Document:

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                                                                   EXHIBIT 10.77

             GUARANTY OF LEASE FOR THE METRIS MINNETONKA BUILDING
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                                    GUARANTY
                                    --------

         This Guaranty is made by Metris Companies, Inc., a Delaware corporation
                                  -----------------------
(individually and collectively, "Guarantor") to and for the benefit of Opus
Northwest, L.L.C., a Delaware limited liability company, its successors and
assigns ("Landlord"), with respect to that Lease Agreement dated March 29, 1999,
as amended from time to time (the "Lease") between Landlord and METRIS DIRECT,
INC., a Delaware corporation ("Tenant") for the premises located in the Phase II
Building of Crescent Ridge, Minnetonka, Minnesota (the "Premises"). Landlord is
unwilling to enter into the Lease unless Guarantor executes and delivers this
Guaranty and Guarantor is willing, as the parent company of Tenant and a direct
recipient of the benefits of the Lease, to enter into this Guaranty in order to
induce Landlord to enter into the Lease.

         Therefore, in consideration of Landlord entering into the lease,
Guarantor agrees as follows:

         1.    Guarantor jointly and severally, unconditionally, absolutely and
irrevocably guarantees and promises (a) to pay to landlord, or order, any and
all amounts, including, without limitation, Rent, as defined in the Lease, late
charges, default interest, damages and all other amounts, costs, fees, expenses
and charges of any kind or type whatsoever, which are payable by Tenant (or its
successor and assigns) under the Lease, and (b) the truthfulness and accuracy of
all representations, warranties and certifications of Tenant, the satisfaction
of all conditions by Tenant and the full and timely performance, and observance
of all obligations to be performed, and observed by Tenant (or its successors
and assigns), under or pursuant to the Lease (the "Obligations").

         2.    The obligation of each Guarantor is primary, joint and several
and independent of the obligation of any and every other Guarantor or of Tenant,
and a separate action or actions may be brought and executed against any one or
more Guarantor, whether or not such action is brought against Tenant or any
other Guarantor and whether or not Tenant or any other Guarantor be jointed in
such action or actions. This Guaranty is entered into by each of the individuals
included to the term "Guarantor" on behalf of his or her community, if any, and
as a community obligation as well as individually and as the individual
obligation of each and may be enforced against the community property and
separate property of each. This Guaranty shall apply to the parties hereto and
their successors and assigns according to the context hereof and without regard
to the number or gender of words or expressions used herein.

         3.    This is an absolute and unconditional guaranty of payment and
performance and not of collection and Guarantor unconditionally (a) waives any
requirement that Landlord first make demand upon, or seek to enforce or exhaust
remedies against, Tenant or any other person or entity (including any other
Guarantor) or any of the collateral or property of Tenant or such other person
or entity before demanding payment from, or seeking to enforce this Guaranty
against, Guarantor;
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(b) waives and agrees not to assert any and all rights, benefits and defenses
which might otherwise be available under the provisions of Minnesota laws,
statutes or rules which might operate, contrary to Guarantor's agreements in
this Guaranty, to limit Guarantor's liability under, or the enforcement of, this
Guaranty; (c) covenants that this Guaranty will not be discharged until all of
the Obligations are fully satisfied; (d) agrees that this Guaranty shall remain
in full effect without regard to, and shall not be affected or impaired by, any
invalidity, irregularity or unenforceability in whole or in part of the Lease,
or any limitation of the liability of Tenant or Guarantor thereunder, or any
limitation on the method or terms of payment thereunder which may now or
hereafter be caused or imposed in any manner whatsoever; and (e) waives notice
of acceptance of this Guaranty, notice of defaults under the Lease, presentment,
protest, demand and diligence.

         4.    This Guaranty is a continuing guaranty, and the obligations,
undertakings and conditions to be performed or observed by Guarantor under this
Guaranty shall not be affected or impaired by reason of the happening from time
to time of the following with respect to the Lease, all without notice to, or
the further consent of, Guarantor, and Guarantor hereby waives any and all
defenses arising by reason of, (a) the waiver by Landlord of the observance or
performance by Tenant, Guarantor or any one or more of them of any of the
obligations, undertakings, conditions or other provisions contained in the
Lease, except to the extent of such waiver; (b) the extension, in whole or in
part, of the time for payment of any amount owing or payable under the lease;
(c) the modification or amendment (whether material or otherwise) of any of the
obligations of Tenant under, or any other provisions of the Lease, except to the
extent of such modification or amendment; (d) the taking or the omission of any
of the actions referred to in the Lease (including, without limitation, the
giving of any consent referred to therein); (e) any failure, omission, delay or
lack on the part of Landlord to enforce, assert or exercise any provision of the
Lease, including any right, power or remedy conferred on Landlord in the Lease
or any action on the part of Landlord granting indulgence or extension in any
form; (f) the assignment to or assumption by any third party of any or all of
the rights or obligations of Tenant under the Lease; (g) the release or
discharge of Tenant from the performance or observance of or the impairment,
limitation or modification of any obligation, undertaking or condition to be
performed by Tenant under the Lease by operation of law, including any rejection
or disaffirmance of the Lease in any bankruptcy or similar proceedings; (h) the
receipt and acceptance by Landlord or any other person or entity of notes,
checks or other instruments for the payment of money and extensions and renewals
thereof; (i) any action, inaction or election of remedies by Landlord which
results in any impairment or destruction of any subrogation rights of Guarantor,
or any rights of Guarantor to proceed against any other person or entity for
reimbursement, (j) any setoff, defense, counterclaim, abatement, recoupment,
reduction, change in law or any other event or circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor,
indemnitor or surety under the laws of the State of Minnesota or any other
jurisdiction; (k) the termination or renewal of any of the Obligations or any
other provision thereof, and (l) any merger, reorganization, structure change,
ownership change or change in the name or any other change of Tenant or
Guarantor.

         5.    Guarantor represents and warrants to Landlord that: (a) Neither
the execution nor delivery of this Guaranty nor fulfillment of nor compliance
with the terms and provisions hereof will

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conflict with, or result in a breach of the terms or conditions of, or
constitute a default under, or result in the creation of any lien, charge or
encumbrance upon any property or assets of Guarantor under any agreement or
instrument to which Guarantor is now a party or by which Guarantor may be bound,
which conflict, breach, default, lien, charge or encumbrance could result in a
material adverse change in the financial condition of Guarantor; (b) No further
consents, approvals or authorizations are required for the execution and
delivery of this Guaranty by Guarantor or for Guarantor's compliance with the
terms and provisions of this Guaranty; (c) This Guaranty is the legal, valid and
binding agreement of Guarantor and is enforceable against Guarantor in
accordance with its terms; (d) Guarantor has the full power, authority, capacity
and legal right to execute and deliver this Guaranty, and, to the extent
Guarantor is a corporation or partnership, the parties executing this Guaranty
on behalf of Guarantor are fully authorized and directed to execute the same to
bind Guarantor; (e) Guarantor is not a "foreign corporation," "foreign
partnership," "foreign trust," or "foreign estate," as those terms are defined
in the U.S. Internal Revenue Code and the regulations promulgated thereunder;
(f) During the term of this Guaranty, Guarantor will not transfer or dispose of
any material part of its assets except in the ordinary course of business for
full and fair consideration and reasonably equivalent value; and (g) the Lease
is conclusively presumed signed in reliance on this Guaranty and the assumption
by Guarantor of its obligations under this Guaranty results in direct financial
benefit to Guarantor.

