Document:

ex10-27.htm

Exhibit 10.27

RESTRICTED STOCK AGREEMENT

 

AGREEMENT made the 4th day of June, 2013, between NATHAN'S FAMOUS, INC., a Delaware corporation, (hereinafter called the "Company") and ERIC GATOFF (hereinafter called "Grantee").

 

WITNESSETH:

 

WHEREAS, the Company, for the purposes stated therein, has adopted a 2010 Stock Incentive Plan, as amended, a copy of which is annexed hereto as Exhibit "A" (hereinafter called the "Plan"); and

 

WHEREAS, in accordance with said Plan the Compensation Committee of the Board of Directors has determined that Grantee is eligible for and should be granted a Restricted Stock Award pursuant to said Plan as herein below provided, and Grantee desires to have such Restricted Stock Award;

 

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

 

1.           GRANT OF AWARD. The Company hereby grants to Grantee a Restricted Stock Award of 25,000 shares of the authorized and unissued Common Stock of the Company, having a par value of $.01 per share (the "Restricted Shares"), upon and subject to the following terms and conditions:

 

(a)           The rights to Restricted Shares shall vest only at the following times and in the following amounts:

 

(i)           After the expiration of one (1) year from the date of this Agreement, the rights to 5,000 Restricted Shares shall vest in Grantee;

 

(ii)          After the expiration of two (2) years from the date of this Agreement, the rights to an aggregate of 10,000 Restricted Shares shall vest in Grantee;

 

(iii)         After the expiration of three (3) years from the date of this Agreement, the rights to an aggregate of 15,000 Restricted Shares shall vest in Grantee;

 

(iv)         After the expiration of four (4) years from the date of this Agreement, the rights to an aggregate of 20,000 Restricted Shares shall vest in Grantee; and

 

(v)          After the expiration of five (5) years from the date of this Agreement, the rights to an aggregate of 25,000 Restricted Shares shall vest in Grantee.

 

(b)           The Restricted Stock Award shall vest in each instance, only during the continuance of the Grantee's employment or service with the Company except as set forth in Section 1(c), below.

 

  

  

  

 

(c)           Upon Grantee's death or Total Disability or in accordance with the Plan, the rights to all of the Restricted Shares shall vest in Grantee, notwithstanding any lack of expiration of the vesting periods set forth in Section 1(a).

 

(d)           Grantee shall be entitled to any dividend payments or dividend equivalent payments with respect to the Restricted Shares; provided, that the right to receive any such payments shall be deferred and shall vest upon the vesting of the Restricted Shares on which such dividend was paid.

 

(e)           If at any time, the Company or any Subsidiary or Affiliate is required, under applicable laws and regulations, to withhold, or to make any deduction for any taxes, or take any other action in connection with a Restricted Stock Award, the Grantee shall be required to pay to the Company or such Subsidiary or Affiliate, the amount of any taxes required to be withheld, or, in lieu thereof, at the option of the Company, the Company or such Subsidiary or Affiliate may accept Common Stock valued at its Fair Market Value on the date of payment, to cover the amount required to be withheld.

 

2.            NON-TRANSFERABILITY. The Restricted Stock Award granted under this Agreement shall not be transferable otherwise than by will or the laws of descent and distribution or to the extent permitted by the Board or the Committee.

 

3.           BINDING EFFECT OF THE PLAN. Grantee represents that he has read and understands the Plan and agrees to be bound by all of the terms and conditions thereof.

 

4.            CAPITALIZED TERMS. The capitalized terms used herein without definition are used as defined in the Plan.

 

5.           APPLICABLE LAW. This Agreement and the legal relations among the parties hereto shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and performed therein.

