Document:

Agreement with Kerrii B. Anderson

 Exhibit 10(a) 
 [Wendy’s International, Inc. letterhead] 
 August 10, 2006 
 HAND DELIVERED 
 Mrs. Kerrii B. Anderson 
 [Address] 
 Dear Mrs. Anderson: 
 Wendy’s International, Inc. (the “Company”) recognizes that you have made major contributions to the short- and long-term profitability, growth and financial strength of the Company, and are expected to continue to make such
contributions in the future, including during the period beginning as of the date of this agreement and ending on April 25, 2008 (the “Retention Date”). In order to diminish the inevitable distraction created by the possibility,
threat or occurrence of a termination of your employment by the Company other than for cause or a material change by the Company in your position, responsibilities or compensation during such period, in recognition that you have agreed to serve as
interim Chief Executive Officer and President of the Company, and to provide you with compensation upon such termination that ensures your compensation expectations will be satisfied and are competitive with those of other corporations, the Company
wants to offer to you certain cash payments and other rights in the event of such termination. 
 In consideration of your continued
employment with the Company, it is hereby agreed that if your employment with the Company and all of its subsidiaries is terminated by the Company other than for cause (as defined below), or by you for good reason (as defined below), on or prior to
the Retention Date, then you will be entitled to the following rights and benefits: 
 1. On the Termination Date (as defined below), all
performance shares, Earned Performance Shares (as defined in the applicable award agreements), restricted shares and restricted stock units granted to you by the Company that are outstanding and unvested as of the Termination Date shall fully vest,
and any restrictions or risks of forfeiture remaining on any such shares or units as of the Termination Date shall lapse, notwithstanding anything to the contrary set forth in the incentive plan or award agreement under which such shares or units
were granted. 
 2. As severance pay and in lieu of any further salary for periods subsequent to the Termination Date, the Company will pay
you in a single payment an amount in cash equal to the sum of the following (the “Payment Amount”): 
 (a) An amount
equal to two times your annual base salary at the rate in effect at the time Notice of Termination (as defined below) is given; and 
  

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 August 10, 2006 
 Page 2 
 (b)
An amount equal to the excess, if any, of the fair market value of common shares issuable under stock options granted to you by the Company that are outstanding and unexercised as of the Termination Date over the applicable exercise prices for such
unexercised stock options (for purposes of this agreement, “fair market value” means the arithmetic mean of the high and low prices at which common shares of the Company are traded on the New York Stock Exchange on the date Notice of
Termination is given), and all such unexercised stock options shall be canceled as of the Termination Date in exchange for the foregoing cash payment, notwithstanding anything to the contrary set forth in the incentive plan or option award agreement
under which such options were granted. 
 The Payment Amount shall be paid to you within six months and five days after the Termination Date,
or, if a delay in that payment is necessary to avoid an excise tax or other penalty arising from application of Section 409A of the Internal Revenue Code of 1986, as amended, at the earliest subsequent date on which that payment may be made
without giving rise to any such tax or penalty. Your rights under this agreement are in addition to, and not in lieu of, all other rights and benefits to which you may be entitled, including any salary, bonus, vacation pay or other compensation
accrued but unpaid as of the Termination Date, as well as any other rights or benefits to which you may be entitled under other agreements, plans or programs of the Company and its subsidiaries, as they may be amended (or terminated) from time to
time; however, the amount payable to you under paragraph 2(a) above shall be reduced or eliminated by the amount of any severance pay in lieu of further salary payable to you under any other agreement between you and the Company as a result of your
termination by the Company other than for cause (as defined in such other agreement) or by you for good reason (as defined in such other agreement). 
 For the purposes of this agreement, termination for “cause” is a termination by reason of the good faith determination of the Board of Directors of the Company that you (a) willfully and continually
failed to substantially perform your duties with the Company (other than a failure resulting from your incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to you by the Board of Directors
that specifically identifies the manner in which the Board of Directors believes that you have not substantially performed your duties and such failure substantially to perform continues for at least 14 days, or (b) have willfully engaged in
conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise, or (c) have otherwise materially breached any employment agreement between you and the Company (including, without limitation, the voluntary
termination of your employment by you during any employment term, if applicable, under such employment agreement). No act, nor failure to act, on your part shall be considered “willful” unless you have acted, or failed to act, with an
absence of good faith and without a reasonable belief that your action or failure to act was in the best interest of the Company. Notwithstanding the foregoing, 
  

