Document:

Exhibit 10.16

 

 

December 10, 2012

 

Jeffrey L. Rager

5115 Luke Ridge Lane

Katy, TX 77494

 

Dear Jeff:

 

This letter will serve as the understanding and agreement (“Agreement”) among Ignite Restaurant Group, Inc. (the “Company”), JCS Holdings, LLC (“JCS”) and their respective parents, subsidiaries, and affiliated companies (collectively, the “Company Group”), on the one hand, and you, on the other hand, with respect to your separation from employment.  This Agreement will not become effective or enforceable until the eighth (8th) day after you have executed this Agreement without having revoked it (the “Effective Date”).  In the event you revoke this Agreement prior to the Effective Date, this Agreement will have no force or effect.

 

DEFINITIONS.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in (i) the Unit Grant and Joinder Agreement, between JCS Holdings, LLC and Jeffrey L. Rager, dated July 24, 2008, as amended (the “Unit Grant Agreement”) or (ii) the Third Amended and Restated Limited Liability Company Agreement of JCS Holdings, LLC, as amended (the “JCS Agreement”).

 

CONTINUED EMPLOYMENT.  The Company shall employ you on the terms and conditions set forth in this Agreement through January 4, 2013 (the “Separation Date”), unless sooner terminated in accordance with this Agreement.  The period from the Effective Date through the termination of your employment is referred to herein as the “Transition Period”.

 

COMPENSATION AND BENEFITS.  During the Transition Period, the Company will continue to pay you your current base salary, less applicable taxes and withholdings, payable on a regular basis in accordance with the Company’s regular payroll practices.  In addition, you may continue to participate in the Company’s group health plan and other Company-sponsored benefit programs in which you were participating as of November 28, 2012, subject to the terms and conditions of the applicable plans.

 

VACATION.  During the Transition Period, you will continue to accrue vacation time.  Within thirty (30) days after the termination of your employment, the Company will pay you $132.21 for your accrued but not used vacation time.

 

EARLY TERMINATION; RIGHTS ON TERMINATION.  During the Transition Period, you will not be terminated by the Company except for Cause.  For purposes of this Agreement, “Cause” (i) shall have the meaning ascribed to it in the JCS Agreement and (ii) shall include your material breach of this Agreement.  Any termination of your employment by the Company other than for Cause, as provided herein, shall be deemed for all purposes to be “without Cause.”  Upon termination of your employment

 

 

 

for any reason, you will be entitled to receive (i) all earned but unpaid base salary owed through the effective date of termination, (ii) all accrued but unused vacation owed through the effective date of termination, and (iii) any reimbursements owed through the effective date of termination ((i), (ii) and (iii) collectively, the “Accrued Amounts”).  Except as expressly provided under this Agreement or as required by law, no other compensation, severance, or benefits will be due or payable to you subsequent to termination.

 

SEPARATION RELEASE; SEPARATION PAYMENT.  If (i) you execute and deliver to the Company the additional release attached hereto as Exhibit A (the “Separation Release”)  on or  within twenty-one (21) days after the Separation Date, and (ii) you do not revoke the Separation Release, then subject to your material compliance with the terms of this Agreement, the Company will pay you, in addition to the Accrued Amounts, severance pay in the gross amount of $137,500, less applicable withholdings, representing twenty-six (26) weeks of your current base salary (the “Severance Pay”).  The Severance Pay will be payable in substantially equal installments in accordance with the Company’s regular payroll practices, commencing on the thirtieth (30th) day after the Separation Date (but with the first payment being a lump sum payment covering all payment periods from the Separation Date through the date of such first payment).   The Severance Pay will be paid in lieu of, and you hereby waive the right to receive, any other cash severance payment that you are otherwise eligible to receive upon termination of employment under any other agreement between you and the Company Group (including, but not limited to, the Unit Grant Agreement) or under any severance plan, practice, policy or program maintained by the Company Group or as otherwise required by law.

 

CONTINUED BENEFITS.   Subject to your material compliance with the terms of this Agreement, including your execution of the Separation Release described in the preceding paragraph, the Company will continue to provide to you your current medical, dental and vision coverage elections at your active employee rate as of November 28, 2012 for a period of six (6) months after the Separation Date, subject to the terms and conditions of the applicable plans.  The Company will provide you with this coverage in accordance with the severance policy, which you would not otherwise be entitled to receive, only in consideration of your execution of the Agreement.  If you wish to extend your group medical, dental or vision coverage under COBRA, follow the instructions which will be provided to you within forty-four (44) days from the date that your coverage ends.   The coverage described in this paragraph is in lieu of, and you hereby waive the right to receive, any other coverage that you are otherwise eligible to receive upon termination of employment under any other agreement between you and the Company Group (including, but not limited to, the Unit Grant Agreement) or under any severance plan, practice, policy or program maintained by the Company Group.

