Document:

Exhibit 10.1

 

AMENDMENT TO CHANGE IN CONTROL AGREEMENT

 

This Amendment to Change in Control Agreement (the “Amendment”) is
entered into this 16 day of July 2009, between Methode Electronics, Inc.,
a Delaware corporation (the “Company”), and
                                    
(the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company and Executive are parties to a Change in Control
Agreement dated September 1, 2006 (the “Agreement”); and

 

WHEREAS, the Company and Executive wish to amend the Agreement to
modify the circumstances pursuant to which Executive is entitled to certain
additional payments under Section 6 of the Agreement.

 

NOW, THEREFORE, it is hereby agreed by and between the
parties, for good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, as follows:

 

1.                  Amended Section 6(a).  Effective immediately, Section 6(a) of
the Agreement is amended to read in its entirety as follows:

 

(a)                                  In the event it shall be determined that
as a result, directly or indirectly, of 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”), the Executive would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by
the Executive with respect to such excise tax (such excise tax, together with
any such interest and penalties, are hereinafter collectively referred to as
the “Excise Tax), then the Executive shall be entitled to promptly receive an
additional payment (a “Gross-Up Payment”) in an amount such that after payment
by the Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, but excluding any income taxes on the Payment, the
Executive is in the same after-tax position as if no Excise Tax had been
imposed upon the Executive; provided, however, that the Gross-Up Payment shall
be made only to the extent that the total value of any payments or benefits
received by the Executive under this Agreement or any other plan or agreement
with the Company (“Benefits”) exceeds by 25 percent or more the dollar amount
that is three times the Executive’s “base amount” (as defined in Section 280G
of the Code).  If the total value of
Benefits exceeds by less than 25 percent the dollar amount that is three times
the Executive’s “base amount,” then no Gross-Up Payment shall be made and
Benefits shall be capped at the amount that is $1 less than three times the
Executive’s “base amount.”

 

2.                  Agreement Remains in Effect.  Except as modified by this Amendment, the
Agreement shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment on
the day and year first written above.

 

	
   

  	
  METHODE ELECTRONICS,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”)
is entered into as of June 30, 2009 (“Date of this Agreement”),
between THE CHEESECAKE FACTORY INCORPORATED (the “Company”)
and DAVID M. OVERTON (the “Employee”).

 

WHEREAS, the Compensation Committee of the Board of
Directors (“Board”), of the Company (the “Compensation Committee”) has approved and authorized the
entry into this Agreement with the Employee; and

 

WHEREAS, the parties desire to enter into this
Agreement setting forth the terms and conditions for the employment
relationship of the Employee with 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 the Employee hereby agree as follows:

 

1.                                       Employment.  During the
Term of this Agreement, Employee is employed as Chief Executive Officer (“CEO”) of the Company and, so long as Employee remains CEO
and a member of the Board shall be the Chairman of the Board.  As Chairman of the Board, Employee shall have
all rights and duties set forth in the Company’s Articles of Incorporation and
By-laws and will work in collaboration with the Lead Director of the Board to
establish the agendas for the Board meetings. 
As CEO, Employee shall have all rights and duties set forth in the
Company’s Articles of Incorporation and By-Laws and, subject to the oversight
of the Board, shall have general supervision, direction and control of the
business and the officers, employees and agents of the Company, including
development and implementation of the Company’s strategic plans and policies,
short-and long-term growth, operations, financial and capital expenditure
decisions, reporting structure and organization, budgeting and financial
performance, and communications and relations with investors, other Board
members, customers, and other outside Company business interests.  The Employee shall devote substantially all
his time, attention and energies to the business and affairs of the Company and
the subsidiaries.  The Company
acknowledges that the Employee is a member of the Board and that such
membership constitutes an integral part of the Employee’s duties hereunder.

 

2.                                       Term.  The “Term of this Agreement” or “Term”
shall be for the period beginning the Date of this Agreement and ending on May 7,
2012.

 

3.                                       Salary.  Subject to
the further provisions of this Agreement, the Company shall pay the Employee a
salary at an initial annualized rate equal to $850,000 effective as of June 30,
2009.  The Employee’s salary may be
increased at such times, if any, and in such amounts as determined by the
Compensation Committee in its discretion. 
The Compensation Committee will review the salary on an annual basis.  Any increase in salary shall not serve to
limit or reduce any other obligation of the Company hereunder.  Such salary shall be payable by the Company
to the Employee not less frequently than monthly.  Participation in deferred compensation,
discretionary or performance bonus, retirement, stock option and other employee
benefit plans and in fringe benefits shall not reduce the annual rate.