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 August 10, 2006 
 Page 3 
 your employment shall not be deemed
to have been terminated for cause unless and until (1) there shall have been delivered to you a copy of a written notice setting forth that you were guilty of conduct set forth above in clause (a), (b) or (c) of the first sentence of
this paragraph and specifying the particulars thereof in detail, and (2) you shall have been provided an opportunity to be heard by the Board of Directors of the Company (with the assistance of your counsel). 
 For purposes of this agreement, “good reason” means the occurrence of any of the following events or conditions without your express written
consent: (a) a change in your status, title, position or responsibilities (including reporting responsibilities) which, in your reasonable judgment, does not represent a promotion from the positions of Chief Executive Officer and President
(except a change to the position of Executive Vice President and Chief Financial Officer or another executive position reporting directly to the Chief Executive Officer) or Executive Vice President and Chief Financial Officer or another executive
position reporting directly to the Chief Executive Officer; the assignment to you of any duties or responsibilities which, in your reasonable judgment, are inconsistent with such status, title, position or responsibilities; or your removal from, or
the failure to reappoint or reelect you to, any of such positions, except in connection with the termination of your employment for disability, cause, as a result of your death or by you other than for good reason; (b) a reduction by the
Company in your base salary as in effect as of the date of this agreement as long as you are employed as Chief Executive Officer and President, or a reduction by the Company in your base salary below your salary as in effect on April 16, 2006
if you are employed as Executive Vice President and Chief Financial Officer or another executive position reporting directly to the Chief Executive Officer; (c) the Company requiring you to be based at any place outside a 30-mile radius from
your business office location as of the date of this agreement, except for reasonably required travel on Company business; (d) any material breach by the Company of any provision of this agreement or any other agreement between you and the
Company; and (e) the failure of the Company to notify you within the 30-day period specified in the penultimate paragraph of this agreement that the Company has obtained a satisfactory agreement from a successor or assign of the Company to
assume and agree to perform this agreement, as contemplated in such paragraph. 
 Prior to the Retention Date, any purported termination by
the Company or by you shall be communicated by Notice of Termination to the other. A “Notice of Termination” means a written notice which indicates the specific termination provision in this agreement relied upon and sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. If your employment is terminated by the Company for any reason, Notice of Termination must be given at
least 30 days prior to the Termination Date. For purposes of this agreement, no such purported termination shall be effective without a Notice of Termination. “Termination Date” means the date specified in the Notice of Termination.

 Since the performance of your services is an important consideration for this agreement, no payment will be made under this agreement in
the event of your death, disability, retirement, 
  

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 August 10, 2006 
 Page 4 
 voluntary termination or
termination for cause prior to the Retention Date. This agreement shall terminate and be of no further force or effect upon the earlier to occur of (a) your death, disability, retirement, voluntary termination or termination for cause prior to
the Retention Date, and (b) the Retention Date, if your employment has not been terminated prior thereto. In addition, nothing in this agreement shall amend in any way the rights of the Company or its subsidiaries to terminate your employment
with or without cause, nor confer on you any right to continuance of employment by the Company or any of its subsidiaries. Any payment to you required hereunder shall be subject to all withholding and other requirements under applicable law, and to
any deduction requirements of any benefit plan maintained by the Company in which you are a participant, and to all reporting, filing and other requirements in respect of such payment. 
 This agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written instrument executed by
both parties hereto. The validity, interpretation, construction and performance of this agreement shall be governed by the laws of the State of Ohio without giving effect to the conflicts of laws principles thereof. 
 This agreement may be executed simultaneously in two or more counterparts, each of which shall constitute an original, but all of which taken together
shall constitute one and the same agreement. You acknowledge that this agreement will be filed by the Company with the Securities and Exchange Commission. 
 This agreement shall inure to the benefit of and be binding upon the successors and assigns (including successive, as well as immediate, successors and assigns) of the Company, except that the obligations of this
agreement may not be transferred by the Company; however, if the Company transfers to any other person substantially all of its business and assets by merger, consolidation, sale of assets or otherwise, the Company must transfer its obligations
hereunder to such other person and such other person must accept such transfer and assume the obligations of the Company imposed hereby. The Company shall notify you in writing within the 30-day period following any transfer of business and assets
that the transferee has accepted the transfer and assumption of the Company’s obligations under this agreement. This agreement shall inure to the benefit of and be binding upon your heirs and assigns (including successive, as well as immediate,
assigns), except that your rights under this agreement may be assigned only to your personal representative or by will or pursuant to applicable laws of descent and distribution. 
  

