Document:

EX-10.2 FIRST AMENDMENT TO PURCHASE AGREEMENT

 

Exhibit
10.2

FIRST AMENDMENT TO PURCHASE AGREEMENT

     THIS FIRST AMENDMENT is made and entered into and effective as of the 28th day of
April, 2006, by and among SHELTON DEVELOPMENT COMPANY, L.L.C., a Louisiana limited
liability company (“SDC”), SHELTON DEVELOPMENT CO – MEMPHIS, LLC, a Louisiana limited liability
company qualified and registered to do business in the State of Tennessee (f/k/a “Shelton
Development Company-Bastrop, L.L.C.”) (“Memphis LLC”), SHELTON DEVELOPMENT COMPANY – NASHVILLE,
LLC, a Louisiana limited liability company qualified and registered to do business in the State of
Tennessee (“Nashville LLC”), and SHELTON DEVELOPMENT COMPANY – MISSISSIPPI, LLC, a Louisiana
limited liability company qualified and registered to do business in the State of Mississippi
(f/k/a “Shelton Development Company-Horn Lake, L.L.C.”) (“Mississippi LLC”) (SDC, Memphis LLC,
Nashville LLC and Mississippi LLC are hereinafter sometimes referred to jointly and severally, as
“Seller”), MICHAEL A. SHELTON, a Louisiana resident (“Michael”) and MELISSA KAY SHELTON, a
Louisiana resident (“Melissa”) (Melissa and Michael are hereinafter sometimes referred to jointly
and severally as a “Principal” or “Principals”), and AFC ENTERPRISES, INC., a Minnesota corporation
(“Purchaser”).

W I T N E S S E T H:

     WHEREAS, Seller and Purchaser entered into that certain Asset Purchase Agreement (the
“Agreement”) regarding thirteen (13) Popeyes Restaurants dated as of April 3, 2006; and

     WHEREAS, Seller and Purchaser desire to amend the Agreement in certain respects,

     NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth,
and other good and valuable consideration, the receipt, sufficiency and adequacy of which are
hereby acknowledged, Seller and Purchaser hereby mutually agree as follows:

     1. Defined Terms. All terms not otherwise defined herein shall have the same meaning
set forth in the Agreement.

     2. New Party. The parties have discovered that SDC is the title owner of the real
estate commonly known as 1188 Murfreesboro Pike, Nashville, TN and 1105 W. Poplar Ave.,
Collierville, TN and as such is now a party hereto as a Seller under the Agreement.

     3. Minimum Base Rent Allocation. Initially, the Minimum Base Rent shall continue
without allocation and Rider 1 attached hereto shall be attached to the Leases for the Seller Owned
Premises. Within ninety (90) days after the date hereof, Purchaser shall provide Seller with the
Minimum Base Rent allocation in the form of FA Schedule 2 attached hereto and made a part
hereof and a new Rider 1 to each Lease. Upon such delivery, the Leases shall be deemed amended to
delete Rider 1 as attached hereto and to insert the new Rider 1 in lieu thereof.

     4. Purchase Price Allocation. The original Schedule 2(c) attached to the
Agreement is deleted and Schedule 2(c) attached hereto is hereby inserted in lieu thereof.
Seller understands and acknowledges that Purchaser has not received or completed all of it
valuations and has provided the Purchase Price allocations on the best information it has available
to date. Accordingly, Purchaser shall have ninety (90) days after the Closing Date to adjust and
correct the Purchase Price allocations and replace Schedule 2(c) by notice to Seller,

 

 

whereupon the Agreement shall be deemed amended by inserting such subsequently adjusted
Schedule 2(c) in lieu of the existing schedule.

     5. Assumed Debt. (a) The approximate amount “$5,000,000” is deleted from Section 2(a)
of the Agreement and the approximate amount “$3,300,000” is inserted in lieu thereof.

