Document:

EXHIBIT-10.46

                            SHARE TRANSFER AGREEMENT

This Agreement was entered into on this 27th November 2000 in Warsaw by and
between:

1.   International Fast Food Corporation, an American company with its
     registered office in Miami Beach, 1000 Lincoln Road, Suite 200, Florida,
     33139, USA, represented by Tomasz Barylski on the basis of the power of
     attorney attached hereto as an Exhibit No 1, hereinafter referred to as the
     Seller,

and

2.   American Restaurants Sp. z o.o. with its seat in Wroclaw, at Maria Curie -
     Sklodowska 1, entered into commercial register of the District Court for
     Wroclaw under no. RHB 9262 represented by Parvek Misztal based on the power
     of attorney granted by Tomasz Suchowierski and Henry McGovern--members of
     the management board on the basis of the excerpt from the commercial
     register (power of attorney and excerpts from commercial register attached
     hereto as an Exhibit No 2), hereinafter referred to as the Purchaser,

and

3.   International Fast Food Polska Spolka z ograniczona odpowiedzialnoscia with
     its registered office in Warsaw ul. Jagiellonska 15 entered into the
     commercial register kept by the District Court for the city of Warsaw XVI
     Economic Registration Division under RHB No 32513, represented by Joanna
     Makowska - commercial attorney of Company, hereinafter referred to as the
     Company.

                                     ss. 1
1.   The Seller warrants and declares that he owns one share ("the Share") of
     the nominal value of 90.106.980,43 PLN (ninety million one hundred and six
     thousand nine hundred and eighty zlotys and forty three groszy) in the
     share capital of International Fast Food Polska Spolka z ograniczona
     odpowiedzialnoscia with its registered office in Warsaw ul. Jagiellonska 15
     entered into the commercial register kept by the District Court for the
     city of Warsaw XVI Economic Registration Division under RHB No 32513,
     (,,the Company"). 2. The Seller represents that the Share is free and clear
     of any claims, charges, pledges and/or encumbrances. Further, the Seller
     represents that the Share constitutes 100% of the Company's share capital.

                                     ss. 2
1.   The Seller represents that no approval of the Company's Shareholders'
     Assembly is required for transfer of the Share.
2.   The Seller further represents that the Seller received all internal
     corporate approvals for transfer of shares.

<PAGE>

                                     ss. 3
1.   The Seller hereby sells and the Purchaser hereby buys the Share for
     2.000.000 USD (two million US dollars) ("the Price") subject to increase or
     decrease as described in ss. 7
2.   Purchase price will be paid as follows:
         a)    Within 2 (two) business days of execution of the Agreement of
               Release from Burger King Corporation ("BKC") in the form agreed
               by Purchaser, the Purchaser shall initiate the payment via swift
               wire transfer to the Seller's account of 1,000,000 USD (one
               million USD). If Purchaser fails to pay this amount on time,
               Purchaser shall pay to Seller 5.000 USD (five thousand US
               dollars) as contractual interests for each day of delay.
               For the purposes of this transaction, Agreement of Release shall
               mean any and all documents, agreements, statements or combination
               of such documents necessary to provide the Purchaser with the
               following:
                    --   A release by BKC of any First Rights of Refusal to
                         purchase shares or assets in the Company;
                    --   A release from any and all obligations arising from any
                         existing franchise or development agreements between
                         the Company and BKC;
                    --   A release from any and all obligations arising from the
                         BKC Development Agreement;
                    --   The Development Agreement and BKC Franchise Agreements
                         shall be terminated upon closing, with no further
                         obligations to the Purchaser except those mentioned
                         above.
               The Purchaser and Seller hereby agree to make best efforts to
               ensure that the Agreement of Release is issued and executed.
               Purchaser further agrees to initiate the payment to BKC via wire
               transfer of the sum of $ 333,500 (three hundred thirty three
               thousand five hundred USD) within 2 business days after execution
               of the Agreement of Release and after the execution of this
               Agreement, in final payment for all amounts of money due BKC by
               the Company and the Seller. If ownership title to the Share is
               not transferred to the Purchaser of the Share, then Seller agrees
               to pay back Purchaser for the amount of $ 333,500.

               b)   Within 7 business days after statement of non-objection to
                    the merger is issued by the President of the Office for
                    Competition and Consumer Protection and delivered to any of
                    the Parties, the Purchaser shall initiate swift wire
                    transfer to the Seller of 800.000 (eight hundred thousand US
                    dollars) USD. If Purchaser fails to pay this amount on time,
                    Purchaser shall pay to Seller 5.000 USD (five thousand US
                    dollars) as contractual interests for each day of delay. The
                    full $ 800,000 under this provision shall not be subject to
                    any offsets of any nature whatsoever. Same interest shall
                    apply to payment described in point c) below.

               c)   Starting from receipt of Agreement of Release Purchaser
                    shall conduct due diligence of the Company not to exceed 90
                    days. At the end of this 90 (ninety) days due diligence
                    period the Purchaser shall pay to the Seller 200.000 USD
                    less any discovered unrecorded liabilities incurred prior to
                    November 1,2000 and to the extent that Due Debts mentioned
                    in par 7 exceed given there amount and are paid by the
                    Purchaser.

                                       2
<PAGE>

                                     ss. 4
1.   The ownership right of the Share shall pass to the Purchaser as soon as
     (automatycznie) and not earlier than all the "conditions precedent"
     (warunki zawieszajace) mentioned below have been fulfilled:
     a)   The Parties shall receive the Agreement of Release as described in
          par.3.2a) above. Should the Agreement of Release not be issued within
          14 days from executing this transaction Seller shall have the right to
          terminate this agreement by notice in writing having immediate effect
          upon delivery to Purchaser. Should the Agreement of Release not be
          issued within 90 days from executing this transaction Purchaser shall
          have the right to terminate this agreement by notice in writing having
          immediate effect upon delivery to Seller. The Purchaser and Seller
          hereby agree to make best efforts to ensure that Agreement of Release
          is issued and executed.
     b)   Seller received first part of the purchase price as described in art
          3.2a.
     c)   Not later than 4 (four) months starting from the date of this
          Agreement, both Purchaser and the Company shall procure that a
          statement of non-objection to the merger is issued by the President of
          the Office for Competition and Consumer Protection. Should the
          Purchaser fail to notify the President of the Office for Competition
          and Consumer Protection of the projected merger within 21 days
          starting from the date of execution of this Agreement, the Purchaser
          shall pay to the Seller contractual penalty amounting to 5.000 (five
          thousand US dollars) USD for each day of delay beyond 21 days. Should
          the Company fail to notify the President of the Office for Competition
          and Consumer Protection of the projected merger within 21 days
          starting from the date of execution of this Agreement, the Company
          shall pay to the Purchaser contractual penalty amounting to the
          equivalent in PLN of 5.000 (five thousand US dollars) USD for each day
          of delay beyond 21 days. The parties hereby agree to cooperate in good
          faith during the procedure of getting the permit from the President of
          the Office for Competition and Consumer Protection.
     d)   Seller received second part of the purchase price as described in par.
          3.2.b
          2.   Should the statement of non-objection mentioned in section 1 c)
               above be not issued within four months starting from the date of
               this Agreement, the Parties hereto shall negotiate in good faith
               another way of transferring the Share or the Company to the
               Purchaser or a third party indicated by the latter, such transfer
               not to require the said statement of non-objection, provided
               however that such negotiations cannot lead to infringement of
               Polish regulations on protection of competitions or to avoidance
               of the law. Seller and the Company hereby agree that they will
               not sell, encumber, pledge or dispose in any other way of the
               Share or material asset of the Company, within the period of
               negotiations, not to exceed 6 (six) months, without the prior
               written consent of the Purchaser which consent shall not be
               unreasonably withheld.
          3.   Seller will not be obliged to return to the Purchaser any amounts
               received hereunder unless the Seller sells the Share to another
               Party or if the transfer of ownership of the Share does not occur
               due to reasons for which Seller is responsible.
          4.   If conditions precedent listed in section 1 above are not jointly
               fulfilled within the period of 12 months and none of the parties
               terminates this Agreement, this Agreement will automatically
               expire.

                                       3
<PAGE>

          5.   The obligations of the Purchaser resulting from this Agreement
               shall be covered by the guarantee issued by Amrest Holdings N.V.
               to the extent described in said guarantee. The guarantee
               constitutes Exhibit 18.

                                     ss. 5
1.   The Seller represents that he has a claim towards the Company amounting to
     848.045USD ("IFFP Debt"). The parties hereto have entered into a contract,
     by virtue of which IFFP Debt is to be transferred to the Amrest Holdings
     N.V. subject to the transfer of the ownership of Share mentioned herein. In
     the aforementioned contract the Seller releases the Company from any
     financial claims towards the Seller other than IFFP Debt and Company
     releases Seller from any debts in particular debts resulting from any loans
     which have not been fully remitted to the Company. The aforementioned
     contract constitutes Exhibit 4 hereto. The Seller represents that there are
     no further claims against the Company, and if there are claims, they are
     hereby forgiven.

2.   The Seller declares that he has entered into a contract, by virtue of which
     a third party designated by Seller shall acquire from the Company the
     Company's claim against Pizza King Polska Spolka z ograniczona
     odpowiedzialnoscia with its registered office in Warsaw, Poland ("PKP")
     amounting to 1.980.635 PLN ("PKP Debt"), such acquisition to be subject to
     the transfer of the ownership of the Share. Such contract of acquisition
     constitutes Exhibit 5 hereto. The Purchaser declares that he will not
     question the validity and effectiveness of such acquisition.

                                     ss. 6
1.   The Seller informs that PKP uses some of the equipment, software and the
     office space of the Company as described in Exhibit no 6.

