Document:

EXHIBIT
10.1

CONSENT,
WAIVER AND AMENDMENT NO. 5 TO CREDIT AGREEMENT

THIS CONSENT,
WAIVER AND AMENDMENT NO. 5 TO CREDIT AGREEMENT (this “Agreement”), dated
as of August 28, 2006, is made by and among Great Lakes Dredge & Dock
Corporation (the “Borrower”), GLDD Acquisitions Corp. (“Holdings”),
the other “Loan Parties” from time to time party to the Credit Agreement
referred to and defined below (together with Holdings and the Borrower, the “Loan
Parties”), the financial institutions from time to time party to such
Credit Agreement referred to and defined below (collectively, the “Lenders”)
and Bank of America, N.A., as issuer of the Letters of Credit (in such
capacity, the “Issuing Lender”) and as representative of the Lenders (in
such capacity, the “Administrative Agent”).  Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in the
Credit Agreement referred to and defined below.

W I T N E
S S E T H:

WHEREAS, the
Borrower, the other Loan Parties, the Lenders, the Administrative Agent and the
Issuing Lender have entered into that certain Credit Agreement dated as of
December 22, 2003 (as amended, supplemented or otherwise modified prior to the
date hereof, the “Credit Agreement”), pursuant to which, among other
things, the Lenders have agreed to provide, subject to the terms and conditions
contained therein, certain loans and other financial accommodations to the
Borrower;

WHEREAS, the
Borrower has notified the Administrative Agent and the Lenders that (i) the
Borrower desires to obtain a secured revolving line of credit from Wells Fargo
HSBC Trade Bank, N.A. pursuant to an International Letter of Credit Agreement
(the “Wells Fargo Agreement”), (ii) Great Lakes desires to reflag each
of its Sugar Island and the Manhattan Island vessels under the laws of the Republic of
the Marshall Islands, which vessels are currently flagged under the laws of the
United States of America (the “Reflagging”), (iii) Holdings intends to
merge (the “Holdings Merger”) with and into Aldabra Merger Sub, L.L.C. (“Aldabra
Merger Sub”), a wholly-owned Subsidiary of Aldabra Acquisition Corporation
(“Aldabra Corporation”), with Aldabra Merger Sub as the survivor of such
merger, pursuant to that certain Agreement and Plan of Merger dated as of June
20, 2006 (the “Merger Agreement”) by and among Holdings, Aldabra
Corporation, Aldabra Merger Sub, Madison Dearborn Capital Partners IV, L.P.,
solely in its capacity as Company Representative, and Terrapin Partners LLC,
solely in its capacity as Buyer Representative, (iv) following the Holdings
Merger, Aldabra Merger Sub intends to merge (the “Merger Sub Merger”)
with and into Great Lakes Dredge & Dock Holdings Corp. (“Great Lakes
Holdings”), the survivor by merger with Aldabra Corporation, with Great
Lakes Holdings as the survivor to such merger, (v) following the Merger Sub
Merger, the Borrower intends to merge (the “Borrower Merger”) with and
into Great Lakes Holdings, with Great Lakes Holdings as the survivor of such
merger and, following such merger, changing its name to “Great Lakes Dredge
& Dock Corporation,” (vi) the Borrower intends to create a domestic
wholly-owned Subsidiary (“Newco”), transfer each of its Sugar Island and Dodge Island
vessels to Newco and merge Newco into Great Lakes with Great Lakes as the
survivor of such merger and (vii) the Borrower desires to amend Section
6.3(b)(ii) of the Credit Agreement to increase the maximum Total Leverage Ratio
for the four (4) consecutive Fiscal Quarter period ending September 30, 2006
from 5.0 to 1.0 to 5.6 to 1.0 (the “Financial Covenant Amendment”);

  
  
 

 

WHEREAS, the terms
of the Credit Agreement prohibit the Borrower from consummating the
transactions contemplated by the Wells Fargo Agreement;

WHEREAS, Section
5(a) of the First Preferred Fleet Mortgage prohibits Great Lakes from
transferring or changing the flag of the Sugar Island or
the Manhattan Island without the consent of
the Administrative Agent, and the Administrative Agent is prohibited from
providing such consent without the consent of the Majority Lenders;

WHEREAS, Sections
6.1(a) and 6.2(a) of the Credit Agreement prohibit the consummation of the
Holdings Merger, the Merger Sub Merger and the Borrower Merger (collectively
referred to herein as the “Mergers”) without the consent of the
Administrative Agent and the Majority Lenders and the Mergers would constitute
Events of Default under 7.1(i) of the Credit Agreement unless the Majority
Lenders waive such Events of Default;

WHEREAS, unless
otherwise agreed to between the Borrower and the Administrative Agent, Section
6.1(q) of the Credit Agreement requires Newco to execute a Loan Party Guaranty
and other Collateral Documents in substantially the same forms as the other
Loan Party Guaranties and Collateral Documents then in existence and otherwise
in form and substance reasonably satisfactory to the Administrative Agent
together with opinions, certificates and other documentation reasonably
requested by the Administrative Agent in connection with the Collateral
Documents (the “New Subsidiary Requirements”);

WHEREAS, the
Borrower has requested that the Administrative Agent waive the New Subsidiary
Requirements with respect to Newco provided that Newco is merged with and into
Great Lakes on the date of incorporation or organization, as applicable, of
Newco and, subject to the terms and conditions of this Agreement, the
Administrative Agent agrees to waive the New Subsidiary Requirements with
respect to Newco; and

WHEREAS, the
Borrower has requested that the Administrative Agent and the Majority Lenders
amend the Credit Agreement to permit the Borrower to enter into and perform its
obligations under the Wells Fargo Agreement, consent to the Reflagging, consent
to the Mergers and waive certain violations that would otherwise result
therefrom, waive the New Subsidiary Requirements with respect to Newco and
provide for the Financial Covenant Amendment, and, subject to the terms and
conditions of this Agreement, the Administrative Agent and the Lenders hereby
agree to amend the Credit Agreement as set forth herein, consent to the
Reflagging, provide the consents and waivers with respect to the Mergers and
waive the New Subsidiary Requirements with respect to Newco;

NOW, THEREFORE, in
consideration of the foregoing premises, the terms and conditions stated herein
and other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the Borrower, the other Loan Parties, the Lenders and
the Administrative Agent, such parties hereby agree as follows:

1.             Financial Covenant Amendment.  Subject to the satisfaction of each of the “General
Conditions” (as defined in Section 6 hereof), Section 6.3(b)(ii) of the
Credit Agreement is hereby amended to amend and restate the table set forth in
such section in its entirety as follows:

	
  Period

  	
   

  	
   

  	
   

  	
  Ratio

  	
   

  
	
  January
  1, 2004 through and including December 31, 2004

  	
   

  	
  5.75 to 1.00

  	
   

  
	
  January
  1, 2005 through and including December 31, 2005

  	
   

  	
  5.50 to 1.00

  	
   

  

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  January
  1, 2006 through and including June 30, 2006

  	
   

  	
  5.00 to 1.00

  	
   

  
	
  July 1,
  2006 through and including September 30, 2006

  	
   

  	
  5.60 to 1.00

  	
   

  
	
  October
  1, 2006 through and including December 31, 2006

  	
   

  	
  5.00 to 1.00

  	
   

  
	
  January
  1, 2007 through and including December 31, 2007

  	
   

  	
  4.75 to 1.00

  	
   

  
	
  January
  1, 2008 through and including December 31, 2008

  	
   

  	
  4.50 to 1.00

  	
   

  
	
  January
  1, 2009 through and including December 31, 2009

  	
   

  	
  4.00 to 1.00

  	
   

  
	
  January 1, 2010 and thereafter

  	
   

  	
  3.50 to 1.00

  	
   

  

 

2.             Wells Fargo Facility.  Subject to the satisfaction of each of the
General Conditions and the “Wells Fargo Facility Conditions” (as defined in Section
7 hereof), the Credit Agreement is hereby amended as follows:

(a)           Section
6.2(e) of the Credit Agreement is hereby amended to insert a reference to “the
Wells Fargo Documents,” immediately after the reference to “the Bonding
Agreement,” set forth in clause (E) of such section.