          (b) Seller’s debt to AMRESCO Commercial Finance, LLC, shall be paid in full by Seller and
satisfied at Closing. Purchaser shall pay Seller $216,272.73 for the yield maintenance fee for
loan number 401004989, plus $83,727.27 for the yield maintenance fee for loan number
401004856, less $38,000 by agreement of the parties and representing Seller’s share of
additional costs to Purchaser in connection with the AMRESCO payoff (a total of $262,000) at
Closing. Accordingly, Schedule 5 of the Agreement is deleted in its entirety and
Schedule 5 attached hereto is inserted in lieu thereof.

          (c) Section 5, clause (ii) of the Agreement is amended by deleting “and AMRESCO” and inserting
“(DBNC Peach I Trust)” in lieu thereof.

     6. Site Acquisition Agreement. All references in the Agreement to “Build-to-Suit
Agreement” (whether or not capitalized), shall be deemed to be a reference to the Site Acquisition
Agreement referenced in Section 3(d) of the Agreement, as amended hereby. Section 3(d) of the
Agreement is deleted in its entirety and the following is inserted in lieu thereof:

     (d) At Closing, the parties shall execute and deliver the “Site
Acquisition Agreement” in the form attached hereto and made a part
hereof as FA Schedule 6.

     7. Assumed Contracts. The original Schedule 1(ii) attached to the Agreement
is deleted and Schedule 1(ii) attached hereto is hereby inserted in lieu thereof. All
payments of partnership funds, advanced marketing or operations funds, price reinvestment funds or
other funds (“Coke Payments”) paid by The Coca Cola Company or its division or affiliate (“TCCC”)
to any Seller or Purchaser attributable to the Sale Restaurants for the period of December 31, 2005
through December 31, 2006 (such period being hereinafter referred to as the “Coke Proration
Period”) shall be prorated between Seller and Purchaser as of the Closing Date as follows:
Purchaser shall be entitled to an amount equal to a fraction of the Coke Payments, the numerator of
which is the number of days from, including and after the Closing Date through December 31, 2006
and the denominator of which is 365. For example, the parties anticipate that the Coke Payments
attributable to the Coke Proration Period will be $165,732. If the Closing Date is May 1, 2006,
then Purchaser shall be entitled to sixty seven percent (67%) of the Coke Payments, i.e.,
$111,040.44 (244/365). Any payments made by TCCC on or after the Closing Date but attributable to
the Coke Proration Period shall also be prorated accordingly. If any Coke Payments are made to any
Seller after the Closing Date, such Seller shall immediately deliver same to Purchaser and if any
such Coke Payments are allocable to the Coke Proration Period, Purchaser shall refund Seller’s
proportionate share. If Purchaser receives any Coke Payments after the Closing Date that are
attributable to the Coke Proration Period, then Purchaser shall prorate such funds and remit them
to Seller. Any payments made by TCCC attributable to periods after December 31, 2006 shall belong
solely to Purchaser.

     8. Employee List. The original Schedule 9(r) attached to the Agreement is
deleted and Schedule 9(r) attached hereto is hereby inserted in lieu thereof. Purchaser
will pay

 

 

all eligible employees the second quarter bonus that such employees would have been entitled
to if they had remained employed by Seller. The parties agree to prorate such bonus amount as of
the Closing Date, outside of Closing, and Seller shall reimburse Purchaser for its share.

     9. Additional Credits. At Closing, Purchaser shall receive the following credits
against the Purchase Price: $107,000.00 for deferred maintenance items; $14,407.00 for royalties
(the “Royalty Amount”). After Closing, the parties will in good faith review the sales reports,
tax and other substantiating information regarding the Royalty Amount and will adjust the Royalty
Amount based on the findings of such review.

     10. Holdback. Section 2(a) of the Agreement is amended by deleting “$500,000” and
inserting “$450,000” in lieu thereof and by deleting “$250,000” in each of the two instances it
appears and by inserting “$225,000” in lieu thereof.

