Document:

exh10-7_warrant.htm

     

    
      

      

    

     

     

     

     

     

    EXHIBIT
      10.7

     

    WARRANT
      TO PURCHASE COMMON STOCK ISSUED TO

    IRA
      J. MILLER DATED NOVEMBER 20, 2006

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NEITHER
      THIS WARRANT, NOR THE SHARES OF CAPITAL STOCK ISSUABLE
      UPON EXERCISE OF THIS WARRANT, HAS BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND NEITHER MAY
      BE
      SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS IN ACCORDANCE WITH THE
      REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR SOME OTHER
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS
      IS
      AVAILABLE WITH RESPECT THERETO.

    

    

    WARRANT

    

    

    Date
      of
      Issuance: 11/20,
      2006                                                                                                                     Number
      of Shares: 200,000

    

    

    

    HEALTHY
      FAST FOOD, INC.

    

    

    1.           Issuance.  This
      Warrant is issued to Ira J. Miller by Healthy Fast Food, Inc., a Nevada
      corporation (hereinafter with its successors called the
“Company”).  This Warrant will be registered on the books of the
      Company or its agent as to principal and interest.  Any transfer of
      this Warrant will be effected only by surrender of this Warrant to the Company
      and reissuance of a new warrant to the transferee.

    

    2.           Purchase
      Price; Number of Shares.  Subject to the terms and conditions
      hereinafter set forth and applicable securities laws, the registered holder
      of
      this Warrant (the “Holder”), commencing on the date hereof and ending on January
      24, 2016, is entitled upon surrender of this Warrant with the subscription
      form
      annexed hereto as Exhibit A duly executed, at the office of the Company
      at 1075 American Pacific, Suite C, Henderson, Nevada 89074, or such other office
      as the Company shall notify the Holder of in writing, to purchase from the
      Company, 200,000 fully paid and nonassessable shares (the “Shares”) of the
      Company’s common stock, $0.001 par value per share (the “Common Stock”), at the
      purchase price of $1.10 per share (the “Purchase Price”).

    

    3.           Payment
      of Purchase Price. The Purchase Price may be paid (i) in cash or by
      check, (ii) by the surrender by the Holder to the Company of any promissory
      notes or other obligations issued by the Company, with all such notes and
      obligations so surrendered being credited against the Purchase Price in an
      amount equal to the outstanding principal amount thereof plus accrued but unpaid
      interest to the date of surrender, (iii) through delivery by the Holder to
      the
      Company of other securities issued by the Company, with such securities being
      credited against the Purchase Price in an amount equal to the fair market value
      thereof, as is determined in good faith by the board of directors of the Company
      (the “Board”), or (iv) by any combination of the
      foregoing.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
2

    The
      Board
      shall promptly respond in writing to an inquiry by the Holder as to the fair
      market value of any securities the Holder may wish to deliver to the Company
      pursuant to clause (iii) above.

    

    4.           Net
      Issue Election. In lieu of exercising this Warrant pursuant to Section 3
      hereof, the Holder may elect to receive, without the payment by the Holder
      of
      any additional consideration, a number of Shares that is equal to the value
      of
      this Warrant or any portion hereof by the surrender of this Warrant or such
      portion to the Company by surrender of this Warrant at the principal office
      of
      the Company together with the Net Issue Election Notice similar to the form
      annexed hereto as Exhibit B duly executed, at the office of the
      Company.  Thereupon, the Company shall issue to the Holder such number
      of fully paid and nonassessable Shares as is computed using the following
      formula:

    

    X
      = Y
      (A-B)

       A

    

    
      	
               

            	
              where

            

    

    

    X
      =                      the
      number of shares to be issued to the Holder pursuant to this
      Section 4.

    

    
      	
              Y
                =

            	
              the
                number of shares covered by this Warrant in respect of which the
                net issue
                election is made pursuant to this
                Section 4.

            

    

    

    
      	
              A
                =

            	
              the
                Current Value Per Share (as defined
                below).

            

    

    

    
      	
              B
                =

            	
              the
                Purchase Price in effect under this Warrant at the time the net issue
                election is made pursuant to this
                Section 4.

            

    

    

    For
      purposes of the above calculation, the “Current Value Per Share” shall be (i)
      subject to clauses (ii) or (iii) below, the fair market value of one Shares,
      as
      determined in good faith by the Board, or (ii) if the Company is then subject
      to
      an Acquisition Event (as defined in Section 11), in which case the Current
      Value
      Per Share shall be the value per share that the holders of the Company’s Shares
      actually received or will receive as determined pursuant to Section 11or (iii)
      as defined in Schedule 1 hereto.

    

    5.           Registration
      Rights.

    

    (a)           “Piggy-Back”
      Registrations.  If at any time the Company shall determine to
      register under the Securities Act of 1933, as amended (the “Securities Act”),
      including pursuant to a demand of any stockholder of the Company exercising
      registration rights any of its securities for its own account, other than on
      Form S-8 or its then equivalents, it shall send to the Holder, including each
      holder who has the right to acquire Shares, written notice of such determination
      and, if within 30 days after receipt of such notice, such holder shall so
      request in writing, the Company shall use its best efforts to include
      in

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
3

    such
      registration statement all or any part of the Shares such holder requests to
      be
      registered therein (the “Registrable Shares”), except that if, in connection
      with any offering involving an underwriting of Common Stock to be issued by
      the
      Company, the managing underwriter shall impose a limitation on the number of
      shares of such Common Stock which may be included in any such registration
      statement because, in its judgment, such limitation is necessary to effect
      an
      orderly public distribution, and such limitation is imposed pro rata with
      respect to all securities whose holders have a contractual, incidental (“piggy
      back”) right to include such securities in the registration statement and as to
      which inclusion has been requested pursuant to such right, then the Company
      shall be obligated to include in such registration statement only such limited
      portion (which may be none) of the Registrable Shares with respect to which
      such
      holder has requested inclusion hereunder.

    

    (b)           Indemnification
      of the Company.  In the event that the Company registers any of
      the Registrable Shares under the Securities Act, each holder of the Registrable
      Shares so registered, to the extent permitted by law, will indemnify and hold
      harmless the Company, each of its directors, each of its officers who have
      signed or otherwise participated in the preparation of the registration
      statement, each underwriter of the Registrable Shares so registered (including
      any broker or dealer through whom such of the shares may be sold) and any
      individual, corporation, partnership, joint venture, trust, or unincorporated
      organization, or a government or any agency or political subdivision thereof
      (collectively, a “Person”), if any, who controls the Company within the meaning
      of Section 15 of the Securities Act from and against any and all losses, claims,
      damages, expenses or liabilities, joint or several, to which they or any of
      them
      may become subject under the Securities Act or under any other statute or at
      common law or otherwise, and, except as hereinafter provided, will reimburse
      the
      Company and each such director, officer, underwriter or controlling Person
      for
      any legal or other expenses reasonably incurred by them or any of them in
      connection with investigating or defending any actions whether or not resulting
      in any liability, insofar as such losses, claims, damages, expenses, liabilities
      or actions arise out of or are based upon any untrue statement or alleged untrue
      statement of a material fact contained in the registration statement or any
      filing with any state securities commission or agency, in any preliminary or
      amended preliminary prospectus or in the final prospectus (or in the
      registration statement or prospectus as from time to time amended or
      supplemented) or arise out of or are based upon the omission or alleged omission
      to state therein a material fact required to be stated therein or necessary
      in
      order to make the statements therein not misleading, but only insofar as any
      such statement or omission was made in reliance upon and in conformity with
      information furnished in writing to the Company in connection therewith by
      such
      holder of Registrable Shares expressly for use therein; provided, however,
      that
      such holder’s obligations hereunder shall be limited to an amount equal to the
      net proceeds received by such holder of the Registrable Shares sold in such
      registration.

