Document:

exv10w2

 

Exhibit 10.2

Form of

SHARED SERVICES AGREEMENT

dated as of                     , 2006

between

TIM HORTONS INC.

and

WENDY’S INTERNATIONAL, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE
	ARTICLE I DEFINITIONS	 	 	1	 
	 

	 	Section 1.01
	 	Definitions
	 	 	1	 
	 

	 	Section 1.02
	 	Construction
	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II PURCHASE AND SALE OF SERVICES	 	 	4	 
	 

	 	Section 2.01
	 	Wendy’s Services
	 	 	4	 
	 

	 	Section 2.02
	 	Tim Hortons Services
	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III SERVICE COSTS; OTHER CHARGES	 	 	5	 
	 

	 	Section 3.01
	 	Service Costs Generally
	 	 	5	 
	 

	 	Section 3.02
	 	Fixed-Price Billing
	 	 	5	 
	 

	 	Section 3.03
	 	Fixed-Rate Billing
	 	 	5	 
	 

	 	Section 3.04
	 	Customary Billing
	 	 	6	 
	 

	 	Section 3.05
	 	Pass-Through Billing
	 	 	6	 
	 

	 	Section 3.06
	 	Variable-Rate Billing
	 	 	6	 
	 

	 	Section 3.07
	 	Benefit Billing
	 	 	6	 
	 

	 	Section 3.08
	 	Invoicing and Settlement of Costs
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV STANDARD OF PERFORMANCE AND INDEMNIFICATION	 	 	8	 
	 

	 	Section 4.01
	 	General Standard of Service
	 	 	8	 
	 

	 	Section 4.02
	 	Delegation
	 	 	8	 
	 

	 	Section 4.03
	 	Limitation of Liability
	 	 	9	 
	 

	 	Section 4.04
	 	Indemnification Related to Wendy’s Services
	 	 	10	 
	 

	 	Section 4.05
	 	Indemnification Related to Tim Hortons Services
	 	 	10	 
	 

	 	Section 4.06
	 	Claim Procedure
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V TERM AND TERMINATION	 	 	11	 
	 

	 	Section 5.01
	 	Term
	 	 	11	 
	 

	 	Section 5.02
	 	Termination
	 	 	11	 
	 

	 	Section 5.03
	 	Effect of Termination
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI INSURANCE MATTERS	 	 	13	 
	 

	 	Section 6.01
	 	Tim Hortons Insurance Coverage During Transition Period
	 	 	13	 
	 

	 	Section 6.02
	 	Cooperation; Payment of Insurance Proceeds to Tim Hortons; Agreement Not to Release Carriers
	 	 	13	 
	 

	 	Section 6.03
	 	Tim Hortons Insurance Coverage After the Insurance Transition Period
	 	 	14	 
	 

	 	Section 6.04
	 	Deductibles and Self-Insured Obligations
	 	 	14	 
	 

	 	Section 6.05
	 	Procedures with Respect to Insured Tim Hortons Liabilities
	 	 	14	 
	 

	 	Section 6.06
	 	Insufficient Limits of Liability for Wendy’s Liabilities and Tim Hortons Liabilities
	 	 	15	 
	 

	 	Section 6.07
	 	Cooperation
	 	 	15	 
	 

	 	Section 6.08
	 	No Assignment or Waiver
	 	 	15	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE
	 

	 	Section 6.09
	 	No Liability
	 	 	15	 
	 

	 	Section 6.10
	 	Additional or Alternate Insurance
	 	 	15	 
	 

	 	Section 6.11
	 	Forbearance and Prior Insurance Coverage
	 	 	16	 
	 

	 	Section 6.12
	 	Further Agreements
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII ADDITIONAL AGREEMENTS	 	 	16	 
	 

	 	Section 7.01
	 	Annual Budget
	 	 	16	 
	 

	 	Section 7.02
	 	Assignment
	 	 	17	 
	 

	 	Section 7.03
	 	Turnover
	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	 	 	17	 
	 

	 	Section 8.01
	 	Entire Agreement
	 	 	17	 
	 

	 	Section 8.02
	 	No Agency
	 	 	17	 
	 

	 	Section 8.03
	 	Subcontractors
	 	 	17	 
	 

	 	Section 8.04
	 	Force Majeure
	 	 	18	 
	 

	 	Section 8.05
	 	Information
	 	 	18	 
	 

	 	Section 8.06
	 	Notices
	 	 	18	 
	 

	 	Section 8.07
	 	Governing Law
	 	 	19	 
	 

	 	Section 8.08
	 	Severability
	 	 	20	 
	 

	 	Section 8.09
	 	Amendment
	 	 	20	 
	 

	 	Section 8.10
	 	Counterparts
	 	 	20	 
	 

	 	Section 8.11
	 	Authority
	 	 	20	 
	 

	 	Section 8.12
	 	Confidentiality
	 	 	20	 
	 

	 	Section 8.13
	 	Audits
	 	 	21	 
	 

	 	Section 8.14
	 	Compliance With Laws
	 	 	21	 

SCHEDULES

	 	 	 
	SCHEDULE I:

	 	Wendy’s Services
	SCHEDULE II:

	 	Tim Hortons Services
	SCHEDULE III:

	 	Wendy’s Insurance Policies

 ii 

 

 

SHARED SERVICES AGREEMENT

     This Shared Services Agreement is entered into as of                     , 2006 (the “Effective Date”)
by and between Tim Hortons Inc., a Delaware Ohio corporation (“Tim Hortons”), and Wendy’s
International, Inc., an Ohio corporation (“Wendy’s”). Tim Hortons and Wendy’s are sometimes
referred to herein separately as a “Party” and together as the “Parties.”

RECITALS

     A. Wendy’s owns 100% of the issued and outstanding common stock of Tim Hortons.

     B. Contemporaneously with the execution and delivery of this Agreement the Parties are
entering into a Master Separation Agreement (the “Master Separation Agreement”) and the other
Separation Agreements (defined in the Master Separation Agreement).

     C. Promptly after the execution and delivery of this Agreement Tim Hortons will consummate an
initial public offering (the “Offering”) of its common stock pursuant to a registration statement
on Form S-1 (the “Registration Statement”) under the Securities Act of 1933, as amended.

     D. Immediately following consummation of the Offering, Wendy’s will own common stock of Tim
Hortons evidencing at least 80.1% of the voting power of the common stock regarding all stockholder
matters.

     E. Wendy’s directly or indirectly has provided certain services to Tim Hortons and its
subsidiaries, and Tim Hortons directly or indirectly has provided certain services to Wendy’s and
its subsidiaries.

     F. Following consummation of the Offering, each Party desires to continue to receive the
services provided by the other Party, as more fully set forth in this Agreement.

     G. Each Party desires to set forth in this Agreement the principal terms and conditions
pursuant to which it will provide and/or receive such services.

AGREEMENT

     In consideration of the foregoing and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereto, for themselves and their
respective successors and assigns, hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions.

     (a) Any capitalized term used in this Agreement but not defined in this Agreement shall have
the definition given such term in the Master Separation Agreement.

 

 

     (b) As used in this Agreement, the following terms shall have the following meanings:

     “Agreement” means this Shared Services Agreement, together with the Schedules attached hereto.

     “Annual Budget” is defined in Section 7.01.

     “Benefit Services” means services relating to administration of employee plans and benefit
arrangements.

     “Billing Party” is defined in Section 3.02.

     “Customary Billing” is defined in Section 3.04.

     “Effective Date” is defined in the preamble to this Agreement.

     “Employee Welfare Plans” is defined in Section 4.02.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Fixed-Price Billing” is defined in Section 3.02.

     “Fixed-Rate Billing” is defined in Section 3.03.

     “Force Majeure” means an event beyond the control of the Party claiming Force Majeure that by
its nature could not have been foreseen by such Party, or, if it could have been foreseen, was
unavoidable, including acts of God, storms, floods, riots, fires, sabotage, civil commotion or
civil unrest, interference by civil or military authorities, acts of war (declared or undeclared)
and failure of energy sources.

     “Insurance Policies” means insurance policies pursuant to which a Person makes a true risk
transfer to an insurer.

     “Insurance Proceeds” means those monies (a) received by an insured from an insurance carrier,
(b) paid by an insurance carrier on behalf of the insured or (c) from Insurance Policies.

     “Insurance Transition Period” is defined in Section 6.01.

     “Insured Tim Hortons Liability” means any Tim Hortons Liability to the extent it is covered
under the terms of Wendy’s Insurance Policies in effect prior to the end of the Insurance
Transition Period.

     “Master Separation Agreement” is defined in the recitals of this Agreement.

     “Offering” is defined in the recitals of this Agreement.

     “Pass-Through Billing” is defined in Section 3.05.

2

 

     “Payment Date” is defined in Section 3.08(b).

     “Receiving Party” is defined in Section 3.02.

     “Registration Statement” is defined in the recitals of this Agreement.

     “Service Costs” means the Wendy’s Service Costs and/or the Tim Hortons Service Costs, as the
context may require.

     “Services” means the Tim Hortons Services and/or the Wendy’s Services, as the context may
require.

     “Tax Sharing Agreement” means the Tax Sharing Agreement between the Parties dated as of the
Effective Date.

     “Tim Hortons” is defined in the preamble to this Agreement.

     “Tim Hortons Covered Parties” is defined in Section 6.01.

     “Tim
Hortons Plans” is defined in Section 3.07(b).

     “Tim Hortons Service Costs” means the costs to be paid to Tim Hortons by Wendy’s for Tim
Hortons Services provided hereunder.

     “Tim Hortons Services” means the various services to be provided by Tim Hortons or its agents
under this Agreement, as more fully described in Schedule II attached hereto.

     “Variable-Rate Billing” is defined in Section 3.06.

     “Wendy’s” is defined in the preamble to this Agreement.

     “Wendy’s Insurance Policies” is defined in Section 6.01.

     “Wendy’s Plans” is defined in Section 3.07(a).

     “Wendy’s Service Costs” means the costs to be paid to Wendy’s by Tim Hortons for Wendy’s
Services provided hereunder.

     “Wendy’s Services” means the various services to be provided by Wendy’s or its agents under
this Agreement, as more fully described in Schedules I and III attached hereto.

     Section 1.02 Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this
Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of
proof will arise favoring or disfavoring any Party because of the authorship of any provision of
this Agreement. Any reference to any federal, state, provincial, local or foreign law will be
deemed also to refer to such law as amended and all rules and regulations promulgated thereunder,
unless the context requires otherwise. Any reference to any contract or agreement (including
schedules, exhibits and other attachments thereto), including this Agreement, will be

3

 

deemed also to refer to such agreement as amended, restated or otherwise modified, unless the
context requires otherwise. The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine and neuter genders will be
construed to include any other gender, and words in the singular form will be construed to include
the plural and vice versa, unless the context requires otherwise. The words “this Agreement,”
“herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a
whole and not to any particular subdivision unless expressly so limited. Where this Agreement
states that a Party “will” or “shall” perform in some manner or otherwise act or omit to act, it
means that such Party is legally obligated to do so in accordance with this Agreement. The
captions, titles and headings included in this Agreement are for convenience only and do not affect
this Agreement’s construction or interpretation. Any reference to an Article, Section or Schedule
in this Agreement shall refer to an Article or Section of, or Schedule to, this Agreement, unless
the context otherwise requires. This Agreement is for the sole benefit of the Parties (and, solely
for purposes of Article IV, Wendy’s Indemnified Persons and Tim Hortons Indemnified
Persons) and does not, and is not intended to, confer any rights or remedies in favor of any Person
(including any employee or shareholder of Wendy’s or Tim Hortons) other than the Parties.

ARTICLE II

PURCHASE AND SALE OF SERVICES

     Section 2.01 Wendy’s Services.

     (a) Subject to the terms and conditions of this Agreement, Wendy’s agrees to provide (or cause
to be provided) to the Tim Hortons Group the Wendy’s Services. Unless otherwise specifically set
forth in Schedule I or III or agreed in writing by the Parties, the Wendy’s
Services provided shall be substantially similar in scope, quality and nature to those customarily
provided to the Tim Hortons Group prior to the Effective Date. Likewise, unless otherwise
specifically set forth in Schedule I or III or agreed in writing by the Parties, it
is the intention of the Parties that the use by the Tim Hortons Group of the Wendy’s Services shall
not be substantially greater than the level of use prior to the Effective Date.

     (b) To the extent requested by Tim Hortons, any Wendy’s Services to be provided hereunder
shall be provided directly to any member of the Tim Hortons Group. Wendy’s may satisfy its
obligation to provide any of the Wendy’s Services hereunder by causing one or more members of the
Wendy’s Group to provide such service; provided; however, that the foregoing shall
not relieve Wendy’s of its obligations to provide Wendy’s Services hereunder, nor shall it relieve
Tim Hortons of its obligation to pay Wendy’s for such services hereunder.

     (c) In addition to the Wendy’s Services described in Schedules I and III, if
requested by Tim Hortons, and to the extent the Parties mutually agree, Wendy’s shall provide (or
cause to be provided) additional services (including services not provided by Wendy’s to the Tim
Hortons Group prior to the Effective Date) to the Tim Hortons Group. The scope of any such
services, as well as the costs and other terms and conditions applicable to such services, shall be
as mutually agreed by the Parties, and the Parties shall amend Schedule I and/or
Schedule III appropriately in connection therewith.

4

 

     Section 2.02 Tim Hortons Services.

     (a) Subject to the terms and conditions of this Agreement, Tim Hortons agrees to provide (or
cause to be provided) to the Wendy’s Group the Tim Hortons Services. Unless otherwise specifically
set forth in Schedule II or agreed in writing by the Parties, the Tim Hortons Services
provided shall be substantially similar in scope, quality and nature to those customarily provided
to the Wendy’s Group prior to the Effective Date. Likewise, unless otherwise specifically set forth
in Schedule II or agreed in writing by the Parties, it is the intention of the Parties that
the use by the Wendy’s Group of the Tim Hortons Services shall not be substantially greater than
the level of use prior to the Effective Date.

     (b) To the extent requested by Wendy’s, any Tim Hortons Services to be provided hereunder
shall be provided directly to members of the Wendy’s Group. Tim Hortons may satisfy its obligation
to provide any of the Tim Hortons Services hereunder by causing one or more members of the Tim
Hortons Group to provide such service; provided, however, that the foregoing shall
not relieve Tim Hortons of its obligation to provide Tim Hortons Services hereunder, nor shall it
relieve Wendy’s of its obligations to pay Tim Hortons for such services hereunder.

     (c) In addition to the Tim Hortons Services described on Schedule II on the Effective
Date, if requested by Wendy’s, and to the extent the Parties mutually agree, Tim Hortons shall
provide (or cause to be provided) additional services (including services not provided by Tim
Hortons to the Wendy’s Group prior to the Effective Date) to the Wendy’s Group. The scope of any
such services, as well as the costs and other terms and conditions applicable to such services,
shall be as mutually agreed by the Parties, and the Parties shall amend Schedule II
appropriately in connection therewith.

ARTICLE III

SERVICE COSTS; OTHER CHARGES

     Section 3.01 Service Costs Generally. The Schedules hereto indicate the methods by which
costs to be charged for specific Services are to be determined. Unless otherwise indicated on the
Schedules, the Customary Billing method will apply. Tim Hortons shall pay to Wendy’s the Wendy’s
Service Costs in accordance with Section 3.08. Wendy’s shall pay to Tim Hortons the Tim
Hortons Service Costs in accordance with Section 3.08.

     Section 3.02 Fixed-Price Billing. The “Fixed-Price Billing” method means the Party
providing (directly or indirectly) the relevant Service (the “Billing Party”) shall charge the
Party receiving (directly or indirectly) such Service (the “Receiving Party”) the amounts set forth
on the relevant Schedule for such Service, at the times set forth on such Schedule.

     Section 3.03 Fixed-Rate Billing. The “Fixed-Rate Billing” method means the Billing Party
shall charge the Receiving Party a fixed amount determined according to the rate set forth on the
relevant Schedule for such Service, at the times set forth on such Schedule. Such rate shall be
increased or decreased, as applicable, effective January 1 of each calendar year under this
Agreement by the percentage increase or decrease in the Consumer Price Index (as reported by Bank
of Canada as the “percentage change over 1 year ago (unadjusted)” of “Total CPI”, or if

5

 

such report is no longer available, as reported by such other source that is reasonably acceptable
to both Parties) from the previous December.

     Section 3.04 Customary Billing. The “Customary Billing” method means the costs customarily
charged and/or allocated by the Billing Party to the Receiving Party for the applicable Service
immediately prior to the Effective Date (it being understood that from and after the Effective Date
such costs may be increased by the Billing Party in a manner consistent with the manner in which
such costs were increased from time to time prior to the Effective Date, and consistent with the
semi-annual reconciliation described in Section 7.01).

     Section 3.05 Pass-Through Billing. The “Pass-Through Billing” method means the aggregate
amount of third-party, out-of-pocket costs and expenses incurred by a Billing Party on behalf of a
Receiving Party and (to the extent the performance of such Service by such third party is not
substantially similar to Services provided by such third party or a substantially similar third
party to such Receiving Party prior to the Effective Date) approved by such Receiving Party, which
approval shall not be unreasonably withheld, for the applicable Service. Said costs shall include
the costs incurred in connection with obtaining the consent of any party to an agreement to which
such Billing Party is a party where such consent is related to and reasonably required for the
provision of such Service. It is intended that Services provided by third parties will be billed
directly to the Receiving Party by the third party. If a Billing Party incurs any such costs or
expenses on behalf of any Receiving Party bundled together with costs incurred by the Billing Party
or its subsidiaries, the Billing Party shall allocate any such costs or expenses in good faith as
set forth on any applicable Schedule hereto or, if not set forth on a Schedule, then as the Billing
Party shall determine in the exercise of the Billing Party’s reasonable judgment. The Billing
Party shall make such allocations reasonably and in good faith, and the Billing Party or its agents
shall keep and maintain such books and records as may be reasonably necessary to make such
allocations. The Billing Party shall make copies of such books and records available to the
Receiving Party upon request and with reasonable notice.

     Section 3.06 Variable-Rate Billing. The “Variable-Rate Billing” method means the Billing
Party shall charge the Receiving Party a variable amount determined according to the rate set forth
on the relevant Schedule for such Service, at the times set forth on such Schedule.

     Section 3.07 Benefit Billing.

     (a) Prior to the Effective Date, certain employees of Tim Hortons participated in certain
benefit plans sponsored by Wendy’s (“Wendy’s Plans”).

     (i) On and after the Effective Date, such employees shall continue to be eligible to
participate in the Wendy’s Plans, subject to the terms of the governing plan documents as
interpreted by the appropriate plan fiduciaries. On and after the Effective Date, subject
to regulatory requirements and the provisions of Section 4.01, Wendy’s shall
continue to provide Benefit Services to and in respect of such employees with reference to
Wendy’s Plans as administered by Wendy’s prior to the Offering Date.

     (ii) The costs payable by Tim Hortons for Wendy’s Services related to the Wendy’s
Plans, which are included in Schedule I, shall be determined and billed as set

6

 

forth in Schedule I. The Parties acknowledge and agree that some of the costs
associated with certain Wendy’s Plans will be paid principally through Tim Hortons employee
payroll deductions for such plans as specified in Schedule I. The Parties intend
that the Wendy’s Service Costs relating to the performance of Benefit Services shall not
exceed reasonable compensation for such services as defined under applicable law.

     (iii) Each Party may request changes in the applicable terms and provisions of any of
Wendy’s Services relating to the Wendy’s Plans, approval of which shall not be unreasonably
withheld by the other Party; provided, however, that changes in the terms
and provisions of any of the Wendy’s Plans shall be in the sole discretion of Wendy’s, and
Wendy’s may (in its sole discretion) terminate or otherwise modify, in any manner, any
Wendy’s Plan at any time and from time to time. The Parties agree to cooperate fully with
each other in the administration and coordination of regulatory and administrative
requirements associated with Wendy’s Plans.

