”), (ii) any company related to the Company in
the past or present, (iii) limited to their capacities related to the
Company, the past and present officers, directors, employees, shareholders,
attorneys, agents and representatives of the Company, (iv) any present or
past employee benefit plan sponsored by the Company and/or officers, directors,
trustees, administrators, employees, attorneys, agents and representatives of
such plan, (v) and any person (limited to his or her capacity related to
the Company) who acted on behalf of the Company on instruction from the
Company.

 

C.                                     Employment
Agreement means that certain Employment Agreement dated as of
August 11, 2010, between me and the Company.

 

D.                                    My
claims means all of my rights to any relief of any kind from the Employer,
including but not limited to:

 

1.                                       All claims I
now have, whether or not I now know about such claims, including all claims
arising out of or relating to my past employment with Employer, the termination
of that employment or statements or actions of the Employer including, but not
limited to: breach of contract; defamation; infliction of emotional distress;
wrongful discharge; workers’ compensation retaliation; violation of the Age
Discrimination in Employment Act of 1967; Fair Labor Standards Act; Title VII
of the Civil Rights Act of 1964; the Civil Rights Acts of 1866 and 1871; the
Civil Rights Act of 1991; the Family and Medical Leave Act; the National Labor
Relations Act; The Americans with Disabilities Act; COBRA; ERISA; the
anti-discrimination laws of the state in which I reside and of any other state;
the Wage Claim Act or corresponding statute of the state in which I reside;
and/or any other federal, state or local statute, law, ordinance, regulation,
order or principle of common law;

 

2.                                       All claims I
have now, whether or not I know about the claims, for any type of relief from
the Employer, including, but not limited to, all claims for back pay, front
pay, lost benefits, reinstatement, liquidated damages, punitive damages, and
damages for any alleged breach of contract, any tort claim and any alleged
personal injury or emotional injury or damage; and

 

A-1

 

3.                                       All claims for
attorneys’ fees (except as provided below);

 

but  excluding (i) my
rights to receive payments and benefits pursuant to Section 4(f)(iii) of
my Employment Agreement; (ii) my rights to indemnification (including
advancement of attorneys’ fees) and directors and officers liability insurance;
(iii) my rights as a stockholder of the Company; (iii) my rights to
any payment or benefit under any employee benefit plan, program or policy or
equity incentive plan; and (iv) my rights to any vesting and exercise of
any equity grant pursuant to the terms of such equity grant; and (v) any
payment or reimbursement, including any tax gross-up payment, as provided for in
the Employment Agreement.

 

2.                                      Agreement
to Release My Claims.

 

In exchange for my right to receive payments and
other benefits under Section 4(f)(iii) of my Employment Agreement, I
agree to give up all My Claims against the Employer and give up all other
actions, causes of action, claims or administrative complaints that I have
against the Employer.  I will not bring
any lawsuits or administrative claims against the Employer relating to the
claims that I have released nor will I allow any lawsuits or claims to be
brought or continued on my behalf or in my name.  The money and other consideration I receive
pursuant to Section 4(f)(iii) of my Employment Agreement is a full
and fair payment for the release of My Claims and the Employer does not owe me
anything further for My Claims.  Separate
from this agreement, I will also receive the Accrued Obligations (as
defined in my Employment Agreement).  My
rights to receive the other payments and benefits due under Section 4(f)(iii) of
my Employment Agreement shall be effective only after receipt by the Employer
of this Release, signed by me and properly notarized, and after the expiration
of the seven (7) day revocation period mentioned in Section 5,
below.  I understand that I will not
receive any payments due me under Section 4(f)(iii) of my Employment
Agreement (other than payment of the Accrued Obligations under clause (1) thereof)
if I revoke or rescind this Release, and in any event, until after the seven (7) day
revocation period has expired.

 

I further agree to reimburse the Employer for any
cost; loss; expense, including reasonable attorneys’ fees; awards or judgments
resulting from my failure to perform my obligations under this Release or from
any misstatement or omission I have made in this Release; and

 

3.                                      Additional
Agreement and Understandings.

 

Even though the Employer will pay me to settle and
release My Claims, the Employer does not admit that it is legally obligated to
me, and the Employer denies that it is responsible or legally obligated for My
Claims or that it has engaged in any improper conduct or wrongdoing against me.

 

I have read this Release carefully and understand
its terms.  I am hereby being advised by
the Employer to consult with an attorney prior to signing this Release.  My decision to sign or not to sign this
Release is my own voluntary decision made with full knowledge that the Employer
has advised me to consult with an attorney. 
In agreeing to sign this 

 

A-2

 

Release, I have not relied on any statement or
explanation of my rights or obligations made by the Employer or its attorneys.

