Document:

phx-ex109_600.htm

EXHIBIT 10.9

TRANSITION AGREEMENT

 

This Transition Agreement (the “Agreement”), between Panhandle Oil and Gas, Inc. (“Panhandle”) and Paul F. Blanchard (“Blanchard”) (collectively, the “Parties”) is effective as of the 26th day of August 2019 (the “Effective Date”).

WHEREAS, Panhandle has decided to end the employer/employee relationship with Blanchard on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

	
1.
	
Termination of Employment Relationship. Blanchard’s employment with Panhandle will cease on September 30, 2019 (the “Termination Date”). On the Effective Date, Blanchard hereby resigns as a Director of the Panhandle Board of Directors and as an Officer of Panhandle. Blanchard shall remain an active employee of Panhandle with pay and benefits until the Termination Date. During the period between the Effective Date and the Termination Date, (the “Transition Period”) Blanchard will work as an advisor at the direction of the Interim CEO to cooperate and assist in the transition of job duties and responsibilities. The Parties have agreed to certain conditions as set forth in this Agreement as consideration for Blanchard signing the General Release attached as Exhibit A on or before September 20, 2019 and, the General Release attached as Exhibit B within 21 days of the Termination Date.
	
 

 

	
2.
	
Transition/Severance Payments. Panhandle shall make certain payments outlined below (the “Transition Payment” or “Severance Payment”) as consideration for Blanchard signing each General Release and complying with the terms of this Agreement. If Blanchard signs this Agreement, Panhandle will continue payment of Blanchard’s current Base Salary from the Effective Date through the Termination Date. Blanchard states that as of the Effective Date, he has been paid all wages due and owing to him.
	
 

 

The Severance Payment shall be: A lump sum payment equal to (i) one year of Employee’s annualized salary in the amount of Three Hundred Twenty-Six Thousand Five Hundred Dollars ($326,500); and, (ii) an annual bonus payment in the amount of Three Hundred Twenty-Six Thousand Five Hundred Dollars ($326,500); and, (iii) an amount equal to the cost of extending medical coverage for Blanchard and his spouse and/or eligible dependents, (as applicable and to the extent such participation is allowed by the terms of the medical plan maintained by Panhandle) under the Panhandle medical plan as available under the Consolidated Omnibus Reconciliation Act of 1986 (“COBRA”) for a period of 12 months following the Termination Date. Additionally, as part of the Severance Payment, Panhandle will accelerate vesting on 100% of the 3950 shares purchased pursuant to the Stock Purchase and Restriction Agreement, 2016 Non-Performance share grant. Blanchard will also be eligible for the 2019 bonus (including discretionary component) to the extent the relevant metrics are met as determined by the Board of Directors.

 

The Severance Payment will be paid in one lump sum in accordance with Panhandle normal payroll practices in effect on the Termination Date, provided the payment shall not occur until Blanchard signs and does not revoke the General Release attached as Exhibit B within 21 days after the Termination Date. The Severance Payment will be subject to standard withholding for taxes and other deductions in accordance with usual payroll policy.

 

 

 

Except as otherwise provided in the Agreement, Blanchard acknowledges he is not vested in any shares purchased under any Stock Purchase and Restriction Agreement: Performance Shares; and, Panhandle will exercise its repurchase option as to those shares. Blanchard further acknowledges that he is not vested in any Stock Purchase and Restriction Agreement: Non Performance Shares purchased under the 2017 and 2018 grants and Panhandle will exercise the option to repurchase all shares. If Blanchard does not sign or if he revokes his signature on the General Release attached as Exhibit B, Panhandle will also repurchase all shares purchased under the 2016 grant.

 

	
3.
	
Outplacement Assistance.  If Blanchard signs and does not revoke his signature on the General Release attached as Exhibit A, as a Transition Payment, Panhandle will pay an additional sum for Blanchard to receive outplacement services from a provider selected by Panhandle. Panhandle will pay the outplacement services company directly, and the total cost of services shall not exceed Thirty Five Thousand Dollars ($35,000).
	