2.   The Purchaser does hereby commit himself to allow for the use of the
     aforementioned equipment, software and office space in the same manner as
     now for six months following the transfer of ownership right of the Share
     as described in Exhibit no 6 above.

                                     ss. 7
1.   The Seller warrants that as of October 31,2000 Total Liabilities
     (liabilities as marked in RED in Exhibit 7) minus the sum of cash as noted
     in Exhibit 7, VAT receivable balance as of October 31, 2000 collected post
     October 31, 2000 through 1 year from the signing of this agreement and
     accounts receivable collected post October 31, 2000 through 1 year from the
     signing of this agreement , the value of inventory, other current assets
     and prepaid expenses on Exhibit 7 used or sold post October 31,2000 through
     1 year from the signing of this agreement (the result of such calculations
     shall hereinafter be referred to as Due Debts) will not exceed 3.000.000
     (three million US dollars) USD. To such extent that Due Debts do total more
     than 3.000.000 (three million US dollars) USD the Seller shall be
     responsible for them and shall reimburse the Purchaser within 30 days of
     receipt of proof, not earlier than payment as described in paragraph 3.2b.
     has been made. Payment to Purchaser shall solely be from the $ 200,000
     reserve fund in paragraph 3.2c and after that fund is extinguished upon
     demand on the guarantee of PKP as Exhibit --. Guarantee shall expire upon
     sale of PKP to third party or after one year whatever occurs first. The
     Purchaser agrees that under no circumstances is the Seller directly
     responsible but only through the $ 200,000 reserve fund and the guarantee
     of PKP as stated above.

                                       4
<PAGE>

2.   Should, within one year from the date of this agreement, Due Debts prove to
     be less than 3.000.000 USD minus the Amerbank Loan or should the Company
     pay less than 3.000.000 USD minus the Amerbank Loan to its creditors whose
     claims make up this amount, the Purchaser shall pay to the Seller half of
     the difference between the amount mentioned and the actually paid amount.

3.   Should, within the due diligence period any unrecorded liabilities arise to
     the extent that Due Debts exceed 3.000.000 USD Purchaser shall have the
     right to decrease the amount specified in par 3.2c) by the amount exceeding
     3.000.000 USD. Should, within one year from the date of this agreement, Due
     Debts prove to be more than 3.000.000.USD, and the Purchaser is capable of
     proving that Due Debts exceed 3.000.000 USD and the difference was paid by
     the Purchaser, the Purchaser may demand from the Seller the repayment of
     the difference to the extent that amount specified in par 3.2c was not
     decreased. They want PKP to guarantee the balance, if any.

4.   The Purchaser shall submit quarterly to the Seller a statement of the
     amounts paid to the Company's creditors, such statements to be signed by
     the persons authorized to represent the Purchaser and provide which
     liabilities making the amount of 3.000.000 USD were actually paid.

5.   The Purchaser is obliged after acquisition of title to the Share to make
     available to the auditors indicated by the Seller any and all financial
     documents of the Company. Should the Purchaser fail to comply with the
     aforementioned obligation within 14 days from Seller's notice in writing
     delivered after the lapse of one year, the Purchaser shall pay contractual
     penalty amounting to 1.000 USD (one thousand US dollars) for each day of
     delay. This obligation expires 14 months after acquisition of the Share.

                                     ss. 8
                 REPRESENTATIONS AND WARRANTIES OF THE PARTIES

1.   Each Party hereby represents and warrants to all of the other Parties that:
     (a) it has full power to enter into this Agreement and that the persons
     signing this Agreement on behalf of such Party are duly authorized to bind
     such Party in the performance of this Agreement; (b) the execution and
     performance of this Agreement by such Party will not constitute a default
     under any agreement or commitment to which such Party is a party, or
     violate any administrative decision, judgement, decree or award by which
     such Party is bound; and (c) this Agreement has been duly authorized,
     executed by such Party and approved by such Party's respective governing
     bodies, and constitutes the legal, valid and binding obligation of such
     Party, enforceable against it in accordance with its terms, subject to
     bankruptcy, insolvency and other similar laws relating to or affecting the
     enforceability of creditors' rights generally.

2.   The Parties hereby confirm that the Purchaser and Seller decide to enter
     into this Agreement in reliance on the representations made and warranties
     given by the other Party in this Agreement and that without such
     representations and warranties any party would not have entered into this
     Agreement.

                                       5
<PAGE>

                                     ss. 9
          REPRESENTATIONS AND WARRANTIES OF THE SELLER AND THE COMPANY

1.   In connection with the par 8 section 2, the Seller and the Company hereby
     represents and warrants to the Purchaser the following:

     (a)  all the documents and written information made available by the
          Company and the Seller, their employees, agents and advisors,
          represent a complete, true and fair view of the operations as well as
          the financial and legal position of the Company and the Seller; in
          particular there exist no known documents or information not presented
          to the Purchaser, their representatives or advisors regarding
          circumstances which could have a material adverse effect on the
          operations or the financial or legal position of the Company;

     (b)  the Company is duly incorporated, validly existing under the laws of
          Poland, is and has been since its incorporation duly licensed,
          permitted and qualified to conduct its business in Poland and the
          establishment of the Company was performed in accordance with the laws
          of Poland;

     (c)  the Seller is duly incorporated and validly existing under the laws of
          Florida, and there are no pending or threatened bankruptcy,
          liquidation or settlement with creditors proceedings relating to
          Seller

     (d)  the share capital has been paid in accordance with the provisions of
          the Polish Commercial Code except for the amount of approximate
          120.000 USD of the in-kind contribution. In return for unpaid
          contribution Seller forgave equal amount of the loan granted to the
          Company. The current excerpt from the share register of the Company is
          attached hererto as Exhibit B,

     (e)  the entire share capital of the Company is free of any encumbrances
          and clear of any claims, validly issued save section d) above, and
          free of any third party's rights;

     (f)  the Company has no Supervisory Board;

     (g)  no consent or authorization or filing with any governmental authority
          is required in connection with selling the Share in the Company by the
          Purchaser, except for the notification to the President of the Office
          for the Competition and Consumer Protection;

     (h)  the Company received required licenses and permits to conduct its
          operations;

     (i)  As of October 31,2000 Due Debts of the Company do not exceed 3.000.000
          USD except for the liabilities resulting from the loans stipulated in
          the attached assignment of claims between IFFC and Amrest Holding
          N.V.;

     (j)  the Company is not an owner or perpetual usufructuary of any real
          estate located in the territory of Poland or abroad;

     (k)  the Company does not use any property of a state owned person under
          any title under any agreement longer than 6 months;

                                       6
<PAGE>

     (l)  the Company is not obliged to transfer or encumber, gratuitously or
          non-gratuitously, any element of its property to any third person as
          of today or in the future, except for donation promised to one of the
          Municipalities at the amount of --- PLN as described in Exhibit 9;

     (m)  the Company does not own shares or partnership interest in any company
          or partnership, except CRSB Sp. z o.o. and Krolewski Hamburger -
          Polska Sp. z o.o. who's deed of association and commercial register
          extracts are attached hereto as Exhibits 10 and 11 ;

     (n)  the Company is not in infringement of any industrial and intellectual
          property rights of other persons,

     (o)  the Company observes its employee's rights and obligations in
          compliance with all internal, local, regional and national labor laws
          (including the Safety and Hygiene at Work provisions);

     (p)  there is no litigation and administrative proceedings to which the
          Company is a party and there are no other litigation matters
          (including arbitration), claims, proceedings or investigations pending
          or threatened against the Company (including proceedings connected
          with protection of the environment pending against the Company or
          caused by the motion of the Company) other than what is listed on
          Exibit --;

     (r)  there are no custom matters pending against or threatening to the
          Company before custom authorities or before the Supreme Administrative
          Court;

     (s)  the Company is not in default with respect to any order issued by any
          court, governmental authority or arbitration board or tribunal to
          which the Company is a party or is subject to, and the Company is not
          in violation of any laws, ordinances, governmental rules or
          regulations which it is subject to (including environmental laws);

     (t)  the Company prepared and filed prior to the time when due all
          appropriate local and national authorities all tax and social security
          returns and other reports required to be filed by the Company prior to
          the date hereof, which tax returns and reports were correctly prepared
          and consistent with the financial statements of the Company, and the
          Company has paid all due taxes, including interest and penalties, in
          respect of all periods covered by such return. The Company is not a
          party to any pending action or proceedings instituted by any
          governmental authority for assessment or collection of taxes other
          than set forth on Exhibit --. All taxes which the Company is required
          by law to withhold or collect, have been duly withheld or collected
          and have been timely paid over to the proper governmental authorities
          or properly held by the Company for such payment;

                                       7
<PAGE>

     (u)  no administrative fees or costs are due and the Company is not a party
          to any pending or threatened action by any governmental authority
          which can result in payment of any such administrative fees or costs;

     (v)  the Company is not a party of any binding agreement or preliminary
          agreement which could create obligation to the Company to sell the
          Enterprise or any part of the Company to any third person;

     (w)  The Seller is not a party of any agreement or preliminary agreement
          obliging the Seller to dispose (including donation) the Share in the
          Company;

     (x)  the Company has not granted any guarantees and has not issued any
          bills of exchange, created any charges over its current or future
          assets and is not liable for any debts of any third parties, excluding
          those listed in Exhibit 12;

     (y)  No long-term contracts of more than 3 months were signed, excluding
          those listed in Exhibit 13;

     (z)  There are no transactions and agreements between the Company and (i)
          Company shareholders, (ii) members of the Management Board of the
          Company, (iii) any party related to the persons specified in clauses
          (i) and (ii) which can create obligation of the Company at the moment
          and can create them in the future excluding other than already
          revealed to the Purchaser according to this Agreement;

     (aa) Exhibit 14 constitutes the true and complete list of all material
          transactions, agreements and contracts to which the Company is a
          party, all liens, encumbrances, assignments or pledges of any of the
          Company's property whether personal, tangible or intangible personal
          property; All these documents are in full force and effect and the
          Company is not aware that any party thereto is, in breach or default
          thereof;

     (bb) The Seller and Company hereby warrant that there has been no material
          change in financial condition of the Company from November 1st, 2000
          audit till today other than incurred in the normal course of business.

