Document:

EX-10.7 INDEMNIFICATION AGREEMENT

 

Exhibit 10.7

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT, dated as of December ___, 2000, is made by and between AFC
Enterprises, Inc., a Minnesota corporation (the “Company”), and Peter Starrett, a director of the
Company (“Director”).

     WHEREAS, Director is a member of the Board of Directors of the Company; and

     WHEREAS, it will be difficult to retain directors of the Company unless such directors are
adequately indemnified against liabilities incurred and claims made in performance of their duties
as directors of the Company; and

     WHEREAS, it is in the best interests of the Company to retain such directors by providing
adequate indemnification by means of indemnification agreements with individual directors.

     NOW, THEREFORE, in consideration of Director’s continued service as a director of the Company,
and as an inducement to Director to continue to serve as a director of the Company, the Company an
Director agree as follows:

     1. Indemnification. The Company agrees to indemnify and hold Director harmless from
and against any claims, liabilities, damages, judgments, penalties, fines or expenses of any type
whatsoever incurred by Director n or arising out of the status, capacities or activities of
Director as a director of the Company to the maximum extend permitted under Minnesota Statutes,
Section 302A.521 (attached hereto as Exhibit A) as in effect on the date hereof.

     2. Advances of Expenses. Subject to Director’s execution of a written affirmation,
satisfactory to the company, of the Director’s good faith belief that the criteria for
indemnification have been satisfied and to repay all amounts advanced by the Company if it is
ultimately determined that the criteria for indemnification have not been satisfied, the Company
shall advance all expenses incurred by Director in connection wth the investigation, defense,
settlement or appeal of any proceeding, action or investigation to which Director is a party or is
threatened to be made a party arising out of the status, capacities or activities of Director as a
director of he Company t o the maximum extent permitted under Minnesota Statutes, Section 302.521,
subd. 3 as in effect on the date of this agreement upon the determination by the Company that the
facts then known to those making the determination would not preclude indemnification under Section
502A.521, subd. 6 within 60 days after receipt of said written affirmation. Director shall have a
reasonable right to appear in person and to be represented by counsel.

     3. Other Rights of Directors. The right of Director to indemnification or advance of
expenses pursuant to this Agreement shall not be exclusive of other rights Director may have (i)
under applicable law, (ii) pursuant to other agreements between the Company and Director or the
Company’s Articles of Incorporation or Bylaws, or (iii) pursuant to any agreement with a third
party (by way of insurance, indemnification or otherwise).

 

 

     4. Absolute Right to Indemnification and Advances of Expenses. The Company agrees
that it shall not, and the Company hereby waives all rights that it has or may have to, refuse to
indemnify or advance expenses, or withhold payment of amounts for which Director is indemnified
hereunder, or for advance of expenses to Director, based on any breach or alleged breach of any of
the provisions of this Agreement by Director or for any other reason whatsoever. In the event
Director is required to bring any action to enforce Director’s rights or to collect monies due to
Director under this Agreement, and is successful in such action , the Company shall reimburse
Director for all of Director’s legal fees and expenses in bringing and pursuing such action.

     5. Amendments to Minnesota Statutes or Company’s Articles of Incorporation or Bylaws.
The Company represents that its Bylaws provide for indemnification of Director to the maximum
extent permitted by Minnesota Statutes, Section 302A.521 as in effect on the date hereof and to the
maximum extent required by this Agreement. The Company shall not amend its Articles of
Incorporation or Bylaws to reduce or eliminate the Director’s right to indemnification or advances
provided for under this Agreement. Any amendments to the Articles of Incorporation or Bylaws of
the Company made subsequent to the date of this Agreement which reduce or eliminate rights of
persons entitled to indemnification or advances under such Articles of Incorporation or Bylaws
shall not limit the rights of Director pursuant to this Agreement. If the Minnesota Statutes, the
Articles of Incorporation or the Bylaws of the Company are amended so as to provide for greater
indemnification rights or benefits, and Director shall be entitled to such greater rights or
benefits, and Director shall be entitled to such greater rights ad benefits immediately upon such
amendment. Subsequent amendments to the Minnesota Statutes or other applicable law shall in no way
reduce Director’s rights under this Agreement.

