Document:

Exhibit 10.1

    

     

    

    
      

      

      

      November 4, 2019

      

      

      Mr. Mike Burns

      7027 N 79th Place

      Scottsdale, AZ  85258

      

      

      Dear Mike:

      

      

      Rave Restaurant Group, Inc. ("Rave Restaurant Group") is pleased to make you the following offer of employment for the salaried, exempt position of Chief Operations Officer, Rave. This offer letter shall be the employment agreement (the "Agreement") governing the terms of your employment with the Rave Restaurant Group and its subsidiaries (collectively, the "Company") and shall become effective on the Start Date indicated below.

      

      

      	
              Position:

            	
              Chief Operations Officer, Rave Restaurant Group

            
	

            	

            
	
              Reporting to:

            	
              Brandon Solano, CEO, Rave Restaurant Group

            
	

            	

            
	
              Start Date:

            	
              November 25th, 2019

            

      

      

      Annual Salary:

      Your annual base pay (“Base Annual Salary”) in this exempt position will be $225,000.00, to be paid bi-weekly during your employment with the Company and subject to all applicable
          withholdings.  You will be paid the gross amount of $8, 653.85 on every other Friday, in accordance with the Company’s standard payroll practice.

      

      

      Bonus:

      In addition to your Base Annual Salary, you will be eligible to participate in the Company’s Bonus Plan, which is typically based on the Company’s financial performance and strategic goals relative to targets set by
        the Board of Directors.  The amount of bonus earned is subject to the approval of the Board of Directors, which may use its discretion to interpret the Company’s achievement of the bonus targets and take in to consideration unusual, one-time, or
        forward-looking factors that affected the Company’s historical results or may affect the Company’s future prospects.  Your annual bonus target shall be 50% of your base salary upon achievement of certain financial and strategic bonus targets and
        upon the discretion of the Chief Executive Officer and Compensation Committee of the Company.

       

      

      
        
          

      

      Long Term Incentive Compensation:

      As additional consideration for your duties and responsibilities to be performed, you will be eligible to participate in the company’s Long Term Incentive Plan (the “LTIP”) and receive 15% of your
        base salary in LTIP, which currently consists of Restricted Stock Units (RSU) awards with 3-year performance and time vesting criteria.  The terms and conditions associated with he RSUs will be provided in a separate Restricted Stock Unit Award
        Agreement each year, and the performance criteria for each award shall be subject to the approval of the compensation committee.

      

      

      Relocation Assistance:

      The company will provide you with relocation assistance.  Please reference separate documents:  Relocation Expenses Policy and the Moving and Relocation Expense Agreement

      

      

      Employee Benefits:

      You will be eligible to participate in RAVE Restaurant Group Inc. employee benefit plans, subject to any waiting or qualification periods imposed by the Company or its benefit providers. Detailed information regarding employee benefits will be provided on your first day of employment. Such rights, programs and benefit plans may be revised from time to time at the Company’s sole discretion. You will be
        eligible to earn 40 hours of “Extra! Time” in your first year of employment per company schedule.  You will additionally be eligible to receive four weeks (160 hours) of vacation in your first year.  Should you leave prior to your one year
        employment anniversary, this special granted vacation will not be paid out. Please note that vacation time must be used before Extra! Time.  All planned time-off must be requested in advance and is subject to manager approval based on specific
        department requirements and deadlines.

      

      

      Exclusivity:

      During your employment with the Company, you agree (i) to devote substantially all of your business time, energy, skill and best efforts to the performance of your duties hereunder in a manner that  will faithfully  and diligently  further  the
        business and interests of the Company,  and (ii) that you shall have no agreements with, or material obligations to, any other individual partnership, corporation , or legal entity, specifically including any confidentiality, non-disclosure,
        non-solicitation, or non-competition agreements or obligations, that may or would conflict with your obligations under this Agreement.

       

      "At Will"
        Employee:

       
      It is anticipated that you will be a long-term employee
        of the Company. However, your employment with the Company is for no specified period and constitutes "at-will" employment, which means that you have the right to resign from your employment at any time, with or without notice, and the Company has
        the right to modify your employment, subject to the compensation provisions outlined above, or terminate your employment at any time, with or without cause, and with or without notice. No representative of the Company has the authority to enter
        into any agreement with you guaranteeing employment for any specified period of time or modifying the at -will relationship, unless it is done so in writing and signed by you and the Chairman of the Company and approved by the Board of Directors.

