Document:

ex10-1_4thamendment.htm

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT, dated as of June 29, 2015 (this “Agreement”), is entered into among Ruby Tuesday, Inc., a Georgia corporation (the “Borrower”), the Guarantors, the Lenders party hereto and Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent entered into that certain Revolving Credit Agreement dated as of December 3, 2013 (as amended by that certain First Amendment to Revolving Credit Agreement and Waiver dated as of January 10, 2014, that certain Second Amendment to Revolving Credit Agreement and Waiver dated as of February 7, 2014, that certain Third Amendment to Revolving Credit Agreement dated as of August 5, 2014 and as further amended or modified from time to time, the “Credit Agreement”); and

WHEREAS, the Borrower has requested that the Lenders agree to amend the Credit Agreement as set forth herein and the Required Lenders have agreed to amend the Credit Agreement as set forth herein on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.   Incorporation of Recitals.  The recitals to this Agreement are incorporated fully and made a part of this Agreement.

2.   Reaffirmation.  Each of the Loan Parties acknowledges and reaffirms (a) that it is bound by all of the terms of the Credit Agreement and the other Loan Documents to which it is a party and (b) that it is responsible for the observance and full performance of all Obligations, including without limitation, the repayment of the Loans and reimbursement of any drawings on a Letter of Credit.  Without limiting the generality of the preceding sentence, each of the Guarantors restates and reaffirms that it guarantees the prompt payment when due of all Obligations, in accordance with, and pursuant to the terms of the Credit Agreement.  Furthermore, the Loan Parties acknowledge and confirm (i) that the Administrative Agent and the Lenders have performed fully all of their respective obligations under the Credit Agreement and the other Loan Documents and (ii) by entering into this Agreement, the Lenders do not waive or release any term or condition of the Credit Agreement or any of the other Loan Documents or any of their rights or remedies under such Loan Documents or applicable law or any of the obligations of the Loan Parties thereunder.

3.           Amendments.  The Credit Agreement is hereby amended as follows:

  (a)   The definition of “Adjusted LIBO Rate” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

             “Adjusted LIBO Rate” means,

(a)           with respect to each Interest Period for a Eurodollar Loan, the rate per annum (rounded to the nearest multiple of 1/16 of 1%) obtained by dividing (i) LIBOR 

 

 

  

 

for such Interest Period by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage; and

(b)           for any day with respect to a Base Rate Loan bearing interest at a rate based on LIBOR, a rate per annum (rounded to the nearest multiple of 1/16 of 1%) obtained by dividing (i) LIBOR for such Interest Period by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage;

provided, that if the Adjusted LIBO Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

(b)       The first sentence in the definition of “Base Rate” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

   “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate” and (c) the Adjusted LIBO Rate plus 1.00%; provided, that if the Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

(c)        Clause (a)(ii) in the definition of “Consolidated Fixed Charges” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

(ii) prepayment penalties in connection with the prepayment of Indebtedness of the Loan Parties secured by real property as permitted under Section 8.13(a) made during such period not to exceed $5,000,000 in the aggregate during the term of this Agreement and

(d)       The definition of “Responsible Officer” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

   “Responsible Officer” means any of the president, the chief executive officer, the chief operating officer, the chief financial officer, the treasurer, a vice president or the chief legal officer of a Loan Party or such other representative of such Loan Party as may be designated in writing by any one of the foregoing with the consent of the Administrative Agent; with respect to the financial covenants only, the chief financial officer or the treasurer of the Borrower; and, solely for purposes of notices given pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.  To the extent requested by the Administrative Agent, each Responsible Officer will provide an incumbency certificate and to the extent requested by the Administrative Agent, appropriate authorization documentation, in form and substance reasonably satisfactory to the Administrative Agent.

 

  

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(e)   The first sentence of Section 2.3 of the Credit Agreement is hereby amended to read as follows:

The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing in the form of a Notice of Revolving Borrowing) of each Revolving Borrowing substantially in the form of Exhibit 2.3 attached hereto or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower (a “Notice of Revolving Borrowing”) (x) prior to noon on the Business Day of the requested date of each Base Rate Borrowing and (y) prior to 2:00 p.m. three (3) Business Days prior to the requested date of each Eurodollar Borrowing.

