Document:

exhibit10-2_061009.htm

    EXHIBIT
10.2

    
       

       

      LIQUIDATION
SERVICES AGREEMENT

       

      
 

      This Liquidation Services Agreement
(this “Agreement”) between WENDY’S/ARBY’S GROUP, INC., a Delaware corporation
(the “Company”), and TRIAN FUND MANAGEMENT, L.P., a Delaware limited partnership
(“Trian”), is entered into as of the 10th day of June, 2009.

      

      WHEREAS, the Company has certain
investments that are not related to its core restaurant business, which
investments are set forth on Schedule I attached hereto (such investments being
referred to herein collectively as the “Legacy Assets”);

      

      WHEREAS,
the Company has determined to focus its business as a “pure play” restaurant
company;

      

      WHEREAS,
Trian has significant expertise in the purchase and sale of assets of the type
comprising the Legacy Assets;

      

      WHEREAS,
the Company has requested the assistance of Trian in connection with the sale,
liquidation or other disposition of the Legacy Assets in order to deploy the
proceeds therefrom in its business; and

      

      WHEREAS,
Trian is willing to provide such assistance on the terms and conditions set
forth in this Agreement.

      

      In
consideration of the mutual covenants contained herein, the parties hereto
hereby agree as follows:

      

      1.           Term;
Services.  For the period commencing on the date hereof and ending
upon the earlier of (i) such date as all of the Legacy Assets shall have been
sold, liquidated or otherwise disposed of and (ii) the date (which shall not be
earlier than June 30, 2011) on which the Company shall notify Trian that it is
terminating this Agreement (the “Term”), Trian shall use its reasonable best
efforts to assist the Company in the sale, liquidation or other disposition of
the Legacy Assets.  Without limiting the generality of the foregoing,
Trian shall use its reasonable best efforts to:

      

      a.           source
and identify opportunities to sell, liquidate or otherwise dispose of the Legacy
Assets;

      

      b.           negotiate
on the Company’s behalf (subject to final approval by the Company) the terms and
conditions of any such sale, liquidation or other disposition of any or all of
the Legacy Assets in order to maximize the proceeds thereof to the
Company;

      

      c.           advise
and consult with management of the Company regarding the sale, liquidation or
other disposition of the Legacy Assets; and

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      d.           provide
such other services in connection with the sale, liquidation or other
disposition of the Legacy Assets as management of the Company shall reasonably
request from time to time.

      

      2.           Quarterly
Reports.  Trian shall report to the Company from time to time, and in
any event, no less frequently than once each fiscal quarter during the Term, as
to its efforts and progress made with respect to the sale, liquidation or other
disposition of the Legacy Assets.

      

      3.           Fees.  The
Company shall pay to Trian a one-time fee for its services hereunder (including,
without limitation, any services rendered pursuant to Section 1(d) hereof)
during the Term of $900,000, which fee shall be payable in cash in installments
as follows:  (i) $450,000 on the date hereof and (ii) $450,000 on the
earlier of (x) June 30, 2010 and (y) the expiration of the Term.  In
the event that any or all of the Legacy Assets are sold, liquidated or otherwise
disposed of during the Term or, in the event that Trian shall have been
providing substantial assistance to the Company hereunder in connection with the
sale of any one or more of the Legacy Assets during the Term, then in the case
of the sale of such Legacy Asset or Legacy Assets during the six-month period
following the expiration of the Term, in any case, for aggregate net proceeds to
the Company in excess of $36,607,000 (the “Target Amount”), then the Company
shall pay to Trian in cash a success fee equal to 10% of the aggregate net
proceeds in excess of the Target Amount.