     6. Maintenance of Insurance. The Company represents that it presently has in force
and effect directors and officers insurance under a Directors’ and Officers’ Liability Insurance
Policies including Company Reimbursement issued by Executive Re. Indemnity, Inc. (Policy No.
751-004259-95) and Zurich Insurance Company (Policy No. EOC 793938202) covering certain liabilities
which may be incurred by its officers and directors. The Company may maintain in effect for the
benefit of Director, directors’ and officers’ insurance providing such coverage as may, from time
to time, be determined by the Board of the Company, n their absolute discretion.

     7. Notification. Promptly after receipt by Director of the Company of any notice or
document respecting the commencement of any action, suit, proceeding or investigation naming or
involving Director and relating to any matter concerning which Director may be entitled to
indemnification or advances pursuant to this Agreement, the party receiving notice will notify the
other of the receipt of same, but the failure by Director to so notify the Company shall not
relieve the Company from any obligation under this Agreement or otherwise.

     8. Amendment. This Agreement may be amended at any time by written instrument
executed by the Company and Director.

     9. Notices. All notices and other communications between the parties with respect to
this Agreement must be made in writing and shall be deemed to have been fully delivered as

2

 

of the date on which they are hand delivered or deposited in the United States mail for
delivery by registered or certified mail, postage and fees prepaid.

     10. Binding Effect. Due to the personal nature of the services to be rendered by
Director, Director may not assign this Agreement. Subject to the foregoing, the provisions of this
Agreement are binding upon and inure to the benefit of (i) Director and Director’s respective
heirs, legal representatives and administrators, and (ii) the Company and its successors,
transferees and assigns.

     11. Survival. The obligations of the Company to Director as provided in this
Agreement shall survive and continue after Director has ceased to be a director of the Company.

     12. Validity. The invalidity or unenforceability of any provision of this Agreement s
hall not affect the validity or enforceability of any other provision of t his Agreement, which
shall remain in full force and effect.

     13. Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be discussed between the parties in a good faith effort to arrive at a mutual
settlement of any such controversy. If, notwithstanding the parties’ good faith efforts, a dispute
remains unresolved for a period of 45 days after initial notice from one party to the other of the
dispute, the parties shall submit such dispute to arbitration in accordance with the rules of the
American Arbitration Association, and judgment upon the award may be entered in any court having
jurisdiction over the controversy. The costs of the proceeding shall be paid by the Company.
Unless otherwise agreed upon, the place arbitration proceedings shall be Fulton County, Georgia.

     14. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Minnesota.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above
written.

	 	 	 	 	 
	 	AFC ENTERPRISES, INC.

 	 
	 	By:  	     /s/ Frank Belatti
 	 
	 	 	Frank Belatti, Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Peter Starrett
 	 
	 	Peter Starrett, Director 	 
	 	 	 
	 

3<PAGE>

                                                                   EXHIBIT 10.13

   [FORM OF WARRANT PURCHASE COMMITMENT AGREEMENT TO BE ENTERED INTO BY AND
        BETWEEN THE REGISTRANT AND EACH OF MESSRS. BALTER AND SLASKY.]

                  , 2005
-----------------

Wedbush Morgan Securities
1000 Wilshire Blvd., 10th Floor
Los Angeles, CA 90017

RE:      AD.VENTURE PARTNERS, INC.