 

DISCONTINUATION OF OTHER BENEFITS.     Except as expressly provided under this Agreement or as required by law, no other compensation, severance, or benefits will be due or payable to you subsequent to the Separation Date.    These include, but are not limited to, the dining discount benefit, 401K participation, and vacation accrual.

 

EXPENSE REPORTS.   Any outstanding expense reports must be submitted within two weeks of your Separation Date.  These expense reports will be processed in the normal course of business.

 

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RETURN OF COMPANY PROPERTY.   On or before the date of termination of your employment, you must immediately return all Company Group property, including but not limited to, all credit cards, phone cards, dining discount cards, badges, air passes, beepers, pagers, cellular phones, fax machines, printers, computers, laptops, AV equipment, home office furniture and/or equipment, keys, training materials, company documents and records, CD’s, DVD’s, computer disks, tapes, source codes, object codes, gift cards and certificates.

 

VERIFICATION OF EMPLOYMENT.   The Company will provide verification of your dates of employment and position held.  Should you need to refer a potential employer to the Company to verify employment, have them contact Human Resources in our Houston Restaurant Support Center.

 

TRADE SECRETS, CONFIDENTIAL AND PROPRIETARY INFORMATION.   You acknowledge and agree that you had access to and received trade secrets and confidential business and proprietary information while working at the Company Group.  Except as required by law and as provided in Paragraph 6 of the Unit Grant Agreement, you agree not disclose or use, directly or indirectly, at any time, any confidential or proprietary business information of the Company Group.  Such information includes, but is not limited to, lease information, personnel information, marketing strategy, pricing strategy, object or source codes of any software, financial information regarding the Company Group and other information which is generally not known to others unrelated to the Company Group.  The restrictions in this paragraph are in addition to and not in lieu of any other obligations you have to protect the Company Group’s trade secrets and confidential and proprietary information, including, but not limited to, obligations arising under the Company Group’s policies, ethical rules, and/or applicable law.  Nothing in this Agreement is intended to or should be interpreted as diminishing any rights and remedies the Company has under applicable law related to the protection of trade secrets or confidential information.

 

WAIVER OF NON-COMPETITION COVENANT.  The Company and JCS hereby waive their rights to enforce the non-competition covenant set forth in Paragraph 5 (a) of the Unit Grant Agreement with respect to the period after the termination of your employment.

 

DISTRIBUTION OF COMMON STOCK.  Provided that you remain employed by the Company through December 31, 2012, (i) you will be deemed to be “employed by the Company Group as of the applicable Vesting Date,” i.e., December 31, 2012, pursuant to Section 3 of the Unit Grant Agreement, to the effect that you will be vested in all Common Units (and in any Company common stock) that was or is to be distributed to you in accordance with the Unit Grant Agreement or the JCS Agreement and (ii) JCS hereby agrees to distribute to you promptly following the Separation Date 36,328 shares of common stock of the Company, par value $0.01 per share (the “Shares”).  You acknowledge that the Shares will be delivered to you as full satisfaction of your rights (except as expressly set forth herein) pursuant to all Common Units that are held by you and such Common Units will thereafter be cancelled.

 

WAIVER OF REPURCHASE RIGHTS.  The Company and JCS hereby waive their right pursuant to Section 3.5 of the JCS Agreement, to repurchase any of the Common Units (or the Shares) held by you as of the date hereof or that may be held by you following the Separation Date, and acknowledges the waiver of J.H. Whitney VI, L.P. attached hereto as Exhibit B.

 

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COOPERATION.  You agree that you will reasonably and appropriately respond to all reasonable inquiries from the Company Group relating to any current or future investigation, regulatory action, or litigation (including but not limited to any internal or external investigations), and shall make yourself reasonably available to confer with the Company Group and/or its counsel and otherwise provide such assistance as the Company Group and/or its counsel may deem necessary in connection with such investigation, regulatory action, or litigation.  The Company will reimburse all out-of-pocket expenses incurred by you in connection with compliance with this section.