      

      4.           Limitation
of Liability; Indemnification.  (a) Trian shall have no liability with
respect to, and shall not be obligated to indemnify and hold harmless the
Company, or its affiliates, officers, directors, employees, agents or other
representatives, from or against any cost, loss, expense, damage or liability
arising out of or otherwise in respect of the performance by Trian of the
services hereunder; provided that Trian shall indemnify and hold harmless the
Company and its affiliates, officers, directors, employees, agents and other
representatives of the Company from and against any such cost, loss, expense,
damage or liability resulting from the gross negligence, willful misconduct or
fraud of Trian or any of its officers, employees, partners, members or
agents.  The Company shall indemnify and hold harmless Trian, its
affiliates, officers, directors, employees, agents or other representatives from
and against any cost, loss, expense, damage or liability arising out of or
otherwise in respect of the performance by Trian of the services hereunder other
than any such cost, loss, expense, damage or liability resulting from the gross
negligence, willful misconduct or fraud of Trian or any of its officers,
employees, partners, members or agents.

      

      (b)           Notwithstanding
the terms of any indemnification agreement between the Company and those persons
who will be providing services to the Company under this Agreement (each an
“Indemnification Agreement”), each such Indemnification Agreement shall continue
in full force and effect with respect to the services provided hereunder subject
to thee exclusions set forth in clause (a) above.  The indemnification
pursuant to the Indemnification Agreements shall not be deemed exclusive of any
other rights to which such persons may be entitled under the Company’s
Certificate of Incorporation or By-laws or under any other agreement, contract
of insurance, vote of stockholders or disinterested directors, or otherwise, or
of the broader power of the Company to indemnify an agent of the company as
authorized by Delaware law.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      5.           Independent
Contractor.  Employees of Trian engaged in performing the services
hereunder shall be considered to be providing services to the Company as its
consultants.  Under no circumstances shall they be considered to be
employees of the Company or any of its subsidiaries.  In performing
the services under this Agreement, Trian shall be an independent contractor and
neither party hereto shall be deemed to be an agent, partner or co-venturer of
the other due to the terms and provisions of this Agreement.  For the
avoidance of doubt, neither Trian nor any of its employees, partners, officers
or agents shall have any right, power or authority to bind the Company in any
manner whatsoever.

      

      6.           Entire
Agreement.  This Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof.

      

      7.           Notices.  Any
notice made or given in connection with this Agreement shall be in writing and
shall be deemed to have been duly given when delivered by hand or facsimile or
five days after mailed by certified mail, return receipt requested, as
follows:

      

      To the
Company at:

      

      Wendy’s/Arby’s
Group, Inc.

      1155
Perimeter Center West

      Suite
1200

      Atlanta,
Georgia 30338

      Attn:  General
Counsel

      

      To Trian
at:

      

      Trian
Fund Management, L.P.

      280 Park
Avenue, 41st
Floor

      New York,
New York 10017

      Attn:  Chief
Legal Officer

      

      8.           Waivers
and Amendments.  No provision of this Agreement may be amended,
modified, waived or discharged except as agreed to in writing by the
parties.  The failure of a party to insist upon strict adherence to
any term of this Agreement on any occasion shall not be considered a waiver
thereof or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

      

      9.           Successors
and Assigns.  The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties and their respective successors and
permitted assigns.  No party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the prior
written consent of the other party.  Notwithstanding the foregoing,
the Company (or its permitted successive assignees or transferees hereunder) may
assign or transfer this Agreement as a whole without consent to an entity that
succeeds to all or substantially all of the business or assets of the
Company.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      10.           No
Third-Party Beneficiaries.  The persons that will be providing
services to the Company pursuant to this Agreement shall be deemed to be
third-party beneficiaries of the provisions set forth in Section 4 of this
Agreement.  Except as provided in the preceding sentence, nothing in
this Agreement shall confer any rights upon any person that is not a party or a
successor or permitted assignee of a party to this Agreement.

      

      11.           Governing
Law.  Notwithstanding the place where this Agreement may be executed
by either of the parties hereto, the parties expressly agree that all terms and
provisions hereof shall be governed by and construed in accordance with the
internal laws of the State of New York applicable to contracts made and wholly
performed, and to transactions wholly consummated, within that
State.

