Document:

Exhibit 10.11

 

Convertible Debt Investment Agreement

Among

Liu Kejia

Tech Sources International
Enterprises Limited

Li Hengfang

ReTo Eco-Solutions, Inc.

And

REIT Mingsheng Environmental Protection
Construction Materials (Changjiang) Co., Ltd.

 

This “Convertible Debt Investment Agreement”
(hereinafter referred to as the “Agreement”) is concluded and entered into by and among the following parties on September
30, 2016:

		(1)	Liu Kejia (hereinafter referred to as “Party A”), a natural person with full capacity for civil conduct
within the territory of China.

		(2)	 Tech Sources International Enterprises Limited (hereinafter referred to as “Party B”), a company duly
                                                          incorporated and validly existing under the laws of Hong Kong.

		(3)	Li Hengfang (hereinafter referred to as “Party C”), a natural person with full capacity for civil conduct within
the territory of China.

		(4)	ReTo Eco-Solutions, Inc. (hereinafter referred to as “Party D”), a company duly incorporated and validly
existing under the laws of British Virgin Islands.

		(5)	REIT Mingsheng Environmental Protection Construction Materials (Changjiang) Co., Ltd. (hereinafter referred to as “Party
E”), a limited liability company duly incorporated and validly existing under the laws of China, and located at No. 1, Fazhan
Road, Changjiang Circular Industrial Park, Hainan Province (at the south side at 221km of Yu-Hai West Line).

Whereas:

		1.	Party C has borrowed a total amount of RMB Twenty-One Million Two Hundred and Forty Thousand from Party A on March 28, 2016,
and such amount was used as the working capital of Party C's holding company ReTo Eco-Solutions, lnc. and its Chinese operating
entities.

		2.	Party D has borrowed RMB Twelve Million Seven Hundred and Eighty Thousand and RMB Eight Million Four Hundred and Sixty Thousand
respectively from Party C on April 10, 2016, collectively as a total amount of RMB Twenty-One Million Two Hundred and Forty Thousand,
such two borrowings thereof were used for repaying the arrears of civil engineering and steel structure owed externally by Party
D's subsidiary REIT Mingsheng Environmental Protection Construction Materials (Changjiang) Co., Ltd., the operating entity within
the territory of China.

		3.	Now, per the consensus of Party A, Party B, Party C, Party D and Party E, in respect of the borrowing of Party D from Party
C and the arrears owed by Party C to Party A, now Party D will uniformly issue the shares of equivalent amount to pay to Party
B.

 

    	 	1	 

     

    

Therefore,
Party A, Party B, Party C and Party D and Party E reach a consensus and agree as follows:

Each
party hereto plans to introduce Party B as the investing party through convertible debt. In order to guarantee smooth implementation
of this transaction, per friendly consultation among each party and pursuant to relevant laws, this Agreement has been concluded
to specify the rights and obligations of each party in this transaction.

		Article
                          1:	The
                                         amount already invested

Party
D has borrowed a total amount of RMB Twenty-One Million Two Hundred and Forty Thousand from Party C on April 10, 2016, and entrusted
Party C to pay the payment for civil engineering and the payment for steel structure on behalf of Party E, namely RMB 12.78 million
(in words: RMB Twelve Million Seven Hundred and Eighty Thousand) and RMB 8.46 million (in words: RMB Eight Million Four Hundred
and Sixty Thousand) respectively, the foregoing total amount paid by Party C on behalf of Party E is RMB 21.24 million (in words:
RMB Twenty-One Million Two Hundred and Forty Thousand).

The
borrowing of Party C from Party A on March 28, 2016 is RMB 21.24 million (in words: RMB Twenty-One Million Two Hundred and Forty
Thousand) in total.

Now,
in respect of Party C's creditor's rights to Party D, namely RMB 21.24 million in total, Party C agrees to transfer it to Party
A, so as to repay Party C's borrowing of RMB 21.24 million from Party A on March 28, 2016. Meanwhile, Party A agrees to transfer
its creditor's rights which it has in Party D to Party B. Therefore, as agreed herein, Party B will immediately enjoy the direct
creditor's rights of RMB 21.24 million in total to Party D, and it will be deemed as Party B directly invests RMB 21.24 million
in Party D.

		Article
                          2:	Convertible
                                         debt exercising method, price and refund

		2.1	Method

Each
party hereto unanimously agrees that Party D shall begin the convertible debt as agreed herein on or before September 30, 2016,
When Party D has completed the issuing registration formalities for the shares of investor's overseas company, such action will
be deemed as Party D has refunded relevant payment for others to Party B and completed the settlement, and Party C and Party E
will no longer bear any debt liability for Party A.

		2.2	Price
                                         of convertible debt and number of converted shares issued to Party B

Each
party agrees that the price of convertible debt this time is [USD 4.00]/share, the exchange rate between USD and RMB is subject
to 6.6375, and it is converted into 8,000,000 shares (calculation method: borrowing amount/6.6375/share price of USD 4.00).