 

 

	
4.
	
Employee Stock Ownership Plan. The Parties acknowledge the July 2019 board approval of an Employee Stock Ownership Plan (“ESOP”) company contribution (“ESOP Contribution”), with any amount above the IRS contribution limits being paid in cash to employees (“ESOP Contribution Payment”). The Parties agree that Blanchard will be eligible for and will be paid the ESOP Contribution and ESOP Contribution Payment pursuant to the board’s directive.
	
 

 

	
5.
	
Vacation Payout. Regardless of whether Employee signs this Agreement, Employee will be paid for his accrued but unused vacation, subject to all applicable withholdings and deductions, on Panhandle’s next regular pay date following the Termination Date.
	
 

 

	
6.
	
Acknowledgements. Blanchard acknowledges that he does not have a pre- existing duty or obligation to enter into this Agreement. Blanchard acknowledges that if he does not (i) sign and accept the terms of this Agreement and (ii) execute a General Release now and again following his termination of employment, or if he violates the provisions of this Agreement, Panhandle has no obligation to make the Transition Payment or Severance Payment, in which case the release of claims provided and any promises made by Blanchard within this Agreement will be null and void. Panhandle acknowledges that if Blanchard signs and complies with the terms of this Agreement and each General Release that Panhandle is bound to make the Transition Payment or Severance Payment.
	
 

 

Blanchard’s and his spouse’s coverage under Panhandle health plans will end on the last day of the month following the Termination Date, September 30, 2019, unless he elects COBRA continuation coverage. By signing this Agreement, Blanchard acknowledges that he is solely responsible for electing COBRA continuation coverage and Panhandle acknowledges that it is responsible to provide Blanchard with all required notices regarding COBRA continuation coverage.

 

	
7.
	
Counsel. Blanchard acknowledges that he has been represented by legal counsel, and his attorney reviewed each of these documents before he signed.
	
 

 

2

 

	
8.
	
Acceptance. Blanchard acknowledges he has been provided twenty-one (21) days from the Effective Date to consider signing the General Release attached as Exhibit A, and will have twenty-one (21) days after the Termination Date to sign the General Release attached as Exhibit B. Blanchard may waive all or any part of either twenty-one (21) day period by signing and returning a General Release prior to the expiration of the applicable twenty-one (21) day period.
	
 

 

	
9.
	
Revocation. If Blanchard decides to sign either General Release A or B, Blanchard may revoke that decision with regard to claims under the Age Discrimination in Employment Act at any time within seven (7) calendar days of the execution of each General Release by written notice to the Lead Independent Director of Panhandle. Blanchard understands that he cannot revoke his signature on a General Release at any time after that seven
	
 

(7) day period. Blanchard also understands that the seven (7) day revocation period cannot be waived.

 

	
10.
	
Actions. By signing this Agreement, Blanchard represents that he has not commenced and will not commence any action or complaint with any court, arbitrator or other body with jurisdiction over such disputes regarding his employment. Furthermore, if he has filed any such action, he promises to dismiss the same with prejudice. Nothing in this Agreement is intended to prohibit Blanchard from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General, or making other disclosures, including providing documents and other information, that are protected under the whistleblower provisions of federal law or regulation.
	
 

 

	
11.
	
Non-Solicitation.  Blanchard agrees that for a period of one (1) year following   the Effective Date, Blanchard shall not directly, or through any other person or entity, solicit the purchase or sale of mineral interests, including but not limited to: mineral rights, leasehold  rights, working interests, override interests or royalty interests (“Mineral Interests”) from any Customer of Panhandle. Customer is defined as any entity or individual from which Panhandle has solicited, purchased, evaluated for purchase or is in the process of purchasing Mineral Interests. Blanchard, thru written request to the Lead Independent Director may seek an exception to this limitation. Blanchard further agrees that for a period of one (1) year following the Effective Date Blanchard shall not solicit, directly or indirectly, actively or inactively, the employees or independent contractors of Panhandle to become employees or independent contractors of another person or business.
	
 

 

	
12.
	