         6.    This Guaranty shall commence upon execution and delivery of the
Lease and shall continue in full force and effect until all of the Obligations
are duly, finally and permanently paid, performed and discharged and are not
subject to any right of extension by Tenant. The Obligations shall not be
considered fully paid, performed and discharged unless and until all payments by
Tenant to Landlord are no longer subject to any right on the part of any person
whomsoever, including but not limited to Tenant, Tenant as a debtor-in-
possession and/or any trustee in bankruptcy, to disgorge such payments or seek
to recoup the amount of such payments or any part thereof. The foregoing shall
include, by way of example and not by way of limitation, all rights to recover
preferences voidable under Title 11 of the United States Bankruptcy Code, 11
U.S.C. Sec. 101 et seq., as amended (the "Code"). In the event that any such
payments by Tenant to Landlord are disgorged after the making thereof, in whole
or in part, or settled without litigation, to the extent of such disgorgement or
settlement, Guarantor shall be liable for the full amount Landlord is required
to repay plus interest, late charges, attorney's fees and any and all expenses
paid or incurred by Landlord in connection therewith.

         7.    Guarantor hereby unconditionally and irrevocably waives (a) any
right to participate in any security now or hereafter held by Landlord or in any
claim or remedy of Landlord or any other person against Tenant with respect to
obligations guaranteed hereby, (b) any statute of limitations affecting
Guarantor's liability hereunder, (c) all principles and provisions of law which
conflict with the terms of this Guaranty,(d) diligence, presentment, demand for
performance, notice of nonperformance, notice of intent to accelerate and
acceleration, notice of protest, notice of dishonor, notice of execution of the
Lease, notice of extension, renewal, alteration or amendment, notice of
acceptance of this Guaranty and all other notices whatsoever, and (e) any right
to prove or make any claim which competes with any proof or claim made by
Landlord in the event of Tenant's bankruptcy

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or insolvency, until Landlord's claim has been fully satisfied. In the event
that Guarantor shall have any claims against Tenant, any indebtedness of Tenant
now or hereafter held by Guarantor is hereby subordinated to the indebtedness of
Tenant to Landlord. Any such indebtedness of Tenant to Guarantor, if Landlord so
requests, shall be collected, enforced and received by Guarantor as trustee for
Landlord and be paid over to Landlord on account of the obligations guaranteed
hereby, but without reducing or affecting in any manner the liability of
Guarantor under the other provisions of this Guaranty.

         8.    It is not necessary for Landlord to inquire into the powers of
Tenant or its officers, directors, partners or agents acting or purporting to
act on its behalf, and Guarantor shall be liable for the obligations of Tenant
in accordance with their terms notwithstanding any lack of authorization or
defect in execution or delivery by Tenant.

         9.    In addition to the amounts guaranteed under this Guaranty,
Guarantor agrees to pay (i) all of Landlord's attorneys' fees and other costs
and expenses which may be incurred by Landlord in the enforcement of this
Guaranty and which may be incurred by Landlord as a consequence of any default
by Tenant under the Lease, and (ii) interest (including postpetition interest to
the extent a petition is filed by or against Tenant under the Code) at the lower
of 12% interest to the extent a petition is filed by or against Tenant under the
Code) at the lower of 12% interest to the extent a petition is filed by or
against Tenant under the Code) at the lower of 12% interest per annum or the
highest rate permitted by applicable law on any Obligations not paid when due.

         10.   Guarantor hereby agrees to defend, indemnify and hold harmless
Landlord from any loss, cause of action, claim, cost, expense or fee, including
but not limited to attorneys' fees, suffered or occasioned by the failure of
Tenant to satisfy its obligations under the Lease. The obligations of Guarantor
under this paragraph shall be independent, primary, joint and several
obligations of Guarantor. The agreement to indemnify, protect, defend and hold
harmless Landlord contained in this paragraph shall be enforceable
notwithstanding the invalidity or unenforceability of the Lease or the
invalidity or unenforceability of any other paragraph contained in this
Guaranty.

         11.   All moneys available to Landlord for application in payment or
reduction of the liabilities of Tenant under the Lease may be applied by
Landlord to the payment or reduction of such liabilities of Tenant, in such
manner, in such amounts and at such time or times as Landlord may elect.

         12.   This Guaranty shall be governed by the laws of the State of
Minnesota, without giving effect to conflict of laws principles. Guarantor
unconditionally and irrevocably consents and agrees that any legal action
brought under this Guaranty may be brought in any state court of the State of
Minnesota or any federal district court in Minnesota.

         13.   All of Landlord's rights and remedies under the Lease and this
Guaranty are intended to be distinct, separate and cumulative and no such right
and remedy is intended to be in exclusion of or a waiver of any of the others.

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         14.   This Guaranty is solely for the benefit of Landlord, its
successors and assigns, and is not intended to nor shall be deemed to be for the
benefit of any third party, including, without limitation, Tenant.

         15.   The terms "Landlord" and "Tenant" as used herein shall be deemed
to include each party's respective successors and assigns. The assignment by
Landlord of the lease, and/or the avails and proceeds thereof, made either with
or without notice to Guarantor, shall in no manner release Guarantor from any
liability as Guarantor hereunder Landlord's consent to any assignment(s) by
Tenant, unless otherwise agreed, made either with or without notice to
Guarantor, shall in no manner release Guarantor from any liability as Guarantor
hereunder. Landlord's consent to a release of Guarantor in connection with an
approved assignment or sublease shall not be unreasonably withheld.

         16.   If any provision of this Guaranty is unenforceable, the
enforceability of the other provisions shall not be affected and they shall
remain in full force and effect.

         DATED as of June 9, 1999.

                                        Metris Companies, Inc.