      

      12.           Arbitration.  Any
dispute, controversy or claim arising out of or relating to this Agreement, or
the breach thereof, that the parties are not able to resolve after good faith
efforts over a period of 15 days shall be settled by a single arbitrator in an
arbitration conducted in the Borough of Manhattan, The City of New York, and
administered by the American Arbitration Association (the
“AAA”).  Such arbitration shall be under the Commercial Arbitration
Rules of the AAA and judgment on the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof.  Each party shall be
responsible for its own fees and costs associated with such
arbitration.

      

      13.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
instrument.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Agreed to
and accepted as of the 10th day of June, 2009.

      

      WENDY’S/ARBY’S GROUP,
INC.

      

       

      By: /s/ NILS H.
OKESON                             

                                                     Name:
Nils H. Okeson

                                                     Title:
SVP, General Counsel and Secretary

      

      

      

      TRIAN FUND MANAGEMENT,
L.P.

      

      By: Trian Fund Management GP,
LLC

      its General Partner

      

       

      By: /s/ EDWARD P.
GARDEN               

                                                     Name:
Edward P. Garden

                                                     Title:
Member

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
I

      

      
        
          
            	 
      	 	
                    
                    

                    Carrying

                    Value

                    (in
      000s)

                  	 
	
                    Investment Limited
    Partnerships

                  	 	 	 
	
                    JP
      Acquisition Fund IV, LP

                  	 	$	409	 
	
                    Catterton
      Partners V, LP - WAG

                  	 	 	514	 
	
                    Catterton
      Partners V, LP – Wendy’s

                  	 	 	5,138	 
	 
      	 	 	 	 
	
                    Total
      investment limited partnerships

                  	 	 	6,061	 
	 
      	 	 	 	 
	
                    Other Investments

                  	 	 	 	 
	
                    Jurlique
      International Pty. Ltd.

                  	 	 	-	 
	
                    Trumpet
      Feeder Ltd.

                  	 	 	4,470	 
	
                    Scientia
      Group, Inc. (280 BT)

                  	 	 	645	 
	 
      	 	 	 	 
	
                    Total
      other investments

                  	 	 	5,115	 
	 
      	 	 	 	 
	 
      	 	 	 	 
	
                    DFR
      Note Receivable, Long Term

                  	 	 	25,431	 
	 
      	 	 	 	 
	
                    Total
      Legacy Assets

                  	 	$	36,607exhibit10-3_061009.htm

    EXHIBIT
10.3

     

    

      WITHDRAWAL
AGREEMENT

      

      This Withdrawal Agreement (this
“Agreement”) between TCMG-MA, LLC (the “Investor”), an entity wholly owned and
controlled by WENDY’S/ARBY’S GROUP, INC., a Delaware corporation (the
“Company”), and TRIAN FUND MANAGEMENT, L.P., a Delaware limited partnership (the
“Investment Manager”), is entered into as of the 10th day of June,
2009.

      

      WHEREAS, the Investor and the
Investment Manager are parties to that certain Amended and Restated Investment
Management Agreement dated as of April 30, 2007 (the “Investment Management
Agreement”);

      

      WHEREAS, the Investor has maintained
the Account since December 1, 2005 (the “Contribution Date”);

      

      WHEREAS, the Investor pays a Management
Fee of 2% per annum on the Account balance and is obligated to pay certain
performance fees under specified circumstances;

      

      WHEREAS, pursuant to the Investment
Management Agreement, the Investor is not permitted to withdraw any capital from
the Account prior to December 31, 2010 (the “Lock-Up Period”);

      

      WHEREAS,
subsequent to the Contribution Date, the Company determined to focus its
business as a “pure play” restaurant company and, accordingly, the Investor has
requested the withdrawal of all of its capital in the Account and the
termination of the Investment Management Agreement prior to the expiration of
the Lock-Up Period in order to deploy such capital in the Company’s business;
and

      

      WHEREAS,
the Investment Manager is willing to permit such withdrawal on the terms and
conditions set forth in this Agreement.

