Document:

TWC_EX10.7_SteveHareSeparationAgreement

          EXHIBIT 10.7
May 7, 2013

HAND DELIVERED
Steve Hare

    
Dear Steve:

Further to our recent discussions, I am pleased to provide you this letter agreement regarding the terms and conditions associated with the transition from your position as Chief Financial Officer of The Wendy’s Company (“Wendy’s” or the “Company”) to a consulting role.  In consideration of your continued employment and provision of consulting services as described herein, you and the Company have agreed to the following.  Capitalized terms not defined in this letter will have the meanings assigned to them in the applicable document identified herein. 

A.    Employment as CFO

1.  Letter Agreement of December 18, 2008 between you and Wendy’s/Arby’s Group, Inc. (n/k/a The Wendy’s Company) (the “2008 Letter Agreement”).  You will continue to serve in your capacity as CFO under the terms of the 2008 Letter Agreement through September 1, 2013. Your termination on September 1, 2013 will be treated as a termination “without cause” entitling you to the severance and other benefits described in Section 2 of the 2008 Letter Agreement.  The payment of severance and other benefits described in Section 2 of the 2008 Letter Agreement as well as the payments, vesting and other benefits set forth herein are subject to your execution and non-revocation of the Release pursuant to the terms and conditions of Section 2(c) of the 2008 Letter Agreement.  The Company hereby acknowledges and agrees that your continued services as a non-employee director of Hanger, Inc. prior to or during the Second Year Payment Period shall not constitute grounds for the Company to offset any amounts payable to you under Section 2(a)(ii) of the 2008 Letter Agreement. 

2.    Award Agreement of March 22, 2011 between you and Wendy’s/Arby’s Group, Inc. (n/k/a The Wendy’s Company) (the “Award Agreement”). Pursuant to the Award Agreement, you received a lump sum payment of $750,000, less applicable deductions (the “Lump Sum Payment”).  The Company has elected to waive your obligation to pay back any portion of the Lump Sum Payment provided you do not resign other than by reason of a “Triggering Event” and are not terminated for “Cause” (as such terms are defined in the 2008 Letter Agreement) in either case prior to September 1, 2013 (and 

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otherwise perform your duties as CFO in accordance with the terms of the 2008 Letter Agreement).  

3.     Restricted Stock Award Agreement of August 3, 2011 (the “2011 Restricted Stock Agreement”).  As outlined in the 2011 Restricted Stock Agreement, Wendy’s awarded you Restricted Stock subject to certain vesting provisions.  Notwithstanding Section 6 of the 2011 Restricted Stock Agreement, your Restricted Stock Award will vest on September 1, 2013, provided you do not resign other than by reason of a “Triggering Event” and are not terminated for “Cause” (as such terms are defined in the 2008 Letter Agreement) in either case prior to September 1, 2013 (and otherwise perform your duties as CFO in accordance with the terms of the 2008 Letter Agreement). 

4.    Non-Incentive Stock Option Agreements.  Any unvested stock options will continue to vest through September 1, 2013 in accordance with the terms of the applicable Non-Incentive Stock Option Agreements (it being acknowledged and agreed by the parties that, for purposes of Section 4 of the Non-Incentive Stock Option Agreement dated July 2, 2012, the “number of full calendar months worked by [you] since the Date of Grant (with the month in which the Date of Grant occurred being the first month) to the date of termination of employment or service” shall be fourteen (14)).  Each vested stock option held by you as of September 1, 2013 (taking into account any vesting triggered upon or in connection with your termination of employment) shall, notwithstanding your termination of employment, remain outstanding and exercisable (subject to the terms of the applicable Non-Incentive Stock Option Agreement) until September 1, 2014 in accordance with Section 2(a)(vi) of the 2008 Letter Agreement and consistent with the terms and conditions of the applicable Non-Incentive Stock Option Agreements.  