                                        By: /s/ Ronald Zebeck
                                            --------------------------------
                                            Name: Ronald Zebeck
                                                  --------------------------
                                            Title: President & CEO
                                                  --------------------------

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                                                                   EXHIBIT 10.63

                             EMPLOYMENT AGREEMENT
                     dated as of December 8, 2000 between
                   AFC Enterprises, Inc. (the "Company") and
                            Jon Luther ("Employee")

         WHEREAS, the Company desires to continue the employment of Employee and
to enter into an agreement embodying the terms of such employment; and

         WHEREAS, Employee desires to accept such employment and to enter into
such agreement;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the parties
agree as follows:

         1.    Term of Agreement
               -----------------

         This Agreement shall be effective as of the date hereof and, unless
earlier terminated pursuant to Section 8 hereof, shall be for an initial term of
two (2) years (the "Term"). The Term of this Agreement and Employee's employment
hereunder will automatically be extended for an additional one-year period
following the expiration of each year of employment hereunder (the "Renewal
Date"), without further action by Employee or the Company. Such automatic
one-year renewal shall continue from year to year unless and until either the
Company or Employee gives to the other written notice not less than thirty (30)
days prior to the applicable Renewal Date of its decision not to renew for an
additional one year.

         2.   Employment
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              2.01 Position. Employee shall serve as President of Popeyes
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Chicken & Biscuits, a division of the Company, and shall perform such duties
consistent with his position as may be assigned to him from time to time by the
Chief Executive Officer or the Board of Directors of the Company.

              2.02  Time and Efforts.  Employee, so long as he is employed
                    ----------------
hereunder, shall devote his full business time and attention to the services
required of him hereunder, except as otherwise agreed and for vacation time and
reasonable periods of absence due to sickness or personal injury, and shall use
his best efforts, judgment and energy to perform, improve and advance the
business and interests of the Company in a manner consistent with the duties of
his position.

         3.   Base Salary.
              -----------

              Beginning on the date hereof and continuing during the term
hereof,

Employee's Initials:
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the Company shall pay Employee, in equal installments no less frequently than
monthly, a base salary at the rate of no less than Three Hundred Eighteen
Thousand Dollars ($318,000.00 U.S.) per annum (the "Base Salary"). The
Employee's Base Salary shall be reviewed by the Chief Executive Officer or the
Board of Directors of the Company on an annual basis.

         4.   Incentive Pay.
              --------------

              4.01  Annual Plan. The Board of Directors of the Company, acting
                    -----------
in its sole discretion, shall annually, at or prior to the beginning of each
fiscal year of the Company, approve an annual incentive plan (the "Annual
Incentive Plan") for the senior officers of the Company, including Employee,
which Plan shall contain such terms and provisions as the Board of Directors
shall determine. Any amounts payable to Employee pursuant to the Annual
Incentive Plan is hereinafter referred to as "Incentive Pay".

              4.02  Target Incentive Pay.  The target Incentive Pay ("Target
                    --------------------
Incentive Pay") for Employee for the fiscal year of the Company ending in 2000
shall be as follows: $200,000.00

provided, however, that the Target Incentive Pay with respect to any fiscal year
is subject to, and may be modified by, the Annual Incentive Plan approved by the
Board of Directors pursuant to Section 4.01 above and this Section 4.02 shall be
read accordingly. After 2000, the Target Incentive Pay for Employee will be set
by the Chief Executive Officer or the Board of Directors of the Company for each
fiscal year and will be included in the Annual Incentive Plan for such year.

              4.03  Payment of Incentive Pay. If Employee is entitled to payment
                    ------------------------
of any Incentive Pay for any fiscal year, an accounting will be furnished and
payment will be made to Employee as set forth in the Annual Incentive Plan, but
in no event later than 105 days following the end of each fiscal year.

              4.04  Termination of Employment. If Employee's employment
                    -------------------------
hereunder shall terminate other than pursuant to Sections 8.03 or 8.04, the
Employee shall receive, at the time contemplated by the Annual Incentive Plan,
such Incentive Pay, if any, to which he would have been entitled under the terms
of the Annual Incentive Plan had Employee remained in the employ of the Company
for the entire fiscal year in which such termination occurs. If Employee's
employment hereunder shall terminate pursuant to (a) Section 8.03, the
provisions of Section 8.03 shall determine the amount of Incentive Pay payable
to Employee; or (b) Section 8.04, no Incentive Pay shall be payable to Employee
after such termination.

         5.   Stock Options.
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              5.01  Stock Options. The Company has heretofore granted to
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Employee

Employee's Initials:
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certain nonqualified stock options to purchase shares of the Company's common
stock. As part of the Company's compensation strategy, the Company intends to
grant additional stock options in the future based upon Employee's performance
as determined in the sole discretion of the Board of Directors of the Company.

              5.02  Shareholders' Agreement. The Employee has agreed to be bound
                    -----------------------
by the terms of the shareholders' agreements (the "Shareholders' Agreements")
heretofore executed by Employee or identified in the stock option agreements
heretofore granted to Employee, copies of which are on file in the records of
the Company, which Shareholders' Agreements shall be applicable to all shares of
common stock issued to Employee upon the exercise of any stock options granted
to Employee before or after the date hereof.

         6.   Employee Benefits.
              -----------------

              6.01  Executive Flex Perk. Employee shall be entitled to
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participate in the Company's Executive Flex Perk Plan subject to the terms,
conditions and limitations thereof. Subject to Section 6.07 below and the terms
of the Plan, the Company will pay to, or for the benefit of Employee, an amount
equal to $15,000 per year payable in the same manner as Employee's Base Salary
is paid.

              6.02  Life Insurance. Subject to Section 6.07 below, in the event
                    --------------
of the death of Employee during the term of his employment with the Company and
after the Company first obtains the Life Insurance Policy described herein, the
Employee's named beneficiary shall be entitled to receive an amount equal to
three (3) times Employee's Base Salary as of the date hereof (the "Death
Benefit") payable solely from, and to the extent of, the death benefit proceeds
payable under such Life Insurance Policy.

                    (a) As soon as practicable after the execution of this
Agreement, the Company will procure and maintain on the life of Employee life
insurance protection in an amount not less than the Death Benefit determined
based upon the Base Salary in effect as of the date hereof (any and all such
policies are referred to herein, collectively, as the "Life Insurance Policy").
The Company may, at its option, purchase term or permanent life insurance
protection on Employee. Notwithstanding the foregoing, if the premiums for the
Life Insurance Policy on Employee shall exceed regular, non-rated premiums, the
Company may, but shall have no obligation to, fund such excess premium payments.
In the event the Company determines not to fund such excess it shall promptly
notify Employee and Employee may, at his option, elect to pay the excess. If
Employee fails to pay such excess or if for any other reason the Company, after
reasonable efforts, is not able to obtain the Life Insurance Policy required
herein for Employee, then Employee shall not be entitled to any benefits
whatsoever under this Section 6.02 except as may otherwise be determined in the
discretion of the Company and set forth in writing. The Company shall have and
may exercise all ownership rights in such Life Insurance Policy, except as
provided in this Section 6.02.

