Document:

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                                  EXHIBIT 10.19

                              FORBEARANCE AGREEMENT

         THIS 'FORBEARANCE AGREEMENT (the "Agreement") is made this 21st day of
October, 1999, by and among M.I.E. HOSPITALITY, INC., a Pennsylvania corporation
("Borrower"), ARTHUR TREACHER'S, INC., a Utah corporation ("Treacher's") and
MAGEE INDUSTRIAL ENTERPRISES, INC., a Pennsylvania corporation (the "Lender").

REFERENCES TO CAPITALIZED TERMS USED HEREIN ARE SET FORTH IN SECTION 1 HEREOF.

                                   BACKGROUND

         A. In connection with the acquisition on or about November 27, 1996 of
the issued and outstanding shares of capital stock of Borrower by Treacher's,
Borrower executed and delivered a Promissory Note dated November 27, 1996, in
the original principal amount of $1,139,563 (the "Note") to the Lender.

         B. In order to secure the obligation to repay any liabilities and
obligations of Borrower to the Lender under the Note, reacher's, on or about
November 27, 1996, executed and delivered a Guaranty (the "Suretyship
Agreement"), pursuant to which Treacher's became unlimited surety to the Lender
for the obligations and liabilities of Borrower under the Note.

         C. The Borrower and Treacher's have defaulted under the terms of the
Note and Suretyship Agreement for, inter alia, failure to make the principal
payment due June 1, 1999 under the Loan Documents. The foregoing default is
hereinafter referred to as the "Existing Default".

         D. On or about June 25, 1999, Lender entered a judgment against
Borrower by confession in the Court of Common Pleas of Philadelphia County,
Pennsylvania in the amount of Nine Hundred Sixty-Four Thousand Two Hundred
Thirty-Six Dollars an&Forty-Four Cents ($964,236.44) in an action entitled Magee
Industrial Enterprises, Inc. v. M.I.E Hospitality, Inc., No. 003040 (the
"Judgment Against Borrower").

         E. On or about June 25, 1999, Lender entered a judgment against
Treacher's by confession in the Court of Common Pleas of Philadelphia County,
Pennsylvania in the amount of Nine Hundred Sixty-Four Thousand Two Hundred
Thirty-Six Dollars and Forty-Four Cents ($964,236.~) in action entitled Magee
Industrial Enterprises. Inc. v. Arthur Treacher's. Inc., No. 003035 (the
"Judgment Against Treacher's"). The Judgment Against Borrower and the Judgment
Against Treacher's are hereinafter collectively referred to as the "Judgments".

         F. Borrower and Treacher's have requested that Lender refrain from
exercising any rights available to it as a result of the existence of the
Existing Default and to refrain from

<PAGE>

executing upon a Judgment upon the covenant and agreement of Borrower and
Treacher's to make or cause to be made the payments described in this Agreement
and otherwise comply with the terms and provisions of the Loan Documents and the
terms hereof, and which Lender is willing to do pursuant to the terms and
conditions of this Agreement.

         NOW, THEREFORE, in consideration of foregoing premises and intending to
be legally bound hereby, 'the parties hereto agree as follows:

                                      TERMS

         1.       CAPITALIZED TERMS.  For purposes of this Agreement:

                  (a) "Lender Indebtedness" shall have the meaning set forth in
Section 5 below.

                  (b) "Code" means the Uniform Commercial Code as adopted in
Pennsylvania, as the same may be amended from time to time.

                  (c) "Collateral" means all tangible and intangible property of
Obligors, whether real or personal, pledged and/or delivered to Lender or in
which Lender has been granted a lien or security interest, as security for the
Note.

                  (d) "Forbearance Documents" means the Loan Documents, together
with this Agreement and all other documents executed in connection herewith
including but not limited to the documents listed in Section 7 of this
Agreement.

                  (e) "Loan Documents" means all documents, agreements,
certifications, resolutions, notes, surety and security agreements executed by
the Obligors and delivered to The Lender in connection with the transactions
referred to herein including, but not limited to the Note and the Suretyship
Agreement.

                  (f)      "Obligors" means the Borrower and Treacher's.

All other capitalized terms used herein shall have the meanings set forth in
this Agreement.

         2. CONFIRMATION OF BACKGROUND. Obligors hereby jointly and severally
ratify, confirm and acknowledge that the statements contained in the foregoing
Background are true and complete in all respects and that the Loan Documents are
valid, binding and in full force and effect as of the date hereof and fully
enforceable against Obligors and their respective assets in accordance with the
terms thereof. Treacher's further acknowledges that nothing contained in this
Agreement shall be deemed to impair, reduce or release in any manner whatsoever
any of its obligations as surety for the obligations of Borrower under the Loan
Documents.

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<PAGE>

         3. GENERAL ACKNOWLEDGMENTS. Obligors hereby acknowledge and agree as
follows:

                  (a) Borrower and Treacher's are currently in default of their
respective obligations under the Loan Documents as a result of the occurrence of
the Existing Default, and Obligors hereby fully and finally waive any further
notice or demands from Lender to Obligors in connection therewith;

                  (b) Neither this Agreement nor any other agreement entered in
connection herewith or pursuant to the terms hereof shall be deemed or construed
to be a compromise, satisfaction, reinstatement, accord and satisfaction,
novation or release of any of the Loan Documents, or any rights or obligations,
thereunder, or a waiver by Lender of any of its rights under the Loan Documents
or at law or in equity;

                  (c) Except as specifically provided herein, neither this
Agreement nor any other agreement executed in connection herewith or pursuant to
the terms hereof, nor any actions taken pursuant to this Agreement or such other
agreement shall be deemed to cure the Existing Default or any other events of
default which m~y exist under the Loan Documents or to be a waiver by the Lender
of the Existing Default or any other existing defaults or events of default
under the Loan Documents, or of any rights or remedies in connection therewith
or with respect thereto, it being the intention of the parties hereto that the
obligations of Obligors with respect to the Loan Documents are and shall remain
in full force and effect;

                  (d) All liens, security interests, pledges, assignments,
rights and remedies granted to the Lender in the Loan Documents are hereby
renewed, confirmed and continued, and shall also secure the performance by
Obligors of their respective obligations hereunder; and

                  (e) If at any time a payment or payments made by any Obligor
on any part of the Lender Indebtedness are subsequently invalidated, declared to
be fraudulent or preferential, and are set aside or are required to be repaid to
a trustee, receiver or any other person or entity under any bankruptcy act,
state or federal law, common law or equitable cause, then to the extent of such
payment or payments, the Lender Indebtedness intended to be satisfied shall be
revived and continued in full force and effect as if such payment or payments
had not been made.

         4. CHALLENGE TO ENFORCEMENT. Obligors acknowledge and agree that none
of them have any defense, set-off, counterclaim or challenge with respect to the
payment of any sums owing under the Loan Documents, or the enforcement of any of
the terms or conditions thereof, or to the validity or priority of any liens or
encumbrances granted or established therein.

         5. CONFIRMATION OF EXISTING INDEBTEDNESS. Obligors hereby confirm and
acknowledge that as of September 24, 1999, (a) the outstanding principal balance
under the Note is $911,650.40; and (b) the aggregate accrued and unpaid interest
due on the Note at' the Default Rate, as defined in the Note, is $75,059.25. The
foregoing sums, together with all accrued and unpaid interest thereon, future
advances, attorneys' fees and expenses and all other

                                        3

<PAGE>

costs and expenses due or to become due under the Forbearance Documents, shall
be collectively referred to herein as the "Lender Indebtedness".

                  Obligors hereby acknowledge and agree that all sums described
in this Section 5 are validly and duly owing to Lender.

         6. FORBEARANCE. Lender hereby agrees to forbear from exercising the
rights and remedies available to it against the Obligors as a result of the
Existing Default, until the earlier of (a) the occurrence of any default or
event of default (other than the Existing Default) under the Forbearance
Documents, (b) a breach of any of Obligors' obligations hereunder, or (c)
failure of compliance with any conditions precedent as set forth in Section 7
hereof.

         7. CONDITIONS PRECEDENT TO LENDER'S OBLIGATION TO FORBEAR. It shall be
a condition precedent to the Lender's obligation to forbear hereunder that
Lender shall have received the sum of $150,827.22 representing the payment of
principal and interest due under the Note on June 1, 1999 as follows:

                  (a) Lender shall have received the $60,500 security deposit
under the Lease Agreement dated May 15, 1979 between Borrower and Union Deposit
Corporation (the "Security Deposit"'); and

                  (b) Lender shall have received the sum of $90,327.22 from
Treacher's by wire transfer of immediately available funds on or before October
21, 1999.