    

    (c)           Indemnification
      of Holders of Registrable Shares.  In the event that the Company
      registers any of the Registrable Shares under the Securities Act, the Company
      will, to the extent permitted by law, indemnify and hold harmless each holder
      and each underwriter of the Registrable Shares (including their officers,
      directors, affiliates and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
4

    partners)
      so registered (including any broker or dealer through whom such shares may
      be
      sold) and each Person, if any, who controls such holder or any such underwriter
      within the meaning of Section 15 of the Securities Act from and against any
      and
      all losses, claims, damages, expenses or liabilities, joint or several, to
      which
      they or any of them become subject under the Securities Act or under any other
      statute or at common law or otherwise, and, except as hereinafter provided,
      will
      reimburse each such holder, each such underwriter and each such controlling
      Person, if any, for any legal or other expenses reasonably incurred by them
      or
      any of them in connection with investigating or defending any actions whether
      or
      not resulting in any liability, insofar as such losses, claims, damages,
      expenses, liabilities or actions arise out of or are based upon any untrue
      statement or alleged untrue statement of a material fact contained in the
      registration statement or any filing with any state securities commission or
      agency, in any preliminary or amended preliminary prospectus or in the final
      prospectus (or the registration statement or prospectus as from time to time
      amended or supplemented by the Company) or arise out of or are based upon the
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary in order to make the statements therein not
      misleading, or any violation by the Company of any rule or regulation
      promulgated under the Securities Act or any state securities laws or regulations
      applicable to the Company and relating to action or inaction required of the
      Company in connection with such registration, unless (i) such untrue statement
      or alleged untrue statement or omission or alleged omission was made in such
      registration statement, preliminary or amended preliminary prospectus or final
      prospectus in reliance upon and in conformity with information furnished in
      writing to the Company in connection therewith by such holder of Registrable
      Shares, any such underwriter or any such controlling Person expressly for use
      therein, or; (ii) in the case of a sale directly by such holder of Registrable
      Shares (including a sale of such Registrable Shares through any underwriter
      retained by such holder of Registrable Shares to engage in a distribution solely
      on behalf of such holder of Registrable Shares), such untrue statement or
      alleged untrue statement or omission or alleged omission was contained in a
      preliminary prospectus and corrected in a final or amended prospectus, and
      such
      holder of Registrable Shares failed to deliver a copy of the final or amended
      prospectus at or prior to the confirmation of the sale of the Registrable Shares
      to the Person asserting any such loss, claim, damage or liability in any case
      where such delivery is required by the Securities Act or any state securities
      laws.

    

    (d)           Further
      Obligations.

    

    (i)            Whenever
      under the preceding Sections of this Agreement, the Company is required
      hereunder to register Registrable Shares, it agrees that it shall also do the
      following:

    

    (A)           Furnish
      to each selling holder such copies of each preliminary and final prospectus
      and
      such other documents as said holder may reasonably request to facilitate the
      public offering of its Registrable Shares;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
5

    (B)           Use
      its best efforts to register or qualify the Registrable Shares covered by said
      registration statement under the applicable securities or “blue sky” laws of
      such jurisdictions as any selling holder may reasonably request;

    

    (C)           Otherwise
      use its best efforts to comply with all applicable rules and regulations of
      the
      Commission, and make available to its security holders, as soon as reasonably
      practicable, an earnings statement covering the period of at least twelve
      months, but not more than eighteen months, beginning with the first month after
      the effective date of the registration statement covering an Initial Public
      Offering, which earnings statement shall satisfy the provisions of Section
      11(a)
      of the Securities Act and Rule 158 thereunder.

    

    (ii)           Whenever
      under the preceding Sections of this Agreement the holders of Registrable Shares
      are registering such shares pursuant to any registration statement, each such
      holder agrees to (i) timely provide to the Company, at its request, such
      information and materials as it may reasonably request in order to effect the
      registration of such Registrable Shares.

    

    (e)           Expenses.

    

    (i)            In
      the case of any registration under this Section 5, the Company shall bear all
      costs and expenses of each such registration, including, but not limited to,
      printing, legal and accounting expenses, Securities and Exchange Commission
      and
      National Association of Securities Dealers, Inc. filing fees and expenses,
      and
“blue sky” fees and expenses and the reasonable fees and disbursements of not
      more than one counsel for the selling holders of Registrable Shares in
      connection with the registration of their Registrable Shares. Despite the
      foregoing, the Company shall have no obligation to pay or otherwise bear (i)
      any
      portion of the fees or disbursements of more than one counsel for the selling
      holders of Registrable Shares in connection with the registration of their
      Registrable Shares, or (ii) any portion of the underwriters’ commissions or
      discounts attributable to the Registrable Shares being offered and sold by
      the
      holders of Registrable Shares.

    

    (ii)           The
      Company shall pay all expenses in connection with any registration initiated
      pursuant to this Agreement, which is withdrawn, delayed or abandoned at the
      request of the Company, unless such registration is withdrawn, delayed or
      abandoned solely because of any actions of the holders of Registrable
      Shares.

    

    (f)           Delay
      of Registration.  For a period not to exceed 90 days, the Company
      shall not be obligated to prepare and file, or prevented from delaying or
      abandoning, a registration statement pursuant to this Agreement at any time
      when
      the Company, in its Board of Director’s good faith judgment with advice of
      counsel, reasonably believes:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
6

    (i)           that
      the filing thereof at the time requested, or the offering of Registrable Shares
      pursuant thereto, would materially and adversely affect (i) a pending or
      scheduled public offering of the Company’s securities, (ii) an acquisition,
      merger, recapitalization, consolidation, reorganization or similar transaction
      by or of the Company, (iii) pre-existing and continuing negotiations,
      discussions or pending proposals with respect to any of the foregoing
      transactions, or (iv) the financial condition of the Company in view of the
      disclosure of any pending or threatened litigation, claim, assessment or
      governmental investigation which may be required thereby; and

    

    (ii)           that
      the failure to disclose any material information with respect to the foregoing
      would cause a violation of the Securities Act or the Exchange Act.

    

    6.           Partial
      Exercise.  This Warrant may be exercised in part, and the Holder
      shall be entitled to receive a new warrant, which shall be dated as of the
      date
      of this Warrant, covering the number of shares in respect of which this Warrant
      shall not have been exercised.

    

    7.           Issuance
      Date.  The person or persons in whose name or names any
      certificate representing Shares is issued hereunder shall be deemed to have
      become the holder of record of the shares represented thereby as at the close
      of
      business on the date this Warrant is exercised with respect to such shares,
      whether or not the transfer books of the Company shall be
      closed.  Following the Holder’s exercise of this Warrant pursuant to
      Section 3 or 4 hereof, the Holder shall be entitled to all of the rights and
      benefits as a holder of Shares that have been granted to the other holders
      of
      the Company’s Common Stock.

    

    8.           Expiration
      Date; Automatic Exercise.  This Warrant shall expire at the close
      of business on January 24, 2016.  Notwithstanding the foregoing, this
      Warrant shall automatically be deemed to be exercised in full pursuant to the
      provisions of Section 4 hereof, without any further action on behalf of the
      Holder, immediately prior to the time this Warrant would otherwise expire
      pursuant to the preceding sentence.