(f)   Section 6.1(d) of the Credit Agreement is hereby amended to read as follows:

(d)           [reserved];

(g)           A new Section 6.17 is hereby added to the Credit Agreement to read as follows:

Section 6.17                      Anti-Corruption Laws.

The Borrower will, and will cause each of its Subsidiaries to, conduct its business in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions, and maintain policies and procedures to promote and achieve compliance with such laws.

(h)           A new Section 8.15 is hereby added to the Credit Agreement to read as follows:

Section 8.15                      Sanctions.

The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, use any Loan or Letter of Credit or the proceeds thereof, or lend, contribute or otherwise make available such Loan or Letter of Credit or the proceeds thereof to any Person, to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as Lender, Arranger, Administrative Agent, Issuing Bank, or otherwise) of Sanctions.

(i)           A new Section 8.16 is hereby added to the Credit Agreement to read as follows:

Section 8.16                      Anti-Corruption Laws.

The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, use any Loan or Letter of Credit or the proceeds thereof for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions.

(j)           Section 11.4(f) of the Credit Agreement is hereby amended to read as follows:

 

 

  

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(a)           Electronic Execution.  The words “delivery,” “execute,” “execution,” “signed,” “signature,” and words of like import in any Loan Document or any other document executed in connection herewith shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided, that notwithstanding anything contained herein to the contrary, the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; provided, further, that without limiting the foregoing, upon the request of the Administrative Agent, any electronic signature shall be promptly followed by such manually executed counterpart.

(k)           Section 11.8 of the Credit Agreement is hereby amended to read as follows:

11.8           Counterparts; Integration.

This Agreement and each of the other Loan Documents may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the Fee Letter, the other Loan Documents, and any separate letter agreement(s) with respect to fees payable to the Administrative Agent or any Issuing Bank, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Delivery of an executed counterpart of a signature page of this Agreement or any other Loan Document, or any certificate delivered thereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement or such other Loan Document or certificate.  Without limiting the foregoing, to the extent a manually executed counterpart is not specifically required to be delivered under the terms of any Loan Document, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

4.           Conditions Precedent.  This Agreement shall be effective upon the receipt by the Administrative Agent of counterparts of this Agreement, duly executed by the Borrower, the Guarantors, the Administrative Agent and the Required Lenders.

5.           FATCA Grandfathering.  The Borrower hereby certifies to the Administrative Agent and the Lenders that the obligations of the Borrower set forth in the Credit Agreement, as modified by this Agreement, qualify as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).  From and after the effective date of this Agreement, the Borrower shall indemnify the Administrative Agent, and hold it harmless from, any and all losses, claims, damages, liabilities and related interest, penalties and expenses, including, without limitation, Taxes and the fees, charges and 

 

  

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disbursements of any counsel for any of the foregoing, arising in connection with the Administrative Agent’s treating, for purposes of determining withholding Taxes imposed under FATCA, the Credit Agreement as qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).  The Borrower’s obligations hereunder shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all of the Obligations.

6.           Miscellaneous.

(a)           The Credit Agreement, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.

(b)           Each Loan Party hereby represents and warrants as follows:

(i)           Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Agreement.

(ii)           This Agreement has been duly executed and delivered by each Loan Party and constitutes the legal, valid and binding obligations of each Loan Party, enforceable in accordance with its terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

(iii)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by any Loan Party of this Agreement.

(c)           Each Loan Party represents and warrants to the Lenders that (i) the representations and warranties set forth in Article V of the Credit Agreement and in each other Loan Document are true and correct in all material respects (before and after giving effect to this Agreement) as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date and (ii) no event has occurred and is continuing which constitutes a Default or an Event of Default.

(d)           This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

(e)           THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF THE STATE OF GEORGIA.