       
      

         

       
      Non-Disclosure of Confidential Information:

       
      You acknowledge that in your employment with the
          Company, you will occupy a position of trust and confidence. You agree that during your employment with the Company and at any time t hereafter, except as may be required to perform your job duties for the benefit of the Company or as required by applicable law, you shall not disclose to others or use, whether directly or indirectly, any Confidential Information regarding the
          Company. "Confidential Information" shall mean any non-public or proprietary information regarding the Company, its business, restaurant concepts, franchisees, and customers, in whatever form, tangible or intangible, that is not disclosed publicly by the Company, including (without limitation) any proprietary knowledge, trade secrets, recipes, designs, products, inventions, business practices, programs, processes, techniques, know-how, management programs, methodology, financial information, pricing and fee information, agreements and arrangements with affiliates, employee files, personnel records, internal corporate records,
          corporate and business contacts and relationships, corporate and business opportunities, telephone logs and messages, client, consultant and customer lists and any and all ot her materials and information pertaining to the Company or its business to which you have been exposed or have access to as a
          consequence of your employment with the Company. You acknowledge 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. You agree to deliver or return to the Company, at the Company 's request at any time or upon termination of your employment all Confidential Information
          (and all copies thereof) furnished by the Company or prepare d by you during your employment with the Company.

       

        

      
        
          

      

      Ownership of Rights:

       
      You acknowledge and confirm that the Company shall own,
        in perpetuity, throughout the universe, all right, title and interest in and to the results and proceeds of your services to the Company and all material produced and/or furnished by you, of any kind and nature whatsoever, it being understood and
        agreed that the Company hereby acquires the maximum rights permitted to be obtained by the Company in all proprietary rights and information.  Any  such  materials and/or ideas submitted to the Company hereunder automatically shall become the
        property of Company, and you hereby transfer and agree to transfer and assign to Company all of said rights and materials  (including,  without  limitation,  all copyrights  and similar protections,  renewals and extensions of copyright, and any
        and all causes of action that may have accrued in your favor for infringement of copyright), it being understood that you, for purposes of your employment with the Company, are acting entirely as Company's executive for hire. You agree that you
        will, at Company's request, execute and deliver to Company or procure the execution and delivery to Company of such documents or other instruments which Company may from time to time deem reasonably necessary or desirable to evidence, maintain and
        protect its rights hereunder and to carry out the intent and purposes of this Agreement and to convey to Company all rights in and to the material supplied to Company by you in this Agreement.

       
      

         

       
      Covenant Not to
        Compete:

       
      By accepting this offer, you agree
        that for a period of twelve (12) months immediately following termination of your employment with RAVE Restaurant Group for any reason, (i) you will not on behalf of yourself or any other business entity call upon, contact or solicit any client or
        customer of RAVE Restaurant Group with whom you had contact within six (6) months preceding your last day of employment with RAVE Restaurant Group; and (ii) you will not call upon, solicit, recruit, or assist others in calling upon, recruiting or
        soliciting any person who is or was an employee of RAVE Restaurant Group within the six (6) months immediately preceding your last day of employment with RAVE Restaurant Group, in an attempt to have such person work in any other corporation,
        association, or entity or business engaged in the business of the same kind as offered by RAVE Restaurant Group.

       
      

         

       
      Non-Solicitation:

       
      As consideration for the employment terms provided by
        the Company, you agree that you shall not, either alone or jointly, with or on behalf of others, directly or indirectly , whether as principal, partner, agent, shareholder, director, employee, consultant or otherwise, at any time during your
        employment and for a period of eighteen (18) months after the end of your employment with the Company, regardless of the payment of any severance or other consideration to you following the cessation of your employment with the Company, (a)
        directly or indirectly hire or solicit the employment or engagement of, or otherwise aid in the inducement or enticement away from the employment or engagement of the Company or any affiliated entity, either for your own benefit or for any other
        person or entity, any employee or consultant who was employed or engaged by the Company or any such affiliated entity during the term of your employment, whether or not such employee or consultant would commit any breach of his/her contract of
        employment or consulting arrangement by reason of his/her leaving the service of the Company or any affiliated entity; (b) directly or indirectly solicit, induce or entice any client, franchisee, supplier, customer, contractor, licensor, agent,
        partner or other business relationship of the Company (including any such types of parties of which the Company is or was actively pursuing a business relationship that had not yet been consummated as of your termination date) (collectively, the
        Company's "Counterparties") to terminate, discontinue, renegotiate or otherwise cease or modify its or their relationship with the Company or any affiliated entity; or (c) make disparaging comments to the Company's Counterparties or in public
        forums, unless required by law, which is intended, or would reasonably be expected, to harm the Company or its reputation with such Counterparties.