    

    9.           Reserved
      Shares; Valid Issuance.  The Company covenants that it will at all
      times reserve and keep available such number of its authorized shares of Common
      Stock, free from all preemptive or similar rights therein, as will be sufficient
      to permit, respectively, the exercise of this Warrant in full and the conversion
      into shares of Common Stock.  The Company further covenants that all
      such shares as may be issued pursuant to such exercise and conversion will,
      upon
      issuance, be duly and validly issued, fully paid and nonassessable and free
      from
      all taxes, liens and charges with respect to the issuance thereof.

    

    10.           Stock
      Dividends.  If after the date the Shares is first authorized, the
      Company shall subdivide the Shares, by split-up or otherwise, or combine the
      Shares, or issue additional Shares in payment of a stock dividend on the Shares,
      the number of shares issuable on the exercise of this Warrant shall forthwith
      be
      proportionately increased in the case of a subdivision or stock dividend, or
      proportionately decreased in the case of a combination, and the Purchase Price
      shall forthwith be proportionately decreased in the case of a subdivision or
      stock dividend, or proportionately increased in the case of a
      combination.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
7

    

    11.           Capital
      Reorganization, Merger or Consolidation.  If at any time while
      this Warrant is outstanding and unexpired, (i) there shall be any
      reclassification, capital reorganization or change of the Shares (other than
      as
      a result of a subdivision, combination or stock dividend provided for in
      Section 10 hereof) (any event described in this clause (i), a
“Reclassification Event”), or (ii) any consolidation of the Company with, or
      merger of the Company into, another corporation or other business organization
      (other than a consolidation or merger in which the Company is the continuing
      Company and which does not result in any reclassification or change of the
      outstanding Shares), or any sale or conveyance to another corporation or other
      business organization of all or substantially all of the assets of the Company
      (any event described in this clause (ii), an “Acquisition Event”), then, as part
      of such Reclassification Event or Acquisition Event, lawful provisions shall
      be
      made so that the Holder shall thereafter have the right to purchase, at a total
      price not to exceed that payable upon the exercise of this Warrant in full,
      the
      kind and amount of shares of stock and other securities and property receivable
      upon such Reclassification Event or Acquisition Event by a holder of the number
      of Shares which might have been purchased by the Holder immediately prior to
      such Reclassification Event or Acquisition Event (or, if there are no holders
      of
      Shares at such time, by a holder of the number of shares of Common Stock which
      might have been acquired by the Holder immediately prior to such
      Reclassification Event or Acquisition Event upon the exercise of this Warrant
      in
      full and the conversion into shares of Common Stock of all Shares receivable
      upon such exercise), and in any such case appropriate provisions shall be made
      with respect to the rights and interest of the Holder to the end that the
      provisions hereof (including without limitation, provisions for the adjustment
      of the Purchase Price and the number of shares issuable hereunder) shall
      thereafter be applicable in relation to any shares of stock or other securities
      and property thereafter deliverable upon exercise hereof.

    

    12.           Fractional
      Shares.  In no event shall any fractional Shares be issued upon
      any exercise of this Warrant.  If, upon exercise of this Warrant as an
      entirety, the Holder would, except as provided in this Section 12, be
      entitled to receive a fractional Shares, then the Company shall issue cash
      in
      lieu of any fraction of a share equal to such fraction of the Current Value
      Per
      Share of one whole Shares as of the date of the exercise of this
      Warrant.

    

    13.           Certificate
      of Adjustment.  Whenever the Purchase Price is adjusted, as herein
      provided, the Company shall promptly deliver to the Holder a certificate of
      the
      Chief Financial Officer or Controller of the Company setting forth the Purchase
      Price after such adjustment and setting forth a brief statement of the facts
      requiring such adjustment.

    

    
      	
              14.

            	
              Notices
                of Record Date, Etc.  In the event
                of:

            

    

    

    (a)           any
      taking by the Company of a record of the holders of any class of securities
      for
      the purpose of determining the holders thereof who are entitled to receive
      any
      dividend or other distribution, or any right to subscribe for, purchase or
      otherwise

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
8

    acquire
      any shares of stock of any class or any other securities or property, or to
      receive any other right,

    

    (b)           any
      reclassification of the capital stock of the Company, capital reorganization
      of
      the Company, consolidation or merger involving the Company, or sale or
      conveyance of all or substantially all of its assets, or

    

    (c)           any
      voluntary or involuntary dissolution, liquidation or winding-up of the
      Company,

    

    then
      and
      in each such event the Company will mail or cause to be mailed to the Holder
      a
      notice specifying, as the case may be, (i) the date on which any such record
      is
      to be taken for the purpose of such dividend, distribution or right, and stating
      the amount and character of such dividend, distribution or right, or (ii) the
      date on which any such reclassification, reorganization, consolidation, merger,
      sale or conveyance, dissolution, liquidation or winding-up is to take place,
      and
      the time, if any is to be fixed, as of which the holders of record in respect
      of
      such event are to be determined.  Such notice shall be mailed at least
      fifteen (15) days prior to the date specified in such notice on which any such
      action is to be taken.

    

    15.           Amendment.  The
      terms of this Warrant may be amended, modified or waived only with the written
      consent of the Company and the Holder.

    

    16.           Warrant
      Register; Transfers, Etc.

    

    (a).           The
      Company will maintain a register containing the names and addresses of the
      registered holders of the Warrants.  The Holder may change its address
      as shown on the warrant register by written notice to the Company requesting
      such change.  Any notice or written communication required or
      permitted to be given to the Holder may be given by certified mail or delivered
      to the Holder at its address as shown on the warrant register.

    

    (b).           Subject
      to compliance with applicable federal and state securities laws, this Warrant
      may be transferred by the Holder with respect to any or all of the shares
      purchasable hereunder.  Upon surrender of this Warrant to the Company,
      together with the assignment substantially in the form attached hereto as
Exhibit C hereof properly endorsed, for transfer of this Warrant as an
      entirety by the Holder, the Company shall issue a new warrant of the same
      denomination to the assignee.  Upon surrender of this Warrant to the
      Company, together with the assignment hereof properly endorsed, by the Holder
      for transfer with respect to a portion of the Shares purchasable hereunder,
      the
      Company shall issue a new warrant to the assignee, in such denomination as
      shall
      be requested by the Holder hereof, and shall issue to such Holder a new warrant
      covering the number of shares in respect of which this Warrant shall not have
      been transferred.

    (c).           In
      case this Warrant shall be mutilated, lost, stolen or destroyed, the Company
      shall issue a new warrant of like tenor and denomination and deliver the same
      (i) in exchange and substitution for and upon surrender and cancellation of
      any

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
9

    mutilated
      Warrant, or (ii) in lieu of any Warrant lost, stolen or destroyed, upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft
      or
      destruction of such Warrant and an agreement reasonably satisfactory to the
      Company to indemnify the Company from any loss incurred by it in connection
      with
      such Warrant.

    

    17.           No
      Rights or Liabilities as Stockholders.  This Warrant shall not
      entitle the Holder to any voting rights or other rights as a stockholder of
      the
      Company.

    

    18.           No
      Impairment.  The Company will not, by amendment of its Certificate
      of Incorporation or through any reclassification, capital reorganization,
      consolidation, merger, sale or conveyance of assets, dissolution, liquidation,
      issue or sale of securities or any other voluntary action, avoid or seek to
      avoid the observance or performance of any of the terms of this Warrant, but
      will at all times in good faith assist in the carrying out of all such terms
      and
      in the taking of all such action as may be necessary or appropriate in order
      to
      protect the rights of the Holder.

