Document:

Exhibit
10.2

FORM OF

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT
dated as of the nth day of n, 2004 by and between DavCo Restaurants
Inc., a Delaware corporation (the “Company”), and n (the “Executive”).

W  I  T  N  E  S  S
E  T  H:

WHEREAS, the Company
wishes to assure itself of the services of the Executive, and the Executive
wishes to serve in the employ of the Company, on the terms and conditions
hereinafter set forth.

NOW, THEREFORE, in
consideration of the premises and the mutual agreements hereinafter set forth,
the parties hereto hereby agree as follows:

1.             Employment, Term.

1.1           The
Company agrees to employ the Executive, and the Executive agrees to serve in
the employ of the Company, for the term set forth in Section 1.2, in the
positions and with the responsibilities, duties and authority set forth in Section
2 and on the other terms and conditions set forth in this Agreement.

1.2           The
term of the Executive’s employment under this Agreement (the “Initial Term”)
shall commence on n, 2004 (the “Commencement
Date”) and shall terminate two years after the date hereof, unless sooner
terminated in accordance with this Agreement; provided that the Initial Term
may be extended at the Company’s sole option for additional one year periods
(the “Extended Term;” and together with the Initial Term, the “Term”)
upon written notice at least 30 days prior to the expiration of the Initial
Term or the first Extended Term. The failure of the Company to extend this
Agreement shall constitute “Other Termination by the Company” as contemplated
in Section 6.5.

1.3           As
of the date hereof, this Agreement replaces all previous agreements between the
Executive and the Company (and its predecessors and assignors) and the
Executive hereby expressly waives all rights he would otherwise have under the
Executive Severance Agreement dated n, 1995  between
the Executive and the Company (the “Prior Agreement”), including,
without limitation, the right to any severance benefits (other than the
standard termination benefits provided by the Company for employees at the
director level and above, which shall survive the expiration of this Agreement)
or benefits on a change of control of the Company under the Prior Agreement.

2.             Positions,
Duties.

2.1           The
Executive shall serve in the position of n.  The Executive shall perform faithfully and
diligently such duties and shall have such responsibilities, appropriate to

 

 

said positions, as shall be assigned to him from time to time by the
Board of Directors of the Company.  The
Executive shall report to the Board of Directors of the Company.  During the Term, the Executive also agrees
to serve, if appointed or elected, as applicable, as an officer and/or director
of any parent, subsidiary or affiliate of the Company.

2.2           The
Executive shall substantially devote his full business time, attention and
ability (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the performance of his duties and
responsibilities hereunder.  Subject to
the prior consent of the Board of Directors of the Company, the Executive shall
be permitted to sit on the boards of directors of other corporations not
involving any conflict of interest with the Company and, subject to prior
notification to the Board of Directors of the Company, the Executive shall be
permitted to engage in civic and charitable endeavors.  The Executive will further be entitled to
attend such conferences, outings, seminars and professional meetings as are
incidental or consistent with the conduct of his duties or position with the
Company.

3.             Compensation.

3.1           Salary.  In consideration of the performance by the
Executive of the services set forth in Section 2 and the Executive’s
observance of the other covenants set forth herein, the Company shall pay the
Executive, and the Executive shall accept: (i) during the first year of
the Initial Term, a base salary of $n per annum; and
(ii) during the second year of the Initial Term, the aforementioned base
salary as increased by the Consumer Price Index (“CPI”) and 5% over the
previous base salary (each base salary amount referred to as “Base Salary”),
payable in accordance with the standard payroll practices of the Company.
During each extension of this Agreement, the annual Base Salary shall be
increased by no less than the CPI plus 5% over the previous year’s base salary,
and shall become the new Base Salary unless otherwise agreed to by the
Executive and the Board of Directors.

3.2           Long
Term Incentive Plan.  During the
Term, in addition to the Base Salary provided for in Section 3.1, the
Executive shall be eligible to participate in the Long Term Incentive Plan and
Dividend Reinvestment Plan for executives of the Company in effect during the
Term as well as any other retirement or benefit plan adopted by the Board of
Directors for the senior executives of the Company.

4.             Expense
Reimbursement.  During the Term, the
Company shall reimburse the Executive for all reasonable and necessary out-of-pocket
expenses incurred by the Executive 
while employed by the Company in the performance of his duties hereunder
(including attendance at franchise industry, financing and other conferences
relevant to the duties of the Executive, upon the presentation of proper
accounts therefor and other supporting documentation in accordance with the
Company’s policies, as adopted from time to time by the compensation committee
of the Board of Directors.

5.             Benefits.

5.1           Benefit
Plans.  During the Term, the
Executive will be eligible to participate in such employee benefit plans and
programs offered by the Company from time to time to its employees of
comparable executive position (and, to the extent required by applicable

 

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law, the plans or this Agreement, approved by the compensation
committee of the Board of Directors), subject to the provisions of such plans
and programs as in effect from time to time.  

5.2           Vacation.  During the Term, the Executive shall be
eligible to receive such vacation as may be deemed reasonable given Executive’s
position and tenure with the Company with pay. 
Vacation shall be taken by the Executive at such time as may be
reasonably acceptable to the Company having regard to its operations.  The Executive shall not be entitled to
receive any payment in lieu of any vacation.

5.3           Life
Insurance.  During the Term, subject
to its continued availability on commercially reasonable terms, the Company
will provide the Executive with $500,000
term life insurance coverage.  Executive
agrees that, so long as required by the terms of that certain Credit Agreement
by and among SunTrust Bank, the Company, DavCo Operations Inc., the
subsidiaries of DavCo Operations Inc., as Guarantors and any additional lenders
listed in the agreement or any replacement facility (“Credit Facility”),
the primary beneficiary under such policy shall be the lenders under the Credit
Facility, and the secondary beneficiary shall be the Executive or such
beneficiary as he may designate.

5.4           Disability.  During the Term, subject to its continued
availability on commercially reasonable terms, the Company shall provide the
Executive with disability insurance providing the same disability benefits as
in effect for the other Executives employees. 
The Company’s obligations under Section 6.2 of this Agreement
shall be subject to appropriate reduction for amounts paid to the Executive
under its disability insurance during the Disability Salary Continuation Period
(as hereinafter defined).

