THIS EMPLOYMENT AGREEMENT (this Agreement) is signed on October 11, 2016, by and between Famous
Daves of America, Inc., a Minnesota corporation (the Company), and Doug Renegar (Executive). This Agreement shall be effective upon the date of termination of the Companys current Chief
Executive Officer, Adam Wright (Effective Date).
WHEREAS, Executive wishes to be employed by the
Company and the Company desires to employ Executive as its Senior Vice President of Franchise Operations (the SVP) on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of these premises, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged and intending to be legally bound, the parties hereto hereby agree as follows:
Employment; Employment Term. Upon the terms and conditions hereinafter set forth, the Company hereby agrees to retain the services of Executive and Executive hereby accepts such employment and agrees to faithfully and diligently serve as
directed by the Chief Executive Officer of the Company (the CEO) in accordance with this Agreement, commencing on the Effective Date and, unless terminated earlier pursuant to Section 6 of this Agreement,
continuing until the close of business on the four (4) year anniversary of the Effective Date (the Employment Term).
(a) Services. During the Employment Term, Executive agrees to serve as SVP of the Company and shall render his duties as
SVP in a manner that is consistent with Executives position within the Company and as assigned by the CEO. Executive shall perform duties generally typical for a Senior Vice President of Franchise Operations of a publicly traded company with
extensive franchise operations operating and conducting business in the United States and its territories, Canada, Abu Dhabi and such other countries as the Company may conduct operations and do business in during the Employment Term. In addition to
his duties as SVP, if requested by the Board of Directors of the Company (the Board), Executive agrees to serve as an elected/appointed officer of the Company and Executive shall serve in such capacity without additional
compensation. If requested by the Board, Executive also agrees to serve as any elected/appointed director or officer of any subsidiary of the Company that the Company may, in its sole discretion, deem fit and Executive shall serve in such capacity
or capacities without additional compensation.
(b) Certain Obligations. During the Employment Term, Executive
(i) shall devote 100% of his business time and attention to achieve, in accordance with the policies and directives of the Board established from time to time in their discretion, the objectives of the Company, (ii) shall be subject to,
and comply with, the rules, practices and policies applicable to executive employees, whether reflected in an employee handbook, code of conduct, compliance
policy or otherwise, as the same may exist and be amended from time to time, of the Company; and (iii) shall not engage in any business activities other than the performance of his duties
under this Agreement. Executive may have investments in other entities and act as a director for the entities and in the capacities set forth on Exhibit A hereto, or as otherwise approved by the Board; provided that so acting shall not
materially interfere with Executives duties with the Company. Executive agrees and acknowledges that in the event that Executives performance of his services and duties to the Company hereunder is inconsistent with or presents any
conflict of interest with his obligations as an owner, operator or member of the board of directors of Famous Five Dining, Inc. (collectively, with all franchise affiliates, FFD, Inc.), Executives primary duty shall
be to the Company, and to the extent that a conflict arises, Executive shall promptly make the Board aware of such conflict.
(c) Location. The Company specifically knowledges and agrees Executive will maintain his permanent residence in
Franklin, Tennessee and will fulfill his duties as SVP hereunder while based in Franklin, Tennessee; provided, however, that Executive agrees to report to the Companys headquarters in Minnetonka, Minnesota when and as required by the
Companys Chief Executive Officer. Executive acknowledges that his employment under this Agreement will require substantial travel and stay outside Franklin, Tennessee and the United States in order to fulfill his duties hereunder.
3. Compensation. For the services rendered herein by Executive, and the promises and covenants made by Executive herein,
during the Employment Term the Company shall pay compensation to Executive as follows.
(a) Base Salary. The Company
shall pay to Executive the sum of TWO HUNDRED THOUSAND DOLLARS ($200,000) as an annual salary (the Base Salary), payable in accordance with the normal payroll practices of the Company.