     (b) Prior to the Effective Date, certain employees of Wendy’s participated in certain benefit
plans sponsored by Tim Hortons (“Tim Hortons Plans”).

     (i) On and after the Effective Date, such employees shall continue to be eligible to
participate in the Tim Hortons Plans, subject to the terms of the governing plan documents
as interpreted by the appropriate plan fiduciaries. On and after the Effective Date,
subject to regulatory requirements and the provisions of Section 4.01, Tim Hortons
shall continue to provide Benefit Services to and in respect of such employees with
reference to Tim Hortons Plans as administered by Tim Hortons prior to the Offering Date.

     (ii) The costs payable by Wendy’s for Tim Hortons Services related to the Tim Hortons
Plans, which are included in Schedule II, shall be determined and billed as set
forth in Schedule II. The Parties acknowledge and agree that some of the costs
associated with certain Tim Hortons Plans will be paid principally through Wendy’s employee
payroll deductions for such plans as specified in Schedule II. The Parties intend
that the Tim Hortons Service Costs relating to the performance of Benefit Services shall not
exceed reasonable compensation for such services as defined under applicable law.

     (iii) Each Party may request changes in the applicable terms and provisions of any of
Tim Hortons Services relating to the Tim Hortons Plans, approval of which shall not be
unreasonably withheld by the other Party; provided, however, that changes in
the terms and provisions of any of the Tim Hortons Plans shall be in the sole discretion of
Tim Hortons, and Tim Hortons may (in its sole discretion) terminate or otherwise modify, in
any manner, any Tim Hortons Plan at any time and from time to time. The Parties agree to
cooperate fully with each other in the administration and coordination of regulatory and
administrative requirements associated with Tim Hortons Plans.

     Section 3.08 Invoicing and Settlement of Costs.

     (a) Each Billing Party shall invoice or notify the applicable Receiving Party on a quarterly
basis (not later than the 25th day after the end of each quarter), in a manner

7

 

substantially similar to and consistent with the billing practices used in connection with
services provided by or on behalf of such Billing Party prior to the Effective Date (except as
otherwise agreed), of the Service Costs payable to the Billing Party and attributable to the prior
quarter. In connection with the invoicing described in this Section 3.08(a), the Billing
Party shall provide to the Receiving Party the same billing data and level of detail as customarily
or similar to that provided prior to the Effective Date and such other related data as may be
reasonably requested by the Receiving Party.

     (b) Each Receiving Party shall pay to the applicable Billing Party, on or before the 30th day
after the date on which an invoice or notice of Service Costs is delivered to such Receiving Party
in accordance herewith (or the next Business Day, if such 30th day is not a Business Day) (each, a
"Payment Date”), by wire transfer of immediately available funds payable to the order of the
Billing Party, all amounts properly invoiced or noticed by such Billing Party pursuant to
Section 3.08(a). If any Receiving Party fails to pay any monthly payment within 30 days of
the relevant Payment Date, such Receiving Party shall be obligated to pay, in addition to the
amount due on such Payment Date, interest on such amount at the prime, or best, rate announced by
The Huntington National Bank, compounded monthly from the relevant Payment Date through the date
all such due amounts are paid. Offsetting is not permitted.

ARTICLE IV

STANDARD OF PERFORMANCE AND INDEMNIFICATION

     Section 4.01 General Standard of Service. Subject to the limitations on liability set
forth in Section 4.03, each Party will use commercially reasonable efforts to deliver the
applicable Services to the other Party at the same levels as such Services are or have customarily
been provided to such other Party in the past and in accordance with applicable laws. In addition,
Wendy’s shall use commercially reasonable efforts to ensure that the nature and quality of Benefit
Services provided to the persons described in Section 3.07(a) under Wendy’s Plans, either
by Wendy’s directly or through administrators under contract, shall be substantially the same as,
or consistent with, the same services provided to or on behalf of Wendy’s employees under Wendy’s
Plans. Tim Hortons shall use commercially reasonable efforts to ensure that the nature and quality
of Benefit Services provided to the persons described in Section 3.07(b) under Tim Hortons
Plans, either by Tim Hortons directly or through administrators under contract, shall be
substantially the same as, or consistent with, the same services provided to or on behalf of Tim
Hortons employees under Tim Hortons Plans.

     Section 4.02 Delegation. Subject to Section 4.01 above, each Party hereby
delegates to the other Party final, binding and exclusive authority, responsibility and discretion
to interpret and construe the provisions of employee welfare benefit plans in which the persons
described in Section 3.07(a) or (b), as applicable, have elected to participate and
that are administered by such other Party under this Agreement (collectively, “Employee Welfare
Plans”). Such other Party may further delegate such authority to other Persons to:

     (i) provide administrative and other services;

8

 

     (ii) reach factually supported conclusions consistent with the terms of the respective
Employee Welfare Plans;

     (iii) make such other decisions and take such other actions as are permitted to be
delegated under the terms of the respective Employee Benefit Plans;

     (iv) make a full and fair review of each claim denial and decision related to the
provision of benefits provided or arranged for under the Employee Welfare Plans pursuant to
ERISA and any other applicable requirements, if a claimant timely requests in writing a
review for reconsideration of such decisions (the party adjudicating the claim shall notify
the claimant in writing of its decision on review and such notice shall satisfy ERISA and
any other applicable requirements relating thereto); and

     (v) notify the claimant in writing of its decision on review.

     Section 4.03 Limitation of Liability.

     (a) Each Party acknowledges and agrees that (i) the other Party is not in the business of
providing services such as the Services to third parties, (ii) the other Party has agreed to
provide the Services as an accommodation to such Party and (iii) the other Party makes no
representations or warranties whatsoever, whether express or implied by statute or otherwise,
regarding the Services or any other matters relating to or arising out of this Agreement.

     (b) Neither Party shall have any Liability to the other Party or any other Person under this
Agreement for or in connection with any Services rendered or to be rendered hereunder by such
Party, or for such Party’s (or any of its representatives’) actions or inactions hereunder, except
for Losses resulting from such Party’s (or its representatives’) gross negligence or willful
misconduct; provided, however, that the foregoing shall not limit the remedies of a
Party against a provider of any Service other than the other Party’s Indemnified Persons..

     (c) Neither Party shall have any liability to the other Party or any other Person for failure
to perform its obligations under this Agreement, where (i) such failure to perform is not caused by
the gross negligence or willful misconduct of such Party or its representative and (ii) such
failure to perform similarly affects such Party’s Group members receiving the same or similar
services and does not have a disproportionately adverse effect on the other Party and its Group,
taken as a whole.

     (d) Each Party shall in all circumstances use commercially reasonable efforts to mitigate and
otherwise minimize Losses to itself and its Group, individually and collectively, whether direct or
indirect, due to, resulting from or arising in connection with any failure by the other Party to
comply fully with such other Party’s obligations under this Agreement.

     (e) Notwithstanding anything in this Agreement to the contrary, in no event shall any Party be
liable to the other Party or any other Person under this Agreement for, and each Party (on behalf
of itself, its Affiliates and other Indemnified Persons) hereby releases the other Party from all
claims for, special, indirect, consequential, incidental or punitive damages (including lost
profits or savings), even if advised of their possible existence, except that a Party may recover
from the other Party special, indirect,

9

 

consequential, incidental or punitive damages owed to a third party in settlement or
satisfaction of claims for which such Party has a right to recover from such other Party under this
Agreement.

     (f) Each Party agrees that this Section 4.03 is commercially conspicuous.

     Section 4.04 Indemnification Related to Wendy’s Services.

     (a) Subject to Section 4.03, Tim Hortons shall indemnify and hold harmless each
Wendy’s Indemnified Person from and against any and all Losses incurred by such Wendy’s Indemnified
Person relating to, arising out of or in connection with Wendy’s Services rendered or to be
rendered by any Wendy’s Indemnified Person pursuant to this Agreement or any Wendy’s Indemnified
Person’s actions or inactions in connection with any such Wendy’s Services, except to the extent
resulting from such Wendy’s Indemnified Person’s gross negligence or willful misconduct.

     (b) Subject to Section 4.03, Wendy’s shall indemnify and hold harmless each Tim
Hortons Indemnified Person from and against any and all Losses incurred by such Tim Hortons
Indemnified Person to the extent relating to, arising out of or in connection with the gross
negligence or willful misconduct of any Wendy’s Indemnified Person in connection with the Wendy’s
Services rendered or to be rendered pursuant to this Agreement.

     (c) To the extent any other Person has agreed to indemnify any Wendy’s Indemnified Person or
to hold a Wendy’s Indemnified Person harmless and such Person provides services to any member of
the Wendy’s Group relating directly or indirectly to any employee plan or benefit arrangement for
which Wendy’s Services are provided under this Agreement, Wendy’s will exercise reasonable efforts
(i) to make such agreement applicable to each Tim Hortons Indemnified Person so that such Tim
Hortons Indemnified Person is held harmless or indemnified to the same extent as any Wendy’s
Indemnified Person and (ii) to make available to each Tim Hortons Indemnified Person the benefits
of such agreement.

     Section 4.05 Indemnification Related to Tim Hortons Services.

     (a) Subject to Section 4.03, Wendy’s shall indemnify and hold harmless each Tim
Hortons Indemnified Person from and against any and all Losses incurred by such Tim Hortons
Indemnified Person relating to, arising out of or in connection with Tim Hortons Services rendered
or to be rendered by any Tim Hortons Indemnified Person pursuant to this Agreement or any Tim
Hortons Indemnified Person’s actions or inactions in connection with any such Tim Hortons Services,
except to the extent resulting from such Tim Hortons Indemnified Person’s gross negligence or
willful misconduct.

     (b) Subject to Section 4.03, Tim Hortons shall indemnify and hold harmless each
Wendy’s Indemnified Person from and against any and all Losses incurred by such Wendy’s Indemnified
Person to the extent relating to, arising out of or in connection with the gross negligence or
willful misconduct of any Tim Hortons Indemnified Person in connection with the Tim Hortons
Services rendered or to be rendered pursuant to this Agreement.

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     Section 4.06 Claim Procedure. The claim procedures set forth in Section 8.3 of the
Master Separation Agreement shall apply to indemnification claims under this Agreement.

ARTICLE V

TERM AND TERMINATION

     Section 5.01 Term. Except as otherwise provided in this Article V, or in
Section 8.04 or as otherwise agreed in writing by the Parties, (a) all provisions of this
Agreement (other than (i) those relating directly to the provision of information technology
Services, the termination of which shall be governed by Section 5.02(e) and (ii) those
relating directly to the provision of insurance Services, the termination of which shall be
governed by Section 5.02(f)) shall automatically terminate on the earlier of the Spin-Off
Date or December 31, 2008 and (b) a Party’s obligation to provide or to procure, and the other
Party’s obligation to pay for, a Service shall cease as of the applicable date set forth in the
applicable Schedules or such earlier date determined in accordance with Section 5.02.
Notwithstanding anything to the contrary in this Agreement or any other Separation Agreement,
termination of this Agreement, or of any provision thereof or obligation thereunder, shall not
affect or limit the Parties’ respective obligations under the Tax Sharing Agreement.

     Section 5.02 Termination.

     (a) The Parties may by mutual agreement from time to time terminate this Agreement with
respect to one or more of the Services, in whole or in part, in accordance with this Section
5.02(a). The Parties shall meet at least quarterly to consider in good faith whether any
Service (or its pricing) should be modified or terminated, taking into account the impact of such
Service’s modification or termination on both Parties. To the extent that, in any such meeting,
the Parties in good faith agree that any Service (or its pricing) should be modified or terminated,
the Parties shall work together in good faith to determine a reasonable and appropriate schedule
therefor.

     (b) Wendy’s may terminate any individual Tim Hortons Service at any time if Tim Hortons shall
have failed to perform any of its material obligations under this Agreement relating to such Tim
Hortons Service, Wendy’s shall have notified Tim Hortons in writing of such failure and such
failure shall have continued unremedied for a period of at least 30 days after receipt by Tim
Hortons of written notice of such failure from Wendy’s.

     (c) Tim Hortons may terminate any Wendy’s Service at any time if Wendy’s shall have failed to
perform any of its material obligations under this Agreement relating to such Wendy’s Service, Tim
Hortons shall have notified Wendy’s in writing of such failure, and such failure shall have
continued unremedied for a period of at least 30 days after receipt by Wendy’s of written notice of
such failure from Tim Hortons.

     (d) Either Party may terminate any individual Service (other than information technology or
insurance Services) that it or its representative is performing, upon at least 30 days written
notice, if the continued performance of such Service becomes commercially impracticable for such
Party.

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     (e) Information technology Services shall continue to be provided by Wendy’s after the
Spin-Off Date at the same service levels provided prior to the Spin-Off Date, provided that Wendy’s
is able to obtain the necessary licenses from software and other providers (which both Parties
shall use commercially reasonable efforts to obtain), subject to twelve months written notice by
either Party, after which the provision of such Services shall cease unless mutually agreed by both
Parties. Any information technology Services requested by Tim Hortons after the Spin-Off Date
other than those provided by Wendy’s prior to the Spin-Off Date shall be charged by Wendy’s and
paid by Tim Hortons at market rates as reasonably determined by Wendy’s. Additional license or
other fees, if any, that are charged by software or other providers necessary for Wendy’s to
provide information technology Services after the Spin-Off Date will be paid by Tim Hortons Both
Parties acknowledge and agree that Wendy’s is not in the business of providing information
technology services to third parties, but has agreed to provide such services solely to assist Tim
Hortons establish itself as an independent operating company.

     (f) Subject to Article VI, Wendy’s will provide insurance Services until at least
December 31, 2006.

     Section 5.03 Effect of Termination.

     (a) Other than as required by law, upon termination of any Service pursuant to Section
5.02, or upon termination of this Agreement in accordance with its terms, the Party whose
Service is terminated (the “Terminated Party”) shall have no further obligation to provide the
terminated Service (or any Service, in the case of termination of this Agreement) and the Party
terminating such Service (the “Terminating Party”) shall have no obligation to pay any Service
Costs relating to such terminated Services or to make any other payments hereunder;
provided, however, that, notwithstanding such termination: (i) the Terminating
Party shall remain liable to the Terminated Party for Service Costs owed and payable in respect of
Services provided prior to the effective date of such termination; (ii) the Terminated Party shall
continue to charge the Terminating Party for administrative and program costs relating to benefits
paid after but incurred prior to the termination of any Service and other services required to be
provided after the termination of such Service, and the Terminating Party shall be obligated to pay
such expenses in accordance with the terms of this Agreement; and (iii) the provisions of
Articles IV, V, and VIII and Section 6.06 shall survive any such
termination. All program and administrative costs attributable to the persons described in
Section 3.07(a), under Wendy’s Plans that relate to any period after the effective date of
any such termination shall be for the account of and paid by Tim Hortons.

     (b) Following termination of this Agreement with respect to any Service provided or procured
by a Party, the Parties agree to cooperate with each other in providing for an orderly transition
of such Service to the other Party or to a successor service provider as designated by the other
Party. Without limiting the foregoing, Wendy’s agrees to (i) provide to Tim Hortons, within 30
days of the termination of any Service relating to employee benefits, in a usable format designated
by Wendy’s, copies of all records relating directly or indirectly to benefit determinations with
respect to any and all the persons described in Section 3.07(a), including compensation and
service records, correspondence, plan interpretive policies, plan procedures, administration
guidelines, minutes, and any data or records required to be maintained by law and

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(ii) cooperate with Tim Hortons in developing a transition schedule with respect to such
terminated Service.

ARTICLE VI

INSURANCE MATTERS

     Section 6.01 Tim Hortons Insurance Coverage During Transition Period.

     (a) Throughout the period beginning on the Effective Date and ending upon the earlier of (i)
termination of the Service provided pursuant to this Article VI or (ii) termination or
expiration of this Agreement in accordance with its terms (the “Insurance Transition Period”),
Wendy’s shall, subject to insurance market conditions and other factors beyond its control,
maintain Insurance Policies (the “Wendy’s Insurance Policies”) covering and for the benefit of the
Tim Hortons Group and their respective directors, officers and employees (collectively, the “Tim
Hortons Covered Parties”) comparable to those maintained generally by Wendy’s covering the Tim
Hortons Covered Parties prior to the Effective Date; provided, however, that if
Wendy’s determines that (i) the amount or scope of such insurance coverage will be reduced to a
level materially inferior to the level of insurance coverage in existence immediately prior to the
Insurance Transition Period or (ii) the retention or deductible level applicable to such insurance
coverage, if any, will be increased to a level materially greater than the levels in existence
immediately prior to the Insurance Transition Period, in each case other than solely as a result of
the Offering, Wendy’s shall give Tim Hortons notice of such determination as promptly as
practicable. Upon notice of such determination, Tim Hortons shall be entitled to 60 days to
evaluate Tim Hortons’ options regarding continuance of insurance coverage under said Insurance
Policies and Tim Hortons may cancel the Tim Hortons Group’s interest in all or any portion of such
insurance coverage as of any day within such 60 day period.

     (b) Tim Hortons shall promptly pay to Wendy’s the amounts set forth in Schedule III
(subject to the adjustments described therein) for premium expenses, deductibles or retention
amounts, and any other costs and expenses that Wendy’s may incur in connection with the insurance
coverages maintained pursuant to this Section 6.01. Similarly, Wendy’s shall promptly
reimburse Tim Hortons for any applicable credits received by Wendy’s. The Parties agree that Tim
Hortons may, at the discretion of Tim Hortons, obtain additional insurance coverages for the Tim
Hortons U.S. business, from any insurance carrier approved by Wendy’s (which approval shall not be
unreasonably withheld), to supplement or replace coverages provided under this Section
6.01. In addition, Tim Hortons may purchase insurance coverage as an alternative to that
described in subsection A of Schedule III, from any insurance carrier approved by Wendy’s
(which approval shall not be unreasonably withheld), and, in such case, subject to Section
5.03(a), Tim Hortons may terminate the insurance Services provided hereunder by Wendy’s in
whole or in part after giving reasonable notice thereof to Wendy’s.

     Section 6.02 Cooperation; Payment of Insurance Proceeds to Tim Hortons; Agreement Not to
Release Carriers. Each Party shall share such information, including claims data, as is
reasonably necessary to permit the other Party to manage and conduct its insurance matters in an
orderly fashion. Wendy’s, at the request of Tim Hortons, shall cooperate with and use commercially
reasonable efforts to assist Tim Hortons in recovering Insurance Proceeds under the Wendy’s
Insurance Policies for claims relating to the Tim Hortons Business or the Tim

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Hortons Covered Parties, whether such claims arise under any agreement, by operation of law or
otherwise, existing or arising from any past acts or events occurring or failing to occur or
alleged to have occurred or to have failed to occur or any conditions existing or alleged to have
existed before the Effective Date, on the Effective Date or during the Insurance Transition Period,
and Wendy’s shall promptly pay any such recovered Insurance Proceeds to Tim Hortons (to the extent
that the right to such proceeds has not already been satisfied, whether by direct payment by the
insurer or administrator, intercompany entry or otherwise). Wendy’s and Tim Hortons shall not, and
each will cause their respective Group members not to, take any action that would intentionally
jeopardize or otherwise interfere with the other Party’s ability to collect any proceeds payable
pursuant to any Insurance Policy. Except as otherwise contemplated by this Agreement or any other
agreement between the Parties, after the Effective Date, neither Party shall (nor permit any of its
respective Group members to), without the consent of the other Party, provide any insurance carrier
with a release, or amend, modify or waive any rights under any such policy or agreement, if such
release, amendment, modification or waiver would adversely affect any rights or potential rights of
such other Party (or its Group members) thereunder. However, nothing in this Section 6.02
shall (a) preclude any Group member from presenting any claim or from exhausting any policy limit,
(b) require any Group member to pay any premium or other amount or to incur any Liability, or (c)
require any Group member to renew, extend or continue any policy in force.

