Document:

Exhibit
10.2

Friendly
Ice Cream Corporation

2003
Incentive Plan

Long
Term Incentive Plan - 2007

Restricted
Stock Unit Award Agreement

NAME

	
  Grant Date:  February 28, 2007

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Restricted Stock Unit Grant

1.            
Grant.  This Agreement evidences the Restricted Stock
Unit Award Agreement (the “Agreement”) granted to NAME (the “Grantee”) by the
Compensation Committee (“Committee”) of the Board of Directors of Friendly Ice
Cream Corporation (“Company”).  The terms
of this Agreement are subject to the terms hereof, the Friendly Ice Cream
Corporation 2003 Incentive Plan, as amended (“Plan”), and any rules and
procedures adopted by the Committee. 
Terms not defined herein shall have the meaning set forth in the Plan.

2.            
Restricted Stock Units.  Pursuant to this Agreement, the Grantee is
eligible to receive a certain number of shares of Friendly Ice Cream
Corporation common stock, par value $0.01 per share (“Common Stock”),
calculated in accordance with the terms hereof.  If the Company meets or exceeds the threshold
EBITDA target for fiscal 2007 set forth on Exhibit A (the “2007
Threshold EBITDA”), then the Grantee will receive an award payable in shares of
Common Stock having a specified value based on the Company’s Actual EBITDA for
fiscal 2007 compared to projected EBITDA for fiscal 2007 (the “Award Value”)
and a percentage of the Grantee’s target award. 
In the event of a Change in Control (as defined in the Plan) prior to
the Committee’s determination of the Award Value, then the 2007 Threshold
EBITDA shall be deemed to have been achieved and the Award Value shall be
deemed to be equal to the 2007 Target EBITDA as set forth on Exhibit A.

The number of shares of Common Stock to be issued to
the Grantee, if any, will be calculated by dividing the Award Value by 90% of
the closing price of the Company’s Common Stock on the date of grant  as reported by the American Stock Exchange
(or such other exchange on which the Company’s Common Stock is traded) (the “Award
Shares”).

The Award Value will be determined, and the date of
grant of any Award Shares will occur, upon the earlier of (i) the date of the
Committee’s first regularly scheduled meeting held after the completion of the
Company’s independent audit and the Audit Committee recommendation to include
the Company’s audited financial statements in the Company’s Annual Report on
Form 10-K or (ii) immediately prior to the consummation of a Change in Control
of the Company (the “Issue Date”).

If Award Shares are issued to the Grantee, then 25% of
such Award Shares will be fully vested and transferable on the Issue Date and
the remaining 75% of the Award Shares will vest in three equal installments on each of the three anniversaries (i.e., 25%
each year) following issuance if the Grantee remains employed by the
Company or its affiliates on each such anniversary date of the Issue Date in
accordance with the terms of a Restricted Stock Agreement in the form attached
as Exhibit B hereto to be executed on the Issue Date; provided, however,
that notwithstanding the foregoing, upon the occurrence of a Change in Control,
as provided in the Plan, all Award Shares shall be fully vested on the Issue
Date.

 

3.            
Termination of Agreement.  If the Grantee’s employment with the Company
or one of its affiliates is terminated due to death, disability, retirement,
involuntary (with or without cause) or voluntary termination prior to the Issue
Date, then this Agreement shall terminate and the Grantee shall have no further
rights hereunder, including without limitation, the right to receive any Award
Shares.

4.            
Voting Rights; No Right to Employment. 
The Grantee shall have no rights of ownership in any
Award Shares and shall have no right to vote the any Award Shares until the Award
Shares, if any, are issued on the Issue Date. 
The Grantee further acknowledges and agrees that this Agreement and the
issuance of any Award Shares shall not be construed to give Grantee any right
to continued employment.

5.            
Compliance with Laws.  As
provided in the Plan, the Company may impose such conditions and restrictions
with respect to the issuance and subsequent transfer of the Award Shares as
contemplated hereby, including without limitation, conditions and restrictions
relating to applicable federal or state securities laws, and applicable
federal, state or local withholding tax requirements, as the Company considers
necessary or advisable. In no event shall the Company be required to issue any
Award Shares hereunder unless and until all applicable legal requirements are
satisfied to the reasonable satisfaction of the Company in its sole discretion.

6.            
Incorporation of Plan.  All terms used in this Agreement have the
same meaning as given such terms in the Plan. This Agreement incorporates and
is subject to the provisions of the Plan, a copy of which will be furnished
upon request, and such provisions shall be deemed a part of the Agreement for
all purposes.

7.            
409A Compliance.  Notwithstanding any terms to the contrary in
Supplement A to the Plan, the Grantee shall not be permitted to make a deferral
election to defer the issuance of Award Shares provided for under this
Agreement.  The Company may, in its sole
and absolute discretion, delay payments hereunder or make such other
modifications with respect to the issuance of stock hereunder as it reasonably
deems necessary to comply with Section 409A of the Internal Revenue Code
of 1986, as amended, and interpretative guidance thereunder.

8.            
Entire Agreement.  This Agreement, the Plan, and any documents
expressly incorporated herein, contain all of the provisions applicable to the
award granted hereby and no other statements, documents or practices may
modify, waive or alter such provisions unless expressly set forth in writing,
signed by an authorized officer of the Company and delivered to the Grantee.