3.   The Seller declares, that while executing the rights of the Shareholders
     Assembly of the Company starting from the day of signing this Agreement
     shall not adopt any resolution, which will change the current financial and
     legal status of the Company without prior written consent of the Purchaser,
     in particular shall not decrease the capital of the Company, redeem the
     share or dismiss Member of the Management Board. Seller grants hereby the
     Purchaser the power of attorney to execute all necessary rights of
     Shareholders Assembly of the Company. Following the receipt the above
     mentioned power of attorney the Purchaser declares, that while executing
     the rights of the Shareholders Assembly of the Company shall not adopt any
     resolution, which would result in harm to the Company or Seller.

                                       8
<PAGE>

4.   During the validity of this Agreement the Seller undertakes not to enter
     into any agreement by which the Seller would sell, dispose, encumber,
     pledge or donate the Share or would be obliged to do so.

5.   The Seller guaranties to the Purchaser the right of first refusal to
     purchase the shares held by IFFC in Pizza King Polska Sp. z o.o. domiciled
     in Warsaw, Poland (prawo pierwokupu) for the period of 12 months from the
     date of signing this Agreement. The right of first refusal shall be
     exercised in accordance with Polish Civil Code with the exception that the
     Purchaser shall have 21 days after notification of the sale agreement to
     exercise its right of first refusal.

6.   The representations and warranties described in par. 9.1 a) - 9.1 aa) are
     subject to materiality as described in par 15.

7.   Representations and warranties regarding the Share in particular those
     described in ss. 1 section 2 and ss. 9 section 4 shall be treated as
     significant features of the Share from the point of view of the provisions
     regarding warranty for physical and/or legal defects.

ss.10 The Seller represents that it is the guarantor towards Bank Amerykanski w
Polsce S.A. w Warszawie ("Amerbank") of payment by the Company of the amount of
1.375.002 USD arising under credit contracts herein referred to as "Amerbank
Loan", attached as Exhibit 15.2. The Purchaser shall within 60 days after
transfer of ownership of Share procure that the Seller's obligation mentioned
above is assumed by the Purchaser and the Seller is thus fully released from the
said obligation by Amerbank. If Amerbank does not agree on such assumption and
release, Purchaser hereby agrees and warrants that if Amerbank demands the
payment of debt from Seller, Purchaser shall pay such debt. Purchaser further
agrees not to renew, modify or increase the amount due with Amerbank without
causing the bank to release the Sellers guarantee. Additionally the payment of
credit mentioned above is secured by the guarantee constituting Exhibit 18.

                                     ss. 11
The Seller declares that simultaneously with signing of this Agreement it shall
procure that the composition of the management board of the Company is changed
in such a way that the management board of the Company is composed of the
persons indicated by the Purchaser. The so appointed management board shall
manage the Company's affairs in accordance with the Management Agreement
attached hereto as Exhibit No 16.

                                     ss. 12
The transfer of the ownership right of the Share shall be notified by the
Purchaser to the management Board of the Company in order for the management
board to comply with the notification obligation arising out of Article 188 ss.3
of the Polish Commercial Code.

                                       9
<PAGE>

                                     ss. 13
1.   Any payments to the Seller pursuant to the provisions of this agreement
     shall be transferred to the following account: Northern Trust Bank of
     Florida, N. A., 700 Brickell Avenue, Miami, Florida 33131, ABA Routing No.
     066009650, for final credit to International Fast Food Corporation account
     1010033376.
2.   Any notice which either Party hereto is required to serve upon other Party
     should be in writing and shall be sufficiently served if personally
     delivered with a written receipt or sent by registered mail and faxed or by
     Internationally Recognized Courier Company in the instance of the Seller
     to: International Fast Food Corporation Miami Beach, 1000 Lincoln Road,
     Suite 200, Florida, 33139.

     in the instance of the Purchaser to:
     Henry McGovern,
     "American Restaurants" Spolka z o.o.
     50-381 Wroclaw, ul. M.C.Sklodowkiej 1

     Copy of any notice sent by the Purchaser to the Seller or the Company
     should be sent to:
     Mr. Tomasz Barylski
     Barylski T., Olszewski A., Brzozowski A.
     Kancelaria Prawnicza, Spolka Komandytowa
     Ul. Krakowskie Przedmiescie 4/6
     00-333 Warsaw
     Fax no. 22 828 71 71

                                     ss. 14
1.   This Agreement has been executed, as of the date first above written, in
     Polish and English language versions; in case of any discrepancies the
     English version shall prevail.
2.   For the purpose of this Agreement "materiality" shall mean the aggregate
     amount in excess of 50.000 USD arising from any damage that results into an
     actual financial loss as a consequence of breach of representation and
     warranties. Any liability of the Seller as provided for in paragraph 7.1
     resulting from representations and warranties shall only be payable once
     the Due Debt, plus liabilities arising from representations and warranties
     exceed 3.000.000 USD.

                                     ss. 15
1.   The Company agrees, simultaneously with signing of this Agreement, to
     deliver to Commercial Court the attached list of shareholders with
     reference to the rights of Purchaser under this Agreement. The list of
     shareholders constitutes Exhibit 17.
2.   The parties hereto mutually agree to maintain all the terms and conditions
     of this Agreement in complete confidence including the terms of all related
     transactions with BKC, except for disclosures required by law.

<PAGE>

                                     ss. 16
1.   This Agreement is subject to Polish Law.
2.   Any disputes arising out of this Agreement, shall be settled by the
     Arbitration Court at the National Chamber of Commerce in Warsaw in
     accordance with the rules of that court.

                                       10
<PAGE>

List of Exhibits:
1)   No 1 - power of attorney for Tomasz Barylski;
2)   No 2 - extract from the commercial register of American Restaurants Sp.
            z o.o.;
3)   No 3 - extract from the commercial register of IFFP sp. z o.o.;
4)   No 4 - assignment of IFFC claims to Amrest Holdings N.V.;
5)   No 5 - assignment of IFFP claims against PKP;
6)   No 6 - description of relationship between PKP and IFFP;
7)   No 7 - marked balance sheet of IFFP;
8)   No 8 - share register of IFFP;
9)   No 9 - letter to Municipality;
10)  No 10 - deed of association of CRSB Sp.z o.o.;
11)  No 11 - extract from the register of Krolewski Hamburger - Polska Sp. z
             o.o.;
12)  No 12 - list of guarantees;
13)  No 13 - list of long term contracts;
14)  No 14 - list of other important contracts;
15)  No 15 - Credit Agreement;
16)  No 16 - Management Agreement.
17)  No 17 - list of shareholders;
18)  No 18 - Amrest Holdings N.V. guarantee;

Company                     Seller:                   Purchaser:

                     /s/ MITCHELL RUBINSON            /S/ SIGNATURE ILLEGIBLE
-----------          ---------------------            -----------------------

                                       11

                           ANNEX I DATED ____________
                 TO SHARE TRANSFER AGREEMENT OF 27 NOVEMBER 2000
                          ("SHARE TRANSFER AGREEMENT")
                          ENTERED INTO BY AND BETWEEN:

1.   International Fast Food Corporation, an American company with its
     registered office in Miami Beach, 1020 Lincoln Road, Suite 200, Florida,
     33139, USA, represented by Mitchell Rubinson and Larry Schatz, hereinafter
     referred to as the Seller,

and

2.   American Restaurants Sp.z.o.o. with its seat in Wrochaw, at Maria Curie -
     Sklodowaka 1, entered into commercial register of the District Court for
     Wrochaw under no. RIJB 9262 represented by (name illegible) and Tomasz
     Suchowierski hereinafter referred to as the Purchaser.

and

3.   International Fast Food Polska Spolka z orgraniczona odpowiezialnoscia with
     its registered office in Warsaw ul. Jagiellonska 15 entered into the
     commercial register kept by the District Court for the city of Warsaw XVI
     Economic Registration Division under RHB No. 32513, represented by Tomasz
     Wieniewski and Jack Trybuchorwski hereinafter referred to as the Company.

                                      SS.1

         The Purchaser acknowledges that the Agreement of Release attached
hereto as appendix 1 if signed by BKC is satisfactory to the Purchaser and
fulfills the requirements provided for in ss. 3(2)(a) of the Share Transfer
Agreement. The Agreement of Release shall be signed by Purchaser simultaneously
with signing this annex.

                                      SS.2

         Further, the Parties have resolved to make the following amendments to
the Share Transfer Agreement:

     ss. 3(2)(b) shall read as follows:

     "Within 7 business days after statement of non-objection to the merger is
     issued by the President of the Office for Competition and Consumer
     Protection and delivered to any of the Parties, the Purchaser shall
     initiate swift wire transfer to the Seller of 700,000 (seven hundred
     thousand US dollars) USD. If Purchaser fails to pay this amount on time,
     Purchaser shall pay to Seller 5,000 USD (five thousand US dollars) as
     contractual interest for each day of delay. The full $700,000 under this
     provision shall not be subject to any offsets of any nature whatsoever.
     Same instrument shall apply to payment described in point e) and d) below."

<PAGE>

     ss. 3(2)(c) shall read as follows:

     "Starting from receipt of Agreement of Release (today) Purchaser shall
     conduct due diligence of the Company not to exceed 360 days. At the end of
     this 360 (three hundred and sixty) days due diligence period the Purchaser
     shall pay to the Seller 200,000 USD less any discovered unrecorded
     liabilities incurred prior to November 1, 2000 and to the extent that Due
     Debts mentioned in par 7 exceed given their amount and are paid by the
     Purchaser. One year, as referenced in this Share Transfer Agreement, shall
     equal 360 days."