     Section 6.03 Tim Hortons Insurance Coverage After the Insurance Transition Period. From
and after expiration of the Insurance Transition Period, Tim Hortons shall be responsible for
obtaining and maintaining insurance programs for the Tim Hortons Group’s risk of loss and such
insurance arrangements shall be separate and apart from the insurance programs of Wendy’s.

     Section 6.04 Deductibles and Self-Insured Obligations. Each of Wendy’s and Tim Hortons
shall be responsible on or after January 1, 2006 for payment of self-insured retentions,
deductibles and other amounts not covered by insurance policies pertaining to the Wendy’s Business
and the Tim Hortons Business, respectively. For all claims incurred on or after January 1, 2006
(but not for any claims incurred prior to such date), Tim Hortons shall reimburse Wendy’s for all
amounts necessary to exhaust or otherwise satisfy all applicable self-insured retentions,
deductibles and other amounts not covered by Insurance Policies in connection with Tim Hortons
Liabilities and Insured Tim Hortons Liabilities to the extent Wendy’s is required to pay any such
amounts.

     Section 6.05 Procedures with Respect to Insured Tim Hortons Liabilities.

     (a) Tim Hortons shall reimburse Wendy’s for all Losses incurred to pursue insurance recoveries
from Insurance Policies for Insured Tim Hortons Liabilities.

     (b) The defense of claims, suits or actions giving rise to potential or actual Insured Tim
Hortons Liabilities shall be managed (in conjunction with Wendy’s and its insurers, as appropriate)
(i) by Wendy’s where incurred under workers’ compensation, general liability, auto liability,
property or umbrella liability policies that pertain to the Tim Hortons Business in the United
States; or otherwise (ii) by Tim Hortons.

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     (c) Wendy’s shall be responsible for self-insured retentions, deductibles and other amounts
not covered by insurance policies for claims incurred, relating to workers’ compensation, general
liability, auto liability, property and umbrella liability claims (whether reported or not) that
pertain to the Tim Hortons Business in the United States, prior to January 1, 2006. Tim Hortons
shall be responsible for self-insured retentions, deductibles and other amounts not covered by
insurance policies for all other claims incurred, that pertain to the Tim Hortons Business, prior
to January 1, 2006.

     Section 6.06 Insufficient Limits of Liability for Wendy’s Liabilities and Tim Hortons
Liabilities. If there are liabilities in excess of coverage limits available under Wendy’s
Insurance Policies so that Wendy’s Insurance Policies will not cover the Liabilities of Wendy’s
and/or Tim Hortons that would otherwise be covered by such Insurance Policies, then to the extent
other insurance is not available to Wendy’s and/or Tim Hortons for such Liabilities, the Parties
will work together in good faith to determine a reasonable and equitable allocation of the proceeds
of the Wendy’s Insurance Policies between such Parties. This Section 6.06 shall terminate
10 years following the end of the Insurance Transition Period.

     Section 6.07 Cooperation. Wendy’s and Tim Hortons shall cooperate with each other in all
respects, and shall execute any additional documents that are reasonably necessary, to effectuate
the provisions of this Article VI.

     Section 6.08 No Assignment or Waiver. This Agreement shall not be considered as an
attempted assignment of any policy of insurance or as a contract of insurance and shall not be
construed to waive any right or remedy of any member of the Wendy’s Group or the Tim Hortons Group
in respect of any Insurance Policy or any other contract or policy of insurance.

     Section 6.09 No Liability. Tim Hortons does hereby, for itself and as agent for each other
member of the Tim Hortons Group, agree that no Wendy’s Indemnified Person shall have any Liability
whatsoever as a result of the insurance policies and practices of the Wendy’s Group as in effect at
any time prior to the end of the Insurance Transition Period, including as a result of the level or
scope of any such insurance, the creditworthiness of any insurance carrier, the terms and
conditions of any policy, or the adequacy or timeliness of any notice to any insurance carrier with
respect to any claim or potential claim or otherwise; provided, that the waiver in the
foregoing clause regarding adequacy or timeliness shall not apply to Wendy’s if Tim Hortons has
requested in writing that Wendy’s give a notice or otherwise make a claim to an insurance carrier
and Wendy’s fails to give such notice or make such claim in a reasonably timely manner, with
reference to the standard of performance set forth in Section 4.01.

     Section 6.10 Additional or Alternate Insurance. Notwithstanding any other provision of
this Agreement, during the Insurance Transition Period, Wendy’s and Tim Hortons shall cooperate to
evaluate insurance options and secure additional or alternate insurance for Tim Hortons and/or
Wendy’s if desired by and cost effective for Tim Hortons and Wendy’s. Nothing in this Agreement
shall be deemed to restrict any member of the Tim Hortons Group from acquiring at its own expense
any other Insurance Policy in respect of any Liabilities or covering any period.

15

 

     Section 6.11 Forbearance and Prior Insurance Coverage.

     (a) From and after the date of this Agreement, Wendy’s shall not, and shall cause its Group
not to, take or fail to take any action if such action or inaction, as the case may be, would
adversely affect the applicability of any insurance in effect on the Effective Date that covers all
or any part of the assets, liabilities, business, directors, officers or employees of any member of
the Tim Hortons Group with respect to events occurring prior to the Effective Date (“Applicable
Insurance”).

     (b) Wendy’s agrees that, from and after the Effective Date, all Applicable Insurance directly
or indirectly applicable to any assets, liabilities, business, directors, officers or employees of
any member of the Tim Hortons Group shall be for the benefit of such Group member, it being
understood that such Applicable Insurance shall also be for the benefit of the Wendy’s Group to the
extent directly or indirectly applicable to any assets, liabilities, business, directors, officers
or employees of the Wendy’s Group. Without limiting the generality of the foregoing, upon Tim
Hortons’ reasonable request, Wendy’s shall use reasonable efforts to modify, amend or assign all
Applicable Insurance policies and arrangements (to the extent relating to the Tim Hortons Business)
so that the applicable members of the Tim Hortons Group are the direct beneficiaries of such
Applicable Insurance with all rights to enforce, obtain the benefit of and take all other action in
respect of such Applicable Insurance; provided, however, that if the modifications,
amendments or assignments contemplated by this Section 6.11(b) are not permissible, Wendy’s
shall, and shall cause each of its Group members to, use reasonable efforts to enter into such
other arrangements as Tim Hortons may reasonably request to ensure that the Tim Hortons Group is
entitled to the benefit (to the fullest extent set forth in the relevant policies and arrangements)
of any Applicable Insurance.

     Section 6.12 Further Agreements. The Parties acknowledge that they intend to allocate
financial obligations without violating any laws regarding insurance, self-insurance or other
financial responsibility. If it is determined that any action undertaken pursuant to this
Agreement or any related agreement between or involving the Parties violates any insurance,
self-insurance or related financial responsibility law or regulation, the Parties agree to work
together to do whatever is necessary to comply with such law or regulation while trying to
accomplish, as much as possible, the allocation of financial obligations as intended in this
Agreement or any such related agreement.

ARTICLE VII

ADDITIONAL AGREEMENTS

     Section 7.01 Annual Budget. Prior to October 17, 2006 and October 17 of each calendar year
thereafter so long as this Agreement is in effect, the Parties agree to work together and to
cooperate with each other in good faith to develop an annual budget (“Annual Budget”) to reflect
the estimated annual Service Costs to each Party for each of the Services to be provided and/or
procured by the other Party as contemplated by this Agreement. In the budgeting process, the
Parties agree to use their reasonable efforts to harmonize the interests of the Parties to have
quality services provided at affordable costs and to recover the costs of performing and/or
procuring the Services. On or before December 31 of each calendar year, an Annual Budget for the
next calendar year shall be submitted to the respective Controller or Chief Financial Officer

16

 

of each of the Parties for review and approval. Such approval shall constitute approval of the
Annual Budget by the Party represented by such person. During the months of July and January of
each year so long as this Agreement is in effect, the Parties shall conduct a semi-annual
reconciliation of actual Service Costs to budgeted Service Costs to determine if there are any
significant discrepancies between such costs and, if so, whether the payments for Services should
be adjusted accordingly.

     Section 7.02 Assignment. Except as expressly permitted under this Agreement, neither Party
will assign, transfer or otherwise alienate any or all of its rights or interest under this
Agreement without the express prior written consent of the other Party, which consent may be
granted or withheld in such other Party’s sole discretion. Any attempted transfer in violation of
the previous sentence shall be invalid and ineffective ab initio.

     Section 7.03 Turnover. At or before the termination of this Agreement or of any Service
provided hereunder, to expedite and facilitate the turnover, and provide for a smooth transition,
of the applicable function(s), the applicable Billing Party will provide any cooperation or
information reasonably requested by the applicable Receiving Party in connection with such
Receiving Party’s assumption of such function(s).

ARTICLE VIII

MISCELLANEOUS

     Section 8.01 Entire Agreement. This Agreement and the other Separation Agreements
constitute the entire agreement between the Parties with respect to the subject matter hereof and
thereof and supersede (a) all prior oral or written proposals or agreements, (b) all
contemporaneous oral proposals or agreements and (c) all previous negotiations and all other
communications or understandings between the Parties. To the extent any portion of this Agreement
conflicts with the Master Separation Agreement or the Tax Sharing Agreement, the Master Separation
Agreement or the Tax Sharing Agreement, as the case may be, shall control.

     Section 8.02 No Agency. Nothing in this Agreement shall constitute or be deemed to
constitute a partnership or joint venture between the Parties or, except to the extent provided in
Section 4.02, constitute or be deemed to constitute any Party the agent or employee of the
other Party for any purpose whatsoever, and neither Party shall have authority or power to bind the
other Party or to contract in the name of, or create a liability against, the other Party in any
way or for any purpose.

     Section 8.03 Subcontractors. Either Party may hire or engage one or more subcontractors to
perform all or any of its obligations under this Agreement; provided, however,
that, subject to Section 4.03, such Party shall in all cases remain primarily responsible
for all obligations undertaken by it in this Agreement with respect to the scope, quality and
nature of the Services provided to the other Party and, provided further, that, in
each case, the use of a subcontractor to perform such Party’s obligations would not substantially
increase the costs to the other Party.

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     Section 8.04 Force Majeure.

     (a) Without limiting the generality of Section 4.03, neither Party shall be under any
liability for failure to fulfill any obligation under this Agreement, so long as and to the extent
to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a
consequence of circumstances of Force Majeure; provided, however, that such Party
shall have exercised all commercially reasonable efforts to minimize the effect of Force Majeure on
its obligations hereunder.

     (b) Promptly on becoming aware of Force Majeure causing a delay in performance or preventing
performance of any obligations imposed by this Agreement (and termination of such delay), the Party
affected shall give written notice to the other Party giving details of the same, including
particulars of the actual and, if applicable, estimated continuing effects of such Force Majeure on
the obligations of the Party whose performance is prevented or delayed. If such notice shall have
been duly given, any actual delay resulting from such Force Majeure shall be deemed not to be a
breach of this Agreement, and the period for performance of the obligation to which it relates
shall be extended accordingly; provided, however, that if Force Majeure results in
the performance of a Party being delayed by more than 60 days, the other Party shall have the right
to terminate this Agreement for any Service affected by such delay forthwith by written notice.

     Section 8.05 Information. Subject to applicable law and privileges, each Party hereto
covenants with and agrees to provide to the other Party all information regarding itself and
transactions under this Agreement that the other Party reasonably believes is required to comply
with all applicable federal, state, provincial, county and local laws, ordinances, regulations and
codes, including but not limited to securities laws and regulations.

     Section 8.06 Notices. Any invoice, notice, instruction, direction or demand under the
terms of this Agreement required to be in writing shall be duly given upon delivery, if delivered
by hand, facsimile transmission or mail (with postage prepaid), to the following addresses:

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	 	(a)	 	If to Tim Hortons, to:
	 
	 	 	 	Corporate Secretary

Tim Hortons Inc.

c/o Corporate Secretary

Wendy’s International, Inc.

4288 West Dublin-Granville Road

P.O. Box 256

Dublin, OH 43017-0256

Fax: (614) 764-3243
	 
	 	 	 	With a copy to (which shall not constitute notice):
	 
	 	 	 	General Counsel

Tim Hortons Inc.

874 Sinclair Road

Oakville, Ontario L6K 2Y1

Canada

Fax: (905) 845-1458
	 
	 	(b)	 	If to Wendy’s, to:
	 
	 	 	 	Corporate Secretary

Wendy’s International, Inc.

4288 West Dublin-Granville Road

P.O. Box 256

Dublin, OH 43017-0256

Fax: (614) 764-3243
	 
	 	 	 	With a copy to (which shall not constitute notice):
	 
	 	 	 	General Counsel

Wendy’s International, Inc.

4288 West Dublin-Granville Road

P.O. Box 256

Dublin, OH 43017-0256

Fax: (614) 764-3243

or to such other addresses or telecopy numbers as may be specified by like notice to the other
Party.

     Section 8.07 Governing Law. This Agreement shall be construed in accordance with and
governed by the substantive internal laws of the State of Ohio, excluding its conflict of laws
rules.

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     Section 8.08 Severability. If any term or other provision of this Agreement or the
Schedules or exhibits hereto shall be determined by a court, administrative agency or arbitrator to
be invalid, illegal or unenforceable, such invalidity or unenforceability shall not render the
entire Agreement invalid. Rather, this Agreement shall be construed as if not containing the
particular invalid, illegal or unenforceable provision, and all other provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially adverse to either
Party. Upon such determination that any term or other provision is invalid, illegal or
unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable manner to the end that
the transactions contemplated hereby are fulfilled to the fullest extent permitted under applicable
law.

     Section 8.09 Amendment. This Agreement may only be amended by a written agreement executed
by both Parties hereto.

     Section 8.10 Counterparts. This Agreement may be executed in separate counterparts, each
of which shall be deemed an original and all of which, when taken together, shall constitute one
and the same agreement.

     Section 8.11 Authority. Each of the Parties represents to the other Party that (a) it has
the corporate or other requisite power and authority to execute, deliver and perform this
Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate or other actions, (c) it has duly and validly executed and
delivered this Agreement and (d) this Agreement is its legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general
equity principles.

     Section 8.12 Confidentiality.

     (a) Each Party acknowledges that in performance of the Services it may be processing Personal
Information. Each Party shall protect all Personal Information processed by it with physical,
organizational and technological safeguards that are appropriate to the nature, quantity and
sensitivity of such information, applying security standards and procedures equivalent to those
used to protect its own and its other customers’ confidential information and in conformity with
any specific security directives provided to it by the other Party and accepted by it. If such
Party is not able to comply with any proposed security directive provided to it by the other Party,
it will so advise the other Party forthwith in writing and the other Party then shall be entitled
either to terminate this Agreement upon written notice to such Party, effective immediately, or to
vary such directive in a manner acceptable to such Party. Each Party shall limit access to all
Personal Information relating to the other Party’s business to those of its employees who have a
need for such access in order to perform their work and shall restrict entry of authorized persons
to those areas of its premises in which Services are performed or in which any Personal Information
is held or located. Each Party shall limit any use or disclosure to third parties of any Personal
Information provided to it by the other Party to the Designated Purposes, except as may be required
by law.

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     (b) Each Party shall refer to the other Party all requests for access to any Personal
Information relating to the other Party in its possession or control.

     Section 8.13 Audits. Without in any way limiting any other right that either Party may
have under this Agreement, each Party and/or its authorized representatives shall have the right
from time to time, and upon reasonable prior notice, to enter upon any premises of the other Party
during normal business hours to audit and inspect:

     (a) the Services provided by the other Party, including the other Party’s adherence to the
provisions of this Agreement; and

     (b) the other Party’s security standards and procedures and the level of adherence to and
actual implementation of those standards and procedures as required under this Agreement..

     Section 8.14 Compliance With Laws. Each Party shall comply with all applicable legal
requirements (including all relevant federal, state and provincial legislation and regulatory
requirements); and without limiting the generality of the foregoing, each Party shall comply with,
and shall take all necessary measures to ensure that its actions (or lack of action) do not result
in non-compliance by the other Party, with the provisions of the Personal Information Protection
and Electronic Documents Act (Canada) and any similar federal, state or provincial legislation,
including the provisions relating to the collection, use, retention and disclosure of personal
information.

[The next page is the signature page.]

21

 

     IN WITNESS WHEREOF, the Parties have caused this Shared Services Agreement to be signed by
their duly authorized representatives.

	 	 	 	 	 
	 	TIM HORTONS INC.

 	 
	 	By:  	 	 
	 	 	Paul D. House 	 
	 	 	Chief Executive Officer and President 	 
	 
	 	WENDY’S INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	John T. Schuessler 	 
	 	 	Chief Executive Officer and President 	 
	 

 

 

SCHEDULE I

to

Shared Services Agreement

WENDY’S SERVICES

	 	 	 	 	 	 	 
	 	 	Billing Method	 	 
	Service	 	(in U.S. dollars)	 	Description
	 
	 	 	 	 	 	 
	Internal Audit	 	Customary Billing for third party
costs (e.g., professional service
providers) in accordance with
established hourly rates, when
available, incurred on behalf of Tim
Hortons in line with service levels
agreed at least quarterly.	 	Coordination of internal audit
services, assistance with
Sarbanes-Oxley compliance and
oversight of Tim Hortons internal
audit staff.
	 
	 	 	 	 	 	 
	 	 	Variable Rate
Billing — Percentage
of department costs to be billed to
Tim Hortons determined annually,
based on anticipated support
requirements (i.e., number of
projects associated with Tim
Hortons). Changes to estimated
support requirements shall be
reviewed at least quarterly.	 	 
	 
	 	 	 	 	 	 
	Information Technology	 	Fixed Price Billing
— for
infrastructure costs (e.g., data
center, network, etc.); Peoplesoft
and other application software
(including license, annual
maintenance, upgrades, etc.)	 	Establishes and maintains
information technology
infrastructure (data center,
network, communications, etc.),
system applications and system
operations and provides project support.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $141,700 per
month.	 	 
	 
	 	 	 	 	 	 
	 	 	Customary Billing
— for project
management and delivery to the
extent greater than 2004 and 2005
levels.	 	 
	 
	 	 	 	 	 	 
	Accounts Payable	 	Fixed Price Billing	 	Includes preparation and distribution of vendor payments and expense reports.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $700 per month.
	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Rate subject to
renegotiation if number of Tim
Hortons U.S. company stores
increases by 50 stores (to
approximately 130) or decreases
by 50 stores	 	 

Schedule I Page 1

 

	 	 	 	 	 	 	 
	 	 	Billing Method	 	 
	Service	 	(in U.S. dollars)	 	Description
	Payroll	 	Fixed Price Billing	 	Includes preparation and distribution of employee checks; and payment of payroll taxes, garnishment and other deductions to appropriate parties.
	 
	 	 	 	 	 
	 
	 	•

•
	 	Rate of $800 per
month.

Rate subject to
renegotiation if number of Tim
Hortons U.S. company stores
increases by 50 stores (to
approximately 130) or decreases
by 50 stores.	 
	 
	 	 	 	 	 	 
	Real Estate	 	Fixed Price Billing	 	Includes administrate support (copying, plotting, etc.), energy purchases, site survey review, certain volume discount purchases for new stores and use of software for site selection.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $9,100
per month.	 
	 
	 	 	 	 	 
	 

	 	•
	 	Rate subject to
renegotiation if number of Tim
Hortons U.S. company stores
increases by 50 stores (to
approximately 130) or decreases
by 50 stores.	 
	 
	 	 	 	 	 	 
	Tax	 	Customary Billing for third party
costs incurred on behalf of Tim
Hortons in line with customary
practices (e.g., professional
service providers). Amounts greater
than $35,000 to be
agreed in advance.	 	Includes preparation and filing of
all U.S. federal, state, and local
tax returns, reports and other
required filings; preparation and
filing of payroll tax returns; and
preparation of personal property tax
	 

	 	 	 	 	 	returns; coordination and management of 
	 
	 	Fixed Price Billing	 	tax audits and other
similar proceedings;
	 

	 	 	 	 	 	and assistance with tax planning, tax
	 

	 	•	 	Rate of $47,400 per month.	 	strategy and compliance with the Tax
	 
	 	 	 	 	 	Separation Agreement.
	 
