Wendy's International (WEN)

Collateralized Debt Obligations

The Company has variable interests in each of the CDOs it manages due to the provisions of the underlying management agreements and the ownership of preferred shares in certain of the CDOs (see Note 5). The preferred shares of CDOs represent less than 5% of each of the CDOs’ total debt and equity as of December 31, 2006. In addition, the Company has determined that it does not have the majority of expected losses or gains of the respective CDOs and is not the primary beneficiary. The Company’s maximum loss exposure relating to these variable interests is comprised of its investment balance of $14,903,000 (see Note 5), partially offset by the non-recourse notes payable to financial institutions of $4,564,000 (see Note 10) financing these investments, and the potential loss of future management fees.

Collateralized Debt Obligations

       The Company has variable interests in each of the CDOs it manages due to the provision of the underlying management agreements and the ownership of preferred shares in certain of the CDOs (see Note 5). The preferred shares of CDOs represent less than 5% of each of the CDOs' total debt and equity as of January 1, 2006. In addition, the Company has determined that it does not have the majority of expected losses or gains of the respective CDOs. The Company may be considered to have significant variable interests in the CDOs in which the Company manages and owns an equity interest in the CDOs, but is not the primary beneficiary. The Company's maximum loss exposure relating to these variable interests is comprised of its investment balance of $20,993,000 (see Note 5), partially offset by the non-recourse notes payable to financial institutions of $8,036,000 (see Note 10) financing these investments, and the potential loss of future management fees.