Document:

Employment Agreement

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made effective as of
June 23, 2008, by and between GRILL CONCEPTS, INC., a Delaware corporation (the “Company”) and PHILIP GAY (“Employee’). 
 RECITALS 
 WHEREAS, the Company and Employee are party to an Employment Agreement dated March 3, 2006 (the
“Previous Agreement”), setting forth the terms and conditions of the Company’s employment of Employee as its President and Chief Executive Officer; and 
 WHEREAS, the Company and Employee have heretofore entered into Change of Control Agreement dated, September 30, 2005 and as amended and restated as of the date hereof (the “Change In Control
Agreement”), setting forth certain benefits that the employee would be entitled in the event of a change in control (as defined in the Change in Control Agreement); and 
 WHEREAS, the Company and Employee desire that Employee continue his employment with the Company and employ the Employee as its President and Chief
Executive Officer on the terms and conditions hereinafter set forth in this agreement which shall replace the Previous Agreement, but which shall have no force and effect to the Change In Control Agreement; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the parties hereby agree as follows: 
 1. EMPLOYMENT. 
 1.1 The Company hereby employs
Employee as its President and Chief Executive Officer for a term of three (3) years, commencing as of June 23, 2008 and ending as of June 22, 2011 (the “Term”); provided, however, that the Term may be extended for one year
by mutual written agreement of the parties. Employee hereby accepts such position, upon the terms and conditions set forth in the Agreement. 
 1.2 During the Term, Employee shall devote his full-time, energies and skills to the performance of his duties hereunder, which shall include, but not be limited to, the active development, management and operation of the Company’s
business, provided, that the foregoing shall not prohibit employee from serving on the boards of directors of up to three other non competitive (all restaurant operating and management companies shall be deemed competitive for purposes hereof)
companies, whether for profit or not for profit 
 1.3 During the Term, Employee shall not, directly or indirectly, alone or as a member of a
partnership or other association, or as an officer, director or stockholder, be engaged in or concerned with any other duties or pursuits in a business activity which compete, directly or indirectly, with the business of the Company without written
consent with the Company, other than owning securities in a publicly traded company, provided that such ownership by Employee does not exceed ten percent (10%) of any class of securities of such company. 
  

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 1.4 In the course of Employee’s employment hereunder, it is anticipated that Employee may from time
to time be allowed access to confidential information and trade secrets (collectively the “Confidential Information”) owned by the Company and used in the course of its business. The parties acknowledge and agree that there is a
competitive value and confidential nature with respect to the Confidential Information, and that material damage will result to the Company if the Confidential Information is disclosed to a third party. Employee therefore agrees that during the
Term, and for a period of three (3) years thereafter, Employee will not, directly or indirectly disclose or use any of the Confidential Information except as required in the ordinary course of the Company’s business and Employee’s
employment hereunder or if information becomes publicly available earlier. All records, files, documents and materials relating to the Company’s business which the Employee shall prepare, use or be provided with during the Term shall be and
remain sole property of the Company and shall not be removed form the Company’s premises or otherwise utilized by the Employee for other than the benefit of the Company without the Company’s written consent. 
 1.5 Employee acknowledges and agrees that in the event of a breach by Employee of any of the provisions of paragraphs 1.3 and 1.4 above, that in addition
to any other remedies it may have at law or in equity, the Company shall be entitled to injunctive relief without the necessity of proving the inadequacy of such other remedies. 
 2. SALARY. Employee shall receive an annual base salary during each year of the Term of this agreement as follows: 
  

				
	 June 23, 2008 to June 22, 2009
	  	$	350,000
	 June 23, 2009 to June 22, 2010:
	  	$	375,000
	 June 23, 2010 to June 22, 2011:
	  	$	400,000

 3. OTHER COMPENSATION. Employee shall be entitled to the following benefits and other compensation during
the Term: 
 3.1 Vacation. Five (5) weeks vacation during each year of the Term, at such times as shall be mutually agreed upon
between the Employee and the Company; provided, however, that Employee may not accumulate any unused vacation time from one employment year to the next during the Term. 
 3.2 Automobile. Unlimited use of an automobile of a make and model commensurate with Employee’s position as Chief Executive Officer of the Company. The Company shall pay all expenses for repair,
maintenance and insurance for such automobile in an amount not to exceed Fifteen Thousand Dollars per year. 
 3.3 Travel and
Entertainment. Subject to compliance with the Company’s documentation and procedural policies regarding reimbursement of expenses, unlimited reimbursement by the Company of Employee for entertainment, dining and travel expenses incurred by
Employee in the course of performing his duties hereunder. 
 3.4 Intentionally Omitted. 
 3.5 Health Benefits. During the Term and any extension thereof, unless the Employee is terminated for cause, each of the Employee and his spouse
(or widow) shall be entitled to receive, at the sole expense of the Company, such benefits, including without limitation, participation in group life, health, accident, disability, liability or hospitalization insurance plans, pension plans,
severance plans or retirement plans, as the Company currently makes available to its highest level of executive employees as a group or as such programs and benefits are amended. 
  