 

1

 

4.                                       Bonus.  While
employed by the Company pursuant to this Agreement, the Employee shall be eligible
to be a participant in the Company’s Performance Incentive Plan (or any
modified or replacement plan providing for bonus incentives to executive
officers) (“Incentive Plan”) subject to the
terms, conditions and limitations of such Incentive Plan.  During the Term of this Agreement Employee
also shall be eligible for other discretionary bonus awards, as determined in
the sole discretion of the Compensation Committee.

 

5.                                       Participation in Employee Benefit Plans. 
While employed by the Company pursuant to this Agreement, the Employee
shall be entitled to participate equitably with other executive officers
commensurate with Employee’s position with the Company, in any plan of the
Company relating to pension, thrift, profit sharing, life insurance, disability
income insurance, medical coverage, education, or other retirement or employee
benefits that the Company has adopted or may adopt for the benefit of its
executive officers, subject to the terms, conditions and limitations of any
such plan.

 

6.                                       Equity Compensation.

 

(a)                                  Grants. On May 7, 2009 (“Date of
Grant”), the Company granted the Employee (x) 50,000 restricted
shares of the Company’s common stock (“Restricted Shares”)
and (y) 100,000 non qualified stock options (“Options”)
to purchase shares of the Company’s common stock pursuant to a Notice and
Agreement of Grant of Stock Option and/or Restricted Share Award (“Equity Agreement”). 
The Restricted Shares and the Options are subject to the terms and
conditions of the Company’s 2001 Omnibus Stock Incentive Plan as restated April 5,
2004, as further amended July 23, 2008 (“Plan”),
the Equity Agreement and the Company’s stock retention requirements applicable
to executive officers.

 

(b)                                 Consideration for Future Grants. 
The Employee during the Term of this Agreement shall be eligible for
future grants of options to purchase the Company’s common stock, restricted
shares, or other equity incentives under the Company’s equity incentive plans
at levels commensurate with Employee’s position with the Company.  All such grants and the terms and conditions
shall be in the discretion of the Compensation Committee.

 

(c)                                  Prior Grants. 
If, on the Date of Termination (as hereinafter defined in Section 13(d)),
any installment of non qualified stock options to purchase shares of the
Company’s common stock granted to the Employee pursuant to the Plan on or
subsequent to December 29, 2004 and prior to the grant of the Options are
not then exercisable and the Employee’s employment is not terminated for Cause
(as hereinafter described in Section 12(c)), such installment shall become
immediately exercisable subject to expiration as set forth in the Plan or any
option agreement.

 

7.                                       Fringe Benefits. 
While employed by the Company pursuant to this Agreement, the Employee
shall be entitled to receive all other fringe benefits, which are now or may be
provided to the Company’s executive officers. 
To the extent that the level of any such benefits is based upon
seniority, level of services or compensation levels, the Company shall make an
appropriate and proportionate adjustment to the Employee’s benefits.

 

2

 

8.                                       Vacation. While employed by the Company pursuant to this
Agreement, the Employee shall be entitled to an annual paid vacation in accordance
with the Company’s general administrative policy.

 

9.                                       Business Expenses. 
While employed by the Company pursuant to this Agreement, the Employee
shall be entitled to incur and be reimbursed for all reasonable business
expenses.  The Company agrees that it
will reimburse the Employee for all such expenses upon the presentation by the
Employee, from time to time, of an itemized account of such expenditures
setting forth the date, the purposes for which incurred, and the amounts
thereof, together with such receipts showing payments in conformity with the
Company’s established policies. 
Reimbursement shall be made within a reasonable period after the
Employee’s submission of an itemized account in accordance with the Company’s
established policies; provided, however, to the extent that any reimbursement
of any business expense under this Section 9 or in-kind benefits provided
under this Agreement are deemed to constitute taxable compensation to the
Employee, (a) such amounts shall be reimbursed or provided no later than December 31
of the year following the year in which the expense was incurred; (b) such
amounts reimbursed or provided in one year shall not affect the expenses or
in-kind benefits eligible for reimbursement or payment in any subsequent year,
and (c) the Employee’s right to such reimbursement or payment of any such
amounts shall not be subject to liquidation or exchange for any other benefit (“409A Reimbursement Conditions”).