      

      In
consideration of the mutual covenants contained herein, the parties hereto
hereby agree as follows:

      

      1.           All
capitalized terms used and not otherwise defined herein shall have the
respective meanings ascribed thereto in the Investment Management
Agreement.

      

      2.           Anything
contained in the Investment Management Agreement to the contrary
notwithstanding, the Investor shall be permitted to withdraw (the “Early
Withdrawal”) all of the capital in the Account effective no later than June 26,
2009 (such date, as may be mutually agreed upon by the Investor and the
Investment Manager on or prior to June 26, 2009, being referred to herein as the
“Early Withdrawal Date”), in accordance with the terms of this
Agreement.  The Early Withdrawal shall be subject to the payment by
the Investor to the Investment Manager of an early withdrawal fee in the amount
of $5,500,000 (the “Withdrawal Fee”).  The parties agree that the
Investment Manager shall transfer the Withdrawal Fee from the Account to the
Investment Manager on the Early Withdrawal Date.  The capital
remaining in the

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Account
after the payment of the Withdrawal Fee and after giving effect to the In-Kind
Distribution (as defined below) is referred to herein as the “Withdrawal
Proceeds”.

      

      3.           Payments
and distributions hereunder shall be made as follows:

      

      (a)           Subject
to any legal or regulatory restrictions, on or prior to the Early Withdrawal
Date, the Investment Manager may distribute in kind to the Investor (the
“In-Kind Distribution”) certain securities held in the Account and mutually
agreed upon with the Investor (the “In-Kind Securities”).  The In-Kind
Securities shall be marketable securities, free and clear of all liens and other
encumbrances, including, without limitation, any restrictions on
transfer.

      

      (b)           The
Investment Manager shall deliver the Withdrawal Proceeds to the Investor in cash
on the Early Withdrawal Date without any reduction, reserve, hold back or
set-off.

      

      (c)           All
cash payments and In-Kind Distributions hereunder shall be paid by wire transfer
of immediately available funds or by delivery of securities through DTC to the
accounts specified in writing by the Investor.

      

      4.           The
Investment Manager represents and warrants to the Investor that, as of the date
hereof, it has not permitted early withdrawal or redemption of any capital
from either Trian Partners, L.P. or Trian Partners, Ltd. (together, the
"Trian Funds") by any Relevant Investor on more favorable fee terms than
those set forth in this Agreement.  The Investment Manager agrees that
if, on or prior to the date hereof, any more favorable withdrawal fee terms have
been afforded to any Relevant Investor with respect to any capital invested
in any of the Trian Funds, then (i) the Investment Manager will promptly
notify the Investor in writing of such more favorable fee terms (without
disclosing the identity of the Relevant Investor) and (ii) the more favorable
fee terms shall be effective retroactively with respect to the
Investor.

      

      5.           The
Investor acknowledges that as of the date hereof the Account holds an interest
in a Segregated Sub-Account related to Farrell Sports Concepts, Inc., a
Segregated Investment.  The Investment Manager represents and warrants
that such interest had a fair value of approximately $13,000 as of April 30,
2009.  In order to provide the Investor with maximum liquidity on the
Early Withdrawal Date, the Investor hereby agrees and consents to the sale of
such interest for cash by the Account to Trian Partners GP, L.P., an entity
controlled by Nelson Peltz, Peter W. May and Edward P. Garden, on the Early
Withdrawal Date at the fair value on such date of sale, unless such Segregated
Investment is earlier disposed of by the Account.  For purposes of the
foregoing consent, the Investor hereby assumes that the fair value of such
interest on the Early Withdrawal Date will be equal to the fair value of such
interest on April 30, 2009, unless otherwise informed in writing by the
Investment Manager prior to the consummation of such sale.