       

        

      
        
          

      

      Acknowledgement:

       
      You expressly acknowledge and agree that the
          restrictions contained in this Agreement (exclusivity, non-disclosure,
          non-competition and non-solicitation) are reasonably tailored to protect the
          Company's Confidential Information and its business and are reasonable in all
          circumstances in scope, duration and all other respects. It is expressly agreed by the parties that if for any reason whatsoever, any one or more of the
          restrictions in this Agreement shall (either taken by itself or themselves
          together) be adjudged to go beyond what is reasonable in all circumstances for the protection of the legitimate interests of the Company, the parties agree that the prohibitions shall be in effect and upheld to the fullest extent permissible under applicable laws.

       
      

         

       
      Governing
          Law:

       
      This Agreement will be governed by and construed
          in accordance with the laws of the State of Texas applicable to contracts made and per formed in such Stat e without giving effect to the choice of law principles
          of such State that would require or permit the application of the
          laws of another jurisdiction.

       
      

         

       
      Successors:

       
      This Agreement is personal to you and shall not be assignable by you. This Agreement shall inure to the benefit of and be binding upon the Company and its affiliated companies, successors and assigns.

       
      

         

       
      Severability:

       
      If a provision of this Agreement shall be held
          illegal or invalid, the illegality or invalidity shall not affect the remaining
          parts of this Agreement and his Agreement shall be construed and enforced as if the illegal or invalid provision had never comprised a part of
          this Agreement.

       
       

      

       
      Acceptance:

       
      This offer letter sets forth the terms of your
          employment with the Company and supersedes any and all prior representations and agreements, whether written or oral.  This offer of employment is conditional upon your passing the pre-employment background screening, and remains valid until
          close of business on November 8, 2019. If accepted and executed, this offer shall be deemed to
          be a binding definitive agreement in full force and effect. If not so accepted
          by that time, this offer will be deemed withdrawn and will be no further in force or effect. Any representations that may have been made to you concerning the terms or conditions of employment, whether orally or in writing, are cancelled and superseded by this letter. Any modifications to the terms of your employment must be confirmed to you in writing to be valid and enforce able and your election to
          continue in the Company's employ after such confirmation will be deemed to be your
          agreement to such modifications. You will also be asked to bring to your first day of work personal identification documents in order to complete your employment eligibility paperwork as required by Federal law. Furthermore, in the Company's discretion, the effectiven ess of this offer may be conditioned
          on your consent to and the Company's receipt of a background check of you to be performed by an agent of the Company, the results of which are reasonably satisfactory to the Company.

       
       

        

      
        
          

      

      Construction:

       
      No term or provision of this Agreement shall be
        construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision of t his Agreement and any present or future statue, law, ordinance, or regulation contrary to which the parties have no
        legal right to contract, the latter shall prevail , but in such event the affected provision of this agreement shall be curtailed and limited only to the extent necessary to bring t he provision within the requirements of the law.

       
       

         

       
      Please mail, or scan/email the
        signed offer letter to:

       
       

         

       
      RAVE Restaurant
        Group

       
      Attention:
        Ursula Averett

       
      3551 Plano
        Parkway

       
      The Colony, TX 
        75056

       
      Email: 
        uaverett@raverg.com

       
      

         

       
      Counterparts: This Agreement may be executed in one or more original
          or facsimile counterparts, all of which shall be considered but one and the same agreement, and shall become effective when one or more such counterparts have been executed by each of the parties and delivered to the other parties.

       
      

         

       
      Should you have any questions
        about this letter, please feel free to contact me directly.  We look forward to having you join our team, as well as the contribution you will make to the organization.