Confidentiality of Information. As a further condition of this Agreement, Blanchard promises not to make any independent use of, or disclose to any other person or organization, or destroy any of the non-public, confidential, proprietary information or trade secrets of Panhandle except as expressly permitted in an email or other written communication from the Independent Lead Director of the Panhandle Board of Directors.  This shall apply to any information which is of a special and unique value and includes, without limitation, both written and unwritten information relating to operations, business planning and strategies.
	
 

 

	
13.
	
Commitment to Preserve Good Name. Furthermore, Blanchard will not disparage but will instead uphold and preserve the name and reputation of Panhandle and the names and reputations of the Board Members, trustees, officers, employees, and representatives of Panhandle 
	
 

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to any individuals, entities or the press or media. Panhandle and its Board Members, and officers of Panhandle will not disparage but will instead uphold and preserve the name and reputation of Blanchard to any individuals, entities or the press or media.
	
 

 

	
14.
	
Arbitration. The Parties agree that any dispute, claim or controversy between the Parties which may arise out of or relate to Blanchard’s employment relationship or this Agreement shall be settled by arbitration. Any arbitration shall be in accordance with the Rules of the American Arbitration Association and undertaken pursuant to the Federal Arbitration Act. Panhandle will pay all required filing fees, fees of the arbitrator and any other arbitration fees. Arbitration will be held in Oklahoma City, Oklahoma unless the Parties mutually agree on another location. The decision of the arbitrator will be enforceable in any court of competent jurisdiction. The Parties agree that punitive, liquidated or indirect damages shall not be awarded by the arbitrator unless such damages would have been awarded by a court of competent jurisdiction. Nothing in this agreement to arbitrate shall preclude Panhandle from obtaining injunctive relief from a court of competent jurisdiction prohibiting any on-going breaches of Blanchard of this Agreement.
	
 

 

	
15.
	
Entire Agreement. This Agreement and each General Release constitute the entire agreement between Panhandle and Blanchard with regard to the parties’ employer/employee relationship. Panhandle and Blanchard agree that there are no oral representations or understandings between them that are not contained within the written terms of these documents. Furthermore, the parties agree that this Agreement and each General Release may not be modified orally. To change the terms of this Agreement, both Blanchard and Panhandle must do so in writing. Finally, if any portion of this Agreement is held by a court to be invalid, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be impaired, or invalidated.
	
 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement to be as of the date first above written.

 

Dated: September 20, 2019/s/ Paul F. Blanchard

Paul F. Blanchard

 

 

Dated: September 30, 2019Panhandle Oil and Gas, Inc.

 

By /s/ Mark T. Behrman

 

Its Lead Independent Director

 

 

 

 

 

 

 

 

4

 

 

Exhibit A GENERAL RELEASE

In consideration of  the agreement by PANHANDLE  to make certain payments to me pursuant to the terms reflected in the Transition Agreement dated September 20, 2019 (the “Transition Agreement”), I hereby release and discharge PANHANDLE and its directors, trustees, employees, officers and benefit plans (hereafter collectively referred to as “PANHANDLE”) from all claims, liabilities, demands, and causes of action, known or unknown, fixed or contingent, which I may have or claim to have against PANHANDLE either as a result of my employment with PANHANDLE and/or the severance of that relationship, and hereby waive any and all rights I may have with respect to and promise not to file a lawsuit to assert any such claims whether such claims are pursuant to an express or implied employment agreement or otherwise.

 

I understand that this release means that I have forfeited my right to sue PANHANDLE for any reason related to my past employment. This release will prevent me from asserting that I was discriminated against because of race, color, gender, age, religion, national origin, military status, workers’ compensation claims, FMLA claims, sexual orientation, gender identity, genetic data, disability or any other status protected by law. This release will also prevent me from alleging that I was retaliated against for any reason, or that I was denied any money, benefits, leave, or any other term of employment.