 

    	 	2	 

     

    

 

		Article 3:	Effectiveness and termination

		3.1	This Agreement will become effective as of the date of signature by each party.

		3.2	This Agreement will be terminated upon the occurrence of any one of the following circumstances:

		3.2.1	Each party has reached a consensus to terminate;

		3.2.2	This investment cannot be implemented due to force majeure event or other objective reasons not attributable to each party;

		3.2.3	Either party hereto seriously violates the stipulation of this Agreement or applicable law, and thereby causing the performance
and fulfillment of this Agreement become impossible, under such circumstance, other parties are entitled to unilaterally terminate
this Agreement by serving written notice.

		Article 4:	Confidentiality

In the course of this investment, for the information
of other parties learned by each party, if such information has not been publicly disclosed, then it shall be deemed as confidential
information, and each party shall bear permanent duty of confidentiality therefor. Without the consent of other parties, neither
party may disclose the contents hereof to the public or the third party (except for making a statement or disclosure according
to legal provisions or the requirement of any statutory competent authority).

		Article 5:	Taxes and dues

		5.1	Each party agrees that any tax incurred from this investment shall be borne by each party respectively according to the provisions
of laws and regulations.

		5.2	Each party shall bear all expenses and expenditures incurred from the negotiation, drafting, signing and execution of this
Agreement respectively.

		Article 6:	Applicable law and dispute settlement

		6.1	The conclusion and performance of this Agreement shall be governed by and interpreted according to the law of China.

		6.2	Any dispute among each party arising from or related to this Agreement shall be first settled through friendly consultation.
If such dispute cannot be settled through consultation within 60 days as of the date of dispute occurrence, either party is entitled
to apply to the China International Economic and Trade Arbitration Commission located in Beijing China for arbitral settlement.

		6.3	Except for relevant clauses in dispute, during the period of dispute settlement, it shall not affect the effectiveness and
continuous performance of other clauses of this Agreement.

		6.4	Where some clauses of this Agreement are terminated of validity or are declared invalid pursuant to the law or the stipulations
of this Agreement, it shall not affect the validity of other clauses of this Agreement.

(The following is intentionally left blank)

    	 	3	 

     

    

(This page is the signature page and has no body text)

 

Party A: /s/ Liu Kejia

 

Party B: Tech Sources International Enterprises Limited (Seal)

Legal representative: /s/ Liu Kejia

 

Party C: /s/ Li Hengfang

 

Party D: ReTo Eco-Solutions, Inc. (Seal)

Legal representative: /s/ Li Hengfang

 

Party E: REIT Mingsheng Environmental Protection Construction
Materials (Changjiang) Co., Ltd. (Seal)

Legal representative: /s/ Li Hengfang

 

4ex10-2.htm

Exhibit 10.2

 

NATHAN’S FAMOUS, INC.

 

2018 MANAGEMENT INCENTIVE PLAN
Fiscal Year Ending March 25, 2018

 

Plan Purpose

 

The Nathan’s Famous, Inc. 2018 Management Incentive Plan (“Plan”) provides for certain employees of Nathan’s Famous, Inc. (the “Company”) and its subsidiaries who are executive officers and are designated (the “Covered Employees”) to receive annual incentive awards (“Awards”) based on the achievement of specific goals and objectives as established by the Compensation Committee of the Board of Directors of the Company (the “Board”). The Compensation Committee has delegated the authority with respect to the Plan to its Performance-Based Compensation Subcommittee (the “Committee”). The Plan has been adopted pursuant to the authority granted to the Committee under the Nathan’s Famous, Inc. Code Section 162(m) Bonus Plan and accordingly no stockholder approval is required to approve the Plan.

 

Plan Administration

 

By virtue of the authority delegated to the Committee, the Committee shall have the exclusive power and authority, in its discretion, to: (i) interpret the Plan; (ii) approve the designation of Covered Employees eligible to participate in the Plan; (iii) set the performance criteria and performance period for Awards within the Plan guidelines; (iv) certify attainment of performance goals and other material terms; (v) reduce Awards as provided herein; (vi) authorize the payment of all benefits and expenses of the Plan as they become payable under the Plan; (vii) adopt, amend and rescind rules and regulations relating to the Plan; and (viii) make all other determinations and take all other actions necessary or desirable for the Plan’s administration including, without limitation, correcting any defect, supplying any omission or reconciling any inconsistency in the Plan in the manner and to the extent it shall deem necessary to carry the Plan into effect, but only to the extent any such action would be permitted under Section 162(m) of the Internal Revenue Code of 1986, as amended. The Committee’s determinations under the Plan need not be uniform and may be made selectively among Covered Employees whether or not such Covered Employees are similarly situated.

 

All decisions of the Committee on any question concerning the designation of Covered Employees and the interpretation and administration of the Plan shall be final, conclusive and binding upon all parties. The Committee may rely on information, and consider recommendations, provided by the Board or the executive officers of the Company. The Plan is intended to comply with Code Section 162(m), and all provisions contained herein shall be limited, construed and interpreted in a manner to comply therewith.