 

I am old enough to sign this Release and to be
legally bound by the agreements that I am making.  I represent that I have not filed for
personal bankruptcy or been involved in any personal bankruptcy proceeding
between the time any of My Claims accrued and date of my signature below.  I am legally able and entitled to receive the
entire sum of money being paid to me by the Employer in settlement of My Claims.  I have not assigned or pledged any of My
Claims or any portion of them to any third person.  I am a resident of the State of Colorado and
have executed this Release within the State of Colorado.  I understand and agree that this Release
contains all the agreements between the Employer and me relating to this
settlement, and that it supersedes all prior negotiations and agreements
relating to the subject matter hereof.

 

4.                                      Twenty-One
Day Period to Consider the Release.

 

I understand that I have twenty-one (21) days from
the day that I receive this Release, not counting the day upon which I receive
it, to consider whether I wish to sign this Release.  If I cannot make up my mind in that time, the
Employer may or may not allow more time. 
I acknowledge that if I sign this Release before the end of the
twenty-one (21) day period, it will be my personal, voluntary decision to do
so.

 

5.                                      Seven
Day Period to Rescind the Release.

 

I understand that I may rescind (that is, cancel)
this Release for any reason within seven (7) calendar days after I sign
and deliver it to the Employer.  I
understand that my notice rescinding this agreement must be in writing and
hand-delivered or mailed to the Employer. 
If mailed, my notice rescinding this agreement must be:

 

	
  A.

  	
  Postmarked within seven (7) days after I sign and deliver this
  agreement to the Employer;

  
	
   

  	
   

  
	
  B.

  	
  Properly addressed to:

  	
  Red Robin Gourmet Burgers, Inc.

  
	
   

  	
   

  	
  Red Robin International, Inc.

  
	
   

  	
   

  	
  6312 South Fiddler’s Green Circle, Suite 200 North

  
	
   

  	
   

  	
  Greenwood Village, CO 80111

  
	
   

  	
   

  	
  Attention: Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
  C.

  	
  Sent by certified mail, return receipt requested, postage pre-paid.

  

 

6.                                      Mutual
Non-Disparagement.

 

For three (3) years, (i) I agree that I
will not, directly or indirectly, make or ratify any statement, public or
private, oral or written, to any person that is intended to disparage, either
professionally or personally, the Company or its parents, subsidiaries and
affiliates, past and present, and each of them, as well as its and their
trustees, directors and officers, 

 

A-3

 

agents, attorneys, and employees and (ii) the
Company agrees that the Company and its subsidiaries and its directors and
senior executives will not, directly or indirectly, make or ratify any
statement, public or private, oral or written, to any person that is intended
to disparage, either professionally or personally, me or my professional
reputation.  Nothing herein shall
prohibit any party (1) from disclosing that I am no longer employed by the
Company; (2) from responding truthfully to any governmental investigation,
legal process or inquiry related thereto, (3) from making traditional
competitive statements in the course of promoting a competing business (other
than in violation of Sections 5 or 6 of the Employment Agreement); or (4) from
making a good faith rebuttal of the other party’s untrue or misleading
statement.

 

7.                                      Survival
of Certain Provisions of Employment Agreement.

 

Sections 5 through 22 (excluding Sections 12 and 13)
of the Employment Agreement shall survive the termination of my employment and
are incorporated herein by reference as if fully set forth.

 

8.                                      Choice
of Law.

 

This Release shall be deemed to have been executed
and delivered within the State of Colorado, and my rights and obligations and
the rights and obligations of the Employer hereunder shall be construed and
enforced in accordance with, and governed by, the laws of the State of Colorado
without regard to principles of conflict of laws.

 

9.                                      Arbitration.

 

Any dispute or controversy arising out of
interpretation or enforcement of this Release shall be resolved pursuant to the
terms set forth in Section 15 of the Employment Agreement.

 

10.                               Severability.

 

If any provision of this Release is declared by any
court of competent jurisdiction to be invalid for any reason, such invalidity
shall not affect the remaining provisions. 
On the contrary, such remaining provisions shall be fully severable, and this Release
shall be construed and enforced as if such invalid provisions never had been
inserted in the Release.

 

	
  RELEASOR

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Stephen E. Carley

  	
   

  
	
  Date:

  	
   

  	
   

  
			

 

A-4

 

	
  STATE OF

  	
  )

  
	
  COUNTY OF

  	
  ) ss:

  

 

Subscribed
and sworn to me a Notary Public in and for the state of                                         
by                                         
this                     
day of
                                        ,
20    .

 

	
   

  	
   

  
	
   

  	
  Notary Public in and for the State of                 
  

  
	
   

  	
  My commission expires:

  

 

 

	
  AGREED AND ACCEPTED FOR EMPLOYER:

  	
   

  
	
   

  	
   

  
	
  RED ROBIN GOURMET BURGERS, INC.

  	
   

  
	
  RED ROBIN INTERNATIONAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  

 

A-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]