5.5           Leased
Automobile or Automobile Allowance. 
During the Initial Term and any extension thereof, the Executive shall
be entitled to the use of an automobile or vehicle leased by the Company with a
capitalized value of $60,000, or an automobile allowance of equal annual value,
and such gas, maintenance and insurance coverage as is provided to all
executive employees of the Company.  The
limit on the capitalized value of the vehicle cost shall be increased to
reflect inflation by the amount of 5% per annum.  In the case of a leased vehicle, the Company agrees to assign its
right to purchase the vehicle at the end of the lease term to Executive in
exchange for a payment to the Company of $250.   

5.6           Medical
and Health Reimbursement.  During
the Initial Term and any period during which benefits are continued, the
Executive shall be entitled to reimbursement for any treatment, expense or cost
incurred as a result of a prescription, direction or treatment program
initiated by any physician or licensed health care provider on the part of the
Executive, his spouse or dependent child.

5.7           Tax
Return Preparation.  The Executive
shall be entitled to have his personal tax returns prepared by a tax accountant
of the Executive’s choosing and the Company shall pay the cost for this
service.  In exchange, the Executive
agrees to make available to the Company, during any audit or review of the
Company’s tax returns by Federal or State tax authorities, all relevant copies
of tax returns of the Executive.

 

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6.             Termination of Employment.

6.1           Death.  In the event of the death of the Executive
during the Term, the Company shall pay to the estate or other legal
representative of the Executive the salary provided for in Section 3.1
accrued to the date of the Executive’s death and not theretofore paid to the
Executive.  Rights and benefits of the
estate or other legal representative of the Executive under the benefit plans
and programs of the Company shall be determined in accordance with the
provisions of such plans and programs. 
Neither the estate or other legal representative of the Executive, nor
the Company shall have any further rights or obligations under this Agreement.

6.2           Disability.  If during the Term the Executive shall
become incapacitated by reason of physical or mental disability and shall be
unable to perform his normal duties hereunder for a cumulative period in excess
of six months in any period of 12 consecutive months (“Disability”), the
employment of the Executive hereunder may be terminated by the Company or the
Executive upon notice to the other.  In
the event of such termination, subject to Section 5.4 of this Agreement,
the Company shall continue to pay to the Executive the salary provided for in Section
3.1 for a period of two years commencing on the date of termination reduced
by payments, if any, the Executive receives under a long term disability policy
(the period of time during which the Company shall be required to continue to
pay such salary, the “Disability Salary Continuation Period”).  Rights and benefits of the Executive under
the Long-Term Incentive Plan, the Dividend Reinvestment Plan and the other
benefit plans and programs of the Company shall be determined in accordance
with the provisions of such plans and programs.  Neither the Executive nor the Company shall have any further
rights or obligations under this Agreement, except as provided in Sections 7,
8, 9 and 10 hereof which will survive termination of the
Agreement.

6.3           Termination by Executive.  At any time after the first anniversary of the date of this
Agreement the Executive may terminate his employment hereunder upon written
notice of termination to the Company. 
Prior to terminating his employment pursuant to the immediately
preceding sentence, the Executive will first provide the Company with written
notice and a 30 day period after the receipt of such notice.  In the event of such termination, the
Company shall continue to pay to the Executive the salary provided for in Section
3.1 for a period of two years.  Rights
and benefits of the Executive under the Long Term Incentive Plan and the
Dividend Reinvestment Plan shall be determined in accordance with the
provisions of such plans and programs. 
All other benefits for which the Executive was eligible at the time of
Termination will be continued for a period of one year from the date of
termination.  Neither the Executive nor
the Company shall have any further rights or obligations under this Agreement,
except as provided in Sections 7, 8, 9 and 10
hereof.

6.4           Termination by the Company.  The Company may terminate the Executive’s
employment at any time during the Term for whatever reason it deems appropriate
or without reason; provided, however, that in the event that such termination
is not pursuant to Section 6.1, 6.2 or 6.3, the Company
shall continue to pay to the Executive the salary provided for in Section
3.1 for two years (the period of time during which the Company shall be
required to continue to pay such salary, the “Salary Continuation Period”).  Rights and benefits of the Executive under
the Long Term Incentive Plan and the Dividend Reinvestment Plan shall be deemed
vested, fulfilled or exercisable upon such termination.  All other benefit plans and

 

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programs of the Company shall be continued
for the Executive’s benefit through either one year or the remainder of the
term, whichever occurs later.  Neither
the Executive nor the Company shall have any further rights or obligations
under this Agreement, except as provided in Sections 7, 8, 9
and 10 hereof.

6.5           Resignation.  Upon the termination of employment of the
Executive for any reason or no reason, the Executive shall be deemed hereby
automatically to have resigned (effective on the date of such termination) all
positions as an officer and/or director of the Company and of any of the
Company’s subsidiaries and other affiliates.

7.             Confidential Information.

7.1           The
Executive shall, during the Term and at all times thereafter, treat as
confidential and, except as required in the performance of his duties and
responsibilities under this Agreement, not disclose, use, publish or otherwise
make available to the public or to any individual, firm or corporation any
Confidential Material (as hereinafter defined).  The Executive agrees that all Confidential Material, together
with all notes and records of the Executive relating thereto, and all copies or
facsimiles thereof in the possession of the Executive, are the exclusive
property of the Company and its affiliates and the Executive agrees to return
such material to the Company promptly upon the termination of the Executive’s
employment with the Company.

7.2           For
the purposes hereof, the term “Confidential Material” shall mean all
information acquired by the Executive in the course of the Executive’s
employment with the Company in any way concerning the products, projects,
activities, business or affairs of the Company, its affiliates or Wendy’s or
the customers of the Company, its affiliates or Wendy’s, including, without
limitation, all information concerning trade secrets and the preparation of raw
material utilized in the production of, the products or projects of the
Company, its affiliates or Wendy’s and/or any improvements therein, all sales
and financial information concerning the Company, its affiliates or Wendy’s,
all customer and supplier lists, all information concerning projects in
research and development or marketing plans for any such products or projects,
and all information in any way concerning the products, projects, activities,
business or affairs of customers of the Company, its affiliates or Wendy’s
which is furnished to the Executive by the Company, its affiliates or Wendy’s
or any of their respective employees (current or former), agents or customers,
as such; provided, however, that the term “Confidential Material” shall
not include information which: (a) becomes generally available to the
public other than as a result of a disclosure by the Executive; (b) was
available to the Executive on a non-confidential basis prior to his
employment with the Company or; (c) becomes available to the Executive on
a non-confidential basis from a source other than the Company, its
affiliates or Wendy’s or any of their respective agents, franchisees,
creditors, suppliers, lessors, lessees or customers, provided that such source
is not bound by a confidentiality agreement with the Company, its affiliates or
Wendy’s or any of such agents or customers. 
The Company acknowledges that this Section 7.2 is not intended to apply to the skill,
expertise, know-how and experience of the Executive gained in the performance
of his employment or with respect to any skill, expertise, know-how and
experience the Executive obtained prior to or outside his employment or
directorship duties with the Company.