         8. ADDITIONAL AGREEMENTS OF LENDER AND TREACHER'S.

                  (a) Provided that no event of default under the Forbearance
Documents, other than the Existing Default has occurred, Lender agrees to accept
common stock of Arthur Treacher's, Inc. (the "Common Stock") at an agreed
exchange price of $.60 per share in lieu of the cash payments of principal and
accrued interest due December 1, 1999 and June 1, 2000 under the Note, or
243,993 shares of Common Stock in lieu of the $146,395.60 principal and interest
payment due December 1, 1999 and 236,269 shares of Common Stock in lieu of the
$141,761.39 'principal and interest payment due June 1, 2000. In the event of a
stock dividend, stock split, or other subdivision, reclassification or
combination of the Common Stock, the exchange price and number of shares of
Common Stock to be received shall be adjusted proportionately. If Treacher's
registers any shares of Common Stock under the Federal Securities Law,
Treacher's shall include in its registration statement all shares of Common
Stock held by Lender at no expense to Lender.

                  (b) Lender acknowledges that there are various substantial
risks attendant to Treacher's business and it has considered the risks
associated with the purchase and ownership of the Common Stock. No
representations or warranties have been made concerning the success of the
business or the potential profit, if any, of an investment in Leacher's. Lender
has had an opportunity to receive from Treacher's material financial and other
information about the

                                        4

<PAGE>

Common Stock and Treacher's and Treacher's has given Lender an opportunity to
ask questions about and receive answers respecting the business of Treacher's
and its financial condition. As an owner of Series B Preferred Stock of
Treacher's, Lender has knowledge of its business and industry and is able to
evaluate the merits and risks of ownership of Common Stock.

                  (c) Lender acknowledges the illiquidity of the Common Stock.
Lender acknowledges tat an investment in the Common Stock is speculative and
involves a risk of loss of the entire investment and no assurance can be given
of any income from such investment. Lender further acknowledges that, due to the
fact that the Common Stock will not be registered under the 1933 Act, or state
securities laws, transfers of the Common Stock have been significantly limited.
Therefore, Lender does not expect to be able to transfer the Common Stock.
Lender acknowledges that Lender must bear the economic risk of the investment
for an indefinite period of time and can afford a complete loss of the
investment and Lender acknowledges that the Common Stock cannot be transferred
without registration or available exemption from registration under applicable
securities laws. Furthermore, Lender understands that (a) the Common Stock will
bear an appropriate legend restricting the sale, hypothecation or other transfer
of the Common Stock, and (1,) the transfer records of Treacher's will contain
appropriate notations of such transfer restrictions.

                  (d) Lender warrants and represents to Treacher's that it is
acquiring the Common Stock for investment purposes, solely for its own account
and not for fractionalization or with a view toward distribution and has no
contract, agreement, arrangement or undertaking with any person to sell,
transfer or pledge the Common Stock.

         9.  SURVIVAL OF OBLIGATIONS OF ALL OTHER LOAN DOCUMENTS. All of the
terms, conditions, representations, warranties and covenants of the Loan
Documents, to the extent not inconsistent with the terms hereof, shall remain in
full force and effect unaffected by this Forbearance Agreement. It is intended
that the Loan Documents and this Agreement shall be interpreted in an expansive
way so as to increase the rights, remedies and privileges available to the
Lender and not to diminish them. If any provision of this Agreement or the Loan
Documents is held to be unenforceable, such unenforceability shall not adversely
affect any of the other terms or conditions of the Loan Documents and this
Agreement.

         10. ADDITIONAL DOCUMENTS AND FUTURE ACTIONS. Obligors will, at their
sole cost, take such actions and provide Lender from time to time with such
agreements, financing statements and additional instruments, documents or
information as Lender may in its discretion deem necessary or advisable to
perfect, protect, maintain or enforce the security interests in the Collateral,
to permit Lender to protect or enforce its interest in the Collateral, or to
carry out the terms of the Forbearance Documents. Obligors hereby authorize and
appoint Lender as their attorney-in-fact, with full power of substitution, to
take such actions as Lender may deem advisable to protect the Collateral and its
interests thereon and its rights hereunder, to execute on Obligors' behalf and
file at Obligors' expense financing statements, and amendments thereto, in those
public offices deemed necessary or appropriate by Lender to establish, maintain
and protect a continuously perfected security interest in the Collateral, and to
execute on

                                        5

<PAGE>

Obligors' behalf such other documents and notices as Lender may deem advisable
to protect the Collateral and its interests therein and its rights hereunder.
Such power being coupled with an interest is irrevocable. Obligors irrevocably
authorize the filing of a carbon, photographic or other copy of this Agreement,
or of a financing statement, as a financing statement and agree that such filing
is sufficient as a financing statement.

         11. REPRESENTATIONS AND WARRANTIES. In consideration of the forbearance
extended herein by Lender, Obligors hereby represent and warrant, as applicable,
which representations and warranties shall survive until all Lender Indebtedness
and all other obligations of'the Obligors to Lender are paid and satisfied in
full, as follows:

                  (a) All representations and warranties of Obligors set forth
in the Loan Documents are true and complete in all material respects as of the
date hereof.

                  (b) No condition or event exists or has occurred which would
constitute an event of default under the Loan Documents (or would, upon the
giving of notice or the passage of time, or both constitute an event of default)
other than the Existing Default.

                  (c) The execution and delivery of this Agreement by Obligors
and all documents and agreements to be executed and delivered pursuant to the
terms hereof;

                  (i)   has been duly authorized by all requisite corporate
action by Borrower and Treacher's;

                  (ii)  will not conflict with or result in the breach of or
constitute a default (upon the passage of time, delivery of notice or both)
under the Articles of Incorporation or By-Laws of Borrower or Treacher's or any
applicable statute, law, rule, regulation or ordinance or any indenture,
mortgage, loan or other document or agreement to which any Obligor is a party or
by which any of them is bound or affected; or

                  (iii) will not result in the creation or imposition of any
lien, charge or encumbrance of any nature whatsoever upon any of the property or
assets of any Obligor, except liens in favor of the Lender or as permitted
hereunder or under the Loan Documents.

         12. CERTAIN FEES, COSTS, EXPENSES AND EXPENDITURES. Obligors will pay
all of the Lender's expenses in connection with the review, preparation,
negotiation, documentation and closing of this Agreement and the consummation of
the transactions contemplated hereunder, including without limitation, fees,
disbursements, expenses, appraisal costs and fees and expenses of counsel
retained by Lender and all fees related to filings, recording of documents and
searches, whether or not the transactions contemplated hereunder are
consummated. Nothing contained herein shall limit in any manner whatsoever
Lender's right to reimbursement under any of the Forbearance Documents.

                                        6

<PAGE>

         13. DEFAULTS.  Occurrence of any one or more of the following shall
constitute a default hereunder and under each of the Loan Documents:

                  (a) Any default or event of default under any of the
Forbearance Documents, or any event which, with the giving of notice or passage
of time or both, would constitute a default or event of default hereunder or
thereunder; or

                  (b) The failure of any Obligor to comply with the terms of
this Agreement.

         Notwithstanding the foregoing, in no event shall the Existing Default
constitute a default hereunder.

         14. REMEDIES. Upon the occurrence of an event of default hereunder, at
the option of Lender, upon the expiration or earlier termination of the
forbearance period provided herein, and without'further notice or demand, which
notice and demand is expressly waived by Obligors, (a) the entire outstanding
Lender Indebtedness shall be immediately due and payable; and/or (b) Lender may
(i) terminate its obligation to forbear hereunder; and (ii) exercise each and
every right and remedy under the Forbearance Documents, at law, in equity or
otherwise.

         15. RELEASE AND INDEMNIFICATION. In order to induce Lender to enter
into this Agreement, Obligors hereby agree as follows:

                  (a) Release. Obligors hereby fully, finally and forever
acquit, quitclaim, release and discharge Lender and its officers, directors,
employees, agents, successors and assigns of and from any and all obligations,
claims, liabilities, damages, demands, debts, liens, deficiencies or cause or
causes of action to, of or for the benefit (whether directly or indirectly) of
Obligors, at law or in equity, known or unknown, contingent or otherwise,
whether asserted or unasserted, whether now known or hereafter discovered,
whether statutory, in contract or in tort, as well as any other kind or
character of action now held, owned or possessed (whether directly or
indirectly) by Obligors on account of, arising out of, related to or concerning,
whether directly or indirectly, proximately or remotely (i) the negotiation,
review, preparation or documentation of the Loan Documents or Forbearance
Documents, (ii) the administration of the obligations evidenced by the
Forbearance Documents; (iii) the enforcement, protection or preservation of
Lender's rights under the Forbearance Documents, and/or (iv) any action or
inaction by Lender in connection with any such documents, instruments and
agreements (the "Released Claims"), from the beginning of the world to the date
hereof.