    

    19.           Governing
      Law.   The provisions and terms of this Warrant shall be
      governed by and construed in accordance with the internal laws of the State
      of
      New York, without giving effect to the conflict of laws provisions
      thereof.

    

    20.           Successors
      and Assigns.  This Warrant shall be binding upon the Company’s
      successors and assigns and shall be binding upon and inure to the benefit of
      the
      Holder’s successors, legal representatives and permitted assigns.

    

    21.           Headings.  The
      headings in this Warrant are for purposes of convenience in reference only,
      and
      shall not be deemed to constitute a part hereof.

    

    22.           Severability.  If
      any term, provision, covenant or restriction of this Warrant is held by a court
      of competent jurisdiction to be invalid, void or unenforceable, the remainder
      of
      the terms, provisions, covenants and restrictions of this Agreement shall remain
      in full force and effect and shall in no way be affected, impaired or
      invalidated.

    

    23.           Counterparts.  For
      the convenience of the parties, any number of counterparts of this Warrant
      may
      be executed by the parties hereto and each such executed counterpart shall
      be,
      and shall be deemed to be, an original instrument.

    

    24.           Business
      Days.  If the last or appointed day for the taking of any action
      required or the expiration of any right granted herein shall be a Saturday
      or
      Sunday or a legal holiday in the State of New York, then such action may be
      taken or right may be exercised on the next succeeding day which is not a
      Saturday or Sunday or such a legal holiday.

    

    [signature
      page follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      
10

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      duly
      authorized officer to take effect as of the date first hereinabove
      written.

     

    
      	 	HEALTHY
              FAST FOOD, INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Gregory
              R.
              Janson	 
	 	 	Name: 
Gregory
              R.
              Janson	 
	 	 	Title: 
President	 
	 	 	 	 

    

     

    
      	 	INVESTOR	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Ira
              J. Miller	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    to
      Warrant

    

    Subscription

    

    

    To:____________________                                                                           Date:_________________________

    

    

    The
      undersigned hereby subscribes for
      __________ Shares covered by this Warrant.  The certificate(s) for
      such shares shall be issued in the name of the undersigned or as otherwise
      indicated below:

    

    

    

    
      	
               

            	 

    

    
      	
               

            	
              Signature

            

    

    

    
      	
               

            	 

    

    
      	
               

            	
              Name
                for Registration

            

    

    

    
      	
               

            	 

    

    
      	
               

            	
              Mailing
                Address

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    Exhibit
      B

    to
      Warrant

    

    Net
      Issue Election Notice

    

    

    To:____________________                                                                           Date:_________________________

    

    

    The
      undersigned hereby elects under
      Section 4 to surrender the right to purchase _______ Shares pursuant to
      this Warrant.  The certificate(s) for the shares issuable upon such
      net issue election shall be issued in the name of the undersigned or as
      otherwise indicated below.

     

    
      

      

      
        	
                 

              	 

      

      
        	
                 

              	
                Signature

              

      

      

      
        	
                 

              	 

      

      
        	
                 

              	
                Name
                  for Registration

              

      

      

      
        	
                 

              	 

      

      
        	
                 

              	
                Mailing
                  Address

              

      

      

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

     

    to
      Warrant

     

    ASSIGNMENT

    

    
      	
              (To
                be executed only upon assignment of Warrant Certificate)

            	
              WARRANT
                NO. ___

            

    

    

    For
      value
      received, hereby sells, assigns and transfers unto ________________________
      the
      within Warrant Certificate, together with all right, title and interest therein,
      and does hereby irrevocably constitute and appoint ____________________________
      attorney, to transfer said Warrant Certificate on the books of the within-named
      Company with respect to the number of Warrants set forth below, with full power
      of substitution in the premises:

    

    
      	
              Name(s)
                of Assignee(s)

            	
              Address

            	
              #
                of Warrants

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

     

    And
      if
      said number of Warrants shall not be all the Warrants represented by the Warrant
      Certificate, a new Warrant Certificate is to be issued in the name of said
      undersigned for the balance remaining of the Warrants registered by said Warrant
      Certificate.

     

     

    Dated:      ___________________________

     

    Signature:
      ___________________________                                                                

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      1

    

    The
      Current Value Per Share shall mean with respect to each share of Common Stock
      to
      be purchased:

    

    (i)           if
      the exercise is in connection with an underwritten public offering of the
      Company’s Common Stock, and if the Company’s registration statement relating to
      such public offering has been declared effective by the Securities and Exchange
      Commission, then the Current Value Per Share shall be the initial “Price to
      Public” specified in the final prospectus with respect to the
      offering;

    

    (ii)           if
      this Warrant is exercised after, and not in connection with an underwritten
      public offering of the Company’s Common Stock, and:

    

    (a)           if
      the Company’s Common Stock is traded on a securities exchange, the Current Value
      Per Share shall be the average of the closing prices over a five (5) day period
      ending three days before the day the net issuance election notice is delivered
      to the Company; or

    

    (b)           if
      actively traded over-the-counter, the Current Value Per Share shall be deemed
      to
      be the average of the closing bid and asked prices quoted on the NASDAQ system
      (or similar system) over the five (5) day period ending three days before the
      net issuance electionexh10-8_repagmt.htm

     

    
      

      

    

     

     

     

     

     

     

     

    EXHIBIT
      10.8

     

    AREA
      REPRESENTATIVE
      AGREEMENT BETWEEN EVOS USA, INC. AND

    HEALTHY
      FAST FOOD,
      INC. DATED DECEMBER 1, 2006

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    AREA
      REPRESENTATIVE AGREEMENT

    BETWEEN

    EVOS
      USA,
      INC.

    AND

    HEALTHY
      FAST FOOD, INC.

    

    

    

    

    Effective
      Date:  December 1st, 2006

    

    

    

    

    

    

                                                                     
Franchisor:                                                                           Area
      Representative:

    

                                                        
      EVOS USA,
      INC.                                                                   HEALTHY
      FAST FOOD, INC.

                                                        
      609 South Howard
      Avenue                                                      1075
      American Pacific, Suite C

                                                        
      Tampa,
      Florida  33606                                                            Henderson,
      Nevada 89074

    

    

    Territory:

    

    The
      states of
      Nevada, Arizona, Colorado, Utah, New Mexico, Oregon, Ohio, Kansas, Oklahoma
      and
      Texas.

    

    
      
        
          TAMPDOCS\519491.9
            11/21/06          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    TABLE
      OF CONTENTS

    Section                                                                                                                                                                                                                                    Page

     

    1.       DEFINITIONS                                                                                                                                                                                                                      2

     

    (a)     Competitive
      Business                                                                                                                                                                                                2

    (b)     Development
      Schedule                                                                                                                                                                                              2

    (c)     Development
      Year                                                                                                                                                                                                     2

    (d)     Franchise
      Agreement                                                                                                                                                                                                2

    (e)     Territory                                                                                                                                                                                                                   2

     

    2.       MATERIAL INDUCEMENTS                                                                                                                                                                                                 
      2

    (a)     Acknowledgments                                                                                                                                                                                                    
      2

    (b)     No
      Guarantees                                                                                                                                                                                                         3

    (c)     Representations                                                                                                                                                                                                       
      3

     

    3.       ADVANCES                                                                                                                                                                                                                        
      4

     

    (a)     Amounts                                                                                                                                                                                                                  
      4

    (b)     Reimbursement
      Funds                                                                                                                                                                                              
4

    (c)     Credits                                                                                                                                                                                                                     4

     