	 	 	 	 	 	 
	Cash Management	 	Fixed Price Billing	 	Includes cash management, electronic cash transfers and administration of bonds and letters of credit.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $6,300 per month.	 
	 
	 	 	 	 	 	 
	Employee Benefits	 	Customary Billing
— based on
specific cost identification and
headcount allocation for Tim Hortons
U.S. employees in line with
customary practices. Amounts greater
than $35,000 to be agreed in advance.	 	Includes administration of
retirement and medical benefit
plans for Tim Hortons’ US employees

Schedule I Page 2

 

	 	 	 	 	 	 	 
	 	 	Billing Method	 	 
	Service	 	(in U.S. dollars)	 	Description
	General Accounting and Financial
Reporting Services	 	Fixed Price Billing	 	Includes miscellaneous accounting support and administrations of financial reporting systems.
	 

	 	•
	 	Rate of $12,300 per month.	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	SEC Reporting and Controller Services	 	Fixed Price Billing	 	Includes compliance for Securities and Exchange (“SEC”) filings, maintaining of accounting policies, preparation of consolidated financial statements; preparation of quarterly, annual, and other SEC reports; assistance with the preparation of annual report to stockholders; earnings release assistance; and preparation of ERISA reports.
	 
	 	 	 	 	 
	 

	 	•	 	Rate of $15,000
per month.	 
	 
	 	 	 	 	 
	 	 	Customary Billing
— for third party
costs in line with customary
practices, except allocation of
external audit fees paid by Wendy’s
shall be limited to audit fees
incurred for the separate Tim
Hortons Inc. financial statements.	 	 
	 
	 	 	 	 	 	 
	Fleet	 	Fixed Price Billing	 	Includes purchase and management of company vehicles.
	 
	 	 	 	 	 
	 

	 	•	 	Rate of $2,000 per month.	 
	 
	 	 	 	 	 	 
	Legal	 	Pass-Through Billing
— for any
third-party legal costs incurred
specifically on behalf of Tim
Hortons.

Fixed Price Billing	 	Includes general legal advice from
in-house legal staff; preparation
and review of SEC filings and proxy
materials; corporate governance; benefit plan design; and overseeing and managing legal policy and strategy regarding litigation and regulatory compliance.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $76,000 per month.	 
	 
	 	 	 	 	 	 
	Executive	 	Fixed Price Billing	 	Includes services of Wendy’s Chief Executive Officer and Chief Financial Officer.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $210,000 per month	 
	 
	 	 	 	 	 	 
	Investor Relations	 	Fixed Price Billing	 	Includes communications, meetings and conferences with various external parties including analysts, investors and others.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $48,000 per month.

	 
	 
	 	 	 	 	 	 
	Human Resources	 	Fixed Price Billing	 	Includes compensation; benefit plan design and administration; ethics program administration; and training.
	 
	 	 	 	 	 
	 

	 	•

•
	 	Rate of $50,000
per month.

Rate subject to
renegotiation if number of TH
US company store employees
increases by 200 (current count
is 1,281).	 
	 
	 	 	 	 	 	 
	 	 	Pass-Through Billing
— for third
party costs incurred specifically
on behalf of Tim Hortons	 	 

Schedule I Page 3

 

	 	 	 	 	 	 	 
	 	 	Billing Method	 	 
	Service	 	(in U.S. dollars)	 	Description
	 

	 	•
	 	Tim Hortons shall not be
billed for services above and
beyond current services (e.g.
surveys or training, unless
specifically authorized by Tim
Hortons).	 	 
	 
	 	 	 	 	 	 
	Restricted Stock Compensation	 	Pass-Through Billing
— of costs
associated with Tim Hortons
employees participating in Wendy’s
restricted stock compensation plan.	 	Including costs associated with Tim
Hortons employees participating in
Wendy’s restricted stock
compensation plan.
	 
	 	 	 	 	 	 
	Board Fees	 	Fixed Price Billing	 	Includes costs associated with Wendy’s outside directors and Board of Director and committee meetings.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $20,000 per month.	 
	 
	 	 	 	 	 	 
	Treasury	 	Fixed Price Billing	 	Includes establishing and maintaining bank credit lines; issuance of debt; assistance with rating agencies; assistance with mergers and acquisitions; and assistance with other related matters.
	 
	 	 	 	 	 
	 

	 	•
	 	Rate of $19,000
per month.

	 
	 
	 	 	 	 	 	 
	Other Costs (not included in above

services)	 	Fixed Rate
Billing — for Wendy’s

headquarter overhead support	 	Includes reimbursement of costs
related to headquarter building services, maintenance, travel, and other related supporting functions; use of corporate aircraft; and amounts paid on behalf of Tim Hortons.
	 
	 	 	 	 	 
	 

	 	•	 	Rate of $50,000 per month.

	 
	 
	 	 	 	 	 	 
	 	 	Pass-Through Billing
— for third
party or Wendy’s costs incurred
specifically on behalf of Tim
Hortons.	 	 
	 
	 	 	 	 	 	 
	 	 	Customary Billing
— for other costs
related to Tim Hortons operations.	 	 

Schedule I Page 4

 

SCHEDULE II

to

Shared Services Agreement

TIM HORTONS SERVICES

	 	 	 	 	 	 	 
	 	 	Billing Method	 	 
	Service	 	(in Canadian. dollars)	 	Description
	Tim Hortons property occupied by
Wendy’s Canada headquarters and
Peterborough store, less property
taxes paid by Wendy’s for Tim
Hortons in fixed rate billing

	 	Rate of $11,200 (CDN) per month	 	 	 	 
	 
	 	 	 	 	 	 
	Construction	 	$20,000 (CDN) per store for
Wendy’s Restaurants of Canada
(“WROC”) or the TimWen Combo
Store Partnership (“TimWen”) plus
disbursements: example, soils,
engineering, development costs
and inspections	 	Includes project management,
sites visits, invoicing
Sites to be mutually agreed upon
	 
	 	 	 	 	 	 
	Finance
	 	 	 	 	 	 
	(a) accounts payable	 	$1,650 per month (CDN)	 	TDL’s accounts payable department
processing construction related
invoices for WROC and TimWen
construction sites
	 
	 	 	 	 	 	 
	(b) financial statements	 	$1,250 per month (CDN), amount to
be billed to Gateway.

Customary billing for special
projects as agreed.	 	Finance group provides accounting services for Gateway including
preparation of monthly financial statements, preparation of annual financial statements for filing with income tax returns
	 
	 	 	 	 	 	 
	Tax	 	$6,400 per month (CDN)

Customary billing for special

projects as agreed	 	With respect to WROC, the Wendy’s
Canadian Advertising Program and
TimWen:
	 

	 	 	 	—

—

—

—

—
	 	preparing and filing all
income and sales tax
returns

preparing quarterly
income tax provisions as
well as monthly accounts
analysis for income tax
accounts

reviewing invoices to
self assess PST as well
as assess Regulation 105
withholding tax

manage CRA income and
sales tax audits

tax compliance of SERP
of which 3 of WROC’s
senior management are
members
	 
	 	 	 	 	 	 
	SERP Management Fee	 	$167 per month (CDN)	 	Administration of SERP

Schedule II Page 1

 

SCHEDULE III

to

Shared Services Agreement

WENDY’S INSURANCE POLICIES

	 	 	 	 	 	 	 
	 	 	Billing Method	 	 
	Service	 	(in U.S. dollars)	 	Description
	Risk Management
	 	 	 	 	 	 
	 	 	A) Fixed Price Billing — for insurance coverage
and program expenses for the U.S. business. Billing
excludes workers compensation, general liability,
property, crime and vehicle claims below the excess
coverage amounts.	 	Includes negotiation and
acquisition of numerous liability
and property insurance policies
and administration of general
insurance claims.
	 
	 	 	 	 	 	 
	 

	 	•
	 	Rate of $29,600 per month, subject to
adjustment for changes in premium costs.	 	 
	 
	 	 	 	 	 	 
	 	 	B) Fixed Price Billing — for enterprise wide
insurance premiums established on an enterprise
basis, including (among other things) coverages
for director and officer, errors and omissions
and liability.	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Rate of $111,000 per month, subject to
adjustment for changes in premium costs.	 	 

Schedule III Page 1exv10w3

 

Exhibit 10.3

Form of

TAX SHARING AGREEMENT

by and between

WENDY’S INTERNATIONAL, INC.

and

TIM HORTONS INC.

dated                                         2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	ARTICLE II PREPARATION AND FILING OF TAX RETURNS
	 	 	10	 
	SECTION 2.01. Cooperation and Furnishing of Information
	 	 	10	 
	SECTION 2.02. Preparation of Tax Returns
	 	 	12	 
	SECTION 2.03. Payment of Taxes to Tax Authorities
	 	 	12	 
	SECTION 2.04. Agent
	 	 	13	 
	SECTION 2.05. Treatment of Settlement of Intercompany Tax Allocation Amounts
	 	 	13	 
	ARTICLE III U.S. CONSOLIDATED FEDERAL INCOME TAX LIABILITIES
	 	 	13	 
	SECTION 3.01. U.S. Federal Income Taxes (other than AMT)
	 	 	13	 
	SECTION 3.02. Taxable Year that Includes the Distribution Date
	 	 	14	 
	SECTION 3.03. U.S. Federal Alternative Minimum Tax
	 	 	15	 
	SECTION 3.04. Exercise of Options
	 	 	16	 
	SECTION 3.05. Examples
	 	 	16	 
	ARTICLE IV U.S. COMBINED STATE AND LOCAL INCOME TAXES AND NON-INCOME TAXES
	 	 	17	 
	SECTION 4.01. Returns Covered
	 	 	17	 
	SECTION 4.02. Pre-2006 Taxable Years
	 	 	17	 
	SECTION 4.03. Post-2005 Taxable Years
	 	 	17	 
	SECTION 4.04. Net Operating Losses
	 	 	17	 
	SECTION 4.05. Estimated Taxes
	 	 	17	 
	SECTION 4.06. Adjustments
	 	 	18	 
	SECTION 4.07. Non-Income Taxes
	 	 	18	 
	ARTICLE V SEPARATE TAXES
	 	 	18	 
	SECTION 5.01. Tim Hortons Tax Liability
	 	 	18	 
	SECTION 5.02. Wendy’s Tax Liability
	 	 	18	 
	SECTION 5.03. Separate Return Adjustments
	 	 	18	 
	ARTICLE VI INDEMNIFICATION FOR DISTRIBUTION TAXES
	 	 	19	 
	SECTION 6.01. Distribution Taxes
	 	 	19	 
	SECTION 6.02. Continuing Covenants
	 	 	20	 
	ARTICLE VII CARRYFORWARD AND CARRYBACK ITEMS
	 	 	21	 
	SECTION 7.01. Carryovers to Post-Affiliation Years
	 	 	21	 
	SECTION 7.02. Carrybacks from Post-Affiliation Years
	 	 	22	 
	ARTICLE VIII U.S. FEDERAL INCOME TAX ADJUSTMENTS
	 	 	22	 
	SECTION 8.01. Determination
	 	 	22	 
	SECTION 8.02. Payments
	 	 	22	 
	SECTION 8.03. Timing Differences
	 	 	22	 
	SECTION 8.04. Intercompany Adjustments
	 	 	23	 
	ARTICLE IX TAX PROCEEDINGS
	 	 	23	 
	SECTION 9.01. Audits
	 	 	23	 
	SECTION 9.02. Notice
	 	 	23	 
	SECTION 9.03. Remedies
	 	 	23	 
	SECTION 9.04. Control of Distribution Tax Proceedings
	 	 	24	 
	ARTICLE X POST-AFFILIATION YEARS AND POST-COMBINED YEARS
	 	 	24	 
	SECTION 10.01. Further Obligations of Tim Hortons
	 	 	24	 
	SECTION 10.02. Actions or Transactions
	 	 	24	 

i 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 10.03. Proposed Adjustments
	 	 	25	 
	ARTICLE XI INDEMNIFICATION
	 	 	25	 
	SECTION 11.01. By Wendy’s
	 	 	25	 
	SECTION 11.02. By Tim Hortons
	 	 	25	 
	SECTION 11.03. General
	 	 	25	 
	SECTION 11.04. Gain Recognition Agreement Taxes
	 	 	26	 
	ARTICLE XII BOOKS AND RECORDS; PAYMENTS
	 	 	26	 
	SECTION 12.01. Retention Period
	 	 	26	 
	SECTION 12.02. Tax Attributes
	 	 	27	 
	SECTION 12.03. Payments Under This Agreement
	 	 	27	 
	ARTICLE XIII DISPUTE RESOLUTION
	 	 	28	 
	SECTION 13.01. Dispute Resolution
	 	 	28	 
	ARTICLE XIV GENERAL PROVISIONS
	 	 	28	 
	SECTION 14.01. Term
	 	 	28	 
	SECTION 14.02. Right of Set-off
	 	 	28	 
	SECTION 14.03. Notices
	 	 	29	 
	SECTION 14.04. Interpretation
	 	 	29	 
	SECTION 14.05. Severability; No Presumption Against Drafter
	 	 	30	 
	SECTION 14.06. Counterparts
	 	 	30	 
	SECTION 14.07. No Third-Party Beneficiaries
	 	 	30	 
	SECTION 14.08. Prior Tax Sharing Agreements
	 	 	30	 
	SECTION 14.09. Entire Agreement; Amendments
	 	 	30	 
	SECTION 14.10. Successors
	 	 	31	 
	SECTION 14.11. Confidentiality
	 	 	31	 
	SECTION 14.12. Performance
	 	 	31	 
	SECTION 14.13. Governing Law
	 	 	31	 

ii 

 

 

TAX SHARING AGREEMENT

This Tax Sharing Agreement dated ___________ 2006

(the “TSA” or “Agreement”) by and between Wendy’s International, Inc.,

an Ohio corporation (“Wendy’s”) and Tim Hortons Inc., a Delaware

corporation (“Tim Hortons”). Wendy’s and Tim Hortons, are sometimes

referred to herein as the “Parties” and each a “Party”).

     WHEREAS, Wendy’s is the common parent corporation of an affiliated group of corporations
within the meaning of Section 1504(a) of the Internal Revenue Code of 1986, as amended (the “Code”)
and of consolidated, combined, unitary and other similar groups as defined under similar laws of
other jurisdictions, and income of certain present and former members of the Tim Hortons Group
(defined below) has been or will be included in Wendy’s Consolidated Returns (defined below);

     WHEREAS, certain Tim Hortons Combined Group (defined below) members have filed or will file
Combined Returns (defined below) covering U.S. state and local income Taxes with Wendy’s Combined
Groups (defined below) as part of their respective Total Combined Groups (defined below);

     WHEREAS, Wendy’s and Tim Hortons currently contemplate that Tim Hortons will issue and sell in
an initial public offering (the “IPO”) shares of Tim Hortons common stock (the “Tim Hortons Common
Stock”) that will reduce Wendy’s ownership of Tim Hortons on a fully-diluted basis to not less than
80.1 percent;

     WHEREAS, Wendy’s may make a distribution to holders of issued and outstanding shares of common
stock, par value $.10 per share, of Wendy’s, other than shares of Wendy’s common stock held in the
treasury of Wendy’s, of all of the issued and outstanding shares of Tim Hortons Common Stock,
beneficially owned by Wendy’s, by means of a dividend of such Tim Hortons Common Stock to such
shareholders on either a pro rata or non-pro rata basis (the “Distribution”); and

     WHEREAS, it is appropriate and desirable to set forth the principles and responsibilities of
the Parties regarding the allocation of Taxes (as defined herein) and other related liabilities and
adjustments with respect to Taxes, audits and certain other Tax matters that affect the Wendy’s
Group and the Tim Hortons Group.

     NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein and
intending to be legally bound hereby, the Parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     As used in this Agreement, the following terms shall have the following meaning:

 

 

          “Additional Available Items” has the meaning set forth under “Reimbursable Wendy’s Group
Benefits.”

          “Adjusted Separate Tim Hortons Group Federal Tax Liability” means with respect to any
Affiliation Year(s) the U.S. federal income Tax liability of the Tim Hortons Group, other than the
Tim Hortons Distribution Tax Liability, as determined by Wendy’s in good faith, applying the
highest U.S. federal income Tax rate applicable to a corporation for the taxable year in question,
computed as if the Tim Hortons Group (with Tim Hortons as the common parent) filed a consolidated
U.S. federal income Tax Return separately from the Wendy’s Group (“Tim Hortons Consolidated
Return”), applying such U.S. Tax laws and regulations as would have been applicable to the Tim
Hortons Group if it had so filed separately, subject to the following:

     (a) the Tim Hortons Group shall be treated as bound by all accounting methods,
elections and positions used in the Wendy’s Consolidated Return as actually filed for such
year (or as will be filed) and otherwise shall be prepared in a manner consistent with such
Wendy’s Consolidated Return and such other determinations adopted or made by Wendy’s for the
Wendy’s Group for all Affiliation Years;

     (b) the Tim Hortons Group shall be permitted to reduce further its Adjusted Separate
Tim Hortons Group Federal Tax Liability (but not below zero) by utilizing Available Items of
the Tim Hortons Group that Wendy’s determines in good faith the Tim Hortons Group would have
been unable to utilize if it had filed a Tim Hortons Consolidated Return for such year to
the extent that Wendy’s determines in good faith that such Available Items reduced the U.S.
federal income Tax liability of the Wendy’s Affiliated Group on the Wendy’s Consolidated
Return for such Affiliation Year; provided, that if there are any limitations in the ability
of the Wendy’s Group to utilize items in the same category as such Available Items in their
entirety for such year, the Tim Hortons Group shall be limited in the reduction of its
Adjusted Separate Tim Hortons Group Federal Tax Liability to its share of such Available
Items, as determined by Wendy’s, on a Proportionate Basis, in the case of Available Items
other than Consolidated Foreign Tax Credits, or in the manner provided in subsection (f), in
the case of Consolidated Foreign Tax Credits; provided, further, that if, pursuant to the
above provisions, an item of deduction, loss, or Credit of the Tim Hortons Group is not
usable, in whole or in part, by the Wendy’s Group in one Affiliation Year, it may, as
determined by Wendy’s in good faith, be carried over (but not carried back) as an item of
deduction, loss, or Credit of the Tim Hortons Group to any subsequent Affiliation Year,
subject to the same limitations as above;

     (c) the Tim Hortons Group shall take into account the items of Tim Hortons Group
income, gain, loss, deduction or Credit attributable to intercompany items, excess loss
accounts, dual consolidated losses and other items that Wendy’s determines in good faith are
required to be restored, recaptured or otherwise triggered to a member of the Tim Hortons
Group as a result of the Distribution or any related transactions;

2

 

     (d) the Tim Hortons Group shall not take into account any deduction or other tax
benefit attributable to the exercise of an option to purchase Wendy’s stock by an employee
or former employee of any Tim Hortons Group member;

     (e) except as modified by (f) below, in the case of any limitations on the use of net
operating losses, credits or other tax attributes which, in the Wendy’s Consolidated Return
as actually filed, are determined on a consolidated basis (such as the foreign tax credit
limitation) or by taking into account items related to persons other than the member which
generated such tax attribute (such as the limitation on the deductibility of interest
expense under Section 163(j) or Section 861 of the Code), the Adjusted Separate Tim Hortons
Group Federal Tax Liability shall be determined based on the actual amount of such
limitations in the Wendy’s Consolidated Return as filed, and not by recalculating such
limitations as though separate U.S. federal income Tax Returns were filed; and

     (f) with respect any Affiliation Year, Foreign Income Taxes may only be used to reduce
the Adjusted Separate Tim Hortons Group Federal Tax Liability to the extent that they
constitute Consolidated Foreign Tax Credits. In determining the Tim Hortons Group’s and the
Wendy’s Group’s respective shares of the Consolidated Foreign Tax Credit, as computed for
each of Wendy’s Affiliated Group’s foreign tax credit separate limitation categories (as set
forth in Section 904(d) of the Code and the Regulations thereunder, and hereinafter referred
to as a “basket” or collectively, as “baskets”) such shares will be determined in the
following manner:

     (i) If, after taking into account the Tim Hortons Group’s contribution to the
Consolidated Foreign Tax Credit, the Wendy’s Affiliated Group has an Excess Foreign
Tax Credit Limitation for a particular basket, then the Tim Hortons Group’s share of
the Consolidated Foreign Tax Credit for that basket will be an amount equal to its
contribution to the Foreign Income Taxes taken as a credit for the taxable year,
without regard to the amount or proportion of the Tim Hortons Group’s contribution
of income in the basket.