 

GENERAL RELEASE.  You acknowledge that this Agreement fulfills all obligations of the Company Group to you, including arising out of your employment with the Company, your termination of employment and matters covered in this Agreement.  In exchange for the valuable consideration provided to you by this Agreement, except as otherwise expressly provided in this Agreement, you, for and on behalf of yourself and each of your heirs, administrators, executors, personal representatives, beneficiaries, successors and assigns, fully and completely release the Company, JCS and their respective parents, subsidiaries, and affiliated companies and all of their current and former officers (other than yourself), directors, managers, members, partners, shareholders, agents, employees, employee benefit plans and fiduciaries, insurers, representatives, attorneys, transferees, successors and assigns (collectively, the “Released Parties”), collectively, separately, and severally, of and from any and all claims, demands, damages, causes of action, debts, liabilities, controversies, judgments, and suits of every kind and nature whatsoever, foreseen, unforeseen, known or unknown, which you have had, now have, or may have against the Released Parties (or any of them) from the beginning of time up until the time you sign this Agreement.  This release of claims includes, but is not limited to, all claims relating to or arising out of your employment, including the terms and conditions of your employment and the termination of your employment; all claims of employment discrimination, harassment or retaliation under any federal, state or local statute or ordinance, public policy or common law, including, without limitation, any and all claims under Title VII of the Civil Rights Act of 1964; the Equal Pay Act; the Civil Rights Act of 1866; the Civil Rights Act of 1871; Executive Order 11246; the Age Discrimination in Employment Act of 1967; the Employee Retirement Income Security Act (with respect to unvested benefits); the Consolidated Omnibus Budget Reconciliation Act; the Americans With Disabilities Act; the Rehabilitation Act; the Family and Medical Leave Act of 1993; the National Labor Relations Act; the Worker Adjustment and Retraining Notification Act; the False Claims Act; the Texas Labor Code (specifically including the Texas Payday Act, the Texas Anti-Retaliation Act and the Texas Commission on Human Rights Act); and the Texas Whistleblower Act, and all amendments to those laws; all contract and quasi-contract claims; all claims for promissory estoppel or detrimental reliance; all claims for wages, bonuses, incentive compensation and severance allowances or entitlements; all claims for fraud, slander, libel, defamation, disparagement, negligent or intentional infliction of emotional distress, personal injury, prima facie tort, negligence, compensatory or punitive damages, or any other claim for damages or injury of any kind whatsoever; and all claims for monetary recovery, including, without limitation, attorneys’ fees, experts’ fees, medical fees or expenses, costs and disbursements.

 

Notwithstanding the foregoing, this release of claims does not release claims (i) for unemployment or workers’ compensation, (ii) for vested rights under ERISA-covered employee benefit plans as applicable on the date you sign this Agreement, (iii) that may arise after you sign this Agreement,  (iv) which cannot be released by private agreement, or (v) for indemnification under the certificate of incorporation and

 

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bylaws of the Company, or under Delaware law.  Nothing in this Agreement prevents you from filing a charge or complaint with or from participating in an investigation or proceeding conducted by any federal, state or local agency charged with the enforcement of any employment laws, although by signing this release you are waiving rights to individual relief based on claims asserted in such a charge or complaint, except charges before the NLRB or otherwise where such a waiver of individual relief is prohibited.

 

RELEASE OF CLAIMS BY COMPANY AND JCS.  Except for the obligations and privileges contained herein, the Company and JCS release, acquit, and discharge you, your successors and assigns (the “Rager Released Parties”) from any and all claims arising out of your employment, your directorship, and/or the termination of your directorship and your separation from employment, including, but not limited to, claims, claims of right to terminate you for “Cause,” demands, damages, causes of action, debts, liabilities, controversies, judgments, and suits of every kind and nature whatsoever, foreseen, unforeseen, known or unknown, which the Company and JCS have had, now have, or may have against the Rager Released Parties (or any of them) from the beginning of time up until the time the Company signs this Agreement, provided that nothing herein shall release you from any criminal acts or acts of willful misconduct.

 

Contemporaneously with delivery by you of the Separation Release, the Company and JCS shall deliver to you a Separation Release in the form of Exhibit C attached hereto.

 

REPRESENTATIONS.  You represent and warrant that (i) no litigation or other proceeding has been filed or is pending by you against any of the Released Parties, and that you have not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations, or causes of action released herein; (ii) except as expressly provided herein, you have been properly paid for all hours worked, and that you have received all commissions, bonuses, and other compensation due (if any) through the date you sign this Agreement; (iii) you have reported any and all work-related injuries or illnesses that you may have incurred during your employment; and (iv) you are not aware of any act, failure to act, practice, policy, or activity of the Company Group that you consider to be or to have been unlawful or potentially unlawful.

 

REVIEW OF AGREEMENT.  You acknowledge you have had the opportunity to review, consider and to ask questions about this Agreement for a sufficient time.  You acknowledge that you have been advised to consult an attorney of your choice in connection with this Agreement.   You further acknowledge that no promise or agreement of any kind, other than those set out in writing in this Agreement, has been made to you by any person to cause you to sign this Agreement.

 

ENFORCEMENT.  In the event of a breach of in this Agreement, either party may pursue any remedy available by law or in equity.  In the event of litigation, arbitration, mediation or other proceeding to enforce the terms hereof, the prevailing party shall be entitled to recover its reasonable attorney’s fees and costs.

 

SEVERABILITY.  Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release

 

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language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.