                  (b) Covenant Not to Litigate. In addition to the release
contained in Subsection 15(a) above, and not in limitation thereof, Obligors
hereby agree never to prosecute, nor voluntarily aid in the prosecution of, any
action or proceeding relating to the Released Claims, whether by claim,
counterclaim or otherwise.

         16.      NO COURSE OF DEALING.

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                  (a) Future Forbearance.  Nothing contained herein shall be
deemed to obligate Lender to enter into any other forbearance agreements or to
waive any Events of Default.

         17. COMMUNICATIONS AND NOTICES. All notices, requests and other
communications made or given in connection with this Agreement or under the Loan
Documents shall be in writing and, unless receipt is stated herein to be
required, shall be deemed to have been validly given if delivered personally to
the individual or division or department to whose attention notices to a parry
are to be addressed, or by private cagier, telecopy (with original forwarded by
first class mail), or registered or certified mail, return receipt requested, in
all cases with postage prepaid, addressed as follows, until some other address
(or individual or division or department for attention) shall have been
designated by notice given by one party to the other:

                  To Borrower or Treacher's:
                  M.I.E.   Hospitality, Inc.
                  7400 Baymeadows Way, Suite 300
                  Jacksonville, Florida 32256
                  Attention:  William F. Saculla
                  Telecopy Number: 904-739-2500

         With a copy of all notices and communications to Borrower or Treacher's
         to:
                  McLaughlin & Stern, LLP
                  250 Madison Avenue, 18th Floor
                  New York, New York 10016
                  Attention:  Steven W. Schuster, Esquire
                  Telecopy Number: 212-448-0066

         To Lender:
                  Magee Industrial Enterprises. Inc.
                  480 W. 5th Street
                  Bloomsburg, Pennsylvania 17815
                  Attention:  Mr. Harry M. Katerman
                  Telecopy Number: 570-784-5222

         With a copy to:
                  White and Williams LLP
                  1800 One Liberty Place
                  Philadelphia, Pennsylvania 19103-7395
                  Attention:  Gary P. Biehn, Esquire
                  Telecopy Number; 215-864-7123

         18. WAIVERS. In connection with any proceedings hereunder or in
connection with any of the Lender Indebtedness, including without limitation any
action by Lender in replevin, foreclosure or other court process or in
connection with any other action related to the Lender Indebtedness or the
transactions contemplated hereunder, each Obligor waives:

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                  (a) all errors, defects and imperfections in such
proceedings;

                  (b) all benefits under any present or future laws exempting
any property, real or personal, or any part of any proceeds thereof from
attachment, levy or sale under execution, or providing for any stay of execution
to be issued on any judgment recovered in connection with the Lender
Indebtedness or in any replevin or foreclosure proceeding, or otherwise
providing for any valuation, appraisal or exemption;

                  (c) all rights to inquisition on any real estate, which real
estate may be levied upon pursuant to a judgment obtained in connection with any
of the Lender Indebtedness and sold upon any writ of execution issued thereon in
whole or in part, in any order desired by Lender;

                  (d) presentment for payment, demand, notice of demand,  notice
of non payment, protest and notice of protest of any of the Lender Indebtedness;

                  (e) any requirement for bonds, security or sureties required
by statute, court rule or otherwise;

                  (f) any demand for possession of any collateral prior to
commencement of any Suit;

                  (g) any right to require or participate in the marshaling of
any Obligor's property;

                  (h) all benefits under present and future laws permitting
termination of any Surety's obligations by delivery of notice or otherwise; and

                  (i) all rights to claim or recover attorney's fees and costs
in the event that such Obligor is successful in any action to remove, suspend or
enforce a judgment entered by confession.

         19. COMMERCIAL REASONABLENESS. Obligors further agree that any
disposition of collateral by the Lender at any public auction sale performed by
a duly licensed auctioneer, regularly engaged in sale by auction, is a sale in
conformity with reasonably commercial practices, and any disposition of
collateral at such auction sale is a commercially reasonable disposition in
accordance with Section 9-507 of the Code.

         20. EXCLUSIVE JURISDICTION.  Obligors hereby consent to the exclusive
jurisdiction of any state or federal court located within the Commonwealth of
Pennsylvania, and irrevocably agree that, subject to the Lender's election, all
actions or proceedings relating to the Forbearance Documents or the transactions
contemplated hereunder shall be litigated in such courts, and Obligors waive any
objection which they may have based on improper venue or forum non conveniens to
the conduct of any proceeding in any such court and waive personal service of
any and all process upon them, and consent that all such service of process be
made by

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mail or messenger directed to it them at the address set forth in Section 17 for
Obligors. Nothing contained in this Section 20 shall affect the right of Lender
to serve legal process in any other manner permitted by law or affect the right
of Lender to bring any action or proceeding against any Obligor or their
respective property in the courts of any other jurisdiction.

         21. CONSENT TO RELIEF FROM THE AUTOMATIC STAY. Obligors hereby agree
that if, during the forbearance term provided herein, any Obligor shall (i)
file, or be the subject of, any bankruptcy petition filed with any bankruptcy
court of competent jurisdiction, (ii) be the subject of any order for relief
issued under such Title 11 of the U.S. Code, as amended, (iii) file or be the
subject of any petition seeking any reorganization; arrangement, composition,
readjustment, liquidation, dissolution or similar relief for debtors, (iv) seek,
consent to or acquiesce in the appointment of any trustee, receiver, conservator
or liquidator, (v) be the subject of any order, judgment or decree filed against
any Obligor for any reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under any present or future federal
or state act or law relating to bankruptcy, insolvency, or other relief for
debtors, the Lender immediately, and without further action by the Lender, shall
be entitled to relief from any automatic stay imposed by section 362 of Title 11
of the U.S. Code, as amended, or from any other stay or suspension of remedies
imposed in any other manner with respect to the exercise of any rights and
remedies by the Lender against its collateral and any proceeds thereof which
otherwise is available to the Lender under Article 9 of the Code or other
applicable state law of any jurisdiction in which any collateral or proceeds may
now or hereafter be located. Obligors hereby irrevocably and unconditionally
waive their right to file any Answer, Objection or Response to any such relief
requested by the Lender and consent to such immediate relief and agrees to take
any and all actions necessary or required of it to entitle the Lender to the
relief provided in this Section 21.

         22. CONFESSION OF JUDGMENT. OBLIGORS HEREBY AUTHORIZE AND EMPOWER ANY
ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF
PENNSYLVANIA, OR IN ANY OTHER JURISDICTION WHICH PERMITS THE ENTRY OF JUDGMENT
BY CONFESSION, TO APPEAR FOR OBLIGORS AT ANY TIME AFTER THE OCCURRENCE OF AN
EVENT OF DEFAULT HEREUNDER OR UNDER ANY OF THE FORBEARANCE DOCUMENTS IN ANY
ACTION BROUGHT AGAINST OBLIGORS HEREUNDER OR UNDER THE FORBEARANCE DOCUMENTS AT
THE SUIT OF LENDER, WITH OR WITHOUT COMPLAINT OR DECLARATION FILED, WITHOUT STAY
OF EXECUTION, AS OF ANY TERM OR TIME, AND THEREIN TO CONFESS OR ENTER JUDGMENT
AGAINST OBLIGORS FOR THE ENTIRE LENDER INDEBTEDNESS TOGETHER WITH AN ATTORNEY'S
COLLECTION COMMISSION OF FIFTEEN PERCENT (15%) OF THE AGGREGATE AMOUNT OF THE
FOREGOING SUMS, BUT IN NO EVENT LESS THAN $5,000.00; AND FOR SO DOING THIS
AGREEMENT OR A COPY HEREOF VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT.
THE AUTHORITY GRANTED HEREIN TO

                                       10

<PAGE>

CONFESS JUDGMENT SHALL NOT BE EXHAUSTED BY ANY EXERCISE THEREOF BUT SHALL
CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL THE
LENDER INDEBTEDNESS.

         23. TIME OF ESSENCE.  Time is of the essence of this Agreement.

         24. INCONSISTENCIES. To the extent of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of the Loan
Documents, the terms and conditions of this Agreement shall prevail. All terms
and conditions of the Loan Documents not inconsistent herewith shall remain in
full force and effect and tare hereby ratified and confirmed by Obligors.

         25. BINDING EFFECT.  This Agreement and all rights and powers granted
hereby will bind and inure to the benefit of the parties hereto and their
respective permitted successors and assigns.

         26. SEVERABILITY.  The provisions of this Agreement and all other
Forbearance Documents are deemed to be severable, and the invalidity or
unenforceability of any provision shall not affect or impair the remaining
provisions which shall continue in full force and effect.

         27. NO THIRD PARTY BENEFICIARIES. The rights and benefits of this
Agreement and the Loan Documents shall not inure to the benefit of any third
party.