 

10.                                 Code Section 280G.

 

(a)                                  Notwithstanding any other provision of
this Agreement, in the event that Employee becomes entitled to receive or
receives any payments, options, awards or benefits (including, without
limitation, the monetary value of any non-cash benefits and the accelerated
vesting of stock options or restricted stock) under this Agreement or under any
other plan, agreement or arrangement with the Company, from any person whose
actions result in any change described in Code Section 280G(b)(2)(A)(i) (a
“Section 280G Transaction”) or from
any person affiliated with the Company or such person (collectively, the “Payments”) that may separately or in the aggregate
constitute “parachute payments” within the meaning of Code Section 280G
and it is determined that, but for this Section 10(a), any of the Payments
will be subject to any excise tax pursuant to Code Section 4999 or any
similar or successor provision (the “Excise Tax”),
the Company shall pay to Employee either (i) the full amount of the
Company Payments (as defined below) or (ii) an amount equal to the Company
Payments (as defined below), reduced by the minimum amount necessary to prevent
any portion of the Payments from being an “excess parachute payment” (within
the meaning of Code Section 280G) (the “Capped
Payments”), whichever of the foregoing amounts results in the
receipt by Employee, on an after-tax basis, of the greatest amount of Payments
notwithstanding that all or some portion of the Payments may be subject to the
Excise Tax.  For purposes of determining
whether Employee would receive a greater after-tax benefit from receipt of the
Capped Payments than from receipt of the full amount of the Payments, (i) there
shall be taken into account any Excise Tax and all applicable federal, state
and local taxes required to be paid by Employee in respect of the receipt of
such payments and (ii) such payments shall be deemed to be subject to
federal income taxes at the highest rate of federal income taxation applicable
to individuals that is in effect for the calendar year in which the benefits
are to be paid, and state and local income taxes at the highest rate of
taxation applicable to individuals in the state and locality of

 

3

 

Employee’s residence on
the effective date of the Section 280G Transaction, net of the maximum
reduction in federal income taxes which could be obtained from deduction of
such state and local taxes (as determined by assuming that such deduction is
subject to the maximum limitation applicable to itemized deductions under Code Section 68
and any other limitations applicable to the deduction of state and local income
taxes under the Code).

 

(b)                                 In the event that Section 10(a) applies
and a reduction is required to be applied to the Company Payments thereunder,
the Company Payments shall be reduced by the Company in its reasonable
discretion in the following order and in a manner that complies with Code Section 409A
(as determined by the Company): (i) reduction of any cash payments
otherwise payable to Employee that are exempt from Code Section 409A; (ii) reduction
of any cash payments otherwise payable to Employee that are subject Code Section 409A
on a pro-rata basis or such other manner that complies with Code Section 409A,
as determined by the Company, (iii) cancellation of accelerated vesting of
equity awards (other than stock options) that are exempt from Code Section 409A;
(iv) cancellation of accelerated vesting of stock options that are exempt
from Code Section 409A; and (v) reduction of any other payments and
benefits otherwise payable to the Employee by the Company on a pro-rata basis
or such other manner that complies with Code Section 409A, as determined
by the Company.  If acceleration of
vesting of Employee’s stock options or other equity awards is to be reduced
pursuant to clauses (iii) or (iv) of the immediately preceding
sentence, such acceleration of vesting shall be accomplished by first canceling
such acceleration for the vesting installment that will vest last and
continuing to the extent necessary by canceling such acceleration for the next
vesting installment with the latest vesting. 
For purposes of this Section 10, the term “Company
Payments” means any payments, options, awards or benefits
(including, without limitation, the monetary value of any non-cash benefits and
the accelerated vesting of stock options or restricted stock) under this
Agreement or under any other plan, agreement or arrangement with the Company.

 

(c)                                  All calculations and determinations under
this Section 10, including application and interpretation of the Code and
related regulatory, administrative and judicial authorities, shall be made by
an accounting firm selected by the Company and reasonably acceptable to
Employee which is designated as one of the four largest accounting firms in the
United States (the “Accounting Firm”).  All determinations made by the Accounting
Firm under this Section 10 shall be conclusive and binding on both the
Company and Employee, and the Company shall cause the Accounting Firm to
provide its determinations and any supporting calculations with respect to
Employee to the Company and Employee. 
The Company shall bear all fees and expenses charged by the Accounting
Firm in connection with its services. 
For purposes of making the calculations and determinations under this Section 10,
after taking into account the information provided by the Company and Employee,
the Accounting Firm may make reasonable, good faith assumptions and
approximations concerning the application of Code Sections 280G and 4999.  The Company and Employee shall furnish the
Accounting Firm with such information and documents as the Accounting Firm may
reasonably request to assist the Accounting Firm in making calculations and
determinations under this Section 10.

 

11.                                 Indemnity.  The Company
shall indemnify and hold the Employee harmless from any cost, expense or
liability arising out of or relating to any acts or decisions made by the
Employee on behalf of or in the course of performing services for the Company
to the same

 

4

 

extent the Company
indemnifies and holds harmless other executive officers and directors of the
Company and in accordance with the Company’s certificate of incorporation,
bylaws and established policies.  While
employed by the Company pursuant to this Agreement, the Company agrees to seek
to maintain director and officer liability insurance.  The Company agrees to seek to maintain such
insurance for a period of at least 36 months following the Date of Termination
(as hereinafter defined).  In the event
that the Company does not maintain a director and officer liability policy
covering former directors and officers during such 36-month period, the Company
agrees to seek to obtain and maintain “tail” coverage for director and officer
liability with respect to former directors and officers for a period of up to
36 months after the Date of Termination. 
This indemnification provision is in addition to, and does not supersede
any other agreement of indemnification provided by the Company to Employee.