     11. Closing; Inventory Date. Section 2(b) of the Agreement is modified and amended so
that the Closing Date and the Effective Date shall be the same day and Purchaser is deemed to own
the Sales Restaurants on that date. The parties anticipate that the Closing Date and Effective
Date will be May 1, 2006. Accordingly, all items of income and expense allocable to the Closing
Date shall be allocated to Purchaser and all items of income and expense allocable to periods prior
to the Closing Date shall be allocated to Seller. Section 6 of the Agreement is modified and
amended so that the Inventory Date will be the day immediately preceding the Closing Date. For
example, if the Closing Date is Monday, May 1, 2006, then the Inventory audit shall occur at the
close of business on Sunday, April 30, 2006 and that date shall be the Inventory Date.

     12. Survey Indemnity. (a) Purchaser’s due diligence has revealed possible title
and/or survey issues and discrepancies related to the Premises commonly known as 914 Jefferson
Street, Nashville, TN (“Title Issues”). To induce Purchaser to proceed with Closing, Seller shall
indemnify, defend and hold Purchaser harmless from and against any and all loss, claim, cost,
diminution in value or expense arising in connection with any Title Issues with respect to such
Premises, including without limitation, additional costs incurred after the date hereof to further
investigate, mitigate or resolve such Title Issues. Such indemnity shall survive the Closing.

     (b) In the event Purchaser determines that the Title Issues are either not readily resolvable
or materially interfere with the conduct of Purchaser’s business at the Premises or adversely
affect the value of the Sale Restaurant #9926 located thereon, Purchaser shall have the right to
(i) terminate the Lease at the Premises upon no less than fifteen (15) days prior written notice
and (ii) require Seller to purchase Sale Restaurant #9926 from Purchaser on such Lease termination
date for $1,129,220, including the same, similar or better furniture, fixtures and equipment as
existing on the Closing Date, pursuant to a bill of sale in substantially the same form as the bill
of sale attached to the Agreement as Exhibit G, modified to reflect the different parties and with
a limited warranty subject to all matters arising prior to the Closing Date. Purchaser’s right to
terminate the Lease and require Seller to re-purchase the Sale Restaurant shall expire and be of no
further force or effect on that date which is ninety (90) days after the Closing Date, unless
mutually extended by the parties.

     13. Ratification; Miscellaneous. Except as amended hereby, the Agreement is hereby
ratified by the parties hereto and remains in full force and effect. This First Amendment may be
executed in one or more counterparts, each of which shall constitute an original and all

 

 

of which together shall constitute one and the same instrument. Communication of execution
and acceptance of this First Amendment may also be made by facsimile transmission.

     IN WITNESS WHEREOF, each of Seller and Purchaser have caused this Agreement to be executed and
delivered by its duly authorized officers and members, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	SELLER :
	 
	 	 	 	 	 	 
	 	 	SHELTON DEVELOPMENT COMPANY, L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Michael A. Shelton
	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael A. Shelton, Member	 	 
	 
	 	 	 	 	 	 
	 	 	SHELTON DEVELOPMENT CO – MEMPHIS, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Michael A. Shelton
	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael A. Shelton, Member	 	 
	 
	 	 	 	 	 	 
	 	 	SHELTON DEVELOPMENT COMPANY – NASHVILLE, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Michael A. Shelton
	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael A. Shelton, Member	 	 
	 
	 	 	 	 	 	 
	 	 	SHELTON DEVELOPMENT COMPANY – MISSISSIPPI, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Michael A. Shelton
	 	(SEAL)
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael A. Shelton, Member	 	 
	 
	 	 	 	 	 	 
	 	 	PRINCIPALS :
	 
	 	 	 	 	 	 
	 

	 	 	 	  /s/ Michael A. Shelton
	 	(SEAL)
	 	 	 	 	 