    4.       TERM
      AND
      RENEWAL                                                                                                                                                                                                        
4

     

    (a)     Term                                                                                                                                                                                                                       
      4

    (b)     Renewal                                                                                                                                                                                                                   4

     

    5.       APPOINTMENT                                                                                                                                                                                                                    5

     

    (a)     Appointment                                                                                                                                                                                                             5

    (b)     Reservation
      of
      Rights                                                                                                                                                                                               
5

    (c)     Alternative
      Channels of
      Distribution                                                                                                                                                                          6

    (d)     Referrals
      of
      Prospects                                                                                                                                                                                             
6

    (e)     Strict
      Performance                                                                                                                                                                                                   6

    (f)      Franchise
      Agreements                                                                                                                                                                                            
6

     

    6.       YOUR
      TRAINING
      STORE                                                                                                                                                                                                    
6

     

    7.       YOUR
      OFFICE                                                                                                                                                                                                                   
6

     

    8.       PERFORMANCE
      STANDARDS                                                                                                                                                                                          
7

     

    (a)     Development
      Schedule                                                                                                                                                                                             
7

    (b)     Best
      Efforts                                                                                                                                                                                                             
7

    (c)     Effect
      of
      Failure                                                                                                                                                                                                       
7

    (d)     Adjusted
      Territory                                                                                                                                                                                                     7

    (e)     Expiration/Effect                                                                                                                                                                                                      
      7

     

    9.       DISCLOSURE
      AND
      REGISTRATION                                                                                                                                                                                  
8

     

    (a)     Franchise
      Documentation                                                                                                                                                                                         
8

    (b)     Registration                                                                                                                                                                                                             
      8

    (c)     Delays                                                                                                                                                                                                                    
      8

    (d)     Information
      Requirements                                                                                                                                                                                         
8

    (e)     Broker
      Registration                                                                                                                                                                                                  
8

    (f)      Disclosure
      Documents                                                                                                                                                                                             
9

    (g)     Franchise
      Disclosure                                                                                                                                                                                               
9

     

    
      
        i      

          TAMPDOCS\519491.911/21/06        

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (h)     Franchise
      Agreements                                                                                                                                                                                              9

     

    10.     FRANCHISE
      SOLICITATION                                                                                                                                                                                              
10

     

    (a)     Recruiting
      and
      Screening                                                                                                                                                                                       
10

    (b)     Application
      Process                                                                                                                                                                                               
10

    (c)     Method
      of
      Approval                                                                                                                                                                                                 10

     

    11.     COMPENSATION                                                                                                                                                                                                              
      10

     

    (a)     Initial
      Franchise
      Fees                                                                                                                                                                                             
10

    (b)     Royalties                                                                                                                                                                                                                11

    (c)     Terms
      of
      Payment                                                                                                                                                                                                  
11

    (d)     Setoffs                                                                                                                                                                                                                   11

     

    12.     ANCILLARY
      ACTIVITIES                                                                                                                                                                                                    11

     

    13.     TRAINING                                                                                                                                                                                                                         
      12

     

    (a)     Area
      Representative
      Training                                                                                                                                                                                 12

    (b)     Initial
      Franchise Owner
      Training                                                                                                                                                                             12

    (c)     Additional
      Training                                                                                                                                                                                                  12

    (d)     Support
      Service
      Training                                                                                                                                                                                        
12

    (e)     Supplemental
      Training                                                                                                                                                                                            
12

    (f)      Costs
      and
      Expenses                                                                                                                                                                                                12

     

    14.     AR
      MANUAL                                                                                                                                                                                                                      12

     

    15.     SERVICE
      OBLIGATIONS                                                                                                                                                                                                    13

     

    16.     COMPUTER
      SYSTEM                                                                                                                                                                                                        
16

     

    17.     FRANCHISE
      OWNER
      INSPECTIONS                                                                                                                                                                               16

     

    18.     MARKS                                                                                                                                                                                                                             
      17

     

    (a)     Ownership
      and
      Goodwill                                                                                                                                                                                        
17

    (b)     Limitations
      on
      Use                                                                                                                                                                                                  
17

    (c)     Infringements
      and
      Claims                                                                                                                                                                                        17

    (d)     Discontinuance
      of
      Use                                                                                                                                                                                           
17

     

    19.     CONFIDENTIAL
      INFORMATION                                                                                                                                                                                       17

     

    (a)     Nature
      of
      Information                                                                                                                                                                                              
17

    (b)     Nondisclosure                                                                                                                                                                                                        
      18

    (c)     Use
      of
      Ideas                                                                                                                                                                                                          
18

    (d)     Exclusive
      Relationship                                                                                                                                                                                             18

     

    20.     IMAGE
      AND OPERATING
      STANDARDS                                                                                                                                                                           19

     

    (a)     Standards
      of
      Service                                                                                                                                                                                              
19

    (b)     Advertising                                                                                                                                                                                                             19

    (c)     Promotional
      Materials                                                                                                                                                                                             
19

    (d)     Judicial
      Actions                                                                                                                                                                                                      20

    (e)     Management
      of
      Business                                                                                                                                                                                      
20

    (f)      Minimum
      Staffing
      Levels                                                                                                                                                                                         
20

    (g)     Facilities
      and
      Equipment                                                                                                                                                                                         
20

     

    21.     INSURANCE                                                                                                                                                                                                                     
      20

     

    (a)     Coverage
      Requirements                                                                                                                                                                                          20

    
      
        ii
          TAMPDOCS\519491.911/21/06                                                                                                                                        

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)     Verifications                                                                                                                                                                                                          
      20

     

    22.     TRANSFER                                                                                                                                                                                                                       
      21

     

    (a)     By
      Us                                                                                                                                                                                                                    
21

    (b)     By
      You                                                                                                                                                                                                                  
21

    (c)     Conditions
      for Approval of
      Transfer                                                                                                                                                                        21

    (d)     Transfer
      to a Controlled
      Entity                                                                                                                                                                                22

    (e)     Effect
      of Consent to
      Transfer                                                                                                                                                                                   23

    (f)      Compliance
      with
      Laws                                                                                                                                                                                            
23

    (g)     Right
      of First
      Refusal                                                                                                                                                                                              
23

    (h)     Transfer
      Upon Death or
      Disability                                                                                                                                                                          23

    (i)      Management
      Upon Death or
      Disability                                                                                                                                                                   24

    (j)      Sale
      of
      Securities                                                                                                                                                                                                  
24

     

    23.     TERMINATION
      BY US / WITH
      CAUSE                                                                                                                                                                              24

     

    24.    
      RIGHTS AND OBLIGATIONS
      ON
      TERMINATION
      OR EXPIRATION                                                                                                                                
26

     

               
      (a)     Ours                                                                                                                                                                                                                     
26

    (b)     Disassociation                                                                                                                                                                                                       
      26

    (c)     Confidential
      Information                                                                                                                                                                                          
26

    (d)     Noncompetition                                                                                                                                                                                                       27

     

    25.     RELATIONSHIP
      OF THE
      PARTIES                                                                                                                                                                                    
27

     

    (a)     Independent
      Contractors                                                                                                                                                                                         27

    (b)     Identification                                                                                                                                                                                                         
      27

    (c)     Liabilities                                                                                                                                                                                                              
      27

    (d)     Indemnification
      by
      You                                                                                                                                                                                          
27

    (e)     Indemnification
      by
      Us                                                                                                                                                                                            
28

    (f)      Contributions                                                                                                                                                                                                        
      28

     

    26.     BUSINESS
      ORGANIZATION                                                                                                                                                                                              
28

     