 

6.           CONSENT TO JURISDICTION AND WAIVERS . The parties hereto irrevocably consent that any legal action or proceeding against any of them under, arising out of or in any manner relating to, this Agreement or any other document delivered in connection herewith, may be brought in any court of the State of New York located within Nassau County or in the United States District Court for the Eastern District of New York. By the execution and delivery of this Agreement, the parties expressly and irrevocably consent and submit to the personal jurisdiction of any of such courts in any such action or proceeding. The parties further irrevocably consent to the service of any complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to it by hand or by any other manner permitted by law. The parties hereby expressly and irrevocably waive any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non convenient or any similar basis.

 

7.           EMPLOYMENT. Nothing herein shall be deemed to create any employment agreement or guaranty of continued service as an employee, officer or director of the Company or limit in any way the Company's right to terminate Grantee's service as an employee, officer or director of the Company at any time consistent with the certificate of incorporation and by-laws of the Company, if applicable.

 

  

2

  

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

 

	  	
NATHAN'S FAMOUS, INC.

	  	  
	  	
By:

	

/s/Ronald DeVos

	  	  	
Name:

	
Ronald G. DeVos

	  	  	
Title:

	
Vice President – Finance and Chief Financial Officer

	  	  
	  	  
	  	
By:

	

/s/ Eric Gatoff

	  	  	
Name:

	
Eric Gatoff

	  	  	
Title:

	
Grantee

3ex4-2.htm

Exhibit 4.2

NEITHER  THIS  DEBENTURE  NOR  THE  SECURITIES  INTO  WHICH  THIS  DEBENTURE  IS CONVERTIBLE  HAVE  BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS  AMENDED (THE  "ACT")  OR  ANY  STATE  SECURITIES LAWS AND NEITHER THIS DEBENTURE NOR ANY INTEREST THEREIN NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE MAY BE  OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO  AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH  ACT AND SUCH LAWS OR AN EXEMPTION  FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF  COUNSEL  SATISFACTORY  TO  THE  COMPANY,  IS  AVAILABLE.

14.25% SECURED CONVERTIBLE DEBENTURE

 

 

	$  _______	  _________   ,2004

 

                   

FOR VALUE RECEIVED, POWER2SHIP, INC., a Nevada corporation (the "Company"), hereby  promises to pay to__________ (the "Holder") having an address at ______________ on  December  31,  2006,  or  earlier upon  prepayment  of  this  Debenture  as  provided  herein,  the  principal  sum  of ___________ DOLLARS ($______ ), together with simple interest (computed on the  basis  of  a 360-day year of twelve 30-day months) on the unpaid balance at the  rate  of  fourteen and one-quarter percent (14.25%) per annum from the date hereof  until  the  principal  hereof  shall  have  been  paid.

The Company  shall  pay  interest  semi-annually in arrears on June 30 and December  31  of each year that any portion of the principal balance is unpaid. Interest payments  shall  commence  on  June  30,  2004.

All  payments  of  principal  and interest shall be made to the Holder in lawful currency  of the United States of America to the address set forth above or such other  address  as  to  which the Holder shall notify the Company in writing ten (10)  days  prior  to the due date of any payment or upon any prepayment of this Debenture  as  provided  herein.

 

Subject to and in compliance with the provisions hereof, the Holder may, at its option, convert all or any portion of the outstanding principal balance of this Debenture, and all or any portion of the interest accrued hereon to such date, into shares of common stock of the Company (the "Common Stock") at a conversion price (the "Conversion Price") equal to the lesser of $0.80 per share or 90% of the average closing bid price of the Common Stock on the Over-the-Counter Bulletin Board or such other quotation system as the Common Stock may be principally quoted for the ten (10) trading days immediately preceding the date the registration statement registering the Common Stock underlying this Debenture is declared effective by the Securities and Exchange Commission. Notwithstanding the foregoing, if the registration statement is not declared effective by the one-year anniversary of the final closing of the Debentures, then the conversion price shall equal the lesser of $.80 per share or 90% of the average closing bid price of the common stock for the 10 trading days immediately preceding the one-year anniversary of the final closing of the Debentures, but in no event less than $0.25 per share. The Holder hereof shall communicate its intention to convert all or any portion of the principal amount of this Debenture and all or any portion of interest accrued through such conversion date by surrendering this Debenture, with the Form of Notice of Election to Convert attached as EXHIBIT "A" hereto duly completed and signed, to the Company at its address for notice set forth elsewhere herein.

