Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.18    
    

 
 

RED ROBIN GOURMET BURGERS, INC.
  2007 PERFORMANCE INCENTIVE PLAN
  NONQUALIFIED STOCK OPTION AGREEMENT    
    

        THIS NONQUALIFIED STOCK OPTION AGREEMENT (this "Option Agreement")
by and between RED ROBIN GOURMET BURGERS, INC., a Delaware corporation (the "Corporation"), and
the grantee of the option ("Grantee") evidences the nonqualified stock option (the "Option") granted by
the Corporation to the Grantee as to the number of shares of the Corporation's Common Stock(1), the Award (Grant) Date, the Grant (Exercise) Price per share, the Expiration (Expiry) Date(2) and the
Vesting Schedule (collectively, the "Grant Terms"), all of which are set forth and described as a Grant and contained in Grantee's Employee Portfolio on
the Computershare website (the "Website") (unless otherwise specified by the Corporation), and expressly incorporated herein by reference, and made a
part hereof. 

        The
Option is granted under the Red Robin Gourmet Burgers, Inc. 2007 Performance Incentive Plan (the "Plan") and is subject to the
Grant Terms, the Terms and Conditions of Nonqualified Stock Option (the "Terms") contained in this Option Agreement and the Plan. The Option has been
granted to the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. Capitalized terms are defined in the Plan if not defined
herein. The Grantee acknowledges receipt of a copy of this Option Agreement, the Grant Terms, the Plan, and the Prospectus for the Plan. 

 
 

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTION    
    

1.     Vesting; Limits on Exercise; Incentive Stock Option Status.  

        The Option may be exercised only to the extent the Option is vested and exercisable. The Option shall vest and become exercisable as set forth on the Vesting
Schedule; for the Option described in the Grant in the Grantee's Employee Portfolio on the Website. 

	•
	Cumulative Exercisability.  To the extent that the Option is vested and exercisable, the Grantee has the right to
exercise the Option (to the extent not previously exercised), and such right shall continue, until the expiration or earlier termination of the Option.

	•
	No Fractional Shares.  Fractional share interests shall be disregarded, but may be cumulated.

	•
	Nonqualified Stock Option.  The Option is a nonqualified stock option and is not, and shall not be, an incentive
stock option within the meaning of Section 422 of the Code. 

2.     Continuance of Employment/Service Required; No Employment/Service Commitment.  

        The vesting schedule described in the Grantee's Employee Portfolio on the Website with respect to the Grant requires continued employment or service through each
applicable vesting date as a condition to the vesting of the applicable installment of the Option and the rights and benefits under this Option Agreement. Employment or service for only a portion of
the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination
of employment or services as provided in Section 4 below or under the Plan. 

        Nothing
contained in this Option Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee's
status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or
any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary
to increase or decrease the Grantee's other compensation. 

 

3.     Method of Exercise of Option.  

        The Option shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Administrator may require pursuant to such
administrative exercise procedures as the Administrator may implement from time to time) of: 

	•
	a
written notice stating the number of shares of Common Stock to be purchased pursuant to the Option or by the completion of such other administrative exercise procedures as
the Administrator may require from time to time,

	•
	payment
in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the Corporation, or (subject to compliance with all
applicable laws, rules, regulations and listing requirements and further subject to such rules as the Administrator may adopt as to any non-cash payment) in shares of Common Stock already
owned by the Participant, valued at their Fair Market Value on the exercise date, provided, however,
that any shares initially acquired upon exercise of a stock option or otherwise from the Corporation must have been owned by the Participant for at least six (6) months before the date of such
exercise;

	•
	any
written statements or agreements required pursuant to Section 8.1 of the Plan; and

	•
	satisfaction
of the tax withholding provisions of Section 8.5 of the Plan. 

        The
Administrator also may, but is not required to, authorize a non-cash payment alternative by notice and third party payment in such manner as may be authorized by the
Administrator. 

4.     Early Termination/Acceleration of Option.  

        4.1    Possible Acceleration of Option upon Change in Control.    As
provided in Section 7.3 of the Plan, if the Corporation undergoes a Change in Control Event, any outstanding Option will become fully vested. However, with respect to participants who are
designated on the Corporation's payroll records as a Tier 1 or Tier 2 executive or above or an executive officer on the date of the Change in Control Event, no Option will vest solely on
account of a Change in Control Event unless such executive's employment with the Corporation is terminated without Cause (as defined below) within the two-year period following such Change
in Control Event. 