(b)           The
first sentence of Section 6.2(f) of the Credit Agreement is hereby amended to
(i) delete the word “and” appearing at the end of clause (vi) of such sentence,
(ii) replace the period appearing at the end of clause (vii) of such sentence
with the word “and” and (iii) add the following clause (viii) to the end of
such sentence:

(viii) a secured Guaranty by Great Lakes and
certain other Subsidiaries of Borrower of the obligations of the Borrower under
the Wells Fargo Documents; provided that such Guaranty may be secured
only by the Permitted Wells Fargo Facility Collateral and (y) each such
Subsidiary has executed and delivered a Loan Party Guaranty and Collateral
Documents and provided other deliveries described in Section 6.1(q) .

(c)           Section
6.2(h) of the Credit Agreement is hereby amended to (i) delete the word “and”
appearing at the end of clause (xvii) of such section, (ii) replace the period
appearing at the end of clause (xviii) of such section with the word “and” and
(iii) add the following clause (xix) to the end of such section:

 (xix)             Liens
on Permitted Wells Fargo Facility Collateral securing Debt permitted under
Section 6.2(i)(xvi) and Guaranties permitted under Section 6.2(f)(viii).

(d)           Section
6.2(i) of the Credit Agreement is hereby amended to (i) delete the word “and”
appearing at the end of clause (xiv) of such section, (ii) replace the period
appearing at the end of clause (xv) of such section with the word “and” and
(iii) add the following clause (xvi) to the end of such section:

(xvi)              Debt
incurred  pursuant to the Wells Fargo
Documents not exceeding $20,000,000 in aggregate principal amount at any time
outstanding.

(e)           Section
6.4(m) of the Credit Agreement is hereby amended and restated in its entirety
as follows:

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(m)          Wells
Fargo Agreement. The Borrower shall provide to the Administrative Agent,
(i) within 45 days after the end of each month ending on the last day of each
of the first three Fiscal Quarters of each Fiscal Year, and 90 days after the
end of each Fiscal Year for each month of December, (A) a schedule of all
outstanding letters of credit under the Wells Fargo Agreement and (B) a
schedule of the accounts receivable pledged to secure the obligations of the Borrower
under the Wells Fargo Documents and (ii) from time to time upon the written
request of the Administrative Agent, any other information as the
Administrative Agent may reasonably request regarding the Wells Fargo Documents
and the transactions contemplated thereby.

(f)            Section
6.2(o) of the Credit Agreement is hereby amended to (i) delete the word “or”
appearing at the end of clause (ii) of such section, (ii) replace the period
appearing at the end of clause (iii) of such section with the word “or” and
(iii) add the following clause (iv) to the end of such section:

(iv) the Wells Fargo Agreement or any
agreement relating thereto that is either material or related to the creation,
attachment or perfection of a security interest in any collateral securing the
obligations under the Wells Fargo Agreement, in each case in any manner
materially adverse to the Borrower or the rights or interests of the Secured
Parties under the Loan Documents.

(g)           Section
7.1(d) of the Credit Agreement is hereby amended and restated in its entirety
as follows:

(d)          Default
as to Other Debt.  Default in the payment when
due subject to any applicable grace period (whether by scheduled maturity,
required prepayment, required redemption, acceleration, demand or otherwise) on
any Debt (other than the Obligations), individually or in the aggregate, having
an outstanding principal amount in excess of $5,000,000, of or guaranteed by,
any Loan Party or Subsidiary of Holdings; or any breach, default or event of
default shall occur, or any other event shall occur or condition shall exist,
under any instrument, agreement or indenture pertaining thereto, if the effect
thereof, after giving effect to any applicable grace or cure period, is to
accelerate, or permit the holder(s) of such Debt to accelerate the maturity of
such Debt, or require a mandatory redemption or repurchase of such Debt prior
to its scheduled redemption or repurchase; or any such Debt or any Debt under
the Wells Fargo Agreement shall be declared due and payable or required to be
prepaid (other than by a regularly scheduled required prepayment (including,
without limitation, pursuant to Section 3.1 (or any comparable section) of the
Wells Fargo Agreement)), repurchased or redeemed prior to the originally stated
maturity thereof; or the holder of any Lien related to a Debt in excess of
$5,000,000 or the holder of any Lien in respect of Debt under the Wells Fargo
Agreement shall commence foreclosure of such Lien; or an “Event of Default”
shall have occurred under and as defined in the Travelers Agreement after
giving effect to any applicable cure periods and any waivers thereof; an 

 4
 

 

“Event of Default” shall have occurred under and as defined in Section
6.01 of the Note Indenture; or an “Event of Default” shall have occurred under
and as defined in Section 10.1 of the Wells Fargo Agreement.

(h)           The
following definitions are hereby added to Schedule I of the Credit Agreement in
the appropriate alphabetical locations:

“Permitted Wells Fargo Facility Collateral”
means accounts receivable originated by the Borrower or one of its Subsidiaries
and arising out of the rendering of services by the Borrower or such Subsidiary
outside the United States of America, inventory related to such accounts
receivable, general intangibles related to such accounts receivable and
inventory, joint venture interests owned by the Borrower or any Subsidiary with
respect to joint ventures formed to render services by the Borrower or such
Subsidiary outside the United States of America, cash collateral delivered
pursuant to the terms of the Wells Fargo Agreement to satisfy borrowing base
shortfalls or pursuant to the remedies provisions of such agreement, other
property related to the foregoing or approved in writing by the Administrative
Agent, deposit accounts into which only proceeds of the foregoing property are
deposited, proceeds of the foregoing, and books and records with respect to the
foregoing.

“Wells Fargo Agreement” means that
certain International Letter of Credit Agreement among the Borrower, Great
Lakes and Wells Fargo HSBC Trade Bank, N.A., as refinanced or replaced in whole
or in part from time to time, as permitted hereunder.

“Wells Fargo Documents” means the
Wells Fargo Agreement and each of the “International Loan Documents”, the “Borrower
Agreement”, the “Fast Track Agreement”, the “Fast Track Borrower Agreement
Supplement” and the “Ex-Im Bank Guaranty” (as such terms are defined in the
Wells Fargo Agreement), in each case, as refinanced or replaced in whole or in
part from time to time, as permitted hereunder.

3.             Consent to Reflagging of the Sugar Island and the Manhattan Island.     Subject to the satisfaction of each of the
General Conditions and the Reflagging Conditions (as defined in Section 7
hereof), (i) each of the Lenders hereby irrevocably authorizes the
Administrative Agent to enter into such amendments, modifications and
supplements to the Loan Documents and any other agreements that the
Administrative Agent determines in its sole discretion is necessary or
appropriate to effect the consummation of the Reflagging and (ii) promptly upon
the receipt of a written request of Great Lakes or the Borrower to the
Administrative Agent, the Administrative Agent shall enter into such
amendments, modifications and supplements to the Loan Documents and any other
agreements that the Administrative Agent determines in its sole discretion is
necessary or appropriate to effect the consummation of the Reflagging.

4.             Consent and Waiver with respect
to Mergers.  (a) Subject to the
satisfaction of each of the General Conditions and the Holdings Merger
Conditions (as defined in Section 7 hereof), each of the Lenders (i)
consents to the consummation of the Holdings Merger 

 5
 

 

notwithstanding any
violation of Sections 6.1(a) or 6.2(a) that would otherwise result therefrom,
and waives any Event of Default arising under Section 7.1(i) as a result of
such Merger, and (ii) agrees that such Merger shall be deemed to be a merger
permitted under Section 6.2(a)(i) of the Credit Agreement for all purposes
under the Credit Agreement.

(b) Subject to the
satisfaction of each of the General Conditions and the Merger Sub Merger
Conditions (as defined in Section 7 hereof) and the consummation of the
Holdings Merger, each of the Lenders (i) consents to the consummation of Merger
Sub Merger notwithstanding any violation of Sections 6.1(a) or 6.2(a) that
would otherwise result therefrom, and waives any Event of Default arising under
Section 7.1(i) as a result of such Merger, and (ii) agrees that such Merger
shall be deemed to be a merger permitted under Section 6.2(a)(i) of the Credit
Agreement for all purposes under the Credit Agreement.

(c) Subject to the
satisfaction of each of the General Conditions and the Borrower Merger
Conditions (as defined in Section 7 hereof) and the consummation of the
Holdings Merger and the Merger Sub Merger, each of the Lenders (i) consents to
the consummation of the Borrower Merger notwithstanding any violation of
Sections 6.1(a) or 6.2(a) that would otherwise result therefrom, and waives any
Event of Default arising under Section 7.1(i) as a result of such Merger, and
(ii) agrees that such Merger shall be deemed to be a merger permitted under
Section 6.2(a)(i) of the Credit Agreement for all purposes under the Credit
Agreement.