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 August 10, 2006 
 Page 5 
 Once you have had
an opportunity to consider this matter and if you agree to its terms and conditions, please return an executed a copy of this letter to the Company, attn: Jeff Cava, by no later than 5:00 p.m. (EDT) on August 10, 2006. The offer set forth in
this agreement will be rescinded if the Company has not received an executed copy back by that date and time. 
  

							
		 		 	Yours truly,
			
		 		 	WENDY’S INTERNATIONAL, INC.
				
		 		 	By:	 	 /s/ Jeffrey M. Cava

		 		 	Name:	 	Jeffrey M. Cava
		 		 	Title:	 	Executive Vice President
	Accepted and agreed to:	 	
			
	 /s/ Kerrii B. Anderson
	 		 	Date: August 10, 2006
	Kerrii B. Anderson	 		 		 	

  

 41Executive Annual Performance Plan, as amended

 Exhibit 10(b) 
 WENDY’S INTERNATIONAL, INC. 
 EXECUTIVE ANNUAL PERFORMANCE PLAN 
 1. Purpose. The purpose of the Executive Annual Performance Plan (the “Plan”) is to enhance the ability of Wendy’s International,
Inc. (the “Company”) and its subsidiaries to attract, motivate, reward, and retain key employees, to strengthen their commitment to the success of the Company and to align their interests with those of the Company’s shareholders by
providing additional compensation to designated key employees of the Company based on the achievement of performance objectives. To this end, the Plan provides a means of rewarding participants based on the performance of the Company, its Operating
Units, and/or the individual. 
 2. Administration. The Plan shall be administered by the Committee and the Company’s CEO as
provided herein. The Committee shall have full authority to establish the rules and regulations relating to the Plan, to interpret the Plan and those rules and regulations, to determine the Performance Objectives of the Company and/or Operating
Units, to establish the bonus pool available, to decide the facts in any case arising under the Plan and to make all other determinations and to take all other actions necessary or appropriate for the proper administration of the Plan, including the
delegation of such authority or power, where appropriate. The Committee’s administration of the Plan, including all such rules and regulations, interpretations, selections, determinations, approvals, decisions, delegations, amendments,
terminations and other actions, shall be final and binding on the Company, its stockholders and the Participants and their beneficiaries. The CEO shall have the full authority to determine the Participants in the Plan, the Award opportunities for
such Participants, and whether such Award opportunities shall be based on the Performance Objectives of the Company, the Performance Objectives of one or more Operating Units, the Performance Objectives of the individual or based on a combination of
these Performance Objectives, provided that no more than 20% of the total target Award opportunity for a Participant (when combined with awards granted under any other bonus plan of the Company payable for the same fiscal year) may be based on
individual Performance Objectives. 
 3. Eligible Employees. Generally, all Employees are eligible to participate in the Plan for any
fiscal year. However, participation shall be limited to those Employees selected by the CEO to participate in the Plan for each fiscal year in accordance with Section 4 or Section 6. 
 4. Determination of Awards. For each fiscal year, the Committee shall establish the Performance Objectives of the Company and/or Operating
Units and the total bonus pool available for individual Performance Objectives. The total bonus pool available for individual Performance Objectives for a fiscal year shall be increased by the target bonus attributable to individual Performance
Objectives for any Participant who is provided an Award by the CEO after such pool has been established. The CEO shall determine (i) the Employees who shall be Participants during each fiscal year, (ii) whether Awards for each Participant
shall be based upon the achievement of Performance Objectives of the Company, the Performance Objective of one or more Operating Units, the Performance Objectives of the individual or on a combination of the achievement of these Performance
Objectives, and (iii) the Award opportunities for each 
  