        4.2    Termination of Option upon a Termination of Grantee's Employment or
Services.    Subject to earlier termination on the Expiration Date of the Option, if the Grantee ceases to be employed by or ceases to provide services to the
Corporation or a Subsidiary, the following rules shall apply (the last day that the Grantee is employed by or provides services to the Corporation or a Subsidiary is referred to as the Grantee's
"Severance Date"): 

	•
	other
than as expressly provided below in this Section 4.2, (a) the Grantee will have until the date that is 90 days after his or her Severance Date to
exercise the Option (or portion thereof) to the extent that it was vested on the Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance
Date, and (c) the Option, to the extent exercisable for the 90-day period following the Severance Date and not exercised during such period, shall terminate at the close of business
on the last day of the 90-day period;

	•
	if
the termination of the Grantee's employment or services is the result of the Grantee's death or Total Disability (as defined below), then the Grantee (or his beneficiary
or personal representative, as the case may be) will have until the date that is 12 months after the Grantee's Severance Date to exercise the Option, (b) the Option, to the extent not
vested on the Severance Date, shall terminate on the Severance Date, and (c) the Option, to the extent exercisable for the 12-month period following the Severance Date and not
exercised during such period, shall terminate at the close of business on the last day of the 12-month period; 

2

 

	•
	if
the Grantee's employment or services are terminated by the Corporation or a Subsidiary for Cause (as defined below), the Option (whether vested or not) shall terminate on
the Severance Date. 

        For
purposes of the Option, "Total Disability" means a "permanent and total disability" (within the meaning of Section 22(e)(3) of
the Code or as otherwise determined by the Administrator). 

        For
purposes of the Option, "Cause" means that the Grantee: 

	(1)
	has
been negligent in the discharge of his or her duties to the Corporation or any of its Subsidiaries, has refused to perform stated or assigned duties or is incompetent in or (other
than by reason of a disability or analogous condition) incapable of performing those duties;

	(2)
	has
been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information, customer
lists, trade secrets or other confidential information; has breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or policy of the Corporation, any of
its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; or has been convicted of a felony or misdemeanor (other than minor traffic violations or similar offenses);

	(3)
	has
materially breached any of the provisions of any agreement with the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; or

	(4)
	has
engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of, the Corporation, any of its Subsidiaries or
any affiliate of the Corporation or any of its Subsidiaries; has improperly induced a vendor or customer to enter into, break or terminate any contract with the Corporation, any of its Subsidiaries or
any affiliate of the Corporation or any of its Subsidiaries; or has induced a principal for whom the Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries
acts as agent to terminate such agency relationship. 

        In
all events the Option is subject to earlier termination on the Expiration Date of the Option. The Administrator shall be the sole judge of whether the Grantee continues to render
employment or services for purposes of this Option Agreement. 

5.     Non-Transferability.  

        The Option and any other rights of the Grantee under this Option Agreement or the Plan are nontransferable and exercisable only by the Grantee, except as set
forth in Section 5.7 of the Plan. 

6.     Notices.  

        Any notice to be given under the terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of
the Secretary, and to the Grantee at the address last reflected on the Corporation's payroll records, or at such other address as either party may hereafter designate in writing to the other. Any such
notice shall be delivered in person or shall be enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee
prepaid) in a post office or branch post office regularly maintained by the United States Government. Any such notice shall be given only when received, but if the Grantee is no longer employed by the
Corporation or a Subsidiary, shall be deemed to have been duly given five business days after the date mailed in accordance with the foregoing provisions of this Section 6. 

3

 

7.     Plan.  

        The Option and all rights of the Grantee under this Option Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the
Plan, incorporated herein by this reference. In the event of a conflict or inconsistency between the terms and conditions of this Option Agreement and of the Plan, the terms and conditions of the Plan
shall govern. The Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these Terms). The Grantee acknowledges having read and understanding the Plan, the Prospectus
for the Plan, and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the
Administrator do not and shall not be deemed to create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the
Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof. 

8.     Entire Agreement.  

        The Grant, the Grant Terms and this Option Agreement and the Plan together constitute the entire agreement and supersede all prior understandings and agreements,
written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be
in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the
Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 

9.     Governing Law.  

        This Option Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law
principles thereunder. 

10.   Effect of this Agreement.  

        Subject to any early termination of the Option pursuant to Section 7.4 of the Plan, this Option Agreement shall be assumed by, be binding upon and inure to
the benefit of any successor or successors to the Corporation. 