     A new ss. 3(2)(d) shall be added, which shall read as follows:

     At the end of ninety (90) days the Purchaser shall pay to the Seller, by
     Swift wire transfer, $100,000 (one hundred thousand dollars) USD, less the
     costs to the Purchaser of the closing and termination of the lease
     agreements for Raciborz and/or Katowice. The Seller's liability regarding
     the lease of Raciborz and Katowice shall be limited by this provision and
     in event shall exceed $100,000 USD. Any monies retained by Purchaser under
     this provision and later not actually paid to the creditor, shall be paid
     to the Seller after one year from the date of the signing of the Share
     Transfer Agreement. Purchaser agrees to use their best efforts to mitigate
     the cost to the Seller. If Purchaser decides to operate at any of these
     locations, there shall be no charge by Purchaser against the reserve fund
     for that location. If Purchaser sells either Katowice or Raciborz, the
     funds received for sale shall be for the benefit of the Seller and shall be
     remitted to the Seller by the Purchaser within 7 business days of receipt."

     A new ss. 4(6) shall be added after ss. 4(5), which shall read as follows:

     "The earlier of (illegible) months from the signing of the Share Transfer
     Agreement or the procurement of a statement of non objection to the merger
     from the President of the Office for Competition and Consumer Protection
     the Purchaser shall have the right to terminate the Share Transfer
     Agreement provided that no section has been taken by the Company and/or the
     Purchaser out of the ordinary course of business. Not ordinary course of
     business shall include but not be limited to the modification, transfer,
     sale or cancelling of any lease agreement of the closing of any location or
     the entering into any binding contracts. If Purchaser elects to terminate
     the Share Transfer Agreement the Purchaser shall forfeit all monies
     advanced to the Company and all monies given to Seller. The Company and the
     Seller shall be under no obligation to return any monies or consideration
     given up to the date of notification or termination. This provision shall
     only be valid and enforceable once the conditions of payment have been met
     by Purchaser under 3(2)(a)"

                                      -2-
<PAGE>

                                      SS.3

         Purchaser does hereby acknowledge that the guaranty issued by AmRest
Holdings N.V. constituting enclosure 13 to the Share Transfer Agreement is still
valid and sufficient under the modifications to the Share Transfer Agreement
introduced by this annex. In witness whereof the guaranty has been duly
confirmed by AmRest Holdings N.V. and attached hereto as appendix 2.

                                      SS.4

         The provisions of this annex amending the Share Transfer Agreement
shall come into force and be binding upon the Parties under the condition that
Purchaser initiates swift wire transfer of 1,000,000 USD (one million US
dollars) as provided in ss. 3(2)(a) of the Share Transfer Agreement

                                      SS.5

         This annex has been executed by fax. The Parties acknowledge that such
mode of execution of this annex is valid and binding upon them. The Parties
shall as soon as possible, but not later than within 10 business days starting
from the date of this annex, procure that the originally signed copies of this
annex are duly exchanged among them.

                                      SS.6

         The Polish version of this annex shall be prepared within the next 3
days. However, in case of any discrepancies between the two language versions,
the English version shall prevail.

         List of appendices:

1)       No 1 - Agreement of Release from Burger King Corporation

2)       No 2 - Confirmed Guaranty by AmRest Holdings N.V.

Company:         Seller:                                Purchaser:

                 /S/ MITCHELL RUBINSON, PRESIDENT       /S/ SIGNATURE ILLEGIBLE
------------     --------------------------------       -----------------------
                 /s/ Larry Schatz, Vice President       /s/ Signature Illegible

                                      -3-
<PAGE>LOAN AGREEMENT by and between

THE GREEN MOUNTAIN COFFEE, INC.

EMPLOYEE STOCK OWNERSHIP TRUST

and GREEN MOUNTAIN COFFEE, INC.

 

 

Made and Entered Into as of April 16, 2001

LOAN AGREEMENT

This LOAN AGREEMENT ("Loan Agreement") is made and entered into as of the 16th day of April, 2001, by and between the GREEN MOUNTAIN COFFEE, INC. EMPLOYEE STOCK OWNERSHIP TRUST ("Borrower"), a trust forming part of the
Green Mountain Coffee, Inc. Employee Stock Ownership Plan ("ESOP"), acting by and through its Trustee, HSBC Bank USA (the "Trustee"), a banking corporation existing under the laws of the State of New York and having an office at 126 State Street, Albany,
NY 12207; and GREEN MOUNTAIN COFFEE, INC. ("Lender"), a corporation organized and existing under the laws of the State of Delaware and having an office at 33 Coffee Lane, Waterbury, VT 05676.

 

WITNESSETH:

WHEREAS, the Borrower has been authorized to purchase the number of shares of common stock of the Lender ("Common Stock") in open market purchases which can be purchased with $2,000,000; and 

WHEREAS, the Borrower has also been authorized to borrow funds from the Lender for the purpose of financing the authorized purchases of Common Stock; and 

WHEREAS, the Lender is willing to make a loan to the Borrower for such purpose, subject to the terms and conditions of this Loan Agreement;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

Definitions

The following definitions shall apply for purposes of this Loan Agreement, except to the extent that a different meaning is plainly indicated by the context:

Section 1.1Business Day means any day other than a Saturday, Sunday or other day on which banks are authorized or required to close under federal law or the laws of the State of New York.

Section 1.2Code means the Internal Revenue Code of 1986 (including the corresponding provisions of any succeeding law).

 

Section 1.3Default means an event or condition which would constitute an Event of Default. The determination as to whether an event or condition would constitute an Event of Default shall be determined without regard to
any applicable requirement of notice or lapse of time.

Section 1.4ERISA means the Employee Retirement Income Security Act of 1974, as amended (including the corresponding provisions of any succeeding law).

Section 1.5Event of Default means an event or condition described in Article 5.

Section 1.6Fiscal Year means the fiscal year of the Lender.

Section 1.7Independent Counsel means The Goldstein Law Firm, P.C., or other counsel mutually satisfactory to both the Lender and the Borrower.

Section 1.8Loan means the loan described in section 2.1.

Section 1.9Loan Documents means, collectively, this Loan Agreement, the Promissory Note and the Pledge Agreement and all other documents now or hereafter executed and delivered in connection with such documents,
including all amendments, modifications and supplements of or to all such documents.

Section 1.10Plan Year means the fiscal year of the ESOP.

Section 1.11Pledge Agreement means the agreement described in section 2.8(a).

Section 1.12Principal Amount means the face amount of the Promissory Note, determined as set forth in section 2.1(c).

Section 1.13Promissory Note means the promissory note described in section 2.3.

Section 1.14Register means the register described in section 2.9.

 

ARTICLE II

The Loan; Principal Amount;

Interest; Security; Indemnification

Section 2.1The Loan; Principal Amount.

(a)The Lender hereby agrees to lend to the Borrower such amounts, and at such times, as shall be determined under this section 2.1; provided, however, that in no event shall the aggregate amount lent under this Loan
Agreement from time to time exceed $2,000,000; and provided, further, that any amount once lent under this Agreement and repaid may not again be re-lent under this Agreement. 

(b)Subject to the limitations of section 2.1(a), the Borrower shall determine the amounts borrowed under this Agreement, and the times at which such borrowings are effected. Each such determination shall be evidenced in a
writing which shall set forth the amount to be borrowed and the date on which the Lender shall disburse such amount, and such writing shall be furnished to the Lender by notice from the Borrower. The Lender shall disburse to the Borrower the amount
specified in each such notice on the date specified therein or, if later, as promptly as practicable following the Lender's receipt of such notice; provided, however, that the Lender shall have no obligation to disburse funds pursuant to this Agreement following the occurrence of a Default or an Event of Default until such time as such Default or Event of Default shall have been cured.

(c)For all purposes of this Loan Agreement, the Principal Amount on any date shall be equal to the excess, if any, of:

(i)the aggregate amount disbursed by the Lender pursuant to section 2.1(b) on or before such date; over

(ii)the aggregate amount of any repayments of such amounts made before such date.

The Lender shall maintain on the Register a record of, and shall record on the Promissory Note, the Principal Amount, any changes in the Principal Amount and the effective date of any changes in the Principal Amount.

(d)Notwithstanding the foregoing, no additional amounts shall be disbursed by the Lender pursuant to section 2.1(b) after July 1, 2001. 

Section 2.2Interest.

(a)The Borrower shall pay to the Lender interest on the Principal Amount, for the period commencing on the date of this Loan Agreement and continuing until the Principal Amount shall be paid in full, at a fixed rate per
annum equal to eight and one-half percent (8.5%). Interest payable under this Agreement shall be computed on the basis of a year of 365 days and actual days elapsed (including the first day but excluding the last) occurring in the period to which the
computation relates.

(b)Except as otherwise provided in this section 2.2(b), accrued interest on the Principal Amount shall be payable by the Borrower annually in arrears commencing on the last Business Day of the first Fiscal Year to end
following the date of this Agreement and continuing on the last Business Day of each Fiscal Year thereafter and upon the payment or prepayment of such Loan. All interest on the Principal Amount shall be paid by the Borrower in immediately available funds.
The Lender shall remit to the Borrower, at least three (3) Business Days before the end of each Fiscal Year, a statement of the interest payment due under section 2.2(a) for such year; provided, however, that a delay or failure by the Lender in providing the Borrower with such statement shall not alter the Borrower's obligation to make such payment.