9.            
Applicable Law; Severability.  This Agreement shall be governed by, and
construed in accordance with, the laws of the Commonwealth of Massachusetts
without giving effect to the principles of conflicts of law thereof. In the
event that any court of competent jurisdiction shall determine that any
provision, or any portion thereof, contained in this Agreement shall be
unenforceable in any respect, then such provision shall be deemed limited to
the extent that such court deems it enforceable, and as so limited shall remain
in full force and effect. In the event that such court shall deem any such
provision, or portion thereof, wholly unenforceable, the remaining provisions
of this Agreement shall nevertheless remain in full force and effect.

10.            
Interpretation.  The parties hereto acknowledge and agree that
the rule of construction to the effect that any ambiguities are resolved against
the drafting party shall not be employed in the interpretation of this
Agreement.

 2
 

 

11.            
No Waiver of Rights, Powers and Remedies. 
No failure or delay by a party hereto in exercising any right, power or
remedy under this Agreement, and no course of dealing between the parties
hereto, shall operate as a waiver of any such right, power or remedy of the
party, unless explicitly provided for herein. No single or partial exercise of
any right, power or remedy under this Agreement by a party hereto, nor any
abandonment or discontinuance of steps to enforce any such right, power or
remedy, shall preclude such party from any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder.

12.            
Counterparts.  This Agreement may be executed in multiple
counterparts, including by electronic or facsimile signature, each of which
shall be deemed in original but all of which together shall constitute one and
the same instrument.

	
  NAME

  	
   

  	
  Friendly Ice Cream Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 3Exhibit 10.1

Chevy
Chase Bank

Change
in Terms Agreement

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $250,000.00

  	
   

  	
  03-01-2005

  	
   

  	
  03-01-2008

  	
   

  	
  9001

  	
   

  	
  4AO / 8120

  	
   

  	
  0120535

  	
   

  	
  40536

  	
   

  	
   

  	
   

  

 

References
in the shaded area are of Lender’s use only and do no limit the applicability
of this document to any particular loan or item.  Any item above containing “***” has been
omitted due to text length limitations.

	
  Borrower:

  	
   

  	
  Precision Auto Care, Inc.

  	
   

  	
  Lender:

  	
   

  	
  Chevy Chase Bank, F.S.B.

  
	
   

  	
   

  	
  748 Miller Drive, S.E.

  	
   

  	
   

  	
   

  	
  Commercial Banking Division

  
	
   

  	
   

  	
  Leesburg, VA 20175

  	
   

  	
   

  	
   

  	
  7501 Wisconsin Avenue, 12th Floor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Bethesda, MD 20814

  

 

	
  Principal Amount: $250,000.00

  	
   

  	
  Date of
  Agreement: February 28, 2007

  

 

DESCRIPTION
OF EXISTING INDEBTEDNESS. 
That certain Promissory Note dated March 1, 2005 made by Borrower to
Lender, as modified and extended by that certain Change in Terms Agreement
dated February 26, 2006 (collectively, the “Note”), which was a renewal of that
certain Promissory Note dated March 9, 2004 in the original principal amount of
$250,000.00.

DESCRIPTION
OF CHANGE IN TERMS. 
The maturity date of the Note is hereby further extended from March 1,
2007 to March 1, 2008.

CONTINUITY
VALIDITY.  Except as
expressly changed by this Agreement, the terms of the original obligation or
obligations, including all agreements evidenced or securing the obligation(s),
remain unchanged and in full force and effect. 
Consent by Lender to this Agreement does not waive Lender’s right to
strict performance of the obligation(s) as changed, nor obligate Lender to make
any future change in terms.  Nothing in
this Agreement will constitute a satisfaction of the obligation(s).  It is the intention of Lender to retain as liable
parties all makers and endorsers of the original obligation(s), including
accommodation parties, unless a party is expressly released by Lender in
writing.  Any maker or endorser,
including accommodation makers, will not be released by virtue of this
Agreement.  If any person who signed the
original obligation does not sign this Agreement below, then all persons
signing below acknowledge that this Agreement is given conditionally, based on
the representation to Lender that the non-signing party consents to the changes
and provisions of this Agreement or otherwise will not be released by it.  This waiver applies not only to any initial
extension, modification or release, but also to all such subsequent actions.

CLARIFICATION
OF GOVERNING LAW. 
Notwithstanding anything to the contrary in any of the documents, the
parties agree that federal law governs the Agreement or Promissory Note, as the
case may be, and Maryland law will apply only to the extent it is not otherwise
superceded or preempted by federal law.

THIS
AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND
SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.

PRIOR
TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS AGREEMENT, BORROWER AGREES TO THE TERMS OF THE AGREEMENT.

 

	
  BORROWER:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRECISION AUTO CARE, INC.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Robert R. Falconi

  	
  (Seal)

  	
   

  	
  By:

  	
   

  	
  /s/ Mark P. Francis

  	
  (Seal)

  
	
   

  	
   

  	
  Robert R. Falconi, President & CEO of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Mark P. Francis, Chief Financial Officer

  	
   

  	
   

  
	
   

  	
   

  	
  Precision Auto Care, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of Precision Auto Care, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]