[remainder of page intentionally left blank]

  

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Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

BORROWER:                                                                           RUBY TUESDAY, INC.

By       /s/ Rhonda Parish   

Name:       Rhonda Parish

Title:         Chief Legal Officer and Secretary

GUARANTORS:                                                                RTBD, INC.

By      /s/ Rhonda Parish   

Name       Rhonda Parish

Title:        Vice President and Secretary

RT FINANCE, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RUBY TUESDAY GC CARDS, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT TAMPA FRANCHISE, L.P.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT ORLANDO FRANCHISE, L.P.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT SOUTH FLORIDA FRANCHISE, L.P.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT NEW YORK FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

  

 

RT SOUTHWEST FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT MICHIANA FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT FRANCHISE ACQUISITION, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT KENTUCKY RESTAURANT HOLDINGS, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT FLORIDA EQUITY, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RTGC, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT DETROIT FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT MICHIGAN FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

  
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

RT WEST PALM BEACH FRANCHISE, L.P.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT NEW ENGLAND FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT LONG ISLAND FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RUBY TUESDAY, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT LAS VEGAS FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT MINNEAPOLIS FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT INDIANAPOLIS FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT DENVER FRANCHISE, L.P.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

  
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

RT OMAHA FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT KCMO FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT PORTLAND FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT ST. LOUIS FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT WESTERN MISSOURI FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT AIRPORT, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT LOUISVILLE FRANCHISE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT MCGHEE-TYSON, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

  

 

RT ONE PERCENT HOLDINGS, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT ONE PERCENT HOLDINGS, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT MINNEAPOLIS HOLDINGS, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT OMAHA HOLDINGS, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT DENVER, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT LOUISVILLE, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT ORLANDO, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT SOUTH FLORIDA, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

  
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

RT TAMPA, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT WEST PALM BEACH, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT NEW HAMPSHIRE RESTAURANT HOLDINGS, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT RESTAURANT SERVICES, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RTTA, LP

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT DISTRIBUTING, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT O’TOOLE, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT SMITH, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

  
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

RT MILLINGTON, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

4721 RT OF PENNSYLVANIA, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RTTT, LLC

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RTT TEXAS, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT JONESBORO CLUB

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RUBY TUESDAY OF RUSSELLVILLE, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RUBY TUESDAY OF CONWAY, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

RT KCMO KANSAS, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

  
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

RUBY TUESDAY OF BRYANT, INC.

By      /s/ Rhonda Parish    

Name:      Rhonda Parish

Title:        Vice President and Secretary

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

ADMINISTRATIVE AGENT:                                                                BANK OF AMERICA, N.A.,

as Administrative Agent

By       /s/ Cindy Jordan    

Name: Cindy Jordan

Title:Assistant Vice President

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

LENDERS:                                                                BANK OF AMERICA, N.A.,

as a Lender and an Issuing Bank

By       /s/ Anthony Luppino    

Name: Anthony Luppino

Title: Vice President

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By       /s/ Darcy McLaren    

Name: Darcy McLaren

Title: Director

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.

 

REGIONS BANK,

as a Lender

By       /s/ Jay R. Goldstein    

Name: Jay R. Goldstein

Title: Senior Vice President

 

 

 

FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

RUBY TUESDAY, INC.EMPLOYMENT AGREEMENT

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

Position:

 

Chairman of the Board of Directors

 

Duties:

Overseeing and adding significant value to the following Management Items:

-Spearheading the search for a new CEO, however, in the interim, you may be called upon to perform the duties typically associated with an interim chief executive officer

- Overview Executive Leadership

- Media Interviews

- Capital Raise with Investors and Bankers

- Investor Relations

- New and Current Strategic Partner Relations

- Board Membership

- Business Strategy 

Notwithstanding the foregoing or anything else to the contrary contained in this agreement, Soupman acknowledges and agrees that Mr. Karson (“Executive”) will continue to retain a significant role at Defy Ventures and Dentons. Therefore, the amount of time that Executive will be able to devote to Soupman on a weekly basis in the role of Interim CEO will be subject to his existing obligations to Defy Ventures and Dentons. Executive will work primarily out of his other offices in the NY metro area rather than the Soupman principal office. 

