Document:

Exhibit 10.1

 

January 5,
2010

 

Mr. Massoud Safavi

3009
Amherst Avenue

University
Park, TX 75225

 

RE:          Separation Agreement and Release

 

Dear Massoud:

 

This letter constitutes the
Separation Agreement and Release (the “Agreement”) between you and E. F. Johnson
Company, and its parent, subsidiary and/or affiliated companies, (collectively
referred to as the “Company”), and sets forth the terms of your transitional
duties and separation from employment with the Company.

 

1.         Separation
Date.  Today will be the last day
of your employment with the Company (“Separation Date”). You acknowledge and
agree that, except as provided herein, this Agreement terminates the employment
agreement between you and the Company which was entered November 15, 2007
(the “Employment Agreement”), and satisfies all notice requirements under such
Employment Agreement.  You also hereby
submit your resignation as an officer of the Company,

 

2.         Severance
Pay. 
If you enter into this Agreement and on or within
twenty-one (21) days after the Separation Date you return to the Company
this signed Agreement, and allow it to become effective by not revoking it
under paragraph 10 herein, the Company will pay you Severance Pay equal to eight
(8) months’ base salary in the total gross amount of $216,666.66. Such
payments will be made on the Company’s regularly scheduled paydays for eight (8) months
and are subject to standard payroll deductions and withholdings. These payments
will begin on the first payroll date following the Effective Date of this Agreement
and will continue for eight (8) months thereafter (the “Severance Period”).
You agree that you are not otherwise entitled to this Severance Pay.

 

Notwithstanding the
foregoing, the Company’s obligation to pay the Severance Pay shall cease when
you gain full time employment. You shall have an affirmative obligation to
report any such employment  to the
Company within 30 days of becoming employed to Sandi Knight, VP Human
Resources.  During the Severance Period,
you agree to fully cooperate with the Company in all matters relating to the
transition of your work and responsibilities on behalf of the Company,
including, but not limited to, any business relationships, and the orderly
transfer of your institutional knowledge to such other persons as may be
designated by the Company. You

 

 

also agree to be available
by telephone during reasonable business hours and will respond within a
reasonable time to any inquiries or requests from the Company.

 

3.         Accrued
Salary and Vacation.  By
signing this Agreement, you agree that the Company has paid you all accrued
salary, benefits or other type of remuneration, through the Separation Date,
subject to standard payroll deductions and withholdings with the exception of
your final paycheck and accrued, unused vacation pay. You acknowledge that,
except as expressly provided in this Agreement, you will not receive any
additional compensation (including any base salary, bonus or commissions),
stock options, severance or benefits after the Separation Date, with the sole
exception of any benefit in which you have a vested right pursuant to any
written ERISA-qualified benefit plan (e.g., 401(k) plan).

 

4.         Health
Insurance.  Until the
earlier to occur of (i) the twelve (12) month anniversary of the
Separation Date, or (ii) the date on which you become employed, you will
be provided such coverage as you had at the time of the Separation Date (with
the exception of Long Term Care, 401(k), Life Insurance, Short Term Disability
Insurance and Long Term Disability Insurance), for yourself and/or any
dependents, at the same premium rate as current employees, and the Company will
pay the difference. Thereafter, you may continue such benefits entirely at your
own expense.

 

5.         Outplacement Services.  You shall be entitled to receive the services
of an outplacement consultant selected by Employer, whose fees shall be paid by
Employer up to a total of $10,000.

 

6.         Expense
Reimbursements.  You agree
that, within ten (10) days after the Separation Date, you will submit your
final documented expense reimbursement statement reflecting all business
expenses you incurred through the Separation Date, if any, for which you seek
reimbursement. The Company will reimburse you for these business expenses
pursuant to its policies and reasonable business practices.

 

7.         Confidential
Information/Non-Compete Obligations.  You acknowledge and reaffirm your continuing
obligations under paragraphs 2 and 3 of your Employment Agreement entered January 15,
2007, including but not limited to your obligation not to use or disclose any
confidential or proprietary information of the Company and not to compete with
the Company or solicit the customers or suppliers of the Company for a period
of 12 months, as set forth in the Noncompete Agreement attached to the Employment
Agreement. You are
obligated to abide by the terms of these agreements whether or not you accept
this Agreement.  You
hereby acknowledge that you have returned all Company property to the Company
and that you are not in possession of any of the Company’s proprietary
materials or copies thereof.