Employee's Initials:
       JL
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                    (b) Upon issuance of the Life Insurance Policy, the Company
and Employee shall enter into an insurance agreement (the "Insurance Agreement")
which shall specify in detail the relative rights and obligations of the Company
and Employee with respect to the Life Insurance Policy including, but not
limited to, (i) obligations of the Company and the Employee with respect to the
payment of premiums, (ii) designation of beneficiaries, (iii) policy ownership
and the exercise of rights incident thereto and (iv) the relative rights of
Employee and the Company upon Employee's termination of employment.

                    (c) Except as otherwise provided in this Agreement or the
Insurance Agreement, the obligations of the Company and Employee under this
Section 6.02 and the Insurance Agreement shall automatically terminate upon
Employee's termination of employment for any reason prior to his death.

               6.03 Disability Insurance.
                    --------------------

                    (a) The Company shall procure for Employee as soon as
practical after the date hereof and shall maintain in full force and effect
during the Term a Supplemental Disability Policy which will supplement the
benefits payable under any disability benefit provided to Employee by the
Company under its basic employee health care benefit program, so that, subject
to Section 6.07 below, with respect to a disability as defined in the
Supplemental Disability Policy occurring after the Company has obtained the
Supplemental Disability Policy, the total monthly disability benefit (the
"Disability Benefit") payable to Employee under all disability policies
maintained by the Company, after a maximum elimination period of ninety (90)
days, shall equal 70% of the sum of Employee's Base Compensation and Incentive
Pay for the year immediately preceding the year in which the termination for
Disability occurs.

                    (b) Notwithstanding anything herein to the contrary, if the
premiums for the Supplemental Disability Income Policy for Employee shall exceed
regular, non-rated premiums, the Company may, but shall have no obligation to,
fund such excess. In the event the Company determines not to fund such excess it
shall promptly notify Employee and Employee may, at his option, elect to pay the
excess. If Employee fails to pay such excess or if for any other reason the
Company, after reasonable efforts, is not able to obtain the Supplemental
Disability Income Policy required herein, then Employee shall not be entitled to
any Disability Benefit hereunder except as may otherwise be determined in the
discretion of the Company and set forth in writing.

               6.04 Executive Medical Benefit. Subject to Section 6.07, the
                    -------------------------
Company, at its expense, shall provide Employee with an annual physical
examination to be conducted by a physician or physicians as determined by the
Company, or by Employee with the approval of the Company.

Employee's Initials:
       JL
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               6.05 Other Benefits. Employee shall be provided additional
                    --------------
employee benefits, including health, accident and disability insurance under the
Company's regular and ongoing plans, policies and programs available, from time
to time, to senior officers of the Company, in accordance with the provisions of
such plans, policies and programs governing eligibility and participation;
provided, however, that such benefits may be modified, amended or rescinded by
the Board of Directors of the Company in its sole discretion.

               6.06 Vacation. Employee shall be entitled to four (4) weeks paid
                    --------
vacation each year during the term hereof. Any vacation not used in any year
shall not accrue for use in subsequent years and shall be forfeited as of the
end of such year.

               6.07 Paramount Provisions.
                    --------------------

                    (a) Notwithstanding anything in Sections 6.02 and 6.03 above
or any other provision of this Agreement to the contrary, if the Company has met
all of its obligations under this Agreement (and the Insurance Agreement, if
applicable) with respect to obtaining and maintaining in force (i) the Life
Insurance Policy described in Section 6.02 hereof on the life of Employee to
fund the Death Benefit or (ii) the Supplemental Disability Policy maintained for
Employee pursuant to Section 6.03 hereof to fund such Employee's Disability
Benefit, but all or any portion of the proceeds under any such policy are not
actually received by the Company for any reason whatsoever, including without
limitation the insolvency of the insurer or any misrepresentation made by
Employee in the application for such insurance, then the right of Employee or
his designated beneficiary to receive a Disability Benefit or a Death Benefit,
as the case may be, shall be reduced (but not below zero) by the amount by which
the Disability Benefit or Death Benefit otherwise payable exceeds the insurance
proceeds actually received.

                    (b) Anything in Sections 6.01, 6.02, 6.03, and 6.04 to the
contrary notwithstanding, the amount of the benefits provided for herein are
subject to reduction or other adjustment as shall be provided for in the plan or
insurance contract, as the case may be, pursuant to which such benefit is being
paid or as may be determined by the Chief Executive Officer or the Board of
Directors of the Company, provided that in no event shall any such adjustment
exceed the maximum benefit provided for herein. The initial amount of each such
benefit is set forth on Exhibit A, attached hereto, and such amounts may be
increased or decreased pursuant to the plan or insurance contract pursuant to
which such benefit is being paid or by the Chief Executive Officer or the Board
of Directors at any time or from time to time hereafter and the Employee will be
given written notice of any such change. Anything in this Agreement to the
contrary notwithstanding, the Chief Executive Officer or the Board of Directors
shall have full authority to make all determinations deemed necessary or
advisable for the administration of the benefits described in this Section 6.
Subject to Section 12.04, the good faith interpretation and construction by the
Chief Executive Officer or the Board of Directors of the

Employee's Initials:
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                                                                               5
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terms of this Section 6 or the benefit programs described herein shall be final,
conclusive and binding on Employee.

          7.  Business Expenses.
              ------------------

         All reasonable and customary business expenses incurred by Employee in
the performance of his duties hereunder shall be paid or reimbursed by the
Company in accordance with the Company's policies in effect, from time to time.

         8.   Termination of Employment.
              --------------------------

              8.01  Definitions. For purposes of this Section 8, the following
                    -----------
terms shall have the following meanings:

              (a)   Cause. The term "Cause" shall mean (i) Employee commits
                    -----
fraud or is convicted of a crime involving moral turpitude, (ii) Employee, in
carrying out her duties hereunder, has been guilty of gross neglect or gross
misconduct resulting in harm to the Company or any of its subsidiaries or
affiliates, (iii) Employee shall have failed to materially comply with the
policies of the Company or shall have refused to follow or comply with the duly
promulgated directives of the Chief Executive Officer or the Board of Directors
of the Company, (iv) Employee has breached any of the provisions of Section
10.02 through and including 10.04 or (v) Employee otherwise materially breaches
this Agreement.

              (b)   Disability. The term "Disability" shall mean the good faith
                    ----------
determination by the Chief Executive Officer or of the Board of Directors of the
Company that Employee has failed to or has been unable to perform his duties as
the result of any physical or mental disability for an aggregate of ninety (90)
calendar days.

              8.02  Termination upon Death or Disability. If Employee's
                    ------------------------------------
employment is terminated due to his death or Disability, the Company shall pay
to the estate of the Employee or to the Employee, as the case may be, within
fifteen (15) days following Employee's death or upon his termination in the
event of Disability, all amounts then payable to Employee pro rated through the
date of termination pursuant to Sections 3, 6.01, and 7, and the amount of any
accrued but unused vacation under Section 6.06 for the year in which such
termination occurs. In addition, the Company shall pay to Employee any Incentive
Pay payable pursuant to Section 4.04 hereof in accordance with the terms
thereof.