         28. MODIFICATIONS.  No modification of this Agreement or any of the
Loan Documents shall be binding or enforceable unless in writing and signed by
or on behalf of the party against whom enforcement is sought.

         29. HOLIDAYS.  If the day provided herein for the payment of any amount
or the taking of any action falls on a Saturday, Sunday or public holiday at the
place for payment or action, then the due date for such payment or action will
be the next succeeding business day.

         30. LAW GOVERNING.  This Agreement has been made, executed and
delivered in the Commonwealth of Pennsylvania and will be construed in
accordance with and governed by the laws of such Commonwealth.

         31. EXHIBITS AND SCHEDULES.  All exhibits and schedules attached hereto
are hereby made a part of this Agreement.

         32. HEADINGS. The headings of the Articles, Sections, paragraphs and
clauses of this Agreement are inserted for convenience only and shall not be
deemed to constitute a part of this Agreement.

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<PAGE>

         33. COUNTERPARTS.  This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

         34. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
among the parties hereto concerning the subject matter set forth herein and
supersedes all prior or contemporaneous oral and/or written agreements and
representations not contained herein concerning the subject mailer of this
Agreement.

         35. JOINT AND SEVERAL LIABILITY.  Obligors hereby acknowledge and
confirm that all agreements, covenants, conditions and provisions of this
Agreement are and shall be the joint and several obligations of each Obligor.

         36. WAIVER OF RIGHT TO TRIAL BY JURY. OBLIGORS AND LENDER WAIVE ANY
RIGHT TO TRIAL BY JURY ON ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a)
ARISING UNDER THIS AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT REFERRED TO
HEREIN OR DELIVERED IN CONNECTION HEREWITH, OR (b) IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF ANY OBLIGOR WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT REFERRED TO HEREIN OR DELIVERED IN
CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. OBLIGORS AND LENDER AGREE AND
CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF OBLIGORS AND LENDER TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY. OBLIGORS ACKNOWLEDGE THAT THEY HAVE HAD AN OPPORTUNITY TO CONSULT
WITH COUNSEL REGARDING THIS AGREEMENT AND WITH REGARD TO SECTION IN PARTICULAR
AND THAT THEY FULLY UNDERSTAND ITS TERMS, CONTENT AND EFFECT, AND THAT THEY
VOLUNTARILY AND KNOWINGLY AGREE TO THE TERMS OF THIS SECTION.

         37. RESULTS OF NEGOTIATION. Obligors acknowledge that they have been
represented by counsel in connection with the execution and delivery of this
Agreement and that the terms and conditions of this Agreement are the result of
negotiation between the parties hereto. Obligors further acknowledge that they
have knowingly (a) waived their right to (i) be heard prior to the entry of a
judgment by confession and understand that, upon such entry, such judgment shall
become a lien on all real property of Obligors in the county where such judgment
is entered; (ii) trial by jury; and (iii) certain other fights as set forth in
detail in Sections 20 and 21 above, and (b) consented to relief from the
automatic stay. Obligors acknowledge that such

                                       12

<PAGE>

waivers and consents constitute a material inducement for Lender to enter into
this Agreement and they have been fully

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed the day and year first above written.

Attest:                                  M.I.E. HOSPITALITY, INC.

                                         By:
--------------------------------                --------------------------------
Name:                                    Name:
      --------------------------                --------------------------------
Title:                                   Title:
         -----------------------                --------------------------------

Attest:                                  ARTHUR TREACHER'S, INC.

                                         By:
--------------------------------                --------------------------------
Name:                                    Name:
      --------------------------                --------------------------------
Title:                                   Title:
         -----------------------                --------------------------------

Attest:                                  MAGEE INDUSTRIAL ENTERPRISES, INC.

                                         By:
--------------------------------                --------------------------------
Name:                                    Name:
      --------------------------                --------------------------------
Title:                                   Title:
         -----------------------                --------------------------------

                                       13<PAGE>

                                  EXHIBIT 10.20

                          ARTHUR TREACHER'S/MIAMI SUBS
                               DEVELOPMENT PROGRAM
                                MASTER AGREEMENT

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                               Page
<S>     <C>                                                                                                     <C>

1.       The Combo Unit...........................................................................................1

2.       Term.....................................................................................................2

3.       Combo Unit Site and Applicant Approval...................................................................2

4.       Individual Franchise Agreement for Each Combo Unit.......................................................3

5.       Construction/Conversion Plans for Combo Unit.............................................................3

6.       Combo Unit Operations....................................................................................4

7.       Training.................................................................................................5

8.       Payment of Arthur Treacher's Initial Franchise Fee and Royalty Fee.......................................6

9.       Advertising and Marketing................................................................................7

10.      Franchise Agreement Modification.........................................................................8

11.      Test Units...............................................................................................8

12.      Combo Program Exclusivity................................................................................8

13.      Franchisee Default.......................................................................................8

14.      Franchise Transfer Restrictions..........................................................................9

15.      No Assignment............................................................................................9

16.      Corporate Authority.....................................................................................10

17.      Indemnification.........................................................................................10

18.      Default and Termination.................................................................................10

19.      Bankruptcy..............................................................................................11

20.      Trademarks..............................................................................................11

21.      Notices.................................................................................................12

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>     <C>                                                                                                     <C>
22.      Complete Agreement and Disclosures......................................................................12

23.      Good Faith and Cooperation..............................................................................12

24.      Mediation...............................................................................................12

25.      Mutual Waiver of a Trial by Jury........................................................................13

26.      Severability............................................................................................13

27.      Headings................................................................................................13

28.      Counterparts............................................................................................13

29.      Applicable Law..........................................................................................13

30.      Attorneys' Fees.........................................................................................13

31.      Confidentiality.........................................................................................13

32.      Relationship of the Parties.............................................................................13

33.      Waiver..................................................................................................14

34.      Injunctive Relief.......................................................................................14

35.      Indemnification.........................................................................................14
</TABLE>

<PAGE>

                          ARTHUR TREACHER'S/MIAMI SUBS
                               DEVELOPMENT PROGRAM
                                MASTER AGREEMENT

         THIS ARTHUR TREACHER'S/MIAMI SUBS COMBO DEVELOPMENT PROGRAM MASTER
AGREEMENT ("Agreement") is entered into this 13th day of August, 1998 by and
between ARTHUR TREACHER'S, Inc., a Utah corporation ("Arthur Treacher's"), with
its principal place of business at 7400 Baymeadows Way, Suite 300, Jacksonville,
FL 32256, and MIAMI SUBS USA, INC., a Florida corporation ("Miami Subs "), with
its principal place of business at 6300 NW 31st Avenue, Ft. Lauderdale, FL
33309.

                                    RECITALS

         A. Arthur Treacher's is engaged in the business of offering and
awarding franchises for the operation of Arthur Trencher's restaurants,
featuring seafood.

         B. Miami Subs is in the business of granting single unit franchises and
multiple unit franchise development rights for the operation of restaurants
known as "Miami Subs" and "Miami Subs Grill" (collectively "Restaurants"),
featuring hot and cold submarine and other sandwiches, gyros and other Greek
specialties, hamburgers. salads, and other foods.

         C. Miami Subs is a wholly-owned subsidiary of Miami Subs Corporation, a
Florida corporation.

         D. Arthur Trencher's and Miami Subs desire to offer certain Arthur
Trencher's products for sale in existing and future developed Miami Subs
Restaurants ("Combo Units") on the terms and conditions as set forth in this
Agreement. The parties intend for this definitive Agreement to supersede the
terms of any previous agreements with the exception of the test agreements, a
copy of which is attached hereto as Exhibit A.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein. Arthur Trencher's and Miami Subs do hereby agree as follows:

         1. THE COMBO UNIT. Pursuant to the terms of this Agreement. Arthur
Treacher's agrees to enter into Franchise Agreements with approved Miami Subs
franchisees (or wit Miami Subs for corporate owned Restaurants) permitting the
sale of approved Arthur Treacher's products at existing or new Restaurant
locations.

<PAGE>

         2. TERM.

            2.1 Term. Unless sooner terminated or modified in accordance with
the provisions herein, this Agreement shall remain in existence for as long as
Miami Subs Units have existing franchise agreements with Arthur Treacher's.

            2.2 Continuing Rights. The termination or expiration of this
Agreement shall not affect the term of any Arthur Treacher's Franchise
Agreements awarded by Arthur Treacher's for Combo Units developed (or under
development or approved for development) hereunder prior to or during the term
of this Agreement.