 

12.                                 Certain Terms Defined. 
For purposes of this Agreement:

 

(a)                                  The Employee shall be deemed to incur a “Permanent Disability” if a physical or mental condition
occurs and persists which, in the written opinion of a licensed physician
selected by the Compensation Committee in good faith, has rendered the Employee
unable to perform the Employee’s duties hereunder for a period of 90 days or
more and, in the written opinion of such physician, the condition will continue
for an indefinite period of not less than an additional 90-day period,
rendering the Employee unable to return to the Employee’s duties.  To the extent the Employee’s Permanent
Disability results in any payment hereunder subject to the requirements of Section 409A(a) of
the Code, such payment shall be further conditioned on the Employee’s Permanent
Disability also constituting a “disability” within the meaning of Regulations Section 1.409A-3(i)(4).

 

(b)                                 “Beneficial Owner”
shall have the meaning given to such term in the Exchange Act and the rules and
regulations thereunder.

 

(c)                                  “Cause” means
termination upon:  (1) the willful
failure by the Employee to substantially perform his duties with the Company
(other than any such failure resulting from his incapacity due to physical or
mental illness), after a written demand for substantial performance is
delivered to him by the Board, which demand specifically identifies the manner
in which the Board believes that he has not substantially performed his duties;
(2) the Employee’s willful misconduct that is demonstrably and materially
injurious to the Company, monetarily or otherwise; or (3) the Employee’s
commission of such acts of dishonesty, fraud, misrepresentation or other acts
of moral turpitude as would prevent the effective performance of his duties.  No act, or failure to act, on the Employee’s
part shall be deemed “willful” unless done, or omitted to be done, by him in
bad faith and done or omitted to be done without the reasonable belief that his
action or omission was in the best interest of the Company.  Notwithstanding the foregoing, the Employee
shall not be deemed to have been terminated for Cause unless and until there
shall have been delivered to him a copy of a resolution duly adopted by the
affirmative vote of a majority of the members of the Board at a meeting of such
members (after reasonable notice to him and an opportunity for him, together
with his counsel, to be heard before such members of the Board), finding that
he has engaged in the conduct set forth above in this subsection (c) and
specifying the particulars thereof in detail.

 

5

 

(d)                                 A “Good Reason”
shall mean any of the following:  (i) a
reduction of the Employee’s salary as in effect on the date hereof or as
increased pursuant to Section 3; (ii) a relocation of the Company’s
principal executive offices to a location that is more than 50 miles from the
location of the Company’s offices specified in Section 22 of this
Agreement that was not recommended by the Employee to the Board; or (iii) any
material breach by the Company of this Agreement.

 

(e)                                  “Code” means the
Internal Revenue Code of 1986, as amended.

 

(f)                                    “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

(g)                                 “Regulations”
means the official Treasury Department interpretation of the Internal Revenue
Code.

 

(h)                                 “Separation from Service”
means a separation from service as that term is used in Code Section 409A(a)(2)(i) and
the Regulations thereunder.

 

13.                                 Termination.

 

(a)                                  Death or Disability. 
This Agreement shall terminate automatically upon the Employee’s death
or Permanent Disability.

 

(b)                                 Cause.  The Company
may terminate the Employee for Cause.

 

(c)                                  Notice of Termination. 
Any termination of the Employee’s employment by the Company for Cause or
by the Employee for Good Reason shall be communicated by Notice of Termination
to the other party hereto given in accordance with Section 22.  In the event of the Employee’s termination of
employment for Good Reason, the Employee shall provide the Notice of Termination
no later than 90 days following the initial existence of the condition or
occurrence of the event purported to constitute Good Reason, and such Notice of
Termination shall specify a Date of Termination that is no earlier than 30 days
after the date of such Notice of Termination. 
Any termination by the Company due to Permanent Disability shall be
communicated by giving written notice of its intention to terminate the
Employee’s employment, and his employment shall terminate after receipt of such
notice (“Disability Effective Date”).  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon; (ii) sets
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Employee’s employment under the provision so
indicated; and (iii) specifies the Date of Termination (defined below).