(d) The Borrower
hereby agrees to deliver to the Administrative Agent a certificate evidencing
the consummation of each Merger from the office of the Secretary of State of
the State of Delaware within 5 days of the date of the consummation of such
Merger.

(e)  Upon the consummation of the Mergers in
accordance with this Agreement, all references to and provisions specifically
involving Holdings in the Loan Documents (including, without limitation,
Section 6.2(k)(ii) of the Credit Agreement) shall no longer be effective and
Holdings shall no longer be deemed a part to any of the Loan Document
(including the Loan Party Guaranty).

(f)  In the event that the Merger Sub Merger is
not consummated on or before the fifth Business Day immediately following the
consummation of the Holdings Merger, then, on or before such date, the Borrower
shall cause the surviving corporation with respect to the Holdings Merger to
execute and deliver to the Administrative Agent a Reaffirmation Agreement
(after giving effect to the Holdings Merger) in form and substance acceptable
to the Administrative Agent and deliver such additional opinions and
certificates as may be reasonably requested by the Administrative Agent with
respect to such Reaffirmation Agreement.

(g)  In the event that the Merger Sub Merger is
consummated and the Borrower Merger is not consummated on or before the fifth
Business Day immediately following the consummation of the Holdings Merger,
then, on or before such date, the Borrower shall cause the surviving
corporation with respect to the Merger Sub Merger to execute and deliver to the
Administrative Agent a Reaffirmation Agreement (after giving effect to the
Merger Sub Merger) in form and substance acceptable to the Administrative Agent
and deliver such additional opinions and certificates as may be reasonably
requested by the Administrative Agent with respect to such Reaffirmation
Agreement.

 6
 

 

The Borrower’s failure to
timely comply with any of its obligations under foregoing paragraphs (d), (f)
and (g) of this Section shall constitute immediate Events of Default and shall
not be subject to any grace periods notwithstanding anything in Section 7.1 of
the Credit Agreement to the contrary.

5.             New Subsidiary Requirements.  The Administrative Agent hereby waives (and
each Lender hereto authorizes the Administrative Agent to waive) the New
Subsidiary Requirements with respect to Newco so long as (i) Newco merges with
and into Great Lakes on its date of formation or incorporation of Newco, as
applicable, and (ii) Great Lakes delivers to the Administrative Agent a
certificate evidencing the consummation of the merger of Newco and Great Lakes
from the office of the Secretary of State of the State of Delaware within 5
days of the date of the formation or incorporation, as applicable, of Newco
(the “Merger Evidence”).  If any
of the requirements in clauses (i) or (ii) of the foregoing are not satisfied,
Newco shall promptly comply with the New Subsidiary Requirements.

6.             General Conditions.             The “General Conditions” shall be
deemed to be satisfied upon the Administrative Agent’s receipt of each of the
following, in each case in form, substance and scope reasonably acceptable to
the Administrative Agent:

(a)           executed
counterparts of this Agreement executed by Authorized Officers of the Borrower
and the other Loan Parties, and by duly authorized officers of the Majority
Lenders;

(b)           a
certificate of the secretary or assistant secretary of the Borrower certifying
as to (i) the currency and authenticity of the resolutions of the board of
directors of the Borrower authorizing its execution, performance and delivery
of this Agreement and of the Credit Agreement as to be amended hereby, (ii) the
names, signatures and incumbency of the officers of the Borrower and (iii) the
currency and authenticity of the certificate of incorporation and bylaws of the
Borrower as previously delivered to the Administrative Agent;

(c)           payment
in full of all fees and reasonable expenses due to the Administrative Agent and
to Banc of America Securities, LLC in its capacity as the arranger with respect
to this Agreement (including, without limitation, reasonable fees and
disbursements of legal counsel); and

(d)           payment
in full from the Borrower, in immediately available funds, of an amendment fee
payable to each Lender (each, a “Consenting Lender”) executing and
delivering a counterpart signature page to this Agreement on or before 3:00
p.m. (Chicago, Illinois time) on August 28, 2006 in an amount equal to 0.05% of
the sum of such Lender’s Revolving Commitment, plus the outstanding
principal balance of such Lender’s Tranche B Term Loan (the “Amendment Fee”).

7.             Wells Fargo Facility Conditions;
Reflagging Conditions; Merger Conditions.

(a)           Wells
Fargo Facility Conditions.  Subject
to the satisfaction of the General Conditions, the provisions of Section 1
of this Agreement shall be deemed to have become 

 7
 

 

effective upon the Administrative Agent’s receipt of each of the
following, in each case in form, substance and scope reasonably acceptable to
the Administrative Agent (the “Wells Fargo Facility Conditions”):

(i)            evidence that all
conditions precedent to an amendment or consent to the Travelers Agreement (the
“Travelers Amendment”) dated on or about the date hereof permitting the
Wells Fargo Facility have been satisfied and that such amendment or consent is
in form and substance reasonably acceptable to the Administrative Agent;

(ii)           an opinion letter of Winston & Strawn LLP, counsel to the
Borrower, addressed to the Administrative Agent and the Lenders, addressing
matters related to this Agreement, the Wells Fargo Agreement and the Credit
Agreement as amended hereby;

(iii)          a certificate of a
responsible officer of the Borrower certifying that, (A) no Default or Event of
Default has occurred and is continuing, both before and immediately after
giving effect to the consummation of the Wells Fargo Agreement and (B) the
representations and warranties contained in Section 5.1 of the Credit Agreement
and each of the other Loan Documents are true and correct in all material
respects on and as of the date of the consummation of the Wells Fargo Agreement
as though made on such date except for any representation or warranty which is
specified as being made as of an earlier date, in which case such
representation or warranty shall only speak as of such earlier date; and

(iv)          a
certificate of a responsible officer of the Borrower certifying that attached
thereto are final copies of (A) the Wells Fargo Agreement, (B) each other
material “International Loan Document” (as defined in the Wells Fargo Agreement),
which agreements and documents described in clauses (A) and (B) above shall be
in form and substance acceptable to the Administrative Agent, and (C) the “Ex-Im
Bank Guaranty” (as defined in the Wells Fargo Agreement).

(b)           Reflagging
Conditions.  Subject to the
satisfaction of the General Conditions, the provisions of Section 2 of
this Agreement shall be deemed to have become effective upon the Administrative
Agent’s receipt of each of the following, in each case in form, substance and
scope reasonably acceptable to the Administrative Agent (the “Reflagging
Conditions”):

(i)            such agreements,
documents, certificates and filings effecting or otherwise governing the
Reflagging, together with evidence satisfactory to the Administrative Agent
that the Administrative Agent continues to have a continuing, first-priority,
perfected security interest in each of the Sugar Island
and the Manhattan Island after giving effect to
the Reflagging;

(ii)           a certificate of a
responsible officer of the Borrower certifying that, (A) no Default or Event of
Default has occurred and is continuing, both before and immediately after
giving effect to the consummation of the Reflagging and (B) the representations
and warranties contained in Section 5.1 of the Credit Agreement and each of the
other Loan Documents are true and correct in all material respects on and as of
the date of the consummation of the Reflagging as though made on such date
except for any 

 8
 

 

representation
or warranty which is specified as being made as of an earlier date, in which
case such representation or warranty shall only speak as of such earlier date;
and

(iii)          such legal opinions
from counsel to Great Lakes, addressed to the Administrative Agent and the
Lenders, addressing matters related to the Reflagging as the Administrative
Agent may reasonably request.