8.             Inventions.  Any and all inventions, innovations or
improvements

 

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(“Inventions”) made, developed or created by the Executive
(whether at the request or suggestion of the Company or otherwise, whether
alone or in conjunction with others, and whether during regular hours of work
or otherwise) during the period of his employment with the Company which may be
directly or indirectly useful in, or relate to, the business of the Company,
shall be promptly and fully disclosed by the Executive to the Board of
Directors of the Company and shall be the Company’s exclusive property as
against the Executive, and the Executive shall promptly deliver to an
appropriate representative of the Company as designated by the Board of
Directors all papers, drawings, models, data and other material relating to any
Inventions made, developed or created by him as aforesaid.  The Executive shall promptly, at the request
of the Company and without any payment therefor, execute any documents
necessary or advisable in the opinion of the Company’s counsel to assign direct
issuance of patents or copyrights to the Company with respect to such
Inventions as are to be the Company’s exclusive property as against the
Executive or to vest in the Company title to such Inventions as against the
Executive.  The expense of securing any
such patent or copyright shall be borne by the Company.

9.             Non-Competition.  The Executive acknowledges that the services
to be rendered by him to the Company are of a special and unique
character.  In consideration of his
employment hereunder, the Executive agrees, for the benefit of the Company,
that he will not, during the period of his employment with the Company and
thereafter for the Applicable Period (as hereinafter defined) commencing on the
date of termination of his employment with the Company: (a) engage, directly or
indirectly, whether as principal, agent, distributor, franchisee,
representative, consultant, contractor, employee, director, partner,
stockholder, limited partner or other investor (other than an investment of not
more than (i) 5% of the stock or equity of any corporation the capital stock of
which is publicly traded, or (ii) 20% of the ownership interest of any limited
partnership or other entity) or otherwise, or advise, render or provide
services to or lend to a guarantee the debts or obligations of any person or
business which carries on a business in any state of the United States which is
in competition with the quick service restaurant business or any material part
thereof then conducted by the Company, or its affiliates; (b) solicit or entice
or endeavor to solicit or entice away from the Company  any person who is (at the
applicable time) an officer, employee or consultant of the Company, either for
his own account or for any individual, firm or corporation, whether or not such
person would commit any breach of his contract of employment by reason of
leaving the service of the Company, and the Executive agrees not to employ,
directly or indirectly, any person who was an officer or employee of the
Company or who by reason of such position at any time is or may be likely to be
in possession of any Confidential Material; or (c) solicit or entice or
endeavor to solicit or entice away from the Company any customer or prospective
customer of the Company, either for his own account or for any individual, firm
or corporation.  As used herein, the
term “Applicable Period” shall mean: (a) in the case of termination of
employment pursuant to Sections 6.4 or 6.5 of the Agreement, one
year or the remainder of the Term, whichever occurs later; and (b) in the case
of any other termination of employment with the Company hereunder or otherwise,
one year.

If any of the provisions
of this Section 9 of any part thereof are hereafter adjudicated by a court
of competent jurisdiction to be invalid or unenforceable, then such court is
hereby requested to amend such provision by deleting or amending the portion
thus adjudicated to be invalid or unenforceable.  Any such deletion or amendment shall be deemed by the parties to
apply only with respect to the operation of such provision in the particular
jurisdiction in

 

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which such adjudication
is made, so as to render such provision enforceable as so amended in such
jurisdiction.  Such deletion or
amendment shall not apply with respect to the operation of this Agreement in
any other jurisdiction or geographic area and shall not affect the remainder of
the provision, which shall be given full effect, without regard to the invalid
portions.

10.           Equitable Relief, Etc.

10.1         In
the event of a breach or threatened breach by the Executive of any of the
provisions of Sections 7, 8 or 9 of this Agreement, the
Executive hereby consents and agrees that the Company shall be entitled to an
injunction or similar equitable relief from any court of competent jurisdiction
restraining the Executive from committing or continuing any such breach or
threatened breach or granting specific performance of any act required to be
performed by the Executive under any of such provisions, without the necessity
of showing any actual damage or that money damages would not afford an adequate
remedy and without the necessity of posting any bond or other security.  Nothing herein shall be construed as
prohibiting the Company from pursuing any other remedies at law or in equity
which it may have with respect to any such breach or threatened breach.

10.2         The
Company and the Executive understand and agree that in any lawsuit or other
proceeding between any of them with respect to Sections 7, 8 or 9
hereof, the prevailing party in such lawsuit or proceeding shall be entitled to
recover from the other party in such lawsuit or proceeding, and such other
party hereby agrees to pay such prevailing party, for all costs and expenses,
including reasonable attorneys’ fees, incurred by such prevailing party in the
defense, prosecution or investigation of the matters which are the subject of
such lawsuit or proceeding.

11.           Successors and Assigns.

11.1         Assignment
by the Company.  The Company shall
require any successors (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place.  As
used in this Section, the “Company” shall mean the Company as previously
defined herein and any successor to its business and/or assets as aforesaid
which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law and this Agreement shall be binding upon, and inure to the
benefit of, the Company, as so defined.

11.2         Assignment
by the Executive.  The Executive may
not assign this Agreement or any part thereof without the prior written consent
of a majority of the Board of Directors of the Company (other than the
Executive if he is a member of such Board at the time); provided, however, that
nothing herein shall preclude one or more beneficiaries of the Executive from
receiving any amount that may be payable following the occurrence of his legal
incompetency or his death and shall not preclude the legal representative of
his estate from receiving such amount or from assigning any right hereunder to
the person or persons entitled thereto under his will or, in the case of
intestacy, to the person or persons entitled thereto under the laws of
intestacy applicable to his estate.  The
term “beneficiaries”, as used in this

 

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Agreement, shall mean a beneficiary or beneficiaries so designated to
receive any such amount or, if no beneficiary has been so designated, the legal
representative of the Executive (in the event of his incompetency) or the
Executive’s estate.

12.           Governing
Law.  This Agreement is governed by
and will be construed in accordance with the laws of the State of Delaware and
the laws of the United States applicable therein.  The sole forum for any dispute arising from this Agreement or the
Executive’s employment with the Corporation shall be the Chancery Court of the
State of Delaware.  Each party hereby
waives any right to a trial by jury in any dispute between them.