(c)Anything in this Loan Agreement or the Promissory Note to the contrary notwithstanding, the obligation of the Borrower to make payments of interest shall be subject to the limitation that payments of interest shall not
be required to be made to the Lender to the extent that the Lender's receipt thereof would not be permissible under the law or laws applicable to the Lender limiting rates of interest which may be charged or collected by the Lender. Any such payment
referred to in the preceding sentence shall be made by the Borrower to the Lender on the earliest interest payment date or dates on which the receipt thereof would be permissible under the laws applicable to the Lender limiting rates of interest which may
be charged or collected by the Lender. Such deferred interest shall not bear interest.

Section 2.3Promissory Note.

The Loan shall be evidenced by a Promissory Note of the Borrower in substantially the form of Exhibit A attached hereto, dated the date hereof, payable to the order of the Lender in the Principal Amount and otherwise duly completed.

Section 2.4Payment of Trust Loan.

(a)The Principal Amount of the Loan shall be amortized in ten (10) equal annual installments, commencing on the last Business Day of the first Fiscal Year to end following the date of this Agreement and continuing on the last
Business Day of each Fiscal Year thereafter; provided, however, that the Borrower shall not be required to make any payment of principal due to be made in any Fiscal Year to the extent that such payment would exceed, with respect to such Fiscal Year, the sum of all contributions made to the
ESOP by the Lender in cash to enable the Borrower to meet its obligations under this Agreement, any earnings on such contributions and any cash dividends on shares initially held as "Collateral" (as defined in the Pledge Agreement) regardless of whether
such shares are still held as "Pledged Shares" (as defined in the Pledge Agreement). Principal payments may be deferred to the extent that such payments would be in excess of the amount described above. Any payment not required to be made pursuant to the
immediately preceding sentence shall be deferred to and be payable on the last day of the first Fiscal Year in which such payment may be made. 

(b)Notwithstanding the foregoing, the entire outstanding Principal Amount, and all unpaid accrued interest, shall be due and payable on the last Business Day of Fiscal Year 2010. 

Section 2.5Prepayment.

The Borrower shall be entitled to prepay the Loan in whole or in part, at any time and from time to time; provided, however, that the Borrower shall give notice to the Lender of any such prepayment. Any such prepayment shall
be: (a) permanent and irrevocable; (b) accompanied by all accrued interest through the date of such prepayment; (c) made without premium or penalty; and (d) applied in the inverse order of the maturity of the installments thereof unless the Lender and the
Borrower agree to apply such prepayments in some other order.

Section 2.6Method of Payments.

(a)All payments of principal, interest, other charges and other amounts payable by the Borrower hereunder shall be made in lawful money of the United States, in immediately available funds, to the Lender at the address
specified in or pursuant to this Loan Agreement for notices to the Lender, not later than 3:00 P.M., New York time, on the date on which such payment shall become due. Any such payment made on such date but after such time shall, if the amount paid bears
interest, and except as expressly provided to the contrary herein, be deemed to have been made on, and interest shall continue to accrue and be payable thereon until, the next succeeding Business Day. If any payment of principal or interest becomes due on
a day other than a Business Day, such payment may be made on the next succeeding Business Day, and when paid, such payment shall include interest to the day on which such payment is in fact made.

(b)Notwithstanding anything to the contrary contained in this Loan Agreement or the Promissory Note, neither the Borrower nor the Trustee shall be obligated to make any payment, or repayment or prepayment on the Promissory
Note or take or refrain from taking any other action hereunder or under the Promissory Note if doing so would cause the ESOP to cease to be an employee stock ownership plan within the meaning of section 4975(e)(7) of the Code or qualified under section
401(a) of the Code or cause the Borrower to cease to be a tax exempt trust under section 501(a) of the Code or if such act or failure to act would cause the Borrower or Trustee to engage in any "prohibited transaction" as such term is defined in section
4975(c) of the Code and the regulations promulgated thereunder which is not exempted by section 4975(c)(2) or (d) of the Code and the regulations promulgated thereunder or in section 406 of ERISA and the regulations promulgated thereunder which is not
exempted by section 408(b) of ERISA and the regulations promulgated thereunder; provided, however, that in each case, the Borrower or the Trustee or both, as the case may be, may act or refrain from acting pursuant to this section 2.6(b) on the basis of
an opinion of Independent Counsel. The Borrower and the Trustee may consult with Independent Counsel, and any opinion of such Independent Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted
by it hereunder in good faith and in accordance with such opinion of Independent Counsel. Nothing contained in this section 2.6(b) shall be construed as imposing a duty on either the Borrower or the Trustee to consult with Independent Counsel. Any
obligation of the Borrower or the Trustee to make any payment, repayment or prepayment on the Promissory Note or to take or refrain from taking any other act hereunder or under the Promissory Note which is excused pursuant to this section 2.6(b) shall be
considered a binding obligation of the Borrower or the Trustee, or both, as the case may be, for the purposes of determining whether a Default or Event of Default has occurred hereunder or under the Promissory Note and nothing in this section 2.6(b) shall
be construed as providing a defense to any remedies otherwise available upon a Default or an Event of Default hereunder (other than the remedy of specific performance).

Section 2.7Use of Proceeds of Loan.

The entire proceeds of the Loan shall be used solely for acquiring shares of Common Stock, and for no other purpose whatsoever.

Section 2.8Security.

(a)In order to secure the due payment and performance by the Borrower of all of its obligations under this Loan Agreement, simultaneously with the execution and deliver of this Loan Agreement by the Borrower, the Borrower
shall:

(i)pledge to the Lender as Collateral (as defined in the Pledge Agreement), and grant to the Lender a first priority lien on and security interest in, the Common Stock purchased with the Principal Amount, by the
execution and delivery to the Lender of a Pledge Agreement in the form attached hereto as Exhibit B; and

(ii)execute and deliver, or cause to be executed and delivered, such other agreements, instruments and documents as the Lender may reasonably require in order to effect the purposes of the Pledge Agreement and this Loan
Agreement.

(b)The Lender shall release from encumbrance under the Pledge Agreement and transfer to the Borrower, as of the date on which any payment or prepayment of the Principal Amount is made, a number of shares of Common Stock
held as Collateral determined pursuant to section 7.4 of the ESOP.

Section 2.9Registration of the Promissory Note.

(a)The Lender shall maintain a Register providing for the registration of the Principal Amount and any stated interest and of the transfer and exchange of the Promissory Note. Transfer of the Promissory Note may be effected
only by the surrender of the old instrument and either the reissuance by the Borrower of the old instrument to the new holder or the issuance by the Borrower of a new instrument to the new holder. The old Promissory Note so surrendered shall be cancelled
by the Lender and returned to the Borrower after such cancellation.

(b)Any new Promissory Note issued pursuant to section 2.9(a) shall carry the same rights to interest (unpaid and to accrue) carried by the Promissory Note so transferred or exchanged so that there will not be any loss or
gain of interest on the note surrendered. Such new Promissory Note shall be subject to all of the provisions and entitled to all of the benefits of this Agreement. Prior to due presentment for registration or transfer, the Borrower may deem and treat the
registered holder of any Promissory Note as the holder thereof for purposes of payment and all other purposes. A notation shall be made on each new Promissory Note of the amount of all payments of principal and interest theretofore paid.

ARTICLE III

Representations and Warranties of the Borrower

To the actual knowledge of the Trustee, the Borrower hereby represents and warrants to the Lender as follows:

Section 3.1Power, Authority, Consents.

The Borrower has the power to execute, deliver and perform this Loan Agreement, the Promissory Note and the Pledge Agreement, all of which have been duly authorized by all necessary and proper corporate or other action.

Section 3.2Due Execution, Validity, Enforceability.

Each of the Loan Documents, including, without limitation, this Loan Agreement, the Promissory Note and the Pledge Agreement, have been duly executed and delivered by the Borrower; and each constitutes the valid and legally binding
obligation of the Borrower, enforceable in accordance with its terms, except as may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar other laws (including the laws of fraudulent conveyance) or judicial decisions affecting the enforcement of creditors' rights
generally and (ii) the enforceability of the obligations hereunder are subject to the general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

Section 3.3Properties, Priority of Liens.

The liens which have been created and granted by the Pledge Agreement constitute valid, first liens on the properties and assets covered by the Pledge Agreement, subject to no prior or equal lien.

Section 3.4No Defaults, Compliance with Laws.

The Borrower is not in default in any material respect under any agreement, ordinance, resolution, decree, bond, note, indenture, order or judgment to which it is a party or by which it is bound, or any other agreement or other
instrument by which any of the properties or assets owned by it is materially affected.

Section 3.5Purchases of Common Stock.

Upon consummation of any purchase of Common Stock by the Borrower with the proceeds of the Loan, the Borrower shall acquire a valid, legal and marketable title to all of the Common Stock so purchased, free and clear of any liens,
other than a pledge to the Lender of the Common Stock so purchased pursuant to the Pledge Agreement. Neither the execution and deliver of the Loan Documents nor the performance of any obligation thereunder violates any provision of law or conflicts with
or results in a breach of or creates (with or without the giving of notice or lapse of time, or both) a default under any agreement to which the Borrower is a party or by which it is bound or any of its properties is affected. No consent of any federal,
state or local governmental authority, agency or other regulatory body, the absence of which could have a materially adverse 

effect on the Borrower or the Trustee, is or was required to be obtained in connection with the execution, deliver or performance of the Loan Documents and the transactions contemplated therein or in connection therewith, including,
without limitation, with respect to the transfer of the shares of Common Stock purchased with the proceeds of the Loan pursuant thereto.

For purposes of this Article, "actual knowledge of the Trustee" means the actual knowledge of representatives of the Trustee who have worked on the transactions contemplated under the Loan Documents, specifically James R. McDonald,
VP.

ARTICLE IV

Representations and Warranties of the Lender

The Lender hereby represents and warrants to the Borrower as follows:

Section 4.1Power, Authority, Consents.