 

This General Release includes, but is not limited to, claims arising under express or implied contracts of employment, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Pregnancy Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974 and the Veterans Reemployment Rights Act (all as amended from time to time). This General Release also includes, but is not limited to, any rights I may have under the Older Workers Benefit Protection Act of 1990, the Worker Adjustment and Retraining Act of 1988, the Fair Labor Standards Act, the Family and Medical Leave Act, the Occupational Health and Safety Act, and any other federal, state and/or municipal statutes, orders or regulations pertaining to labor, employment and/or employee benefits.

 

This General Release also serves to waive all claims or rights available to me pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994 and the Veterans' Reemployment Rights Act, including, but not limited to, rights to reinstatement or reemployment.  This General Release also applies to any claims or rights I may have growing  out of the employer/employee relationship between me and PANHANDLE or any legal or equitable restrictions on PANHANDLE right not to continue an employment relationship with its employees, including any express or implied employment contracts, “public policy” claims, and to any claims I may have against PANHANDLE for fraudulent inducement or misrepresentation, defamation, wrongful termination or other retaliation claims in connection with workers’ compensation or alleged “whistleblower” status or on any other basis whatsoever.

 

 

A-1

 

It is specifically agreed, however, that this General Release does not have any effect on any rights or claims I may have against PANHANDLE (i) which arise after the date I execute this General Release or (ii) on any vested rights I may have under any of PANHANDLE benefit plans or arrangements as of or after my last day of employment with PANHANDLE or (iii) on any of PANHANDLE obligations under the Transition Agreement. Nothing contained herein shall interfere with or waive my right to enforce or challenge the Transition Agreement in a court of competent jurisdiction or in arbitration, as further provided by the Transition Agreement. Furthermore, it is specifically agreed that nothing in the Transition Agreement or this General Release is intended to affect the rights and responsibilities of the Equal Employment Opportunity Commission or other governmental agency to enforce any statutes prohibiting employment discrimination or to interfere with my right to file a charge or participate in an investigation or proceeding conducted by any such agency. However, I do agree not to accept any relief or recovery from any charge or complaint filed against PANHANDLE with any such agency or court with regard to claims arising from my employment.

 

I have carefully reviewed and fully understand all the provisions of the Transition Agreement and this General Release. I have not relied on any representation or statement, oral or written, by PANHANDLE or any of its representatives, which is not set forth in those documents.

 

The Transition Agreement and this General Release set forth the entire agreement between me and PANHANDLE with respect to this subject. I understand that PANHANDLE’s obligation to enter into the Transition Agreement and perform under the Transition Agreement is contingent not only on my execution of this General Release, but also on my continued compliance with my other obligations under the Transition Agreement.

 

I also acknowledge that PANHANDLE advised me to seek independent legal advice as to these matters, if I chose to do so. I hereby represent and state that I have taken such actions and obtained such information and independent legal advice that I believed were necessary for me to fully understand the effects and consequences of the Transition Agreement and this General Release prior to signing those documents.

 

I acknowledge that PANHANDLE gave me twenty-one (21) days to consider whether I wish to accept or reject the terms of the Transition Agreement in exchange for this General Release. I understand that if I sign and date this agreement prior to the expiration of the twenty-one (21) day period I hereby waive my rights to such twenty-one-day period and understand that my seven (7) day revocation period will begin on the date that I sign and return this General Release to PANHANDLE.

 

Dated this 20th day of September 2019.

 

 

	
 
	
By: /s/ Paul F. Blanchard
	

	
 

	
 
	

	
Paul F. Blanchard
	
 

 

A-2

 

Exhibit B GENERAL RELEASE

In consideration of the agreement by PANHANDLE to make certain payments to me pursuant to the terms reflected in the Transition Agreement dated September 20, 2019 (the “Transition Agreement”), I hereby release and discharge PANHANDLE and its directors, trustees, employees officers and benefit plans (hereafter collectively referred to as “PANHANDLE”)  from all claims, liabilities, demands, and causes of action, known or unknown, fixed or contingent, which I may have or claim to have against PANHANDLE either as a result of my employment with PANHANDLE and/or the severance of that relationship, and hereby waive any and all rights I may have with respect to and promise not to file a lawsuit to assert any such claims whether such claims are pursuant to an express or implied employment agreement or otherwise.