13.           Entire
Agreement.  This Agreement contains
all the understandings and representations between the parties hereto
pertaining to the subject matter hereof. 
This Agreement supersedes all understandings and agreements, (including
the Executive Severance Agreement) whether oral or in writing, if any,
previously entered into by the Company with the Executive in any way relating
to the employment of the Executive by the Company, all of which agreements and
understandings are hereby terminated and all rights and entitlements thereunder
are hereby waived and released.

14.           Amendment,
Modification, Waiver.  No provision
of this Agreement may be amended or modified unless such amendment or
modification is agreed to in writing and signed by the Executive and by
representatives of the Company (other than the Executive) who have been duly
authorized by the Board of Directors of the Company to do so (other than the
Executive if he is a member of such Board of Directors of the Company at the
time).  Except as otherwise specifically
provided in this Agreement, no waiver by either party hereto of any breach by
the other party hereto of any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of a similar or
dissimilar provision or condition at the same or any prior or subsequent time,
nor shall the failure of or delay by either party hereto in exercising any
right, power or privilege hereunder operate as a waiver thereof to preclude any
other or further exercise thereof or the exercise of any other such right,
power or privilege.

15.           Notices.  Any notice to be given hereunder shall be in
writing and delivered personally or sent by certified mail, postage prepaid,
return receipt requested, addressed to the party concerned at the address
indicated below or at such other address as such party may subsequently
designate by like notice:

If to the Company:

c/o
DavCo Restaurants Inc.

1657
Crofton Boulevard

Crofton,
MD 21114

Facsimile:
410-793-0754

ATTENTION:
 David J. Norman, CFO and General
Counsel

 

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If to the Executive:

n

 

16.           Severability.  Should any provision of this Agreement be
held by a court of competent jurisdiction to be enforceable only if modified,
such holding shall not affect the validity of the remainder of this Agreement,
the balance of which shall continue to be binding upon the parties hereto with
any such modification to become a part hereof and treated as though originally
set forth in this Agreement.  The
parties further agree that any such court is expressly authorized to modify any
such unenforceable provision of this Agreement in lieu of severing such
unenforceable provision from this Agreement in its entirety, whether by
rewriting the offending provision, deleting any or all of the offending
provision, adding additional language to this Agreement, or by making such
other modifications as it deems warranted to carry out the intent and agreement
of the parties as embodied herein to the maximum extent permitted by law.  The parties expressly agree that this
Agreement as so modified by the court shall be binding upon and enforceable
against each of them.  In any event,
should one or more of the provisions of this Agreement be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, and if such
provision or provisions are not modified as provided above, this Agreement
shall be construed as if such invalid, illegal or unenforceable provisions had
never been set forth herein.

17.           Authority.  The Company represents and warrants to the
Executive that the execution and delivery of this Agreement by the Company and
the performance by the Company of its covenants and agreements hereunder have
been duly authorized by all necessary corporate action and that this Agreement
has been duly executed and delivered on behalf of the Company.

18.           No
Conflict.  The Executive represents
and warrants to the Company that the execution, delivery and performance by the
Executive of his covenants, agreements, duties and responsibilities hereunder
do not and will not conflict with or result in the breach of any agreement
(written or oral) or understanding (including without limitation, any
employment, consulting, confidentiality, noncompetition or similar agreement)
with any other person or entity.

19.           Withholding.  Anything to the contrary notwithstanding,
all payments required to be made by the Company hereunder to the Executive or
his beneficiaries, including the Executive’s estate, shall be subject to
withholding of such amounts relating to taxes as the Company may reasonably
determine, after consultation with its tax attorneys or tax accountants, it is
required to withhold pursuant to any applicable law or regulation.  In lieu of withholding such amounts, in
whole or in part, the Company may, in its sole discretion, accept other
provision for payment of taxes as permitted by law, provided it is satisfied in
its sole discretion that all requirements of law affecting its responsibilities
to withhold such taxes have been satisfied.

20.           Survivorship.  The respective rights and obligations of the
Executive and the Company hereunder shall survive any termination of the Term
or of this Agreement to the extent necessary to the intended preservation of
such rights and obligations.

21.           Titles.  Titles of the sections of this Agreement are
intended solely for

 

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convenience and no provision of this Agreement is to be construed by
reference to the title of any section.

22.           Counterparts.  This Agreement may be executed by facsimile
and in two or more counterpart copies, each of which shall be deemed to be an
original and all of which taken together shall be deemed one document.

*          *          *

 

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IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

	
   

  	
  DAVCO RESTAURANTS INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
				

 

 

 

11Exhibit
10.3

FORM OF

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT
dated as of the nth day of n, 2004 by and between DavCo Restaurants
Inc., a Delaware corporation (the “Company”), and n (the “Executive”).

W  I  T  N  E  S  S
E  T  H:

WHEREAS, the Company
wishes to assure itself of the services of the Executive, and the Executive
wishes to serve in the employ of the Company, on the terms and conditions
hereinafter set forth.

NOW, THEREFORE, in
consideration of the premises and the mutual agreements hereinafter set forth,
the parties hereto hereby agree as follows:

1.             Employment, Term.

1.1           The
Company agrees to employ the Executive, and the Executive agrees to serve in
the employ of the Company, for the term set forth in Section 1.2, in the
positions and with the responsibilities, duties and authority set forth in Section
2 and on the other terms and conditions set forth in this Agreement.

1.2           The
term of the Executive’s employment under this Agreement (the “Initial Term”)
shall commence on n, 2004 (the “Commencement
Date”) and shall terminate two years after the date hereof, unless sooner
terminated in accordance with this Agreement; provided that the Initial Term
may be extended at the Company’s sole option for additional one year periods
(the “Extended Term;” and together with the Initial Term, the “Term”)
upon written notice at least 30 days prior to the expiration of the Initial
Term or the first Extended Term. The failure of the Company to extend this
Agreement shall constitute “Other Termination by the Company” as contemplated
in Section 6.5.

1.3           As
of the date hereof, this Agreement replaces all previous agreements between the
Executive and the Company (and its predecessors and assignors) and the
Executive hereby expressly waives all rights he would otherwise have under the
Executive Severance Agreement dated n between the Executive and
the Company (the “Prior Agreement”), including, without limitation, the
right to any severance benefits (other than the standard termination benefits
provided by the Company for employees at the director level and above, which
shall survive the expiration of this Agreement) or benefits on a change of
control of the Company under the Prior Agreement.