 

  

  

  

 

Exhibit 4.2

 

 

The  Debenture  shall  automatically  convert  into  Common  Stock  upon satisfaction  of  the following conditions: (i) the Company is not in default of any  provision of this Debenture (not taking into account any cure period), (ii) the  Common Stock underlying the Debenture has been registered for sale with the Securities  and  Exchange  Commission  on  the  date  of such conversion and the Company  is  otherwise  in  compliance  with the terms of the Registration Right Agreement  (the "Registration Rights Agreement") of even date herewith and (iii) the  closing  bid  price of the Common Stock for the 20 consecutive trading days prior  to  conversion has been equal to at least 150% of the conversion price as determined  herein.  Upon satisfaction of such  conditions, the Company shall notify the Holder in writing of the conversion and shall promptly deliver to the Holder one or more stock certificates evidencing the Common Stock into which the Debenture  was  converted. Delivery of the stock certificates may be conditioned upon the Holder surrendering this Debenture or indemnifying the Company if such Debenture  is misplaced.

The Company may, at its option, redeem the outstanding portion of this Debenture as follows:

 

	Redemption Date:	 	Redemption Price:
	-------------------------------------------	 	----------------------------------------------
	 	 	 
	Up to 1st Anniversary 	 	110% of outstanding principal balance in cash, plus an additional 10% of the outstanding principal balance in Common Stock, plus accrued but unpaid interest in cash
	 	 	 
	After 1st Anniversary up to 2nd Anniversary	 	110% of outstanding principal balance in cash, plus an additional 5% of the outstanding principal balance in Common Stock, plus accrued but unpaid interest in cash
	 	 	 
	After 2nd Anniversary up to 3rd Anniversary	 	105% of outstanding principal balance in cash, plus an additional 5% of the outstanding principal balance in Common Stock, plus accrued but unpaid interest in cash

 

For  the  purposes  of  the  preceding paragraph, the Common Stock shall be valued  at  the  average  closing  bid  price  of  the  Common  Stock  on  the Over-the-Counter  Bulletin  Board  or  such other quotation system as the Common Stock  may  be  principally  quoted  for  the  ten (10) trading days immediately preceding  the date the conversion becomes effective.  To so redeem, the Company shall provide written notice to the Holder of its intent to redeem, which notice shall specify the amount of the Debenture that the Company intends to redeem and the closing date (which shall be on the fifteenth (15) business day after the date  of  such  notice).  The Holder may, at its option, convert any portion of this  Debenture  after  the  date  of  the  written  notice,  provided that such conversions  are received by the Company at least two (2) business days prior to the  closing  date  specified  in  the  written  notice.

If  the  Holder  elects to convert less than the entire principal amount of this  Debenture and interest accrued to the date of such conversion, the Company shall issue or cause to be issued and delivered to the Holder, at its expense, a new Debenture evidencing the outstanding amount of principal due hereunder after giving  effect  to  the  amount  applied to the conversion, which such Debenture shall, except as to the principal amount thereof, be identical to this Debenture in  all  respects.

If  the  Company, at any time while this Debenture is outstanding shall (a) pay a stock dividend or otherwise make a distribution or distributions on shares of  its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any shares of capital stock of the  Company,  then  the  Conversion  Price shall be multiplied by a fraction of which  the  numerator  shall  be the number of shares of Common Stock (excluding treasury  shares,  if  any)  outstanding  before  such  event  and  of which the denominator shall be the number of shares of Common Stock outstanding after such event.  Any adjustment  made  pursuant  to  this Section shall become effective immediately after the record date for the determination of stockholders entitled to  receive such dividend or distribution and shall become effective immediately after  the  effective  date  in  the  case  of  a  subdivision,  combination  or re-classification.