 

I understand that this release means that I have forfeited my right to sue PANHANDLE for any reason related to my past employment. This release will prevent me from asserting that I was discriminated against because of race, color, gender, age, religion, national origin, military status, workers’ compensation claims, FMLA claims, sexual orientation, gender identity, genetic data, disability or any other status protected by law. This release will also prevent me from alleging that I was retaliated against for any reason, or that I was denied any money, benefits, leave, or any other term of employment.

 

This General Release includes, but is not limited to, claims arising under express or implied contracts of employment, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Pregnancy Discrimination Act of 1978, the Equal Pay Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Americans With Disabilities Act, the Employee Retirement Income Security Act of 1974 and the Veterans Reemployment Rights Act (all as amended from time to time). This General Release also includes, but is not limited to, any rights I may have under the Older Workers Benefit Protection Act of 1990, the Worker Adjustment and Retraining Act of 1988, the Fair Labor Standards Act, the Family and Medical Leave Act, the Occupational Health and Safety Act, and any other federal, state and/or municipal statutes, orders or regulations pertaining to labor, employment and/or employee benefits.

 

This General Release also serves to waive all claims or rights available to me pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994 and the Veterans' Reemployment Rights Act, including, but not limited to, rights to reinstatement or reemployment.  This General Release also applies to any claims or rights I may have growing  out of the employer/employee relationship between me and PANHANDLE or any legal or equitable restrictions on PANHANDLE rights not to continue an employment relationship with its employees, including any express or implied employment contracts, “public policy” claims, and to any claims I may have against PANHANDLE for fraudulent inducement or misrepresentation, defamation, wrongful termination or other retaliation claims in connection with workers’ compensation or alleged “whistleblower” status or on any other basis whatsoever.

 

B-1

 

It is specifically agreed, however, that this General Release does not have any effect on any rights or claims I may have against PANHANDLE (i) which arise after the date I execute this General Release or (ii) on any vested rights I may have under any of PANHANDLE benefit plans or arrangements as of or after my last day of employment with PANHANDLE or (iii) on any of PANHANDLE obligations under the Transition Agreement. Nothing contained herein shall interfere with or waive my right to enforce or challenge the Transition Agreement in a court of competent jurisdiction or in arbitration, as further provided by the Transition Agreement. Furthermore, it is specifically agreed that nothing in the Transition Agreement or this General Release is intended to affect the rights and responsibilities of the Equal Employment Opportunity Commission or other governmental agency to enforce any statutes prohibiting employment discrimination or to interfere with my right to file a charge or participate in an investigation or proceeding conducted by any such agency. However, I do agree not to accept any relief or recovery from any charge or complaint filed against PANHANDLE with any such agency or court with regard to claims arising from my employment.

 

I have carefully reviewed and fully understand all the provisions of the Transition Agreement and this General Release. I have not relied on any representation or statement, oral or written, by PANHANDLE or any of its representatives, which is not set forth in those documents.

 

The Transition Agreement and this General Release set forth the entire agreement between me and PANHANDLE with respect to this subject. I understand that PANHANDLE’s obligation to enter into the Transition Agreement and perform under the Transition Agreement is contingent not only on my execution of this General Release, but also on my continued compliance with my other obligations under the Transition Agreement.

 

I also acknowledge that PANHANDLE advised me to seek independent legal advice as to these matters, if I chose to do so. I hereby represent and state that I have taken such action and obtained information and independent legal advice that I believed was necessary for me to fully understand the effects and consequences of the Transition Agreement and this General Release prior to signing those documents.

 

I acknowledge that PANHANDLE gave me twenty-one (21) days to consider whether I wish to accept or reject the terms of the Transition Agreement in exchange for this General Release. I understand that if I sign and date this agreement prior to the expiration of the twenty-one (21) day period I hereby waive my rights to such twenty-one-day period and understand that my seven (7) day revocation period will begin on the date that I sign and return this General Release to PANHANDLE.