2.             Positions,
Duties.

2.1           The
Executive shall serve in the position of n.  The Executive shall perform faithfully and
diligently such duties and shall have such responsibilities, appropriate to

 

 

said positions, as shall be assigned to him from time to time by the
Board of Directors of the Company.  The
Executive shall report to the Chief Executive Officer and the Board of
Directors of the Company.  During the
Term, the Executive also agrees to serve, if appointed or elected, as
applicable, as an officer and/or director of any parent, subsidiary or affiliate
of the Company.

2.2           The
Executive shall substantially devote his full business time, attention and
ability (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the performance of his duties and
responsibilities hereunder.  Subject to
the prior consent of the Board of Directors of the Company, the Executive shall
be permitted to sit on the boards of directors of other corporations not
involving any conflict of interest with the Company and, subject to prior
notification to the Board of Directors of the Company, the Executive shall be
permitted to engage in civic and charitable endeavors.  The Executive will further be entitled to
attend such conferences, outings, seminars and professional meetings as are incidental
or consistent with the conduct of his duties or position with the Company.

3.             Compensation.

3.1           Salary.  In consideration of the performance by the
Executive of the services set forth in Section 2 and the Executive’s
observance of the other covenants set forth herein, the Company shall pay the
Executive, and the Executive shall accept: (i) during the first year of
the Initial Term, a base salary of $n per annum; and
(ii) during the second year of the Initial Term, the aforementioned base
salary as increased by the Consumer Price Index (“CPI”) and 5% over the
previous base salary (each base salary amount referred to as “Base Salary”),
payable in accordance with the standard payroll practices of the Company.
During each extension of this Agreement, the annual Base Salary shall be
increased by no less than the CPI plus 5% over the previous year’s base salary,
and shall become the new Base Salary unless otherwise agreed to by the
Executive and the Board of Directors.

3.2           Long
Term Incentive Plan.  During the
Term, in addition to the Base Salary provided for in Section 3.1, the
Executive shall be eligible to participate in the Long Term Incentive Plan and
Dividend Reinvestment Plan for executives of the Company in effect during the
Term as well as any other retirement or benefit plan adopted by the Board of
Directors for the senior executives of the Company.

4.             Expense
Reimbursement.  During the Term, the
Company shall reimburse the Executive for all reasonable and necessary out-of-pocket
expenses incurred by the Executive 
while employed by the Company in the performance of his duties hereunder
(including attendance at franchise industry, financing and other conferences
relevant to the duties of the Executive, upon the presentation of proper
accounts therefor and other supporting documentation in accordance with the
Company’s policies, as adopted from time to time by the compensation committee
of the Board of Directors.

5.             Benefits.

5.1           Benefit
Plans.  During the Term, the
Executive will be eligible to participate in such employee benefit plans and
programs offered by the Company from time to time to its employees of
comparable executive position (and, to the extent required by applicable

 

2

 

law, the plans or this Agreement, approved by the compensation
committee of the Board of Directors), subject to the provisions of such plans
and programs as in effect from time to time.  

5.2           Vacation.  During the Term, the Executive shall be
eligible to receive 4 weeks vacation with pay per year.  Vacation shall be taken by the Executive at
such time as may be reasonably acceptable to the Company having regard to its
operations.  The Executive shall not be
entitled to receive any payment in lieu of any vacation.  The Executive may carry forward one week of
vacation per year.

5.3           Life
Insurance.  During the Term, subject
to its continued availability on commercially reasonable terms, the Company
will provide the Executive with $500,000
term life insurance coverage.  Executive
agrees that, so long as required by the terms of that certain Credit Agreement
by and among SunTrust Bank, the Company, DavCo Operations Inc., the
subsidiaries of DavCo Operations Inc., as Guarantors and any additional lenders
listed in the agreement or any replacement facility (“Credit Facility”),
the primary beneficiary under such policy shall be the lenders under the Credit
Facility, and the secondary beneficiary shall be the Executive or such
beneficiary as he may designate.

5.4           Disability.  During the Term, subject to its continued
availability on commercially reasonable terms, the Company shall provide the
Executive with disability insurance providing the same disability benefits as
in effect for the other Executives employees. 
The Company’s obligations under Section 6.2 of this Agreement
shall be subject to appropriate reduction for amounts paid to the Executive
under its disability insurance during the Disability Salary Continuation Period
(as hereinafter defined).

5.5           Leased
Automobile or Automobile Allowance. 
During the Initial Term and any extension thereof, the Executive shall
be entitled to the use of an automobile or vehicle leased by the Company with a
capitalized value of $40,000, or an automobile allowance of equal annual value,
and such gas, maintenance and insurance coverage as is provided to all
executive employees of the Company.  The
limit on the capitalized value of the vehicle cost shall be increased to
reflect inflation by the amount of 5% per annum.  In the case of a leased vehicle, the Company agrees to assign its
right to purchase the vehicle at the end of the lease term to Executive in
exchange for a payment to the Company of $250.   

5.6           Medical
and Health Reimbursement.  During
the Initial Term and any period during which benefits are continued, the
Executive shall be entitled to reimbursement for any treatment, expense or cost
incurred as a result of a prescription, direction or treatment program
initiated by any physician or licensed health care provider on the part of the
Executive, his spouse or dependent child up to $6,000 per annum in the aggregate.

5.7           Tax
Return Preparation.  The Executive
shall be entitled to have his personal tax returns prepared by a tax accountant
of the Executive’s choosing and the Company shall pay the cost for this
service.  In exchange, the Executive
agrees to make available to the Company, during any audit or review of the
Company’s tax returns by Federal or State tax authorities, all relevant copies
of tax returns of the Executive.  

 

3

 

6.             Termination of Employment.

6.1           Death.  In the event of the death of the Executive
during the Term, the Company shall pay to the estate or other legal
representative of the Executive the salary provided for in Section 3.1
accrued to the date of the Executive’s death and not theretofore paid to the
Executive.  Rights and benefits of the
estate or other legal representative of the Executive under the benefit plans
and programs of the Company shall be determined in accordance with the
provisions of such plans and programs. 
Neither the estate or other legal representative of the Executive, nor
the Company shall have any further rights or obligations under this Agreement.