 

(d)                                 Date of Termination.  “Date of Termination” means the date the Notice of
Termination is given (as set forth in Section 22 below) or any later date
specified therein (but not more than 60 days after the giving of the Notice of
Termination), as the case may be; provided that (i) if the Employee’s
employment is terminated by the Company for Cause, the Date of Termination is
the date on which the Company gives notice to the Employee of such termination;
(ii) if the Employee’s employment is terminated due to Permanent
Disability, the Date of Termination is the Disability Effective Date; and (iii) if
the Employee’s employment is terminated due to the Employee’s death, the Date
of Termination shall be the date of death.

 

6

 

14.                                 Certain Benefits Upon Termination.

 

(a)                                  If the Employee’s employment with the
Company is terminated for any reason other than for Cause, death or Permanent
Disability or if Employee voluntarily resigns his employment with the Company
for a Good Reason, then the Company following the Date of Termination and for
the Term of this Agreement (“Continuation Period”)
(i) shall continue payment of Employee’s then existing Salary on the same
schedule as corresponds to the regular Company payroll dates in effect on the
Employee’s Date of Termination (with such payment to be treated as a separate
payment for purposes of Section 409A of the Code); (ii) shall at the
Company’s expense, continue to provide Employee with a car at the comparable
level provided to Employee prior to the Date of Termination; (iii) shall
pay Employee a performance achievement bonus under the Company’s Incentive Plan
that is proportionately adjusted to take into account the period of actual
service of the Employee during the Company’s fiscal year in which the Employee’s
employment is terminated, provided that the Compensation Committee certifies in
writing that the performance incentive target for that fiscal year has been
achieved and such payment is not inconsistent with Section 162(m) of
the Code and the Regulations thereunder; and (iv) shall at its expense
continue on behalf of the Employee and his dependents and beneficiaries, the
life insurance, disability, medical, dental and hospitalization benefits
provided (x) to the Employee at any time during the 90-day period prior to
the Date of Termination or (y) to other similarly situated employees who
continue in the employ of the Company during the Continuation Period.  The coverage and benefits (including
deductibles and costs) provided in this Section 14(a) during the
Continuation Period shall be no less favorable to the Employee and his
dependents and beneficiaries than the most favorable of such coverages and
benefits during any of the periods referred to in clauses (x) and (y) above.  The Company’s obligations hereunder with
respect to the foregoing benefits shall be limited to the extent that the
Employee obtains any such benefits pursuant to a subsequent employer’s benefit
plans, in which case the Company may reduce the coverage of any benefits it is
required to provide the Employee hereunder so long as the aggregate coverages
and benefits of the combined benefit plans is no less favorable to the Employee
than the coverages and benefits required to be provided hereunder.  This Section 14(a) shall not be
interpreted so as to limit any benefits to which the Employee, his dependents
or beneficiaries may be entitled under any of the Company’s employee benefit
plans, programs or practices following the Employee’s termination of
employment.  During the period of the
Continuation Period in which the Employee and his dependents and beneficiaries
are eligible to receive continued benefits under the Company’s group plans in
accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”), the Company shall pay the
portion of the Employee’s premium payments necessary to satisfy the
requirements of this Section 14(a) with respect to medical, dental
and hospitalization benefits.  With
respect to any period during the Continuation Period in which the Employee or
his dependants and beneficiaries cease to be eligible for COBRA coverage, and
with respect to life insurance and disability benefits for the remainder of the
Term for which the Company cannot make direct premium payments for such
benefits in accordance with the requirements of Section 409A or otherwise,
the Employee (or his dependants and beneficiaries, as applicable) shall pay to
the Company, insofar as permitted by such benefit plans, on an after-tax basis,
an amount equal to the full premium cost of medical, dental, hospitalization,
life insurance and disability benefits coverage.  Within 30 days of such payment, subject to
the 409A Reimbursement Conditions, the Company shall pay to the Employee (or
his dependents and

 

7

 

beneficiaries, as
applicable) in cash (less required withholding) an amount equal to full premium
cost of medical, dental, hospitalization, life insurance and disability
benefits coverage.

 

(b)                                 In the event Section 14(a) is
applicable to a termination of Employee’s employment, then (i) in addition
to the payments provided therein, the Company shall pay all accrued but unpaid
salary, and bonus and amounts due under the Company’s Incentive Plan or any
other bonus or incentive plan then in effect in accordance with the terms and
conditions of such plans, and all accrued but unpaid or unused vacation, sick
pay and expense reimbursement benefit, and (ii) all other benefits shall
vest (unless a plan specifically provides vesting standards in which event the
plan’s terms and conditions shall govern vesting).