 

8.         Confidentiality.  The provisions of this Agreement will be held
in strictest confidence by you and the Company and will not be publicized or
disclosed in any manner whatsoever; provided,
however, that: (a) you may disclose this Agreement in
confidence to your immediate family; (b) the parties may disclose this
Agreement in confidence to their respective attorneys, accountants, auditors,
tax preparers, and financial advisors; (c) the Company may disclose this Agreement
to fulfill standard or legally required corporate reporting or disclosure
requirements; and (d) the parties may disclose this Agreement insofar as
such disclosure may be necessary to enforce its terms or as otherwise required
by law. In particular, and without limitation, you agree

 

2

 

not to disclose the terms of
this Agreement to any current or former employee or independent contractor of
the Company. You further agree both to immediately notify the Company upon
receipt of any court order, subpoena, or other legal process that seeks or
might require your cooperation or your disclosure or production of the
existence or terms of this Agreement, and to furnish to the Company, within
three (3) business days of its receipt, a copy of such court order,
subpoena or other legal process.

 

9.         Release.  In consideration of the Severance Payment to be paid
by the Company to Employee, Employee releases, waives, and discharges the
Company (and any of their successors, divisions, subsidiaries, affiliated,
related or parent companies, owners, investors and each of their present and
former officers, directors, shareholders, agents, fiduciaries, employees,
attorneys, representatives, successors and assigns (collectively referred to as
“Released Parties”)) from any and all claims arising or existing on, or at any
time prior to, the date this Agreement is signed by Employee.  Such released claims include, without
limitation, claims relating to or arising out of (i) Employee’s hiring,
compensation, benefits and employment with Company, (ii) Employee’s
separation from employment with Company, and (iii) all claims known or
unknown or which could or have been asserted by Employee against the Company or
Released Parties, at law or in equity, or sounding in contract (express or
implied) or tort, including claims arising under any federal, state, or local
laws of any jurisdiction that prohibit age, sex, race, national origin, color,
disability, religion, veteran, military status, sexual orientation, or any
other form of discrimination, harassment, or retaliation, including, without
limitation, age discrimination claims under the Age Discrimination in
Employment Act (“ADEA”); the Americans with Disabilities Act (“ADA”); claims
under Title VII of the Civil Rights Act of 1964, as amended; the Rehabilitation
Act; the Equal Pay Act; the Family and Medical Leave Act (“FMLA”), 42 U.S.C.
§1981; the Civil Rights Act of 1991; the Civil Rights Act of 1866 and/or 1871;
the Sarbanes Oxley Act (“SOX”); the Employee Polygraph Protection Act; the
Uniform Services and Employment and Re-Employment Rights Act; the Worker
Adjustment Retraining Notification Act (“WARN”); the National Labor Relations
Act (“NLRA”) and the Labor Management Relations Act (“LMRA”); and any other
similar or equivalent state laws; and any other federal, state, local,
municipal or common law whistleblower protection claim, discrimination or
anti-retaliation statute or ordinance; claims arising under the Employee
Retirement Income Security Act (“ERISA”); or any other statutory, contractual
or common law claims.  Employee does not
release his right to enforce the terms of this Agreement or the Plan, nor does
this Agreement limit Employee’s right to file a charge or participate in an
investigation or proceeding conducted by any federal, state or local government
agency.

 

10.       Consideration
Period.  You will have until January 26, 2010, which is twenty-one (21) days in
total, not including the date you received this Agreement, within which to
consider this Agreement and to review this Agreement with an attorney, if you
desire.  You understand, however, that
you are free to sign and return this Agreement at any time within the 21-day
period.  The Company recommends that you
retain an attorney, at your own expense, to consult with and review this
Agreement prior to signing it.

 

11.      Revocation Period.   Employee may revoke this Agreement within
seven (7) calendar days after signing it, not including the date Employee
signs the Agreement.  To be effective,
the revocation must be in writing and hand-delivered or mailed to the Human
Resources

 

3

 

Department, EF Johnson Technologies, Inc.,
1440 Corporate Drive, Irving, Texas 75038, within the applicable seven (7) day
period.  If delivered by hand, it must be
given to the Human Resource Department within the applicable seven (7) day
period.  If mailed, the revocation must
be: (a) postmarked within the applicable period; (b) properly
addressed as set forth above; and (c) sent by Certified Mail, Return
Receipt Requested.  Should Employee
choose to rescind and revoke this Agreement, all terms of this Agreement are
canceled and thereby ineffective.