Gentlemen:

         This letter is being delivered to you in connection with the
Registration Statement on Form S-1 (File No. 333-124141) (as may be amended and
supplemented from time to time, the "REGISTRATION STATEMENT") that was initially
filed by Ad.Venture Partners, Inc., a Delaware corporation (the "COMPANY"), with
the Securities and Exchange Commission (the "SEC") on April 18, 2005, which
relates to an underwritten initial public offering (the "IPO") of the Company's
units (the "UNITS"), each comprised of one share of the Company's common stock,
par value $0.0001 per share (the "COMMON STOCK"), and two warrants, each of
which are exercisable for one share of Common Stock (each, a "WARRANT").
Capitalized terms used but not otherwise defined herein shall have the meaning
set forth on Schedule 1 hereto.

         In order to induce the Company to engage in the IPO and to take all
steps necessary to effect the IPO, including the filing of amendments to the
Registration Statement with the SEC, and in recognition of the benefit that such
IPO will confer upon the undersigned as a stockholder of the Company, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the undersigned hereby agrees with the Company as follows:

         (1) At least six (6) business days prior to the effectiveness of the
Registration Statement, the undersigned shall duly execute and deliver an
irrevocable order to purchase Warrants to the representative of the underwriters
identified in the Registration Statement (the "ORDER"), in the form attached
hereto as Schedule 2, with such terms and conditions as are consistent with the
terms and conditions set forth in the Registration Statement at the time it goes
effective and the terms and conditions set forth herein.

         (2) The undersigned shall, within the forty-five (45) calendar day
period, commencing on the date separate trading of the Warrants commences (the
"SEPARATION DATE") pursuant to provisions set forth in the warrant agreement
governing the terms and conditions of such Warrants (the "WARRANT AGREEMENT"),
purchase for the undersigned's own account up to [ ] Warrants at market prices
not to exceed $0.70 per Warrant.

         (3) The undersigned shall not offer, pledge, sell, transfer or
otherwise dispose of, either directly or indirectly, any Warrants purchased
pursuant to this letter agreement or the Order until after the Business
Combination Date. Notwithstanding  the  foregoing,  the  undersigned  may pledge
such  Warrants as collateral to secure a bona fide loan from an  unaffiliated
third party for the purpose of  funding  the  undersigned's  obligation  to
purchase  the  Warrants pursuant to this letter agreement or the Order;
PROVIDED,  HOWEVER, that, prior to any such pledge,  such pledgee  executes an
agreement,  satisfactory  to the Representative,  pursuant to which such pledgee
agrees to receive and hold such Warrants  subject to the provisions of this
paragraph and pursuant to which such pledgee agrees not to re-pledge such
Warrants.

         This letter agreement shall be binding on the undersigned and his
respective successors and assigns.

         This letter agreement shall be governed by and interpreted and
construed in accordance with the laws of the State of New York applicable to
contracts formed and to be performed

<PAGE>

entirely within the State of New York, without regard to the conflicts of law
provisions thereof to the extent such principles or rules would require or
permit the application of the laws of another jurisdiction.

         No term or provision of this letter agreement may be amended, changed,
waived, altered or modified except by written instrument executed and delivered
by the party against whom such amendment, change, waiver, alteration or
modification is to be enforced.

                                                Very truly yours,

                                                --------------------------------
                                                [Name of Initial Stockholder]

Accepted and agreed as of the date hereof:

Ad.Venture Partners, Inc.

------------------------------------------

By:

Title:

                                       2.
<PAGE>

                                                                      SCHEDULE 1

                         SUPPLEMENTAL COMMON DEFINITIONS

         UNLESS THE CONTEXT SHALL OTHERWISE REQUIRE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING RESPECTIVE MEANINGS FOR ALL PURPOSES, AND THE FOLLOWING
DEFINITIONS ARE EQUALLY APPLICABLE TO BOTH THE SINGULAR AND THE PLURAL FORMS AND
THE FEMININE, MASCULINE AND NEUTER FORMS OF THE TERMS DEFINED.