 

Dated this 1st day of October 2019.

 

 

	
 
	
By: /s/ Paul F. Blanchard
	

	
 

	
 
	

	
Paul F. Blanchard
	
 

 

 

 

 

 

B-2Exhibit 10.1

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT
TO CREDIT AGREEMENT (this “Amendment”), dated December 9, 2019, to be effective as of September 24, 2019 (the
“Effective Date”), is by and among GOOD TIMES RESTAURANTS INC., a Nevada corporation (the “Borrower”),
the Guarantors, the Lenders and CADENCE BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative
Agent”).

 

 

W I T N E S S E T H

 

WHEREAS, the
Borrower, the Guarantors, the Lenders and the Administrative Agent are parties to that certain Credit Agreement, dated September
8, 2016 (as amended by that certain First Amendment to Credit Agreement, dated September 11, 2017, that certain Second Amendment
to Credit Agreement, dated as of October 31, 2018, that certain Third Amendment to Credit Agreement, dated as of February 21, 2019,
and as further amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”;
capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement);

 

WHEREAS, the
Loan Parties have requested that the Lenders make certain amendments to the Credit Agreement to be effective as of the Effective
Date as set forth herein; and

 

WHEREAS, the
Lenders have agreed to amend the Credit Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I

AMENDMENTS TO CREDIT AGREEMENT

 

1.1         Amendments
to “Consolidated EBITDA”.  The definition of “Consolidated EBITDA” in Section 1.01 of the Credit
Agreement is hereby amended by (A) renumbering the second clause (b)(vi) therein as (b)(vii) and (B) inserting the following new
clauses immediately after clause (b)(vii) therein:

 

(viii) charges
and expenses (including legal expenses related thereto) relating to the severance of the chief executive officer of the Borrower
and the signing and retention of the successor thereof in an aggregate amount not to exceed (A) $706,000 for the fiscal quarter
ending on September 24, 2019 and (B) $39,000 for the fiscal quarter ending on December 24, 2019, (ix) losses, charges and expenses
(including legal expenses related thereto) relating to the contemplated sale of the Equity Interests of Good Times Drive Thru Inc.
in an aggregate amount not to exceed (A) $39,570 for the fiscal quarter ending on March 26, 2019, (B) $136,899 for the fiscal quarter
ending on June 25, 2019 and (C) $67,021 for the fiscal quarter ending on September 24, 2019, and (x) fees and out-of-pocket expenses
paid in cash in connection with the Fourth Amendment in an aggregate amount not to exceed $45,000,

 

    	 	 	 

    	 

    

 

1.2         Amendment
to Section 1.01. The following definitions are hereby added to Section 1.01 of the Credit Agreement in appropriate alphabetical
order:

 

“Fourth
Amendment” means that certain Fourth Amendment to Credit Agreement dated as of the Fourth Amendment Effective Date among
the Borrower, the Guarantors, the Lenders and the Administrative Agent.

 

“Fourth
Amendment Effective Date” means September 24, 2019.

 

1.3         Amendment
to Section 2.05. Section 2.05 of the Credit Agreement is hereby amended by inserting the following new clause (d) at the
end thereof:

 

(d)       The
Commitments shall be automatically and permanently reduced by the amounts of the repayments of the outstanding principal amount
of the Loans required pursuant to Section 2.06 as of the applicable date that such repayment is required to be made.

 

1.4         Amendment
to Section 2.06. Section 2.06 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

2.06       Repayment
of Loans. The Borrower shall repay to the Lenders the aggregate outstanding principal amount of the Loans in consecutive quarterly
installments equal to $250,000 on the last Business Day of each March, June, September and December, commencing on March 31, 2020.
In connection with each of the repayments required to be made herein, the Commitments shall be automatically and permanently reduced
by the corresponding amount of such repayment on the applicable date of that such repayment is required to be made. In addition
to the foregoing, the Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of all Loans outstanding
on such date.