 

(c)                                  To the extent delayed commencement of any
portion of the benefits to which the Employee is entitled under this Section 14
is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of
the Code, such portion of the Employee’s termination benefits shall not be
provided to the Employee prior to the earlier of (i) the expiration of the
six-month period measured from the date of the Employee’s Separation from
Service or (ii) the date of the Employee’s death, and if any such benefit
payments are suspended pursuant to clause (i), the full amount of such payments
shall be paid in a lump sum on the day immediately following the expiration of
such six-month period.

 

(d)                                 In the event the Employee is entitled
hereunder to any payments or benefits set forth in Section 14(a), the
Employee shall have no obligation to notify Company of employment subsequent to
the Employee’s termination or to offset (except to the extent required by Section 14(a))
the Company’s obligation by payments due to such employment and shall have no
duty to mitigate.

 

15.                                 Emeritus Period. 
Following Separation from Service and continuing during his lifetime (“Emeritus Period”), Employee shall have the title of “Founder”
of the Company.  If Employee was not
terminated for Cause, Employee shall also have the title of “Chairman Emeritus”
during the Emeritus Period.  During the
Emeritus Period, the Employee shall receive no monetary compensation unless
otherwise agreed to by the Company and the Employee, but the Company, provided
that Employee was not terminated for Cause, shall insofar as feasible provide
to Employee, for a period of up to 10 years, an office in the Company’s
executive suite and the assistance of a secretary; provided, however that if
Employee is in “competition” with the Company during any time period that
Employee is being provided such office and/or the assistance of a secretary
(competition shall be defined herein as engaging in any conduct which violates
Sections 20(a), (b), or (d) or in the event such section(s) are
not then effective, would violate such section(s) if such section(s) were
then effective), the Company may in its discretion terminate the provision of
an office and/or the assistance of a secretary. 
It is anticipated that during any period that Employee is being provided
with an office and/or the assistance of a secretary that Employee shall, at his
discretion, promote the brand, business and reputation of the Company.  In no event shall any such services provided
by Employee during the period that he is provided with an office and/or the
assistance of a secretary equal or exceed 20% of the average level of bona fide
services performed by the Employee during the preceding 36 month period.  If the Employee was not terminated for Cause,
the Employee shall also have unlimited dining privileges at all restaurant
concepts of the Company during the Emeritus Period.

 

8

 

16.                                 Founder’s Retirement Benefit.

 

(a)                                  In addition to all amounts otherwise
payable under this Agreement, the Company shall pay the Employee, during his
lifetime or in the event of his death the Employee’s designated beneficiary or
his estate if no beneficiary is designated, a retirement benefit in the annual
amount of six hundred and fifty thousand dollars ($650,000) for a period of ten
(10) years (“Founder’s Retirement
Benefit”) payable in equal monthly installments.

 

(b)                                 Payment of the Founder’s Retirement
Benefit shall commence on the first regular Company payroll date occurring at
the later of the end of the Term of this Agreement or at least six (6) months
and one day after Separation from Service. 
The Founder’s Retirement Benefit shall be payable from the general,
unrestricted assets of the Company, and the Employee shall be an unsecured
general creditor of the Company.  The
Company’s obligations hereunder are an unfunded, unsecured promise to pay
benefits in the future, and the Employee shall have no right or interest in any
specific assets of the Company by virtue of this obligation.  No trust shall be construed to have been
created by this Section 16, nor shall any fiduciary relationship be
construed to exist between the Company and the Employee.  If the Company, in its sole discretion,
elects to fund its obligations to pay the Founder’s Retirement Benefit through
the purchase of one or more insurance policies, the Employee shall have no
rights in such policy or policies, or the proceeds thereof.  The Company shall be the sole owner and
beneficiary of said policy or policies, and shall hold all incidents of
ownership.  The Founder’s Retirement
Benefit is nontransferable, and the Employee shall not assign, transfer, or
otherwise encumber any payments made hereunder except for a properly executed
written beneficiary designation.  Any
attempt to transfer or assign benefits shall be null and void, and shall
terminate the Company’s obligations under this Agreement.  The Company shall have the right to deduct
and pay over from all Founder’s Retirement Benefit payments hereunder any
federal, state, local or employment taxes which it deems are required by law to
be withheld with respect to such payments.

 

17.                                 Fees and Expenses. 
The Company shall pay all reasonable legal fees and related expenses
(including the costs of experts, evidence and counsel) incurred by the Employee
as they become due as a result of (a) the Employee’s termination of
employment (including all such fees and expenses, if any, incurred in
contesting or disputing any such termination or employment), or (b) the
Employee seeking to obtain or enforce any right or benefit provided by this
Agreement or by any other plan or arrangement maintained by the Company under
which the Employee is or may be entitled to receive benefits.  In the event the Company is the prevailing
party in any such proceeding, except for fees and costs of arbitration and any
type of costs that are unique to arbitration, the Company shall be awarded the
legal fees and related expenses it has incurred on behalf of Employee pursuant
to this Section 17.