         3. COMBO UNIT SITE AND APPLICANT APPROVAL.

            3.1 Site and Franchisee Submission. Miami Subs shall submit to
Arthur Treacher's prospective site addresses. prospective franchisee names. and
franchisee's applications. Any proposal requiring Arthur Treacher's approval,
shall be decided by Arthur Treacher's and communicated to Miami Subs within
fifteen (15) days of Arthur Treacher's receipt of the Information. Any approval
not received within the fifteen (15) day approval period shall be deemed
automatically approved.

            3.2 Existing Miami Subs Franchisees' Sites. Any and all existing
Miami Subs franchise sites that have been approved by Miami Subs and the
existing franchisee shall both automatically be approved for a Combo Unit by
Arthur Treacher's unless at the time of the proposed addition of Arthur
Treacher's there exists an Arthur Treacher's restaurant within three (3) miles
of the proposed Combo Unit or unless there is an existing Arthur Treacher's
restaurant with a franchise agreement that provides for a larger protected
territory than three (3) miles, in which case, the existing franchise agreement
shall control.

            3.3 New Sites/New Franchisees Approved by Miami Subs. Any and all
new Miami Subs franchisees or new sites approved by Miami Subs shall both be
approved by Arthur Treacher's using criteria that shall be no more restrictive
than Miami Subs then current standards. Approval shall not be unreasonably with
held. In addition to the prospective franchisee's names and site addresses for
new franchisees, Miami Subs shall submit to Arthur Treacher's background checks
and any other relevant information (the "Information") obtained by Miami Subs
relating to the prospective franchisee.

            3.4 Applicant Documentation by Arthur Treacher's. Upon submission of
the prospective franchisee's name to Arthur Treacher's by Miami Subs. Miami Subs
shall disclose the prospective Combo Unit applicant with the then current Arthur
Treacher's Offering Circular. The Combo Unit applicant shalt be required to
complete and submit an Arthur Treacher's Franchise Applicant form and other
reasonably required information to Arthur Treacher's.

                                        5

<PAGE>

            3.5 Combo Units Operated by Miami Subs. Arthur Treacher's agrees to
award Arthur Treacher's franchises to Miami Subs for Combo Unit locations,
provided that such Combo unit locations shall be operated as company Restaurants
by Miami Subs and there is not an existing Arthur Treacher's restaurant within
three (3) miles of the proposed Combo Unit or there is not an existing Arthur
Treacher's restaurant with a franchise agreement that provides for a larger
protected territory than three (3) miles, in which case, the existing franchise
agreement shall control. The panics shall enter into a mutually acceptable
Master Franchise Agreement for all Combo Units that are operated by Miami Subs.

         4. INDIVIDUAL FRANCHISE AGREEMENT FOR EACH COMBO UNIT. The Arthur
Treacher's Franchise Agreement, along with other required franchise related
documents as disclosed in the Arthur Treacher's Offering Circular, must be fully
executed for each individual Combo Unit location before the Combo Unit is
opened. Arthur Treacher's agrees to amend its Franchise Agreement and other
related franchise documents used in connection with this Agreement in order to
reflect the terms of this Agreement and other terms agreed to by both parties.
The parties agree that Arthur Treacher's shall prepare and deliver all such
agreements and related documents (including those for Miami Subs franchisees) to
Miami Subs who will obtain appropriate signatures and collect the required fees
agreed to herein. Miami Subs shall then deliver the fully executed agreements
and all payments back to Arthur Treacher's as soon as reasonably possible after
the Combo Unit opening. It is understood that any and all Arthur Treacher's
Franchise Agreements for such Combo Units shall be independent of this
Agreement. The continued effectiveness of any such individual franchise
agreement shall not depend on the continued effectiveness of this Agreement. If
any conflict shall arise between this Agreement and any individual franchise
agreement, the latter shall have precedence and superiority over the former for
issues pertaining to Arthur Treacher's relationship with individual Miami Subs
franchisees. Conversely, the former shall have precedence and superiority over
the latter for issues pertaining to the Miami Subs/Arthur Treacher's
relationship. Arthur Treacher's acknowledges that the Arthur Treacher's
Franchise Agreement for the Combo Units shall be for a term that runs
concurrently with the Miami Subs Franchise Agreement for each Combo Unit and
terminates upon the termination of the Miami Subs Franchise Agreement. Arthur
Treacher's further acknowledges that Miami Subs has procured financing for the
addition of the Arthur Treacher's operation in each Combo Unit. and in
connection therewith, Arthur Treacher's agrees to modify its Franchise Agreement
to provide for the assignment of the Franchise Agreement to the respective
lender.

         5. CONSTRUCTION/CONVERSION PLANS FOR COMBO UNIT. Miami Subs and Arthur
Treacher's shall jointly agree on standard development/conversion guidelines,
necessary' equipment. menu board layout. and any other significant aspects of
the construction or conversion of Miami Subs Restaurants to incorporate the sale
of Arthur Treacher's products. Miami Subs will use reasonable best efforts to
insure that units are convened according to these general guidelines. The Combo
Unit applicant shall pay all costs and expenses necessary to construct and
incorporate Arthur Trencher's into the Restaurant. Nothing herein shall imply
that either Arthur Treacher's or Miami Subs shall be required to

                                        6

<PAGE>

estimate or guarantee the expenses of the Combo Unit application or to perform
any act required to be performed by the Combo Unit applicant. The Combo Unit
applicant performing the construction shall procure and maintain all licenses
and permits, and all required landlord or other approvals necessary for the
construction, modification and proposed operations. Whenever a Combo Unit cannot
be developed according to the general guidelines. Miami Subs reserves the right
to modify the plans in their discretion. However, whenever there are material
deviations from the general guidelines, Miami Subs will provide Arthur
Treacher's with information and plans as to the material changes, and Arthur
Treacher's will have the right to approve the changes. Such approval will not be
unreasonably withheld. Combo Units may purchase their equipment from any source,
so long as such equipment meets Arthur Treacher's required specifications.

         6. COMBO UNIT OPERATIONS.

            6.1 Dual Obligations of Operator. Except for Combo Units operated by
Miami Subs, the parties acknowledge that the Combo Unit operators will be the
franchisee of both parties. The Combo Unit operator as an Arthur Treacher's
franchisee shall be responsible for the sale of approved Arthur Treacher's
products from and the operation of the Combo Unit location in compliance with
the terms of the individual Arthur Treacher's Franchise Agreement and the
standards and requirements of the Arthur Treacher's system. Correspondingly,
Miami Subs or the Miami Subs franchisee shall be responsible for the sale of
Miami Subs products from and the operation of the Restaurant. The Combo Unit
operator shall procure and maintain at its sole expense all licenses and permits
necessary for its operations.

            6.2 Obligations of Franchisors.

                A. Miami Subs and Arthur Treacher's shall each be responsible
for complying with the federal. state and local laws and regulations governing
their respective relationship with the Combo Units. In addition. Miami Subs and
Arthur Treacher's shall each be responsible for protecting and defending their
own trademark or tradenarne.

                B. Arthur Treacher's hereby delegates and assigns -- irrevocably
during the term of each Combo Unit Franchise Agreement with Arthur Treacher's
(or extension or renewal thereof) -- to Miami Subs and Miami Subs agrees to use
reasonable efforts and exercise due care to perform certain of its duties
("Delegated Duties") owed under individual Arthur Treacher's Franchise
Agreements which have been or will be executed between Arthur Treacher's and.
Combo Units owned and operated by Miami Subs franchisees. These Delegated Duties
are limited to the following: (a) initial and on going training, as detailed in
paragraph 8 of this Agreement. (b) operational monitoring and guidance in
accordance with Arthur Trencher's standard operations manual. including any
changes to the manual as agreed to from time to time by Arthur Treacher's and
Miami Subs. (c) architectural and construction supervision, as specified in
Paragraph 5.. and (d) marketing and advertising. Arthur Treacher's shall have
the right to inspect Combo Units and provide Miami Subs with feedback on Miami
Subs' performance of
                                                         7

<PAGE>

these Delegated Duties. If deficiencies are discovered by Arthur Treacher's,
Miami Subs and Arthur Treacher's shall use their best efforts to jointly solve
such problems as soon as reasonably possible. If such deficiencies are not
corrected to Arthur Treacher's reasonable satisfaction, then Arthur Treacher's
shall have the right to directly assist the franchise owner in correcting the
deficiency.

                All other duties and responsibilities of Arthur Treacher's
pursuant to its franchise agreements executed with Miami Subs franchisees, which
are not Delegated Duties, shall remain the sole duties of Arthur Treacher's.
Arthur Treacher's agrees to modify (through an Addendum acceptable to Miami
Subs) its Franchise Agreements executed with Miami Subs franchisees, to conform
to the terms agreed to in this Agreement. Arthur Treacher's and Miami Subs shall
concurrently provide each other with copies of all related formal notices issued
to the Combo Unit franchisees. Upon request, Miami Subs shall provide Arthur
Treacher's with copies of its inspection reports of the Combo Units.