              8.03  Termination for other than Death or Disability or for Cause.
                    -----------------------------------------------------------
If Employee's employment is terminated by the Company other than (i) by reason
of Employee's death or Disability or (ii) for Cause, the Company shall pay or
provide to Employee, in lieu of all other amounts payable hereunder or benefits
to be provided hereunder the following: (a) a payment equal to the sum of one
(1) times Employee's Base Salary at the time of termination; (b) a payment equal
to one (1)

Employee's Initials:
       JL
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                                                                               6
<PAGE>

times Employee's Target Incentive Pay for the year in which such termination
occurs (or, if no Target Incentive Pay has been designated for such year, then
the Target Incentive Pay for the last year in which it was designated prior to
such termination); and (c) the acceleration of any unvested rights of Employee
under any stock options or other equity incentive programs such that they shall
immediately vest under the terms of such plans. As a condition precedent to the
requirement of Company to make such payments or grant such accelerated vesting,
Employee shall not be in breach of his obligations under Section 10 hereof and
Employee shall execute and deliver to Company a general release in favor of the
Company in substantially the same form as the general release then contained in
the latest Severance Agreement being used by the Company.

         Any payments required to be made under this Section 8.03 shall be made
to Employee, at the election of the Company, either within thirty (30) days
after the date of Employee's termination of employment or, at the Company's
election, in fifty-two (52) equal installments, payable at the same time and on
the same basis as was the payment of Employee's Base Salary prior to such
termination.

              8.04  Voluntary Termination by Employee or Termination for Cause.
                    ----------------------------------------------------------
Employee may terminate his employment hereunder at any time whatsoever, with or
without cause, upon thirty (30) days prior written notice to the Company. The
Company may terminate Employee's employment hereunder at any time without notice
for Cause. In the event Employee's employment is terminated voluntarily by
Employee or by the Company for Cause:

              (a)  The Company shall pay to Employee upon such termination all
amounts then due under sections 3, 4 (but only to the extent of earned but
unpaid Incentive Pay), 6, and 7, prorated, through the date of termination for
the year in which he is terminated; and

              (b)  The Company shall be under no obligation to make severance
payments to Employee or continue any benefits being provided to Employee beyond
the date of such termination.

         9.   Change of Control, Change in Responsibilities.
              ----------------------------------------------

         Upon the occurrence of both of the following events:

              (a)  The dissolution or liquidation of the Company, or a
reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the owners or all of the outstanding shares of
Common Stock immediately prior to such reorganization, merger or consolidation
own in the aggregate, directly and indirectly, less than 50% of the outstanding
shares of Common Stock of the Company or any other entity into which the Company
shall be merged or consolidated immediately following the consummation thereof,
or the sale, transfer or other disposition of all or substantially all of the
assets or more than 50% of the

Employee's Initials:
        JL
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                                                                               7
<PAGE>

then outstanding shares of Common Stock of the Company in a single transaction
or series of related transactions (a "Change in Control"); and

               (b)  Within one (1) year of such Change in Control there is a
termination of employment without cause or a material diminution of or change in
Employee's responsibilities or duties,

Employee may elect, in writing, within ninety (90) days following the occurrence
of such events, to terminate this Agreement and his employment with the Company
will terminate, effective thirty (30) days after the Company's receipt of such
notice. In such event Employee shall be deemed to have been terminated by the
Company other than for Cause and all amounts payable to Employee pursuant to
Section 8.03 shall become immediately due and payable.

               A Change in Control of the Company shall not be deemed to occur
by reason of any public offering of the Common Stock of the Company.

         Notwithstanding any other provision contained in this Agreement, if the
aggregate of the payments provided for in this Agreement which result from
Employee's election to terminate his employment under this Section 9 and the
other payments and benefits which the Employee has the right to receive from the
Company as a result thereof (the "Total Payments") would constitute a "parachute
payment," as defined in Section 280G(b)(2) of the Internal Revenue Code of 1986,
as amended (the "Code"), the Employee shall receive, instead of the Total
Payments, an increased amount (the "Gross Up Total") equal to the product of (x)
the Total Payments and (y) a fraction, the numerator of which is 1 and the
denominator of which is 1 minus the maximum effective combined tax rate with
respect to all federal, state, and local income taxes payable by the Employee
under Code Section 4999 (the "Excise Taxes"). It is the intention of this
provision that  the Gross Up Total minus the Excise Taxes shall equal the Total
Payments and this provision shall be read and interpreted accordingly.

               Except as expressly contemplated by this Agreement, or in any
other agreement referred to in Section 5 hereof, no merger, reorganization,
recapitalization, sale of stock, sale of assets or other change in the capital
structure of the Company or in the identity of the legal or beneficial owners of
the Company shall affect the rights or obligations of the Company or Employee
hereunder.

         10.   Confidentiality and Non-Competition.
               ------------------------------------

               10.01  Definitions. For purposes of this Section 10, the
                      -----------
following terms shall have the following meanings:

                     "Affiliate" means any corporation, limited liability
company, partnership or other entity of which the Company owns at least fifty
percent (50%)

Employee's Initials:
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                                                                               8
<PAGE>

of the outstanding equity and voting rights, directly or indirectly, through any
other corporation, limited liability company, partnership or other entity.

               "Businesses" means the businesses engaged in by the Company
directly or through its Affiliates immediately prior to termination of
employment.

               "Confidential Information" means information which does not rise
to the level of a Trade Secret, but is valuable to the Company or any Affiliate
and provided in confidence to Employee.

               "Proprietary Information" means, collectively, Trade Secrets and
Confidential Information.

               "Restricted Period" means the period commencing as of the date
hereof and ending on that date two years (2) year after the termination of
Employee's employment with the Company for any reason, whether voluntary or
involuntary.

               "Trade Secrets" means information which derives economic value,
actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use, and is the subject of efforts that are reasonable
under the circumstances to maintain its secrecy.

          10.02 Covenant Not-To-Disclose. The Company and Employee
                ------------------------
recognize that, during the course of Employee's employment with the Company, the
Company has disclosed and will continue to disclose to Employee Proprietary
Information concerning the Company and the Affiliates, their products, their
franchisees, their services and other matters concerning their Businesses, all
of which constitute valuable assets of the Company and the Affiliates. The
Company and Employee further acknowledge that the Company has, and will, invest
considerable amounts of time, effort and corporate resources in developing such
valuable assets and that disclosure by Employee of such assets to the public
shall cause irreparable harm, damage and loss to the Company and the Affiliates.
Accordingly, Employee acknowledges and agrees:

               (a) that the Proprietary Information is and shall remain the
exclusive property of the Company (or the applicable Affiliate);

               (b) to use the Proprietary Information exclusively for the
purpose of fulfilling the obligations under this Agreement;

               (c) to return the Proprietary Information, and any copies
thereof, in his possession or under his control, to the Company (or the
applicable Affiliate) upon request of the Company (or the Affiliate), or
expiration or termination of Employee's employment hereunder for any reason; and

Employee's Initials:                                                           9
      JL
-------------------
<PAGE>

               (d) to hold the Proprietary Information in confidence and not
copy, publish or disclose to others or allow any other party to copy, publish or
disclose to others in any form, any Proprietary Information without the prior
written approval of an authorized representative of the Company.