(b) Bonus. Executive shall be eligible to receive a discretionary annual bonus, which shall be determined by the Board
in its sole discretion (the Bonus) based upon Executives achievement of milestones, with said milestones determined by Companys Chief Executive Officer and approved by the Board with input from Executive (the
Milestones). The achievement of the Milestones will be determined by the Board in its sole discretion. The Board shall establish a targeted amount of each Bonus, although the Board may determine in its sole discretion that
it is appropriate to approve a Bonus, if any, that is less or more than this targeted amount. For any year in which the Executive works less than a complete year, the Bonus, if any, for the partial year shall be pro-rated based upon the
number of days worked versus the standard calendar year. The Company shall have the right to condition the payment of any Bonus on Executives contemporaneous execution of a document in which Executive confirms, ratifies and agrees that his
obligations under Section 5 are valid and binding and are enforceable against Executive in accordance with the terms of Section 5. Any Bonus amounts shall be paid at the same time as annual bonuses are paid to the
Companys other executive officers.
(c) Equity Grants. Subject to the approval of the Compensation Committee
of the Board, promptly following execution of this Agreement, the Company shall grant to Executive stock options (the Options) exercisable for 35,000 shares of the Companys common
stock (Common Stock). The Options shall be granted pursuant to and governed by the terms of the Companys 2015 Equity Incentive Plan, as amended from time to time
(the Plan), and evidenced by a separate stock option agreement between Executive and the Company. The exercise price of the Options shall be no less than the fair market value of the shares of Common Stock on the date of
grant, as determined in good faith by the Board. Subject to the accelerated vesting described herein and Executive remaining continuously employed by the Company as its SVP on each vesting date (Continuous Service Status),
the Options shall vest in installments of 729 options shares on first 47 monthly anniversaries of the Effective Date over the Employment Term (the first vesting date being on the one (1) month anniversary of the Effective Date hereof) and 737
options shares on the 48th monthly anniversary of the Effective Date. In addition to the Options, the Board shall give consideration to additional equity grants to Executive in subsequent years of
the Employment Term. Notwithstanding anything to the contrary set forth in the Plan, the Options shall have the following terms:
(i) In the event of a Change of Control (as defined in the Plan) during the Employment Term in which the
acquiring company or successor company opts not to assume this Agreement, the vesting of the Options will accelerate such that the Options shall be fully vested and exercisable immediately prior to such Change of Control;
(ii) In the event of a Corporate Transaction (as defined in the Plan), at the option of the Board in its sole
discretion, Executive shall exercise the Options or such failure to exercise will result in the Options terminating immediately prior to such Corporate Transaction;
(iii) In the event of a Corporate Transaction, in exchange for the termination of the Options, the Board in its
sole discretion may make a cash payment to Executive in an amount equal to the product obtained by multiplying (x) the amount (if any) by which the transaction proceeds per share exceed the exercise price per share covered by the Option times
(y) the number of shares of Common Stock covered by the Option;
(iv) The Options will terminate if
not exercised within six (6) months of Executives termination from the Company for any reason;
(v) All unvested Options will terminate upon the termination of your employment with the Company;
(vi) If the Executive breaches the Executive Notice Period set forth in Section 6(d) below, fifty percent
(50%) of Executives vested Options shall automatically terminate; and
(vii) Unless earlier
terminated as set forth above, the Options shall expire on the five (5) year anniversary of the date of grant.
No Additional Compensation. Except for compensation set forth in this Agreement, Executive shall not receive additional compensation in connection with providing services to or holding executive or directorial office(s) in the Company or any
of its subsidiaries unless otherwise agreed to by Executive and the Company in the Companys sole discretion.
(a) Vacation. During Employment Term, Executive shall also be eligible to receive paid time off
(PTO) as outlined in the Companys PTO program.
(b) Other Benefits. During the
Employment Term, Executive will be eligible to participate in the Companys benefit plans that are currently and hereafter maintained by the Company and for which he is eligible including, without limitation, group medical, 401k, life insurance
and other benefit plans (the Benefits). The Company reserves the right to cancel or change at any time the Benefits that it offers to its employees.
(c) Expenses. During the Employment Term, Executive shall be reimbursed for reasonable (travel and other) expenses
incurred by Executive in the furtherance of or in connection with the performance of Executives duties hereunder, in accordance with the Companys expense reimbursement policy as in effect from time to time. The Company will provide the
Executive with a cell phone and a laptop computer (or reimburse Executive for the costs of a computer and/or a cell phone and a cellular calling and data plan) and reimburse Executive for a data and wifi plan. Executive agrees to provide detailed
backup of any expenses and indicate on any submission for reimbursement those expenses that relate to meals and entertainment.