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 3.6 Life Insurance. Life insurance in such amount and on such terms as Employee shall determine,
the premiums and all other costs for which shall be paid in full by the Company; provided that the total annual premiums and costs paid by the Company shall not exceed $3,000. 
 3.7 Stock Options. Company hereby grants to Employee fifty thousand (50,000) shares of stock at a price equal to the closing price of the
Company’s common stock on the date of this agreement, in accordance with provisions of the Company’s Stock Option plan (the “Plan”). The options will vest one-third (1/3) June 22, 2009, one-third June 22, 2010 and
the final one-third on June 22, 2011. Nothing herein shall preclude the Company’s Board of Directors from granting additional stock options to the Employee in accordance with its customary practices. 
 3.8 Bonus Plan. Employee shall be eligible for participation in the Company’s Executive Bonus Plan (the “Bonus Plan”), the metrics
of which shall be established annually by the Compensation Committee of the Company’s Board of Directors; provided, however, that, in any event, Employee shall be eligible to receive an annual performance based bonus of a maximum (the
“Maximum Bonus”) of not less than sixty percent (60%) of salary based on satisfaction of performance goals established periodically and reflected in the Bonus Plan; and, provided, further, that, should performance exceed the goals so
reflected in the Bonus Plan by one hundred twenty five percent (125%) or more, the Maximum Bonus so established shall increase by fifty percent (50%), to a maximum of not less than ninety percent (90%) of salary. 
 3.9 Other Benefits. Such other benefits as Employee may be eligible to receive in accordance with the Company’s announced employee benefit
programs in effect from time to time. Nothing contained in this paragraph shall be deemed to restrict, limit or affect any stock options that may have previously been granted to Employee. 
 4. TERMINATION. This Agreement shall terminate upon earlier of any of the following: 
 4.1 The expiration of the Term hereof. 
 4.2
The mutual written consent of the parties hereto. 
 4.3 The death of the employee. 
 4.4 The permanent disability of the Employee, as such term is defined in paragraph 7 below. 
 4.5 For cause, at the option of the Company, as provided in paragraph 6 below. 
 4.6 A “Qualifying Termination” as defined in the Change in Control Agreement. 
 Nothing contained in this paragraph 4 shall be construed, however, to abrogate the payment by the Company to Employee or Employee’s personal
representative or heirs, as the case may be, of any benefits or compensation that had accrued and was due to Employee prior to termination of this Agreement. 
 5. COMPENSATION UPON TERMINATION. Upon termination of this Agreement under paragraph 4, the Company shall pay to, or for the benefit of, the Employee: 
 5.1 Upon termination under paragraphs 4.1, 4.2, 4.3 and 4.5, the Company shall pay to the Employee, or the Employee’s estate in the case of paragraph 4.3, all compensation and benefits accrued and due to employee
through the date of termination and the Company shall have no other obligations to the Employee under this Agreement. 
  

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 5.2 In the event of permanent disability of the Employee, the Company shall continue to pay to the
Employee all amounts otherwise payable to the Employee hereunder until the date of termination under paragraph 4.4 and, following termination pursuant to paragraph 4.4, for the remainder of the Term (without regard to termination), the Company shall
pay to the Employee, in the monthly installments, fifty percent (50%) of the base salary provided for under paragraph 2. 
 5.3 In the
event of a “Qualifying Termination” under the Change in Control Agreement, the Company shall pay to the Employee, at the option of the Employee, either (a) all salary and benefits otherwise payable under this Agreement for the balance
of the Term (without regard to termination), which amounts shall be payable on the dates and in the amounts that would otherwise apply had no Qualifying Termination occurred; or (b) the amounts otherwise payable under the Change in Control
Agreement. The Employee shall deliver to the Company his written election under this paragraph 5.3 within ten (10) days following a Qualifying Termination. 
 5.4 In the event that the Company terminates, or attempts to terminate, the Employee other than as permitted under paragraph 4 hereof, notwithstanding such purported termination, the Company shall remain obligated
hereunder to pay to the Employee all amounts otherwise payable hereunder for the remainder of the stated Term of this Agreement. 
 6. TERMINATION FOR
CAUSE. The Company shall have the right, at its sole election, to terminate Employee’s employment hereunder at any time during the Term for cause, which, for purposes of this Agreement shall be constituted by any of the following events:

 6.1 Employee is convicted by any federal, state or local authority with (i) an act of dishonesty; or (ii) an act involving moral
turpitude; or (iii) an act constituting a felony. 
 6.2 Narcotics addiction or habitual intemperance. 
 6.3 The continued failure by Employee, following written notice from the Company, to fulfill Employee’s obligations under or comply with any of the
provisions of this Agreement. 
 Any election by the Company to terminate this Agreement for cause under paragraphs 6.1, 6.2 or 6.3 above
shall be made by giving Employee written notice to such effect by certified or registered mail at Employee’s last known address, or by personal delivery of such notice to Employee; provided, however, that in the event Employee is either
convicted or pleads guilty or nolo contendere to any of the charges set forth in paragraph 6.1 above, the Company may immediately terminate this Agreement thereupon. The waiver by the Company of any such acts of Employee as described in this
paragraph 5 shall not be construed as a waiver of any subsequent acts by Employee. 
 7. PERMANENT DISABILITY. 
 7.1 The terms “permanent disability” as used in this Agreement shall mean six (6) months of substantially continuous disability.
Disability shall be deemed “substantially continuous” if, as a practical matter, Employee, by reason of mental or physical health, is unable to sustain reasonably long periods of substantial performance of his duties. Frequent long
illnesses, though different from a preceding illness and though separated by relatively short period of Employee’s performance of his duties hereunder, shall be deemed to be “substantially continuous.” 
  

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 7.2 In the event of any dispute concerning the permanent disability of Employee, the Company and Employee
shall each select a physician licensed to practice medicine in the State of California, who shall then select a third physician so licensed. Such selection shall be made within thirty (30) days after Employee gives notice to the Company that he
disputes the Company’s determination that the Employee is permanently disabled. The determination of a majority of the three (3) physicians concerning whether or not Employee is permanently disabled shall be conclusive and binding upon the
parties. Such determination shall be made by the three (3) physicians within sixty (60) days of their selection. In the event that either the Company of Employee fails to select a physician within the prescribed time period, then either it
or he shall be deemed to have waived its or his right to do so, and the determination regarding Employee’s disability hereunder shall be made by the sole physician selected. 
 8. ASSIGNMENT. Employee may not assign or otherwise transfer this Agreement or any of the Employee’s rights, duties, interests or obligations hereunder without the written request of the Company.

 9. ENTIRE AGREEMENT. This Agreement embodies the entire agreement and understanding between the parties with respect to the subject matter hereof,
and supercedes all prior and contemporaneous agreements and understandings relating to such subject matter, whether oral or written, including, without limitation, the Previous Agreement. The parties acknowledge and agree that neither has made any
representations with respect to the subject matter of this Agreement except as specifically set forth in this Agreement. 
 10. AMENDMENT. This
Agreement may not be amended except by a written document executed by both parties. 
 11. SEVERABILITY. If any provision of this Agreement shall be
held unenforceable as applied to any circumstance, the remainder of this Agreement and the application of such provision to other circumstances shall be interpreted so as best affect the intent of the parties. The parties further agree to replace
any such unenforceable provision with an enforceable provision (and to take such other action) which will achieve, to the extent possible, the purposes of the unenforceable provision. 
 12. GOVERNING LAW. This agreement shall be governed by and construed under the laws of the State of California. 
 13.
ARBITRATION. Any and all controversies, claims or disputes arising out of or related to this Agreement will be submitted to final and binding arbitration. The arbitration will be initiated and conducted according to either the JAMS
Streamlined (for claims under $250,000) or the JAMS Comprehensive (for claims over $250,000) Arbitration Rules and Procedures, except as modified herein, including the Optional Appeal Procedure, at the Los Angeles office of JAMS, or its successor
(“JAMS”) in effect at the time the request for arbitration is made (the “Arbitration Rules”). The arbitration will be conducted in Los Angeles County before a single neutral arbitrator appointed in accordance with the
Arbitration Rules. The arbitrator will follow California law and the Federal Rules of Evidence in adjudicating the dispute. The parties waive the right to seek punitive damages and the arbitrator will have no authority to award such damages.
The arbitrator will provide a detailed written statement of decision, which will be part of the arbitration award and admissible in any judicial proceeding to confirm, correct or vacate the award. Unless the parties agree otherwise, the neutral
arbitrator and the members of any appeal panel will be former or retired judges or justices of any California state or federal court with experience in matters involving the hospitality industry. If either party refuses to perform any or all of
its obligations under the final arbitration award (following appeal, if applicable) within thirty (30) days of such award being rendered, then the other party may enforce the final award in any court of competent jurisdiction in Los Angeles
County. The party seeking enforcement will be entitled to an award of all costs, fees and expenses, including attorneys’ fees, incurred in enforcing the award, to be paid by the 

  