 

CONSIDERATION PERIOD; REVOCATION PERIOD.

 

This Agreement includes a release of claims under the Age Discrimination in Employment Act of 1967 (“ADEA”).  You have twenty-one (21) days from the date this Agreement was initially delivered to you to decide whether to sign this Agreement (the “Consideration Period”).  The Agreement should be returned to Kevin Cottingim, SVP / Chief Administrative Officer by the end of the Consideration Period.  Please fax the signed Agreement to Kevin at 832-369-7321, or send overnight to Kevin’s attention at 9900 Westpark Drive, Suite 300, Houston, TX 77063.

 

If you decide to sign this Agreement before the expiration of the Consideration Period, which is solely your choice, you represent that your decision is knowing and voluntary.  You acknowledge and agree that any revisions made to this Agreement after it was initially delivered to you were either not material or were requested by you, and that such changes do not re-start the Consideration Period.

 

You may revoke this Agreement within seven (7) days of signing it by delivering a written notice of revocation to Kevin Cottingim, SVP / Chief Administrative Officer.   For this revocation to be effective, written notice must be received no later than the close of business on the seventh day after you have signed the Agreement.    You understand and agree that this Agreement shall not become effective or enforceable until the Effective Date, which is the eighth (8th) day after you have executed this Agreement without having revoked it.  If you have any questions concerning this Agreement, please feel free to contact Kevin Cottingim, SVP / Chief Administrative Officer.

 

CONFIDENTIALITY.  You agree that the nature and terms of this Agreement are strictly confidential and you have not and will not disclose them at any time to any person other than your lawyer or accountant, a governmental agency, or your immediate family without the prior written consent of an officer of the Company, except as necessary in any legal proceedings directly related to the provisions and terms of this Agreement, to prepare and file income tax forms, or as required by court order after reasonable notice to the Company.

 

INDEMNIFICATION AND DIRECTORS’ & OFFICERS’ LIABILITY INSURANCE.  The Company shall continue to indemnify you, and shall provide you with Directors’ & Officers’ liability coverage commensurate with the Directors’ & Officers’ liability coverage covering you as of November 28, 2012 (provided you agree to execute any required undertakings in connection therewith), for any claims which may arise from events occurring during your service to the Company and its affiliates in accordance with the Amended and Restated Certificate of Incorporation of the Company and any ongoing indemnity therein provided or by the Indemnification Agreement between you and the Company dated May 10, 2012 or as provided by law.  JCS shall continue to indemnify you as provided in the JCS Agreement.

 

NON-ADMISSION.  This Agreement shall not be construed as an admission by you or any of the Released Parties of any liability or acts of wrongdoing or unlawful discrimination, nor shall it be considered to be evidence of such liability, wrongdoing, or unlawful discrimination.

 

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ENTIRE AGREEMENT.  The parties acknowledge that this Agreement is the complete and exclusive statement of the agreement among the parties regarding the subject matter herein and supersedes and cancels any other oral or written agreements among the parties with the exception of the Unit Grant Agreement.

 

MODIFICATION.  No provision of this Agreement may be amended, changed, altered, or modified except in writing signed by you and a duly authorized representative of the Company, which writing shall specifically reference this Agreement and the provision(s) that the parties intend to modify.

 

WAIVER.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.

 

CHOICE OF LAW; VENUE.   This Agreement shall be deemed to be made in, and in all respects shall be interpreted, construed, and governed by and in accordance with, the laws of the State of Texas.

 

[signature page follows]

 

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Please acknowledge your understanding of and agreement to all of the above terms by signing below.  This Agreement may be transmitted by facsimile.

 

	
Ignite   Restaurant Group Inc.
    	
JCS   Holdings, LLC
    
	
 
    	
 
    
	
By:
    	
/s/   Raymond Blanchette
    	
 
    	
By:
    	
/s/   Edward W. Engel
    
	
 
    	
Raymond   Blanchette, President and
    	
 
    	
Name:
    	
Edward   W. Engel
    
	
 
    	
Chief   Executive Officer
    	
 
    	
Title:
    	
Vice   President
    
						

 

 

I have fully read, understand and agree to all of the above.

 

 

	
/s/   Jeffrey L. Rager
    	
 
    	
12/10/12
    
	
Jeffrey   L. Rager
    	
 
    	
Date
    

 

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EXHIBIT A

 

SEPARATION RELEASE

 

I, Jeffery L. Rager, am executing this Separation Release this (“Release”) pursuant to the letter agreement among Ignite Restaurant Group, Inc. (the “Company”), JCS Holdings, LLC (“JCS”) and their respective parents, subsidiaries, and affiliated companies (collectively, the “Company Group”), on the one hand, and me, on the other hand, dated December       , 2012 (the “Agreement”).