11.   Section Headings.  

        The section headings of this Option Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof. 

	 	 	RED ROBIN GOURMET BURGERS, INC., a Delaware corporation
	

 	
 	

By	

	 	 	Title:	 

	(1)
	Subject
to adjustment under Section 7.1 of the Plan.

	(2)
	Subject
to early termination under Section 4 of this Option Agreement and Section 7.4 of the Plan. 

4

QuickLinks

Exhibit 10.18

RED ROBIN GOURMET BURGERS, INC. 2007 PERFORMANCE INCENTIVE PLAN NONQUALIFIED STOCK OPTION AGREEMENT

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTIONQuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.7    
    

 
 

FORM OF RESTRICTED SHARE AWARD AGREEMENT    
    

        THIS AGREEMENT (the "Agreement") is made, effective as
of                                    (the "Date of Grant"), between
KKR Financial Holdings LLC, a Delaware limited
liability company (hereinafter called the "Company"),
and                                    (hereinafter called the
"Participant"). 

R E C I T A L S:  

        WHEREAS, the Company has adopted the 2007 Share Incentive Plan for KKR Financial Holdings LLC (the "Plan"), which Plan is incorporated herein by reference
and made a part of this Agreement; capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and 

        WHEREAS,
the Committee has determined that it would be in the best interests of the Company and its Members to grant the restricted share award provided for herein to the Participant
pursuant to the Plan and the terms set forth herein. 

        NOW
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 

        1.    Grant of the Restricted Shares.    Subject to the terms and conditions of the Plan and the additional terms and
conditions set forth in this Agreement, the Company hereby grants to the Participant a restricted share award (the "Restricted Share Award") consisting
of                Shares (hereinafter called
the "Restricted Shares"). The Restricted Shares shall vest and become nonforfeitable in accordance with Section 2 hereof. 

        2.    Vesting.    

        (a)   Subject
to the Participant's continued service with the Company and its Affiliates, the Restricted Shares shall vest and become nonforfeitable with respect to 100% of
the Shares initially granted hereunder on the third anniversary of the Date of Grant. Notwithstanding the foregoing, in the event the above vesting schedule results in the vesting of any fractional
Shares, such fractional Shares shall not be deemed vested hereunder but shall vest and become nonforfeitable when such fractional Shares aggregate whole Shares. 

        (b)   If
the Participant's service with the Company and its Affiliates terminates or is terminated for any reason, the Restricted Shares shall, to the extent not then vested,
be forfeited by the Participant without consideration; provided that in the event the Participant's service with the Company and its Affiliates is
terminated by the Company other than for Cause (as defined in the Management Agreement), including non-renewal of the Management Agreement by the Company, or by the Manager pursuant to
Section 15 of the Management Agreement, the Restricted Shares shall, to the extent not then vested and not previously forfeited, immediately become fully vested. 

        (c)   Notwithstanding
any other provision of this Agreement to the contrary, in the event a Change in Control occurs during the period the Participant is providing services to
the Company and its Affiliates, the Restricted Shares shall, to the extent not then vested and not previously forfeited, immediately become fully vested, subject to Section 9(b) of the Plan. 

        (d)   For
purposes of this Agreement, "service" means service provided by the Participant to the Company and its Affiliates pursuant to the terms of the Management Agreement. 

        3.    Certificates.    Certificates evidencing the Restricted Shares shall be issued by the Company and shall be
registered in the Participant's name on the share transfer books of the Company promptly after the date hereof, but shall remain in the physical custody of the Company or its designee at all times
prior to the vesting of such Restricted Shares pursuant to Section 2. As a condition to the receipt of this Restricted Share Award, the Participant shall deliver to the Company a share power,
duly endorsed in blank, relating to the Restricted Shares. No certificates shall be issued for fractional Shares. 

 

        4.    Rights as a Member.    The Participant shall be the record owner of the Restricted Shares until or unless such
Restricted Shares are forfeited pursuant to Section 2 hereof, and as record owner shall be entitled to all rights of a member of the Company, including, without limitation, voting rights with
respect to the Restricted Shares and the Participant shall receive, when paid, any dividends or distributions on all of the Restricted Shares granted hereunder as to which the Participant is the
record holder on the applicable record date, which, for the avoidance of doubt, shall not be subject to any restrictions or vesting conditions; provided
that the Restricted Shares shall be subject to the limitations on transfer and encumbrance set forth in Section 7. As soon as practicable following the vesting of any Restricted Shares pursuant
to Section 2, certificates for the Restricted Shares which shall have vested shall be delivered to the Participant along with the share powers relating thereto. 