    27.     NOTICES                                                                                                                                                                                                                         
      29

     

    28.     MISCELLANEOUS                                                                                                                                                                                                            
      29

     

    (a)     Severability;
      Substitution of Valid
      Provisions                                                                                                                                                          
29

    (b)     No
      Waiver                                                                                                                                                                                                            
29

    (c)     Binding
      Nature,
      Assignments                                                                                                                                                                                   29

    (d)     Headings                                                                                                                                                                                                               
      29

    (e)     Construction                                                                                                                                                                                                          
      29

    (f)      Further
      Instruments and
      Actions                                                                                                                                                                             30

    (g)     Complete
      Agreement;
      Modification                                                                                                                                                                        30

    (h)     Execution
      and
      Counterparts                                                                                                                                                                                  30

    (i)      Understanding
      of
      Agreement                                                                                                                                                                                 30

    (j)      Cumulative
      Remedies                                                                                                                                                                                              30

    (k)     Costs
      and Attorneys’
Fees                                                                                                                                                                                      
30

    (l)      Certain
      Definitions                                                                                                                                                                                                  
30

    (m)    Continuing
      Obligations                                                                                                                                                                                            
30

    (n)     Governing
      Law                                                                                                                                                                                                       
30

    (o)     Jurisdiction                                                                                                                                                                                                            
      31

    (p)     Arbitration
      Proceedings                                                                                                                                                                                           31

    (q)     Force
      Majeure                                                                                                                                                                                                       
31

    

     

    
      
        iii
          TAMPDOCS\519491.911/21/06                                                                                                                                        

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibits

     

    Exhibit
      A-
      Development Schedule

     

    Exhibit
      B-Projected
      Corporate Staffing Requirements

     

    Exhibit
      C-Form of
      Securities Sale Addendum

     

     

     

     

     

     

    
      
        iv
          TAMPDOCS\519491.911/21/06                                                                                                                                        

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    AREA
      REPRESENTATIVE AGREEMENT

     

    THIS
      AREA
      REPRESENTATIVE AGREEMENT (this “Agreement”) is
      effective on December 1st, 2006 (the
      (“Effective Date”) (regardless of the actual date of
      signature), by EVOS USA, INC., a Florida corporation
      (“we,” “us” or “our” or the
“Franchisor”),
      and HEALTHY FAST FOOD, INC.,
      a(n) Nevada corporation (collectively, “you,”
“your” or the “Area Representative”) (you and
      we are sometimes collectively referred to as the “parties” and
      each are sometimes separately referred to as a
“party”).

     

    BACKGROUND
      INFORMATION

     

    A.           EVOS®
      System. We
      and our
      affiliates have expended considerable time, effort and expense in developing
      the
      EVOS® concept which specializes in serving healthier fast food in a fast-casual
      environment (each an “EVOS® Restaurant” or
“Restaurant”).  EVOS® Restaurants operate under
      the
      Marks and Copyrights and under distinctive business formats, employee selection
      and training programs, methods, procedures, designs, layouts, signs, equipment,
      menus, use of certain soy-based products, recipes, trade dress, standards and
      specifications, all of which we may improve, further develop, change or replace
      or otherwise modify from time to time (the
“System”).

     

    We
      commission, use,
      promote and license in the operation of an EVOS® Restaurant certain trademarks,
      service marks and other commercial symbols, including the trade and service
      mark
“EVOS®” and other associated logos, copyrighted works, designs,
      Art, trade dress, trademarks, service marks, commercial symbols, and e-names,
      which will gain or have gained and continue to gain public acceptance and
      goodwill, and may create, commission, use and license additional trademarks,
      service marks, e-names, copyrighted works, Art and commercial symbols in
      conjunction with the operation of EVOS® Restaurants (collectively, the
“Marks”). We license them from an affiliate and sublicense them
      to you.

     

    We
      grant to persons
      who meet our qualifications and are willing to undertake the investment and
      effort, a Franchise to own and operate an EVOS® Restaurant offering the products
      and services we authorize and approve and utilizing the Marks and the
      System.  You have applied for a Franchise to own and operate an EVOS®
Restaurant and to act as our Area Representative in the
      Territory.  Your rights to own and operate an EVOS® Restaurant will be
      governed by a separate Franchise Agreement.

     

    B.           Area
      Representatives.  We
      appoint
      certain persons who meet our standards and qualifications and who are willing
      to
      undertake special efforts (“Area Representatives”), the right
      to solicit and screen prospective franchise owners for the right to own and
      operate EVOS® Restaurant franchises (“Franchises”), to assist
      us in rendering certain services to them, within a defined geographic territory
      (the “Territory”) and to perform certain other business
      activities and responsibilities that we require from time to
      time.  Individuals or entities granted Franchises are referred to as
“Franchise Owner(s).”  You want to serve as one of
      our Area Representatives.  The business you conduct under this
      Agreement is referred to as the “Area Representative
      Business.”

     

    OPERATIVE
      TERMS

     

    ACCORDINGLY,
      the parties agree as follows:

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.           DEFINITIONS

     

    The
      following terms
      have the following meanings in this Agreement:

     

    (a)           COMPETITIVE
      BUSINESS.  The
      term “Competitive Business” as used in this Agreement means any
      business or facility owning, operating, managing, granting, offering or
      soliciting franchises or licenses to others to do so, any quick service
      restaurant (other than an EVOS® Restaurant operated under a franchise agreement
      with us) that offers food products for dining on-site, catering, delivery
      service, kiosk-type or take-out of food products where 50% or more of the menu
      items consist of healthier fare, or organic or natural foods, soy-based or
      lower
      carb foods, or any type of deli or fast foods and
      beverages which are then the same or similar as those
      offered by EVOS® Restaurants.  A Competitive Business does not include
      restaurants that offer primarily fine dining or where patrons order from wait
      staff from menus at their tables.

     

    (b)           DEVELOPMENT
      SCHEDULE.  The
      words “Development Schedule” mean the minimum number of
      franchised EVOS® Restaurants to be open and in operation on the last day of any
      Development Year in the Territory.

     

    (c)           DEVELOPMENT
      YEAR.  The
      first Development Year begins 6 months from the Effective Date (the
“Development Commencement Date”) and ends on the first day of
      the month following 12 full calendar months following the Development
      Commencement Date.  Then, each subsequent Development Year begins on
      each anniversary of the first day of Development Year 2 (i.e., if the
      Development Commencement Date is April 15, 2007, then Development Year 2 begins
      on May 1, 2008).

     

    (d)           FRANCHISE
      AGREEMENT.  The
      words “Franchise Agreement” mean the form of Franchise
      Agreement we use from time to time (including all related exhibits, riders,
      addenda, amendments and guarantees), in granting Franchises.

     

    (e)           TERRITORY.  The
      word “Territory” means the geographic area consisting of the
      states of Nevada, Arizona, Colorado, Utah, New Mexico, Oregon, Ohio, Kansas,
      Oklahoma and Texas.

     

    2.           MATERIAL
      INDUCEMENTS

     

    (a)           ACKNOWLEDGMENTS.  We
      are
      presenting this Agreement to you because you expressed the desire to own and
      operate an Area Representative Business.  You understand that the
      terms of this Agreement are reasonably necessary to maintain our high standards
      of quality and service and the uniformity of those standards at each Franchise
      and to protect and preserve the goodwill of the Marks.  In signing
      this Agreement, you acknowledge.

     

    (i)           The
      importance of operating your Area Representative Business in strict conformity
      with our standards.