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 Participant, including the extent to which Awards will be payable for actual performance between each level of the
Performance Objectives. The CEO shall provide to the Committee a schedule that indicates the Participants selected, their Award opportunities, and whether such Awards will be based on the Performance Objectives of the Company, the Performance
Objective of one or more Operating Units, the Performance Objectives of the individual or a combination of these Performance Objectives. In no event may the aggregate target Awards based on individual Performance Objectives or the aggregate bonuses
actually payable based on such individual Performance Objectives exceed the total bonus pool available for a fiscal year. The Company shall notify each Participant of the applicable Performance Objectives for such Participant and his or her
corresponding Award opportunities for each fiscal year. 
 5. Payment of Awards. Awards under this Plan shall be payable as follows:

 (i) As soon as practicable after the determination of the Company’s and, if applicable, the Operating Units’ financial
performance for a fiscal year and, if applicable, the CEO’s determination of the allocation of the available bonus pool among Participants based on their attainment of individual Performance Objectives, subject to the limitation that the
aggregate bonuses payable based on individual Performance Objectives may not exceed the total bonus pool available for the fiscal year, each Award made under Section 4, to the extent earned, shall be paid in a single lump sum cash payment, less
applicable withholding taxes. The CEO’s determination may include a reduction of the Participant’s available Award opportunity originally established, to the extent necessary to remain within the total bonus pool available. 
 (ii) Each Award made under Section 6 shall be paid in a single lump sum cash payment, less applicable withholding taxes, as specified in the
discretionary award. 
 Payments under this Plan are intended to qualify as short-term deferrals under Section 409A of the Code and shall be made no
later than the March 15th immediately following the close of the fiscal year in which such Award was made;
provided, however, that any payment that is delayed after the applicable March 15th due to an
unforeseeable event, as that term may be defined in regulations issued under Code section 409A, shall be paid as soon as practicable. Notwithstanding the foregoing, a Participant may elect to defer all or a portion of any Award otherwise payable in
accordance with this Section, if permitted pursuant to a deferred compensation plan adopted by, or an agreement entered into with, the Company or any of its subsidiaries. 
 6. Discretionary Bonuses. In addition to any Awards payable under Section 4, the CEO, after consultation with the Committee, shall have the authority to make additional cash incentive awards to any
Employees selected by the CEO in amounts determined by the CEO. 
 7. Termination of Employment. No Award for a fiscal year shall be
payable to any Participant unless he or she is employed by the Company or one of its subsidiaries on the payment date for Awards payable in respect of the fiscal year, unless the Participant’s employment was terminated because of his or her
(i) death, (ii) disability or (iii) retirement after attaining age 60 and the completion of 10 years of continuous service with the Company, in which event the Participant will be entitled to a pro-rata portion (which shall be
calculated based 
  

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 on the ratio of the number of calendar days worked in the fiscal year to the total number of calendar days in the fiscal
year) of the Award otherwise payable in respect of that fiscal year, subject to the Committee’s discretion as set forth in Section 2 hereof. 
 8. Change in Control. Notwithstanding any provision in the Plan to the contrary, upon the occurrence of a Change in Control of the Company, the following provisions shall apply: 
 (i) The minimum Award payable to each Participant in respect of the fiscal year in which the Change in Control occurs shall be the greatest of:

 (A) the Award or other annual bonus paid or payable to the Participant in respect of the fiscal year prior to the year in which the Change
in Control occurs; 
 (B) the Award amount that would be payable to the Participant assuming that the Company achieved the target level of
the Performance Objectives for such fiscal year; and 
 (C) the Award amount that would be payable to the Participant based on the
Company’s actual performance and achievement of applicable Performance Objectives for such fiscal year through the date of the Change in Control. 
 (ii) Notwithstanding anything to the contrary contained herein, in the event that following the date of a Change in Control and prior to the payment date for Awards payable in respect of the fiscal year in which the
Change in Control occurs a Participant’s employment is terminated by the Company and its subsidiaries without Cause or by the Participant for Good Reason, such Participant shall be entitled to receive the Award otherwise payable pursuant to the
terms of the Plan in respect of that fiscal year as if he or she had remained in the employ of the Company through the payment date for Awards payable in respect of such fiscal year. 
 (iii) If a Participant’s employment is terminated by the Company and its subsidiaries without Cause prior to the date of a Change in Control but the
Participant reasonably demonstrates that the termination (A) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control or (B) otherwise arose in connection with,
or in anticipation of, a Change in Control which has been threatened or proposed, such termination shall be deemed to have occurred after a Change in Control for purposes of this Agreement provided a Change in Control shall actually have occurred.

 9. Adjustments. The Committee may, at the time Performance Objectives are determined for a fiscal year, or at any time prior to the
final determination of Awards in respect of such fiscal year, provide for the manner in which performance will be measured against the Performance Objectives or may adjust the Performance Objectives to reflect the impact of specified corporate
transactions (such as a stock split or stock dividend), special charges, accounting or tax law changes and other extraordinary or nonrecurring events. 
 10. Designation of Beneficiary. In the event of a Participant’s death prior to full payment of any Award hereunder, unless such Participant shall have designated a beneficiary or 
  

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 beneficiaries in accordance with this Section 10, payment of any Award due under the Plan shall be made to the
Participant’s estate. A beneficiary designation under this Plan, or revocation of a prior beneficiary designation, will be effective only if it is made in writing on a form provided by the Company, signed by the Participant and received by the
Benefits Department of the Company. If a beneficiary has been designated under this Plan and such beneficiary dies prior to receiving any payment of an Award or if such designation shall for any reason be illegal or ineffective, Awards payable under
the Plan shall be paid to the Participant’s estate. 
 11. Amendment or Termination. The Board may amend or terminate the Plan at
any time in its discretion; provided, however, that no amendment or termination of the Plan may affect any Award made under the Plan prior to that time; and provided further, however, that the Plan may not be amended or
terminated through and including the fiscal year in which a Change in Control occurs (i) at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control or (ii) otherwise in
connection with, or in anticipation of, a Change in Control which has been threatened or proposed, in either case provided a Change in Control shall actually have occurred. 
 12. Miscellaneous Provisions 
 (a)
Neither the establishment of this Plan, nor any action taken hereunder, shall be construed as giving any Employee or any Participant any right to be retained in the employ of the Company or any of its subsidiaries. 
 (b) A Participant’s rights and interests under the Plan may not be assigned or transferred, except as provided in Section 10, and any attempted
assignment or transfer shall be null and void and shall extinguish, in the Company’s sole discretion, the Company’s obligation under the Plan to pay Awards with respect to the Participant. 
 (c) The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund, or to make any other segregation of assets,
to assure payment of Awards. 
 (d) The Company shall have the right to deduct from Awards paid any taxes or other amounts required by law to
be withheld. 
 (e) Nothing contained in the Plan shall limit or affect in any manner or degree the normal and usual powers of management,
exercised by the officers and the Board or committees thereof, to change the duties or the character of employment of any employee of the Company or any of its subsidiaries or to remove the individual from the employment of the Company or any of its
subsidiaries at any time, all of which rights and powers are expressly reserved. 
 13. Definitions. 
 (a) “Award” shall mean the cash incentive award earned by a Participant under the Plan for any fiscal year. 
  