  

  

  

 

Exhibit 4.2

 

 

If  the  Company  shall (i) fail to make a payment of principal or interest when  due;  or  (ii)  make  an  assignment for the benefit of creditors, files a petition  in  bankruptcy, be adjudicated insolvent or bankrupt, suffers an order for  relief  under any federal bankruptcy law, petition or apply to any tribunal for  the  appointment of a custodian, receiver or any trustee for the Company or any  substantial  part of its assets, or (iii) commence any proceeding under any bankruptcy,  reorganization,  arrangement,  readjustment of debt, dissolution or liquidation  law  or  statue  of  any  jurisdiction, whether now or hereafter in effect;  or  (iv)  have been filed any such petition or application, or any such proceeding  shall  have  been  commenced  against  the  Company,  which  remains undismissed,  unstayed  or unbonded for a period of thirty (30) days or more; or (v) by any act or omission shall indicate consent to, approve or acquiescence in any  such petition, application or proceeding or the appointment of a custodian, receiver  or  any  trustee for all or any substantial part of its properties, or (vi)  allow  such  custodianship,  receivership,  or  trusteeship  to  continue undischarged,  unstayed or unbonded for a period of thirty (30) days or more, or (vii)  violate  any  term or provision of this Debenture (except as set forth in subsection  (i) of this paragraph), the Security Agreements entered into between the  Company  and the Holders  (the "Security Agreements") of even date herewith or  the  Registration  Rights Agreement and same remains uncured for a period of ten  (10) business days after notice thereof by the Holder (unless a longer cure period  is  set  forth in any of the aforementioned agreements), then and in any such  event,  the  outstanding principal amount of this Debenture, together with all accrued and unpaid interest thereon, shall be and become immediately due and payable.  For purposes of (i), above, the payment of interest subsequent to its due  date  by  withdrawal from the account established under one of the Security Agreements  for the purpose of securing the payment of interest, shall be deemed to  have  been  paid  when  due.

 

This  Debenture  is  secured  by  the  Security  Agreements.

All  notices  and other communications provided for herein shall be sent by certified  mail,  return  receipt  requested,  or  by  personal delivery or by a nationally  recognized  overnight courier to the Holder or the Company, at their respective  addresses  as set forth herein, or to such other address as to which either  party  may  advise  the  other  by  notice given in accordance with this provision. All such notices shall be deemed given upon the earlier of receipt or within  five  (5)  business  days  of  mailing  if  receipt  is  refused.

Notwithstanding  any other provision of this Debenture, interest under this Debenture  shall not exceed the maximum rate permitted by law; and if any amount is  paid  under  this Debenture as interest in excess of such maximum rate, then the amount so paid will not constitute interest but will constitute a prepayment on  account  of  the  principal  amount  of  this Debenture.  If at any time the interest rate under this Debenture would, but for the provision of the preceding sentence,  exceed  the  maximum  rate  permitted  by  law,  then the outstanding principal  balance  of  this  Debenture  shall,  on demand by the Holder of this Debenture,  become  and  be  due  and  payable.

All payments  under this Debenture shall be made without deduction for any taxes  of  any  nature  now  or  hereafter  imposed.

The provisions of  this  Debenture  shall  in  all  respects be construed according  to, and the rights and liabilities of the parties hereto and shall in all  respects  be governed by, the laws of the State of Florida.  This Debenture shall  be  deemed  a  contract made under the laws of the State of Florida to be fully  performed  therein, and the validity of this Debenture and all rights and liabilities  hereunder  shall be determined under the laws of said State without reference  to  the  conflicts  of  laws provisions thereof.  For purposes of any proceeding involving this Debenture, the Company and the Holder hereby submit to the  exclusive  jurisdiction  of  the  courts of the State of Florida and of the United  States  having  jurisdiction in the County of Broward, State of Florida, and  agree  not  to  raise  and waive any objection to or defense based upon the venue  of  any  such  court  or  based  upon  forum  non  conveniens.