       
      

         

       
      Sincerely,

       
      

         

       
      
        Brandon Solano

      

       
      

         

       
      Brandon Solano

       
      CEO, RAVE Restaurant Group

       
      

         

       
      AGREED TO AND
        ACCEPTED BY:

       
      

         

       
      
 
          	
              /s/  Mike Burns

            	

            

 	
              Name Signed

            	

            

 	

            	

            

 	
              Mike Burns

            	

            

 	
              Name Printed

            	

            

 	

            	

            

 	
              November 9, 2019

            	

            

 

 	
              DateEXECUTION

 

AMENDMENT NO. 1

to

CREDIT AGREEMENT

This Amendment No. 1 to Credit Agreement, dated as of November 13, 2019 (this "Amendment"), is entered into by and among Urban One, Inc. (f/k/a Radio One, Inc.), a Delaware corporation (the "Borrower"), Wells Fargo Bank, National Association, as administrative agent (in such capacity, "Agent") for the Lenders (as defined in the Credit Agreement referred to below), and the Lenders.

RECITALS

WHEREAS, the Borrower, Agent and Lenders are parties to that certain Credit Agreement, dated as of April 21, 2016, including all exhibits and schedules thereto (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement");

WHEREAS, the Borrower has requested that Agent and Lenders make certain accommodations and amend the Credit Agreement, in each case, as and to the extent set forth in this Amendment, and Agent and Lenders are willing to agree to the foregoing as and to the extent, and solely as and to the extent, and subject to the terms and conditions set forth in this Amendment; and

WHEREAS, this document shall constitute a Loan Document and these Recitals shall be construed as part of this Amendment.

NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and of the Loans and other extensions of credit heretofore, now or hereafter made to, or for the benefit of, the Borrower by Lenders, the Borrower, Agent and Lenders hereby agree as follows:

1. Definitions.  Capitalized terms used in this Amendment shall have the same meanings ascribed to them in the Credit Agreement.

2. Amendments to Credit Agreement and the other Loan Documents.  The Credit Agreement and the Loan Documents shall be amended as follows:

2.1. Applicable Margin. The definition of "Applicable Margin" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

""Applicable Margin" shall mean, as of any date of determination and with respect to Base Rate Loans or LIBOR Loans, as applicable, the applicable margin set forth in the following table that corresponds to the Average Availability of the Borrower for the most recently completed Fiscal Quarter; provided, that any time an Event of Default has occurred and is continuing, the Applicable Margin shall be set at the margin in the row styled "Level III":

	
 

Level

	 	
 

Average Availability

	 	
Applicable Margin Relative to Base Rate Loans

	 	 	
Applicable Margin Relative to LIBOR Loans

	 
	 	I 	
 

	
Greater than two thirds of the Revolving Loan Limit

	 	 	
0.50

	
%

	 	 	
1.75

	
%

	
II

	 	
Greater than one third of the Revolving Loan Limit but less than or equal to two thirds of the Revolving Loan Limit

	 	 	
0.75

	
%

	 	 	
2.00

	
%

	
III

	 	
Less than or equal to one third of the Revolving Loan Limit

	 	 	
1.00

	
%

	 	 	
2.25

	
%

Except as expressly provided above, the Applicable Margin shall be re-determined as of the first day of each Fiscal Quarter of the Borrower."

2.2. Financial Covenant Triggering Event.  The definition of "Financial Covenant Triggering Event" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

""Financial Covenant Triggering Event" shall mean the failure of the Borrower to maintain Availability equal to or greater than $7,500,000 at any time.  For purposes hereof, the occurrence of a Financial Covenant Triggering Event shall be deemed continuing until Availability has equaled or exceeded $7,500,000 for sixty (60) consecutive days, in which case, a Financial Covenant Triggering Event shall no longer be deemed to be continuing for purposes of this Agreement."

2.3. Maturity Date.  The definition of "Maturity Date" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

""Maturity Date" shall mean the earlier to occur of (a) April 21, 2021 and (b) the date that is thirty (30) days prior to the earlier to occur of (i) the Term Loan Maturity Date (as defined in the Term Loan Credit Agreement as in effect on the Effective Date or as the same may be extended in accordance with the terms of the Term Loan Credit Agreement), and (ii) the Stated Maturity (as defined in the Senior Secured Notes Indenture (as defined in the Term Loan Credit Agreement)) of the Notes (as defined in the Senior Secured Notes Indenture as in effect on the Effective Date or as the same may be extended in accordance with the terms of the Senior Secured Notes Indenture)."