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 (b) “Base Salary” shall mean the Participant’s annual base salary actually paid by
the Company and/or any of its subsidiaries and received by the Participant during the applicable fiscal year. Annual base salary does not include (i) Awards under the Plan, (ii) long-term incentive awards, (iii) signing bonuses or any
similar bonuses, (iv) imputed income from such programs as executive life insurance, or (v) nonrecurring earnings such as moving expenses, and is based on salary earnings before reductions for such items as contributions under Sections 125
or 401(k) of the Code or pursuant to any nonqualified deferred compensation plan or agreement. 
 (c) “Board” shall mean the
Board of Directors of the Company. 
 (d) “Cause” shall mean the termination of a Participant’s employment by reason of
the Board’s good faith determination that the Participant (a) willfully and continually failed to substantially perform his or her duties with the Company (other than a failure resulting from the Participant’s incapacity due to
physical or mental illness) after a written demand for substantial performance is delivered to the Participant by the Board which specifically identifies the manner in which the Board believes that the Participant has not substantially performed his
or her duties and such failure substantially to perform continues for at least fourteen (14) days, or (b) has willfully engaged in conduct which is demonstrably and materially injurious to the Company, monetarily or otherwise, or
(c) has otherwise materially breached the terms of his or her employment agreement with the Company, if applicable (each, an “Employment Agreement”) (including, without limitation, a voluntary termination of the Participant’s
employment by the Participant during the term of such Employment Agreement). No act, nor failure to act, on the Participant’s part, shall be considered “willful” unless he or she has acted, or failed to act, with an absence of good
faith and without a reasonable belief that his or her action or failure to act was in the best interest of the Company. Notwithstanding the foregoing, the Participant’s employment shall not be deemed to have been terminated for Cause unless and
until (1) there shall have been delivered to the Participant a copy of a written notice setting forth that the Participant was guilty of conduct set forth above in clause (a), (b) or (c) of the first sentence of this definition and
specifying the particulars thereof in detail, and (2) the Participant shall have been provided an opportunity to be heard by the Board (with the assistance of Participant’s counsel). 
 (e) “CEO” shall mean the Chief Executive Officer of the Company. 
 (f) “Change in Control” shall mean the occurrence during the term of the Plan of: 
 (i) An acquisition (other than directly from the Company) of any common stock or other voting securities of the Company entitled to vote generally for
the election of directors (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),
immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of the then outstanding shares of the Company’s common stock or
the combined voting power of the Company’s then outstanding Voting Securities; provided, however, in determining whether a 
  

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 Change in Control has occurred, Voting Securities which are acquired in a “Non-Control Acquisition” (as
hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (A) an employee benefit plan (or a trust forming a part thereof) maintained by
(1) the Company or (2) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a
“Subsidiary”) (B) the Company or its Subsidiaries, or (C) any Person in connection with a “Non-Control Transaction” (as hereinafter defined); 
 (ii) The individuals who, as of the date the Board adopted the Plan, are members of the Board (the “Incumbent Board”), cease for any reason to
constitute at least seventy percent (70%) of the members of the Board; provided, however, that if the election, or nomination for election by the Company’s common stockholders, of any new director was approved by a vote of at
least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent
Board if such individual initially assumed office as a result of an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended
to avoid or settle any Proxy Contest; or 
 (iii) The consummation of: 
 (A) A merger, consolidation or reorganization with or into the Company or a Subsidiary, or in which securities of the Company are issued (a
“Merger”), unless such Merger is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a Merger if: 
 (1) the stockholders of the Company immediately before such Merger own directly or indirectly immediately following such Merger at least seventy percent (70%) of the combined voting power of the outstanding voting securities of the
corporation resulting from such Merger (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately before such Merger, 
 (2) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at
least two-thirds of the members of the board of directors of the Surviving Corporation, or a corporation beneficially directly or indirectly owning a majority of the Voting Securities of the Surviving Corporation, and 
 (3) no Person other than (i) the Company, (ii) any Subsidiary, (iii) any employee benefit plan (or any trust forming a part thereof) that
immediately prior to such Merger was maintained by the Company or any Subsidiary, or (iv) any Person who, immediately prior to such Merger had Beneficial Ownership of thirty percent (30%) or more of the then outstanding Voting Securities
or common stock of the Company, has Beneficial Ownership of thirty percent (30%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities or its common stock. 
  