The Lender has the power to execute, deliver and perform this Loan Agreement, the Pledge Agreement and all documents executed by the Lender in connection with the Loan, all of which have been duly authorized by all necessary and
proper corporate or other action. No consent, authorization or approval or other action by any governmental authority or regulatory body, and no notice by the Lender to, or filing by the Lender with, any governmental authority or regulatory body is
required for the due execution, delivery and performance of this Loan Agreement.

Section 4.2Due Execution, Validity, Enforceability.

This Loan Agreement and the Pledge Agreement have been duly executed and delivered by the Lender; and each constitutes a valid and legally binding obligation of the Lender, enforceable in accordance with its terms, except as may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar other laws (including the laws of fraudulent conveyance) or judicial decisions affecting the enforcement of creditors' rights generally and (ii) the enforceability of the
obligations hereunder are subject to the general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

Section 4.3ESOP; Contributions.

The ESOP and the Borrower have been duly created, organized and maintained by the Lender in compliance with all applicable laws, regulations and rulings. The ESOP qualifies as an "employee stock ownership plan" as defined in
section 4975(e)(7) the Code. The ESOP provides that the Lender may make contributions to the ESOP in an amount necessary to enable the Trustee to amortize the Loan in accordance with the terms of the Promissory Note and this Loan Agreement, and the Lender
shall make such contributions; provided, however, that no such contributions shall be required if they would adversely affect the qualification of the ESOP under section 401(a) of the Code.

 

Section 4.4Trustee; Committee.

The Lender has taken such action as is required to be taken by it to duly appoint the Trustee, the members of the "Committee" defined and described in the trust agreement forming the Borrower and the "Administrator" defined and
described in the ESOP. The Lender expressly acknowledges and agrees that this Loan Agreement, the Promissory Note and the Pledge Agreement are being executed by the Trustee not in its individual capacity but solely as trustee of and on behalf of the
Borrower.

Section 4.5Compliance with Laws; Actions.

Neither the execution and deliver by the Lender of this Loan Agreement or any instruments required thereby, nor compliance with the terms and provisions of any such documents by the Lender, constitutes a violation of any provision
of any law or any regulation, order, writ, injunction or decree or any court or governmental instrumentality, or an event of default under any agreement, to which the Lender is a party or by which the Lender is bound or to which the Lender is subject,
which violation or event of default would have a material adverse effect on the Lender. There is no action or proceeding pending or threatened against either of the ESOP or the Borrower before any court or administrative agency.

Section 4.6Exempt Loan Rules.

The Loan will be an "exempt loan", as that phrase is defined in Treasury Regulation section 54.4975-7 and Department of Labor Regulation section 2550.408b-3, and the transactions contemplated by the Loan Documents are not nonexempt
"prohibited transactions" under section 4975 of the Code and section 406 of ERISA.

 

ARTICLE V

Events of Default

Section 5.1Events of Default under Loan Agreement.

Each of the following events shall constitute an "Event of Default" hereunder:

(a)Failure to make any payment of principal of the Promissory Note, or failure to make any payment of interest on the Promissory Note, not later than five (5) Business Days after the date when due.

(b)Failure by the Borrower to perform or observe any term, condition or covenant of this Loan Agreement or of any of the other Loan Documents, including, without limitation, the Promissory Note and the Pledge Agreement,
provided such failure is not cured by the Borrower within five (5) Business Days after notice is provided to the Borrower by the Lender.

(c)Any representation or warranty made in writing to the Lender in any of the Loan Documents or any certificate, statement or report made or delivered in compliance with this Loan Agreement, shall have been false or
misleading in any material respect when made or delivered.

Section 5.2Lender's Rights upon Event of Default.

If an Event of Default under this Loan Agreement shall occur and be continuing, the Lender shall have no rights to assets of the Borrower other than: (a) contributions (other than contributions of Common Stock) that are made by the
Lender to enable the Borrower to meet its obligations pursuant to this Loan Agreement and earnings attributable to the investment of such contributions and (b) "Eligible Collateral" (as defined in the Pledge Agreement); provided, however, that: (i) the value of the Borrower's assets transferred to the Lender following an Event of Default in satisfaction of the due and unpaid amount of the Loan shall not exceed the amount in default (without regard to amounts owing
solely as a result of any acceleration of the Loan); (ii) the Borrower's assets shall be transferred to the Lender following an Event of Default only to the extent of the failure of the Borrower to meet the payment schedule of the Loan; and (iii) all
rights of the Lender to the Common Stock purchased with the proceeds of the Loan covered by the Pledge Agreement following an Event of Default shall be governed by the terms of the Pledge Agreement.

 

ARTICLE VI

Miscellaneous Provisions

Section 6.1Payments Due to the Lender.

If any amount is payable by the Borrower to the Lender pursuant to any indemnity obligation contained herein, then the Borrower shall pay, at the time or times provided therefor, any such amount and shall indemnify the Lender
against and hold it harmless from any loss or damage resulting from or arising out of the nonpayment or delay in payment of any such amount. If any amounts as to which the Borrower has so indemnified the Lender hereunder shall be assessed or levied
against the Lender, the Lender may notify the Borrower and make immediate payment thereof, together with interest or penalties in connection therewith, and shall thereupon be entitled to and shall receive immediate reimbursement therefor from the
Borrower, together with interest on each such amount as provided in section 2.2(c). Notwithstanding any other provision contained in this Loan Agreement, the covenants and agreements of the Borrower contained in this section 6.1 shall survive: (a) payment
of the Promissory Note and (b) termination of this Loan Agreement.

 

Section 6.2Payments. 

All payments hereunder and under the Promissory Note shall be made without set-off or counterclaim and in such amounts as may be necessary in order that all such payments shall not be 

less than the amounts otherwise specified to be paid under this Loan Agreement and the Promissory Note, subject to any applicable tax withholding requirements. Upon payment in full of the Promissory Note, the Lender shall mark such
Promissory Note "Paid" and return it to the Borrower.

Section 6.3Survival.

All agreements, representations and warranties made herein shall survive the delivery of this Loan Agreement and the Promissory Note.

Section 6.4Modifications, Consents and Waivers; Entire Agreement.

No modification, amendment or waiver of or with respect to any provision of this Loan Agreement, the Promissory Note, the Pledge Agreement, or any of the other Loan Documents, nor consent to any departure from any of the terms or
conditions thereof, shall in any event be effective unless it shall be in writing and signed by the party against whom enforcement thereof is sought. Any such waiver or consent shall be effective only in the specific instance and for the purpose for which
given. No consent to or demand on a party in any case shall, of itself, entitle it to any other or further notice or demand in similar or other circumstances. This Loan Agreement embodies the entire agreement and understanding between the Lender and the
Borrower and supersedes all prior agreements and understandings relating to the subject matter hereof.

Section 6.5Remedies Cumulative.

Each and every right granted to the Lender hereunder or under any other document delivered hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative and may be exercised from time to time. No failure
on the part of the Lender or the holder of the Promissory Note to exercise, and no delay in exercising, any right shall operate as a waiver thereof, nor shall any single or partial exercise of any right preclude any other or future exercise thereof or the
exercise of any other right. The due payment and performance of the obligations under the Loan Documents shall be without regard to any counterclaim, right of offset or any other claim whatsoever which the Borrower may have against the Lender and without
regard to any other obligation of any nature whatsoever which the Lender may have to the Borrower, and no such counterclaim or offset shall be asserted by the Borrower in any action, suit or proceeding instituted by the Lender for payment or performance
of such obligations.

Section 6.6Further Assurances; Compliance with Consents.

At any time and from time to time, upon the request of the Lender, the Borrower shall execute, deliver and acknowledge or cause to be executed, delivered and acknowledged, such further documents and instruments and do such other
acts and things as the Lender may reasonably 

request in order to fully effect the terms of this Loan Agreement, the Promissory Note, the Pledge Agreement, the other Loan Documents and any other agreements, instruments and documents delivered pursuant hereto or in connection with
the Loan.

Section 6.7Notices.

Except as otherwise specifically provided for herein, all notices, requests, reports and other communications pursuant to this Loan Agreement shall be in writing, either by letter (delivered by hand or commercial messenger service)
or sent by registered or certified mail, return receipt requested, except for routine reports delivered in compliance with Article VI hereof which may be sent by ordinary first-class mail) or telex of telecopier, addressed as follows:

(a)If to the Borrower:

HSBC Bank USA

126 State Street

Albany, New York 12207

Attention:James R. McDonald, 

Vice President

with a copy to:

The Goldstein Law Firm, P.C.

12 Corporate Woods Blvd.

Albany, New York 12211

Attention:Brian P. Goldstein, Esq.

(b)If to the Lender:

Green Mountain Coffee, Inc.

33 Coffee Lane

Waterbury, Vermont 05676

Attention:Robert Britt, 

Vice President and Chief Financial Officer

with a copy to:

Gravel and Shea

P.O. Box 369

76 St. Paul Street, 7th Flr.

Burlington, VT 05401

Attention:Stephen Magowan, Esq.

 

Any notice, request or communication hereunder shall be deemed to have been given on the day on which it is delivered by hand or by commercial messenger service, or sent by telex or telecopier, to such party at its address specified
above, or, if sent by mail, on the third Business Day after the day deposited in the mail, postage prepaid, addressed as aforesaid. Any party may change the person or address to whom or which notices are to be given hereunder, by notice duly given
hereunder; provided, however, that any such notice shall be deemed to have been given only when actually received by the party to whom it is addressed.

Section 6.8Counterparts.

This Loan Agreement may be signed in any number of counterparts which, when taken together, shall constitute one and the same document.

Section 6.9Construction; Governing Law.

The headings used in this Loan Agreement are for convenience only and shall not be deemed to constitute a part hereof. All uses herein of any gender or of singular or plural terms shall be deemed to include uses of the other
genders or plural or singular terms, as the context may require. All references in this Loan Agreement to an Article or section shall be to an Article or section of this Loan Agreement, unless otherwise specified. This Loan Agreement, the Promissory Note,
the Pledge Agreement and the other Loan Documents shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

Section 6.10Severability.