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party against whom enforcement is ordered. Any dispute or portion thereof, or any claim for a particular form of relief (not otherwise precluded by any other
provision of this Agreement), that may not be arbitrated pursuant to applicable state or federal law may be heard only in a court of competent jurisdiction in Los Angeles County, California. 
 14. ATTORNEY’S FEES. In any arbitration or action to enforce this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party
all reasonable costs, including, without limitation, attorneys’ fees. 
 15. ADDITIONAL DOCUMENTS. The parties agree to execute such additional
documents and perform such other acts as may be necessary or appropriate to achieve the purposes of this Agreement. 
 16. NON-WAIVER. No waiver by a
party of any failure by the other party to keep any provision of this Agreement shall be deemed a waiver of any preceding or succeeding breach of the same or any other provision. 
 17. BINDING EFFECT. Subject to paragraph 7 above, this Agreement is binding upon and shall inure to the benefit of the parties and their respective successors, assigns, heirs, and legal representatives.

 18. NOTICE. Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or certified mail,
return receipt requested, addressed to the parties as indicated below: 
  

			
	If to the Company:	  	Grill Concepts, Inc.
		  	6300 Canoga Avenue, Suite 1700
		  	Woodland Hills, CA 91367
		  	Attn: Chairman of the Board
		
	If to Employee:	  	Philip Gay
		  	5575 Clee Court
		  	Agoura Hills, CA 91301

 Or to such other address as the parties may designate in writing pursuant to this paragraph. Notice shall be
deemed to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received. 
 19.
COUNTERPARTS. This Agreement may be executed in one or more counterparts and/or by facsimile, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile signatures shall be
accepted by the parties as valid and binding in lieu of original signatures; however, if facsimile signatures are presented by any party in lieu of original signatures, within two (2) business days after execution of the Agreement such party
shall also deliver to counsel for the other party(ies) an original signed by that party. 
 20. ACKNOWLEDGEMENT OF INDEPENDENT COUNSEL. Both the
Company and Employee acknowledge that each of them has read and understands this Agreement. In connection with the foregoing, the parties acknowledge that each of them has had an opportunity to have the Agreement reviewed by independent counsel, and
that each of the parties is aware of and understands the form, content and legal effect of this Agreement and their rights and obligations hereunder. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

									
	 The Company:
	 		 	Grill Concepts, Inc.
		 		 	a Delaware corporation
					
		 		 		 	By 	 	/s/ Robert Spivak
		 		 		 	Its:	 	Co-Chairman

  

							
	 Employee:
	 	 	 	 	 	/s/ Philip Gay
		 		 		 	Philip Gay

  

 7Change in Control Agreement

 EXHIBIT10.2 
 CHANGE IN CONTROL AGREEMENT 
 This CHANGE IN CONTROL AGREEMENT (this “Agreement”) is dated as of
June 23, 2008 and is entered into by and between Philip Gay (“Executive”) and Grill Concepts, Inc., a Delaware corporation (the “Company”). 
 BACKGROUND 
 The Company believes that because of its position in the industry, financial resources and
historical operating results there is a possibility that the Company may become the subject of a Change in Control (as defined below), either now or at some time in the future. 
 The Company believes that it is in the best interest of the Company and its stockholders to foster Executive’s objectivity in making decisions with
respect to any pending or threatened Change in Control of the Company and to assure that the Company will have the continued dedication and availability of Executive, notwithstanding the possibility, threat or occurrence of a Change in Control. The
Company believes that these goals can best be accomplished by alleviating certain of the risks and uncertainties with regard to Executive’s financial and professional security that would be created by a pending or threatened Change in Control
and that inevitably would distract Executive and could impair his ability to objectively perform his duties for and on behalf of the Company. Accordingly, the Company believes that it is appropriate and in the best interest of the Company and its
stockholders to provide to Executive compensation arrangements upon a Change in Control that lessen Executive’s financial risks and uncertainties and that are reasonably competitive with those of other corporations. 
 With these and other considerations in mind, the Compensation Committee of the Company has authorized the Company to enter into this Agreement with the
Executive to provide the protections set forth herein for Executive’s financial security following a Change in Control. 
 This
Agreement amends and replaces in whole the Change of Control Agreement previously entered into between the Company and the Executive, dated September 30, 2005. 
 NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration the receipt of which is hereby acknowledged, it is hereby agreed as follows: 
 AGREEMENT 
 1. TERM OF AGREEMENT. This
Agreement shall be effective from the date first written above and, subject to the provisions of Section 4, shall extend to (and thereupon automatically terminate) one (1) day after Executive’s termination of employment with the
Company for any reason. No termination of this Agreement shall limit, alter or otherwise affect Executive’s rights hereunder with respect to a Change in Control which has occurred prior to such termination, including without limitation
Executive’s right to receive the various benefits hereunder. 
 2. PURPOSE OF AGREEMENT. The purpose of this Agreement is to provide
that, in the event of a “Change in Control,” Executive may become entitled to receive certain additional benefits, as described herein, in the event of his termination under specified circumstances. 
 3. CHANGE IN CONTROL. As used in this Agreement, the phrase “Change in Control” shall mean: 
 (i) Except as provided by subparagraph (iii) hereof, the acquisition (other than from the Company) by any person, entity or
“group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (excluding, for this purpose, the Company or its subsidiaries, or any executive benefit plan
of the Company or its subsidiaries which acquires beneficial ownership of voting securities of the Company), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty-five percent (25%) or more of
either the then outstanding shares of common stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors; or 