(c)           Holdings
Merger Conditions.  Subject to the
satisfaction of the General Conditions, the provisions of Section 4(a)
of this Agreement shall be deemed to have become effective upon the
Administrative Agent’s receipt of each of the following, in each case in form,
substance and scope reasonably acceptable to the Administrative Agent (the “Holdings
Merger Conditions”):

(i)            evidence that
Borrower has received all of the proceeds of the cash payments contemplated by
Section 5C(vi) of the Merger Agreement, net of 
fees and expenses related to the transactions contemplated by the Merger
Agreement (the “Net Merger Proceeds”);

(ii)           evidence that all
of the Net Merger Proceeds have been applied in accordance with Section 2.8.2
of the Credit Agreement to the prepayment of the Tranche B Term Loans (and
reapplied, as necessary, to result in the maximum amount of the Tranche B Term
Loan to be repaid), or, to the extent any proceeds remain after so applying or
reapplying such proceeds, to the prepayment of the outstanding Revolving Loans
(without any permanent reduction to the Revolving Commitments);

(iii)          an opinion letter
of Winston & Strawn LLP, counsel to the Borrower, addressed to the
Administrative Agent and the Lenders, addressing matters related to this
Agreement and the Holdings Merger, in each case, as the Administrative Agent
may reasonably request;

(iv)  evidence reasonably
satisfactory to the Administrative Agent of the consummation of the Holdings
Merger;

(v)   evidence that all conditions
precedent to the Holdings Merger set forth in the Merger Agreement have been
satisfied (with any material amendment, waiver or modification to the Merger
Agreement being in form and substance reasonably satisfactory to the
Administrative Agent) unless the failure to satisfy of any such condition
precedent is waived by the Administrative Agent;

(vi)  a certificate of a
responsible officer of the Borrower certifying that, (A) no Default or Event of
Default has occurred and is continuing, both before and immediately after
giving effect to the consummation of the Holdings Merger and (B) the
representations and warranties contained in Section 5.1 of the Credit Agreement
and each of the other Loan Documents are true and correct in all material
respects on and as of the date of the consummation of such Merger as though
made on such date except for any representation or warranty which is specified
as being made as of an earlier date, in which case such representation or
warranty shall only speak as of such earlier date;

 9
 

 

(vii) copies of all opinions of
counsel for Holdings and any Affiliates thereof to the extent that such
opinions are delivered to Holdings or any Affiliates thereof in connection with
the Holdings Merger; and

(viii)        a certificate of a
responsible officer of the Borrower certifying that attached thereto are final
copies of each other material agreement or document requested by the
Administrative Agent and executed by or delivered in connection with the  Holdings Merger, in each case, in form and
substance reasonably acceptable to the Administrative Agent.

(d)           Merger
Sub Merger Conditions.  Subject to
the satisfaction of the General Conditions and the Holdings Merger Conditions,
the provisions of Section 4(b) of this Agreement shall be deemed to have
become effective upon the Administrative Agent’s receipt of each of the
following, in each case in form, substance and scope reasonably acceptable to
the Administrative Agent (the “Merger Sub Merger Conditions”):

(i) an opinion letter of Winston & Strawn LLP, counsel to the
Borrower, addressed to the Administrative Agent and the Lenders, addressing
matters related to this Agreement and the Merger Sub Merger, in each case, as
the Administrative Agent may reasonably request; and

(ii) evidence reasonably satisfactory to the Administrative Agent of
the consummation of the Merger Sub Merger; and

(iii) a certificate of a responsible officer of the Borrower certifying
that, (A) no Default or Event of Default has occurred and is continuing, both
before and immediately after giving effect to the consummation of the Merger
Sub Merger and (B) the representations and warranties contained in Section 5.1
of the Credit Agreement and each of the other Loan Documents are true and
correct in all material respects on and as of the date of the consummation of
such Merger as though made on such date except for any representation or
warranty which is specified as being made as of an earlier date, in which case
such representation or warranty shall only speak as of such earlier date.

(e)           Borrower
Merger Conditions.  Subject to the
satisfaction of the General Conditions, the Holdings Merger Conditions and the
Merger Sub Merger Conditions, the provisions of Section 4(c) of this
Agreement shall be deemed to have become effective upon the Administrative
Agent’s receipt of each of the following, in each case in form, substance and
scope reasonably acceptable to the Administrative Agent (the “Holdings_Merger
Conditions”):

(i) a Secretary’s Certificate for Borrower (after giving effect to the
Borrower Merger) certifying as to and attaching copies of Borrower’s
certificate of incorporation, by-laws and resolutions adopted by the board of
directors of the Borrower approving or ratifying the Borrower Merger and the
Reaffirmation Agreement, together with evidence of incumbency;

(ii) an opinion letter of Winston & Strawn LLP, counsel to the
Borrower, addressed to the Administrative Agent and the Lenders, addressing
matters related to this 

 10
 

 

Agreement and
the Borrower Merger, in each case, as the Administrative Agent may reasonably
request; and

(iii) evidence reasonably satisfactory to the Administrative Agent of
the consummation of the Borrower Merger; and

(iv) a Reaffirmation Agreement between Borrower (after giving effect to
the Borrower Merger) and the Administrative Agent;

(v) Good Standing Certificates for Holdings, Borrower, Aldabra Merger
Sub and Great Lakes Holdings from the Secretary of State of the State of
Delaware; and

(vi) a certificate of a responsible officer of the Borrower certifying
that, (A) no Default or Event of Default has occurred and is continuing, both
before and immediately after giving effect to the consummation of the Borrower
Merger and (B) the representations and warranties contained in Section 5.1 of
the Credit Agreement and each of the other Loan Documents are true and correct
in all material respects on and as of the date of the consummation of such
Merger as though made on such date except for any representation or warranty
which is specified as being made as of an earlier date, in which case such
representation or warranty shall only speak as of such earlier date.

8.             Representations, Warranties and
Covenants.

(a)           The
Borrower and each other Loan Party hereby represents and warrants that this
Agreement and the Credit Agreement as amended hereby (collectively, the “Amendment
Documents”) constitute legal, valid and binding obligations of the Borrower
and the other Loan Parties enforceable against the Borrower and the other Loan
Parties in accordance with their terms.

(b)           The
Borrower and each other Loan Party hereby represents and warrants that (i) its
execution, delivery and performance of this Agreement and the Credit Agreement
have been duly authorized by all proper corporate or limited liability company
action, do not violate any provision of its organizational documents, will not
violate any law, regulation, court order or writ applicable to it, and will not
require the approval or consent of any governmental agency, or of any other third
party under the terms of any contract or agreement to which it or any of its
Affiliates is bound (which has not been previously obtained), including without
limitation, the Note Indenture and the Bonding Agreement and (ii) after giving
effect to the amendments contemplated by Sections 1 and 2 of this
Agreement, all Obligations will constitute, and if the full amount of the
Revolving Commitment were utilized by the Borrower all Obligations arising with
respect thereto would constitute, “Permitted Debt” under and as defined in
Section 4.09 of the Note Indenture.

(c)           The
Borrower and each other Loan Party hereby represents and warrants that, both
before and after giving effect to the provisions of this Agreement, (i) no
Default or Event of Default has occurred and is continuing or will have
occurred and be continuing and (ii) all of the representations and warranties
of the Borrower and each other Loan Party contained in the Credit Agreement and
in each other Loan Document (other than representations and warranties which,
in accordance with their express terms, are made only as of an earlier
specified date) are, and 

 11
 

 

will be, true and correct as of the date of its execution and delivery
hereof or thereof in all material respects as though made on and as of such
date.

(d)           The
Borrower hereby agrees to pay the Amendment Fee to the Administrative Agent for
the benefit of the Consenting Lenders, upon the Borrower’s execution and
delivery hereof.

9.             Reaffirmation, Ratification and
Acknowledgment.  The Borrower and each
other Loan Party hereby (a) ratifies and reaffirms all of its payment and
performance obligations, contingent or otherwise, and each grant of security
interests and liens in favor of the Administrative Agent, under each Loan
Document to which it is a party, (b) agrees and acknowledges that such
ratification and reaffirmation is not a condition to the continued
effectiveness of such Loan Documents and (c) agrees that neither such
ratification and reaffirmation, nor the Administrative Agent’s, or any Lender’s
solicitation of such ratification and reaffirmation, constitutes a course of
dealing giving rise to any obligation or condition requiring a similar or any
other ratification or reaffirmation from the Borrower or such other Loan
Parties with respect to any subsequent modifications to the Credit Agreement or
the other Loan Documents.  As modified
hereby, the Credit Agreement is in all respects ratified and confirmed, and the
Credit Agreement as so modified by this Agreement shall be read, taken and so
construed as one and the same instrument. 
Each of the Loan Documents shall remain in full force and effect and are
hereby ratified and confirmed.  Neither
the execution, delivery nor effectiveness of this Agreement shall operate as a
waiver of any right, power or remedy of the Administrative Agent or the
Lenders, or of any Default or Event of Default (whether or not known to the
Administrative Agent or the Lenders), under any of the Loan Documents.  This Agreement and each of the other
Amendment Documents shall constitute Loan Documents for purposes of the Credit
Agreement.

10.           Governing Law.   THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO ITS CONFLICTS OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

11.           Administrative Agent’s Expenses.   The Borrower hereby agrees to promptly
reimburse the Administrative Agent for all of the reasonable out-of-pocket
expenses, including, without limitation, attorneys’ and paralegals’ fees, it
has heretofore or hereafter incurred or incurs in connection with the
preparation, negotiation and execution of this Agreement and the other
documents, agreements and instruments contemplated hereby.