 

18.                                 No Set Off, Interest. 
Except as provided herein, the Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including without
limitation any set-off, counterclaim, recoupment, defense or other right which
the Company may have against the Employee or others.  All amounts provided herein shall include, in
each case, interest, compounded quarterly, on the total unpaid amount
determined to be payable under this Agreement, such interest to be calculated
on the basis of the prime commercial lending rate

 

9

 

announced by Bank of
America National Trust and Savings Association in effect from time to time
during the period of such nonpayment.

 

19.                                 Assignment.

 

(a)                                  This Agreement is personal to each of the
parties hereto.  No party may assign or
delegate any rights or obligations hereunder without first obtaining the
written consent of the other party hereto, except that this Agreement shall be
binding upon and inure to the benefit of any successor corporation to the
Company.

 

(b)                                 The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company 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 as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes this Agreement by operation of law, or otherwise.

 

(c)                                  This Agreement shall inure to the benefit
of and be enforceable by the Employee and his personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 

20.                                 (a)                                  Confidential Information. 
During the Term of this Agreement and thereafter, the Employee shall
not, except as may be required to perform his duties hereunder or as required
by applicable law, disclose to others for use, whether directly or indirectly,
any Confidential Information regarding the Company.  “Confidential Information”
shall mean information about the Company, its subsidiaries and affiliates, and
their respective clients and customers that is not available to the general
public and that was learned by the Employee in the course of his employment by
the Company, including (without limitation) any data, formulae, information,
proprietary knowledge, trade secrets and client and customer lists and all
papers, resumes, records and the documents containing such Confidential
Information.  The Employee acknowledges that
such Confidential Information is specialized, unique in nature and of great
value to the Company, and that such information gives the Company a competitive
advantage.  Upon the termination of his
employment, the Employee will promptly deliver to the Company all documents
(and all copies thereof) containing any Confidential Information.

 

(b)                                 Noncompetition. 
The Employee agrees that during the Term of this Agreement and for a
period of two (2) years thereafter (to the fullest extent permitted under
applicable law), he will not, directly or indirectly, without the prior written
consent of the Company, provide consultative service with or without pay, own,
manage, operate, join, control, participate in, or be connected as a
stockholder, partner, or otherwise with any business, individual, partner,
firm, corporation, or other entity which is then in competition with the
Company or any present affiliate of the Company; provided, however, that the “beneficial
ownership” by the Employee, either individually or as a member of a “group,” as
such terms are used in Regulation 13D of the Exchange Act, of not more than 1%
of the voting stock of any publicly held corporation shall not be a violation
of this Agreement.  Notwithstanding the
foregoing, Employee, subject to prior written consent by the Board, which
consent shall not be

 

10

 

unreasonably withheld,
may be a member of the board of directors of one or more other restaurant
companies provided that such other company or companies is/are not a
significant or direct competitor of the Company and provided further that
Employee’s acceptance of any other directorship position while a director of
the Company is not in violation of applicable laws or the Company’s policies or
procedures concerning the board of director positions.  It is further expressly agreed that the
Company will or would suffer irreparable injury if the Employee were to compete
with the Company or any subsidiary or affiliate of the Company in violation of
this Agreement and that the Company would by reason of such competition be
entitled to injunctive relief in a court of appropriate jurisdiction, and the
Employee further consents and stipulates to the entry of such injunctive relief
in such a court prohibiting the Employee from competing with the Company or any
subsidiary or affiliate of the Company in violation of this Agreement.

 

(c)                                  Right to Company Materials. 
The Employee agrees that all styles, designs, recipes, lists, materials,
books, files, reports, correspondence, records, and other documents (“Company Materials”) used, prepared, or made available to the
Employee, shall be and shall remain the property of the Company.  Upon the termination of his employment or the
expiration of this Agreement, all Company Materials shall be returned
immediately to the Company, and the Employee shall not make or retain any
copies thereof.

 

(d)                                 Antisolicitation. 
The Employee promises and agrees that during the Term of this Agreement,
and for a period of two years thereafter, he will not influence or attempt to
influence customers, franchisees, landlords, or suppliers of the Company or any
of its subsidiaries or affiliates, either directly or indirectly, to divert
their business to any individual, partnership, firm, corporation or other
entity then in competition with the business of the Company, or any subsidiary
or affiliate of the Company.