6.2           Disability.  If during the Term the Executive shall
become incapacitated by reason of physical or mental disability and shall be
unable to perform his normal duties hereunder for a cumulative period in excess
of six months in any period of 12 consecutive months (“Disability”), the
employment of the Executive hereunder may be terminated by the Company or the
Executive upon notice to the other.  In
the event of such termination, subject to Section 5.4 of this Agreement,
the Company shall continue to pay to the Executive the salary provided for in Section
3.1 for the remainder of the Term reduced by payments, if any, the
Executive receives under a long term disability policy (the period of time
during which the Company shall be required to continue to pay such salary, the
“Disability Salary Continuation Period”).  Rights and benefits of the Executive under the Long-Term
Incentive Plan, the Dividend Reinvestment Plan and the other benefit plans and
programs of the Company shall be determined in accordance with the provisions
of such plans and programs.  Neither the
Executive nor the Company shall have any further rights or obligations under
this Agreement, except as provided in Sections 7, 8, 9 and
10 hereof which will survive termination of the Agreement.

6.3           Due
Cause.  The employment of the
Executive hereunder may be terminated by the Company at any time during the
Term for Due Cause (as hereinafter defined). 
In the event of such termination, the Company shall pay to the Executive
the salary provided for in Section 3.1 through the date of
Termination.  Rights and benefits of the
Executive under the Long-Term Incentive Plan, the Dividend Reinvestment Plan
and the other benefit plans and programs of the Company shall be determined in
accordance with the provisions of such plans and programs.  After the satisfaction of any claim of the
Company against the Executive incidental to such Due Cause, neither the
Executive nor the Company shall have any further rights or obligations under
this Agreement, except as provided in Sections 7, 8, 9 and
10 hereof.  For purposes of this
Agreement, “Due Cause” shall mean: (a) the Executive’s gross negligence
or willful misconduct in the discharge of his duties and responsibilities to
the Company, as determined by the Board of Directors of the Company (other than
the Executive if he is a member of such at the time); (b) the Executive’s
material and repeated failure to follow directions from the Board of Directors
of the Company; (c) any theft, fraud, dishonest, willful or purposeful act or
omission of the Executive taken or omitted involving the property, business or
affairs of the Company; (d) the Executive’s conviction or other
adjudication of (i) a felony, or (ii) any crime or offense involving moral
turpitude, fraud or misrepresentation; (e) the Executive’s willful or material
breach of the Agreement or Company policies (including, without limitation, his
duties and responsibilities hereunder) which continues after notice thereof
from the Company to the Executive; or (f) any other conduct that would
materially adversely affect the property, business or affairs of the Company
and its subsidiaries taken as a whole or any other act that would be considered
cause under the laws of the State of Delaware; provided,

 

4

 

however, that the Executive shall be given written notice by a majority
of the Board of Directors of the Company that it intends to terminate the
Executive’s employment for Due Cause under this Section, which written notice
shall specify the act or acts upon the basis of which the majority of the Board
of Directors of the Company intends so to terminate the Executive’s employment.

6.4           Good Reason. 
The Executive may terminate his employment hereunder for Good Reason (as
hereinafter defined) upon written notice of termination to the Company, which
notice shall specify Good Reason in reasonable detail.  Prior to terminating his employment pursuant
to the immediately preceding sentence, the Executive will first provide the
Company with written notice and a 30 day period after the receipt of such
notice to cure the event that the Executive alleges gives rise to termination
for Good Reason and upon such timely cure,
such Good Reason shall be deemed not to have occurred.  In the event of such termination, the
Company shall continue to pay to the Executive the salary provided for in Section
3.1 for either one year or the remainder of the Term, whichever occurs
later.  Rights and benefits of the
Executive under the Long Term Incentive Plan and the Dividend Reinvestment Plan
shall be determined in accordance with the provisions of such plans and
programs.  All other benefits for which
the Executive was eligible at the time of Termination will be continued for a
period of one year from the date of termination.  Neither the Executive nor the Company shall have any further rights
or obligations under this Agreement, except as provided in Sections 7, 8,
9 and 10 hereof.  For
purposes of this Agreement, “Good Reason” shall mean: (a) the Company’s
continued failure to observe or perform any material covenant, condition or
provision of this Agreement; (b) the Company’s demotion of the Executive to a
lesser position than as provided in Section 2 hereof;
(c) assignment to Executive of duties materially inconsistent with, or a
material reduction of, the Executive’s duties, responsibilities or authority,
in either case without the Executive’s prior consent, except in connection with
the termination of his employment for Due Cause or as a result of his death,
Disability or retirement; (d) reduction in the Executive’s Base Salary or a material
reduction of benefits, as a whole, without the Executive’s prior consent; (e)
unless agreed to by the Executive, relocation of the Executive’s principal
place of business more than 20
miles from its current location; or (f) a Change in Control (as defined
below).  A “Change in Control” means either of: (a) any transaction
or series of transactions with or into any other corporation or entity (other
than a corporation or entity affiliated therewith), that effects any transfer,
conveyance, sale, lease or exchange of all or substantially all of the assets
of the Company to any other person (other than the Control Block Principals)
pursuant to the Amended and Restated Agreement and Consent to Assignment dated
April 16, 2004 among the Company, Wendy’s International, Inc., the Control
Block Principals and the others named therein (the “Consent”) or a
person affiliated or associated with the Company); or (b) any acquisition or
series of acquisitions by any means whatsoever, by any person other than the
Control Block Principals, or by a group of persons acting jointly or in concert
other than with Control Block Principals, of that number of shares of voting
capital stock of the Company which is greater than 20% of the total issued and
outstanding shares of voting capital stock immediately thereafter.

6.5           Other Termination by the Company.  The Company may terminate the Executive’s
employment at any time during the Term for whatever reason it deems appropriate
or without reason; provided, however, that in the event that such termination
is not pursuant to Section 6.1, 6.2, 6.3 or 6.4,
the Company shall continue to pay to the Executive the salary provided for in Section
3.1 for either one year or the remainder of the Term, whichever occurs

 

5

 

later (the period of time during which the
Company shall be required to continue to pay such salary, the “Salary
Continuation Period”).  Rights and
benefits of the Executive under the Long Term Incentive Plan and the Dividend
Reinvestment Plan shall be deemed vested, fulfilled or exercisable upon such
termination.  All other benefit plans
and programs of the Company shall be continued for the Executive’s benefit
through either one year or the remainder of the term, whichever occurs later.  Neither the Executive nor the Company shall
have any further rights or obligations under this Agreement, except as provided
in Sections 7, 8, 9 and 10 hereof.

6.6           Resignation.  Upon the termination of employment of the
Executive for any reason or no reason, the Executive shall be deemed hereby
automatically to have resigned (effective on the date of such termination) all
positions as an officer and/or director of the Company and of any of the
Company’s subsidiaries and other affiliates.