            6.3 Approval of Products. It is intended that the only approved
seafood products to be offered at the Combo Units shall be Arthur Treacher's
seafood products approved pursuant to this Agreement. Miami Subs and Arthur
Treacher's will jointly agree on the Arthur Treacher's products to be offered
for sale in the Combo Units, and any proposed variations to the agreed upon
menu. In addition, Arthur Treacher's recognizes that Miami Subs Restaurants
purchase food and products through approved national distributors. Arthur
Treacher's will assist Miami Subs in arranging for all necessary products to be
distributed through Miami Subs approved distributors including instructing
Arthur Treacher's approved suppliers to sell directly to Miami Subs approved
distributors. In the event that Miami Subs' distributors distribute Arthur
Treacher's products to an unapproved Miami Subs franchisee, Miami Subs will take
whatever action is necessary and appropriate to have the distributor cease such
shipments.

         7. TRAINING.

            7.1 Arthur Treacher's Certification of Miami Subs Trainers. Arthur
Treacher's agrees to certify, and keep certified, no fewer than three (3) Miami
Subs operations/training employees as Arthur Treacher's Combo Trainers. Arthur
Treacher's will be responsible for the development of the training curriculum to
be utilized by these Combo Trainers. Arthur Treacher's agrees to keep the
designated Miami Subs Combo Trainers updated, on a periodic basis, with any
significant developments or modifications to the training methods or materials
that will be made available to the Combo Trainees. Arthur Treacher's retains the
rights and authority to modify the Arthur Treacher's training curriculum as it
deems necessary.

            7.2 Miami Subs' Instruction of Combo Unit Trainees. Each approved
Arthur Treacher's Combo Franchisee and/or its designated manager shell be
required to attend and successfully complete the Miami Subs training program.
which shall include the above referenced Arthur Treacher's curriculum. The
training will take place at locations as specified by Miami Subs, with sessions
also held at Combo Units approved by Miami Subs. The Franchisee

                                        8

<PAGE>

shall be solely responsible for all travel and training-related expenses for
itself and/or designated manager(s).

                Miami Subs, through its certified Combo Trainers, shall be
responsible for instructing Combo Unit Trainees in accordance with Arthur
Treacher's approved training curriculum. The Arthur Treacher's training
curriculum may be held separately or it may be incorporated into the regular
Miami Subs training sessions that are taking place.

                Arthur Treacher's training instructors shall be allowed, at
their own expense, to audit and observe these training sessions. As a result of
any audited sessions, Arthur Treacher's agrees to provide helpful feedback,
assessments and guidance directly to Miami Subs Combo Trainers who, in turn.
shall communicate any appropriate information directly to the Combo Trainees. If
significant training deficiencies are discovered by Arthur Treacher's, the
parties shall use their reasonable efforts to jointly solve such problems as
soon as practical.

            7.3 As requested by Miami Subs, Arthur Treacher's agrees to provide
employees to assist in the opening of each Combo Unit. The number of Arthur
Treacher s employees necessary for each opening shall be agreed by Miami Subs
and Arthur Treacher's.

         8. PAYMENT OF ARTHUR TREACHER'S INITIAL FRANCHISE FEE AND ROYALTY FEE.

            8.1 Initial Franchise Fees and Opening Costs. An initial franchise
fee associated with entering into an Arthur Treacher's Franchise Agreement under
this program shall be in an amount of Five Thousand Dollars ($5,000.00). Miami
Subs will collect the franchise fee from the Combo Unit franchisee and will
remit one-half of the fee collected (i.e. $2,500.00) to Arthur Treacher's within
15 days following collection. There shall be no separate franchise fee due to
Arthur Treacher's for Miami Subs company operated Combo Restaurants. however,
Miami Subs shall reimburse Arthur Treacher's for approved direct out of pocket
expenses incurred by Arthur Treacher's in participating in the unit opening. The
initial franchise fee shall only increase if jointly agreed upon.

            8.2 Royalty Fees. Combo Unit franchisees shall be required to pay to
Miami Subs a royalty of four percent (4%) of the Combo Unit's gross revenue (as
defined in the Miami Subs Franchise Agreement "Gross Revenue"). The Combo Unit
franchise shall not be required to pay a separate royalty to Arthur Treacher's.
After receipt of the 4% royalty fee. Miami Subs shall remit the applicable
portion of such fees collected, as specified below, to Arthur Treacher's on a
monthly basis within ten (10) days following the month that the fee was
collected. Miami Subs shall also provide Arthur Treacher's with an accounting,
on a monthly basis. of all sales at the Combo Unit. the amount of the fees
collected and uncollected, and the computation of the amount remitted to Arthur
Treacher's.

                                        9

<PAGE>

            8.3 Royalty Fees for Existing Restaurants. For existing Miami Subs
Restaurants, Miami Subs shall determine from independent information provided by
the franchisee (including sales tax reports, register tapes, etc. which will be
provided to Arthur Treacher's), the average monthly sales for the Restaurant for
the twelve (12) month period prior to the selling of Arthur Treacher's products
in the Restaurant (the "Base Sales Amount"). Should any Miami Subs Restaurant
have less than a twelve (12) month sales history but at least a six (6) month
sales history, then the Base Sales Amount shall be calculated from the average
monthly sales throughout the Restaurant's history of operation. Miami Subs shall
then remit to Arthur Treacher's following full collection of the entire royalty
fee from the franchisee for each month, a fee of two percent (2%) of the
existing franchised Restaurant's monthly net incremental sales over the Base
Sales Amount, with such amount not to exceed 2% of the amount of Arthur
Treacher's product sales (i.e. assuming that the Base Sales Amount is $80,000;
and Combo Unit monthly sales are $100,000 comprised of $75,000 for Miami Subs
and $25,000 for Arthur Treacher's, then Miami Subs would remit to Arthur
Treacher's from the total royalty fee paid, a fee of 2% of $20,000, or 2% of
that portion of sales that exceeds the Base Sales Amount, not to exceed the
actual Arthur Treacher's sales). For Miami Subs company operated restaurants,
the calculation for royalties shall be the same as for existing franchisee owned
and operated Restaurants except that the percentage shall be changed from two
percent (2%) to one and a half percent (1.5%).

            8.4 Newly Developed Restaurants Royalty Fees. For existing Miami
Subs franchisees who are opening a new restaurant site and new company operated
restaurants that incorporate Arthur Treacher's product sales in the Restaurant.
(i.e. units that do not have at least a six (6) month sales history prior to
implementing Arthur Treacher's products for sale in the Restaurant), then Miami
Subs will remit to Arthur Treacher's a fee of one and a half percent (1.5%) of
the total Arthur Treacher's Gross Revenue in the Restaurant on a monthly basis
within ten (10) days following the month that the entire royalty fee is
collected from the franchisee or in which the company-operated Restaurants
collect the revenues.

            8.5 New Franchisees Royalty Fees. For any prospective franchisee to
the Miami Subs System, whose principle(s) are not currently a franchisee with
the Miami Subs System, Miami Subs shall remit to Arthur Treacher's a royalty fee
in an amount to be determined by the mutual agreement of both Arthur Treacher's
and Miami Subs.

         9. ADVERTISING AND MARKETING. Both Miami Subs and Arthur Treacher's
agree to jointly and independently develop advertising and marketing strategies
for the Combo Units. Miami Subs shall have the right to develop advertising and
promotional material specifically and solely for use in Miami Subs Combo Units,
and will confer with and seek advise from Arthur Treacher's on the development
of such materials; however, Miami Subs need not acquire Arthur Treacher's
approval prior to the use of any marketing or advertising materials. For any
advertising or marketing promotion developed by one party but used in the other
parties' non-Combo Units, such cost incurred by the developing party shall be
shared on a pro-rata basis with the non- developing party. The Combo Units shall
not be required to pay a separate

                                      10

<PAGE>

advertising fee to Arthur Treacher's. However, Arthur Treacher's will make
available to all Combo Unit franchisees all marketing materials that are made
available to other Arthur Treacher's Restaurants. The pi-ice of these materials
shall not to exceed the cost charged other Arthur Treacher's
Restaurants/franchisees. The Combo Unit franchisee shall only be required to pay
to Miami Subs the advertising fees set forth in the Miami Subs Franchise
Agreement. and Miami Subs shall use such fees in its sole discretion.

                  Upon the development and operation of a sufficient number of
Combo Units in a designated market, Miami Subs shall use its best efforts to
cause its Combo Unit franchisees in such market to participate in a special
co-op marketing fund for the purpose of marketing and advertising the sale of
Arthur Treacher's products in the market.