 

 

 

 

 

In addition to such other rights of indemnification as they may have as members of the Board, members of the Committee who administer the Plan shall be defended and indemnified by the Company, to the extent permitted by law, on an after-tax basis against (i) all reasonable expenses (including attorneys’ fees) actually and necessarily incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Award awarded hereunder and (ii) all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within 30 days after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to defend the same.

 

Eligible Executives

 

For the fiscal year ending March 25, 2018 the Covered Employees will include Eric Gatoff, Chief Executive Officer (“Covered Employee 1”), Ron DeVos, Chief Financial Officer (“Covered Employee 2”), Scott Harvey, Executive Vice President (“Covered Employee 3”), and Leigh Platte, Vice President, Food Service (“Covered Employee 4”). Additional executive officers of the Company may be added to the Plan at the discretion of the Committee.

 

Determination of Incentive Awards

 

Performance Criteria

 

Annual Awards will be established based on the following performance criteria:

 

.

 

	 	
(i)
	
Modified EBITDA Net of Restaurant Contribution – Modified EBITDA less Company-Owned Restaurant Operating Profit and Franchising Revenue. The performance measures for the year ending March 25, 2018 are set forth on Exhibit A, and the target Modified EBTIDA Net of Restaurant Contribution is as established by separate resolution of the Committee on June 21, 2017.

	 	 	 
	 	(ii)	
Modified EBITDA – Earnings before interest expense, income taxes, depreciation  and amortization and modified to exclude FASB 123R expenses, bonus expenses for Plan participants, litigation or claim judgments or settlements, non-operating items and expenses for restructuring, productivity initiatives or new business initiatives. The performance measures for the year ending March 25, 2018 are set forth on Exhibit B, and the target Modified EBITDA is as established by separate resolution of the Committee on June 21, 2017.

	 	 	 
	 	(iii)	Company-Owned Restaurant Operating Profit. Operating profit derived from Company-owned restaurants. The performance measures for the year ending March 25, 2018 are set forth on Exhibits A and C, and the target Company-Owned Restaurant Operating Profit is as established by separate resolution of the Committee on June 21, 2017.

 

 

2

 

 

	 	(iv)	
Franchising Revenue – Total franchise fees, royalties and rebates earned from franchising activities. The performance measures for the year ending March 25, 2018 are set forth on Exhibits A and C, and the target Franchising Revenue is as established by separate resolution of the Committee on June 21, 2017.

	 	 	 
	 	(v)	
Foodservice Operating Profit – Operating profit derived from the Branded Products Program. The performance measures for the year ending March 25, 2018 are set forth on Exhibit D and the target Foodservice Operating Profit is as established by separate resolution of the Committee on June 21, 2017.

   

The aforementioned criteria may be adjusted by the Committee to exclude the effects of the following items: extraordinary, unusual or non-recurring items; effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results; effects of currency fluctuations; effects of financing activities (e.g., effect on earnings per share of issuing convertible debt securities); expenses for restructuring, productivity initiatives or new business initiatives; impairment of tangible or intangible assets; litigation or claim judgments or settlements; non-operating items; acquisition expenses; and effects of assets sales or divestitures.

 

Individual Awards – Performance Criteria:

 

	  	
Target 

Bonus (% of 

Salary)
	
Modified 

EBITDA Net of 

Restaurant 

Contribution 

(Weight %)
	
Company-

Owned 

Restaurant 

Operating Profit 

(Weight %)
	
Franchising 

Revenue 

(Weight %)

	
Covered Employee 1
	
150%
	
75%
	
12.5%
	
12.5%

 

 

 

	  	
Target Bonus (% of Salary)
	
Modified EBITDA (Weight %)

	
Covered Employee 2
	
100%
	
100%

 

 

 

	  	
Target Bonus

(% of Salary)
	
Company-Owned

 Restaurant Operating 

Profit (Weight %)
	
Franchising Revenue 

(Weight %)

	
Covered Employee 3
	
40%
	
35%
	
65%

 

 

 

	  	
Target Bonus (% of Salary)
	
Foodservice Operating Profit

(Weight %)

	
Covered Employee 4
	
50%
	
100%

 

 

3

 

 

The amount of individual Awards will be determined by the Committee upon attainment of the performance goals based on the aforementioned criteria (the “Performance Goals”). The Committee may exercise negative discretion with respect to any Award to reduce any amount that would otherwise be payable under the Plan.

 

Payment of Awards

 

Awards will be paid in cash no later than 21⁄2 months after the year ending March 25, 2018. Payment of the Awards shall be contingent upon the Committee certifying in writing that the Performance Goals and any other material terms applicable to such Award were satisfied.

 

Limitation on Awards

 

The maximum annual Award payable for the fiscal year ending March 25, 2018 to any Covered Employee under the Plan is $1,125,000.

 

Effective Date

 

The Plan is effective as of March 27, 2017.

 

Amendment, Suspension or Termination of the Plan. The Committee may at any time amend, suspend or terminate the Plan. However, any amendment or modification of the Plan shall be subject to stockholder approval to the extent required under Code Section 162(m) or other applicable law or regulation.

 

Adopted by the Performance-Based Subcommittee on June 21, 2017 for the fiscal year ending March 25, 2018. 

 

 

4

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