7.             Confidential Information.

7.1           The
Executive shall, during the Term and at all times thereafter, treat as
confidential and, except as required in the performance of his duties and
responsibilities under this Agreement, not disclose, use, publish or otherwise
make available to the public or to any individual, firm or corporation any
Confidential Material (as hereinafter defined).  The Executive agrees that all Confidential Material, together
with all notes and records of the Executive relating thereto, and all copies or
facsimiles thereof in the possession of the Executive, are the exclusive
property of the Company and its affiliates and the Executive agrees to return
such material to the Company promptly upon the termination of the Executive’s
employment with the Company.

7.2           For
the purposes hereof, the term “Confidential Material” shall mean all
information acquired by the Executive in the course of the Executive’s
employment with the Company in any way concerning the products, projects,
activities, business or affairs of the Company, its affiliates or Wendy’s or
the customers of the Company, its affiliates or Wendy’s, including, without
limitation, all information concerning trade secrets and the preparation of raw
material utilized in the production of, the products or projects of the
Company, its affiliates or Wendy’s and/or any improvements therein, all sales
and financial information concerning the Company, its affiliates or Wendy’s,
all customer and supplier lists, all information concerning projects in research
and development or marketing plans for any such products or projects, and all
information in any way concerning the products, projects, activities, business
or affairs of customers of the Company, its affiliates or Wendy’s which is
furnished to the Executive by the Company, its affiliates or Wendy’s or any of
their respective employees (current or former), agents or customers, as such;
provided, however, that the term “Confidential Material” shall not
include information which: (a) becomes generally available to the public
other than as a result of a disclosure by the Executive; (b) was available
to the Executive on a non-confidential basis prior to his employment with
the Company or; (c) becomes available to the Executive on a non-confidential
basis from a source other than the Company, its affiliates or Wendy’s or any of
their respective agents, franchisees, creditors, suppliers, lessors, lessees or
customers, provided that such source is not bound by a confidentiality
agreement with the Company, its affiliates or Wendy’s or any of such agents or
customers.  The Company acknowledges
that this Section 7.2
is not intended to apply to the skill, expertise, know-how and experience of
the Executive gained in the performance of his employment or with respect to any
skill, expertise, know-how and experience the Executive obtained prior to or
outside his employment or directorship duties with

 

6

 

the Company.

8.             Inventions.  Any and all inventions, innovations or improvements
(“Inventions”) made, developed or created by the Executive (whether at
the request or suggestion of the Company or otherwise, whether alone or in
conjunction with others, and whether during regular hours of work or otherwise)
during the period of his employment with the Company which may be directly or
indirectly useful in, or relate to, the business of the Company, shall be
promptly and fully disclosed by the Executive to the Board of Directors of the
Company and shall be the Company’s exclusive property as against the Executive,
and the Executive shall promptly deliver to an appropriate representative of
the Company as designated by the Board of Directors all papers, drawings,
models, data and other material relating to any Inventions made, developed or
created by him as aforesaid.  The
Executive shall promptly, at the request of the Company and without any payment
therefor, execute any documents necessary or advisable in the opinion of the
Company’s counsel to assign direct issuance of patents or copyrights to the
Company with respect to such Inventions as are to be the Company’s exclusive
property as against the Executive or to vest in the Company title to such
Inventions as against the Executive. 
The expense of securing any such patent or copyright shall be borne by
the Company.

9.             Non-Competition.  The Executive acknowledges that the services
to be rendered by him to the Company are of a special and unique
character.  In consideration of his
employment hereunder, the Executive agrees, for the benefit of the Company,
that he will not, during the period of his employment with the Company and
thereafter for the Applicable Period (as hereinafter defined) commencing on the
date of termination of his employment with the Company: (a) engage, directly or
indirectly, whether as principal, agent, distributor, franchisee,
representative, consultant, contractor, employee, director, partner,
stockholder, limited partner or other investor (other than an investment of not
more than (i) 5% of the stock or equity of any corporation the capital stock of
which is publicly traded, or (ii) 20% of the ownership interest of any limited
partnership or other entity) or otherwise, or advise, render or provide
services to or lend to a guarantee the debts or obligations of any person or
business which carries on a business in any state of the United States which is
in competition with the quick service restaurant business or any material part
thereof then conducted by the Company, or its affiliates; (b) solicit or entice
or endeavor to solicit or entice away from the Company  any person who is (at the
applicable time) an officer, employee or consultant of the Company, either for
his own account or for any individual, firm or corporation, whether or not such
person would commit any breach of his contract of employment by reason of
leaving the service of the Company, and the Executive agrees not to employ,
directly or indirectly, any person who was an officer or employee of the
Company or who by reason of such position at any time is or may be likely to be
in possession of any Confidential Material; or (c) solicit or entice or
endeavor to solicit or entice away from the Company any customer or prospective
customer of the Company, either for his own account or for any individual, firm
or corporation.  As used herein, the
term “Applicable Period” shall mean: (a) in the case of termination of
employment pursuant to Sections 6.4 or 6.5 of the Agreement, one
year or the remainder of the Term, whichever occurs later; and (b) in the case
of any other termination of employment with the Company hereunder or otherwise,
one year.

If any of the provisions
of this Section 9 of any part thereof are hereafter adjudicated by a
court of competent jurisdiction to be invalid or unenforceable, then such court
is

 

7

 

hereby requested to amend
such provision by deleting or amending the portion thus adjudicated to be
invalid or unenforceable.  Any such
deletion or amendment shall be deemed by the parties to apply only with respect
to the operation of such provision in the particular jurisdiction in which such
adjudication is made, so as to render such provision enforceable as so amended
in such jurisdiction.  Such deletion or
amendment shall not apply with respect to the operation of this Agreement in
any other jurisdiction or geographic area and shall not affect the remainder of
the provision, which shall be given full effect, without regard to the invalid
portions.

10.           Equitable Relief, Etc.

10.1         In
the event of a breach or threatened breach by the Executive of any of the
provisions of Sections 7, 8 or 9 of this Agreement, the
Executive hereby consents and agrees that the Company shall be entitled to an
injunction or similar equitable relief from any court of competent jurisdiction
restraining the Executive from committing or continuing any such breach or
threatened breach or granting specific performance of any act required to be
performed by the Executive under any of such provisions, without the necessity
of showing any actual damage or that money damages would not afford an adequate
remedy and without the necessity of posting any bond or other security.  Nothing herein shall be construed as
prohibiting the Company from pursuing any other remedies at law or in equity
which it may have with respect to any such breach or threatened breach.