 

GENERAL RELEASE.   In consideration for the benefits provided under the Agreement, to which I would otherwise not be entitled, I, for and on behalf of myself and each of my heirs, administrators, executors, personal representatives, beneficiaries, successors and assigns, except as otherwise expressly provided in the Agreement, fully and completely release the Company, JCS and their respective parents, subsidiaries, and affiliated companies and all of their current and former officers, directors, managers, members, partners, shareholders, agents, employees, employee benefit plans and fiduciaries, insurers, representatives, attorneys, transferees, successors and assigns (collectively, the “Released Parties”), collectively, separately, and severally, of and from any and all claims, demands, damages, causes of action, debts, liabilities, controversies, judgments, and suits of every kind and nature whatsoever, foreseen, unforeseen, known or unknown, which I have had, now have, or may have against the Released Parties (or any of them) from the beginning of time up until the time I sign this Agreement.  This release of claims includes, but is not limited to, all claims relating to or arising out of my employment, including the terms and conditions of my employment and the termination of my employment; all claims of employment discrimination, harassment or retaliation under any federal, state or local statute or ordinance, public policy or common law, including, without limitation, any and all claims under Title VII of the Civil Rights Act of 1964; the Equal Pay Act; the Civil Rights Act of 1866; the Civil Rights Act of 1871; Executive Order 11246; the Age Discrimination in Employment Act of 1967; the Employee Retirement Income Security Act (with respect to unvested benefits); the Consolidated Omnibus Budget Reconciliation Act; the Americans With Disabilities Act; the Rehabilitation Act; the Family and Medical Leave Act of 1993; the National Labor Relations Act; the Worker Adjustment and Retraining Notification Act; the False Claims Act; the Texas Labor Code (specifically including the Texas Payday Act, the Texas Anti-Retaliation Act and the Texas Commission on Human Rights Act); and the Texas Whistleblower Act, and all amendments to those laws; all contract and quasi-contract claims; all claims for promissory estoppel or detrimental reliance; all claims for wages, bonuses, incentive compensation and severance allowances or entitlements; all claims for fraud, slander, libel, defamation, disparagement, negligent or intentional infliction of emotional distress, personal injury, prima facie tort, negligence, compensatory or punitive damages, or any other claim for damages or injury of any kind whatsoever; and all claims for monetary recovery, including, without limitation, attorneys’ fees, experts’ fees, medical fees or expenses, costs and disbursements.  Notwithstanding the foregoing, this Release does not release claims (i) for unemployment or workers’ compensation, (ii) for vested rights under ERISA-covered employee benefit plans as applicable on the date I sign this Release, (iii) that may arise after I sign this Release, (iv) which cannot be released by private agreement, or (v) for indemnification under the certificate of incorporation and bylaws of Ignite Restaurant Group, Inc., or under Delaware law.  I understand that nothing in this Release prevents me from filing a charge or complaint with or

 

 

 

from participating in an investigation or proceeding conducted by any federal, state or local agency charged with the enforcement of any employment laws, although by signing this Release I am waiving rights to individual relief based on claims asserted in such a charge or complaint, except charges before the NLRB or otherwise where such a waiver of individual relief is prohibited.

 

REPRESENTATIONS.   I represent and warrant that (i) no litigation or other proceeding has been filed or is pending by me against any of the Released Parties, and that I have not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations, or causes of action released herein; (ii) except as expressly provided in the Agreement, I have been properly paid for all hours worked, and that I have received all commissions, bonuses, and other compensation due (if any) through the date I sign this Release; (iii) I have reported any and all work-related injuries or illnesses that I may have incurred during my employment; (iv) I am not aware of any act, failure to act, practice, policy, or activity of the Company Group that I consider to be or to have been unlawful or potentially unlawful; and (v) I have returned (or will return prior to my last day of employment) all Company  Group property, including but not limited to, all credit cards, phone cards, dining discount cards, badges, air passes, beepers, pagers, cellular phones, fax machines, printers, computers, laptops, AV equipment, home office furniture and/or equipment, keys, training materials, company documents and records, CD’s, DVD’s, computer disks, tapes, source codes, object codes, gift cards and certificates.

 

CONSIDERATION PERIOD; REVOCATION PERIOD.

 

I understand that this Release includes a waiver of claims under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that I have twenty-one (21) days from January 4, 2013 to decide whether to sign this Release (the “Consideration Period”).  I understand that if I decide to sign this Release, I must return a signed copy to Kevin Cottingim, SVP / Chief Administrative Officer by no earlier than January 4, 2013 and no later than January 25, 2013.  I understand that I may fax the signed Release to Kevin at 832-369-7321, or send overnight to Kevin’s attention at 9900 Westpark Drive, Suite 300, Houston, TX 77063.