  

  

  

 

Exhibit 4.2

 

 

In  the  event  this  Debenture  is  placed in the hands of an attorney for collection or for enforcement or protection of the security, or if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby or the enforcement  or  protection of the security, the Company agrees to pay to Holder all  reasonable  attorneys'  fees so incurred, all court and other costs and the reasonable  costs  of any other collection efforts, including all costs incurred in  collecting  any judgment and in any appellate or bankruptcy proceeding.  The Company  agrees  to  pay  any documentary stamp taxes, intangible taxes or other taxes  which may now or hereafter apply to this Debenture or any payment made in respect  of  this  Debenture.

No delay or omission on the part of the Holder in the exercise of any right hereunder shall  operate  as a waiver of such right or of any other right under this  Debenture.  A  waiver by the Holder of any right or remedy conferred to it hereunder  on any one occasion shall not be construed as a bar to, or waiver of, any  such  right  and/or  remedy as to any future occasion.  The Company and all persons  now or hereafter becoming obligated or liable for the payment hereof do jointly  and  severally  waive demand, notice of non-payment, protest, notice of dishonor  and  presentment.  No failure to accelerate the indebtedness evidenced hereby  by  reason of default hereunder, acceptance of a past-due installment or other indulgences granted from time to time, shall be construed as a novation of this  Debenture  or as a waiver of such right of acceleration or of the right of the  Holder  thereafter  to insist upon strict compliance with the terms of this Debenture  or to prevent the exercise of such right of acceleration or any other right  granted  hereunder  or  by  applicable  law.

This  Debenture may be amended only by a written instrument executed by the Company  and  the  Holder.

THE COMPANY  HEREBY  KNOWINGLY,  VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT WHICH  IT  MAY  HAVE TO A TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION  BASED  HEREON, OR ARISING OUT OF, UNDER OR IN ANY WAY CONNECTED WITH THE DEALINGS  BETWEEN  THE  HOLDER AND THE COMPANY, THIS DEBENTURE, OR ANY DOCUMENTS EXECUTED  IN  CONNECTION  HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS  (WHETHER  ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT,  EQUITY  OR  OTHERWISE.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE HOLDERS EXTENDING THE  LOAN  EVIDENCED  BY  THIS  DEBENTURE.

 

 

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SIGNATURE PAGE FOLLOWS

  

  

  

 

Exhibit 4.2

 

IN  WITNESS  WHEREOF,  POWER2SHIP,  INC.  has  caused  this  14.25% Secured Convertible  Debenture  to  be  executed  in  its  corporate  name  by its Chief Executive  Officer,  thereunto  duly  authorized.

Dated:   ____________,  2004

                              THE COMPANY:  ________________

                                   POWER2SHIP, INC.

                       By:   /s/ Richard Hersch

                                      Richard  Hersh

  

  

  

 

Exhibit 4.2

EXHIBIT "A"

NOTICE OF CONVERSION

(To be Executed by the Holder in order to Convert this Debenture)

The undersigned hereby elects to convert the attached 14.25% Secured Convertible Debenture into shares of common stock (the "Common Stock"), of Power2Ship, Inc. (the "Company") according to the conditions hereof, as of the date written below. If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

Conversion calculations:

 

	 	_______________________________________
	 	 Date to Effect Conversion
	 	 
	 	_______________________________________
	 	Principal Amount of Debenture to be Converted
	 	 
	 	
Payment of Interest  in  Kind       [ ] Yes

                                                         [ ] No

	 	 
	 	If  yes,  $_______  of  Interest  Accrued  on Account of Conversion at Issue
	 	 
	 	---------------------------------------------
	 	Number of shares of Common Stock to be Issued
	 	 
	 	---------------------------------------------
	 	Applicable  Conversion  Price
	 	 
	 	---------------------------------------------
	 	Signature
	 	 
	 	---------------------------------------------
	 	Name
	 	 
	 	---------------------------------------------
	 	Address

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