Exhibit 10.23

FRIENDLY ICE CREAM CORPORATION

BOARD OF DIRECTORS COMPENSATION

The non-employee directors of the Company  are compensated through a combination
of cash and equity-based compensation.

The following is a summary of the cash compensation paid to the Company’s
non-employee directors.

A.  Annual Retainer

 

Directors

 

 

 

$

30,000

 

 

Chairman

 

Additional

 

$

100,000

 

 

 

 

 

 

 

 

 

B.  Regularly Scheduled Board of
Directors
Meetings

 

Directors

 

 

 

$

1,500

 

 

 

 

 

 

 

 

 

C.  Regularly Scheduled
Committee
Meetings

 

Members

 

 

 

$

1,000

 

 

 

 

 

 

 

 

 

D.  Special
Teleconference
Meetings

 

Directors

 

 

 

$

750

 

 

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A.            Each director, including the Chairman, of the Company receives a
fee of $2,500 per month.
Mr. Donald Smith receives additional compensation of $8,333.34 per month for
serving as Chairman of the Board.

B.            Each director of the Company receives $1,500, plus expenses, for
each regularly scheduled meeting of the Board of Directors attended.

C.            Each member of the Audit Committee, Compensation Committee and
Nominating and Corporate Governance Committee receives a fee of $1,000, plus
expenses, for each regularly scheduled committee meeting attended. Each member
of the Audit Committee receives a fee of $1,500, plus expenses, for attendance
at the annual Audit Committee meeting.

D.            Each director receives a fee of $750 for participating in special
teleconference meetings.

In addition to cash compensation, on annual basis, the non-employee directors
are awarded stock options and/or restricted stock units under the Company’s
equity incentive plans.

 

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