 

If I decide to sign this Release before the expiration of the Consideration Period, which is solely my choice, I agree that my decision is knowing and voluntary.  I acknowledge and agree that any revisions made to this Release after it was initially delivered to me were either not material or were requested by me, and do not re-start the Consideration Period.  I acknowledge and agree that I have been advised to consult with an attorney prior to signing this Release.

 

I understand that I have seven (7) days from the date I sign this Release to revoke the Release by delivering a written notice of revocation to Kevin Cottingim, SVP / Chief Administrative Officer.   I understand that for this revocation to be effective, written notice must be received no later than the close of business on the seventh day after the date I have signed this Release.  This Release shall not become effective or enforceable until the eighth (8th) day after I sign this Release without having revoked it (the “Effective Date”).

 

REVIEW OF RELEASE.  I acknowledge that I have had the opportunity to review, consider and to ask questions about this Release for a sufficient time.  I further acknowledge that no promise or agreement

 

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of any kind, other than those set out in writing in this Release, has been made to me by any person to cause you to sign this Release.

 

SEVERABILITY.  Should any of the provisions set forth in this Release be determined to be invalid by a court, agency or other tribunal of competent jurisdiction, it is agreed that such determination shall not affect the enforceability of other provisions of this Release.

 

CHOICE OF LAW; VENUE.   This Release shall be deemed to be made in, and in all respects shall be interpreted, construed, and governed by and in accordance with, the laws of the State of Texas.

 

	
AGREED   TO AND ACCEPTED this
    	
 
    
	
7th day of January, 2013.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Jeffery L. Rager
    	
 
    
	
Jeffery L. Rager
    	
 
    

 

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EXHIBIT B

 

J.H. Whitney VI, L.P. Waiver

 

J.H. Whitney VI, L.P. hereby waives its right pursuant to Section 3.5 of that certain Third Amended and Restated Limited Liability Company Agreement of JCS Holdings, LLC, as amended, to repurchase any of the vested common units of JCS Holdings, LLC (or the related common stock of Ignite Restaurant Group, Inc.) held by Jeffrey L. Rager as of the date hereof or following his separation from Ignite Restaurant Group, Inc. on January 4, 2013.

 

	
 
    	
 
    	
J.H.   WHITNEY VI, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   J.H. Whitney Partners VI, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Paul Vigano
    
	
 
    	
 
    	
Name:
    	
Paul   Vigano
    
	
 
    	
 
    	
Title:
    	
Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
1/7/13
    
					

 

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EXHIBIT C

 

SEPARATION RELEASE

 

Ignite Restaurant Group Inc. and JCS Holdings, LLC are hereby executing this Separation Release this (“Release”) pursuant to the letter agreement among Ignite Restaurant Group Inc., JCS Holdings, LLC, and their parents, subsidiaries, and affiliated companies (collectively, the “Company”), on the one hand, and Jeffrey L. Rager (or “you”), on the other hand, dated December 10, 2012 (the “Agreement”).

 

RELEASE OF CLAIMS BY COMPANY AND JCS.  Except for the obligations and privileges contained in the Agreement, the Company and JCS release, acquit, and discharge you, your successors and assigns (the “Rager Released Parties”) from any and all claims arising out of your employment, your directorship, and/or the termination of your directorship and your separation from employment, including but not limited to, claims, claims of right to terminate you for “Cause,” demands, damages, causes of action, debts, liabilities, controversies, judgments, and suits of every kind and nature whatsoever, foreseen, unforeseen, known or unknown, which the Company and JCS have had, now have, or may have against the Rager Released Parties (or any of them) from the beginning of time up until the time the Company signs this Agreement, provided that nothing herein shall release you from any criminal acts or acts of willful misconduct.

 

SEVERABILITY.  Should any of the provisions set forth in this Release be determined to be invalid by a court, agency or other tribunal of competent jurisdiction, it is agreed that such determination shall not affect the enforceability of other provisions of this Release.

 

CHOICE OF LAW; VENUE.   This Release shall be deemed to be made in, and in all respects shall be interpreted, construed, and governed by and in accordance with, the laws of the State of Texas.

 

AGREED TO AND ACCEPTED this 7th day of January, 2013.

 

 

	
Ignite   Restaurant Group Inc.
    	
JCS   Holdings, LLC
    
	
 
    	
 
    
	
By:
    	
/s/   Raymond Blanchette
    	
 
    	
By:
    	
/s/   Edward W. Engel
    
	
 
    	
Raymond   Blanchette, President and
    	
Name:
    	
Edward   W. Engel
    
	
 
    	
Chief   Executive Officer
    	
Title:
    	
Vice   President
    
						

 

13EXHIBIT 10.10

 

Option: 2002 EIP-           

 

GRANITE CITY FOOD & BREWERY LTD.