     (ii) If, after taking into account the Tim Hortons Group’s contribution to the
Consolidated Foreign Tax Credit, the Wendy’s Affiliated Group has an Excess Foreign
Tax Credit for a particular basket, then (A) the Wendy’s Group’s share of the
Consolidated Foreign Tax Credit for that basket will be an amount equal to its
contribution to the Foreign Income Taxes in that basket that are taken as a credit
for the taxable year, without regard to the amount or proportion of the Tim Hortons
Group’s contribution of income or Foreign Income Taxes to that basket; and (B) the
Tim Hortons Group’s share will be an amount equal to any remaining Foreign Income
Taxes in that basket that are taken as a credit for the taxable year (if any).

     (g) For further clarity, Wendy’s will calculate Tim Hortons’ liability on a separate
basis, using any items of deduction, loss, or Credit (including foreign tax credits as
provided in subsection (f) above) Tim Hortons would have used if the Tim Hortons Group (with
Tim Hortons as the common parent) filed a consolidated U.S. federal

3

 

income Tax Return separately from the Wendy’s Group. The examples under Section 3.05
illustrate this provision and are incorporated herein.

          “Adjustment” means any change in actual Tax liability from the Tax liability reported on the
applicable Tax Return, including changes attributable to amended Tax Returns, Audits, overpayments,
and claims for refund.

          “Affiliate” means any Legal Entity that is Controlled by the person in question. “Tim Hortons
Affiliate” means an Affiliate of Tim Hortons. For purposes of this Agreement, a Tim Hortons
Affiliate shall not include Ranew Development Ltd., Nautilus Land S.A., Wendy’s Old Fashioned
Hamburgers of Guam, L.L.C. and Nattlan I S.R.L. “Wendy’s Affiliate” means an Affiliate of Wendy’s
other than Tim Hortons and any Tim Hortons Affiliate. For purposes of this Agreement, a Wendy’s
Affiliate shall include Ranew Development Ltd., Nautilus Land S.A., Wendy’s Old Fashioned
Hamburgers of Guam, L.L.C. and Nattlan I S.R.L.

          “Affiliation Year” means each taxable year, or portion thereof, with respect to which any
member of the Tim Hortons Group joined or will join the Wendy’s Group in the filing of a Wendy’s
Consolidated Return.

          “After Tax Amount” means any additional amount necessary to eliminate (through a gross-up
mechanism) the Tax consequences of the receipt or accrual of any payment required to be made under
this Agreement (including payment of any additional amount required to gross up such additional
amounts), taking into account the effect of the deductions available for interest paid or accrued
and for Taxes such as state and local Income Taxes), and determined by assuming that the recipient
of the payment pays Tax at the highest applicable marginal corporate Tax rate (or rates, in the
case of an item that affects more than one Tax) for the relevant taxable period (or portion
thereof).

          “Agreement” has the meaning set forth in the first paragraph of this Agreement.

          “AMT” has the meaning set forth in Section 3.03(a) of this Agreement.

          “Audit” includes any audit, assessment of Taxes, other examination by any Tax Authority,
proceeding, or appeal of such a proceeding relating to Taxes, whether administrative or judicial,
including proceedings relating to competent authority determinations.

          “Available Items” means (i) items of deduction, loss, or Credit for taxable years beginning on
or after January 2, 2006; (ii) items of deduction, loss, or Credit other than foreign tax credits
for taxable years ending on or prior to January 1, 2006; and (iii) in the case of foreign tax
credits for taxable years ending on or prior to January 1, 2006, the lesser of, (A) the amount of
foreign tax credits and (B) the foreign tax credit limitation (without regard to the federal income
tax liability of the Tim Hortons Consolidated Return before credits) calculated with respect to the
Tim Hortons Consolidated Return for such year.

          “Basket” or “baskets” has the meaning set forth under “Adjusted Separate Tim Hortons Group
Federal Tax Liability.”

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          “Code” has the meaning set forth in the first WHEREAS clause of this Agreement.

          “Combined Return” means (i) any combined, consolidated or unitary U.S. state or local income
or franchise, or gross receipts Tax Return or (ii) any combined, consolidated or group non-U.S. Tax
Return.

          “Combined State” means a U.S. state or locality requiring or permitting the filing of a
Combined Return.

          “Combined Year” means a taxable year (or portion thereof) in which a Wendy’s Combined Group
files a Combined Return with a Tim Hortons Combined Group.

          “Consolidated Foreign Tax Credit” means the amount of the Wendy’s Affiliated Group’s Foreign
Income Taxes that are claimed as a credit on the Wendy’s Consolidated Return for the relevant
taxable year.

          “Control” or “Controlled” means the ownership of stock or other ownership interests, directly
or indirectly, possessing at least 50 percent of the total combined voting power of all classes of
stock or other ownership interest entitled to vote or 50 percent of the value.

          “Credit” or “Credits” means any credit or credits against U.S. federal income Tax or, as
applicable, against U.S. state or local Tax. Credits shall include foreign Tax credits, research
credits, low-income housing credits, investment Tax credits and targeted job credits.

          “Distribution” has the meaning set forth in the fourth WHEREAS clause of this Agreement.

          “Distribution Date” means the date on which the Distribution is effected.

          “Distribution Taxable Year” has the meaning set forth in Section 3.02(a) of this Agreement.

          “Distribution Taxes” means the product of (x) the aggregate amount of any gain or income
recognized by Wendy’s, each Wendy’s Affiliate, Tim Hortons and each Tim Hortons Affiliate resulting
from or arising in connection with the failure of the Distribution to be wholly tax-free under
Sections 355 of the Code (or any other applicable sections of the Code), including any gain or
income resulting from the application of Section 355(d) or Section 355(e) of the Code to the
Distribution, or corresponding provisions of the laws of any other jurisdiction, and (y) the
highest applicable marginal aggregate corporate Income Tax rate (for U.S. federal, state, local and
foreign purposes) for the relevant taxable period (or portion thereof), as the case may be.
Notwithstanding the foregoing, Distribution Taxes shall not include income or gain attributable to
intercompany items or any excess loss accounts.

          “Estimated State Taxes” has the meaning set forth in Section 4.05 of this Agreement.

          “Excess Foreign Tax Credit” means, for any taxable year, an amount of Foreign

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Income Taxes in a basket that is in excess of the amount of credits allowable for such basket
under the limitation rules of Section 904(d) of the Code and the Treasury Regulations thereunder.

          “Excess Foreign Tax Credit Limitation” means, for any taxable year, an amount of credits
allowable in a basket under the limitation rules of Section 904(d) of the Code and the Treasury
Regulations thereunder that is in excess of Foreign Income Taxes in such basket.

          “Filing Party” has the meaning set forth in Section 9.01 of this Agreement.

          “Final Determination” means the final resolution of liability for any Tax for any taxable
period by or as a result of: (i) a final and non-appealable decision, judgment, decree or other
order by any court of competent jurisdiction; (ii) a final closing agreement or accepted offer in
compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of any
other jurisdiction, which resolves the entire Tax liability for the entire taxable period; (iii) a
duly executed IRS Form 870 or 870-AD (or any successor forms thereto), on the date such form is
effective, or by a comparable form under the laws of other jurisdictions; except that a Form 870 or
870-AD or comparable form that reserves (whether by its terms or by operation of law) the right of
the taxpayer to file a claim for Refund and/or the right of the Tax Authority to assert a further
deficiency shall not constitute a Final Determination with respect to the right so reserved; (iv)
any allowance of a Refund or Credit in respect of an overpayment of such Tax, but only after the
expiration of all periods during which such Refund may be recovered (including by way of offset) by
the jurisdiction imposing such Tax; (v) the execution of a closing agreement with respect to a
pre-filing agreement described in Rev. Proc. 2005-12 (or any successor revenue procedure), or (vi)
any other final disposition by reason of the expiration of the applicable statute of limitations or
by mutual agreement of the Parties hereto.

          “Foreign Attribute” means any item of income, gain, loss or deduction or any asset or
liability relevant to the computation of taxable income from sources without the United States and
any item of Credit described in Section 901 of the Code (without regard to the limitation of
Section 904 of the Code).

          “Foreign Income Taxes” means the amount of any income, war profits, and excess profits taxes
paid or accrued (or deemed to be paid or accrued) during the taxable year to any foreign country or
to any possession of the United States, for which a credit is allowed under Section 901 of the Code
(before application of the limitation rules of Section 904(d) of the Code).

          “Fraction” has the meaning set forth in Section 3.03(a) of this Agreement.

          “Group” means the Tim Hortons Group or the Wendy’s Group, as the context may require.

          “Income Tax Benefit” means with respect to an item the amount of the Tax savings realized by
the applicable Group, as determined by Wendy’s in good faith. Such amount shall be equal to (i)
the U.S. federal income Tax liability and the corresponding U.S. state and local income Tax
liability (net of any U.S. federal income Tax benefit) of the applicable Group for the taxable year
in question without giving effect to the item reduced by (ii) the actual U.S.

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federal income Tax liability and the corresponding U.S. state and local Tax liability (net of
any U.S. federal income Tax benefit) of the applicable Group for such year after giving full effect
to such item. A Group shall be considered to realize an Income Tax Benefit to the extent, and only
to the extent, that the amount of Taxes it is actually required to pay to the applicable Tax
Authority for a taxable period is decreased from the amount of Taxes it would have actually been
required to pay to such Tax Authority for such taxable period in the absence of such Income Tax
Benefit. Such Income Tax Benefit shall be considered to arise at the time that such Group’s
decreased payment for such taxable period is first due or otherwise actually realized as a change
in the amount of Tax or Refund, reductions or credit of Tax then due and payable.

          “Income Tax Detriment” means with respect to an item the amount of additional Tax incurred by
the applicable Group, as determined by Wendy’s in good faith. Such amount shall be equal to (i)
the actual U.S. federal income Tax and the corresponding U.S. state and local Income Tax liability
(net of any U.S. federal income Tax benefit) of the applicable Group for the taxable year in
question, after giving full effect to the item reduced by (ii) the U.S. federal income Tax and the
corresponding U.S. state and local Tax liability (net of any U.S. federal income Tax benefit) of
the applicable Group without giving effect to such item. A Group shall be considered to realize an
Income Tax Detriment, to the extent, and only to the extent, that the amount of Taxes it is
actually required to pay to the applicable Tax Authority for a taxable period is increased from the
amount of Taxes it would have actually been required to pay to such Tax Authority for such taxable
period in the absence of such Income Tax Detriment. Such Income Tax Detriment shall be considered
to arise at the time that such Group’s increased payment for such taxable period is first due or
otherwise actually realized as a change in the amount of Tax or Refund, reductions or credit of Tax
then due and payable.

          “Income Tax or Income Taxes” means any Taxes imposed on or determined by reference to gross or
net income or profits or any other measure of income or profits. For the avoidance of doubt,
Income Taxes shall include Taxes with multiple bases (including corporate franchise, doing business
or occupation Taxes) if one or more of the bases upon which such Tax may be based, by which it may
be measured, or with respect to which it may be calculated is income or profits (including any
capital gains, gross receipts, value added or minimum Tax).

          “Independent Entity” has the meaning set forth in Section 13.01 of this Agreement.

          “IPO” has the meaning set forth in the third WHEREAS clause of this Agreement.

          “IRS” means the U.S. Internal Revenue Service.

          “Legal Entity” means a corporation, partnership, limited liability company or other entity
under state or other applicable organizational law.

          “Losses” shall mean all losses of any kind or nature, including costs, damages, liabilities
and expenses (including expenses of investigation and attorneys’ fees and expenses incurred in
connection with any action, suit or proceeding).

          “NOLs” has the meaning set forth in Section 4.04 of this Agreement.

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          “Non-Income Taxes” means all Taxes other than Income Taxes.

          “Party” or “Parties” has the meaning set forth in the first paragraph of this Agreement.

          “Post-Affiliation Year” means (i) a taxable period that begins after the Distribution Date and
(ii) the portion beginning after the Distribution Date of any taxable period that includes (but
does not end on) the Distribution Date.

          “Post-Combined Year” means a taxable period that begins after the Distribution Date and (ii)
the portion beginning after the Distribution Date of any taxable period that includes (but does not
end on) the Distribution Date during which Tim Hortons and its subsidiaries do not join a Total
Combined Group in the filing of a Combined Return with a Wendy’s Combined Group.

          “Proportionate Basis” shall mean, with respect to an item or items attributable to a
particular member or members of the Tim Hortons Group, the determination of the portion of such
items based on the total value of such items over the total value of all items in the same category
for the entire Wendy’s Consolidated Return for the same Affiliation Year.

          “Refund” means any refund of Taxes, including any reductions of Taxes paid or payable by means
of credits, offsets or otherwise.

          “Reimbursable Wendy’s Group Benefits” means the amount by which Wendy’s was able to reduce its
U.S. federal income Tax liability in the Wendy’s Consolidated Return for an Affiliation Year by use
of Available Items which would reduce the Adjusted Separate Tim Hortons Group Federal Tax Liability
for such year, if zero, below zero (“Additional Available Items”). Use of Additional Available
Items shall otherwise be subject to the same limitations and other provisions applicable to the use
of Available Items, as determined by Wendy’s in good faith.

          “Separate Return” means any Tax Return that is not a Combined Return or the Wendy’s
Consolidated Return.

          "Shared Services Agreement” means the transition services agreement entered into between
Wendy’s and Tim Hortons in conjunction with the IPO.

          “Tax” or “Taxes” means all forms of taxation imposed by any Tax Authority, including any net
income, gross income, alternative minimum, sales, use, ad valorem, gross receipts, value added,
franchise, license, transfer, withholding, payroll, employment, excise, severance, stamp, property,
custom duty, taxes or governmental charges, together with any related interest, penalties or other
additional amounts imposed by any Tax Authority in respect of any of the foregoing and including
all liability for or in respect of any of the foregoing as a result of being a partner in an entity
treated as a partnership or other pass-through entity for Tax purposes.

8

 

          “Tax Authority” means any U.S. federal, state, local or foreign jurisdiction (including any
subdivision and any revenue agency of such a jurisdiction) imposing Taxes and the agency, if any,
charged with the collection of such Taxes for such authority.

          “Tax Certificate” means any letter or certificate that is referred to in, and forms a basis
for, the Tax Opinion.

          “Tax Item” means any item of income, gain, loss, deduction, credit, recapture of credit, or
other similar item, that may have the effect of increasing or decreasing any Tax paid or payable,
including any adjustment to tax basis, capitalized interest or any adjustment under Section 481 of
the Code.

          “Tax Opinion” means the opinion concerning certain U.S. federal income Tax issues related to
the Distribution to be delivered to Wendy’s pursuant to Section ___of the Master Separation
Agreement.

          “Tax Return” means any return, filing, questionnaire, information statement, or other document
required to be filed, including amended returns that may be filed for any period or portion thereof
with any Tax Authority in connection with any Tax (whether domestic or foreign and whether or not a
payment is required to be made with respect to such filing).

          “Tax Ruling” means the IRS private letter ruling received in response to the Tax Ruling
Request.

          “Tax Ruling Request” means the private letter ruling request that may be filed with the IRS by
Wendy’s with respect to the Distribution, together with all exhibits, appendices, and supplements
to that filing.

          “Tim Hortons” has the meaning set forth in the first paragraph of this Agreement.

          “Tim Hortons Affiliate” has the meaning set forth under “Affiliate.”

          “Tim Hortons AMT Liability” has the meaning set forth in Section 3.03(a) of this Agreement.

          “Tim Hortons Consolidated Return” has the meaning set forth under “Adjusted Separate Tim
Hortons Group Federal Tax Liability.”

          “Tim Hortons Combined Group” means an affiliated group of corporations (as constituted from
time to time), consisting of Tim Hortons and/or any other members of the Tim Hortons Group that
joins in filing a Combined Return with a Wendy’s Combined Group.

          “Tim Hortons Common Stock” has the meaning set forth in the third WHEREAS clause of this
Agreement.

          “Tim Hortons Distribution Tax Liability” has the meaning set forth in Section 6.01(a) of this
Agreement.

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          “Tim Hortons Group” means Tim Hortons and any Tim Hortons Affiliate.

          “Tim Hortons Group State Tax Liability” has the meaning set forth in Section 4.02 of this
Agreement.

          “Tim Hortons Separate AMT” has the meaning set forth in Section 3.03(a) of this Agreement.

          “Total Combined Group” means the affiliated group of corporations (as constituted from time to
time), that join in the filing of a Combined Return that includes a Wendy’s Combined Group and a
Tim Hortons Combined Group.

          “Treasury Regulations” mean the final and temporary (but not proposed) U.S. Treasury
regulations promulgated under the Code, as such regulations may be amended from time to time
(including corresponding provisions of succeeding regulations).

          “Wendy’s” has the meaning set forth in the first paragraph of this Agreement.

          “Wendy’s Affiliate” has the meaning set forth under “Affiliate.”

          “Wendy’s AMT Liability” has the meaning set forth in Section 3.03(a).

          “Wendy’s Affiliated Group” means the affiliated group, within the meaning of Section 1504(a)
of the Code, for which Wendy’s is the common parent.

          “Wendy’s Combined Group” means an affiliated group of corporations (as constituted from time
to time) owned directly or indirectly by Wendy’s that join in filing a Combined Return, excluding
members of a Tim Hortons Combined Group.

          “Wendy’s Consolidated Return” means any consolidated U.S. federal income Tax Return filed by
Wendy’s with respect to the Wendy’s Affiliated Group.

          “Wendy’s Group” means Wendy’s and any Wendy’s Affiliate.

          “Wendy’s Options” has the meaning set forth in Section 3.04(a).

ARTICLE II

PREPARATION AND FILING OF TAX RETURNS

          SECTION 2.01. Cooperation and Furnishing of Information. (a) Cooperation.
Wendy’s and Tim Hortons each agree to cooperate fully in connection with the preparation of any Tax
Return relating to any Affiliation Year or Combined Year and the resolution of any related Audits.
In this regard, except as provided in a written agreement signed by the Parties, including the
Shared Services Agreement, or as otherwise provided herein, the tax department of the Tim Hortons
Group shall, at the expense of Tim Hortons, and the tax department of the Wendy’s Group shall, at
the expense of Wendy’s, continue to perform the

10

 

same Tax-related functions with respect to such Tax Returns and Audits as they have performed to
date.

          (b) Tax Information. (i) On or prior to such dates as specified by Wendy’s, Tim
Hortons, at its expense, shall provide Wendy’s with all Tax information for the Tim Hortons Group
and all Tax information for all members of each Tim Hortons Combined Group, that Wendy’s shall
reasonably request (including schedule(s) showing the items of income, gain, loss, deduction and
Credit and Foreign Attributes with respect to each such taxable year required to be included in
applicable Tax Returns and completed work papers) in such form as Wendy’s shall reasonably request,
including any such information as Wendy’s may request to enable Wendy’s to file any Tax Return with
respect to any Affiliation Year or any Combined Year. Wendy’s will prescribe the information
required to be provided by the Tim Hortons Combined Group to support Wendy’s preparation and filing
of Combined Returns and payment of Estimated State Taxes together with a schedule of due dates for
providing of such information; (ii) Wendy’s at its expense, shall provide Tim Hortons with all Tax
information that Tim Hortons shall reasonably request (including schedule(s) showing the items of
income, gain, loss, deduction and Credit and Foreign Attributes with respect to each such taxable
year required to be included in any applicable Tax Return and completed work papers) for any
Affiliation Year or Combined Year; and (iii) without limiting the generality of the foregoing, each
Party shall use reasonable efforts to respond promptly to specific questions from the other party
concerning Tax matters with respect to which the represented Party could reasonably be expected to
have relevant information, and the information provided by each Party shall be consistent with any
similar information provided by such Party to the other Party for prior taxable years.