12.           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original and all of which together
shall constitute one and the same agreement among the parties.

* * * *

 

 12

 

 

IN WITNESS WHEREOF, this
Agreement has been duly executed as of the day and year first above written.

	
  

  	
  GREAT LAKES DREDGE & DOCK

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GLDD ACQUISITIONS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GREAT LAKES DREDGE & DOCK

  COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  GREAT LAKES CARIBBEAN DREDGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DAWSON MARINE SERVICES COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIFTY-THREE DREDGING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William H. Hanson

  
	
   

  	
  Name:

  	
  William H. Hanson

  
	
   

  	
  Title:

  	
  President

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  NORTH AMERICAN SITE DEVELOPERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JDC SOIL MANAGEMENT & 

  DEVELOPMENT INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NASDI HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Deborah A. Wensel

  
	
   

  	
  Name:

  	
  Deborah A. Wensel

  
	
   

  	
  Title:

  	
  Sr. Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  BANK OF AMERICA, N.A., as Administrative 

  Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Brashler

  
	
   

  	
  Name:

  	
  Michael Brashler

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as a Lender and 

  as Issuing Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald Prince

  
	
   

  	
  Name:

  	
  Ronald Prince

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  CREDIT SUISSE

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  DRYDEN V - LEVERAGED LOAN CDO 2003

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen J. Collins

  
	
   

  	
  Name:

  	
  Stephen J. Collins

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  FIFTH THIRD BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  ING SENIOR INCOME FUND

  
	
   

  	
   

  
	
   

  	
  By:

  	
  ING Investment Management Co. as its 

  Investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theodore M. Haag

  
	
   

  	
  Name:

  	
  Theodore M. Haag

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  KENNECOTT FUND

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  LASALLE BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Sauerman

  
	
   

  	
  Name:

  	
  David L. Sauerman

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  LEHMAN COMMERCIAL PAPER INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maria M. Lund

  
	
   

  	
  Name:

  	
  Maria M. Lund

  
	
   

  	
  Title:

  	
  Authorized signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  MASTER SENIOR FLOATING RATE TRUST

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  MONUMENT PARK CDO LTD

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James C. Ritchie

  
	
   

  	
  Name:

  	
  James C. Ritchie

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  NORTHERN TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Illegible

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  OAK BROOK BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Henry Wessel

  
	
   

  	
  Name:

  	
  Henry Wessel

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  OAK HILL CREDIT

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  WELLS FARGO BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Reginald M. Goldsmith, III, CFA

  
	
   

  	
  Name:

  	
  Reginald M. Goldsmith, III, CFA

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
   

  	
  OPPENHEIMER SFR

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  UBS AG STAMFORD BRANCH

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher M. Aitkin

  
	
   

  	
  Name:

  	
  Christopher M. Aitkin

  
	
   

  	
  Title:

  	
  Associate Director Banking Products Services, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R. Otsa

  
	
   

  	
  Name:

  	
  Irja R. Otsa

  
	
   

  	
  Title:

  	
  Associate Director Banking Products

  Services, US

  

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit Agreement

 

 

	
  

  	
  VAN KAMPEN SENIOR LOAN FUND

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

 

Signature Page to Consent, Waiver and Amendment No. 5
to Credit AgreementExhibit
10.1

EMPLOYMENT AGREEMENT

This
EMPLOYMENT AGREEMENT (“Agreement”) is made by and between
Robb S. Chase (“Employee”) and PAPA JOHN’S INTERNATIONAL, INC., a corporation
organized and existing under the laws of the State of Delaware (“Company”), as
of the 25th day of August, 2006.

W
I T N E S S E T H:

WHEREAS, Company desires to hire and employ
Employee, and Employee desires to be employed by Company, pursuant to the terms
and conditions hereinafter provided.

WHEREAS, Employee’s position with the Company
requires that Employee be trusted with extensive responsibility and
confidential information of the Company.

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and in
consideration of the mutual covenants and obligations herein contained, the
Company and the Employee (individually, a “Party”; together, the “Parties”),
intending to be legally bound, agree as follows:

Section 1:              Employment and Term

1.1           Employment.  Company agrees to and does hereby employ
Employee, and Employee agrees to and does hereby accept employment by Company,
on the terms and subject to the conditions set forth in this Agreement
effective as of the Effective Date.

1.2           Term of
Employment.  Employee shall be and is
hereby employed by Company commencing on September 5, 2006 (the “Effective Date”)
and continuing until termination of employment as provided for in Section
7 of this Agreement
(the “Term”). The parties agree that discussions concerning the
possible renewal of this Agreement will begin in the third year of the Term.

1.3           Standard of
Services Required.  Employee shall
(a) devote his full business time and energy to the business and affairs of the
Company and any additional gainful employment shall not be undertaken without
first notifying and obtaining approval from the Board of Directors of Company;
(b) perform his duties hereunder diligently and to the best of his ability; (c)
use his best efforts, skills and abilities to promote the Company’s interests;
(d) reside in the Louisville, Kentucky area; and (e) perform such other duties
and services for the Company as may be required of him by virtue of his
position, or as directed by the CEO or the Board of Directors of the Company
(the “Board”).  Employee agrees to comply,
and cause the Company to comply, with all applicable governmental regulations
and guidelines which relate to Company products, services, methods and
technologies with which Employee’s duties and services are related.  Employee also agrees to comply fully with all
policies and practices of the Company. 
The Company recognizes Employee’s position as a Director of Sleeman’s
Breweries and agrees that service on that Board or local charitable or
philanthropic boards will not be construed as a violation of this provision, so
long as such service is reasonable in scope and dedication of time.  The Company agrees that during the Term,
Employee will not be required to relocate his permanent residence from the
Louisville, KY area without his prior consent.

1.4           Position and
Duties.  Employee shall serve in the
position identified on Schedule A
attached hereto  and incorporated by
reference herein (or such other position of similar responsibility as may be
assigned by  the  CEO or the Board).  Employee shall at all times report to, and
his business activities shall at all times be subject to the direction and
control of the CEO and the Board. 
Employee’s duties and services include, but are not limited to, those
matters identified on Schedule A.

Section 2:              Compensation and Benefits

2.1           Compensation.  During the term of Employee’s employment by
the Company pursuant to this Agreement, Company shall pay Employee compensation
and provide Employee with benefits as follows:

2.1.1        Base Salary.  In consideration of the duties and services
to be rendered by Employee to Company, Company will pay to Employee a salary (“Base
Salary”) in the amount identified as such on Schedule
A hereto.  Base Salary shall
be payable on a weekly basis or as the Company’s pay practices shall be established
or modified from time to time.  Base
Salary payments shall be subject to all applicable Federal, state and local
withholding, payroll and other taxes.

2.1.2        Bonus.  Employee will be eligible to receive annual
bonus payments in an amount and under those terms and conditions described on Schedule A.  Bonus payments shall be subject to all
applicable Federal, state and local withholding, payroll and other taxes.  Employee shall also be entitled to
participate in the Company’s Long Term Incentive Program (“LTIP”) under the
terms, conditions, contingencies and vesting criteria applicable to Employee on
the date of execution of this Agreement and as amended from time to time by the
Compensation Committee or the Board.  A
copy of the LTIP plan presently in place has been provided to Employee.  Company represents that there are no material
changes to that plan presently under consideration.

2.2           Employee Benefit
Plans.  During the term of his
employment with Company, Employee shall be entitled to (a) four weeks vacation
(b) such sick, holiday and other absences consistent with Company’s policies as
established and modified from time to time by the Board; (c) such
hospitalization and major medical insurance benefits as are, from time to time,
maintained and modified by Company for its employees.  Employee’s entitlement to, and participation
in, such benefit plans shall be subject to the same eligibility requirements
and cost assessment policies as shall apply to other employees who are eligible
to participate therein.  Vacation or
other paid time off which is not used in any year may accrue in accordance with
Company policy. Company shall not be liable for any such benefits not used by
Employee prior to the termination of his employment with Company.

2.3           Employee Expenses.  Company agrees that it will reimburse
Employee for all reasonable business expenses incurred by him during the term
of Employee’s employment hereunder, provided that such expenses be incurred in
connection with the performance by Employee of his duties hereunder and are
incurred and accounted for by Employee in accordance with Company’s policies as
established for its employees.