(d) Relocation Reimbursement. In the event that Executive relocates, at the request of the Companys CEO, to the
Minneapolis/St. Paul metropolitan area during the Employment Term, the Company shall pay (either by reimbursement of Executive or by direct payment to the moving company, as determined by the Company) up to $10,000 in moving expenses Executive
incurs within, for only those relocation related expenses that: (A) Executive has incurred within eighteen (18) months of such relocation, so long as Executive is employed by the Company, and (B) are reasonably connected to
Executives relocation (the Eligible Relocation Expenses). Executive agrees to provide detailed backup of any Eligible Relocation Expenses.
(e) Travel Points. Company specifically acknowledges and agrees that Executive shall be entitled to retain any travel
points and/or frequent flyer miles awarded as a result of Executives business travel on behalf of the Company.
Non-Disclosure of Information, Assignment of Intellectual Property, and Restrictive Covenants. Executive acknowledges that the Company is in the business of developing, owning, operating and franchising barbeque restaurants globally, with a
focus on the United States and its territories, Canada and Abu Dhabi and any other country where the Company does business, that the Company has and will develop and assemble extensive know-how and trade secrets relating to its business,
the business of its franchisees and the business of its suppliers and has developed an extensive relationship with its franchisees, suppliers and customers. Beginning from the Effective Date and continuing during Executives employment with the
Company, Executive will have access to such trade secrets and relationships and other proprietary information of the Company. Executive agrees to protect the Companys Confidential Information (as defined below) as provided in this
(a) Confidential Information. Confidential
Information means information regarding the Company not generally known and proprietary to the Company, or to a third party for whom the Company is performing work, including, without limitation, information concerning any patents or
trade secrets, confidential or secret designs, infomercial sources, media outlets, pricing, processes, formulae, source codes, plans, devices or material, research and development, proprietary software, analysis, techniques, materials or designs
(whether or not patented or patentable), directly or indirectly useful in any aspect of the business of the Company or any vendor names, customer and supplier lists, databases, management systems and sales and marketing plans of the Company, or any
confidential secret development or research work of the Company, or any other confidential information or proprietary aspects of the business of the Company. All information which the Executive acquires or becomes acquainted with during his
employment with the Company, whether developed by the Executive or by others which the Executive has a reasonable basis to believe to be Confidential Information, or which is treated by the Company as being Confidential Information, shall be
presumed to be Confidential Information. Executive also agrees to enter into and remain bound by the Companys Employee Confidentiality Agreement (the Employee Confidentiality Agreement), the Companys Information
Technology and Data Security Policy, as amended from time to time (the Data Security Policy), the Companys Sexual Harassment, Offensive Behavior and Non-Discrimination Policy (the Harassment and
Discrimination Policy), the Gifts & Prizes Policy (the Gift Policy) and any and all other employee policies adopted by the Company from time to time (together with the Data Security Policy, the
Harassment and Discrimination Policy and the Gift Policy, the Company Policies).
Confidentiality Covenant. Except as permitted or directed by the Company, the Executive shall not, either while employed by the Company or thereafter, divulge, furnish or make accessible to anyone or use in any way (other than as required in
the performance of Executives duties as SVP hereunder) any Confidential Information. The Executive acknowledges that the Confidential Information constitutes a unique and valuable asset of the Company and represents a substantial investment of
time and expense by the Company, and that any disclosure or other use of such Confidential Information other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to the Company. Both during and after the
Employment Term under this Agreement, Consultant will refrain from any acts or omissions that would reduce the value of such knowledge or information to the Company.
