Document:

Exhibit 10.1

 

FAT
Brands Inc.

9720
Wilshire Blvd., Suite 500

Beverly
Hills, CA 90212

 

Kenneth
J. Kuick

3760
Longview Valley Road

Sherman
Oaks, CA 91423

 

March
30, 2022

 

Dear
Ken:

 

FAT
Brands Inc. (the “Company”) is pleased to provide you with this retention incentive bonus agreement (this “Agreement”)
to recognize your ongoing contributions to the Company.

 

We
are offering you the bonus payment in the gross amount of $200,000 (the “Bonus”), subject to the terms and conditions
in this Agreement. The Bonus shall be paid as soon as practicable following the date of this Agreement and will offset, on a dollar-for-dollar
basis, any performance-based or discretionary bonus that you may otherwise earn or be entitled to receive with respect to 2022.

 

You
will be required, to the extent permitted under applicable law, to repay the full amount of the Bonus within thirty (30) days if, prior
to the time that the Company has duly filed both of its Annual Report on Form 10-K for the 2022 fiscal year and Quarterly Report on Form
10-Q for the first fiscal quarter of 2023, your continuous employment with the Company and its affiliates ends for any reason, other
than termination by the Company without cause.

 

This
Agreement does not confer upon you any right to continued employment or service with the Company or any affiliate, nor shall it interfere
in any way with the right of the Company or any affiliate to terminate your employment or service at any time for any reason.

 

You
will not have the right to assign, transfer, alienate, anticipate, pledge or encumber any portion of a payment due hereunder, nor shall
such amounts be subject to seizure by legal process by any creditor of yours.

 

This
Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of California, without reference
to conflict of law principles thereof. The parties consent to the exclusive jurisdiction and venue of any court of competent jurisdiction
sitting within the State of California with respect to any dispute arising out of or relating to this Agreement. If you agree to the
terms and conditions set forth above, then please sign and date in the space indicated below and return a signed original of this letter
agreement to the undersigned.

 

    	 

     

    

 

Again,
we value your contributions to the Company, and look forward to continuing our successful relationship.

 

Sincerely,

 

	FAT Brands Inc.	 	 	 
	 	 	 	 
	By:	/s/ Andrew Wiederhorn	 	 	 
	Name:	Andrew Wiederhorn	 	 	 
	Title:	Chief Executive Officer	 	 	 
	 	 	 	 
	Acknowledged and agreed:	 	 	 
	 	 	 	 
	/s/ Kenneth J. Kuick	 	Date:	 March 30, 2022
	Name: Kenneth J. Kuick	 	 	 

 

    	2bioc-ex43_527.htm

Exhibit 4.3

DESCRIPTION OF COMMON STOCK

 

General

 

The following description summarizes the material terms of our common stock. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description of the matters set forth in this “Description of Common Stock,” you should refer to our amended and restated certificate of incorporation, as amended (the “Restated Certificate”), and amended and restated bylaws, as amended (the “Restated Bylaws”), which are included as exhibits to our Annual Report on Form 10-K (the “Annual Report”), and to the applicable provisions of Delaware law. Our authorized capital stock consists of 150,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001 per share. Our board of directors has the authority, without stockholder approval, except as required by the listing standards of The Nasdaq Stock Market LLC, to issue additional shares of our capital stock.  In addition, our board of directors has the authority, without further action by our stockholders, to designate the rights, preferences, privileges, qualifications and restrictions of our preferred stock in one or more series.

 

Our board of directors has designated 2,106 shares of preferred stock as Series A Convertible Preferred Stock (the “Series A Preferred Stock”), 2,106 shares of which are issued and outstanding as of the date of the Annual Report. Each share of Series A Preferred Stock is convertible into the number of shares of our common stock determined by dividing the $1,000 stated value per share of the Series A Preferred Stock by the current as adjusted conversion price of $45.30 per share at the election of the holder, subject to proportional adjustment and beneficial ownership limitations as provided in the Certificate of Designation of Preferences, Rights and Limitations of Series Convertible Preferred Stock.

 

 

Voting Rights

 

Holders of our common stock are entitled to one vote per share in the election of directors and on all other matters on which stockholders are entitled or permitted to vote. Holders of our common stock are not entitled to cumulative voting rights.

 

Dividend Rights

 

Subject to the terms of any then outstanding series of preferred stock, the holders of our common stock are entitled to dividends in the amounts and at times as may be declared by our board of directors out of funds legally available therefor. Holders of Series A Preferred are entitled to receive dividends on shares of Series A Preferred Stock equal (on an as-converted to common stock basis) to and in the same form as dividends actually paid on our common stock.