2.4. Revolving Loan Limit.  The definition of "Revolving Loan Limit" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

""Revolving Loan Limit" shall mean $37,500,000, as such amount may be decreased by the amount of reductions in the Revolving Loan Commitment Amount made in accordance with Section 2.01(d) of this Agreement."

2.5. Section 1.01 of the Credit Agreement is hereby amended by inserting the following defined terms in the appropriate alphabetical order:

"First Amendment" means that certain Amendment No. 1 to Credit Agreement, dated as of November 13, 2019, among the Borrower, Agent and Lenders.

"First Amendment Effective Date" means November 13, 2019.

2.6. Letters of Credit.  Section 2.04(a)(ii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

"(ii) the Letter of Credit Usage would exceed $7,500,000, or"

2.7. Schedule 1.01A of the Credit Agreement is hereby amended and restated in its entirety to read as set forth on Exhibit 1 attached hereto.

3. Conditions Precedent to Effectiveness.  The effectiveness of this Amendment is expressly conditioned upon the satisfaction of the following conditions precedent:

3.1. Amendment.  Agent's receipt of counterparts of this Amendment, duly executed by the Borrower, the Agent and the Required Lenders.

3.2. Minimum Availability.  Both before and immediately after giving effect to this Amendment and the payment of all fees and expenses required to be paid by the Borrower on the First Amendment Effective Date under this Amendment, the Borrower shall have Availability of not less than $20,000,000.

3.3. Amendment Fee; Expenses  Agent's receipt of (i) the amendment fee as set forth in Section 4 of this Amendment and (ii) costs and expenses as set forth in Section 8 of this Amendment.

3.4. No Defaults.  Both before and after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

 

 

4. Amendment Fee.  In addition to any other fees payable under the Credit Agreement, in consideration of the agreements as provided for hereunder, the Borrower shall pay to Agent, for the benefit of Lenders, an amendment fee in the amount of $31,250.  The amendment fee shall be fully earned and payable as of the date hereof and may be charged to the Borrower's account maintained with Agent on the First Amendment Effective Date.

5. Representations and Warranties.  The Borrower hereby represents and warrants to Agent and Lenders that:

5.1. The execution, delivery and performance by the Borrower of this Amendment has been duly authorized by all necessary corporate action, and this Amendment constitutes the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except to the extent the enforcement hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally or to general principles of equity (regardless of whether enforcement is sought in equity or at law).

5.2. The Borrower hereby represents, warrants and reaffirms that the Credit Agreement and each of the other Loan Documents remain in full force and effect.

6. Reference to and Effect Upon the Credit Agreement and the Other Loan Documents.

6.1. Full Force and Effect.  Except as specifically provided herein, the Credit Agreement and each other Loan Document shall remain in full force and effect and each is hereby ratified and confirmed by the Borrower.

6.2. No Waiver.  The execution, delivery and effect of this Amendment shall be limited precisely as written and shall not be deemed to (i) be a consent to any waiver of any term or condition, or to any waiver or modification of any term or condition (except as specifically provided in this Amendment) of the Credit Agreement or any other Loan Document or (ii) prejudice any right, power or remedy which the Agent or any Lender now has or may have in the future under or in connection with the Credit Agreement or any other Loan Document.

6.3. Certain Terms.  Each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or any other word or words of similar import shall mean and be a reference to the Credit Agreement as modified by this Amendment.  Each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as modified by this Amendment.

7. Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed an original but all such counterparts shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by telecopier or "pdf" shall be as effective as delivery of a manually executed counterpart signature page to this Amendment.

8. Costs and Expenses.  As provided in the Credit Agreement, the Borrower shall pay the fees and documented out-of-pocket costs and expenses incurred by Agent in connection with the preparation, execution and delivery of this Amendment (including, without limitation, reasonable attorneys' fees).

9. GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

10. Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

BORROWER:

URBAN ONE, INC.

By: 

Name: 

Title: 

 

 

 

[Signatures Continued from Previous Page]

AGENT AND LENDER:

WELLS FARGO BANK, NATIONAL ASSOCIATION

By: 

Name: 

Title:   Duly Authorized Signatory

 

 

 

 

 

Exhibit 1

to

Amendment No. 1 to Credit Agreement

Schedule 1.01A

Revolving Loan Commitment

	
Lender

	
Revolving Loan Commitment

	
Percentage

	
Wells Fargo Bank, National Association

	
$37,500,000

	
100%

	
TOTAL:

	
$37,500,000

	
100%

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