 (ii) Individuals who, as of the date hereof, constitute the Board of Directors of the
Company (as of the date hereof the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of the Company, provided that any person becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s stockholders, is or was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial
assumption of office is in connection with an actual or threatened election contest relating to the election of the Directors of the Company) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent
Board; or 
 (iii) Approval by the stockholders of the Company of a reorganization, merger or consolidation with any other
person, entity or corporation, other than 
  

	 	(1)	a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of another entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such other entity outstanding immediately after such merger or consolidation,
or 

  

	 	(2)	a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person acquires twenty-five percent (25%) or more of the
combined voting power of the Company’s then outstanding voting securities; or 

 (iv) Approval by the
stockholders of the Company of a plan of complete liquidation of the Company or an agreement for the sale or other disposition by the Company of all or substantially all of the Company’s assets. 
 4. EFFECT OF A CHANGE IN CONTROL. In the event of a Change in Control, Sections 6 through 11 of this Agreement shall become applicable to Executive.
These Sections shall continue to remain applicable until the second anniversary of the date upon which the Change in Control occurs. On such second anniversary date, and provided that the employment of Executive has not been terminated on account of
a Qualifying Termination (as defined in Section 5 below), this Agreement shall terminate and be of no further force or effect. 
 5.
QUALIFYING TERMINATION. If within twelve (12) months following a Change in Control Executive voluntarily terminates his employment with the Company and its affiliated companies, or if following or within ninety (90) days prior to a Change
in Control Executive’s employment with the Company and its affiliated companies is terminated, such termination shall be conclusively considered a “Qualifying Termination” unless: 
 (a) Executive voluntarily terminates his employment with the Company and its affiliated companies on a date that is more than twelve
(12) months after the Change in Control. Executive, however, shall NOT be considered to have voluntarily terminated his employment with the Company and its affiliated companies if, following, or within ninety (90) days prior to, the Change
in Control, Executive’s overall compensation is reduced or adversely modified in any material respect or his authority or duties are materially changed and he elects to terminate his employment within sixty (60) days following such
reduction, modification or change. For such purposes, Executive’s authority or duties shall conclusively be considered to have been “materially changed” if, without Executive’s express and voluntary written consent, there is any
substantial diminution or adverse modification in Executive’s title, status, overall position, responsibilities, reporting relationship, general working environment (including without limitation secretarial and staff support, offices, and
frequency and mode of travel), or if, without Executive’s express 

  

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and voluntary written consent, Executive’s job location is transferred to a site more than fifty (50) miles away from his place of employment. In
this regard as well, Executive’s authority and duties shall conclusively be considered to have been “materially changed” if, without Executive’s express and voluntary written consent, Executive no longer holds the same title or
no longer has the same authority and responsibilities or no longer has the same reporting responsibilities, in each case with respect and as to a publicly held parent company which is not controlled by another entity or person. 
 (b) The termination is on account of Executive’s death or Disability. For such purposes, “Disability” shall mean a physical
or mental incapacity as a result of which Executive becomes unable to continue the performance of his responsibilities for the Company and its affiliated companies and which, at least three (3) months after its commencement, is determined to be
total and permanent by a physician agreed to by the Company and Executive, or in the event of Executive’s inability to designate a physician, Executive’s legal representative. In the absence of agreement between the Company and Executive,
each party shall nominate a qualified physician and the two physicians so nominated shall select a third physician who shall make the determination as to Disability. 
 (c) Executive is involuntarily terminated for “Cause.” For this purpose, “Cause” shall be limited to only three types
of events 
  

	 	(1)	Executive is convicted by any federal, state or local authority with (i) an act of dishonesty; or (ii) an act involving moral turpitude; or (iii) an act constituting
a felony; 

  

	 	(2)	Narcotics addition or habitual intemperance; or 

  

	 	(3)	The continued failure by Executive, following written notice from the Company, to fulfill Executive’s obligations under or comply with any of the provisions of Executive’s
Employment Agreement. 