 

Liquidation Rights

 

Upon liquidation or dissolution, holders of our common stock and holders of Series A Preferred Stock are entitled to share ratably (on an as-converted to common stock basis) in all net assets available for distribution to stockholders after we have paid, or provided for payment of, all of our debts and liabilities, and after payment of any liquidation preferences to holders of any then outstanding shares of preferred stock.

 

Other Matters

 

Holders of our common stock have no redemption, conversion or preemptive rights pursuant to the Restated Certificate or the Restated Bylaws. There are no sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to the rights of the holders of shares of any series of preferred stock that we may issue in the future.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our common stock is Continental Stock Transfer & Trust Company.

 

Stock Exchange Listing

 

Our common stock is listed on The Nasdaq Capital Market under the symbol “BIOC.”

 

Anti-Takeover Provisions

 

Delaware Anti-Takeover Law

 

We are subject to Section 203 of the Delaware General Corporation Law (“DGCL”), which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:

 

	
 
	
•
	
before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

 

	
 
	
•
	
upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

 

	
 
	
•
	
on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.

  

In general, Section 203 defines business combination to include the following:

 

	
 
	
•
	
any merger or consolidation involving the corporation and the interested stockholder;

 

	
 
	
•
	
any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;

 

	
 
	
•
	
subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

 

	
 
	
•
	
any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or

 

	
 
	
•
	
the receipt by the interested stockholder of the benefit of any loss, advances, guarantees, pledges or other financial benefits by or through the corporation.

 

In general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and associates, beneficially owns, or within three years before the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.

 

Restated Certificate and Restated Bylaws Provisions

 

Provisions of the Restated Certificate and the Restated Bylaws may delay or discourage transactions involving an actual or potential change in our control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our common stock. Among other things, the Restated Certificate and the Restated Bylaws provide that:

 

	
 
	
•
	
our board of directors is classified into three classes of equal (or roughly equal) size, with all directors serving for a three-year term and the directors of only one class being elected at each annual meeting of stockholders, so that the terms of the classes of directors are “staggered”;

 

	
 
	
•
	
the authorized number of directors can be changed only by resolution of our board of directors;

 

	
 
	
•
	
our Restated Bylaws may be amended or repealed by our board of directors or our stockholders;

 

	
 
	
•
	
no action can be taken by stockholders except at an annual or special meeting of the stockholders called in accordance with the Restated Bylaws, and stockholders may not act by written consent, unless the stockholders amend the Restated Certificate to provide otherwise;

 

	
 
	
•
	
stockholders may not call special meetings of the stockholders or fill vacancies on the board;

 

	
 
	
•
	
our board of directors will be authorized to issue, without stockholder approval, preferred stock, the rights of which will be determined at the discretion of the board of directors and that, if issued, could operate as a “poison pill” to dilute the stock ownership of a potential hostile acquirer to prevent an acquisition that our board of directors does not approve;

 

	
 
	
•
	
our stockholders do not have cumulative voting rights, and therefore our stockholders holding a majority of the shares of common stock outstanding will be able to elect all of our directors; and

 

	
 
	
•
	
our stockholders must comply with advance notice provisions to bring business before or nominate directors for election at a stockholder meeting.

 

Potential Effects of Authorized but Unissued Stock

We have shares of common stock and preferred stock available for future issuance without stockholder approval. We may utilize these additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, to facilitate corporate acquisitions or payment as a dividend on the capital stock.

The existence of unissued and unreserved common stock and preferred stock may enable our board of directors to issue shares to persons friendly to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of our management. In addition, the board of directors has the discretion to determine designations, rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of each series of preferred stock, all to the fullest extent permissible under the DGCL and subject to any limitations set forth in our certificate of incorporation. The purpose of authorizing the board of directors to issue preferred stock and to determine the rights and preferences applicable to such preferred stock is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing desirable flexibility in connection with possible financings, acquisitions and other corporate purposes, could have the effect of making it more difficult for a third-party to acquire, or could discourage a third-party from acquiring, a majority of our outstanding voting stock. The issuance of preferred stock could adversely affect the voting power of holders of common stock and reduce the likelihood that common stockholders will receive dividend payments and payments upon liquidation.  The issuance could also have the effect of decreasing the market price of our common stock.

 

Choice of Forum

 

Our Restated Bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, another state court located within the State of Delaware or, if no state court located within the State of Delaware has jurisdiction, the federal district court for the District of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for (a) any derivative action or proceeding brought on our behalf, (b) any action asserting a claim of 

breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders, (c) any action asserting a claim arising pursuant to any provision of the DGCL, the Restated Certificate or the Restated Bylaws, or (d) any action asserting a claim governed by the internal affairs doctrine, in all cases to the fullest extent permitted by law and subject to the court’s having personal jurisdiction over the indispensable parties named as defendants. This choice of forum provision does not apply to suits brought to enforce a duty or liability created by the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or any other claim for which the federal courts have exclusive jurisdiction.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}]]