10.2         The
Company and the Executive understand and agree that in any lawsuit or other
proceeding between any of them with respect to Sections 7, 8 or 9
hereof, the prevailing party in such lawsuit or proceeding shall be entitled to
recover from the other party in such lawsuit or proceeding, and such other
party hereby agrees to pay such prevailing party, for all costs and expenses,
including reasonable attorneys’ fees, incurred by such prevailing party in the
defense, prosecution or investigation of the matters which are the subject of
such lawsuit or proceeding.

11.           Successors and Assigns.

11.1         Assignment
by the Company.  The Company shall
require any successors (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place.  As
used in this Section, the “Company” shall mean the Company as previously
defined herein and any successor to its business and/or assets as aforesaid
which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law and this Agreement shall be binding upon, and inure to the
benefit of, the Company, as so defined.

11.2         Assignment
by the Executive.  The Executive may
not assign this Agreement or any part thereof without the prior written consent
of a majority of the Board of Directors of the Company (other than the
Executive if he is a member of such Board at the time); provided, however, that
nothing herein shall preclude one or more beneficiaries of the Executive from
receiving any amount that may be payable following the occurrence of his legal
incompetency or his death and shall not preclude the legal representative of
his estate from

 

8

 

receiving such amount or from assigning any right hereunder to the
person or persons entitled thereto under his will or, in the case of intestacy,
to the person or persons entitled thereto under the laws of intestacy
applicable to his estate.  The term
“beneficiaries”, as used in this Agreement, shall mean a beneficiary or
beneficiaries so designated to receive any such amount or, if no beneficiary
has been so designated, the legal representative of the Executive (in the event
of his incompetency) or the Executive’s estate.

12.           Governing
Law.  This Agreement is governed by
and will be construed in accordance with the laws of the State of Delaware and
the laws of the United States applicable therein.  The sole forum for any dispute arising from this Agreement or the
Executive’s employment with the Corporation shall be the Chancery Court of the
State of Delaware.  Each party hereby
waives any right to a trial by jury in any dispute between them.

13.           Entire
Agreement.  This Agreement contains
all the understandings and representations between the parties hereto
pertaining to the subject matter hereof. 
This Agreement supersedes all understandings and agreements, (including
the Executive Severance Agreement) whether oral or in writing, if any,
previously entered into by the Company with the Executive in any way relating
to the employment of the Executive by the Company, all of which agreements and
understandings are hereby terminated and all rights and entitlements thereunder
are hereby waived and released.

14.           Amendment,
Modification, Waiver.  No provision
of this Agreement may be amended or modified unless such amendment or
modification is agreed to in writing and signed by the Executive and by
representatives of the Company (other than the Executive) who have been duly
authorized by the Board of Directors of the Company to do so (other than the
Executive if he is a member of such Board of Directors of the Company at the
time).  Except as otherwise specifically
provided in this Agreement, no waiver by either party hereto of any breach by
the other party hereto of any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of a similar or
dissimilar provision or condition at the same or any prior or subsequent time,
nor shall the failure of or delay by either party hereto in exercising any
right, power or privilege hereunder operate as a waiver thereof to preclude any
other or further exercise thereof or the exercise of any other such right,
power or privilege.

15.           Notices.  Any notice to be given hereunder shall be in
writing and delivered personally or sent by certified mail, postage prepaid,
return receipt requested, addressed to the party concerned at the address
indicated below or at such other address as such party may subsequently
designate by like notice:

If to the Company:

c/o
DavCo Restaurants Inc.

1657
Crofton Boulevard

Crofton,
MD 21114

Facsimile:
410-793-0754

ATTENTION:
 David J. Norman, CFO and General
Counsel

 

9

 

If to the Executive:

n

 

16.           Severability.  Should any provision of this Agreement be
held by a court of competent jurisdiction to be enforceable only if modified,
such holding shall not affect the validity of the remainder of this Agreement,
the balance of which shall continue to be binding upon the parties hereto with
any such modification to become a part hereof and treated as though originally
set forth in this Agreement.  The
parties further agree that any such court is expressly authorized to modify any
such unenforceable provision of this Agreement in lieu of severing such
unenforceable provision from this Agreement in its entirety, whether by
rewriting the offending provision, deleting any or all of the offending
provision, adding additional language to this Agreement, or by making such
other modifications as it deems warranted to carry out the intent and agreement
of the parties as embodied herein to the maximum extent permitted by law.  The parties expressly agree that this
Agreement as so modified by the court shall be binding upon and enforceable
against each of them.  In any event,
should one or more of the provisions of this Agreement be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, and if such
provision or provisions are not modified as provided above, this Agreement
shall be construed as if such invalid, illegal or unenforceable provisions had
never been set forth herein.

17.           Authority.  The Company represents and warrants to the
Executive that the execution and delivery of this Agreement by the Company and
the performance by the Company of its covenants and agreements hereunder have
been duly authorized by all necessary corporate action and that this Agreement
has been duly executed and delivered on behalf of the Company.

18.           No
Conflict.  The Executive represents
and warrants to the Company that the execution, delivery and performance by the
Executive of his covenants, agreements, duties and responsibilities hereunder
do not and will not conflict with or result in the breach of any agreement
(written or oral) or understanding (including without limitation, any
employment, consulting, confidentiality, noncompetition or similar agreement)
with any other person or entity.

19.           Withholding.  Anything to the contrary notwithstanding,
all payments required to be made by the Company hereunder to the Executive or
his beneficiaries, including the Executive’s estate, shall be subject to
withholding of such amounts relating to taxes as the Company may reasonably
determine, after consultation with its tax attorneys or tax accountants, it is
required to withhold pursuant to any applicable law or regulation.  In lieu of withholding such amounts, in whole
or in part, the Company may, in its sole discretion, accept other provision for
payment of taxes as permitted by law, provided it is satisfied in its sole
discretion that all requirements of law affecting its responsibilities to
withhold such taxes have been satisfied.

20.           Survivorship.  The respective rights and obligations of the
Executive and the Company hereunder shall survive any termination of the Term
or of this Agreement to the extent necessary to the intended preservation of
such rights and obligations.

21.           Titles.  Titles of the sections of this Agreement are
intended solely for

 

10

 

convenience and no provision of this Agreement is to be construed by
reference to the title of any section.

22.           Counterparts.  This Agreement may be executed by facsimile
and in two or more counterpart copies, each of which shall be deemed to be an
original and all of which taken together shall be deemed one document.

*          *          *

 

11

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

	
   

  	
  DAVCO RESTAURANTS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
				

 

12

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