 6. SEVERANCE PAYMENT. If Executive’s employment is terminated as a result of a Qualifying
Termination, and provided that the Executive does not elect to receive payments owing under paragraph 5.3(a) of his existing Employment Agreement dated of even date herewith, the Company shall pay Executive within thirty (30) days after the
Qualifying Termination a cash lump sum equal to two hundred percent (200%) of Executive’s Compensation, as hereinafter defined (the “Severance Payment”). Notwithstanding anything to the contrary herein, the sum of the aggregate
present value of (i) such Severance Payment, (ii) any and all additional amounts or benefits which may be paid or conferred to or on behalf of Executive in accordance with subsections (a) or (b) of Section 7 hereof, and
(iii) any and all other amounts or benefits paid or conferred to or on behalf of Executive that constitute a “parachute payment” (“parachute payment,” as defined in Section 280G(b)(2), or any successor thereto, of the
Internal Revenue Code of 1986, as amended (the “Code”)), shall not exceed an amount equal to one dollar less than three (3) times Executive’s “base amount” (“base amount,” as defined in
Section 280G(b)(3), or any successor thereto, of the Code). For the avoidance of doubt, the purpose and intent of the foregoing sentence is to avoid giving rise to any obligation of the Company to reimburse the Executive for (or otherwise pay
on Executive’s behalf) any Excise Tax (hereinafter defined) pursuant to Section 8 hereof, to the extent of then-current applicable law. The Severance Payment payable by the Company to the Executive shall be reduced to the extent necessary
to fulfill the requirement of the two immediately preceding sentences that payment of amounts includable in Executive’s base amount shall not exceed an amount equal to one dollar less than three (3) times Executive’s base Amount.

 (a) For purposes of this Agreement, Executive’s “Compensation” shall equal the sum of
(i) Executive’s highest annual salary rate with the Company, or any of its affiliated companies, within the three (3) year period ending on the date of Executive’s Qualifying Termination, or such shorter period if Executive has
been employed by the Company or any of its affiliated companies for a shorter period, plus (ii) a “Bonus Increment.” The Bonus Increment shall equal the annualized average of all bonuses and incentive compensation payments paid to
Executive during the two (2) year period immediately before the date of Executive’s Qualifying Termination under all of the Company’s bonus and incentive compensation plans or arrangements, or during such shorter period if Executive
has been employed by the Company or any of its affiliated companies for a shorter period. 
  

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 (b) The Severance Payment hereunder is in lieu of any severance payment that Executive
might otherwise be entitled to from the Company in the event of a Change in Control under the Company’s applicable severance pay policies, if any, or under any other oral or written agreement; PROVIDED, HOWEVER, that Executive shall continue to
be entitled to receive the severance pay benefits under the Company’s applicable policies, if any, or under another written agreement if and to the extent Executive’s termination is not a Qualifying Termination after, or within ninety
(90) days prior to, a Change in Control. 
 7. ADDITIONAL BENEFITS. 
 (a) In the event of a Qualifying Termination, any and all unvested stock options of Executive shall immediately become fully vested and
exercisable. 
 (b) In the event of a Qualifying Termination, Executive shall be entitled to continue to participate in the
following executive benefit programs which had been made available to Executive (including his family) before the Qualifying Termination: group medical insurance, group dental insurance, group-term life insurance and disability insurance. These
programs shall be continued at no cost to Executive, except to the extent that tax rules require the inclusion of the value of such benefits in Executive’s income. The programs shall be continued in the same way and at the same level as
immediately prior to the Qualifying Termination. The programs shall continue for Executive’s benefit for two (2) years after the date of the Qualifying Termination; PROVIDED, HOWEVER, that Executive’s participation in each of such
programs shall be earlier terminated or reduced, as applicable, if and to the extent Executive receives benefits as a result of concurrent coverage through another program. 
 8. INDEMNIFICATION FOR EXCISE TAX. In the event that Executive becomes entitled to receive a Severance Payment in accordance with the provisions of
Section 6 above, and notwithstanding the provision for a reduction in Severance Payment in Section 6, such Severance Payment and any other benefits or payments (including transfers of property) that Executive receives, or is to receive,
pursuant to this Agreement or any other agreement, plan or arrangement with the Company in connection with a Change in Control of the Company (“Other Benefits”) shall be subject to the tax imposed pursuant to Section 4999 of the Code
(or any successor thereto) or any comparable provision of state law (an “Excise Tax”), the following rules shall apply: 
 (a) The Company shall pay to Executive, within thirty (30) days after the Executive’s Qualifying Termination, an additional amount (the “Gross-Up Payment”) such that the net amount retained by Executive, after deduction
of any Excise Tax with respect to the Severance Payment or the Other Benefits and any federal, state and local income tax, FICA tax and Excise Tax upon such Gross-Up Payment, is equal to the amount that would have been retained by Executive if such
Excise Tax were not applicable. It is intended that Executive shall not suffer any loss or expense resulting from the assessment of any Excise Tax or the Company’s reimbursement of Executive for payment of any such Excise Tax. 
 (b) For purposes of determining whether any of the Severance Payments or Other Benefits will be subject to an Excise Tax and the amount of
such Excise Tax, (i) any other payments or benefits received or to be received by Executive in connection with a Change in Control of the Company or Executive’s termination of employment (whether pursuant to the terms of this Agreement or
any other plan, arrangement or agreement with the Company, any person whose actions result in a Change in Control or any person affiliated with the Company or such person) shall be treated as “parachute payments” within the meaning of
Section 280G(b)(2) of the Code (or any successor thereto), and all “excess parachute payments” within the meaning of Section 280G(b)(l) of the Code (or any successor thereto) shall be treated as subject to the Excise Tax, unless
in the opinion of tax counsel selected by the Company’s independent auditors and acceptable to Executive such other payments or benefits (in whole or in part) do not constitute parachute payments, or such excess parachute payments (in whole or
in part) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code (or any successor thereto), (ii) the amount of the Severance Payments and Other Benefits which shall be treated
as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Severance Payments or Other Benefits or (B) the amount of excess parachute payments within the meaning of Sections 280G(b)(l) and (4) of the Code
(or any successor or successors thereto), after applying clause (i), above, and (iii) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code (or any successor or successors thereto). 
  