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

PURSUANT TO AMENDED AND RESTATED EQUITY INCENTIVE PLAN (AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2013)

 

AMENDED AND RESTATED STOCK OPTION, dated effective January 1, 2013. Granite City Food & Brewery Ltd., a Minnesota corporation (the “Company”), hereby grants to Steven J. Wagenheim (the “Optionee”), an option (the “Option”) to purchase an aggregate of                shares of Stock (the “Shares”), at the price set forth below, and in all respects subject to the terms, definitions and provisions of the Granite City Food & Brewery Ltd. Amended and Restated Equity Incentive Plan (the “Plan”) adopted by the Company, which is attached hereto and incorporated herein by reference [EIP to be attached].  Unless otherwise defined herein, the terms used herein shall have the meanings assigned to them in the Plan.

 

1.                                      Nature of the Option.  This Option is not intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.

 

2.                                      Exercise Price.  The exercise price for each share of Stock is $            .

 

3.                                      Exercise of Option.  This Option shall be exercisable during its term in accordance with the provisions of Section 6 of the Plan as follows:

 

(a)                                 Expiration Date.  The Option shall expire on                                  (the “Expiration Date”).  In no event may this Option be exercised after the Expiration Date.

 

(b)                                 Exercisability.  Subject to the remaining terms of this Agreement and the Plan, the Option shall be exercisable and deemed vested cumulatively as follows:                                                                                                   .

 

(c)                                  Limitations on Exercisability.  In the event of Optionee’s death, disability or other termination of employment, the exercisability of the Option is governed by Sections 8, 9, and 10 below, subject to the limitations contained in subsections 3(d), (e) and (f).

 

(d)                                 Written Notice of Exercise.  Any exercise shall be accompanied by a written notice to the Company specifying the number of shares of Stock as to which the Option is being exercised.  Notation of any partial exercise shall be made by the Company on Schedule I hereto.

 

(e)                                  Payment of Purchase Price.  The purchase price of the Shares as to which the Option may be exercised shall be paid in full in cash at the time of exercise, or at the election of Optionee, by a cashless exercise of the Option.  If Optionee requests to effect a cashless exercise of the Option, Company agrees to deliver shares to Optionee on a cashless basis on the following conditions:

 

 

(i)                                     Optionee has not been terminated by the Company for cause;

 

(ii)                                  Upon exercise of the cashless exercise with respect to a particular number of Shares exercisable pursuant to this Option (the “Cashless Shares”), the Company shall deliver to Optionee (without payment by the Optionee of any Exercise Price) that number of shares of the Company’s common stock equal to the quotient obtained by dividing (x) the Exercise Price (as the same may be adjusted pursuant to this Option) by (y) the Cashless Value of one (1) share of the Company’s common stock immediately prior to the exercise.  The total desired shares to be exercised shall be multiplied by the quotient and this product shall be subtracted from the total desired shares to be exercised to yield or result in the total number of shares to be issued upon a cashless exercise.  The “Cashless Value” shall be determined by subtracting the Exercise Price of the exercised Shares from the aggregate Fair Market Value (as defined below) of the exercised Shares.  No fractional Shares shall be issuable upon a  cashless exercise, and if the number of Shares to be issued in accordance with the  foregoing formula is other than a whole number, the Company shall pay to Optionee an amount in cash equal to the Fair Market Value of the resulting fractional Share.

 

(iii)                               The cashless exercise right may be exercised by Optionee  by delivering written notice of Optionee’s intent to elect a Cashless Exercise to Company specifying the total number of Shares of common stock that Optionee will purchase pursuant to such exercise and a date not less than ten (10) business days from the date of such notice for the closing of such purchase.  The closing shall take place at the offices of the Company, through such other means as the Company shall specify.

 

(iv)                              At any closing for a cashless exercise, Optionee shall surrender the original executed copy of this Option in his possession and Company will deliver to Optionee a certificate or certificates for the number of Shares of common stock issuable  pursuant to such cashless exercise, together with cash in lieu of any fraction of a Share.  If any portion of this Option shall not be exercised pursuant to a cashless exercise, such unexercised portion may be exercised only for payment in cash as described above.

 

(iv)                              The “Fair Market Value” of a Share of common stock as of a particular date shall be as defined in the Plan.

 

(f)                                   Compliance with Laws and Regulations.  No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed.  Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares.

 

4.                                      Change in Control.  Upon the occurrence of a “Change in Control” (as defined in the Plan), this Option shall become fully vested and exercisable unless this Option is assumed by the surviving corporation or its parent substitutes options with substantially the same economic terms as this Option.  The Board or, where applicable, the Committee shall also have the right to cancel the unexercised portion of this Option in the event of a Change in Control, provided that in exchange for such cancellation, the Optionee will receive a cash payment equal to the Change in Control consideration less the exercise price set forth in Section 2 above.