 

21.                                 Deferred Compensation. 
The parties agree that all provisions of this Agreement are intended to
meet, and to operate in accordance with, in all material respects, the
requirements of paragraphs (2), (3), and (4) of Section 409A(a) of
the Code, and any guidance from the Department of Treasury or Internal Revenue
Service thereunder, including any and all specifically referenced Regulation
Sections contained in the Agreement, but only to the extent any compensation or
benefits provided hereunder are not excepted or excluded from such requirements
pursuant to the short-term deferral exception described in Regulations Section 1.409A-1(b)(4),
the involuntary separation pay plan exception described in Regulations Section 1.409A-1(b)(9)(iii),
or otherwise.  Where ambiguity or
uncertainty exists, this Agreement shall be interpreted in a manner which would
qualify any compensation payable hereunder to satisfy the requirements for
exception to or exclusion from Section 409A and the taxes imposed
thereunder.

 

In the event either party reasonably determines any
item payable by the Company to the Employee pursuant to this Agreement that is
not subject to a substantial risk of forfeiture would not meet, or is
reasonably likely not to meet, the requirements of paragraphs (2), (3) and
(4) of Section 409A, or to qualify as excepted or excluded from Section 409A,
such party shall notify the other in writing. 
Any such notice shall specify in reasonable detail the basis and reasons
for such party’s determination.  The
parties agree to negotiate in good faith the terms and conditions of an
amendment to this Agreement and to avoid the inclusion of such item in a tax
year before the Employee’s actual receipt of such item of income.  Provided, however, nothing in this

 

11

 

Section 21 shall be
construed or interpreted to require the Company to increase any amounts payable
to the Employee pursuant to this Agreement or to sent to any amendment that
would materially and adversely change the Company’s financial, accounting or
tax treatment of the payments to the Employee under this Agreement.  Any item payable under this Agreement that
the Company reasonably determines is subject to Section 409A(a)(2)(B)(i) of
the Code, shall not be paid or commence payment before the later of (a) six
months after the date of the Employee’s Separation from Service and (b) the
payment date or commencement date specified in this Agreement for such item.

 

22.                                 Notice.  For the
purpose of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when delivered or mailed by United States certified or registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses set
forth below, or to such other addresses as either party may have furnished to
the other in writing in accordance herewith, except that notice of a change of
address shall be effective only upon actual receipt:

 

	
  Company:

  	
  The
  Cheesecake Factory Incorporated

  
	
   

  	
  26901
  Malibu Hills Road

  
	
   

  	
  Calabasas
  Hills, California 91301

  
	
   

  	
   

  
	
  With a copy to:

  	
  The
  Secretary of the Company

  
	
   

  	
   

  
	
  Employee:

  	
  David
  M. Overton

  
	
   

  	
  26901
  Malibu Hills Road

  
	
   

  	
  Calabasas
  Hills, California 91301

  

 

23.                                 Amendments or Additions. 
No amendment or additions to this Agreement shall be binding unless in
writing and signed by both parties hereto.

 

24.                                 Section Headings. 
The section headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the
interpretation of this Agreement.

 

25.                                 Severability. 
The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity
or enforceability of the other provisions hereof.

 

26.                                 Counterparts. 
This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but both of which together will constitute one and
the same instrument.

 

27.                                 Arbitration. 
Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel
of three arbitrators in Los Angeles, California, in accordance with the rules of
the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s
award in any court having jurisdiction.

 

12

 

28.                                 Miscellaneous. 
No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and
signed by the Employee and such officer as may be specifically designated by
the Board.  No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. 
No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which
are not expressly set forth in this Agreement. 
The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California without
regard to its conflicts of law principles. 
All references to sections of the Exchange Act or the Code and any rules or
regulations thereunder shall be deemed also to refer to any successor
provisions to such sections.  All
references to the Compensation Committee shall be deemed also to refer to any
committee of the Board however designated that performs similar functions.

 

Any payments provided for hereunder shall be paid net
of any applicable withholding required under federal, state or local law.  The provisions of this Agreement that may be
reasonably interpreted as surviving termination of this Agreement, including
Sections 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22 and 27, shall continue
in effect after termination and/or expiration of this Agreement.

 

[Remaining of page intentionally left blank]

[Next page is the signature page]

 

13

 

IN WITNESS WHEREOF, each of the parties hereto has
executed this Agreement on the date indicated next to their signatures below.

 

	
   

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  CHEESECAKE FACTORY INCORPORATED,

  
	
   

  	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  July
  14, 2009

  	
   

  	
  By:

  	
  /s/
  Debby Zurzolo

  
	
  Dated

  	
   

  	
   

  	
  DEBBY ZURZOLO,

  
	
   

  	
   

  	
   

  	
  Executive Vice President, Secretary and General
  Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  July
  13, 2009

  	
   

  	
  EMPLOYEE:

  
	
  Dated

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  David Overton

  
	
   

  	
   

  	
  DAVID
  OVERTON

  

 

S-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]