          (c) Disclosures. (i) Tim Hortons represents that it has provided, and agrees to
provide promptly, to Wendy’s complete and accurate information that is required or that Wendy’s
reasonably requests to satisfy all applicable U.S. federal, state and local, and non-U.S.,
disclosure and reporting requirements in respect of listed transactions, reportable transactions
and other transactions that may be viewed as Tax-motivated, including, U.S. state expense
disallowance information. Tim Hortons also represents that is has provided, and agrees to promptly
provide, to Wendy’s all documents and other information that is required or Wendy’s requests to
satisfy the transfer pricing and other documentation requirements set forth in Sections 482 and
6662 of the Code and the Treasury Regulations thereunder or otherwise (including analogous
provisions under U.S. state and local or non-U.S. law), including principal documents as defined in
Treasury Regulations Section 1.6662-6(d)(2)(iii)(B), and to address any transfer pricing audit
issue arising under Section 482 of the Code or otherwise, shall promptly provide to the principal
tax officer of Wendy’s under cover of the attorney-client privilege any documents and information
it may request, including background documents as defined in Treasury Regulations Section
1.6662-6(d)(2)(iii)(C); (ii) Wendy’s represents that it has provided, and agrees to provide
promptly, to Tim Hortons complete and accurate information, including all documents and other
information that is required or Tim Hortons reasonably requests to satisfy the transfer pricing and
other documentation requirements set forth in section 247 of the Income Tax Act (Canada) or
otherwise (including analogous provisions under other Canadian, provincial, local or non-Canadian
law) and to address any tax audit issue arising out of or relating to transfer pricing matters;
(iii) each party further represents that it has provided, and agrees to promptly provide, to the
other Party all internal and external tax opinions, memoranda relating to the transactions and
other matters addressed in this subsection (c). Tim Hortons

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further represents that it has provided, and agrees to promptly provide, to Wendy’s all
internal and external tax opinions, memoranda relating to the transactions and other matters
addressed in this subsection (c).

          SECTION 2.02. Preparation of Tax Returns. (a) Preparation. Wendy’s shall have
sole authority for the preparation and filing of the Wendy’s Consolidated Tax Return and of any
Combined Tax Return that includes the items of income, gain, loss, deduction and Credit of the Tim
Hortons Group or any Tim Hortons Combined Group for any Affiliation Years or Combined Years.
Wendy’s shall have the exclusive right with respect to any Tax Return described in this Section
2.02 to determine all relevant matters, including (1) the manner in which such Tax Return shall be
prepared and filed, including the elections, methods of accounting, positions, conventions and
principles of taxation to be used and the manner in which any Tax asset or Tax-related matter
regarding such Tax Return shall be reported, (2) whether any extensions may be requested, (3) the
elections that will be made by Wendy’s, any Wendy’s Affiliate, Tim Hortons, or any Tim Hortons
Affiliate on such Tax Return, (4) whether any amended Tax Return(s) shall be filed, (5) whether any
claim(s) for refund shall be made, (6) whether any refund shall be paid by way of refund or
credited against any liability for the related Tax, and (7) whether to retain outside firms to
prepare or review such Tax Returns. Any such decisions shall be made by Wendy’s in its sole
discretion and shall be final and binding upon the Parties hereto.

          (b) Elections. Tim Hortons and the appropriate members of the Tim Hortons Group or a
Tim Hortons Combined Group shall make or give their consent to such elections or other matters
relating to the Tim Hortons Group or a Tim Hortons Combined Group as Wendy’s determines are
necessary or advisable in connection with the filing of any such Tax Returns. In addition, no
member of the Tim Hortons Group may elect to be considered as not having been a member of the
Wendy’s Group for U.S. federal income Tax purposes for any Affiliation Year and no member of a Tim
Hortons Combined Group may elect to be considered as not having been a member of a Total Combined
Group for U.S. state or local Tax purposes for any Combined Year without the prior written consent
of Wendy’s.

          SECTION 2.03. Payment of Taxes to Tax Authorities. (a) U.S. Federal Income Taxes.
Wendy’s shall pay, or cause to be paid to the IRS all U.S. federal income Taxes with respect to
any Wendy’s Consolidated Return due and payable for all Affiliation Years.

          (b) Non-Federal Combined Group Taxes. Wendy’s shall pay, or cause to be paid, to the
appropriate Tax Authorities the U.S. state and local Income Tax liability with respect to any
Combined Return due and payable for all Combined Years.

          (c) Non-Federal Separate Taxes. Tim Hortons shall pay, or cause to be paid, to the
appropriate Tax Authorities, any and all U.S. federal, state and local and non-U.S. Taxes that are
required to be reported on any separate Tax Return that does not include Wendy’s or any Wendy’s
Affiliate. Wendy’s shall pay, or cause to be paid, to the appropriate Tax Authorities, any and all
U.S. federal, state and local and non-U.S. Taxes that are required to be reported on any separate
Tax Return that does not include Tim Hortons or any Tim Hortons Affiliate.

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          SECTION 2.04. Agent. With respect to any Affiliation Year or and Combined Year, Tim
Hortons hereby irrevocably designates, and agrees to cause each Tim Hortons Affiliate to so
designate, Wendy’s as its sole and exclusive agent and attorney-in-fact and agrees to take such
action and to cause the Tim Hortons Affiliates to take such action (including execution of powers
of attorney and other documents) as Wendy’s may reasonably request in connection with any matter
relating to Taxes, provided, that except as otherwise provided in Section 9.04, this Section 2.04
shall not apply to Taxes described in Section 5.01.

          SECTION 2.05. Treatment of Settlement of Intercompany Tax Allocation Amounts. For purposes
of this Agreement, amounts taken into account in calculating the net intercompany tax allocation
amounts as of October 2, 2005 that were considered to have been contributed by Wendy’s to Tim
Hortons shall be treated as a payment by Wendy’s to Tim Hortons, or a payment by Tim Hortons to
Wendy’s, as the case may be.

ARTICLE III

U.S. CONSOLIDATED FEDERAL INCOME TAX LIABILITIES

          SECTION 3.01. U.S. Federal Income Taxes (other than AMT). (a) Tim Hortons and Wendy’s
Tax Liabilities. Tim Hortons shall be liable for and pay to Wendy’s the Adjusted Separate Tim
Hortons Group Federal Tax Liability for all Affiliation Years ending on or after January 1, 2006.
Wendy’s shall pay Tim Hortons Reimbursable Wendy’s Group Benefits, if any, for all Affiliation
Years ending on or after January 1, 2006 if the Adjusted Separate Tim Hortons Group Federal Tax
Liability for such year is zero. Tim Hortons or Wendy’s, as the case may be, shall make payments
to the other with respect to Affiliation Years ending on or prior to January 2, 2005 only to the
extent provided in Article VIII of this Agreement. In the event that an Adjustment is made with
respect to any item affecting the calculation of the Reimbursable Wendy’s Group Benefit, such
Adjustment shall be taken into account pursuant to Article VIII of this Agreement.

          (b) Affiliation Year Tax Liability. On or after the day Wendy’s files the Wendy’s
Consolidated Return for any Affiliation Year, Wendy’s shall determine the amount of the Adjusted
Separate Tim Hortons Group Federal Tax Liability or any Reimbursable Wendy’s Group Benefits for
such year. Tim Hortons shall pay to Wendy’s or Wendy’s shall pay to Tim Hortons an amount equal to
the difference between (i) the Adjusted Separate Tim Hortons Group Federal Tax Liability for each
such taxable period and (ii) the sum of any payments previously made by Tim Hortons to Wendy’s with
respect to the Adjusted Separate Tim Hortons Group Federal Tax Liability for each such taxable
period, reduced (to and below zero) by the sum of any payments previously made or to be made by
Wendy’s to Tim Hortons in respect of any Reimbursable Wendy’s Group Benefits for such taxable
period. Payment by Tim Hortons is due within five (5) business days after billing by Wendy’s.
Payment by Wendy’s for Reimbursable Wendy’s Group Benefits is due within thirty (30) business days
of filing the Wendy’s Consolidated Return for the taxable period.

          (c) Estimated Payments. From and after the date of this Agreement, Tim Hortons shall
pay to Wendy’s no later than the day before each due date for the payment of quarterly estimated
U.S. federal income Taxes for any Affiliation Year and the payment due on March 15th

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of the following year, as determined in good faith by Wendy’s, the difference, if any, between
(A) the Adjusted Separate Tim Hortons Group Federal Tax Liability due with respect to such taxable
year, determined in good faith by Wendy’s, based on the method for making estimated payments
elected by Wendy’s pursuant to Section 6655 of the Code, and (B) the sum of any payments previously
made by Tim Hortons to Wendy’s with respect to the Adjusted Separate Tim Hortons Group Federal Tax
Liability for such year.  

          SECTION 3.02. Taxable Year that Includes the Distribution Date. (a) Tim Hortons and
Wendy’s Tax Liabilities. Tim Hortons shall be liable for and shall pay to Wendy’s the Adjusted
Separate Tim Hortons Group Federal Tax Liability in the taxable year that includes the Distribution
Date (the “Distribution Taxable Year”), calculated by treating such year as ending on and including
the Distribution Date and by including include all liabilities arising from the triggering of
intercompany and other items as described in clause (d) of the definition above of “Adjusted
Separate Tim Hortons Group Federal Tax Liability”. Wendy’s shall pay Tim Hortons the Reimbursable
Wendy’s Group Benefits, if any, for the Distribution Taxable Year if the Adjusted Separate Tim
Hortons Group Federal Tax Liability for the Distribution Taxable Year is zero under the preceding
sentence. In the event that an Adjustment is made with respect to any item affecting the
calculation of the Reimbursable Wendy’s Group Benefit, such Adjustment shall be taken into account
pursuant to Article VIII of this Agreement.

          (b) Settling Tax Payable Accounts. On or before the Distribution Date, Tim Hortons
and Wendy’s shall cooperate to settle all Tax payable accounts for all Affiliation Years and all
Combined Years, in accordance with Wendy’s direction, based on the most accurate and complete
information then available. Nothing in this Section 3.02(b) shall limit the operation or effect of
any provisions of this Agreement, including Articles VIII and IX, that require redeterminations of
amounts hereunder.

          (c) Assignment of Taxable Items. Wendy’s shall determine in good faith the amounts of
income, gain, loss, deduction, and Credit of the Tim Hortons Group for the Distribution Taxable
Year that are properly includable in the Wendy’s Consolidated Return for such taxable year of the
Wendy’s Group. For all relevant purposes of this Agreement, the members of the Tim Hortons Group
and each Tim Hortons Combined Group shall cease to be members of the Wendy’s Group and their
respective Total Combined Groups, as of the end of the Distribution Date, and Tim Hortons shall
cause the books of account of the members of the Tim Hortons Group and the Tim Hortons Combined
Groups to be closed for accounting and Tax purposes as of the end of the Distribution Date in
accordance with Wendy’s reasonable direction. In determining consolidated taxable income for the
Distribution Taxable Year, the income and other items of the Tim Hortons Group shall be determined
by Wendy’s in good faith in accordance with Treasury Regulations Section 1.1502-76(b)(1),
-76(b)(2)(i) and -76(b)(2)(iv) and no election shall be made under 1.1502-76(b)(2)(ii)(D) to
ratably allocate items. However, an allocation shall be made in good faith by Wendy’s under
Treasury Regulations Section 1.1502-76(b)(2)(iii) if such allocation is determined by Wendy’s in
good faith to be necessary to appropriately allocate income in the event that the Distribution Date
occurs on any date other than the last or first day of any month. Pursuant to Treasury Regulations
Section 1.1502-76(b)(2)(vi), any item of a pass-through entity that is owned by a member of the Tim
Hortons Group shall be allocated as if such member sold its entire interest in the entity
immediately before the Distribution. In the event that a member or members of the Tim Hortons
Group

14

 

would be treated as owning an interest of less than 50% in the aggregate in such pass-through
entity, then pursuant to Treasury Regulations Section 1.706-1(c)(2)(ii), each such member’s share
of any distributive items shall be the amount determined by taking into account the pro rata part
of such items that such member would have included in taxable income had such member remained a
partner or owner of the pass-through entity until the end of the partnership taxable year based on
the portion of the partnership taxable year that has elapsed through the Distribution Date or upon
such other reasonable method that the Parties may agree. All of the foregoing determinations to be
made shall be made in good faith by Wendy’s. Tim Hortons and Tim Hortons Affiliates shall file
their respective Tax Returns for the taxable period beginning on the first day after the
Distribution Date consistently with such determinations.

          (d) Determining Foreign Attributes. Without limiting the foregoing, in the
Distribution Taxable Year and all prior taxable years, Wendy’s shall also determine the portion of
any Foreign Attribute that is allocable to the Tim Hortons Group provided, that such portion shall
not include any amount described in Section 951(a) of the Code (relating to inclusions in income of
controlled foreign corporation earnings) or any amount described in Section 1293(a) of the Code
(relating to inclusions in income of qualified electing fund earnings), or any indirect foreign Tax
Credit under Sections 960 and 1293(f) of the Code for foreign income Taxes deemed paid with respect
to either of these items, all as determined by Wendy’s in good faith; and provided, further, that,
without the prior written consent of Wendy’s, Tim Hortons and its subsidiaries shall not elect to
recapture an amount of taxable income from sources without the U.S. of any member of the Tim
Hortons Group greater than the minimum amount required by Section 904(f)(1) of the Code for any
Affiliation Year. Tim Hortons shall provide Wendy’s with all information it requests to make any
determination under this subsection (d). Wendy’s will likewise share all information with Tim
Hortons necessary for Tim Hortons to determine its share of the consolidated foreign Tax Credits
for the Distribution Taxable Year and all prior taxable years.

          SECTION 3.03. U.S. Federal Alternative Minimum Tax. (a) Tim Hortons Tax Liability.
Notwithstanding any other provision in this Agreement, if, for any Affiliation Year, the Wendy’s
Affiliated Group is liable for alternative minimum Tax for U.S. federal income Tax purposes (or any
similar U.S. federal Tax) (“AMT”) and the Tim Hortons Group would be liable for AMT if it filed a
Tax Return as a separate consolidated group (“Tim Hortons Separate AMT”), Tim Hortons shall pay to
Wendy’s an amount (the “Tim Hortons AMT Liability”) determined by Wendy’s equal to the product of
the AMT liability for the Wendy’s Affiliated Group (the “Wendy’s AMT Liability”), and a fraction
(the “Fraction”) (x) the numerator of which is the sum of the Tax preference items and adjustments
of the Tim Hortons Group relevant for purposes of the computation of AMT for such Affiliation Year
and (y) the denominator of which is the sum of the Tax preference items of all members of the
Wendy’s Affiliated Group for such Affiliation Year. The Tim Hortons AMT Liability for such
Affiliation Year shall not exceed the amount of the Tim Hortons Separate AMT for such Affiliation
Year.

          (b) Minimum Tax Credits. If for any Affiliation Year Tim Hortons has paid to Wendy’s
the Tim Hortons AMT Liability, Wendy’s shall pay to Tim Hortons its proportionate share (determined
below) of the minimum Tax credit for U.S. federal income Tax purposes arising from such Affiliation
Year that is actually utilized by the Wendy’s Affiliated Group in a subsequent Affiliation Year.
Tim Hortons’ proportionate share of such credit for any Affiliation

15

 

Year shall be equal to the product of such credit and the Fraction (defined in subsection (a)
above). In no event shall Tim Hortons be paid amounts in the aggregate in respect of such credit
in excess of the corresponding Tim Hortons AMT Liability nor shall any such credits be treated as
Available Items or Additional Available Items.

          SECTION 3.04. Exercise of Options. (a) Prior to the Distribution Date, the benefit of U.S.
federal, state, and local Tax deductions related to the exercise of any stock options exercisable
for stock of Wendy’s (“Wendy’s Options”) by any employee or former employee shall be allocated to
and shall be for the account of the Wendy’s Group. The Tax Returns of the Wendy’s Group and the
Tim Hortons Group shall be prepared accordingly. Upon the exercise of Wendy’s Options by an
employee or former employee of the Tim Hortons Group, Tim Hortons shall pay to Wendy’s the total
amount of U.S. federal, state and local Income Tax required to be withheld and remitted to any Tax
Authority in connection with such exercise, and, unless paid to Wendy’s by the holder of such
option, the total amount of the employee or former employee’s share of FICA, FUTA and other payroll
taxes attributable to such exercise and Wendy’s shall remit such amounts to the relevant Tax
Authority. Tim Hortons shall make such payments as soon as possible after said exercise, but in
no event more than ten (10) days after such exercise.

          (b) On or after the Distribution Date, the benefit of U.S. federal, state, and local Tax
deductions related to the exercise of (i) any Wendy’s Options by any employee or former employee of
the Tim Hortons Group shall be allocated to and shall be for the account of the Wendy’s Group. The
Tax Returns of the Wendy’s Group and the Tim Hortons Group shall be prepared accordingly. Upon the
exercise of any options described in this Section 3.04(b) by an employee or former employee of the
Tim Hortons Group, Tim Hortons shall pay to Wendy’s the total amount of U.S. federal, state and
local Income Tax required to be withheld and remitted to any Tax Authority in connection with such
exercise, and, unless paid to Wendy’s by the holder of such option, the total amount of the
employee or former employee’s share of FICA, FUTA and other payroll taxes attributable to such
exercise and Wendy’s shall remit such amounts to the relevant Tax Authority. Tim Hortons shall
make such payments as soon as possible after said exercise, but in no event more than ten (10) days
after such exercise. To the extent that any such deductions are disallowed because a Tax
Authority determines that the Tim Hortons Group should have claimed such deductions, the Tim
Hortons Group shall take all actions necessary to claim such deductions and shall pay to Wendy’s an
amount equal to the highest applicable domestic marginal aggregate corporate income Tax rate (for
U.S. federal, state and local purposes) for the relevant taxable period (or portion thereof), as
the case may be multiplied by the amount of such deductions.

          (c) On such periodic basis, as required from time to time, Wendy’s and Tim Hortons will
exchange such employee level information as required by Wendy’s to administer the personnel and tax
reporting requirements in respect of such options. Each of Wendy’s and Tim Hortons agrees to keep
such information confidential and to comply with applicable privacy requirements in respect of such
information.

          SECTION 3.05. Examples. The Parties have set forth the examples in Exhibit 3.05 attached
hereto to illustrate the application of this Article III and the application of certain other
Sections of this Agreement.

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ARTICLE IV

U.S. COMBINED STATE AND LOCAL INCOME TAXES AND NON-INCOME TAXES

          SECTION 4.01. Returns Covered. If any member of a Wendy’s Combined Group and any member of
a Tim Hortons Combined Group are required to file, or if Wendy’s elects that any member of a
Wendy’s Combined Group and any member of a Tim Hortons Combined Group shall file a Combined Return,
or where any U.S. state or local Tax Authority successfully asserts such a combined filing
requirement for any taxable years, the allocation and settlement of amounts due between the Parties
shall be governed by this Article IV and by the indemnity provisions of Article XI.

          SECTION 4.02. Pre-2006 Taxable Years. For each taxable year ending on or prior to January
1, 2006, Wendy’s shall determine in good faith each Tim Hortons Combined Group’s respective share,
as determined below, of the total U.S. state and local Tax liability in each such Combined State.
The Tim Hortons Combined Group’s share of such total tax liability (“Tim Hortons Group State Tax
Liability”) will be based on the aggregate apportionment percentage of all members of the Tim
Hortons Combined Group, determined with reference only to those companies that are subject to such
state’s taxing jurisdiction. The Tim Hortons Group State Tax Liability will include any minimum or
similar Taxes for members of each Tim Hortons Combined Group that may be required by the relevant
state or locality.