Wherever possible, each provision of this Loan Agreement shall be interpreted in such manner as to be effective and valid under applicable law; however, the provisions of this Loan Agreement are severable, and if any clause or
provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction and shall not in any manner affect
such clause or provision in any other jurisdiction, or any other clause or provision in this Loan Agreement in any jurisdiction. Each of the covenants, agreements and conditions contained in this Loan Agreement is independent, and compliance by a party
with any of them shall not excuse non-compliance by such party with any other. 

Section 6.11Binding Effect; No Assignment or Delegation. 

This Loan Agreement shall be binding and inure to the benefit of the Borrower and its successors and the Lender and its successors and assigns. The rights and obligations of the Borrower under this Agreement shall not be assigned
or delegated without the prior written consent of the Lender, and any purported assignment or delegation without such consent shall be void.

 

[Remainder of page intentionally left blank.]

 

IN WITNESS WHEREOF, the parties hereto have cause this Loan Agreement to be duly executed as of the date first above written.

THE BORROWER:GREEN MOUNTAIN COFFEE, INC.

EMPLOYEE STOCK OWNERSHIP TRUST

 By:HSBC Bank USA, as Trustee

 

By:___________________________________ 

James R. McDonald, VP

THE LENDER: GREEN MOUNTAIN COFFEE, INC.

 By:Robert P. Stiller

Title:CEO and President

Gmcr loan docs.3

EXHIBIT A To Loan Agreement By and Between

Green Mountain Coffee, Inc. Employee Stock Ownership Trust

and Green Mountain Coffee, Inc.

 

FORM OF PROMISSORY NOTE

 

For the "Principal Amount",  Albany, New York

as determined under Loan Agreement April 16, 2001

 

 

FOR VALUE RECEIVED, the undersigned, the Green Mountain Coffee, Inc. Employee Stock Ownership Trust ("Borrower"), acting by and through its Trustee, HSBC Bank USA ("Trustee"), hereby promises to pay to the order of Green Mountain Coffee, Inc.
("Lender") the "Principal Amount", as determined under the Loan Agreement made and entered into between the Borrower and the Lender as of the date hereof ("Loan Agreement") pursuant to which this Promissory Note is issued, together with interest as set
forth herein. The Principal Amount shall be amortized in ten (10) consecutive equal annual installments, commencing on the last Business Day (as defined in the Loan Agreement) of the first Fiscal Year to end following the date of this Note and continuing
on the last Business Day of each Fiscal Year thereafter; provided, however, that the Borrower shall not be required to make any payment of principal due to be made in any Fiscal Year to the extent that such payment would exceed, with respect to such Fiscal Year, the sum of all contributions made to the
ESOP by the Lender in cash to enable the Borrower to meet its obligations under the Loan Agreement, any earnings on such contributions and any cash dividends on shares initially held as "Collateral" (as defined in the Pledge Agreement) regardless of
whether such shares are still held as "Pledged Shares" (as defined in the Pledge Agreement). Principal payments may be deferred to the extent that such payments would be in excess of the amount described above. Any payment not required to be made pursuant
to the immediately preceding sentence shall be deferred to and be payable on the last day of the first Fiscal Year in which such payment may be made. 

This Promissory Note shall bear interest at the rate per annum set forth or established under the Loan Agreement, such interest to be payable annually in arrears, commencing on the last Business Day of Fiscal Year 2001 and
thereafter on the last Business Day of each subsequent Fiscal Year and upon payment or prepayment of this Promissory Note. 

Notwithstanding the foregoing, the entire outstanding Principal Amount, and all unpaid accrued interest, shall be due and payable on the last Business Day of Fiscal Year 2010. 

Anything herein to the contrary notwithstanding, the obligation of the Borrower to make payments of interest shall be subject to the limitation that payments of interest shall not be required to be made to the Lender to the extent
that the Lender's receipt thereof would not be permissible under the law or laws applicable to the Lender limiting rates of interest which may be charged or collected by the Lender. Any such payments of interest which are not made as a result of the
limitation referred to in the preceding sentence shall be made by the Borrower to the Lender on the earliest interest payment date or dates on which the receipt thereof would be permissible under the laws applicable to the Lender limiting rates of
interest which may be charged or collected by the Lender. Such deferred interest shall not bear interest.

Payments of both principal and interest on this Promissory Note are to be made at the principal office of the Lender indicated in the Loan Agreement, or such other place as the holder hereof shall designate to the Borrower in
writing, in lawful money of the United States of America in immediately available funds.

Failure to make any payment of principal on this Promissory Note, or failure to make any payment of interest on this Promissory Note, not later than five (5) Business Days after the date when due, shall constitute a default
hereunder, whereupon the principal amount of and accrued interest on this Promissory Note shall immediately become due and payable in accordance with the terms of the Loan Agreement.

This Promissory Note is subject, in all respects, to the terms and provisions of the Loan Agreement, which is incorporated herein by this reference, and is secured by a Pledge Agreement between the Borrower and the Lender of even
date herewith and is entitled to the benefits thereof.
GREEN MOUNTAIN COFFE, INC.

EMPLOYEE STOCK OWNERSHIP TRUST

By: HSBC Bank USA, as Trustee

 

By:James R. McDonald

Title:Vice President

EXHIBIT B To Loan Agreement By and Between The Green Mountain Coffee, Inc. Employee Stock Ownership Trust

and Green Mountain Coffee, Inc.

 

FORM OF PLEDGE AGREEMENT

 

This PLEDGE AGREEMENT ("Pledge Agreement") is made as of the 16th day of April, 2001 by and between the GREEN MOUNTAIN COFFEE, INC. EMPLOYEE STOCK OWNERSHIP TRUST, acting by and through its Trustee, HSBC BANK USA, a banking
corporation organized under the laws of the State of New York and having an office at 126 State Street, Albany, New York 12207 ("Pledgor"), and GREEN MOUNTAIN COFFEE, INC.., a corporation organized and existing under the laws of the State of Delaware and
having an office at 33 Coffee Lane, Waterbury, Vermont 05676 ("Pledgee").

WITNESSETH:

WHEREAS, this Pledge Agreement is being executed and delivered to the Pledgee pursuant to the terms of a Loan Agreement of even date herewith ("Loan Agreement"), by and between the Pledgor and the Pledgee;

NOW, THEREFORE, in consideration of the mutual agreements contained herein and in the Loan Agreement, the parties hereto do hereby covenant and agree as follows:

Section 1. Definitions. The following definitions shall apply for purposes of this Pledge Agreement, except to the extent that a different meaning is plainly indicated by the context; all capitalized terms used but not
defined herein shall have the respective meanings assigned to them in the Loan Agreement:

(a)Collateral shall mean the Pledged Shares and, subject to section 5 hereof, and to the extent permitted by applicable law, all rights with respect thereto, and all proceeds of such Pledged Shares and rights.

(b)Event of Default shall mean an event so defined in the Loan Agreement.

(c)Liabilities shall mean all the obligations of the Pledgor to the Pledgee, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become
due, under the Loan Agreement and the Promissory Note.

(d)Pledged Shares shall means all the shares of Common Stock of the Company purchased by the Pledgor with the proceeds of the loan made by the Pledgee to the Pledgor pursuant to the Loan Agreement, but excluding any
such shares previously released pursuant to section 4.

Section 2. Pledge. To secure the payment of and performance of all the Liabilities, the Pledgor hereby pledges to the Pledgee, and grants to the Pledgee a security interest in and lien upon, the Collateral.

Section 3. Representations and Warranties of the Pledgor. To the actual knowledge of the Trustee, the Pledgor represents, warrants, and covenants to the Pledgee as follows:

(a)the execution, delivery and performance of this Pledge Agreement and the pledging of the Collateral hereunder do not and will not conflict with, result in a violation of, or constitute a default under any agreement
binding upon the Pledgor;

(b) the Pledged Shares are and will continue to be owned by the Pledgor free and clear of any liens or rights of any other person except the lien hereunder and under the Loan Agreement in favor of the Pledgee, and the
security interest of the Pledgee in the Pledged Shares and the proceeds thereof is and will continue to be prior to and senior to the right of all others;

(c) this Pledge Agreement is the legal, valid, binding and enforceable obligation of the Pledgor in accordance with its terms;

(d)the Pledgor shall, from time to time, upon the request of the Pledgee, promptly deliver to the Pledgee such stock powers, proxies, and similar documents, satisfactory in form and substance to the Pledgee with respect to
the Collateral as the Pledgee may reasonably request; and

(e) subject to the first sentence of section 4(b), the Pledgor shall not, so long as any Liabilities are outstanding, sell, assign, exchange, pledge or otherwise transfer or encumber any of its rights in and to any of the
Collateral.

For purposes of this Section, "actual knowledge of the Trustee" means the actual knowledge of representatives of the Trustee who have worked on the transactions contemplated under the Loan Documents, specifically James R. McDonald,
VP.

Section 4. Eligible Collateral.

(a) As used herein the term "Eligible Collateral" shall mean that amount of Collateral which has an aggregate fair market value equal to the amount by which the Pledgor is in default (without regard to any amounts owing
solely as the result of an acceleration of the Loan Agreement) or such lesser amount of Collateral as may be required pursuant to section 2 of this Pledge Agreement.