 

12.       Cooperation
with the Company.  You agree to
cooperate fully with the Company in connection with its actual or contemplated
defense, prosecution, or investigation of any claims, demands, litigation, or
other matters, arising from events, acts, or failures to act that occurred
during the time period in which you were employed by the Company. Cooperation
includes, without limitation, making yourself available upon reasonable notice
for interviews, and truthful and accurate testimony in depositions and trial.
The Company will reimburse you for your reasonable out-of-pocket expenses
incurred in connection with any such cooperation including forgone wages if you
are otherwise employed (excluding attorneys’ fees); and no other compensation
will be owed to you for such cooperation.

 

13.       Entire
Agreement/Survival of Portions of Employment Agreement.  This Agreement constitutes the entire
agreement between the parties concerning the subject matter herein, and
supersedes all prior and contemporaneous negotiations and agreements, oral or
written, related thereto, except that paragraphs 2 and 3 of the Employment
Agreement between you and the Company entered November 15, 2007, and the
Noncompete Agreement attached to the Employment Agreement shall remain in force
and effect in accordance with the terms of such agreements.  This Agreement cannot be changed or terminated
except pursuant to a written agreement executed by the parties.

 

14.       Non-Disparagement.  Each of the Company and you agrees that it/he
will refrain from making any defamatory, libelous, slanderous or disparaging
statements about the other party (including any derogatory statements regarding
the business or reputation of the Company), orally or in writing, except for
truthful statements required by law or legal process.

 

15.       Miscellaneous.  This Agreement is entered into without
reliance on any promise or representation, written or oral, other than those
expressly contained herein. This Agreement will bind the heirs, personal
representatives, successors and assigns of the parties, and inure to the
benefit of the parties, their heirs, successors and assigns. If any provision
of this Agreement is determined to be invalid or unenforceable, in whole or in
part, this determination will not affect any other provision of this Agreement
and the provision in question will be modified by the court so as to be
rendered enforceable in a manner consistent with the intent of the parties
insofar as possible. This Agreement will be deemed to have been entered into
and will be construed and enforced in accordance with the laws of the State of
Texas as applied to contracts made and to be performed entirely within Texas.
Any ambiguity in this Agreement shall not be construed against either party as
the drafter. Any waiver of a breach of this Agreement shall be in writing and
shall not be deemed to be a waiver of any successive breach. This Agreement may
be executed in counterparts and facsimile signatures will suffice as original
signatures.

 

4

 

If this Agreement is
acceptable to you, please sign below and return the original to me. We
appreciate all of your contributions to the Company and wish you all the best
in your future endeavors.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael E. Jalbert

  
	
   

  	
   

  	
   

  	
  Michael E. Jalbert

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UNDERSTOOD AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Massoud Safavi

  	
   

  	
   

  
	
  Massoud Safavi

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Execution
  Date:

  	
  January
  8, 2010

  	
   

  	
   

  
					

 

5Exhibit 10.1

 

RED
ROBIN GOURMET BURGERS, INC.

6312
South Fiddler’s Green Circle, Suite 200N

Greenwood
Village, CO 80111

 

January 11, 2010

 

Dennis B. Mullen

c/o Red Robin Gourmet
Burgers, Inc.

6312 South Fiddler’s
Green Circle, Suite 200N

Greenwood Village, CO
80111

 

Re:                               Second
Amendment to that certain Second Amended and Restated Employment Agreement
dated March 10, 2008, as amended by that certain Letter Agreement dated August 15,
2008 (the “Existing Agreement”) by and between Dennis B. Mullen (the “Executive”)
and Red Robin Gourmet Burgers, Inc., a Delaware corporation (the “Company”).