          SECTION 4.03. Post-2005 Taxable Years. For the taxable year beginning on or after January
2, 2006, Wendy’s shall determine in good faith the Tim Hortons Combined Group’s share of the total
U.S. state and local Tax liability in each Combined State in the same manner as set forth in
Section 4.02 above, taking into account the apportionment percentages and other relevant items of
each appropriate Tim Hortons Combined Group for such year, or if applicable, through the
Distribution Date. The Tim Hortons Group State Tax Liability will include any minimum or similar
Taxes for members of each Tim Hortons Combined Group that may be required by the relevant state or
locality. Tim Hortons shall be liable for, and shall pay to Wendy’s, the Tim Hortons Group State
Tax Liability for all Combined Returns for all taxable years beginning on or after January 2, 2006.

          SECTION 4.04. Net Operating Losses. The Tim Hortons Group State Tax Liability will not be
reduced by, nor will Tim Hortons or any other Tim Hortons Combined Group member receive any
payment, credit or benefit for, U.S. state or local net operating losses (“NOLs”), including any
carryback or carryover NOLs, that any such member generates for U.S. state or local income Tax
purposes on a stand-alone basis, whether or not they are used in a Combined Return (except insofar
as such NOLs may reduce the Tim Hortons Combined Group’s share of the total U.S. state and local
liability for a Total Combined Return).

          SECTION 4.05. Estimated Taxes. For all taxable years beginning on or after January 2,
2006, Wendy’s will determine in good faith the Tim Hortons Combined Group’s estimated Tax payments
and extension payments for each Combined State (collectively, “Estimated State Taxes”), together
with a schedule of due dates for paying its share of Estimated State Taxes. Tim Hortons will pay
the same to Wendy’s on or before the prescribed dates. Wendy’s will calculate in good faith the
aggregate Tim Hortons Group State Tax Liability for all Combined States for a Combined Year, less a
credit for aggregate Estimated State Taxes paid, or

17

 

determine the refund due to Tim Hortons to the extent aggregate Estimated State Taxes paid by Tim
Hortons exceed the aggregate Tim Hortons Group State Tax Liability. Payment by Tim Hortons is due
within five (5) business days after billing by Wendy’s. Payment of a refund by Wendy’s is due by
November 30 of the year in which Combined State Tax Returns are filed.

          SECTION 4.06. Adjustments. (a) If an Adjustment occurs with respect to a taxable year
beginning on or after January 2, 2006, Wendy’s shall in good faith recompute the Tim Hortons Group
State Tax Liability for the year in question, including all changes to apportionment percentages
that result from such Adjustment. Tim Hortons shall make payments to Wendy’s for an increase in
the Tim Hortons Group Tax Liability or Wendy’s shall make payments to Tim Hortons for a decrease in
the Tim Hortons Group Tax Liability, including its allocable share of interest, penalties and
additions to Tax and external costs. Payment in respect of such Adjustments by Tim Hortons is due
within five (5) business days after billing by Wendy’s for the items in question. Payment in
respect of such Adjustments by Wendy’s is due within thirty (30) business days after Wendy’s
receives a refund or credit for refund in respect of the items in question.

          (b) Wendy’s shall in good faith control all contests relating to any such Adjustments,
provided, however, in respect of any Combined State in which the Tim Hortons Combined Group would
bear at least 50% of the costs of any such Adjustments, Wendy’s shall consult with Tim Hortons in
good faith, subject to the ultimate authority of Wendy’s to determine how to proceed.

          SECTION 4.07. Non-Income Taxes. In the case of any Combined Return for an Affiliation Year
with respect to any Non-Income Tax, each Group included in the Combined Return shall be liable for
the Non-Income Tax attributable to the Tim Hortons Group, or the Wendy’s Group, as the case may be.
In the event that the portion of the Non-Income Tax attributable to a particular Group cannot be
determined for a Non-Income Tax Return that is a Combined Return, then Wendy’s, in its sole
discretion based on the most accurate and complete information then available, shall determine the
amounts of such Tax that shall be allocated to the Tim Hortons Group.

ARTICLE V

SEPARATE TAXES

          SECTION 5.01. Tim Hortons Tax Liability. Tim Hortons shall be liable for all U.S. federal,
state and local and non-U.S. Taxes that are required to be reported on any separate Tax Return that
does not include Wendy’s or any Wendy’s Affiliate.

          SECTION 5.02. Wendy’s Tax Liability. Wendy’s shall be liable for all U.S. federal, state
and local and non-U.S. Taxes that are required to be reported on any separate Tax Return that does
not include Tim Hortons or any Tim Hortons Affiliate.

          SECTION 5.03. Separate Return Adjustments. If there is an Adjustment to a separate Tax
Return of Wendy’s and/or any Wendy’s Affiliate, or of Tim Hortons and/or any Tim Hortons Affiliate,
as the case may be, that results in the inclusion in income in such Tax Return of income
attributable to the other Group, and the recipient thereby incurs an Income Tax

18

 

Detriment, Tim Hortons shall pay to Wendy’s, or Wendy’s shall pay to Tim Hortons, as the case may
be, an amount equal to such Income Tax Detriment (including any interest, penalties and additions
to Tax) within thirty (30) business days after the date of such Income Tax Detriment.

ARTICLE VI

INDEMNIFICATION FOR DISTRIBUTION TAXES

          SECTION 6.01. Distribution Taxes

          (a) Tim Hortons’ Liability for Certain Distribution Taxes. Tim Hortons and the Tim
Hortons Affiliates shall be liable for, and shall indemnify Wendy’s and each Wendy’s Affiliate
against, any Distribution Taxes that are primarily attributable to one or more of the following (i)
any inaccurate, written representation or warranty of fact or intent specifically made by, or
specifically attributed to, any member of the Tim Hortons Group in the Tax Ruling Request, the Tax
Ruling or a Tax Certificate; (ii) any breach by any member of the Tim Hortons Group of a covenant
in Section 6.02(a) of this Agreement, (iii) the failure by Tim Hortons or any member of the Tim
Hortons Group after the Distribution to continue to conduct, with its separate officers, directors,
and employees, the active trade or business relied upon by Tim Hortons for purposes of satisfying
the requirements of Section 355(b) of the Code in connection with the Distribution; (iv) the
acquisition by Tim Hortons, directly or through any Affiliate, of any of its outstanding stock
after the Distribution other than through stock purchases meeting the requirement of Section
4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to its modification by Revenue Procedure
2003-48); and (v) any acquisition of stock or other equity or assets of Tim Hortons or any Tim
Hortons Affiliate by one or more other Persons following the Distribution or any issuance of stock
by Tim Hortons or any Tim Hortons Affiliate, or change in ownership of stock in Tim Hortons or any
Tim Hortons Affiliate, that causes section 355(d) or section 355(e) of the Code to apply to the
Distribution.

          (b) Wendy’s Liability for Certain Distribution Taxes. Wendy’s and the Wendy’s
Affiliates shall be liable for, and shall indemnify Tim Hortons and each Tim Hortons Affiliate
against, any Distribution Taxes that are primarily attributable to one or more of the following
(i) any inaccurate, written representation or warranty of fact or intent specifically made by, or
specifically attributed to, any member of the Wendy’s Group in the Tax Ruling Request, the Tax
Ruling or a Tax Certificate; (ii) any breach by any member of the Tim Hortons Group of a covenant
in Section 6.02(b) of this Agreement; (iii) the failure by Wendy’s or any member of the Wendy’s
Group (excluding members of the Tim Hortons Group) after the Distribution to continue to conduct,
with its separate officers, directors, and employees, the active trade or business relied upon by
Wendy’s for purposes of satisfying the requirements of Section 355(b) of the Code in connection
with the Distribution; (iv) the acquisition by Wendy’s, directly or through any Affiliate, of any
of its outstanding stock after the Distribution other than through stock purchases meeting the
requirement of Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to its
modification by Revenue Procedure 2003-48); and (v) any acquisition of stock or other equity or
assets of Wendy’s or any Wendy’s Affiliate by one or more other Persons following the Distribution
or any issuance of stock by Wendy’s or any Wendy’s Affiliate, or change in ownership of stock in
Wendy’s or any Wendy’s Affiliate, that causes section 355(d) or section 355(e) of the Code to apply
to the Distribution.

19

 

          (c) Shared Liability for Remaining Distribution Taxes. If the liability for any
Distribution Taxes not allocated by Section 6.01(a) or (b), then Tim Hortons and the Tim Hortons
Affiliates shall be liable for, and shall indemnify Wendy’s and each Wendy’s Affiliate against
sixty percent (60%) of such remaining liability and Wendy’s and the Wendy’s Affiliates shall be
liable for, and shall indemnify Tim Hortons and each Tim Hortons Affiliate against forty percent
(40%) of such remaining liability.

          (d) Applicability. The provisions of this Section 6.01 shall apply notwithstanding
any other provisions of this Agreement.

          SECTION 6.02. Continuing Covenants.

          (a) By Tim Hortons. (i) Tim Hortons covenants that it will not, without Wendy’s
consent, take any action which would adversely affect the ability to cause the Distribution to
qualify as a distribution that is tax-free to Wendy’s and the stockholders of Wendy’s under Section
355 of the Code, and further covenants that it will cooperate with Wendy’s in effecting the
Distribution (including any internal restructuring in connection therewith). Without limitation of
the foregoing, Tim Hortons agrees that it will, if requested by Wendy’s, execute the Tax
Certificate attached hereto as Exhibit 6.02(a), and make such representations, warranties and
covenants on behalf of Tim Hortons and the Tim Hortons Affiliates, as are reasonably necessary to
(A) obtain Tax Opinion (or, in Wendy’s discretion, a Tax Ruling) that the Distribution will be
described in Section 355 of the Code, (B) liquidate or merge any entities as directed by Wendy’s in
order to meet the requirements of Section 355(b) of the Code, and (C) and take any other actions
reasonably requested by Wendy’s in connection with the Distribution.

     (i) Tim Hortons agrees that it shall not take or omit to take, and shall not permit any
of the Tim Hortons Affiliates to take or omit to take, any action that will, or would
reasonably be expected to, cause any written representation contained in the Tax Opinion, a
Tax Certificate or, if applicable, the Tax Ruling, to be incorrect.

     (ii) Tim Hortons agrees that it shall, and shall cause each Tim Hortons Affiliate to
prepare and file all Tax Returns on a basis consistent with the Tax Ruling and/or the Tax
Opinion, except as otherwise required by a Final Determination; provided that, to
the extent that the Tax Ruling and the Tax Opinion are inconsistent in any respect, such Tax
Returns shall be prepared and filed on a basis consistent with the Tax Ruling.

     (iii) During the two-year period following the Distribution Date, Tim Hortons will not
cease to be engaged in the active trade or business relied upon for purposes of satisfying
the requirements of Section 355(b) of the Code with respect to the Distribution.

     (iv) During the applicable period provided in Section 355(e)(2)(B) of the Code with
respect to the Distribution, Tim Hortons will not enter into any transaction or make or
permit any change in equity structure (including, stock issuances, pursuant to the exercise
of options, option grants or otherwise, capital contributions, or mergers or acquisitions,
but not including the Distribution) that could cause the Distribution to be treated as part
of a plan pursuant to which one or more Persons acquire directly or indirectly Tim

20

 

Hortons stock representing a “50-percent or greater interest” within the meaning of
Section 355(e) of the Code.

     (v) Notwithstanding Section 6.02(a)(i), Tim Hortons shall be permitted to take and
shall permit the Tim Hortons Affiliates to take actions inconsistent with the covenants
contained in such section if: (A) Tim Hortons obtains a ruling from the IRS in form and
substance acceptable to Wendy’s to the effect that such actions will not result in the
Distribution being a taxable transaction, in whole or in part, or (B) Tim Hortons obtains an
opinion in form and substance acceptable to Wendy’s of Independent Tax Counsel (as that term
is defined in the Master Separation Agreement) or other nationally recognized tax counsel
acceptable to Wendy’s to the effect that such actions will not result in the Distribution
being a taxable transaction, in whole or in part.

          (b) By Wendy’s. If the Wendy’s Board, in its sole discretion, determines to make the
Distribution:

     (i) Wendy’s covenants that it will execute the Tax Certificate attached hereto as
Exhibit 6.02(b), and make such representations, warranties and covenants on behalf of
Wendy’s and the Wendy’s Affiliates, as are reasonably necessary to (A) obtain Tax Opinion
(or, in Wendy’s discretion, a Tax Ruling) that the Distribution will be described in Section
355 of the Code.

     (ii) Wendy’s agrees that it shall not take or omit to take, and shall not permit any of
the Wendy’s Affiliates to take or omit to take, any action that will, or would reasonably be
expected to, cause any written representation contained in the Tax Opinion, a Tax
Certificate or, if applicable, the Tax Ruling, to be incorrect.

     (iii) Wendy’s agrees that it shall, and shall cause each Wendy’s Affiliate to prepare
and file all Tax Returns on a basis consistent with the Tax Ruling and/or the Tax Opinion,
except as otherwise required by a Final Determination; provided that, to the extent
that the Tax Ruling and the Tax Opinion are inconsistent in any respect, such Tax Returns
shall be prepared and filed on a basis consistent with the Tax Ruling.

     (iv) During the two-year period following the Distribution Date, Wendy’s will not cease
to be engaged in the active trade or business relied upon for purposes of satisfying the
requirements of Section 355(b) of the Code with respect to the Distribution.

ARTICLE VII

CARRYFORWARD AND CARRYBACK ITEMS

          SECTION 7.01. Carryovers to Post-Affiliation Years. Wendy’s will apportion, in good faith,
any U.S. federal consolidated net operating or capital losses, Credits or other applicable items
between members of the Tim Hortons Group (departing from the Wendy’s Group as a consequence of the
Distribution and related transactions) and members of the Wendy’s Group (not taking into account
Tim Hortons Group members) pursuant to applicable Treasury Regulations promulgated under Section
1502 of the Code. Such consolidated items and

21

 

their apportionment will be adjusted by Wendy’s to reflect any Adjustments that take place in
applicable Affiliation Years.

          SECTION 7.02. Carrybacks from Post-Affiliation Years. Notwithstanding any other provision
of this Agreement, Tim Hortons shall elect (under Section 172(b)(3) of the Code and, to the extent
feasible, any similar provision of any state, local or foreign Tax law) to relinquish any right to
carry back net operating losses to any Wendy’s Consolidated and Combined Income Tax Return.
Wendy’s shall be entitled to any refunds or credits for refund therefor.

ARTICLE VIII

U.S. FEDERAL INCOME TAX ADJUSTMENTS

          SECTION 8.01. Determination. If an Adjustment occurs with respect to U.S. federal income
Taxes for an Affiliation Year, the liability of Tim Hortons or Wendy’s, as the case may be,
pursuant to Article III hereof, or the amounts allocated pursuant to Article VII, shall be
recomputed by Wendy’s. As recomputed for purposes of Article III, Tim Hortons shall make payments
to Wendy’s for an increase in Tim Hortons’ liability or Wendy’s shall make payments to Tim Hortons
for an increase in Wendy’s liability. For the avoidance of doubt, if an Adjustment that relates to
Affiliation Year ending on or prior to January 1, 2006, Wendy’s shall recompute the Adjusted
Separate Tim Hortons Group Federal Tax Liability and/or the Reimbursable Wendy’s Group Benefits
taking into account such Adjustment as if it had made a calculation of such Adjusted Separate Tim
Hortons Group Federal Tax Liability and/or the Reimbursable Wendy’s Group Benefits for the relevant
Affiliation Year prior to such Adjustment.

          SECTION 8.02. Payments. Payments due from Tim Hortons to Wendy’s shall be made no later
than five (5) business day before the due date for payment by Wendy’s to a Tax Authority upon the
Final Determination of the items in question, or, to the extent no such payment is due, within
thirty (30) business days after the date of such Final Determination. Payments due from Wendy’s to
Tim Hortons shall be made within thirty (30) business days after Wendy’s receives a refund or a
credit for a refund with regard to the items in question after a Final Determination therefor.
Such payments shall include any applicable interest, penalties and additions to Tax and, if
applicable, any reasonable external costs for professional services incurred by Wendy’s thereon.
In calculating any interest payable by Tim Hortons to Wendy’s hereunder, interest, if any, due from
Wendy’s to the IRS shall first be deemed to arise with respect to the increase in the liability of
Tim Hortons, as determined above.

          SECTION 8.03. Timing Differences. Notwithstanding any other provision under this
Agreement, if as a result of an Audit any member of the Wendy’s Group suffers an Income Tax
Detriment, and, as a direct result of such Income Tax Detriment, any member of the Tim Hortons
Group obtains an Income Tax Benefit, and such Income Tax Detriment is not otherwise compensated
under this Agreement, then Tim Hortons shall make a payment to Wendy’s in an amount equal to Income
Tax Benefit that is realized within thirty (30) business days of the date of such realization.

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          SECTION 8.04. Intercompany Adjustments. If any transaction or arrangement between the
Wendy’s and/or Wendy’s Affiliates, on the one hand, and Tim Hortons and/or Tim Hortons Affiliates,
on the other hand, is recharacterized for applicable Tax purposes under Section 482 of the Code (or
any corresponding provision of state, local, or foreign Tax law) or otherwise and such
recharacterization results in an Income Tax Detriment to one applicable group of companies and an
Income Tax Benefit to the other group, the group incurring the Income Tax Detriment shall be paid
by the other group an amount equal to such Income Tax Detriment (including any interest, penalties
and additions to Tax) within thirty (30) business days after the date such Income Tax Detriment is
considered to arise. In addition, each Party hereto shall be liable for, and shall indemnify and
hold the other Party and its Affiliates harmless against, any Taxes attributable to intercompany
items or otherwise for any stock or other assets (tangible or intangible) transferred to it (or a
Wendy’s Affiliate, in the case of Wendy’s, or a Tim Hortons Affiliate, in the case of Tim Hortons)
from the other Party hereto (or a Wendy’s Affiliate, in the case of Wendy’s, or a Tim Hortons
Affiliate, in the case of Tim Hortons) for which it is determined not to have paid or provided fair
market value consideration.

ARTICLE IX

TAX PROCEEDINGS

          SECTION 9.01. Audits. Subject to Sections 9.04, the Party responsible for preparing and
filing a Tax Return pursuant to Articles II, III and IV (the “Filing Party”) shall have the
exclusive right to control, contest, and represent the interests of Wendy’s, any Wendy’s Affiliate,
Tim Hortons, and any Tim Hortons Affiliate, as applicable, in any Audit relating to such Tax Return
and, in its reasonable discretion, to resolve, settle or agree to any deficiency, claim or
adjustment proposed, asserted or assessed in connection with or as a result of any such Audit. The
Filing Party’s rights shall extend to any matter pertaining to the management and control of an
Audit, including execution of waivers, choice of forum, scheduling of conferences and the
resolution of any Tax related matter regarding such Tax Return. Wendy’s and Tim Hortons shall keep
each other promptly informed of any developments and discussions at any meetings concerning
adjustments, whether or not formally proposed, affecting the other Party.

          SECTION 9.02. Notice. Within fifteen (15) business days after a Party receives a written
notice or other information from a Tax Authority of the existence of a Tax issue that may require
the indemnifying Party to indemnify the receiving Party under this Agreement, such Party shall
notify the indemnifying Party of such issue, and thereafter shall promptly forward to the other
Party copies of notices and material communications with any Tax Authority relating to such issue.
The failure of one Party to notify the other Party of any matter relating to a particular Tax for a
taxable period or to take any action specified in this Agreement shall not relieve such other Party
of any liability and/or obligation which it may have under this Agreement with respect to such Tax
for such taxable period, except to the extent that such other Party’s rights under this Agreement
are materially prejudiced by such failure.