(c) Assignment of Intellectual Property. Executive agrees to assign and hereby assigns to the Company (the
Assignment) any and all rights, improvements and copyrightable or patentable subject matter, know-how, and other intellectual property relating to the Companys business (or any of its subsidiaries businesses)
which Executive conceived or developed, or may conceive or develop, either alone or with others, or which otherwise arose or may arise during Executives employment with the Company and for a period of eighteen (18) months thereafter
(Assignable Property). For the avoidance of doubt, the Assignable Property does not apply to an invention for which no equipment, supplies, facility or trade secret information of the Company was used and which was
developed entirely on the Executives own time, and (1) which
does not relate (a) directly to the business of the employer or (b) to the employers actual or demonstrably anticipated research or development, or (2) which does not result
from any work performed by the Executive for the Company. Executive shall promptly disclose to the Company all Assignable Property. Executive agrees not to assert any rights against the Company (or any of its subsidiaries) or seek compensation from
the Company (or any of its subsidiaries) for the foregoing Assignment or the Companys (or any of its subsidiaries) use of Assignable Property. Executive shall promptly disclose to the Company all knowledge that Executive has or obtains
regarding Assignable Property and, at the request of the Company, Executive shall, without expense or additional compensation, provide the Company with whatever assistance that the Company may request of Executive including, but not limited to:
(i) signing documents to further evidence and perfect an Assignment; (ii) obtaining for the Company patents, trademarks and trademark protection, copyrights and copyright protection, assignment of rights, and protection of trade secrets;
and (iii) taking any other action the Company deems appropriate for securing or protecting its rights in Assignable Property or other intellectual property of the Company or its subsidiaries.
(d) Non-Solicitation. During the Employment Term and for a period of eighteen (18) months thereafter, Executive
shall not, whether for his own benefit or that of any other individual, partnership, firm, corporation, or other business organization, directly or indirectly: (i) solicit or attempt to induce any employee of the Company or any of its
subsidiaries (an Employee) to leave his/her employment with the Company or in any way interfere with the relationship between or among the Company and any Employee; (ii) hire any person who was an Employee at any time
during the Employment Term, (iii) induce or attempt to induce any supplier, licensee, franchisee or other business relation of the Company (collectively, the Partners) to limit or reduce his, her or its relationship
with the Company or (iv) make any negative or disparaging statements or communications regarding the Company, any of its current or former directors, stockholders, officers, Employees or Partners (collectively,
(e) Non-Compete. During the Employment Term (i) if the Employees
employment was terminated by the Company other than for Cause or by the Employee for Good Reason, during the Severance Period (as defined below), or (ii) if the Employees employment was terminated by the Company for Cause or by the
Employee not for Good Reason, and for twelve months following the termination of Executives employment with the Company, Executive shall not (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate
officer, director or otherwise) directly engage, own, have an interest, or participate in the financing, operation, management or control of any person, firm, corporation or business whose primary business is the retail sale of barbeque format food
or whose restaurant business derives 30% of its food-related revenues from the sale of barbeque type food or barbeque-related products, other than as a stockholder with less than one percent (1%) of the outstanding common stock of a publicly
traded company; provided however, that this Section 5(e) shall not restrict the Executive with respect to any existing or future Company franchise locations owned or operated by Executive (or FFD, Inc. as defined in Exhibit A) or any single
location restaurant. The foregoing covenant shall cover Executives activities in the United States and its territories, in Canada, Abu Dhabi and in any other country in which the Company does business during the Employment Term.
(f) Equitable Relief. In the event of a breach of or threatened breach by
Executive of the provisions of this Section 5, the Company shall be entitled to an injunction restraining Executive from violating these covenants. Any breach or threatened breach of such provisions will cause irreparable injury to the
Company and that money damages will not provide an adequate remedy therefor, and Executive hereby consents to the issuance of an injunction and to the ordering of such specific performance in the event the Company seeks injunctive relief and agrees
that the Company shall be entitled to recover reasonable costs and attorneys fees in connection therewith. Executive further agrees that no bond or other security shall be required in obtaining such equitable relief, nor will proof of actual
damages be required for such equitable relief.
(g) Tolling. In the event of a breach by Executive of any covenant
set forth in this Section 5, the period of time applicable to such covenant shall be extended by the duration of any violation by Executive of such covenant.
6. Termination; Severance Payments; Etc.
(a) At-Will Employment. Executive and the Company agree that Executives employment is at-will and that, subject to
Section 6(d) below, either Executive or the Company may terminate Executives employment, at any time, with or without any cause, with no prior notice; provided however that each party shall remain bound by the terms and provisions
of this Agreement that survive the termination in accordance with Section 9(i).
(b) Termination By Company Without
Cause or by Executive With Good Reason; Accrued Obligations.