Compensation:

In agreement for providing services and devoting time (subject to the limitations set forth above) to the above "Management Items," and meeting with management as necessary whether by telephone or in person, Executive shall receive the compensation as stated below. Management will meet with Executive weekly at the office in the NY metro area of his choice. In addition, Executive will travel as necessary for the position so long as his professional schedule and commitments allow.

Executive shall receive 416,667 shares of Soupman Inc. restricted common stock monthly each month for the first 1 year as long as he is employed by the Company. The total shares granted Year 1, if employed for the entire year, is 5,000,000 shares. 

Beginning on the 13th month anniversary of the approval of this agreement, and for each month thereafter that Executive is employed by the company, through July 15th, 2017, Executive shall receive restricted common stock of Soupman, Inc. on the 15th day of each month, equal to the number of shares that equals $16,666.67, based on the closing stock price on the 15th day of each month. 

Stock Performance Incentives:

A one- time bonus of 400,000 shares of Soupman Inc. restricted common stock (Ticker: SOUP) if the company’s stock trades at 25 cents or higher for 10 trading days in a 30 day period during the term of this agreement. 

A one- time bonus of 100,000 shares  of Soupman Inc. restricted common stock (Ticker: SOUP) if the company’s stock trades at $1.00 or higher for 10 trading days in 30 day period during the term of this agreement. 

A one-time bonus of 50,000 shares of Soupman Inc. restricted common stock (Ticker: SOUP) if the company stock trades at $2.00 or higher for 10 trading days in a 30 day period during the term of this agreement. 

A one- time bonus of 25,000 shares of Soupman Inc. restricted common stock (Ticker: SOUP) if the company’s stock trades at $4.00 or higher for 10 trading days in a 30 day period during the term of this agreement  

Sales Incentive Program:

For every new incremental $1million in sales annually Executive will be awarded 5,000 shares of Soupman Inc. stock. The maximum amount of shares to earn is 500,000 shares based on a cap of $100 million in sales for this bonus. 

Expenses:

Company shall reimburse Executive for all reasonable and/pre-approved business expenses. 

Charitable Donation:                       

The Company agrees to donate $10,000 worth of its common restricted stock to the Charity of Executive’s choice upon his appointment to the role of Chairman of the Board at the current market price. 

Start Date:

On or about June 26, 2015 

Share Restrictions

All of the shares of the Company’s common stock to be issued hereunder are “restricted securities” as defined in the Securities and Exchange Act of 1933, as amended, and Rule 144 as promulgated thereunder, are as such are subject to the Company’s Trading Policy and its blackout periods for insiders. 

Non-Competition:

Executive agrees that if his employment is terminated for cause or if he voluntarily leaves the employ of the Company for any reason, for a period of one (1) year from the date of such termination of employment, he will not directly or indirectly, as owner, partner, joint venture, stockholder, employee, broker, agent, principal, trustee, corporate officer or director, licensor or in any capacity whatsoever engage in, become financially interested in, be employed by, render consulting services to, or have any connection with, any business which is involved in the marketing or selling of primarily soup products as its core business in competition with the Company ("Competitive Business"), in any geographic area where, during the time of his employment, the business of the Company or any of its subsidiaries is being  conducted in any manner whatsoever, or hire or attempt to hire for any Competitive Business any employee of the Company or any subsidiary thereof, or solicit, call on or induce others to solicit or call on, directly or indirectly, any customers  of the Company for the purpose of inducing them to purchase or lease a soup product or service which may compete with any soup product or service of the Company; provided, however, that Executive may own any securities of any corporation which is engaged in such business and is publicly owned and traded but in an amount not to exceed at any one time two percent of any class of stock or securities of such company.

If any portion of the restrictions set forth in paragraph above should, for any reason whatsoever, be declared invalid by a court of competent jurisdiction, the validity or enforceability of the remainder of such restrictions shall not thereby be adversely affected. 