The obligations and restrictions set forth in this Section 10.02 shall survive
the expiration or termination of this Agreement, for any reason, and shall
remain in full force and effect as follows:

               (x) as to Trade Secrets, indefinitely, and

               (y) as to Confidential Information, for a period of two (2) years
after the expiration or termination of this Agreement for any reason.

               The confidentiality, property, and proprietary rights protections
available in this Agreement are in addition to, and not exclusive of, any and
all other corporate rights, including those provided under copyright, corporate
officer or director fiduciary duties, and trade secret and confidential
information laws. The obligations set forth in this Section 10.02 shall not
apply or shall terminate with respect to any particular portion of the
Proprietary Information which (i) was in Employee's possession, free of any
obligation of confidence, prior to his receipt from the Company or its
Affiliate, (ii) Employee establishes the Proprietary Information is already in
the public domain at the time the Company or the Affiliate communicates it to
Employee, or becomes available to the public through no breach of this Agreement
by Employee, or (iii) Employee establishes that he received the Proprietary
Information independently and in good faith from a third party lawfully in
possession thereof and having no obligation to keep such information
confidential.

          10.03 Covenant of Non-Disparagement and Cooperation. Employee
                ---------------------------------------------
agrees that he shall not at any time during or following the term of this
Agreement make any remarks disparaging the conduct or character of the Company
or the Affiliates or any of the Company's or the Affiliates' current or former
agents, employees, officers, directors, successors or assigns (collectively the
"Related Parties"). In addition, Employee agrees to cooperate with the Related
Parties, at no extra cost, in any litigation or administrative proceedings
(e.g., EEOC charges) involving any matters with which Employee was involved
during Employee's employment with the Company. The Company shall reimburse
Employee for travel expenses approved by the Company or the Affiliates incurred
in providing such assistance.

          10.04 Covenant Not-To-Induce. Employee covenants and agrees that
                ----------------------
during the Restricted Period, he will not, directly or indirectly, on his own
behalf or in the service or on behalf of others, hire, solicit, take away or
attempt to hire, solicit or take away any person who is or was an employee of
the Company or any Affiliate

Employee's Initials:                                                          10
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-------------------
<PAGE>

during the one (1) year period preceding the termination of Employee's
employment.

          10.05 Remedies. The Company and Employee expressly agree that a
                --------
violation of any of the covenants contained in subsections 10.02 through and
including 10.04 of this Section 10, or any provision thereof, shall cause
irreparable injury to the Company and that, accordingly, the Company shall be
entitled, in addition to any other rights and remedies it may have at law or in
equity, to an injunction enjoining and restraining Employee from doing or
continuing to do any such act and any other violation or threatened violation of
said Sections 10.02 through and including 10.04 hereof.

          10.06 Severability. In the event any provision of this Agreement
                ------------
shall be found to be void, the remaining provisions of this Agreement shall
nevertheless be binding with the same effect as though the void part were
deleted; provided, however, if subsections 10.02 through and including 10.04 of
this Section 10 shall be declared invalid, in whole or in part, Employee shall
execute, as soon as possible, a supplemental agreement with the Company,
granting the Company, to the extent legally possible, the protection afforded by
said subsections. It is expressly understood and agreed by the parties hereto
that the Company shall not be barred from enforcing the restrictive covenants
contained in each of subsections 10.02 through and including 10.04, as each are
separate and distinct, so that the invalidity of any one or more of said
covenants shall not affect the enforceability and validity of the other
covenants.

          10.07 Ownership of Property. Employee agrees and acknowledges that
                ---------------------
all works of authorship and inventions, including but not limited to products,
goods, know-how, Trade Secrets and Confidential Information, and any revisions
thereof, in any form and in whatever stage of creation or development, arising
out of or resulting from, or in connection with, the services provided by
Employee to the Company or any Affiliate under this Agreement are works made for
hire and shall be the sole and exclusive property of the Company or such
Affiliate. Employee agrees to execute such documents as the Company may
reasonably request for the purpose of effectuating the rights of the Company or
the Affiliate in any such property.

          10.08 No Defense. The existence of any claim, demand, action or
                ----------
cause of action of the Employee against the Company shall not constitute a
defense to the enforcement by the Company of any of the covenants or agreements
herein.

     11.  Indemnification.
          ---------------

          11.01 Company Obligations. The Company hereby indemnifies and
                -------------------
agrees to hold harmless Employee, to the extent allowed by applicable law,
against all liabilities, obligations, claims, demands, actions, causes of
action, lawsuits, judgments, expenses and costs, including but not limited to
the reasonable costs of

Employee's Initials:                                                          11
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-------------------
<PAGE>

investigation and attorney's fees, incurred by the Employee as a result of any
threat, demand, claim action or lawsuits, made, instituted or initiated against
the Employee, which arises out of, results from or relates to this Agreement or
any action taken by Employee in the course of performance of Employee's duties
hereunder, except for Employee's own gross negligence or willful misconduct.

          11.02 Notice and Defense of Claim. If any claim suit or other
                ---------------------------
legal proceeding shall be commenced, or any claim or demand be asserted against
the Employee and Employee desires indemnification pursuant to this paragraph,
the Company shall be notified to such effect with reasonable promptness and
shall have the right to assume at its full cost and expense the entire control
of any legal proceeding, subject to the right of the Employee to participate at
his full cost and expense and with counsel of his choice in the defense,
compromise or settlement thereof. The Employee shall cooperate fully in all
respects with the Company in any such defense, compromise or settlement,
including, without limitation, making available to the Company all pertinent
information under the control of the Employee. The Company may compromise or
settle any such action, suit, proceeding, claim or demand without Employee's
approval so long as the Company obtains for Employee's benefit a release of
liability with respect to such claim from the claimant and the Company assumes
and agrees to pay any amounts due with respect to such settlement. In no event
shall the Company be liable for any settlement entered into by the Employee
without the Company's prior written consent.

          11.03 Survival. The provisions of this paragraph 12 shall
                --------
survive the termination of this Agreement for a period of four (4) years, unless
Employee is terminated for Cause, in which event the provisions of this Section
11 shall not survive termination of this Agreement.