 

5.                                      Optionee’s Representations.  In the event the Shares purchasable pursuant to the exercise of this Option have not been registered under the Act, at the time this Option is exercised, the Optionee

 

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shall, concurrently with the exercise of all or any portion of this Option, deliver to the Company his Investment Representation Statement in a form acceptable to the Company.

 

6.                                      Restrictions on Exercise.  This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations as promulgated by the Federal Reserve Board.  As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation.

 

7.                                      Termination of Status as an Employee.  In the event of termination of Optionee’s employment with the Company, Optionee may, but only within three months after the date of such termination (but in no event later than the date of expiration of the term of this Option as set forth in Section 3 above), exercise this Option to the extent that he was entitled to exercise it at the date of termination.  To the extent that he was not entitled to exercise this Option at the date of termination, or if Optionee does not exercise this Option within the time specified herein, the Option shall terminate.  Notwithstanding the forgoing, if the termination of the employment of Optionee occurs by action of the Company without cause, or by action of Optionee for “Good Reason” as such terms are defined the the Executive Employment Agreement between the Company and Optionee, dated effective January 1, 2013, the Company agrees that (a) the three-month exercise period provided in the first sentence of this Agreement shall not apply; (b) the Option shall, subject to the provisions of Section 10, remain exercisable in accordance with the terms hereof through the Expiration Date; and (c) the Option shall be deemed fully vested and exercisable in full.

 

In the event Optionee terminates employment voluntarily or is terminated for “cause” (as defined in the Plan), then any unvested option shall terminate immediately.  If the employment of Optionee is terminated by the Company or a Related Company for “cause” (as defined in the Plan), then the Committee shall have the right to cancel the Option.

 

8.                                      Disability of Optionee.  Notwithstanding the provisions of Section 7 above, in the event of termination of Optionee’s status as an employee as a result of his Disability, he may, but only within one year from the date of termination of employment (but in no event later than the date of expiration of the term of this Option as set forth in Section 3 above), exercise this Option to the extent he was entitled to exercise it at the date of such termination.  To the extent that he was not entitled to exercise the Option at the date of termination, or if he does not exercise such Option (which he was entitled to exercise) within the time specified herein, the Option shall terminate.

 

9.                                      Death of Optionee.  In the event of the death of Optionee:

 

(a)                                 during the term of this Option and while an employee of the Company and having been in continuous employment (as determined by the Board or the Committee in their sole discretion) since the date of grant of the Option, the Option may be exercised, at any time within one (1) year following the date of death (but in no event later than the date of expiration of the term of this Option as set forth in Section 3 above), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent Optionee was entitled to exercise the Option at the date of death; or

 

(b)                                 within three months after termination of employment, or following termination of employment if terminated without cause or by Optionee for Good Reason, the Option may be exercised, at any time within nine (9) months following the date of death (but in no event later than the date of expiration of the term of this Option as set forth in Section 3 above), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or

 

3

 

inheritance, but only to the extent of the right to exercise that had accrued at the date of termination.

 

10.                               Non-Transferability of Option.  This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by him.  The terms of this Option shall be binding upon the Optionee and his personal representatives, heirs, successors and assigns.

 

11.                               Plan Interpretation.  Optionee hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Board and, where applicable, the Committee, upon questions arising under the Plan.  In the event of any question or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall govern.

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by the officer named below and Optionee has executed this Agreement, both effective as of the day and year written below.

 

	
Date   of Grant:
    	
 
    	
 
    	
 
    
	
Date of Amendment and Restatement: Effective   January 1, 2013.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GRANITE   CITY FOOD & BREWERY LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Robert   J. Doran
    
	
 
    	
 
    	
Chief   Executive Officer
    

 

OPTIONEE ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S AMENDED AND RESTATED EQUITY INCENTIVE PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH HIS RIGHT OR THE COMPANY’S RIGHT TO TERMINATE HIS EMPLOYMENT AT ANY TIME, WITH OR WITHOUT CAUSE.

 

Optionee acknowledges receipt of a copy of the Plan and certain information related thereto and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof.  Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the Option.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board and, where applicable, the Committee, upon any questions arising under the Plan.  Optionee further agrees to notify the Company upon any change in the residence address indicated below.

 

 

	
 
    	
 
    
	
Steven   J. Wagenheim
    	
 
    
	
 
    	
 
    
	
Residence   Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

5

 

SCHEDULE I — NOTATIONS AS TO PARTIAL EXERCISE

 

	
Date of Exercise
    	
 
    	
Number of
   Purchased Shares
    	
 
    	
Balance of Shares
   on Option
    	
 
    	
Authorized
   Signature
    	
 
    	
Notation Date
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

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