(i) If Executives employment with
the Company is terminated by the Company for any reason other than for Cause, death or Disability (as defined below) or if Executive resigns for Good Reason (a defined below), so long as Executive has signed (and at no time revokes) a Release
Agreement (as defined below), then, subject to Executive continuing to fulfill his obligations under Section 5 hereof, and following the expiration of any applicable revocation periods, Executive shall receive (and paid periodically in
accordance with the Companys normal payroll policies) continuing payments of Base Salary for a period equal to the lesser of: (x) six (6) months after such termination; and (y) the remainder of what would have been the
Employment Term ((x) or (y), as applicable, the Severance Period). The payments made or payable to Executive under this Section 6(b)(i) shall be hereinafter referred to as the Severance
(ii) If the Executive is terminated for any reason the Company shall pay
Executive, or, his estate, if applicable, (A) any portion of the Base Salary that has accrued but not been paid through the date of such termination, and (B) all accrued PTO, if any, expense and relocation reimbursements due to Executive
through the date of termination (if any) (collectively the Accrued Obligations).
(i) As used herein, Cause for the Company to terminate this Agreement shall mean:
(1) Executives indictment for, conviction of, or plea of guilty or nolo contendere, to a felony, a misdemeanor involving fraud or dishonesty, or any crime involving moral turpitude, (2) an act of personal dishonesty taken by
Executive in connection with his responsibilities hereunder or in connection with his position at the Company, (3) an act taken by Executive that constitutes willful misconduct or gross negligence in the performance of Executives duties,
(4) any breach by Executive of this Agreement, (5) Executives repeated and unexplained or unjustified absence from the Company, or (6) Executives failure to substantially perform his duties or comply with any written
reasonable directive from the Board, and, if such failure is curable, failure to cure such failure within ten (10) days after receipt of written notice thereof.
(ii) As used herein, Disability means Executive being unable to perform the principal
functions of his duties in a reasonable manner due to a physical or mental impairment, but only if such inability has lasted or is reasonably expected to last for at least sixty (60) consecutive calendar days or ninety (90) non-consecutive
calendar days of any twelve month (12) period and, whether Executive has a Disability will be determined by the Company.
(iii) As used herein, Good Reason for Executive to terminate this Agreement shall
mean any material breach by the Company of this Agreement, including its obligations to pay Executive his Base Salary, not cured by the Company in accordance with Section 6(d) below. In no event will Executive have Good Reason to
terminate the Agreement if he resigns more than three (3) months following the initial existence of the condition that constitutes Good Reason.
(d) Termination Process. Either party may terminate this Agreement during the Employment Term; provided,
however, that if such termination is by the Company for Cause or by Executive for Good Reason, the terminating party shall give the non-terminating party a written notice providing reasonable notice and detail of the alleged Cause or Good
Reason, as the case may be, and, if such Cause or Good Reason is curable, the non-terminating party shall have twenty-one (21) days following such notice to cure such Cause or Good Reason; provided further however, if the termination is
by the Executive without Good Reason, the Executive shall give the Company ninety (90) days prior notice of his termination or such shorter period as agreed to by the Company in its sole discretion (the Executive Notice
Period). Notwithstanding the foregoing, the Company shall not be required to give Executive the right to cure any act of Cause as set forth in Sections 6(c)(i)(1), (2), (3) or (6). If the Company
terminates Executives employment with Cause, it shall have no liability to Executive other than to pay him the Accrued Obligations.
(e) Release Agreement. The Companys obligation to make any of the Severance Payments contemplated herein shall be
conditioned upon the execution by Executive and the Company of a valid release agreement to be prepared by the Company, pursuant to which Executive shall release the Company, to the maximum extent permitted by law, from any and all claims he may
have against the Company that relate to or arise out of Executives employment or termination of employment, except for claims arising under the Release Agreement (the Release
Agreement). Executive shall forfeit all rights to the Severance Payments unless such Release Agreement is signed and delivered within twenty (20) days following the
Companys delivery of Release Agreement to Executive.
(f) Transition of Duties. In the event of a termination
of the Executive, Executive shall assist the Company in transitioning his duties to another person or person designated by the Company.
(g) Resignation from Boards and Offices. Executives termination of employment for any reason or for no reason
shall be deemed an automatic resignation by the Executive from all offices of the Company and its subsidiaries and from all other board of director or management positions with the Company and its subsidiaries.
