Fat Brands, Inc appointed new CEO

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


As previously announced, Andrew A. Wiederhorn resigned as Chief Executive Officer of FAT Brands Inc. (the "Company") effective as of May 5, 2023, and agreed to accept a new position as outside consultant to the Company. On July 19, 2023, the Company entered into a written Separation, Cooperation, and Release Agreement (the "Separation Agreement") and Consulting Agreement (the "Consulting Agreement") with Mr. Wiederhorn.


Under the Separation Agreement, Mr. Wiederhorn is entitled to receive any accrued but unpaid base salary and the value of any accrued and unused vacation through his resignation date in accordance with his Employment Agreement, dated November 18, 2021 (the "Employment Agreement"). In addition, Mr. Wiederhorn is entitled to receive a final bonus under the Employment Agreement for such portion of 2023 through his separation date in the amount of $950,000. Mr. Wiederhorn's stock options will continue to vest after his resignation date since he will continue to provide services to the Company as a consultant. Under the Separation Agreement, Mr. Wiederhorn provided a general release of the Company, and the Company released Mr. Wiederhorn from certain claims related to his employment and separation from the Company, subject in each case to certain exceptions. Mr. Wiederhorn also agreed to assist and cooperate with the Company in transitioning his duties, as well as with any investigations, legal claims, or other matters related to his past employment. In addition, the Company agreed that, unless otherwise prohibited by applicable law, any attorney fees and expenses advanced to Mr. Wiederhorn by the Company to date in connection with the Company's pending litigation and governmental investigations are awarded to him under the Separation Agreement.


The Consulting Agreement provides that Mr. Wiederhorn will provide specified non-executive consulting services to the Company, including advice regarding corporate strategy, acquisitions, capital allocation, financing and restaurant/franchise operations. In consideration for such services, the Consulting Agreement provides that the Company will pay to Fog Cutter Consulting Corp., a company affiliated with Mr. Wiederhorn, an hourly fee of $1,850. In addition, while Mr. Wiederhorn remains a director of the Company, he will receive standard Board fees as a non-employee director. The Consulting Agreement also contains customary confidentiality obligations by Mr. Wiederhorn and an assignment to the Company of intellectual property developed by Mr. Wiederhorn in the course of providing consulting services to the Company.


The foregoing descriptions of the Separation Agreement and Consulting Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of such agreements, which are filed herewith as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by this reference.