Section 3:              Confidentiality and Non-Disclosure

3.1           Non-Disclosure of
Confidential Information.  Employee
acknowledges that during his employment by Company, Employee shall have access
to and possession of information which (a) is proprietary and confidential; (b)
belongs to and represents the sole and exclusive property of the Company and/or
its affiliates; and (c) is a unique asset integral to the Business of the
Company for which the Company has paid a substantial amount, and the use or
disclosure of which contrary to the requirements of this Agreement would cause
the Company irreparable harm and damage. 
Except as otherwise provided for in this Agreement, as may be required by law, or as
authorized in writing by Company and for its benefit, or as required in the
performance of his duties hereunder, (a) Employee will not at any time, whether
during or after the termination or cessation of Employee’s employment,
disclose, distribute, or disseminate to any person, firm, partnership, joint
venture, corporation, limited liability company, or other entity (“Person”), or
make public, any Confidential Information (as defined below); and (b) Employee
will keep strictly confidential all matters and information entrusted to the
Employee 

 2
 

and shall not use or attempt to use any such Confidential Information
in any manner which may injure or cause loss, or may be calculated to injure or
cause loss, whether directly or indirectly, to Company.

3.2           Nature and
Definition of “Confidential Information”. 
“Confidential Information” means and includes any and all of the
following, whether or not patentable, registrable or otherwise susceptible to
protection under federal, state or foreign patent, trademark, copyright and
other laws:

3.2.1        intellectual property, inventions,
concepts, discoveries, improvements, inventions, methods, information,
processes, practices, specifications, techniques, products, devices,
technologies, data, know-how, and other proprietary rights;

3.2.2        designs, drawings, photographs, graphs,
samples, sketches, compositions, computer software and database technologies
and applications, computer software and programs (including object code and
source code), and related documentation to all of the above;

3.2.3        any trade secrets concerning the
Business or affairs of the Company, financial, and operating information,
service specifications and concepts, marketing plans, budgets, the names and
terms of employment of key personnel, strategies, customer lists, pricing
policies and lists, services, and procedures; and

3.2.4        notes, analyses, studies, summaries and
other material prepared by or for Company containing or based on, in whole or
in part, any information included in the foregoing.

3.2.5         “Confidential Information” shall not
include (i) information which the Employee already had in his possession
without confidential limitation at the time of disclosure by the Company; (ii)
information known or that becomes known to the general public without breach of
this Agreement by the Employee; or, (iii) information that is received
rightfully and without confidential limitation by the Employee from a third
party.

3.3           Permitted Disclosure.  If Employee is required by deposition,
interrogatories, requests for information or documents, subpoena, civil
investigative domain or other legal process to disclose all or any part of any
Confidential Information, Employee will first provide Company with prompt
notice of such requirement, as well as notice of the terms and circumstances
surrounding such requirements, so that Company may seek an appropriate
protective order or waive compliance with the provisions of this Agreement in
writing.  In any event, Employee may only
disclose that portion of such Confidential Information as he is advised in
writing by his and the Company’s legal counsel as being required to be
disclosed.

3.4           Destruction or
Return on Termination.  Upon
termination of Employee’s employment hereunder, Employee shall, upon request of
Company, return to Company all writings and materials comprising any part of
the Confidential Information without retaining any copies, extracts or other
reproductions thereof; and, to the extent not returned to Company, Employee
will certify in writing to Company any such materials or writings which were
destroyed by him.

Section 4:              Ownership of Employee Inventions

4.1           Inventions and
Related Matters.  Employee agrees
that Company shall have sole and exclusive ownership rights in any conception,
ideas, invention, improvement, or know-how (whether or not patentable) arising
out of, resulting from, or derivative of Employee’s duties and services as an
employee of Company or undertaken within the scope of Employee’s duties
hereunder.  Any resulting or derivative
rights, including patent, trademark, service mark or other rights, shall be and
become the exclusive 

 3
 

property of Company and Company shall be exclusively entitled to the
entire right, title and interest existing with respect hereto.  In furtherance thereof, at Company’s request,
Employee agrees to convey and assign to Company the entire right, title and
interest of Employee, if any, in and to any conceptions, ideas, inventions,
improvements, or know-how which arise out of, result from, or are derivative
of, Employee’s duties and services as an employee of Company or undertaken
within the scope of his duties hereunder.

4.2           Original Works.  Any work subject to protection under
applicable copyright laws (including, but not limited to, software code and
applications), whether published or unpublished, created by Employee in
connection with or during the performance of his duties or services hereunder
shall be considered a work made for hire to the fullest extent permitted by
law, and all right, title and interest therein, including the worldwide
copyrights, shall be the sole and exclusive property of Company as the employer
and party specially commissioning such work. 
In the event that any such copyrightable work or portion thereof shall
not be legally qualified as a work made for hire or shall subsequently be so
held, Employee agrees to properly convey to Company the entire right, title and
interest in and to such work or portion thereof, including but not limited to
the worldwide copyrights, extensions of such copyrights, and renewal copyrights
therein, and further including all rights to reproduce the copyrighted work, to
prepare derivative works based on the copyrighted work, to distribute copies of
the copyrighted work, to display the copyrighted work, and to register the
claim of copyright therein and to execute any and all documents with respect
hereto.

4.3           Employee
Assistance.  Employee agrees (a) to
disclose to Company in writing any matters created or authored by him which
are, or are intended to be, the property of Company pursuant to the provisions
of this Section 4; (b) to assign to Company without additional compensation all
of Employee’s rights, if any, therein; and (c) to execute and deliver to
Company such applications, assignments and other documents as Company may
reasonably request in order to apply for and obtain patents, copyrights, or
other registrations with respect thereto.

Section 5:              Employee’s Conduct;
Non-Contravention

5.1           Employee’s
Conduct.  In order to maintain and
enhance Company’s standing and integrity in the business community, the
business and personal conduct of Employee shall be totally professional and
above reproach; and Employee shall at all times observe the highest standards
of professionalism and courtesy in Employee’s behavior with the public,
colleagues, employees, customers and competitors.

5.2           Non-Contravention.  Employee represents and warrants that he is
under no obligation to, and/or no conflict or non-compete agreements or
understandings exist with, any person which are in any way inconsistent with,
or which impose any restriction upon, Employee’s acceptance of employment under
this Agreement with the Company. 
Employee is not in default under, or in breach of, any agreement
requiring Employee to preserve the confidentiality of any information, client
lists, trade secrets or other confidential information; and neither the
execution and delivery of this Agreement nor the performance by Employee of
Employee’s obligations under this Agreement will conflict with, result in a
breach of, or constitute a default under, any employment or confidentiality
agreement to which Employee is a party or to which Employee may be subject.

 4
 

Section 6:               Non-Competition
and Non-Solicitation

6.1           Acknowledgments
by Employee.  Employee acknowledges
that: (a) the services to be performed by him under this Agreement are of a
special, unique, unusual and intellectual character; (b) Company’s Business is,
or is expected to be, international in scope, Company’s processes and
technologies having wide application throughout the world; (c) Company competes
with persons having access to markets and capital similar or superior to that
possessed by the Company; (d) the restrictive covenants applicable to Employee
will not prevent Employee from obtaining other gainful employment after
separating from Company; (e) the provisions of this Section are reasonable and
necessary in order to protect Company’s Business; and (f) Employee has
consulted with, or been advised by the Company that he should consult with, an
independent legal counsel concerning the undertakings of the Employee set forth
in, and the provisions of, this Agreement.

6.2           Covenants of
Employee.  In consideration of the
foregoing acknowledgments by Employee, and in consideration of the compensation
and benefits to be paid or provided to Employee by Company, Employee covenants
and agrees that he will not, directly or indirectly:

6.2.1        during the period of,
and except in the course of, his employment hereunder, and for three (3) years
after termination of employment hereunder, on behalf of himself or any person,
engage or invest in, solicit investment in, own, manage, operate, finance,
control, be employed by or associated with, provide services or advice to, be a
director of, or participate in the ownership, management, operation, or
development of, or otherwise be associated or connected with, [a] any pizza
restaurant chain with 200 or more restaurants which directly or indirectly
operates restaurants serving pizza which are competitive with the Company or
its affiliates, [b] any food service manufacturing and/or distribution business
which serves any pizza restaurant chains with 200 or more restaurants and which
are competitive with the Company at any time during Employee’s tenure with the
Company, or [c] any other food or restaurant business which the Company may
develop or acquire during Employee’s tenure with the Company and with which the
Employee has had direct involvement; provided, however, that nothing herein
will preclude Employee from owning and holding not more than one percent (1%)
of any class of securities of any enterprise if such securities are listed on
any national or regional exchange or have been registered under Section 12(g) of
the Securities Act of 1934; or

6.2.2        without
the prior written consent of Company, during the period of, and except in the
course of, his employment hereunder, and for three (3) years after termination
of employment hereunder solicit any of Company’s contractors, employees or
other related parties or any of the Company’s suppliers if the intent or result
of such solicitation will have a negative impact upon the Company.