          SECTION 9.03. Remedies. Tim Hortons shall make no claim against Wendy’s and shall not
raise or assert any defense to Tim Hortons’ liabilities and/or obligations to Wendy’s under this
Agreement based upon the resolution by Wendy’s of any deficiency, claim or adjustment relating to
any Tax related matter pertaining to Wendy’s or any Wendy’s Affiliate.

23

 

          SECTION 9.04. Control of Distribution Tax Proceedings. Notwithstanding any other provision
of this Agreement to the contrary, Wendy’s shall have the exclusive right and sole discretion to
control, contest, and represent the interests of Wendy’s, any Wendy’s Affiliate, Tim Hortons, and
any Tim Hortons Affiliate in any Audits (including audits of Tim Hortons separate Tax Returns)
relating to Distribution Taxes and to resolve, settle or agree to any deficiency, claim or
adjustment proposed, asserted or assessed in connection with or as a result of any such Audit,
provided that to the extent that Wendy’s reasonably believes that Tim Hortons may potentially have
liability for such Distribution Taxes pursuant to this Agreement, Wendy’s shall permit Tim Hortons
to participate in the relevant Audit at Tim Hortons’s sole cost and expense, it being understood
that Wendy’s shall control such Audit. Wendy’s rights shall extend to any matter pertaining to the
management and control of such Audit, including execution of waivers, choice of forum, scheduling
of conferences and the resolution of any Tax related matter regarding such Tax Return.

ARTICLE X

POST-AFFILIATION YEARS AND POST-COMBINED YEARS

          SECTION 10.01. Further Obligations of Tim Hortons. (a) Except as otherwise required by a
Final Determination, Tim Hortons shall prepare, or cause all Tax Returns for any Post-Affiliation
Year or Post-Combined Year on a basis consistent with the elections, methods of accounting,
positions, conventions and principles of taxation and the manner in which any Tax Item or other
information is reported as reflected on the most recently filed Tax Returns in an Affiliation Year
or a Combined Year involving similar matters. The preceding sentence shall not apply if Tim
Hortons obtains Wendy’s prior written consent, (ii) there has been a controlling change in law or
circumstances, or (iii) the failure to be consistent will not result in an increased Tax liability
to, or reduction in a Tax Asset of, Wendy’s or any Wendy’s Affiliate with respect to a Affiliation
Year, not fully compensated by Tim Hortons. For purposes of this Section 10.01(a), a controlling
change in law or circumstances includes, with respect to Post-Distribution Periods (but not
Affiliation Years), permission to change a method of accounting granted by the relevant Tax
Authority.

          (b) Tim Hortons shall not and shall not permit any of the Tim Hortons Affiliates to (i) amend
any Tax Return or make or change any Tax election with respect to any Affiliation Year or any
Combined Year, or (ii) amend any Tax Return with respect to any Post-Affiliation Year or any
Post-Combined Year, in a manner that is inconsistent with Section 10.01(a).

          (c) Tim Hortons will not take any action on the Distribution Date other than in the ordinary
course of business, including the distribution of any dividend or the effectuation of any
redemption that could give rise to any Tax liability or reduce any Tax asset of Wendy’s or any
Wendy’s Affiliate or give rise to any loss to Wendy’s or any Wendy’s Affiliate under this
Agreement.

          SECTION 10.02. Actions or Transactions. Tim Hortons will not take any action, or enter
into any transaction, merger or restructuring with respect to a Post-Affiliation Year or
Post-Combined Year, that would result in any increased Tax liability or reduction of any Tax asset
of Wendy’s or any Wendy’s Affiliate in respect of any Affiliation Year or Combined

24

 

Year without Wendy’s prior written consent. Tim Hortons shall be obligated to inform and disclose
fully to Wendy’s any actions taken or transactions undertaken in a Post-Affiliation Year or a
Post-Combined Year that can reasonably be expected to affect in any material way the Tax liability
of the Wendy’s Group for any Affiliation Year or a Total Combined Group for any Combined Year.

          SECTION 10.03. Proposed Adjustments. Tim Hortons shall promptly notify Wendy’s and keep
Wendy’s apprised of any proposed adjustments which arise out of an audit or examination of a
Post-Affiliation Year or Post-Combined Year Tax Return which could reasonably be expected to affect
in any material way the Tax liability of for any Affiliation Year or Combined Years or which could
reasonably result in treatment of items that is inconsistent with the manner in which Wendy’s filed
its Tax Returns for such years.

ARTICLE XI

INDEMNIFICATION

          SECTION 11.01. By Wendy’s. Subject to Section 2.01(c) and Article, Wendy’s shall indemnify
Tim Hortons, each Tim Hortons Affiliate, and their respective directors, officers and employees,
and hold them harmless from and against, without duplication, (i) all Taxes and associated Losses
for which Wendy’s is liable under this Agreement, (ii) all U.S. federal income Tax liability in
excess of amounts that Tim Hortons or any Tim Hortons Affiliate is required to pay under this
Agreement; provided that Tim Hortons shall have fully satisfied its
obligations to Wendy’s under this Agreement, including under section 11.02(iii); and (iii) all
Income Taxes for each Combined State for taxable years ending on or before January 1, 2006;
provided that Tim Hortons shall have fully satisfied its obligations to Wendy’s
under this Agreement with respect to the Tim Hortons Group State Tax Liability for all Combined
States for all taxable years ending on or before January 1, 2006; and (iv) all Taxes and associated
Losses, without duplication, that are attributable to a breach of any covenant or obligation of
Wendy’s under this Agreement, other than under Section 6.02.

          SECTION 11.02. By Tim Hortons. Except as provided in clause (iii) of Section 11.01, Tim
Hortons shall indemnify Wendy’s, each Wendy’s Affiliate, and their respective directors, officers,
and employees, and hold them harmless from and against (i) all Taxes and associated Losses, without
duplication, for which Tim Hortons is liable under this Agreement, (ii) all Taxes and associated
Losses, without duplication, that are imposed on any Wendy’s Affiliate under Treasury Regulation
Section 1.1502-6 (or any corresponding provision of state, local, or foreign Tax law) as a result
of any Wendy’s Affiliate being a member of the Affiliated Group (or similar group under state,
local, or foreign Tax law) of which Tim Hortons or any Tim Hortons Affiliate is the common parent,
except to the extent that Wendy’s otherwise would be liable for such Taxes under this Agreement,
(iii) U.S. federal Income Taxes and associated Losses, without duplication, of the Tim Hortons
Group for all Affiliation Years, and (iv) all Taxes and associated Losses, without duplication,
that are attributable to a breach of any covenant or obligation of Tim Hortons under this
Agreement, other than under Section 6.02.

          SECTION 11.03. General. Except as otherwise provided herein, in determining a Party’s
liability and/or obligation to make, or the right to receive, any indemnity payment,

25

 

reimbursement or other payment in respect of any Tax under this Agreement, any taxable period or
portion of a taxable period that includes the Distribution Date shall be deemed to include and end
on the Distribution Date, and no Party shall have any liability and/or obligation to make, or right
to receive any indemnity payment, reimbursement or other payment in respect of any Tax under this
Agreement with respect to any Post-Affiliation Year.

          SECTION 11.04. Gain Recognition Agreement Taxes. Each member of the Tim Hortons Group
shall comply with the terms of any Section 367 gain recognition agreement executed by a member of
the Wendy’s Group during an Affiliation Year that relates in whole or substantial part to a member
of the Tim Hortons Group, including by including the gain, if any, required to be recognized
pursuant to the terms of any such agreement (or by virtue of the application of any provision of
Treasury Regulation Section 1.367(a)-8) and the payment of any Tax that is required to be paid
pursuant to Treasury Regulation Section 1.367(a)-8(b)(3). If a Tax Authority determines that any
member of the Wendy’s Group or the Tim Hortons Group has failed to comply with the terms of any
such agreement or any provision of Treasury Regulation Section 1.367(a)-8, the Tim Hortons Group
shall be liable for any resulting liability for Taxes and each member of the Tim Hortons Group
shall indemnify each member of the Wendy’s Group against any such Tax liability.

ARTICLE XII

BOOKS AND RECORDS; PAYMENTS

          SECTION 12.01. Retention Period. Tim Hortons will, and Tim Hortons will cause each of the
other Tim Hortons Group members to, adopt and comply with a record retention policy that is no less
stringent than Wendy’s record retention policy in effect as of the Distribution Date. Without
limiting the generality of the forgoing, each of the Parties agrees that it shall retain all Tax
Returns, related schedules and work papers, and all other material records and other documents as
required under Section 6001 of the Code and the Treasury Regulations promulgated thereunder
existing on the date hereof, or created through the Distribution Date until the later of: (i) the
expiration of the appropriate statutes of limitations (including any extensions) plus ninety (90)
days, (ii) a Final Determination of any payments which may be required in respect of such years
under this TSA or (iii) the period specified in the record retention policy referenced in the first
sentence of this Section 12.01. Each Party shall make available to the other Party copies of any
such documentation or information, as reasonably requested by the other Party. Without limiting
the foregoing, Tim Hortons shall cooperate with Wendy’s in identifying such books, records or
information that may be relevant to an Audit with respect to any Affiliation Year or Combined Year
and shall provide copies of any such books, records or information to Wendy’s within 180 days after
the Distribution Date. Any information obtained pursuant to this Agreement, or any other
information obtained by Wendy’s or Tim Hortons relating to a Tax position of either Party shall be
kept confidential by the Parties hereto, except if otherwise required by a Tax Authority. If Tim
Hortons fails to provide any information requested by Wendy’s pursuant to this Section 12.01,
Section 12.02 or pursuant to Section 2.01(b) of this Agreement within a reasonable period, then
Wendy’s shall have the right to engage a certified public accounting firm of its choice to gather
such information. Tim Hortons agrees upon two business days’ notice to permit any such certified
public accounting firm full access to all appropriate records and other information in the
possession of any member of the

26

 

Tim Hortons Group during reasonable business hours, and promptly to reimburse or pay directly all
costs and expenses in connection with the engagement of such certified public accountants.

          SECTION 12.02. Tax Attributes. Tim Hortons shall maintain for the period specified in
Section 12.01 and provide to Wendy’s upon request information that will enable Wendy’s to
determine, clarify or verify the adjusted book and Tax bases of the Tim Hortons stock held by
Wendy’s, Tim Hortons’s assets, both tangible and intangible, including the stock of all directly
and indirectly owned subsidiaries of Tim Hortons which were members of the Tim Hortons Group or a
Tim Hortons Combined Group at any time during Affiliation Years or Combined Years, and the adjusted
book and Tax bases of all assets, both tangible and intangible, of such subsidiaries. In addition,
Tim Hortons shall maintain and provide to Wendy’s upon request all relevant information for the
determination of earnings and profits of any members of the Tim Hortons Group, in accordance with
applicable provisions of the Code and the Treasury Regulations thereunder.

          SECTION 12.03. Payments Under This Agreement. Except as explicitly provided herein, any
payment required to be made pursuant to this Agreement by one Party to the other shall be made
according to this Section 12.03.

          (a) In General. All payments shall be made by wire transfer in immediately available
funds within the time prescribed for payment in this Agreement, or if no period is prescribed,
within twenty (20) days after delivery of written notice of payment owing together with a
computation of the amounts due.

          (b) Treatment of Payments. Unless otherwise required by any Final Determination,
payments made by one Party to another Party (other than payments of interest pursuant to Section
12.03(e) and payments of After Tax Amounts pursuant to Section 12.03(d)) pursuant to this Agreement
shall be treated for all Tax and financial accounting purposes as nontaxable payments (dividend
distributions or capital contributions, as the case may be) made immediately prior to the
Distribution and, accordingly, as not includible in the taxable income of the recipient.

          (c) Prompt Performance. All actions required to be taken by any Party under this
Agreement shall be performed within the time prescribed for performance in this Agreement, or if no
period is prescribed, such actions shall be performed promptly.

          (d) After Tax Amounts. If, pursuant to a Final Determination, it is determined that
the receipt or accrual of any payment made under this Agreement (other than payments of interest
pursuant to Section 12.03(e)), including any payment made pursuant to this Section 12.03(d), is
includible in income by the receiving Party, the Party making such payment shall pay to the
receiving Party an additional amount equal to (a) the After Tax Amount with respect to such payment
and (b) interest at the rate described in Section 12.03(e) on the amount of any Tax attributable to
such inclusion in income from the date such Tax accrues through the date of payment of such After
Tax Amount. A Party making a demand for a payment pursuant to this Agreement and for a payment of
an After Tax Amount with respect to such payment shall separately specify and compute such After
Tax Amount. However, a Party may choose not to specify an After Tax Amount in a demand for payment
pursuant to this Agreement without

27

 

thereby being deemed to have waived its right subsequently to demand an After Tax Amount with
respect to such payment. 

          (e) Interest. Any payment required to be made under this Agreement that is not made
on or before the date on which such payment is due shall bear interest computed at the rate
specified from time to time pursuant to Section 6621(a)(2) of the Code.

ARTICLE XIII

DISPUTE RESOLUTION

          SECTION 13.01. Dispute Resolution. In the event that Wendy’s or any member of the Wendy’s
Group, as the case may be, on the one hand, and Tim Hortons or any member of the Tim Hortons Group,
as the case may be, on the other hand, disagree as to the amount or calculation of any payment to
be made under this TSA, or the interpretation or application of any provision under this TSA, the
Chief Financial Officer of Wendy’s and the Chief Financial Officer of Tim Hortons shall attempt in
good faith to resolve such dispute. If such dispute is not resolved within sixty (60) business
days following the commencement of the dispute, Wendy’s and Tim Hortons shall jointly retain a tax
attorney who has retired from active practice in a nationally recognized law firm or independent
public accounting firm, which firm is independent of both Parties, or a retired Federal judge
experienced in matters involving Taxes (the “Independent Entity”), to resolve the dispute. If the
Parties are unable to agree on an Independent Entity, then each Party shall appoint a person who
would qualify as an Independent Entity (but for the approval of the other Party), and such persons
shall then appoint a person who meets the above description as the Independent Entity and who shall
serve as the Independent Entity. The Independent Entity shall act as an arbitrator to resolve all
points of disagreement and its decision shall be final and binding upon all Parties involved.
Unless the Parties agree to a later time in writing, the Independent Entity shall reach its
decision within sixty (60) days after the Independent Entity is appointed. Following the decision
of the Independent Entity, Wendy’s, and members of the Wendy’s Group, and Tim Hortons and members
of the Tim Hortons Group shall each take or cause to be taken any action necessary to implement the
decision of the Independent Entity. The fees and expenses relating to the Independent Entity shall
be borne equally by Wendy’s and Tim Hortons.

ARTICLE XIV

GENERAL PROVISIONS

          SECTION 14.01. Term. This Agreement shall apply as of the date specified in the first
paragraph of this TSA and shall remain in effect unless the Parties agree in writing to terminate
this Agreement. Notwithstanding any such termination, this Agreement shall continue in effect with
respect to any payment or indemnification due for all taxable periods prior to the termination
during which this Agreement was in effect.

          SECTION 14.02. Right of Set-off. Either Party may set-off any amount to which it is
entitled under this TSA against amounts otherwise payable hereunder by such Party. Neither the
exercise of nor the failure to exercise such right of set-off will constitute an election

28

 

of remedies or limit such Party in any manner in the enforcement of any other remedies that may be
available to it.

          SECTION 14.03. Notices. All notices, requests, claims, demands and other communications
under this Agreement shall be in writing and shall be deemed given upon receipt by the Parties at
the following addresses (or at such other address for a Party as shall be specified by like
notice):

if to Tim Hortons, to:

Corporate Secretary

Tim Hortons Inc.

4288 West Dublin-Granville Road

P.O. Box 256

Dublin, OH 43017-0256

Fax: (614) 764-3243

With a copy to (which shall not constitute notice):

General Counsel

874 Sinclair Road

Oakville, Ontario L6K 2Y1

Canada

Fax: [                    ]

if to Wendy’s

Corporate Secretary

Wendy’s International, Inc.

4288 West Dublin-Granville Road

P.O. Box 256

Dublin, OH 43017-0256

Fax: (614) 764-3243

With a copy to (which shall not constitute notice):

General Counsel

Wendy’s International, Inc.

4288 West Dublin-Granville Road

P.O. Box 256

Dublin, OH 43017-0256

Fax: (614) 764-3243

          SECTION 14.04. Interpretation. When a reference is made in this Agreement to a Section,
such reference shall be to a Section of this Agreement unless otherwise indicated. The headings
contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. References in this Agreement to any

29

 

gender include references to all genders, and references to the singular include references to the
plural and vice versa. Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation”. This Agreement
is intended to calculate, allocate and assign certain Tax responsibilities, liabilities and
benefits among the Parties to this Agreement, and any situation or circumstance concerning such
calculation, allocation and assignment that is not specifically contemplated hereby or provided for
herein shall be determined in a manner consistent with the underlying principles of calculation,
allocation and assignment in this Agreement.

          SECTION 14.05. Severability; No Presumption Against Drafter. If any term or other
provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law,
or public policy, all other conditions and provisions of this Agreement shall nevertheless remain
in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any Party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced,
the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible to the end that the transactions contemplated
hereby are fulfilled to the extent possible. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and
no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the
authorship of any of the provisions of this Agreement.

          SECTION 14.06. Counterparts. This Agreement may be executed in one or more counterparts,
all of which shall be considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the Parties and delivered to the other Party.

          SECTION 14.07. No Third-Party Beneficiaries. This Agreement is not intended to confer any
rights or remedies upon any person other than (i) the Parties hereto and their respective
successors and assigns and (ii) the Wendy’s Affiliates and the Tim Hortons Affiliates and their
respective successors and assigns.

          SECTION 14.08. Prior Tax Sharing Agreements. As of the date specified in the first
paragraph of this TSA, this Agreement supersedes and terminates all prior agreements as to the
allocation of tax liabilities between the any member of the Wendy’s Group, on the one hand, and any
member of the Tim Hortons Group on the other.

          SECTION 14.09. Entire Agreement; Amendments. This Agreement embodies the entire
understanding among the Parties relating to its subject matter. Any and all prior correspondence,
conversations, and memoranda are merged herein and shall be without effect hereon. No promises,
covenants, or representations of any kind, other than those expressly stated herein, have been made
to induce either Party to enter into this Agreement. Unless mutually agreed to by the Parties,
this Agreement shall not be amended, supplemented, modified, or terminated except by a writing duly
signed by each of the Parties hereto, and no waiver of any provisions of this Agreement shall be
effective unless in a writing duly signed by the Party sought to be bound.

30

 

          SECTION 14.10. Successors. This Agreement shall be binding upon and inure only to the
benefit of the Parties, the Wendy’s Affiliates and the Tim Hortons Affiliates (and their respective
successors and assigns, whether by merger, acquisition of assets or otherwise); provided that,
except as set forth in this Agreement, no Party may assign, delegate or otherwise transfer any of
its rights or obligations under this Agreement without the prior written consent of the other Party
hereto.

          SECTION 14.11. Confidentiality. Each Party to this Agreement shall hold, and cause
its officers, employees, agents, consultants, and advisors to hold, in strict confidence, unless
compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by
other requirements of law, all information that it or any of its officers, employees, agents,
consultants, and advisors may acquire pursuant to, or in the course of performing its obligations
under, any provision of this Agreement.

          SECTION 14.12. Performance. Wendy’s agrees and acknowledges that Wendy’s shall be
responsible for the performance, and guarantee the obligations, of each Wendy’s Affiliate under
this Agreement. Tim Hortons agrees and acknowledges that Tim Hortons shall be responsible for the
performance, and guarantee the obligations, of each Tim Hortons Affiliate under this Agreement.

          SECTION 14.13. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Ohio, regardless of the laws that might otherwise govern
under applicable principles of conflicts of laws thereof.

          IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	TIM HORTONS INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WENDY’S INTERNATIONAL, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 

31

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