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 (c) For purposes of determining the amount of the Gross-Up Payment, Executive shall be
deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rates of taxation in the state and
locality of Executive’s residence on the date of the Executive’s Qualifying Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 
 (d) In the event that the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time of the
Executive’s Qualifying Termination, the Executive shall repay to the Company, at the time that the amount of such reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment attributable to such reduction plus interest on
the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the Code (or any successor thereto) (the “Applicable Rate”). In the event that the Excise Tax is determined to exceed the amount taken into account
hereunder at the time of such Qualifying Termination (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of
such excess (plus interest, determined at the Applicable Rate, payable with respect to such excess) at the time that the amount of such excess is finally determined. 
 9. RIGHTS AND OBLIGATIONS PRIOR TO A CHANGE IN CONTROL. Prior to the date which is ninety (90) days before a Change in Control, the rights and obligations of Executive with respect to his employment by the
Company shall be determined in accordance with the policies and procedures adopted from time to time by the Company and the provisions of any written employment contract in effect between the Company and Executive from time to time. This Agreement
deals only with certain rights and obligations of Executive subsequent, or within ninety (90) days prior to, a Change in Control, and the existence of this Agreement shall not be treated as raising any inference with respect to what rights and
obligations exist prior to the date which is ninety (90) days before a Change in Control. Unless otherwise expressly set forth in a separate written employment agreement between Executive and the Company, the employment of Executive is
expressly at-will, and Executive or the Company may terminate Executive’s employment with the Company at any time and for any reason, with or without cause, provided that if such termination occurs within ninety (90) days prior to or two
(2) years after a Change in Control and constitutes a Qualifying Termination (as defined in Section 5 above) the provisions of this Agreement shall govern the payment of the Severance Payment and certain other benefits as provided herein.

 10. NON-EXCLUSIVITY OF RIGHTS. Subject to Section 6(c) hereof, nothing in this Agreement shall prevent or limit Executive’s
continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company or any of its affiliated companies and for which Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as Executive may have under any stock option or other agreements with the Company or any of its affiliated companies. Except as otherwise provided in Section 6(c) hereof, amounts which are vested benefits or which Executive is otherwise
entitled to receive under any plan or program of the Company or any of its affiliated companies at or subsequent to the date of any Qualified Termination shall be payable in accordance with such plan or program. 
 11. FULL SETTLEMENT. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder
shall not be affected by any set-off, counter-claim, recoupment, defense or other claim, right or action which the Company may have against Executive or others. In no event shall Executive be obligated to seek other employment or to take any other
action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement. The Company agrees to pay, to the full extent permitted by law, all legal fees and expenses which Executive may reasonably incur as a
result of Executive’s successful collection efforts to receive amounts payable hereunder, or as a result of any contest (regardless of the outcome thereof) by the Company or others of the validity or enforceability of, or liability under, any
provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by Executive about the amount of any payment pursuant to this Section). 
  