 

1.5         Amendment
to Section 7.06. Section 7.06 of the Credit Agreement is hereby amended by (i) deleting “and” at the end of
clause (a) therein; (ii) replacing “.” at the end of clause (b) therein with “; and”; and (iii) inserting
the following new clause (c) at the end thereof:

 

(c)       the
Borrower may make Restricted Payments in the form of repurchases or redemptions of Equity Interests of the Borrower from the former
directors and officers of the Borrower in an aggregate amount not to exceed $100,000; provided, that that (i) no Default
or Event of Default exists or shall result therefrom and (ii) the Loan Parties are in compliance with the Minimum Liquidity covenant
set forth in Section 7.11(d), determined on a pro forma basis after giving effect thereto.

 

 

ARTICLE II

CONDITIONS

 

2.1         Closing
Conditions. This Amendment shall be deemed effective as of the Effective Date upon receipt by the Administrative Agent
of:

 

(a)       a
copy of this Amendment duly executed by each of the Borrower, the Guarantors, the Administrative Agent and the Lenders; and

 

    	 	2	 

    	 

    

 

(b)       any
fees and expenses owing to the Administrative Agent (including all reasonable fees, charges and disbursements of counsel to the
Administrative Agent) in connection with this Amendment.

 

 

ARTICLE III

MISCELLANEOUS

 

3.1         Amended
Terms. On and after the Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter
mean the Credit Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement
is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

 

3.2         Representations
and Warranties of the Loan Parties. Each of the Loan Parties represents and warrants as follows:

 

(a)       Each
Loan Party has all requisite power and authority and has taken all necessary corporate and other action to authorize the execution,
delivery and performance of this Amendment in accordance with its terms.

 

(b)       The
execution, delivery and performance by each Loan Party of this Amendment been duly authorized by all necessary corporate or other
organizational action and constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party
in accordance with its terms.

 

(c)       No
approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the
Loan Parties of this Amendment.

 

(d)       The
representations and warranties set forth in the Loan Documents are true and correct in all material respects as of the date hereof
(except for those that are qualified by materiality, which are true and correct in all respects).

 

(e)       No
event has occurred and is continuing which constitutes a Default or an Event of Default (assuming the effectiveness of this Amendment
on the Effective Date).

 

(f)       The
Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Administrative
Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Collateral
Documents and prior to all Liens other than Permitted Liens.

 

(g)       The
Obligations of the Loan Parties are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

 

3.3         Reaffirmation
of Obligations. Each Loan Party hereby ratifies the Credit Agreement and each other Loan Document and acknowledges and
reaffirms (a) that it is bound by all terms of the Credit Agreement and each other Loan Document and (b) that it is responsible
for the observance and full performance of its respective obligations under the Loan Documents.

 

    	 	3	 

    	 

    

 

3.4         Loan
Document. This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

 

3.5         Expenses.
The Loan Parties agree to pay all reasonable costs and expenses of Administrative Agent in connection with the preparation, execution
and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Administrative Agent’s
legal counsel.

 

3.6         Entirety.
This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements
and understandings, oral or written, if any, relating to the subject matter hereof.

 

3.7         Counterparts;
Telecopy. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an
executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging means (e.g., “pdf”
or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.

 

3.8         GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

3.9         Successors
and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted
successors and assigns.

 

3.10       Consent
to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, services of process and waiver of jury trial
provisions set forth in Sections 11.14 and 11.15 of the Credit Agreement are hereby incorporated by reference, mutatis
mutandis.

 

[SIGNATURE
PAGES FOLLOW]

 

    	 	4	 

    	 

    

 

IN WITNESS WHEREOF
the parties hereto have caused this Amendment to be duly executed on the date first above written.