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 (B) A complete liquidation or dissolution of the Company; or 
 (C) The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary).

 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”)
acquired Beneficial Ownership of more than the permitted amount of the then outstanding common stock or Voting Securities as a result of the acquisition of common stock or Voting Securities by the Company which, by reducing the number of shares of
common stock or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the
acquisition of common stock or Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional common stock or Voting Securities which increase the percentage of
the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 
 (g)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (h) “Committee” shall mean the
Compensation Committee of the Board or such other committee appointed by the Board from time to time to administer the Plan and to perform the functions set forth herein. 
 (i) “Employee” shall mean any employee of the Company or any of its subsidiaries. 
 (j)
“Good Reason” shall mean the occurrence after a Change in Control of any of the following events or conditions without the Participant’s express written consent: 
 (i) a change in the Participant’s status, title, position or responsibilities (including reporting responsibilities) which, in the
Participant’s reasonable judgment, does not represent a promotion from his or her status, title, position or responsibilities as in effect immediately prior thereto; the assignment to the Participant of any duties or responsibilities which, in
the Participant’s reasonable judgment, are inconsistent with such status, title, position or responsibilities; or any removal of the Participant from or failure to reappoint or reelect him or her to any of such positions, except in connection
with the termination of his or her employment for disability, for Cause, as a result of his or her death or by the Participant other than for Good Reason; 
 (ii) a reduction by the Company in the Participant’s Base Salary as in effect immediately prior to the Change in Control or as the same may be increased from time to time, or a failure to increase
Participant’s Base Salary as of his or her established annual salary review date in any calendar year by a percentage at least as great as the annual increase in the Consumer Price Index for All Urban Consumers and for All Items most recently
published by the United States Bureau of Labor Statistics prior to such salary review date; 
  

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 (iii) the Company’s requiring the Participant to be based at any place outside a 30-mile radius
from the Participant’s business office location immediately prior to the Change in Control, except for reasonably required travel on Company business which is not materially greater than such travel requirements prior to the Change in Control;

 (iv) the failure by the Company to continue to provide the Participant with compensation and benefits substantially similar (in terms of
benefit levels and/or reward opportunities) to those provided for under the Participant’s Employment Agreement, if applicable, and those provided to him or her under any of the employee benefit plans in which the Participant becomes a
participant, or the taking of any action by the Company which would directly or indirectly materially reduce any of such benefits or deprive the Participant of any material fringe benefit enjoyed by him or her at the time of the Change in Control;

 (v) any material breach by the Company of any provision of the Participant’s Employment Agreement with the Company, if applicable;
and 
 (vi) the failure of the Company to notify the Participant within the 30-day period following any transfer of business and assets to
any other person by merger, consolidation, sale of assets or otherwise, that the Company has obtained a satisfactory agreement from a successor or assign of the Company to assume and agree to perform the Participant’s Employment Agreement.

 (k) “Operating Unit”, for any fiscal year, shall mean a division, Company subsidiary, group, product line or product line
grouping for which an income statement reflecting sales and operating income is produced. 
 (l) “Participant”, for any
fiscal year, shall mean an Employee selected by the Committee to participate in the Plan for such fiscal year. 
 (m) “Performance
Objectives”, for any fiscal year, shall mean: 
 (i) For the Company and or Operating Unit(s) - one or more financial performance
objectives of the Company and/or Operating Unit(s) established by the Committee in accordance with Section 4, which may include threshold Performance Objectives, target Performance Objectives and maximum Award Performance Objectives.
Performance Objectives may be expressed in terms of earnings per share, earnings (which may be expressed as earnings before specified items), return on assets, return on invested capital, revenue, operating income, cash flow, total shareholder
return, net income, same store sales (measured by volume or percentage growth and for company, franchised or all stores) or any combination thereof. Performance Objectives may be expressed as a combination of Company and/or Operating Unit(s)
Performance Objectives and may be absolute or relative (to prior performance or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression within a specified range. 
 (ii) For the individual – performance ratings, as measured in the annual performance review process for the applicable fiscal year. 
  

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