(b)The Pledged Shares shall be released from this Pledge Agreement in a manner conforming to the requirements of Treasury Regulations Section 54.4975-7(b)(8), as the same may be from time to time amended or supplemented,
and the "principal and interest" method of release described in 7.4 of the ESOP. Subject to such Regulations, the Pledgee may from time to time, after any Default or Event of Default, and without prior notice to the Pledgor, transfer all or any part of
the Eligible Collateral into the name of the Pledgee or its nominee, with or without disclosing that such Eligible Collateral is subject to any rights of the Pledgor and may from time to time, whether before or after any of the Liabilities shall become
due and payable, without notice to the Pledgor, take all or any of the following actions: (i) notify the parties obligated on any of the Eligible Collateral to make payment to the Pledgee of any amounts due or to become due thereunder, (ii) release or
exchange all or any part of the Eligible Collateral, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto, and (iii) take control of any proceeds
of the Eligible Collateral.

Section 5. Delivery.

(a)The Pledgor shall deliver to the Pledgee upon execution of this Pledge Agreement (i) either (A) certificates for the Pledged Shares, each certificate duly signed in blank by the Pledgor or accompanied by a stock transfer
power duly signed in blank by the Pledgor and each such certificate accompanied by all required documentary or stock transfer tax stamps or (B) if the Trustee does not yet have possession of the Pledged Shares, an assignment by the Pledgor of all the
Pledgor's rights to and interest in the Pledged Shares and (ii) an irrevocable proxy, in form and substance satisfactory to the Pledgee, signed by the Pledgor with respect to the Pledged Shares.

(b)So long as no Default or Event of Default shall have occurred and be continuing, (i) the Pledgor shall be entitled to exercise any and all voting and other rights pertaining to the Collateral or any part thereof for any
purpose not inconsistent with the terms of this Pledge Agreement, and (ii) the Pledgor shall be entitled to receive any and all cash dividends or other distributions paid in respect of the Collateral.

Section 6. Events of Default.

(a)If a Default or an Event of Default shall be existing, in addition to the rights it may have under the Loan Agreement, the Promissory Note, and this Pledge Agreement, or by virtue of any other instrument, (i) the Pledgee
may exercise, with respect to the Eligible Collateral, from time to time any rights and remedies available to it under the Uniform Commercial Code as in effect from time to time in the State of New York or otherwise available to it and (ii) the Pledgee
shall have the right, for and in the name, place and stead of the Pledgor, to execute endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to all or any of the Eligible Collateral. Written notification of
intended disposition of any of the Eligible Collateral shall be given by the Pledgee to the Pledgor at least three (3) Business Days before such disposition. Subject to section 13 below, any proceeds of any disposition of Eligible Collateral may be
applied by the Pledgee to the payment of expenses in connection with the Eligible Collateral, including, without limitation, reasonable attorneys' fees and legal expenses, and any balance of such proceeds may be applied by the Pledgee toward the payment
of such of the Liabilities as are in Default, and in such order of application, as the Pledgee may from time to time elect. No action of the Pledgee permitted hereunder shall impair or affect its rights in and to the Eligible Collateral. All rights and
remedies of the Pledgee expressed hereunder are in addition to all other rights and remedies possessed by it, including, without limitation, those contained in the documents referred to in the definition of Liabilities in section 1 hereof.

(b)In any sale of the Eligible Collateral after a Default or an Event of Default shall have occurred, the Pledgee is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be
advised by counsel is necessary in order to avoid any violation of applicable law (including, without limitation, compliance with such procedures as may restrict the number of prospective bidders and purchasers or further restrict such prospective bidders
or purchasers to persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Eligible Collateral), or in order to obtain such required approval of the sale or
of the purchase by any governmental regulatory authority or official, and the Pledgor further agrees that such compliance shall not result in such sale's being considered or deemed not to have been made in a commercially reasonable manner, nor shall the
Pledgee be liable or accountable to the Pledgor for any discount allowed by reason of the fact that such Eligible Collateral is sold in compliance with any such limitation or restriction.

Section 7. Payment in Full. Upon the payment in full of all outstanding Liabilities, this Pledge Agreement shall terminate and the Pledgee shall forthwith assign, transfer and deliver to the Pledgor, against receipt and
without recourse to the Pledgee, all Collateral then held by the Pledgee pursuant to this Pledge Agreement.

Section 8. No Waiver. No failure or delay on the part of the Pledgee in exercising any right or remedy hereunder or under any other document which confers or grants any rights in the Pledgee in respect of the Liabilities
shall operate as a waiver thereof nor shall any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy of the Pledgee.

Section 9. Binding Effect; No Assignment or Delegation. This Pledge Agreement shall be binding upon and inure to the benefit of the Pledgor, the Pledgee and their respective successors and assigns, except that the Pledgor
may not assign or transfer its rights hereunder without the prior written consent of the Pledgee (which consent shall not unreasonably be withheld). Each duty or obligation of the Pledgor to the Pledgee pursuant to the provisions of this Pledge Agreement
shall be performed in favor of any person or entity designated by the Pledgee, and any duty or obligation of the Pledgee to the Pledgor may be performed by any other person or entity designated by the Pledgee.

Section 10. Governing Law. This Pledge Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements to be performed wholly within the State of New York.

Section 11. Notices. All notices, requests, instructions or documents hereunder shall be in writing and delivered personally or sent by United States mail, registered or certified, return receipt requested, with proper
postage prepaid, as follows: 
(a)If to the Pledgee:

Green Mountain Coffee, Inc.

33 Coffee Lane

Waterbury, Vermont 05676

Attention:Robert Britt, 

Vice President and Chief Financial Office

with a copy to:

Gravel and Shea

P.O. Box 369

76 St. Paul Street, 7th Flr.

Burlington, VT 05401

Attention:Stephen Magowan, Esq.

(b)If to the Pledgor:

HSBC Bank USA

126 State Street

Albany, New York 12207

Attention:James R. McDonald, 

Vice President

with a copy to:

The Goldstein Law Firm, P.C.

12 Corporate Woods Blvd.

Albany, New York 12211

Attention:Brian P. Goldstein, Esq.

 

Any notice, request or communication hereunder shall be deemed to have been given on the day on which it is delivered by hand or by commercial messenger service, or sent by telex or telecopier, to 

such party at its address specified above, or, if sent by mail, on the third Business Day after the day deposited in the mail, postage prepaid, addressed as aforesaid. Any party may change the person or address to whom or which notices
are to be given hereunder, by notice duly given hereunder; provided, however, that any such notice shall be deemed to have been given only when actually received by the party to whom it is addressed.

 

Section 12. Interpretation. Wherever possible, each provision of this Pledge Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision hereof shall be prohibited by
or invalid under such law, such provisions shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions hereof.

Section 13. Construction. Notwithstanding any provision contained herein to the contrary, all provisions hereof shall be construed so as to maintain (a) the ESOP as a qualified leverage employee stock ownership plan under
section 401(a) and 4975(e)(7) of the Internal Revenue Code of 1986 (the "Code"), (b) the Trust as exempt from taxation under section 501(a) of the Code and (c) the Loan as an exempt loan under section 54.4975-7(b) of the Treasury Regulations and as
described in Department of Labor Regulation section 2550.408b-3.

 

 

 

 

 

 

 

 

 

[Remainder of page intentionally left blank.]

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

 

GREEN MOUNTAIN COFFEE, INC.

EMPLOYEE STOCK OWNERSHIP TRUST

By: HSBC Bank USA, as Trustee 

 and not in any other capacity

 

By:James R. McDonald

Title:Vice President

 

GREEN MOUNTAIN COFFEE, INC.

 

By:Robert P. Stiller

Title:CEO and President

 

EXHIBIT C To Loan Agreement By and Between Green Mountain Coffee, Inc. Employee Stock Ownership Trust

And Green Mountain Coffee, Inc.

 

FORM OF ASSIGNMENT

 

In consideration of the loan made by Green Mountain Coffee, Inc. ("Lender") to the Green Mountain Coffee, Inc. Employee Stock Ownership Trust with HSBC Bank USA ("Borrower") pursuant to the Loan Agreement of even date herewith
between the Lender and the Borrower ("Loan Agreement") and pursuant to the Pledge Agreement between the Lender and the Borrower of even date herewith pertaining thereto, and subject to the terms and conditions of the Loan Agreement, the undersigned
Borrower hereby transfers, assigns and conveys to the Lender all its right, title and interest in and to those certain shares of common stock of the Lender which it shall purchase with the proceeds of the loan made pursuant to the Loan Agreement, and
agrees to transfer and endorse to the Lender the certificates representing such shares promptly upon its receipt thereof.

 

GREEN MOUNTAIN COFFEE, INC.

EMPLOYEE STOCK OWNERSHIP TRUST

By: HSBC Bank USA, as its Trustee

 

By:James R. McDonald

Title:Vice President

April 16, 2001

 

 

EXHIBIT D To Loan Agreement By and Between Green Mountain Coffee, Inc. Employee Stock Ownership Trust

And Green Mountain Coffee, Inc.

 

 

FORM OF IRREVOCABLE PROXY

 

In consideration of the loan made by Green Mountain Coffee, Inc. ("Lender") to the Green Mountain Coffee, Inc. Employee Stock Ownership Trust ("Borrower") pursuant to the Loan Agreement of even date herewith between the Lender and
the Borrower ("Loan Agreement") and the Pledge Agreement between the Lender and the Borrower of even date herewith pertaining thereto, and subject to the terms and conditions of the Loan Agreement, the undersigned Borrower hereby appoints the Lender as
its proxy, with power of substitution, to represent and to vote those certain shares of common stock of the Lender which it shall purchase with the proceeds of the loan made pursuant to the Loan Agreement. This proxy, when properly executed, shall be
irrevocable and shall give the Lender full power and authority to vote on any and all matters for which the other holders of shares of common stock of the Lender are entitled to vote.

 

GREEN MOUNTAIN COFFEE, INC.

EMPLOYEE STOCK OWNERSHIP TRUST

By: HSBC Bank USA, as its Trustee

 

By:James R. McDonald

Title:Vice President

April 16, 2001

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