 

Dear Denny:

 

This
letter agreement (this “Amendment”) sets forth certain amendments to the
terms and conditions of the Existing Agreement, a copy of which is attached
hereto as Exhibit A.  Capitalized
terms not otherwise defined in this Amendment shall have the meaning set forth
in the Existing Agreement.  Accordingly, for and in consideration of
the mutual covenants contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Executive and
the Company hereby agree as follows:

 

1.             Annual Base
Salary.  Executive’s
Annual Base Salary for 2010 shall be $800,000.

 

2.             Annual
Incentive Compensation.  The Executive hereby agrees to waive his
right to the Guaranteed Amount set forth in Section 3(b) of the Existing
Agreement for the years ended December 31, 2010, 2011 and 2012.  Accordingly, the first sentence of Section 3(b)
of the Existing Agreement shall be amended and restated as follows:

 

“In
addition to the Annual Base Salary, the Executive shall be eligible to receive
a 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 of the Board.”

 

3.             Termination of Commuting Expenses.  Section 3(e) of the Existing Agreement shall
be deleted in its entirety without further force or effect.

 

 

4.             Termination of Commuting Expense
Additional Payment.  Effective January
1, 2010, the Executive shall forego any rights to receive an additional payment
from the Company, as described in the First Amendment to the Executive’s
original employment agreement dated November 17, 2005, for additional federal,
state or local income tax liability and any Federal Insurance Contributions Act
tax liability that may arise from the provision by the Company of the commuting
benefits to which the Executive is entitled under Section 3(e) of the Existing
Agreement.

 

5.             Air Travel.  Section 3(f) of the Existing Agreement shall
be amended and restated as follows:

 

“(f)    Air Travel.  The Executive may fly on charter or private
aircraft for appropriate business use, subject to the Executive’s compliance
with the Expense Policies and the Company’s policy for non-commercial air
travel as established by the Board.”

 

6.             Deletion of Tax Gross-Up.  Section 20 of the Existing Agreement shall be
deleted in its entirety and replaced with the following:

 

“20.  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 the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”)
would, absent the provisions of this Section 20, be subject to the excise tax
imposed by Section 4999 of the U.S. Tax Code, and, after the payment by the Executive
of the excise tax imposed by Section 4999 of the U.S. Tax Code (the “Excise
Tax”), the Executive would retain a net amount that would be less than the
sum of (i) the maximum amount that may be paid to the Executive without
triggering the application of the Excise Tax (the “Maximum Payment”),
and (ii) $100,000, then the Payment shall be reduced to equal the Maximum
Payment.

 

(b)                   All
determinations required to be made under this Section 20, including whether and
when a Payment is cut back pursuant to Section 20(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
(the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the 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 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)                   In the event of
any reduction pursuant to Section 20, the Executive may determine which and how
much of the Payment, including without limitation Payments made outside of this
Agreement, shall be eliminated or reduced (as long as after such election the
requirements of Section 20(a) are complied with) and shall advise the 

 

2

 

Company in writing of such election within ten days of the Executive’s
receipt of notice of the application of Section 20.  If no such election is made within such ten-day
period, the Company may elect which of the Payments, including without
limitation Payments made outside of this Agreement, shall be eliminated or
reduced and shall notify the Executive promptly of such election.

 

(d)                   Upon any
assertion by the Internal Revenue Service that the Payment is subject to the
Excise Tax, the Executive shall be obligated to return to the Company any
portion of the Payment determined by the Accounting Firm to be necessary to
appropriately reduce the Payment so as to avoid any such Excise Tax.”

 

7.             No Other Changes.  Except as modified or supplemented by this Amendment,
the Existing Agreement remains unmodified and in full force and effect.

 

8.             Miscellaneous.

 

(a)           Governing Law.  This Amendment shall be governed by and
construed under and in accordance with the laws of the State of Colorado, without
regard to conflicts of laws principles thereof.

 

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

 

(c)           Counterparts.  This Amendment may be executed in one or more
counterparts, each of which shall be deemed to be an original and all of which
together will constitute one and the same instrument.

 

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

 

[Signature page follows.]

 

3

 

If you are in agreement
with the foregoing, please so indicate by executing this letter agreement
below.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  RED
  ROBIN GOURMET BURGERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward T. Harvey

  
	
   

  	
   

  	
  Edward T. Harvey, Lead
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED
  AND ACCEPTED BY:

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Dennis B. Mullen

  	
   

  
	
  Dennis B. Mullen

  	
   

  
	
   

  	
   

  
	
  Date: January 11, 2010

  	
   

  

 

4

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