6.2.3        except
on behalf of the Company, whether for the Employee’s account or for the account
of any other person, at any time during the period of his employment hereunder,
and for three (3) years after termination of employment hereunder, solicit for
the benefit of any business which directly or indirectly operates pizza
restaurants the patronage of any person if such person is a customer or
prospective customer of the Company, or was a customer of the Company during
any time within 12 months prior to termination of employment, whether or not
Employee had personal contact with such person during the term of his
employment by the Company.

 5
 

Section 7:              Termination

7.1           Termination by
the Company.  Employee’s employment
with Company under this Agreement, and Employee’s rights to compensation and
benefits under this Agreement or otherwise, shall terminate (except as
otherwise herein provided) as follows:

7.1.1        Death or Disability.  This Agreement and Employee’s engagement
hereunder shall terminate upon the death of Employee.  If Employee becomes substantially unable to
perform the essential duties and functions of his position under this Agreement
with or without reasonable accommodation for a period of one hundred and eighty
(180) consecutive days or more during the Term because of a disability or any
medically determinable physical or mental impairment, Company may, at its
election, terminate Employee’s employment hereunder and all of Company’s
obligations relating thereto, including any obligations it may have under this
Agreement, by giving Employee ten (10) days prior written notice.  Upon termination pursuant to this Section,
Employee shall not be entitled to any Base Salary, Bonus, LTIP, severance
salary, or any other benefits, except for amounts accrued and earned prior to
the effective date of termination and except for those, if any, required to be
extended by applicable law.

7.1.2        Termination By Company For “Cause”.  Company may, in its sole and exclusive
discretion, immediately and unilaterally, terminate Employee’s employment
hereunder for “cause” at any time. 
Termination shall be for “cause” if it is based on any of the following:
(i) indictment or conviction of Employee of any felony, or of any misdemeanor
reasonably determined by the Company to involve moral turpitude; (ii) Employee’s
acts or omissions involving willful or intentional malfeasance or misconduct
that is, or may reasonably be expected to be, injurious to the Company, its
business, reputation, prospects, or otherwise; (iii) commission of any act of
fraud or embezzlement against Company; (iv) after having obtained the appropriate
work visa, inability to legally perform his duties in the United States,
including but not limited to, failure to retain appropriate work visas, so long
as such failure was not due to malfeasance or non-feasance by the Company in
its assistance to Employee in retaining the same; (v) after having obtained the
appropriate visas permitting he and his immediate family to do so, failure to
relocate to the Louisville, Kentucky area within the time allowed by this
Agreement; (vi) failure to operate substantially within the budget of the
Company as adopted by the Board, so long as such failure was within the
reasonable control of Employee; and (vii) any act or omission by Employee
constituting a material breach of Employee’s obligations under this Agreement
which act or omission is either not capable of being remedied, or, is not
remedied within ten (10) days of notice from the Company of the material
breach.  In the event of a termination
for “cause” pursuant to the provisions of this Section, Employee shall not be
entitled to any Base Salary, Bonus, LTIP, severance salary, or any other
benefits, except for amounts accrued prior to the effective date of termination
and except for those, if any, required to be extended by applicable law.

7.1.3        Termination By Company Without “Cause”.  The Company may, in its sole and exclusive
discretion, immediately and unilaterally, terminate the Employee’s employment
hereunder at any time without cause by giving Employee ten (10) days’ advance
written notice of Company’s election to terminate.  Employee shall not thereafter be entitled to
any Base Salary, Bonus, Vacation pay or any other benefits, except for the
following:

7.1.3.1               those benefits, if any, required to be extended by
applicable law;

7.1.3.2               during the first 18 months of this Agreement, an
amount equal to $712,500;

7.1.3.3               during the balance of this Agreement, an amount equal
to $475,000;

 6
 

7.1.3.4               during the Term, in the event Employee is required to report to a CEO
other than Nigel Travis on a permanent basis, Employee may terminate his
employment with Company and, in such event, receive the amounts contemplated by
Sections 7.1.3.1 thru 7.1.3.3, as appropriate; 
and

7.1.3.5               during the
Term, reimbursement for reasonable one-way travel expenses for Employee and his
direct family, as well as reasonable expenses incurred in the sale of the
Employee’s house and moving of the Employee’s household goods from the United
States to Canada.

7.2           Termination By
Employee.  Employee may, immediately
and unilaterally, terminate his employment hereunder at any time by giving the
Company ten (10) days’ advance written notice of Employee’s election to
terminate.  Upon termination by Employee,
Employee shall not be entitled to any further Base Salary, Bonus, LTIP, severance salary or any other benefits,
except for amounts accrued prior to the effective date of termination and
except for those, if any, required to be extended by applicable law.

7.3           Effect of
Termination.  Upon termination of
Employee’s employment hereunder, the obligations and commitments of Employee
set forth in Sections 3 and 6, and the provisions of Sections 4, 8 and 9, shall
continue in effect and survive termination.

Section 8:              Notice

Any notice or other communication under this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally against receipt therefor; two days after being sent by Federal
Express or similar overnight delivery; or three days after being mailed
registered or certified mail, postage prepaid, to a Party hereto at the address
set forth beneath such Party’s signature below, or to such address as such
Party shall give by notice hereunder to the other Party to this Agreement.

Section 9:              Miscellaneous

9.1           Governing Law.  This Agreement shall be governed by and
construed in accordance with the substantive laws of the Commonwealth of
Kentucky and the laws of the United States. 
No conflicts of law or similar rule or law that might refer the
governance and construction of this Agreement to the laws of another state,
republic or country shall be considered.

9.2           Dispute
Resolution.  Pursuant to the Federal
Arbitration Act, any claim or proceeding seeking to enforce any provision of,
or based on any right arising out of, this Agreement, or statutory or common
law disputes arising out of the employment relationship and/or its termination,
including, without limitation, all Title VII, FMLA, FLSA, ADEA, ADA and ERISA
claims, must be brought as a claim in arbitration under the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association
then in effect (“AAA Rules”).  Any such
arbitration proceeding must be heard in Louisville, Kentucky, and will be
governed by the AAA Rules.  The
arbitrator shall be governed by the laws as would apply in any federal court
within the Commonwealth of Kentucky.  The
decision of the arbitrator would be final and binding and all expenses of the
arbitrator and arbitration would be borne equally by the Company and the
Employee.  Each of the Parties hereto
consents to the application of AAA Rules and waives any objection as to venue
or jurisdiction.  Process in any action
or proceeding referred to in the preceding sentence may be served on any Party
anywhere in the world.  Notwithstanding
anything in the foregoing to the contrary, the Company and Employee agree that
before instituting formal proceedings under the AAA Rules, the aggrieved party
must submit the claim or dispute to non-binding 

 7
 

mediation.  The selection of the
mediator would be the prerogative of the aggrieved party and the costs of such
mediation would be shared equally by the Company and the Employee.

9.3           Severability.  If any provision of this Agreement is
determined by a court of competent jurisdiction to be unenforceable for any
reason, such provision shall be deemed to be severable, and this Agreement
shall otherwise continue in full force and effect.  Any provision of this Agreement held invalid
or unenforceable only in part or degree will remain in full force and effect to
the extent not held invalid or unenforceable.

9.4           Assignments;
Binding Effect.  This Agreement shall
be binding upon and inure to the benefit of the Company, its successors and
assigns, including any entity which acquires all or substantially all of the
Company’s assets to which the Company’s rights and obligations hereunder are
assigned.  This Agreement shall be
binding upon and inure to the benefit of the Employee and his personal
representatives, but the obligations undertaken herein by Employee shall not
and may not be transferred or assigned and any purported transfer or assignment
thereof shall be null and void ab initio.

9.5           Entire Agreement;
Modifications.  This Agreement
contains the entire agreement and understanding of the Parties with respect to
the subject matter hereof, supersedes any prior agreements and understandings
with respect thereto, and cannot be modified, amended or waived, in whole or in
part, except in writing signed by the Party or Parties to be charged.  Any such purported modification, amendment or
waiver shall be null and void absent such writing.