     

    (ii)           That
      you have conducted an independent investigation of the Area Representative
      Business and recognize that, like any other business, its nature may evolve
      and
      change over time.

     

    (iii)           That
      an investment in an Area Representative Business involves business risks,
      responsibilities and obligations.

     

    (iv)           That
      the success of this business venture is primarily dependent on your business
      abilities and efforts.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (v)           You
      will comply with and/or assist us to the fullest extent possible in our efforts
      to comply with Executive Order 13224 issued by the President of the United
      States, the USA PATRIOT Act, and all other present and future federal, state
      and
      local laws, ordinances, regulations, policies, lists and any other requirements
      of any governmental authority addressing or in any way relating to terrorist
      acts and acts of war (the “Anti-Terrorism Laws”).

     

    (vi)           Neither
      you nor any of your owners, employees, or agents, property or interests is
      subject to being “blocked” under any of the Anti-Terrorism Laws and that neither
      you nor they are otherwise in violation of any of the Anti-Terrorism
      Laws.

     

    (b)           NO
      GUARANTEES.  We
      expressly disclaim the making of, and you acknowledge that you have not received
      or relied upon, any warranty or guarantee, express or implied, as to the
      revenues, sales, profits or success of the business venture contemplated by
      this
      Agreement or the extent to which we will continue to develop and expand the
      network of Area Representative Businesses.  You acknowledge
      that:

     

    (i)           Any
      statements regarding the potential or probable revenues, sales or profits of
      the
      business venture are made solely in the Franchise Offering Circular, if any,
      delivered to you prior to signing this Agreement.

     

    (ii)           Any
      statements regarding the potential or probable revenues, sales or profits of
      the
      business venture or statistical information regarding any existing Area
      Representative Business or any Franchise that is not contained in our Franchise
      Offering Circular is unauthorized, unwarranted and unreliable, and should be
      reported to us immediately.

     

    (iii)           Any
      information you obtained from other owners of Area Representative Businesses
      relating to revenues, sales, profits or otherwise does not constitute
      information obtained from us and we do not warrant or guarantee the accuracy
      of
      any such information.

     

    (iv)           You
      have not received or relied on any representations about the Area Representative
      Business made by us, or our officers, directors, employees or agents, that
      are
      contrary to the statements made in our Franchise Offering Circular or to the
      terms of this Agreement.

     

    (c)           REPRESENTATIONS.  To
      induce us to enter into this Agreement with you, you represent and warrant
      that:

     

    (i)           In
      all of your dealings with us, our officers, directors, employees and agents
      act
      only in a representative capacity and not in an individual
      capacity.

     

    (ii)           This
      Agreement and all business dealings between you and such individuals as a result
      of this Agreement, are solely between you and us.

     

    (iii)           You
      have made no misrepresentations in obtaining your rights under this Agreement
      including in the application that you provided to us.

     

    (iv)           You
      have read this Agreement and our Franchise Offering Circular in their
      entirety.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3.           ADVANCES

     

    (a)           AMOUNTS.  
You
      have already advanced us funds in the amount of $35,000 in July,
      2006.  On signing this Agreement, you will pay us an additional
      $25,000 (the “Reimbursement Funds”), so that the total amount
      advanced will be $60,000 in cash.

     

    (b)           REIMBURSEMENT
      FUNDS.  We
      are
      using the Reimbursement Funds to reimburse our expenses or pay them, as the
      case
      may be, associated with legal fees and governmental filing fees related to
      entering into this Agreement and preparing the related disclosure
      documents.  However, we will not disburse any of the Reimbursement
      Funds until we have applied for registration in the states of California and
      Washington so that you can solicit franchises there.  We will file the
      applications in those states within 30 days of the Effective Date.

     

    (c)           CREDITS.  In
      exchange for the advances, we will waive the initial franchise fee otherwise
      due
      us from you or your affiliates for 11 new Restaurants that you or your
      affiliates will own and operate in the Territory.  Once we have
      received all of the advances, and in exchange for certain other agreements
      between the parties otherwise described in this Agreement, we release you from
      any other obligation you may have to reimburse us for any expenses that we
      incurred in connection with the preparation and development of this Agreement
      and the disclosure documents associated with it.

     

    4.           TERM
      AND RENEWAL.

     

    (a)           TERM.  The
      Effective Date of this Agreement is shown on the cover, regardless of the actual
      date of signatures of the parties.  This Agreement commences on its
      Effective Date and will continue until the end of the 10th Development Year;
      unless terminated sooner in accordance with this Agreement (the
“Term”).  The word “Term” includes
      the time period of any renewal or extension of this Agreement.

     

    (b)           RENEWAL.  At
      the
      expiration of the Term (or each successive renewal Term), if you are not then
      in
      breach of this Agreement, you may renew this Agreement for 2 renewal periods
      of
      5 years if you fulfill all of the following conditions:

     

    (i)           You
      have notified us 180 days prior to the end of the Term or renewal period of
      your
      intent to renew.

     

    (ii)           You
      and we enter into our then-current form of Area Representative
      Agreement.

     

    (iii)           You
      and we mutually agree on a development schedule (if any) for EVOS® Restaurants
      in the Territory during the renewal term (the “Successor
      Schedule”).

     

    (iv)           You
      must reimburse us for the expenses we incur associated with the renewal (with
      the expectation, but no guarantee, that they will not exceed
      $15,000).  No renewal fee will be charged for Restaurants already
      developed in the Territory before the end of the period.

     

    (v)           You
      sign and deliver to us a general release in our then-standard form.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    5.           APPOINTMENT

        (a)           APPOINTMENT.  We
      appoint you as our Area Representative for the Term and you agree to the
      appointment.  During the Term:  (i) we grant you the
      right, and you accept the obligation, to actively and continually solicit
      prospective franchise owners and assist us in rendering the services described
      in this Agreement to our Franchise Owners whose EVOS® Restaurants are physically
      located within the Territory as long as you are in full compliance with this
      Agreement; and (ii) you agree to devote your full time and attention, and to
      utilize your best efforts, to the operation of your Area Representative
      Business, to enhance the sales and operations of EVOS® Restaurants within the
      Territory, to solicit prospective franchise owners, and to fulfill this
      Agreement, other than the time you devote to the operation of EVOS® Restaurants
      owned by you or your affiliates.  However, notwithstanding the
      foregoing, you acknowledge and agree that the operations of your or your
      affiliate-owned EVOS® Restaurants must not be such a burden or limitation on
      your resources so that it materially detracts from the operation of your Area
      Representative Business.  You agree to acquire the managerial and
      financial resources to operate your own and affiliated EVOS® Restaurants and
      fully exploit the opportunities available to you and your Area Representative
      Business.

     

    (b)           RESERVATION
      OF RIGHTS.  On
      behalf of us and our affiliates, we retain the right to do the following and
      without any compensation to you:

     

    (i)           To
      solicit prospective franchise owners and grant other persons Franchises, or
      other rights to operate EVOS® Restaurants: (x) through national or regional
      advertising, trade shows or conventions, or using or through the Internet,
      Intranet or other forms of e-commerce or through similar means (but we will
      refer leads from within your Territory to you); and/or (y) anywhere outside
      of the Territory.

     

    (ii)           To
      solicit Area Representatives, developers and brokers for the purpose of
      expanding franchises in locations other than the Territory, or within the
      Territory if doing so does not materially interfere with your rights and
      compensation under this Agreement.

     

    (iii)           To
      own and operate EVOS® Restaurants ourselves or through affiliates anywhere other
      than in your Territory.