         "BUSINESS COMBINATION" shall mean the acquisition by the Company,
whether by merger, capital stock exchange, asset acquisition or other similar
type of combination, of one or more operating businesses in the technology,
media or telecommunications industries, having, collectively, a fair market
value (as calculated in accordance with the Company's Amended and Restated
Certificate of Incorporation) of at least 80% of the Company's net assets at the
time of such merger, capital stock exchange, asset acquisition or other similar
type of combination.

         "BUSINESS COMBINATION DATE" shall mean the date upon which a Business
Combination is consummated.

         "EFFECTIVE DATE" shall mean the date upon which the Registration
Statement is declared effective under the Securities Act of 1933, as amended, by
the SEC.

<PAGE>

                                                                      SCHEDULE 2

                  , 2005
------------------

Wedbush Morgan Securities
1000 Wilshire Blvd., 10th Floor
Los Angeles, CA 90017

RE:      AD.VENTURE PARTNERS, INC.

Gentlemen:

         This letter will confirm the agreement of the undersigned to purchase
(the "PURCHASE COMMITMENT") warrants (the "WARRANTS") of Ad.Venture Partners,
Inc. (the "COMPANY") that are included in the units (the "Units") being sold in
the Company's initial public offering ("IPO") pursuant to the Company's
registration statement on Form S-1 (File No. 333-124141) (as may be amended and
supplemented from time to time, the "REGISTRATION STATEMENT"). The Purchase
Commitment shall be subject to the terms and conditions set forth herein.

         The undersigned agrees that this letter agreement constitutes an
irrevocable order (the "ORDER") for the representative of the Underwriters
identified in the Registration Statement (the "REPRESENTATIVE") to purchase for
the undersigned's account, within the forty-five (45) calendar days commencing
on the date separate trading of the Warrants commences (the "SEPARATION DATE")
pursuant to provisions set forth in the warrant agreement governing the terms
and conditions of such Warrants (the "WARRANT AGREEMENT"), up to [ ] Warrants
at market prices per Warrant not to exceed $0.70 per Warrant (the "MAXIMUM
WARRANT PURCHASE"). The Representative (or such other broker dealer(s) as the
Representative may assign the order to) agrees to fill such order in such
amounts and at such times as it may determine, in its sole discretion, during
the forty-five (45) calendar days commencing on the Separation Date.

         The Representative further agrees that it will not charge the
undersigned or any Designee (as defined below) any fees and/or commissions with
respect to such purchase obligation. The undersigned may notify the
Representative that all or part of the Order will be fulfilled by an affiliate
of the undersigned (or another person or entity identified to the Representative
by the undersigned (each a "DESIGNEE")) who (or which) has an account at the
Representative and, in such event, the Representative will make such purchase on
behalf of said affiliate or Designee; provided, however, that the undersigned
hereby agrees to make payment of the purchase price of such purchase in the
event that the affiliate or Designee fails to make such payment; PROVIDED,
FURTHER,  that  any  such  Designee  has  executed  an  agreement, satisfactory
to the  Representative,  pursuant to which such Designee agrees not to offer,
pledge,  sell,  transfer or otherwise  dispose of, either directly or
indirectly, any Warrants purchased pursuant to the Warrant purchase letter dated
as of _____  between the  Representative  and ________  (the  "Warrant  Purchase
Letter") or this Order until after the Business  Combination Date (as defined in
the Warrant Purchase Letter).

         This letter agreement shall be binding on the undersigned and his
respective heirs, successors and assigns.

         This letter agreement shall be governed by and interpreted and
construed in accordance with the laws of the State of New York applicable to
contracts formed and to be performed entirely within the State of New York,
without regard to the conflicts of law provisions thereof to

<PAGE>

the extent such principles or rules would require or permit the application of
the laws of another jurisdiction.

         No term or provision of this letter agreement may be amended, changed,
waived, altered or modified except by written instrument executed and delivered
by the party against whom such amendment, change, waiver, alteration or
modification is to be enforced.

                                              Very truly yours,

                                              ----------------------------------
                                              [Name of Initial Stockholder]

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