	 	 	MICHAEL A. SHELTON
	 
	 	 	 	 	 	 
	 

	 	 	 	  /s/ Melissa Kay Shelton
	 	(SEAL)
	 	 	 	 	 
	 	 	MELISSA KAY SHELTON
	 
	 	 	 	 	 	 
	 	 	PURCHASER :
	 
	 	 	 	 	 	 
	 	 	AFC ENTERPRISES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Ward	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	Vice President	 	 

 

 

FIRST AMENDMENT ATTACHMENT LIST

Rider 1 – Interim Aggregate Minimum Base Rent Schedule

FA Schedule 2 – Rent Allocation per Site

Schedule 2(c) – Purchase Price Allocation

Schedule 5 – Assumed Debt

FA Schedule 6 – Site Acquisition Agreement

Schedule 1(ii) – Assumed Contracts

Schedule 9(r) – Employee List<PAGE>

                                                                    EXHIBIT 10.1

                                                         Approved March 22, 2006

                           STATEMENT OF AMENDMENTS TO
                   Time Warner Inc. 2003 Stock Incentive Plan

WHEREAS, Time Warner Inc. (the "Company") maintains the Time Warner Inc. 2003
Stock Incentive Plan (the "Plan"), which was approved by the Board of Directors
and the stockholders of the Company in 2003; and

WHEREAS, the Plan provides that it can be amended by the Compensation and Human
Development Committee of the Board of Directors (the "Committee") without the
approval of the stockholders, except in certain limited circumstances and the
amendments set forth in this Statement of Amendments do not require the approval
of either the stockholders or any participant to whom an Award has been granted
pursuant to the Plan; and

WHEREAS, capitalized terms used herein and not defined herein shall have the
meaning assigned to them in the Plan.

1.   Section 3 of the Plan is hereby amended in its entirely to read as follows:

     3.   SHARES SUBJECT TO THE PLAN

          The total number of Shares which may be issued under the Plan is
     200,000,000, of which no more than 20% may be issued in the form of
     Restricted Stock or Other Stock-Based Awards payable in Shares. The maximum
     aggregate number of Shares with respect to which Awards may be granted
     during a calendar year, net of any Shares which are subject to Awards (or
     portions thereof) which, during such year, terminate or lapse without
     payment of consideration, shall be equal to 2% of the number of Shares
     outstanding on December 31 of the preceding calendar year. The maximum
     number of Shares with respect to which Awards may be granted during a
     calendar year to any Participant shall be 2,000,000; provided that the
     maximum number of Shares that may be awarded in the form of Restricted
     Stock or Other Stock-Based Awards payable in Shares during any calendar
     year to any Participant shall be 600,000. The Shares may consist, in whole
     or in part, of unissued Shares or treasury Shares. The number of Shares
     available for issuance under the Plan shall be reduced by the full number
     of Shares covered by Awards granted under the Plan (including, without
     limitation, the full number of Shares covered by any Stock Appreciation
     Right, regardless of whether any such Stock Appreciation Right or other
     Award covering Shares under the Plan is ultimately settled in cash or by
     delivery of Shares); provided, however, that the number of Shares covered
     by Awards (or portions thereof) that are forfeited or that otherwise
     terminate or lapse without the payment of consideration in respect thereof
     shall again become available for issuance under the Plan; and provided
     further that any Shares that are forfeited after the actual issuance of
     such Shares to a Participant under the Plan shall not become available for
     re-issuance under the Plan.

<PAGE>

2.   Section 7(c) of the Plan is hereby amended in its entirety to read as
     follows:

          (c) "Limitations. The Committee may impose, in its discretion, such
          conditions upon the exercisability of Stock Appreciation Rights as it
          may deem fit, but in no event shall a Stock Appreciation Right be
          exercisable more than ten years after the date it is granted, except
          as may be provided pursuant to Section 15.

3.   The foregoing amendments to the Plan shall become effective upon approval
     by the Committee.

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