Wendy's 2012 Annual Report Download - page 29
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THI has asserted under the tax sharing agreement, to Wendy’s under the master separation agreement between
Wendy’s and THI that was executed contemporaneously with the tax sharing agreement. The dispute resolution
provision of the master separation agreement calls for good faith negotiations between the parties, followed by
non-binding mediation. Either party can bring suit if no resolution is reached following mediation. The parties are
still in discussions but it no longer appears likely that a resolution will be reached without the involvement of a neutral
third party. The parties have agreed on a mediator and a mediation date. We cannot estimate a range of possible loss,
if any, for this matter at this time since, among other things, it is still in a preliminary stage, significant factual and
legal issues are unresolved, no mediation sessions have been held, and the mediation will be non-binding. If no agreed
resolution is reached, the matter would be resolved either by litigation or binding mandatory arbitration, in which
case various motions would be submitted and discovery would occur. If no agreed resolution is reached, Wendy’s
intends to vigorously assert its claim and defend against the THI claims.
Item 4. Mine Safety Disclosures.
Not applicable.
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