 5 

 12. SUCCESSORS. 
 (a) This Agreement is personal to Executive, and without the prior written consent of the Company shall not be assignable by Executive
other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. 
 (b) The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Company. 
 13. GOVERNING LAW. This Agreement is made and entered into in the State of California, and the internal laws
of California shall govern its validity and interpretation in the performance by the parties hereto of their respective duties and obligations hereunder. 
 14. MODIFICATIONS. This Agreement may be amended or modified only by an instrument in writing executed by all of the parties hereto. 
 15. DISPUTE RESOLUTION. 
 (a) Any controversy or dispute between the parties involving the
construction, interpretation, application or performance of the terms, covenants, or conditions of this Agreement or in any way arising under this Agreement (a “Covered Dispute”) shall, on demand by either of the parties by written notice
served on the other party in the manner prescribed in Section 16 hereof, be referenced pursuant to the procedures described in California Code of Civil Procedure (“CCP”) Sections 638, ET seq., as they may be amended from time to time
(or such procedures as nearly the same as may be available under the laws of California, the “Reference Procedures”), to a retired Judge from the superior court of California for the County of Los Angeles (the “Venue County”) for
a decision. 
 (b) The Reference Procedures shall be commenced by either party by the filing in the superior court of Venue
County a petition pursuant to CCP Section 638(1) (or such procedures as nearly the same as may be available under the laws of California, a “Petition”). Said Petition shall designate as a referee a Judge from the list of retired
superior court Judges from the Venue County who have made themselves available for trial or settlement of civil litigation under said Reference Procedures. If the parties hereto are unable to agree on the designation of a particular retired superior
court Judge of the Venue County, or the designated Judge is unavailable or unable to serve in such capacity, request shall be made in said Petition that the Presiding or Assistant Presiding Judge of the superior court of the Venue County appoint as
referee a retired superior court Judge from the aforementioned list. 
 (c) Except as hereafter agreed by the parties, the
referee shall apply the internal law of the State of California in deciding the issues submitted hereunder. Unless formal pleadings are waived by agreement among the parties and the referee, the moving party shall file and serve its complaint within
fifteen (15) days from the date a referee is designated as provided herein, and the other party shall have fifteen (15) days thereafter in which to plead to said complaint. Each of the parties reserves its respective rights to allege and
assert in such pleadings all claims, causes of action, contentions and defenses which it may have arising out of or relating to the general subject matter of the Covered Dispute that is being determined pursuant to the Reference Procedures.
Reasonable notice of any motions before the referee shall be given, and all matters shall be set at the convenience of the referee. Discovery shall be conducted as the parties agree or as allowed by the referee. Unless waived by each of the parties,
a reporter shall be present at all proceedings before the referee. 
 (d) It is the parties’ intention by this
Section 15 that all issues of fact and law and all matters of a legal and equitable nature related to any Covered Dispute will be submitted for determination by a referee designated as provided herein. Accordingly, the parties hereby stipulate
that a referee designated as provided herein shall have all powers of a Judge of the superior court including, without limitation, the power to grant equitable and interlocutory and permanent injunctive relief. 
  

 6 

 (e) Each of the parties specifically (i) consents to the exercise of jurisdiction
over his person by a referee designated as provided herein with respect to any and all Covered Disputes; and (ii) consents to the personal jurisdiction of the California courts with respect to any appeal or review of the decision of any such
referee. 
 (f) Each of the parties acknowledges that the decision by a referee designated as provided herein shall be a basis
for a judgment as provided in CCP Section 644 and shall be subject to exception and review as provided in CCP Section 645, or such procedures as nearly the same as may be available under the laws of California. 
 (g) The Company shall pay all fees and costs incurred by Executive in connection with the Reference Procedures for a Covered Dispute other
than attorneys’ fees incurred by Executive, except as otherwise required to be paid pursuant to Section 11. 
 16. NOTICES. Any
notice or communications required or permitted to be given to the parties hereto shall be delivered personally or be sent by United States registered or certified mail, postage prepaid and return receipt requested, and addressed or delivered as
follows, or at such other addresses the party addressed may have substituted by notice pursuant to this Section: 
  

			
	To the Company:	  	Grill Concepts, Inc.
		  	6300 Canoga Avenue, Suite 1700
		  	Woodland Hills, California 91367
		  	Attn: Chairman
		
	To the Executive:	  	Philip Gay
		  	5575 Clee Ct.
		  	Agoura Hills, California 91301

 17. CAPTIONS. The captions of this Agreement are inserted for convenience and do not constitute a
part hereof. 
 18. SEVERABILITY. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision
had never been contained herein and there shall be deemed substituted for such invalid, illegal or unenforceable provision such other provision as will most nearly accomplish the intent of the parties to the extent permitted by the applicable law.
In case this Agreement, or any one or more of the provisions hereof, shall be held to be invalid, illegal or unenforceable within any governmental jurisdiction or subdivision thereof, this Agreement or any such provision thereof shall not as a
consequence thereof be deemed to be invalid, illegal or unenforceable in any other governmental jurisdiction or subdivision thereof. 
 19.
COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one in the same Agreement. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered effective as of the day and year first written above.

  

	
	/s/ Philip Gay
	Philip Gay

  

			
	 GRILL CONCEPTS, INC.,
 a Delaware corporation

		
	By:	 	/s/ Robert Spivak
	Name:	 	Robert Spivak
	Title:	 	Co-Chairman

  

 7

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