Executive declares that the foregoing territorial and time limitations are reasonable and properly required for the adequate protection of the business of the Company.  In the event any such territorial or time limitation is deemed to be unreasonable by a court of competent jurisdiction, Executive agrees to the reduction of either said territorial or time limitation to such area or period which said court shall have deemed reasonable.

The existence of any claim or cause of action by Executive against the Company or any subsidiary other than under this Agreement shall not constitute a defense to the enforcement by the Company or any subsidiary of the foregoing restrictive covenants, but such claim or cause of action shall be litigated separately.

Non-Disclosure of Confidential Information: Inventions:

Executive shall not, during the term of this Agreement, and at any time following termination of this Agreement, directly or indirectly, disclose or permit to be known, to any person, firm or corporation, any confidential information acquired by him during the course of or as an incident to his employment hereunder, relating to the Company or any of its subsidiaries, the directors of the Company or its subsidiaries, any client of the Company or any of its subsidiaries, or any corporation, partnership or other entity owned or controlled, directly or indirectly, by any of the foregoing, or in which any of the foregoing has a beneficial interest, including, but not limited to, the business affairs of each of the foregoing.  Such confidential information shall include, but shall not be limited to, proprietary information, trade secrets, know-how, market studies and forecasts, competitive analyses, the substance of agreements with clients and others, client lists and any other documents embodying such confidential information. Confidential information shall not include information which (i) is or becomes part of the public domain without breach of this Agreement (ii) was known by Executive on a non-confidential basis prior to disclosure by the Company (iii) is independently received by Executive without the use of confidential information or (iv) is explicitly approved for release by written authorization of the Company.  It shall not be a breach of the terms of this Agreement if Executive discloses confidential information that it is legally required to disclose provided that Executive promptly notifies the Company of such requirement and, if requested by the Company, reasonably cooperates in the Company’s efforts to prevent or limit such disclosure. 

 All information and documents relating to the Company, its affiliates as hereinabove described (or other business affairs) shall be the exclusive property of the Company, and Executive shall use his best efforts to prevent any publication or disclosure thereof.  Upon termination of Executive's employment with the Company, all documents, records, reports, writings and other similar documents containing confidential information, including copies thereof, then in Executive's possession or control shall be returned and left with the Company. 

Any inventions, discoveries, concepts or ideas, or expressions thereof, whether or not subject to patents, copyrights, trademarks or service mark protections, and reduced to practice, which are conceived or developed by Executive while employed with the Company which relate to or result from the actual business, work, research or investigation of the Company shall be the sole and exclusive property of the Company.  Executive will do all things reasonably requested by the Company to assign to and vest in the Company the entire right, title and interest to any such inventions, discoveries, concepts, ideas or expressions thereof.

Termination of Employment:  

If the Company elects to terminate Executive’s employment as Chairman of the Board for any reason whatsoever, the Company shall award and pay to Executive within thirty (30) days following such termination, 1,250,000 shares of common stock (the “Severance Payment”) to vest immediately. If Executive voluntarily leaves the Company on his own accord, the Company shall not be obligated to pay Executive the Severance Payment.

Sale of the Company: 

If there is a sale of the Company, whether through a stock sale or asset sale, or a change of control in the ownership structure of the Company, all stock grants to be awarded to Executive for services through June 30, 2017, shall immediately become due and payable and shall vest immediately.

Indemnity: 

The Company represents and warrants that it maintains comprehensive liability insurance including Director and Officer Liability insurance in sufficient amounts, but not less than $2,000,000, in full force and effect, and that it shall continue to maintain all such insurance in full force and effect. The Company shall indemnify Executive against any and all claims, expenses, and amounts of any kind or nature whatsoever arising from Executive acting in his role as Chairman of the Board and Interim CEO so long as they are a result of performing his role and duties for the Company

SOUPMAN, INC.

By: /s/ Robert N. Bertrand

Name: Robert N. Bertrand

Title: President and Chief Financial Officer

JAMIESON KARSEN

By: /s/ Jamieson Karsen

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