         10. FRANCHISE AGREEMENT MODIFICATION. Neither Arthur Treacher's or
Miami Subs shall modify or amend the terms of its Franchise Agreement with a
Combo Unit franchisee in any way that would adversely affect the other parties
agreement with the franchisee, without the other parties' prior 'written
approval.

         11. TEST UNITS. There are currently three Miami Subs/Arthur Treacher's
test units which are operating under letter agreements (attached as Exhibit A
hereto). Upon termination or expiration of the test agreements, Arthur
Treacher's shall provide the owner/operator with the approved Arthur Treacher's
franchise agreement for use with this program. There will be no initial
franchise fee charged. Following execution of the Franchise Agreement, the terms
of this Agreement shall become effective.

         12. COMBO PROGRAM EXCLUSIVITY. Arthur Treacher's recognizes that Miami
Subs co-brands with other concepts (including Baskin-Robbins and Kenny Rogers)
and plans to expand this program to other co-branding partners. However, Miami
Subs agrees that during the term of this Agreement that it will not co-brand
with any other fast food concept that specializes primarily in seafood products
and Arthur Treacher's agrees that it will not co-brand or license its products
with any other company that competes as a fast-food restaurant in the n markets
of Florida, Georgia, North Carolina, South Carolina, Dallas/Fort Worth-Texas
ADI, Peru, Ecuador. or any other ADI (advertising area of dominant influence),
state or country in which Miami Subs develops a presence, unless approved by
Miami Subs. To maintain this exclusivity in North and South Carolina and the
Dallas/Ft. Worth markets, Miami Subs agrees to convert at least six (6) Miami
Subs Restaurants in the Dallas/Ft. Worth A.D.I. ("DFW") to Combo Units within
two (2) years from the date of this Agreement. At least three (3) of the six (6)
DEW Combo Units shall be converted within one (1) year from the date of this
Agreement. In addition, Miami Subs agrees to convert at least six (6) Miami Subs
Restaurants in the North Carolina and South Carolina ("Carolina") market to
Combo Units within two (2) years from the date of this Agreement. At least three
(3) of the six (6) Carolina Combo Units shall be convened within one (1) year
from the date of this Agreement. Should Miami Subs fail to meet the above
conversion schedule for either the DEW market or the Carolina market, Miami Subs
shall lose its

                                       11

<PAGE>

right to exclusivity for the violated conversion schedule market or markets.
Nothing in this provision shall limit Arthur Treacher's ability to sell
franchises or develop Arthur Treacher's units in any area not otherwise
protected by a Combo Unit's Arthur Treacher's Franchise Agreement.

         13. FRANCHISEE DEFAULT.

             13.1 Notice of Default and/or Termination of Arthur Treacher's
Agreement.

                  A. To Combo Units Operated by Miami Subs ("Company-Operated
Combo").

                     Arthur Treacher's reserves the right to default Miami Subs
in accordance with Arthur Treacher's Agreement upon Miami Subs' breach of the
Arthur Treacher's Franchise Agreement for a Company-Operated Combo. Arthur
Treacher's shall not terminate the Arthur Treacher's Franchise Agreement for a
Company-Operated Combo Unit without first providing Miami Subs (i) written
notification of the relevant material breach, and (ii) a cure period as required
under the Arthur Treacher's Master Franchise Agreement or applicable state law.

                  B. To Combo Units Owned and Operated by a Miami Subs
franchisee ("MS Franchisee Combo").

                     Arthur Treacher's reserves the right to default the Combo
Unit franchisee in accordance with the Arthur Treacher's Franchise Agreement.
Arthur Treacher's shall not terminate the Arthur Treacher's Franchise Agreement
for the MS Franchisee Combo without first providing the Combo Unit franchisee
(i) written notice, with a copy to Miami Subs, of the relevant material breach.
and (ii) a cure period, as required under the Arthur Treacher's Franchise
Agreement or applicable state law. If the Combo Unit Franchisee fails to cure
the default under 'the Arthur Treacher's Franchise Agreement within the
prescribed period, Arthur Treacher's shall afford Miami Subs an additional
thirty (30) day period to work out the default with the Combo Unit franchisee or
to have the default cured by Miami Subs itself If such default is an automatic
default under the Arthur Treacher's franchise agreement, the Arthur Treacher's
franchise agreement shall automatically transfer to Miami Subs upon the
termination of the initial franchisee's franchise agreement upon request by
Miami Subs.

              13.2 Cross Default. Both Arthur Treacher's and Miami Subs
shall amend their respective Franchise Agreements to provide for an automatic
default and termination of their respective Franchise Agreement upon the default
and termination of either parties' Franchise Agreement.

         14. FRANCHISE TRANSFER RESTRICTIONS. Miami Subs will notify Arthur
Treacher's of any transfers of Miami Subs Restaurants (Company-Owned and
franchisee-owned)

                                       12
<PAGE>

which are Combo Units. Within five (5) days from notification from Miami Subs,
Arthur Treacher's shall, process all necessary Arthur Treacher's documentation
in connection with such transfers. Upon transfer of the restaurant, Miami Subs
shall collect and remit to Arthur Treacher's a transfer fee of Five Hundred
Dollars ($500.00). No transfer fee shall be charged for the transfer of a
Company-Owned Combo Unit. Miami Subs shall be responsible for coordinating the
closing and forwarding all required documents to Arthur Treacher's.

         15. NO ASSIGNMENT. Except in connection with a sale of substantially
all the assets, merger or reorganization of either party, this Agreement will
not be assigned by either party without the prior written consent of the other
party, nor may any rights under this Agreement be transferred to any other party
by operation of law. Any such prohibited assignment or transfer will be void and
of no effect and will constitute a material breach of this Agreement.

         16. CORPORATE AUTHORITY. Miami Subs and Arthur Treacher's have the
corporate power and authority to execute, deliver and perform this Agreement;
and the execution, delivery and performance of this Agreement has been duly
authorized by all necessary corporate action. The execution, delivery and
performance of this Agreement by Miami Subs and by Arthur Treacher's will not
result in a breach of or violation by Miami Subs or by Arthur Treacher's, or
constitute a default by it, under any judgement, decree, order, governmental
permit or license, agreement, indenture, instrument, statute, rule or regulation
to which either is a party or by which either is bound or their respective
certificate of incorporation or By-Laws. No authorization, approval or consent
of any governmental authority is required in connection with the execution,
delivery and performance by Miami Subs or by Arthur Treacher's of this
Agreement.

         17. INDEMNIFICATION. To the extent that Arthur Treacher's or Miami Subs
incurs or has imposed upon it any costs for any claim, damage, liability, suit
or action, including all reasonable expenses and attorneys' fees, by reason of
the acts or omissions of the other, the other's specific business operation, or
of the other's respective agents or employees, Arthur Treacher's and Miami Subs
shall indemnify and hold each other harmless from and against such costs.

         18. DEFAULT AND TERMINATION.

             18.1 Default Without Opportunity to Cure. The specified party shall
be deemed to be in default under this Agreement upon the occurrence of any of
the following events, and the non-breaching party may, at its option where
allowed by applicable law, terminate this Agreement without affording the other
any opportunity to cure the default, effective immediately upon written notice
from the non-breaching party:

                  A. If. contrary to the terms of this Agreement, either party
discloses or divulges trade secrets provided to the other to the material
detriment of the non-breaching party;

                  B. If either party files a petition commencing a voluntary
case under

                                       13

<PAGE>

bankruptcy or other debtor relief laws, an order for relief under bankruptcy or
other debtor relief laws is entered against said party, or said party admits in
writing its inability to pay its debts as they mature or makes an assignment for
the benefit of creditors, or the date a receiver for the property or affairs of
said party is appointed.

            18.2 Default With Opportunity to Cure. Except as otherwise provided
in this Section, upon default or breach of this Agreement by either party which
is susceptible of being cured, the non-breaching party may terminate this
Agreement only by giving the breaching party written notice of termination
stating the nature of such default at least thirty (30) days prior to the
effective date of termination; provided, however, that the breaching party may
avoid termination by immediately initiating a remedy to cure such default and
curing it to the non-breaching party's reasonable satisfaction within the thirty
(30) day period, and by promptly providing proof thereof to the non-breaching
party.

            18.3 Mutual Agreement. This Agreement may be terminated at any time
by the mutual agreement of Miami Subs and Arthur Treacher's.

         19. BANKRUPTCY. If Arthur Treacher's files for bankruptcy, Arthur
Treacher's desires that Miami Subs continue to use the Arthur Treacher's
trademarks. recipes, operational procedures, and other items necessary to
continue to develop and operate the Combo Units. Miami Subs shall retain the
same rights that other Arthur Treacher's franchisees have during any pending
bankruptcy, including the right to order from Arthur Treacher's suppliers.