(a) Executive represents that his performance of all the terms of this Agreement will not breach any agreement to keep in
confidence proprietary information acquired by him in confidence or in trust prior to or outside of his employment by the Company. Executive hereby represents and warrants that he has not entered into, and will not enter into, any oral or written
agreement in conflict herewith.
(b) Executive hereby represents that Executive is not subject to any other agreement that
Employee will violate by working with the Company or in the position for which the Company has hired Executive. Further, Executive represents that no conflict of interest or a breach of Executives fiduciary duties will result by working with
and performing duties for the Company.
(c) Executive further acknowledges and agrees that he has carefully read this
Agreement and that he has asked any questions needed for him to understand the terms, consequences and binding effect of this Agreement and fully understands it and that he has been provided an opportunity to seek the advice of legal counsel of his
choice before signing this Agreement.
(d) Executive further agrees during the Severance Period to provide a prompt
response to Company in the event Company requests information connected to Executives subsequent employment after ceasing to be an employee of Company.
(e) Executive represents and warrants that he is not currently involved, directly or indirectly, in any litigation as a
defendant or as a party subject to any counterclaims, nor is any such litigation threatened against Executive, directly or indirectly.
8. Background Verification. The Company has requested from an independent reviewer a complete background report with
respect to Executive. If the Board, in its sole discretion, is not satisfied with the contents of the background report, the Company may within a reasonable amount of time following receipt of such background report terminate the Employment Term
and, notwithstanding anything to the contrary set forth herein, Executive shall not be entitled to (i) any payments hereunder other than the Accrued Obligations and (ii) the Options shall immediately terminate and be of no further force
(a) Notices. All notices, requests, consents and other communications hereunder (i) shall be in writing,
(ii) shall be effective upon receipt, and (iii) shall be sufficient if delivered personally, electronically with receipt confirmation, or by mail, in each case addressed as follows:
If to the Company:
c/o Wexford Capital LP
Suite 602 East
777 South Flagler Drive
West Palm Beach, Florida 33401
Attn: Joseph Jacobs, Chairman of the Board of Directors of Famous Daves of America, Inc.
With a copy to:
Gray Plant Moody
500 IDS Center
80 South Eighth Street
Minneapolis, MN USA 55402
Attn: Ryan Palmer
If to Executive:
To Executives most recent residential address or otherwise known by the Company or any other address Executive may
provide to the Company in writing.
(b) Entire Agreement. This Agreement constitute the entire agreement by and
between the parties with respect to the subject matter contained herein and supersedes all prior agreements or understandings, oral or written, with respect to the subject matter contained herein. Notwithstanding the foregoing, Executive shall
remain subject to and bound by the Employee Confidentiality Agreement and the Company Policies.
Waivers; Etc. This Agreement may not be altered, amended or modified in any manner, nor may any of its provisions be waived, except by written amendment executed by the parties hereto that specifically states that they intended to alter, amend
or modify this Agreement. No provision of this Agreement may be waived by any party
hereto except by written waiver executed by the waiving party that specifically states that it intends to waive a right hereunder. Any such waiver, alteration, amendment or modification shall be
effective only in the specific instance and for the specific purpose for which it was given. No remedy herein conferred upon or reserved by a party is intended to be exclusive of any other available remedy, but each and every such remedy shall be
cumulative and in addition to every other remedy given under this Agreement or in connection with this Agreement and now or hereafter existing at law or in equity.
(d) Governing Law and Jurisdiction. Except as provided otherwise in Section 9(k), this Agreement shall be
construed and enforced in accordance with the laws of the State of Minnesota without regard to the principle of the conflict of laws. Any dispute arising in connection with this Agreement may be adjudicated by binding arbitration pursuant to the
rules of the American Arbitration Association, before a single arbitrator in Minneapolis, Minnesota except that the foregoing shall not preclude the Company or Executive from enforcing the award of the arbitrators in a state or Federal Court located
in the State of Minnesota, and each of the parties hereto consent to the jurisdiction of such Courts.
and Assigns. Neither this Agreement nor any rights or obligations hereunder are assignable by Executive. The Company shall have the right to assign its rights and obligations under this Agreement to any affiliate or successor of the Company.