9.6           Waivers.  A discharge of the terms of this Agreement
shall not be deemed valid unless by full performance by the Parties or unless
corroborated by a writing signed by the Parties.  A waiver by Company of any breach by Employee
of any provision or condition provided for in this Agreement to be performed or
observed by Employee shall not be deemed a waiver of any similar or dissimilar
provisions or conditions at the same or any prior or subsequent time.  The Parties covenant and agree that if a
Party fails or neglects for any reason to take advantage of any of the terms,
remedies or rights provided for in this Agreement or under applicable law, such
failure or neglect shall not be deemed a waiver of any such terms, remedies or
rights subsequently arising, or as a waiver of any of the terms, covenants or
conditions of this Agreement or the requirement for performance or observance
thereof.  None of the terms, covenants
and conditions of this Agreement may be waived by a Party except in a writing
signed by such Party.

9.7           Expense of
Enforcement.  If, as a consequence of
any dispute arising under or with regard to this Agreement or its performance,
any Party shall be required to retain the services of legal counsel or to initiate
any proceeding, it is understood that each Party shall be required to bear
their own costs, including attorney fees, filing fees, or any other costs
associated with the proceeding.

9.8           Remedies and
Enforcement.  If there should occur
any breach or threatened breach by Employee of any of the covenants,
restrictions or requirements set forth in Sections 3, 4 or 6 of this Agreement,
Employee acknowledges and agrees that Company’s remedies at law are or may be
inadequate to redress the same and Company shall be entitled to seek an
injunction, restraining order, specific performance or enforcement or other
equitable relief in regard thereto, notwithstanding the provisions of Section
9.2 above.

9.9           Waiver
of Jury Trial.  THE PARTIES HEREBY
WAIVE A JURY TRIAL IN ANY PROCEEDING OR LITIGATION WITH RESPECT TO THIS
AGREEMENT.

 8
 

9.10         Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be considered an original but all of which
together shall constitute one and the same agreement.

9.11         This
Agreement supplements and supercedes any earlier agreement entered into or
agreed to either verbally or in writing concerning Employee’s employment with
the Company.

IN WITNESS WHEREOF, the
Parties have executed and delivered this Agreement at Louisville, Kentucky on
the respective dates shown beneath their signatures below, but effective as of
the Effective Date.

	
  

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robb S. Chase

  	
   

  
	
   

  	
  ROBB S. CHASE

  
	
   

  	
  Date: August 25, 2006

  
	
   

  	
  Employee Notice Address:

  
	
   

  	
  130 Baby Point Road

  
	
   

  	
  Toronto, Ontario

  
	
   

  	
  M6S 2G3

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  PAPA JOHN’S INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nigel Travis

  	
   

  
	
   

  	
  Name: 

  	
  NIGEL TRAVIS

  	
   

  
	
   

  	
  Title: 

  	
  President & CEO

  	
   

  
	
   

  	
  Date: August 25, 2006

  
	
   

  	
  Company Notice Address:

  
	
   

  	
  ATTN: General Counsel

  
	
   

  	
  2002 Papa Johns Boulevard

  
	
   

  	
  Louisville, Kentucky 40299-2334

  
								

 

 9

 

Schedule A

[Attached
to and to be made a part of the Employment Agreement]

	
  Name of Employee:

  	
  Robb S. Chase

  
	
   

  	
   

  
	
  Position/Title:

  	
  President, International Division

  

 

Duties:                   Employee shall report to, and
be subject to the supervision of, the CEO or the Board, and shall be
responsible for directing and leading all aspects of company’s international
business, including strategic direction, profit and loss, operations,
marketing, training, development, procurement and technical services in order
to grow the business in units, royalty fees and profits.  Without limiting the generality of the
foregoing, Employee’s responsibilities shall include those assigned to him from
time to time by the Company’s Chairman or Board, and, further, shall include
the following:

·                  Provide
day-to-day leadership and management to company and international team to
aggressively grow restaurant units and royalties in an amount deemed
appropriate by the CEO and the Board. Spearhead the development, communication
and implementation of effective growth strategies.

·                  Collaborate
with international management team to develop and implement effective
infrastructure of systems, processes, and team members to appropriately support
business growth.

·                  Ensure
U.S.-based programs are appropriately adapted for international markets.

·                  Serve
as senior-level point person to resolve strategic issues and problems with
international franchisees, vendors, products, and customers, which hinder
growth and profits.

·                  Serve
as international expert for Papa John’s and collaboratively work with all to
drive the Papa John’s brand, mission and business objectives.

·                  Recruit,
hire, lead, manage, motivate and develop high performing management team;
communicate expectations, address performance issues, if needed, and take
appropriate corrective action up to and including separation.

Relocation Benefits:            Employee shall also be entitled to a
one-time reimbursement of relocation-related expenses in connection with
relocation to the Louisville, Kentucky area in an amount not to exceed
$175,000, plus a gross-up for income taxes, so long as the relocation is
substantially underway within twelve (12) months from the date that the visas
referred to below are obtained.  “Substantially
underway” is defined, as a minimum, of having executed a contract for the
purchase of a primary residence in the Louisville, Kentucky area.  In the event Employee voluntarily terminates
his employment with the Company during the first twelve (12) months of the
Term, he will be required to reimburse the Company for two-thirds (2/3’s) of
the relocation-related sum paid to Employee by the Company under this
provision.   Employee will not be required to make any
reimbursement of relocation-related expenses to the Company under any other
circumstance.

Term of Agreement (“Term”):            Commencing on the Effective Date
until terminated in accordance with Section 7.

Base Salary:          $475,000.

 i
 

 

Bonus:  Employee shall be eligible to receive annual
bonus payments in the targeted amount of fifty percent (50%) of his annual base
salary, so long as certain performance criteria are met.  Such criteria shall be determined by the CEO
and approved by the Compensation Committee of the Board of Directors for each
year of the Term.  It is presently
contemplated that seventy percent (70%) of Employee’s potential bonus
opportunity shall be based on meeting or exceeding criteria related to
international performance, and thirty percent (30%) of Employee’s potential
bonus opportunity shall be based on company-wide performance.

Sign-On Bonus:    22,000 option shares vesting 1/3 upon his
first anniversary, 1/3 upon his second anniversary, and 1/3 on his third
anniversary.  All options will have a
five-year term and the proceeds of the exercise of all shares will be subject
to a three-month hold.

Stock Ownership:  Papa John’s also has minimum stock ownership
guidelines for its executives.  As
President, International Division, Employee will be required to own shares
whose aggregate value equals or exceeds three times Employee’s annual
salary.  This ownership requirement must
be accomplished in annual steps of the value amount Employee is required to own
under the annual ownership benchmarks required of him by the Company in 2006.  Those benchmarks amount to 10%, 25%, 45%, 70%
and 100% of the three times salary requirement. 
The determination as to whether Employee has met the benchmark amount
shall be measured on January 1 of each year with full ownership attained by
December 31, 2011.  If annual benchmarks
are not met, the Compensation Committee may, in its sole and exclusive
discretion, undertake those steps
it deems appropriate to correct Employee’s ownership deficiency, including,
without limitation, directing any bonus amounts Employee may earn toward the
purchase or acquisition of equity in the Company.  In the case of Employee, failure to meet the
annual benchmarks shall not be deemed to be cause for termination.

Visas & Visa Costs:  Company agrees to cover the costs (including
legal expenses) associated with obtaining and retaining 0-1 work visas for
Employee and his spouse, as appropriate, as well as visas for Employee’s direct
family members who will live with Employee in the Louisville, Kentucky area.

In the event that Employee’s visa referred to above is
not obtained prior to the Effective Date, the Company and Employee shall work together to implement a temporary
workaround that will enable the Employee to perform his duties from Toronto,
Canada, making such trips to Louisville, Kentucky as may be requested by the
Company and permitted by law.  The temporary workaround will remain
in place unless and until:  (a) the date upon which the visa is
obtained;  (b) the date upon which the workaround is terminated or modified
by mutual written agreement of the parties; or (c) if the visa cannot be obtained within twelve months from the Effective
Date, the date upon which this Agreement is terminated by the Company in
accordance with Section 7.1.3 provided,
however, that the amount due to the Employee pursuant to Section 7.1.3 shall be
that amount specified in Section 7.1.3.3 irrespective of the timing of the
Company’s decision to terminate this Agreement.

 

 ii

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