         20. TRADEMARKS.

             20.1 Ownership of Names.. Arthur Treacher's and Miami Subs
acknowledge that each party owns trademarks, service marks, and the names and
logos used in connection with its respective company, whether or not trademarked
or copyrighted by each party (collectively "Names") and all goodwill associated
with or symbolized by the Names.

             20.2 No Challenge of Names. Neither Arthur Treacher's nor
Miami Subs shall do anything inconsistent with the other party's ownership of
its Names and related goodwill, including any goodwill which might be deemed to
have arisen through the activities of the party which is not the owner of the
Names, and all use of the Names will inure directly and exclusively to the
benefit of the respective owner. Nothing in this Agreement will be deemed to
constitute or result in an assignment of any of the Names or the creation of any
equitable or other interest in them. except as expressly set forth herein.
During the term of this Agreement and any time thereafter, neither party will
impugn, challenge or assist in any challenge to the validity of the other's
Names. the registrations or the ownership thereof. The owner of each respective
Name will be solely responsible for taking such actions as it deems appropriate
to obtain trademark, service mark or copyright registration for, and to defend
its ownership of each Name. All rights with respect to the Names not
specifically granted in this Agreement will be and are hereby

                                       14

<PAGE>

reserved to the owner. Any advertising or promotional materials created for
Miami Subs shall remain the property of Miami Subs with the exception of the
Name.

             20.3 Separate Names. Neither Arthur Treacher's nor Miami Subs
shall use, as part of its corporate or other business name, any Name of each
other or any form or variation thereof which is likely to cause third parties to
be confused or mistaken that Miami Subs and Arthur Treacher's are hot separate
entities.

             20.4 Grant of License to Miami Subs. Arthur Treacher's hereby
grants to Miami Subs a non-transferable right to use Arthur Treacher's Names
during the term of this Agreement in connection with Miami Subs sale of Miami
Subs franchises and with the marketing, sale and distribution, as set forth
herein, of Arthur Treacher's products at the Combo Unit locations.

         21. NOTICES. Any notice or other communication provided for herein or
given hereunder to a party hereto shall be in writing and shall be deemed to
have been given if signed by the party giving them. Notice shall be deemed
effectively given when delivered by hand, on the third business day after it is
deposited in the Untied States mail, postage paid (registered or certified mail)
or on the business day after it is sent by telecopier to the individuals listed
below:

         To Arthur Treacher's:      Mr. William Saculla. President
                                    Arthur Treacher's, Inc.
                                    7400 Baymeadows Way, Suite 300
                                    Jacksonville, FL 32256

         To Miami Subs:             Donald L. Perlyn, President
                                    Miami Subs USA, Inc.
                                    6300 NW 3 1st Avenue
                                    Ft. Lauderdale, FL 33309

or such other address with respect to a party as such party shall notify the
other in writing as above provided.

         22. COMPLETE AGREEMENT AND DISCLOSURES.

             22.1 This Agreement and the Exhibits herein contain the complete
agreement among the parties with respect to the Program contemplated hereby and
supersede all prior agreements and understandings among the parties with respect
to such Program. There are no restrictions, promises, warranties. covenants, or
undertakings by the parties other than those expressly set forth in this
Agreement. This Agreement may be amended, modified or terminated only by written
instrument signed by all parties hereto.

         23. GOOD FAITH AND COOPERATION.  The parties pledge to utilize their
best

                                       15

<PAGE>

efforts to promote a cooperative working relationship and to undertake a good
faith approach toward resolving any disputes that may arise between themselves
during their relationship

         24. MEDIATION. In connection with any dispute which may arise between
the parties, either party may at any time elect to submit the dispute to
non-binding mediation before and in accordance with the procedural rules of a
mutually agreeable mediator. Mediation will take place in a mutually agreeable
place, with the costs of mediation to be borne equally by both parties.

         25. MUTUAL WAIVER OF A TRAIL BY JURY. Each party hereby covenants and
agree that in any litigation, suit, action, counterclaim or proceeding, whether
at law or in. equity, which arises out of. concerns, or relates to this
agreement, any and all transactions contemplated hereunder, the performance
thereof, or otherwise, trial should be to a court of competent jurisdiction and
not to a jury. Each party hereby irrevocably waives any right it may have to a
trial by jury. Any party may file an original counterpart or a copy of this
Agreement with any court as written evidence of consent of the parties hereto of
the waiver of their right to trial by jury. Neither party has made or relied
upon any oral representations to or by the other party regarding the
enforceability of the provision. Each party has read and understands the effect
of this jury waiver provision. If any other term of this Agreement is found or
determined to be unconscionable or unenforceable for any reason, the foregoing
provisions shall continue in $11 force and effect

         26. SEVERABILITY. If any provision of this Agreement or any Exhibit
shall be determined to be contrary to law and unenforceable by any court of law,
the remaining provisions shall be severable and enforceable in accordance with
their terms.

         27. HEADINGS. The descriptive headings of the Sections and Subsections
hereof are inserted for convenience only and do not constitute a part of this
Agreement.

         28. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute but one instrument.

         29. APPLICABLE LAW. This Agreement shall be construed and enforced in
accordance with the laws of the State of Florida.

         30. ATTORNEYS' FEES. Should suit be brought to enforce this Agreement
or by reason of any claimed default in the performance hereof by either party,
the prevailing party in such suit shall be awarded reasonable attorneys' fees in
the defense or prosecution thereof as a part of the judgement in such suit.

         31. CONFIDENTIALITY. Each of the parties shall use its best efforts to
keep confidential any and all information, including but not limited to the
information and materials

                                       16

<PAGE>

contained in the operating guide of the respective party, furnished to it or to
its affiliates, agents or representatives in connection with the Program arising
out of this Agreement. Such parties shall instruct their respective officers,
employees and other representative having access to such information of such
obligation of confidentially and shall enforce adherence to such obligation of
confidentiality. The parties hereby acknowledge that such confidential
information of each party constitutes trade secret. Upon any termination of this
Agreement. the parties shall promptly return to the other all confidential
materials.

         32. RELATIONSHIP OF THE PARTIES. It is understood and agreed by the
parties tat this Agreement does not in any way create a fiduciary relationship,
and that nothing in the Agreement is intended to constitute any party as an
agent, legal representative, subsidiary, joint venturer, partner, employee or
servant of the other party, for any purposes whatsoever.

         33. WAIVER. No failure of Arthur Treacher's or Miami Subs to exercise
any power reserved to it hereunder, or to insist upon strict compliance by the
other with any obligation or condition hereunder, and no custom or practice of
the parties in variance with the terms thereof, shall constitute a waiver of
Arthur Treacher's or Miami Subs' right to demand strict compliance with the
terms hereof Waiver by Arthur Treacher's or Miami Subs of any particular default
by the other shall not affect or impair Miami Subs' or Arthur Treacher's right
with respect to any subsequent default of the same or of a different nature; not
shall any delay, waiver, forbearance or omission of Miami Subs to exercise any
power or rights arising out of any breach or default by the other of any of the
terms, provisions or covenants hereof or impair Miami Subs' or Arthur Treacher's
rights, nor shall such constitute a waiver by Miami Subs or Arthur Treacher's of
any right hereunder or of the right to declare any subsequent breach or default.

         34. INJUNCTIVE RELIEF. Both parties recognize that their failure to
comply with Section 31. of this Agreement or their infringement of the other
parties Names is likely to cause irreparable harm to the other party. Therefore
both parties shall be entitled to injunctive relief (both preliminary and
permanent) restraining that breach and/or to specific performance, without
showing or proving actual damages and without posting any bond or security. Any
equitable remedies sought by the damaged party shall be in addition to, and not
in lieu of, all remedies and rights that the damaged party otherwise may have
arising under applicable law or by virtue of any breach of this Agreement.

         35. INDEMNIFICATION. Miami Subs hereby and forever indemnifies, defends
and holds Arthur Treacher's its agents, officers and directors and employees,
harmless from and against any and all obligations, actions. causes of action,
suits, debts, dues, sums of money including attorneys fees, court costs of any
kind and any level whatsoever including appeals, covenants, judgements, executed
claims, demands whatsoever in law or in equity, for, upon or by reason of any
matter arising from or related to the sales process for a Combo Unit.
Notwithstanding the foregoing, Miami Subs shall not indemnify Arthur Treacher's
for matters arising from or related to any deficiency or mistake made to any
offering circular, agreements. or sales information created by or on behalf of
Arthur Treacher's.

                                       17

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first written above.

ARTHUR TREACHER'S, INC.                           MIAMI SUBS USA, INC.
A Utah corporation                                A Florida corporation

By: /s/William Saculla                            By:
    -------------------------------                   --------------------------
    Its: Pres.                                    Its: President

Attest:                                           Attest:

-----------------------------------               ------------------------------
Its: Executive Assistant                          Its: V.P.

                                       18

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