5.    Long Term Performance Unit Award Agreements.  Any Performance Units granted on July 8, 2010 will be subject to the terms of the applicable Long Term Performance Unit Award Agreement (it being understood that, notwithstanding your termination of employment on September 1, 2013, any Shares earned by reason of the level of attainment of the performance criteria applicable to such Performance Units shall be delivered to you no later than October 31, 2013).  The Company hereby agrees that any applicable minimum withholding taxes in respect of the vesting of the Performance Units may, at your election, be withheld from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the settlement of such Performance Units in accordance with Section 6 of the applicable award agreements.  Any Performance Units granted in 2011 and 2012 will be forfeited as of September 1, 2013.  

B.    Consulting Services

1.    Consulting Services.  You agree to serve as a consultant to the Company for the period of September 2, 2013 through January 1, 2014 in accordance with the terms and conditions of the attached Consulting Agreement.  

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2.Restricted Stock Unit Award Agreement of January 1, 2012 (the “2012 Restricted Stock Unit Agreement”).  Notwithstanding anything to the contrary in the 2012 Restricted Stock Unit Agreement, the Restricted Stock Units that remain unvested as of September 1, 2013 and that would have vested and become nonforfeitable on the second anniversary of the Award Date (January 1, 2014) had your employment continued through January 1, 2014 shall vest and become nonforfeitable on January 1, 2014, provided you do not resign other than by reason of a “Triggering Event” and are not terminated for “Cause” (as such terms are defined in the 2008 Letter Agreement) in either case prior to September 1, 2013 (and otherwise perform your duties as CFO in accordance with the terms of the 2008 Letter Agreement) and perform the consulting services in accordance with the terms and conditions of the Consulting Agreement through January 1, 2014 (unless such consulting services are earlier terminated by the Company).  The Company hereby agrees that any applicable minimum withholding taxes in respect of the vesting of the Restricted Stock Units may, at your election, be withheld from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the settlement of such Restricted Stock Units in accordance with Section 8 of the 2012 Restricted Stock Unit Agreement.  

3.    Noncompete/Nonsolicitation/Employee No-Hire; Confidentiality. The non-competition, nonsolicitation and employee no-hire covenants of Section 6, and the confidentiality requirements of Section 7, of the 2008 Letter Agreement shall continue in effect throughout the term of the Consulting Agreement and commencing January 2, 2014 (or commencing upon such earlier date, if any, on which your consulting services are terminated by the Company) and thereafter for the time periods stated in the 2008 Letter Agreement. 

You (or your estate or beneficiary) shall be entitled to receive any vested benefits under The Wendy’s Company 401(K) Retirement Plan in accordance with the terms thereof.  

Except as provided herein, all of the terms and conditions of the agreements referenced herein shall remain in full force and effect; however, if there is a conflict between the terms of this letter and such agreements, the terms of this letter will govern.  

    

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If you agree to the terms set forth herein, please return an executed a copy of this letter to me by no later than 5:00 p.m. (ET) on May 7, 2013.  

Should you have any questions, please let me know.

Yours truly,

/s/ Scott A. Weisberg

Scott Weisberg 
Chief People Officer
THE WENDY’S COMPANY

Accepted and agreed to:

	
				
	/s/ Stephen E. Hare
	 
	Date:
	5/7/13

	STEVE HARE
	 
	 
	 

4TWC_EX10.8_SteveHareConsultingAgreement

EXHIBIT 10.8

CONSULTING AGREEMENT

This Consulting Agreement (the “Agreement”) is entered into by and between The Wendy’s Company (the “Company”) and Stephen E. Hare as of May 7, 2013.

WHEREAS, Mr. Hare currently serves as the Chief Financial Officer of the Company and has extensive knowledge about the Company.  Mr. Hare’s employment will terminate effective September 1, 2013; and

WHEREAS, the Company desires to engage Mr. Hare as a consultant following his departure to provide certain transition services to the Company and Mr. Hare is willing to provide such services for the Company, as more particularly described herein.