     12.  Dispute Resolution
          ------------------

          12.01 Agreement to Arbitrate. In consideration for his continued
                ----------------------
employment with the Company, and other consideration, the sufficiency of which
is hereby acknowledged, but subject to Section 6.07(b) above, Employee
acknowledges and agrees that any controversy or claim arising out of or relating
to Employees employment, termination of employment, or this Agreement including,
but not limited to, controversies and claims that are protected or covered by
any federal, state, or local statute, regulation or common law, shall be settled
by arbitration pursuant to the Federal Arbitration Act. This includes, but is
not limited to, violations or alleged violations of any federal or state statute
or common law (including, but not limited to, the laws of the United States or
of any state, or the Constitution of the United States or of any state), or of
any other law, statute, ordinance, including but not limited to, the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as
amended, the Americans with Disabilities Act, the Equal Pay Act, the Employee
Retirement Income Security Act, the Rehabilitation Act of 1973, and any other
statute or common law. This

Employee's Initials:                                                          12
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-------------------
<PAGE>

provision shall not, however, preclude the Company from seeking equitable relief
as provided in Section 10.06 of this Agreement.

          12.02 Procedure. The arbitration shall be conducted in accordance
                ---------
with the Employment Arbitration Rules of the American Arbitration Association: a
single arbitrator who is experienced in employment law shall be selected under
those Rules, and the arbitration shall be initiated in Atlanta, Georgia, unless
the parties agree in writing to a different location or the Arbitrator directs
the arbitration to be held at a different location. Except for filing fees, all
costs of the arbitrator shall be allocated by the arbitrator. The award rendered
by the arbitrator shall be final and binding on the parties hereto and judgment
thereon may be entered in any court having jurisdiction thereof. In addition to
that provided for in the Employment Arbitration Rules, the arbitrator has sole
discretion to permit discovery consistent with the Federal Rules of Civil
Procedure and the judicial interpretation of those rules upon request by any
party; provided, however, it is the intent of the parties that the arbitrator
limit the time and scope of any such discovery to the greatest extent
practicable and provide a decision as rapidly as possible given the
circumstances of the claims to be determined. The arbitrator also shall have the
power and authority to grant injunctive relief for any violation of Sections
10.02 through and including 10.04 and the arbitrator's order granting such
relief may be entered in any court of competent jurisdiction. The agreement to
arbitrate any claim arising out of the employment relationship or termination of
employment shall not apply to those claims which cannot be made subject to this
provision by statute, regulation or common law. These include, but are not
limited to, any claims relating to work related injuries and claims for
unemployment benefits under applicable state laws.

          12.03 Rights of Parties. Nothing in this clause shall be construed
                -----------------
to prevent the Company from asking a court of competent jurisdiction to enter
appropriate equitable relief to enjoin any violation of this Agreement by
Employee. The Company shall have the right to seek such relief in connection
with or apart from the parties' rights under this clause to arbitrate all
disputes. With respect to disputes arising under this Agreement that are
submitted to a court rather than an arbitrator, including actions to compel
arbitration or for equitable relief in aid of arbitration, the parties agree
that venue and jurisdiction are proper in any state or federal court lying
within Atlanta, Georgia and specifically consent to the jurisdiction and venue
of such court for the purpose of any proceedings contemplated by this paragraph.
By entering into this Agreement the parties have waived any right which may
exist for a trial by jury and have expressly agreed to resolve any disputes
covered by this Agreement through the arbitration process described herein.

          12.04 Employee Benefit Plan Issues. With respect to any benefits
                ----------------------------
provided to Employee hereunder which may be subject to the provisions of the
Employee Retirement Income Security Act of 1974, as amended (the "Covered
Plans"), and notwithstanding Section 6.07(b) above, the adjudication of any
claims

Employee's Initials:                                                          13
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-------------------
<PAGE>

under the Covered Plans shall be administered in accordance with the terms and
conditions of such Covered Plan. If the Covered Plan does not contain a claims
adjudication provision then, if for any reason, a claim for benefits under a
Covered Plan is denied by the Company, the Company shall deliver to the Employee
or his representative (the "claimant") a written explanation setting forth the
specific reasons for the denial, pertinent references to the Agreement section
or section of the Covered Plan on which the denial is based, such other data as
may be pertinent and information on the procedures to be followed by the
claimant in obtaining a review of his claim, all written in a manner calculated
to be understood by the claimant. For this purpose: (A)The claimant's claim
shall be deemed filed when presented orally or in writing to the individual at
the Company then performing the duties currently being performed by the
individual in charge of the People Services and Development Department (the
"Claims Manager"). (B) The Claims Manager's explanation shall be in writing
delivered to the claimant within 90 days of the date the claim is filed. The
claimant shall have 60 days following his receipt of the denial of the claim to
file with the Claim's Manager a written request for review of the denial. The
claimant or his representative may review pertinent documents related to this
Agreement and in the Claim's Manager's possession in order to prepare the
request for review. The Claims Manager shall decide the issue on review and
furnish the claimant with a copy of its decision within 60 days of receipt of
the claimant's request for review of his claim. The decision on review shall be
in writing and, if denied, shall include specific reasons for the decision,
written in a manner calculated to be understood by the claimant, as well as
specific references to the pertinent provisions on which the decision is based.
If a copy of the decision is not so furnished to the claimant within such 60
days, the claim shall be deemed denied on review. Any payment to a claimant
shall to the extent thereof be in full satisfaction of all claims hereunder
against the Company and the Claims Manager, either of whom may require such
claimant, as a condition to such payment, to execute a receipt and release
therefor in such form as shall be determined by the Company and the Claims
Manager. If a receipt and release is required by the claimant and the claimant
does not provide such receipt and release in a timely enough manner to permit a
timely distribution in accordance with the general timing of distribution
provisions in this Agreement, the payment of any affected distribution may be
delayed until the Company and the Claims Manager receive a proper receipt and
release.

          13.  Employee Acknowledgment.
               -----------------------

          By signing this Agreement, Employee acknowledges that the Company has
advised Employee of his right to consult with an attorney prior to executing
this Agreement; that he has the right to retain counsel of his own choosing
concerning the agreement to arbitrate or any waiver of rights or claims; that he
has read and fully understands the terms of this Agreement and/or has had the
right to have it reviewed and approved by counsel of choice, with adequate
opportunity and time for such review; and that he is fully aware of its contents
and of its legal effect. Accordingly, this Agreement shall not be construed
against any party on the

Employee's Initials:                                                          14
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<PAGE>

grounds that the party drafted this Agreement. Instead, this Agreement shall be
interpreted as though drafted equally by all parties.

         14.  Amendments.
              ----------

         This Agreement may not be altered, modified or amended except by a
written instrument signed by each of the parties hereto.

         15.  Successors.
              ----------

         As used in this Agreement, the term the Company shall include any
successors to all or substantially all of the business and/or assets of the
Company which assumes and agrees to perform this Agreement.