 

	BORROWER:	GOOD TIMES RESTAURANTS INC.,	 
	 	a Nevada corporation	 
	 	 	 
	 	 	 
	 	By:	/s/ Ryan M. Zink	 
	 	Name:  Ryan M. Zink	 
	 	Title:  Treasurer and Chief Financial Officer	 

 

 

 

	GUARANTORS:	GOOD TIMES DRIVE THRU INC.,	 
	 	a Colorado corporation	 
	 	 	 
	 	 	 
	 	By:	/s/ Ryan M. Zink	 
	 	Name:  Ryan M. Zink	 
	 	Title:  Treasurer and Chief Financial Officer	 
	 	 	 	 

 

	 	BD OF COLORADO LLC,	 
	 	a Colorado limited liability company	 
	 	 	 
	 	By: GOOD TIMES RESTAURANTS INC.,	 
	 	a Nevada corporation, its manager	 

 

 

 

	 	By:	/s/ Ryan M. Zink	 
	 	Name:  Ryan M. Zink	 
	 	Title:  Treasurer and Chief Financial Officer	 

  

    	 		GOOD TIMES RESTAURANTS INC.
 FOURTH AMENDMENT

    	 	

    

  

	 	BAD DADDY’S FRANCHISE DEVELOPMENT, LLC,
	 	a North Carolina limited liability company
	 	 
	 	 	By: BAD DADDY’S INTERNATIONAL, LLC,
	 	 	a North Carolina limited liability company, its member
	 	 	 	 
	 	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	 	a Nevada corporation, its sole member

 

 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

 

 

	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	a Nevada corporation, its member
	 	 	 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

 

 

	 	BAD DADDY’S INTERNATIONAL, LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	a Nevada corporation, its sole member

 

 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

 

    	 		GOOD TIMES RESTAURANTS INC.
 FOURTH AMENDMENT

    	 	

    

 

	 	BAD DADDY’S BURGER BAR, LLC,
	 	a North Carolina limited liability company
	 	 
	 	 	By: BAD DADDY’S INTERNATIONAL, LLC,
	 	 	a North Carolina limited liability company, its sole member
	 	 	 	 
	 	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	 	a Nevada corporation, its sole member

 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

 

 

	 	BAD DADDY’S BURGER BAR OF BALLANTYNE, LLC,
	 	a North Carolina limited liability company
	 	 
	 	 	By: BAD DADDY’S INTERNATIONAL, LLC,
	 	 	a North Carolina limited liability company, its sole member
	 	 	 	 
	 	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	 	a Nevada corporation, its sole member

 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

 

 

	 	BAD DADDY’S BURGER BAR OF BIRKDALE, LLC,
	 	a North Carolina limited liability company
	 	 
	 	 	By: BAD DADDY’S INTERNATIONAL, LLC,
	 	 	a North Carolina limited liability company, its sole member
	 	 	 	 
	 	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	 	a Nevada corporation, its sole member

 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

  

    	 		GOOD TIMES RESTAURANTS INC.
 FOURTH AMENDMENT

    	 	

    

 

	 	BAD DADDY’S BURGER BAR OF MOORESVILLE, LLC,
	 	a North Carolina limited liability company
	 	 
	 	 	By: BAD DADDY’S INTERNATIONAL, LLC,
	 	 	a North Carolina limited liability company, its sole member
	 	 	 	 
	 	 	 	By: GOOD TIMES RESTAURANTS INC.,
	 	 	 	a Nevada corporation, its sole member

 

 

	 	By:	/s/ Ryan M. Zink
	 	Name:  Ryan M. Zink
	 	Title:  Treasurer and Chief Financial Officer

  

    	 		GOOD TIMES RESTAURANTS INC.
 FOURTH AMENDMENT

    	 	

    

  

	ADMINISTRATIVE	 	 	 
	AGENT:	CADENCE BANK, NATIONAL ASSOCIATION,	 
	 	as Administrative Agent	 
	 	 	 	 
	 	By:	/s/ Josh Taylor	 
	 	Name: Josh Taylor	 
	 	Title:   Senior Vice President	 
	 	 	 	 
	 	 	 	 
	LENDERS:	CADENCE BANK, NATIONAL ASSOCIATION	 
	 	as a Lender	 
	 	 	 	 
	 	By:	/s/ Josh Taylor	 
	 	Name:  Josh Taylor	 
	 	Title:    Senior Vice President	 

 

  

GOOD
TIMES RESTAURANTS INC.
 FOURTH AMENDMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]