NOW, THEREFORE, the parties agree as follows:

1.     Services to Be Performed. Mr. Hare will provide consulting services upon the reasonable request of the Chief Executive Offer or his delegate relating to knowledge and expertise Mr. Hare gained during his employment with the Company (the “Consulting Services”). Mr. Hare may perform the Consulting Services by phone, by in-person attendance at meetings, or in such other manner and at such other time or place as mutually agreed upon by the Company and Mr. Hare; provided that, to the extent that the Company does not require Mr. Hare to perform the Consulting Services from a specific location, Mr. Hare may perform the Consulting Services at a location of Mr. Hare’s choice so long as Mr. Hare is available to report by telephone or in person as reasonably requested by the Company.  

2.     Term. This Agreement will have a term commencing as of September 2, 2013 through January 1, 2014 (the “Term”). 

3.    Compensation.  In consideration for the Consulting Services rendered by Mr. Hare during the Term, the Company agrees that Mr. Hare will be compensated at the rate of $12,500 per month (for an aggregate total of $50,000), regardless of the number of hours he is requested to provide Consulting Services in any month (subject to the immediately following sentence).  The level of Consulting Services Mr. Hare will be required to provide during the Term will be no more than 20% of the average level of services performed by Mr. Hare during the 36-month period immediately prior to September 1, 2013. The monthly payment will be paid on a monthly basis, and no later than 30 days following the relevant month.

4.     Expenses.  Mr. Hare shall be reimbursed for all reasonable out-of-pocket expenses incurred by Mr. Hare in the course of performing his services hereunder, upon the submission of an expense report in which adequate support is provided for the expenses to be reimbursed.

5.    Relationship.  The parties hereto acknowledge and agree that Mr. Hare will act as an independent contractor and not as an employee in performing the Consulting Services.  As an 

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independent contractor, Mr. Hare will not have the authority to act on the Company’s behalf or otherwise commit the Company to any agreement or obligation.  Mr. Hare will not be entitled to any of the benefits provided by the Company to its employees (for example, he will not be covered as an active employee in the Company’s health, life, and disability plans, and he will not be eligible for continued participation in the Company’s qualified and nonqualified retirement plans).  Mr. Hare will be responsible for the payment of all income and employment taxes in connection with his remuneration for the Consulting Services, and the Company shall not withhold any amounts in respect thereof. 

6.      Non-Assignability of Contract. This Agreement is personal to Mr. Hare and he shall not have the right to assign any of his rights or delegate any of his duties without the express written consent of the Company.

7.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Ohio, without regard to the choice of law principles of any jurisdiction.

8.     Severability. In the event any provision of this Agreement shall be held invalid, the same shall not invalidate or otherwise affect in any respect any other term or terms of this Agreement, which term or terms shall remain in full force and effect.

9.     Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and Mr. Hare.

10.     Complete Agreement. This Agreement contains the entire understanding between the parties and supersedes, replaces and takes precedence over any prior or contemporaneous understanding or oral or written agreement between the parties respecting the subject matter of this Agreement. There are no representations, agreements, arrangements, nor understandings, oral or written, between the parties hereto relating to the subject matter of this Agreement which are not fully expressed herein.

11.     Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.

12.    Code Section 409A.  It is intended that this Agreement shall comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury regulations relating thereto, or an exemption to Section 409A of the Code.  Any payments that qualify for the “short-term deferral” exception shall be paid under such exception.  For purposes of Section 409A of the Code, each payment under this Agreement shall be treated as a separate payment for purposes of the exclusion for certain short-term deferral amounts.  In no event may Mr. Hare, directly or indirectly, designate the calendar year of any payment under this Agreement.  Notwithstanding anything to the contrary in this Agreement, all reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Mr. Hare’s lifetime (or during a shorter period of time specified in 

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this Agreement), (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

This Agreement is executed and entered into on the date set forth in the preamble of this Agreement.
	
			
	

CONSULTANT
	 
	

THE WENDY’S COMPANY

	 
	 
	 

	 
	 
	 

	/s/ Stephen E. Hare
	 
	/s/ R. Scott Toop

	STEPHEN E. HARE
	 
	Name:   R. Scott Toop

	 
	 
	Title:   SVP, General Counsel & Secretary

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