      

      6.           Effective
on the Early Withdrawal Date, the Investment Manager consents and agrees to the
forgiveness and cancellation of each of (i) that certain Amended and Restated
Promissory Note dated September 24, 2008, in the principal amount of $30,000,000
made by the Company and payable to the Investor and (ii) that certain Promissory
Note dated December 26, 2008, in the principal amount of $17,000,000 made by the
Company and payable to the Investor.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      7.           Effective
from and after the Early Withdrawal Date and upon satisfaction in full of all
obligations provided in this Agreement, in consideration for the withdrawal
rights granted hereunder, the Investor does hereby release and forever discharge
the Investment Manager and each of its officers, members, employees and
affiliates from any and all claims, debts, liabilities, demands, obligations,
costs, expenses, actions and causes of action, of every nature, character and
description, known or unknown, other than any such claims, debts, liabilities,
demands, obligations, costs, expenses, actions and causes of action that may
arise as a result of such person’s gross negligence, willful misconduct or
fraud, which it owns or holds, or has at any time heretofore owned or held, or
may at any time own or hold, and agrees not to bring any suit, action or
proceeding, by reason of any matter, cause or thing whatsoever occurred, done,
omitted or suffered to be done with respect to, or arising out of, the
Investor’s investment in the Account and the management of the Account by the
Investment Manager.

      

      8.           For
the avoidance of doubt, except as specifically amended hereby, the Investment
Management Agreement shall remain in full force and effect until the Early
Withdrawal Date, after which, provided the obligations of the parties hereunder
have been fulfilled, the Investment Management Agreement shall immediately
terminate and be of no further force and effect with respect to the Investor and
the Investment Manager.

      

      9.           Any
notice made or given in connection with this Agreement shall be in writing and
shall be deemed to have been duly given when delivered by hand or facsimile or
five days after mailed by certified mail, return receipt requested, as
follows:

      

      To the
Investor at:

      

      TCMG-MA,
LLC

      1155
Perimeter Center West

      Suite
1200

      Atlanta,
Georgia 30338

      Attn:  General
Counsel

      

      To the
Investment Manager at:

      

      Trian
Fund Management, L.P.

      280 Park
Avenue, 41st
Floor

      New York,
New York 10017

      Attn:  Chief
Legal Officer

      

      10.           No
provision of this Agreement may be amended, modified, waived or discharged
except as agreed to in writing by the parties.  The failure of a party
to insist upon strict adherence to any term of this Agreement on any occasion
shall not be considered a waiver thereof or deprive that party of the right
thereafter to insist upon strict adherence to that term or any other term of
this Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      11.           This
Agreement, together with the Investment Management Agreement (as amended
hereby), constitutes the entire agreement between the parties hereto and
supersedes all other prior agreements or understandings between the parties
hereto pertaining to the subject matter hereof.

      

      12.           The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors and permitted assigns.  No
party may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement without the prior written consent of the other
party.

      

      13.           Notwithstanding
the place where this Agreement may be executed by either of the parties hereto,
the parties expressly agree that all terms and provisions hereof shall be
governed by and construed in accordance with the internal laws of the State of
New York applicable to contracts made and wholly performed, and to transactions
wholly consummated, within that State.

      

      14.           This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
instrument.

      

      Agreed to
and accepted as of the 10th day of June, 2009.

      

      TCMG-MA, LLC

      

      

      

      By: /s/ NILS H.
OKESON                             

                                                     Name:
Nils H. Okeson

                                                     Title:
SVP, General Counsel and Secretary

      

      

      

      TRIAN FUND MANAGEMENT,
L.P.

      

      By: Trian Fund Management GP,
LLC

      its General Partner

      

      

      

      By: /s/ EDWARD P.
GARDEN                     

                                                     Name:
Edward P. Garden

                                                     Title:
Member

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