This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executives death and (b) any successor of the Company. Any such successor of the Company (including
but not limited to any person or entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company) will be deemed substituted for the Company under
the terms of this Agreement for all purposes.
(f) Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY LAW,
THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS AMONG THEM RELATING TO THE SUBJECT MATTER OF THE TRANSACTIONS CONTEMPLATED HEREBY.
THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT OR WITH ANY ARBITRATOR AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE PARTIES HERETO ACKNOWLEDGE THAT (I) THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, (II) EACH HAS ALREADY RELIED ON THE WAIVER IN
ENTERING INTO THIS AGREEMENT AND (III) EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES AGREES THAT THE
PREVAILING PARTY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE ENTITLED TO RECOVER ITS REASONABLE FEES AND EXPENSES IN
CONNECTION THEREWITH, INCLUDING LEGAL FEES.
(g) Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same instrument.
(h) Severability. Executive acknowledges that the provisions, restrictions and time limitations contained in
Section 5 are reasonable and properly required for the adequate protection of the business of the Company and that in the event such restriction or limitation is deemed to be unreasonable by any court of competent jurisdiction, then
Executive agrees to submit to the reduction of said restriction and limitation to such as any such court may deem reasonable. If any particular provision of Section 5 shall be adjudicated to be invalid or unenforceable, such provision
shall be considered to be divisible with respect to scope, time and geographic area, and such lesser scope, time or geographic area, as a court of competent jurisdiction may determine to be reasonable, not arbitrary and not against public policy,
shall be effective, binding and enforceable against Executive. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and
effect without said provision.
(i) Survival. Any termination of Executives employment and any expiration or
termination of the Employment Term under this Agreement shall not affect the continuing operation and effect of Sections 5, 6 and 9 hereof, which shall continue in full force and effect with respect to the Company and its
successors and assigns and respect to Executive.
(j) Tax Withholding. All payments made pursuant to this Agreement
will be subject to withholding of applicable taxes.
(k) Internal Revenue Code Section 409(A). The intent of
the parties is that payments and benefits under the Agreement comply with or be exempt from Section 409A of the Code and the regulations and guidance promulgated thereunder (Section 409A) and, accordingly, to the
maximum extent permitted the Agreement shall be interpreted to be in compliance therewith or exempt therefrom. To the extent any such cash payment or continuing benefit payable upon Executives termination of employment is nonqualified deferred
compensation subject to Section 409A, then, only to the extent required by Section 409A, such payment or continuing benefit shall not commence until the date which is six (6) months after the date of separation from service, and any
previously scheduled payments shall be made in a lump sum (without interest) on that date. For purposes of Section 409A, the phrase termination of employment (or other words to that effect), as used in this Agreement, shall be
interpreted to mean separation from service as defined under Section 409A.
(l) Golden Parachute
Limitation (Sec. 280G). Notwithstanding anything to the contrary contained herein, if any payments or benefits provided under this Agreement constitute parachute payments within the meaning of Section 280G of the Code (the
Parachute Payments) and such Parachute Payments are subject to the excise tax imposed by Section 4999 of the Code or nondeductible under Code Section 280G
(Section 280G) , then the Parachute Payments shall be reduced to an amount such that the aggregate of the Parachute Payments does not exceed 2.99 times the base amount, as defined in Section 280G, provided
that the foregoing reduction shall not take place if, prior to the date of the change in ownership or control of the Company, the Parachute Payments shall have been approved in a vote satisfying the requirements of Section 280G(b)(5) of the
Code by persons who, immediately before the change in ownership or control, own more than seventy-five (75%) of the voting power of all outstanding stock of the Company.
(m) Section Headings. The headings of the sections and subsections of this Agreement are inserted for convenience only
and shall not be deemed to constitute a part thereof, affect the meaning or interpretation of this Agreement or of any term or provision hereof.
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IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the
date first set forth above.
|FAMOUS DAVES OF AMERICA, INC.
/s/ Doug Renegar
|Name: DEXTER NEWMAN
Executive will retain an ownership interest in FFD, Inc. and each of its affiliates and will continue to serve on FFD, Inc.s board of
directors. In addition, Executive will participate in the operations of FFD, Inc., for a period not to extend past December 31, 2016, to the extent necessary to transition his former responsibilities to new management.