        5.    Legend on Certificates.    The certificates representing the vested Restricted Shares delivered to the
Participant shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions. 

        6.    No Right to Continued Service.    The granting of the Restricted Shares evidenced by this Agreement shall impose
no obligation on the Company or any Affiliate to continue the service of the Participant and shall not lessen or affect the Company's or any Affiliate's right to terminate the service of such
Participant. 

        7.    Transferability.    The Restricted Shares may not, at any time prior to becoming vested pursuant to
Section 2, be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant and any such purported assignment, alienation, pledge, attachment, sale,
transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate. Notwithstanding the foregoing, subject to such terms and conditions as the Committee shall require in
connection therewith, the Participant may transfer all or part of the Restricted Share Award to an employee of the Participant and other Persons who perform services for the Company or its Affiliates
(each, a "Permitted Transferee"); provided that the Participant gives the Committee advance written notice describing the terms and conditions of the
proposed transfer and the Committee notifies the Participant in writing that such transfer would comply with the requirements of the Plan, this Agreement, and any other terms and conditions as the
Committee shall require in connection with such transfer. The Company may issue replacement Restricted Share Award agreements that reflect such transfer, and may require the applicable Permitted
Transferee to sign such agreement. Unless otherwise provided pursuant to a replacement Restricted Share Award agreement which reflects such transfer, the terms of any Restricted Share Award so
transferred in accordance with the immediately preceding sentence shall apply to the Permitted Transferee and any reference in the Plan or in this Agreement to the Participant shall be deemed to refer
to the Permitted Transferee, except that (a) Permitted Transferees shall not be entitled to transfer any Restricted Shares, other than by will or the laws of descent and distribution,
(b) Permitted Transferees shall not be entitled to receive any transferred Restricted Shares unless there shall be in effect a registration statement on an appropriate form covering the Shares
if the Committee determines that such a registration statement is necessary or appropriate, (c) the Committee or the Company shall not be required to provide any notice to Permitted
Transferees, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise, and (d) the consequences of termination of the
Participant's service with the Company and
its Affiliates under the terms of the Plan and this Agreement shall continue to be applied with respect to the Participant and the Permitted Transferees. 

        8.    Withholding.    The Participant may be required to pay to the Company or any Affiliate and the Company or any
Affiliate shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Restricted Shares, their grant or vesting or any payment or transfer 

2

 

with
respect to the Restricted Shares and to take such action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. Without limiting
the generality of the foregoing, to the extent permitted by the Committee, the Participant may satisfy, in whole or in part, the foregoing withholding liability (a) by delivery of Shares held
by the Participant (which are fully vested and not subject to any pledge or other security interest), (b) by having the Company withhold from the number of Restricted Shares otherwise
deliverable to the Participant hereunder Restricted Shares with a Fair Market Value not in excess of the statutory minimum withholding liability or (c) by a cash payment from the Participant or
from a broker-dealer acceptable to the Company through whom the Participant sells the Restricted Shares. 

        9.    Securities Laws.    Upon the vesting of any Restricted Shares, the Participant will make or enter into such
written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement. 

        10.    Notices.    Any notice necessary under this Agreement shall be addressed to the Company in care of its
Secretary at the principal executive office of the Company and to the Participant at the address appearing in the corporate records of the Company for such Participant or to either party at such other
address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee. 

        11.    Choice of Law.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS.

        12.    Restricted Share Award Subject to Plan.    By entering into this Agreement the Participant agrees and
acknowledges that the Participant has received and read a copy of the Plan. The Restricted Share Award and the Restricted Shares granted hereunder are subject to the Plan. The terms and provisions of
the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the
Plan, the applicable terms and provisions of the Plan will govern and prevail. 

        13.    Signature in Counterparts.    This Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement. 

	 	 	KKR FINANCIAL HOLDINGS LLC
	

 	
 	

By:	
 	

    
 Name:

Title:

Agreed
and acknowledged as of the date first

above written: 

[PARTICIPANT]

	By:	 	    
 Name:

Title:	 	 

3

QuickLinks

Exhibit 10.7

FORM OF RESTRICTED SHARE AWARD AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]