         16.  Assignment.
              ----------

         Neither this Agreement nor any of the rights or obligations of either
party hereunder shall be assigned or delegated by any party hereto without the
prior written consent of the other party, except that the Company may without
the consent of Employee assign its rights and delegate its duties hereunder to
any successor to the business of the Company. In the event of the assignment by
the Company of its rights and the delegation of its duties to a successor to the
business of the Company and the assumption of such rights and obligations by
such successor, the Company shall, effective upon such assumption, be relieved
from any and all obligations whatsoever to Employee hereunder.

         17.  Waiver.
              ------

         Waiver by any party hereto of any breach or default by any other party
of any of the terms of this Agreement shall not operate as a waiver of any other
breach or default, whether similar to or different from the breach or default
waived.

         18.  Severability.
              ------------

         In the event that any one or more of the provisions of this Agreement
shall be or become invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not be affected thereby.

         19.  Survival.
              --------

         Notwithstanding anything herein to the contrary, the provisions of
Sections 6.07, 7, 8.03, 9, 10, and 12 shall survive the termination of this
Agreement.

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<PAGE>

         20.  Entire Terms.
              ------------

         This Agreement contains the entire understanding of the parties with
respect to the employment of Employee by the Company. There are no restrictions,
agreements, promises, warranties, covenants or undertakings other than those
expressly set forth herein. This Agreement supersedes all prior agreements,
arrangements and understandings between the parties, whether oral or written,
with respect to the employment of Employee.

         21.  Notices.
              -------

         Notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered mail, return receipt
requested, postage prepaid, addressed as follows:

         If to Employee:

         Jon Luther
         450 Conway Manor Drive, N.W.
         Atlanta, GA  30327

         If to the Company to:

         AFC Enterprises, Inc.
         Six Concourse Parkway
         Suite 1700
         Atlanta, Georgia 30328-5352
         Attn: Legal Department

or to such other address or such other person as Employee or the Company shall
designate in writing in accordance with this Section 21 except that notices
regarding changes in notices shall be effective only upon receipt.

         22.  Headings.
              --------

         Headings to Sections in this Agreement are for the convenience of the
parties only and are not intended to be a part of, or to affect the meaning or
interpretation of, this Agreement.

         23.  Governing Laws.
              --------------

         The Agreement shall be governed by the laws of the State of Georgia
without reference to the principles of conflict of laws.

Employee's Initials:                                                          16
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<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and Employee has hereunto set his hand as of the day and year first
above written.

                                         COMPANY:

                                         AFC ENTERPRISES, INC.

                                         By:  /s/ Frank J. Bellatti
                                              ----------------------------------
                                              Frank J. Belatti
                                              Chairman & Chief Executive Officer

                                         EMPLOYEE:

                                         /s/ Jon Luther
                                         ---------------------------------------
                                         Jon Luther

Employee's Initials:                                                          17
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<PAGE>

        FIRST AMENDMENT TO EMPLOYMENT AGREEMENT DATED DECEMBER 8, 2000
                                    BETWEEN
                     AFC ENTERPRISES, INC. (THE "COMPANY")
                                      AND
                            JON LUTHER ("EMPLOYEE")

     WHEREAS, the Company and Employee entered into an Employment Agreement
dated as of December 8, 2000, (the "Employment Agreement") governing the terms
and conditions of Employee's employment with the Company; and

     WHEREAS, the Company and Employee desire to amend certain provisions of the
Employment Agreement;

     NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein and for other good and valuable consideration, the parties
agree as follows:

     1.   Section 1 of the Employment Agreement is hereby modified to add the
following paragraph at the end of Section 1:

          For purposes of this Section 1 only, the first "year" of the Term
          shall be deemed to begin as of the date hereof and end on December 31,
          2001, and each one (1) year period thereafter shall coincide with the
          calendar year.

     2.   Section 3 of the Employment Agreement is hereby deleted in its
entirety and the following new Section 3 is inserted in lieu thereof:

          3.   Base Salary.
               ------------

          Beginning on January 1, 2001 and continuing during the term hereof,
          the Company shall pay Employee, in equal installments no less
          frequently than monthly, a base salary at the rate of no less than
          Three Hundred Forty Thousand and No/100 Dollars (U.S. $340,000.00) per
          annum (the "Base Salary"). The Employee's Base Salary shall be
          reviewed by the Chief Executive Officer or the Board of Directors of
          the Company on an annual basis.

     3.   Section 4.02 of the Employment Agreement is hereby deleted in its
entirety and the following new Section 4.02 is inserted in lieu thereof:

          4.02  Target Incentive Pay.  The target Incentive Pay ("Target
                --------------------
          Incentive Pay") for Employee for the fiscal year of the Company ending
          in 2001 shall be as follows:  Two Hundred Fifty-five Thousand and
          No/100 Dollars (U.S. $255,000.00); provided, however, that the Target
          Incentive Pay with respect to any fiscal year is subject to, and may
          be modified by, the Annual Incentive Plan approved by the Board of
          Directors pursuant to Section 4.01 above and this Section 4.02 shall
          be read accordingly.  After 2001, the Target Incentive Pay for
          Employee will be set by the Chief Executive
<PAGE>

          Officer or the Board of Directors of the Company for each fiscal year
          and will be included in the Annual Incentive Plan for such year.

     4.   Section 6.02 of the Employment Agreement is hereby modified to delete
the first paragraph of Section 6.02 and the following paragraph is inserted in
lieu thereof:

          Subject to Section 6.07 below, in the event of the death of Employee
          during the term of his/her employment with the Company and after the
          Company first obtains the Life Insurance Policy described herein, the
          Employee's named beneficiary shall be entitled to receive an amount
          equal to five (5) times Employee's Base Salary as of the date hereof
          (the "Death Benefit") payable solely from, and to the extent of, the
          death benefit proceeds payable under such Life Insurance Policy.

     5.   Section 11.03 of the Employment Agreement is hereby deleted in its
entirety and the following new Section 11.03 is inserted in lieu thereof:

          11.03  Survival.  The provisions of this paragraph 11 shall survive
                 --------
          the termination of this Agreement for a period of four (4) years,
          unless Employee is terminated for Cause, in which event the provisions
          of this Section 11 shall not survive termination of this Agreement.

     6.   The Employment Agreement, as amended hereby, is hereby reaffirmed and
restated herein by the undersigned, and said Employment Agreement is hereby
incorporated herein by reference as fully as if set forth in its entirety in
this First Amendment.

     IN WITNESS WHEREOF, the Company has caused this Amendment to be executed
and Employee has hereunto set his hand this 8th day of February, 2001, effective
as of January 1, 2001.

                         COMPANY:

                         AFC ENTERPRISES, INC.

                         By: /s/ Dick R. Holbrook
                             ----------------------------------------
                             Dick R. Holbrook, President

                         EMPLOYEE:

                         /s/ Jon Luther                              (SEAL)
                         --------------------------------------------
                         Jon Luther

                                       2

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