     

    (iv)           Sell,
      solicit, recruit and provide services for EVOS® Restaurants or any franchised
      business not defined as an EVOS® Restaurant in this Agreement.

     

    (v)           To
      sell, and provide the services authorized for sale by, EVOS® Restaurants under
      the Marks or other trade names, trade­marks, service marks and commercial
      symbols through similar or dis­similar channels (like telephone, mail order,
      kiosk, co-branded sites and sites located within other retail businesses,
      Intranet, Internet, web sites, wireless, email or other forms of e-commerce)
      for
      distribution within and outside of the Territory and pursuant to such terms
      and
      conditions as we consider appropriate.

     

    (vi)           To
      solicit prospective franchise owners for, and own and operate, businesses and
      restaurants of any other kind or nature, anywhere.

     

    (vii)                      To
      own, operate, and develop other businesses (including other restaurant concepts)
      in your Territory (other than a Competitive Business).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (c)           ALTERNATIVE
      CHANNELS OF DISTRIBUTION.  To
      the
      extent we deem practicable, we may give you the opportunity to participate
      in
      the sale of other services through other distribution channels
      or to
      Franchises in the Territory; but we are not obligated to do
      so.  However, you may not participate in other services or areas of
      distribution, without our prior written approval.  You acknowledge
      that:  (i) there may be Franchise Agreements or other agreements
      already in effect between us and Franchise Owners or distributors in the
      Territory; and (ii) the rights granted to you under this Agreement are subject
      to the rights of existing Franchise Owners and distributors in the
      Territory.

     

    (d)           REFERRALS
      OF PROSPECTS.  We
      will refer to you, as we deem appropriate, all information that we obtain from
      prospective franchise owners who want to operate Franchises within the Territory
      regardless of the source.  You must at your
      expense:  (i) complete the solicitation and background
      investigation of such prospective franchise owners; (ii) send to us all
      information that you obtain from prospective franchise owners who want to
      operate outside of the Territory; and (iii) complete all character profiles
      and
      other procedures we direct from time to time.

     

    (e)           STRICT
      PERFORMANCE.  You
      must perform your obligations under this Agreement strictly in accordance with
      the terms and provisions of this Agreement, and our policies as they may be
      developed, modified and supplemented from time to time, and only within the
      Territory, unless we notify you that you may operate in a contiguous geographic
      area to your Territory.

     

    (f)           FRANCHISE
      AGREEMENTS.  You
      acknowledge that:  (i) you are familiar with our current forms of
      Franchise Agreement; and (ii) we may modify or amend our forms of Franchise
      Agreement and all terms of granting franchises at any time.  Terms not
      otherwise defined in this Agreement have meanings as defined in the Franchise
      Agreement.

     

    6.           YOUR
      TRAINING STORE

     

        During
      the
      Term, you agree to own, operate and maintain at all times at least 1 franchised
      EVOS® Restaurant in the Territory (the “Training
      Store”).  Your Store located at 10895 S. Eastern Avenue,
      Henderson, Nevada 89052 meets our standards as a Training Store.  You
      must maintain the Training Store as a certified training facility based on
      the
      standards we develop from time to time throughout the term of this
      Agreement.  You recognize that the Training Store must meet our
      requirements for a training facility and therefore may be more expensive to
      develop, construct, own and operate than a typical EVOS® Restaurant. If at any
      time, your Training Store does not meet our certification as a training
      facility:  (i) you will be in breach of this Agreement; and (ii) we
      may cancel, and you will then forfeit, any compensation that we otherwise owe
      you pursuant to this Agreement for any Franchise Owner who you are not able
      to
      train at your Training Store.

     

    7.           YOUR
      OFFICE

     

    During
      the Term,
      you are required to maintain an office at a location we approve (your
“Office”) and that is sufficient for you to fulfill your
      responsibilities under this Agreement and project a suitable image for
      prospective Franchise Owners.  Thus, your Office must meet such
      reasonable standards for location, layout and décor as we develop from time to
      time.  We approve your current Office but you and we agree that it is
      temporary only and you will obtain an Office separate from other businesses
      no
      later than the end of Development Year 2.  We will not unreasonably
      withhold approval of any future Office.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    8.           PERFORMANCE
      STANDARDS

     

    During
      the Term you
      must at all times faithfully, honestly and diligently perform your obligations
      and exert your best efforts to promote and enhance your Area Representative
      Business
      and the
      sale, development and servicing of Franchises and EVOS® Restaurants within the
      Territory.

     

    (a)           DEVELOPMENT
      SCHEDULE.  You
      agree that your rights under this Agreement are contingent on your opening
      and
      maintaining the number of EVOS® Restaurants required by the Development
      Schedule.  You must replace any Franchise that terminates or expires
      or any EVOS® Restaurant that closes, within the Territory in order to maintain
      the number of EVOS® Restaurants required in the Development
      Schedule.  In addition to the foregoing, you must develop Stores
      within the Territory so that all of the states within the Territory experience
      the development and opening of EVOS® Restaurants.  In this regard, the
      Territory will automatically be adjusted to eliminate any states in the
      Territory if you have not achieved the minimum development in such
      state(s).

     

    (b)           BEST
      EFFORTS.
      You must use your
      best efforts to ensure that EVOS® Restaurants in the Territory meet our
      standards and specification for quality and performance (“System
      Standards”).

     

    (c)           EFFECT
      OF FAILURE.  If
      you
      do not meet or exceed the Development Schedule, we may either:

     

    (i)           Reduce
      the Territory to an area that we believe you are able to adequately supervise
      (the “Adjusted Territory”) (which may result in ending your
      rights to service some Restaurants you have been servicing and assigning those
      servicing obligations and the related compensation to others or assuming them
      ourselves).

     

    (ii)           Terminate
      this Agreement otherwise in accordance with its terms.

     

    (d)           ADJUSTED
      TERRITORY.  If
      we
      reduce the Territory to an Adjusted Territory, then:

     

    (i)           You
      will continue to perform all of your duties and obligations under this Agreement
      with respect to Franchises for EVOS® Restaurants that opened in the Territory
      prior to adjustment until further notice from us.

     

    (ii)           You
      will no longer market or solicit Franchise Owners for the purchase of EVOS®
Restaurants or provide related services outside of the Adjusted
      Territory.

     

    (iii)           You
      will not be paid any compensation relating to EVOS® Restaurants operating
      located outside of the Adjusted Territory after the date of
      adjustment.

     

    (e)           EXPIRATION/EFFECT.  If
      this Agreement expires or terminates, you will no longer provide any services
      whatsoever to, transact business with or engage in any transactions with, any
      Franchise or EVOS® Restaurant operating in the Territory, including any EVOS®
Restaurant developed or in development or any of our other franchise owners
      or
      Area Representatives.  Any carryover of your activities as our Area
      Representative will not limit or restrict our rights under this Agreement in
      any
      way.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    9.           DISCLOSURE
      AND REGISTRATION

     

    (a)           FRANCHISE
      DOCUMENTATION.  We
      offer Franchises through a set of documents, including, franchise agreements,
      offering circulars and related or ancillary documents necessary to offer or
      sell
      Franchises, or register the Franchise in compliance with state and federal
      franchise or business opportunity laws (the
“Documentation”).  You will review the Documentation
      in detail so
      that you are
      fully familiar with them.  You recognize that we may modify or amend
      the Documentation at any time without notice or obligation to you; however,
      we
      will promptly send you copies.

     

    (b)           REGISTRATION.  If
      your activities as our Area Representative require the preparation, amendment,
      registration or filing of any Documentation or other documents under applicable
      franchise, business opportunity or related laws, then you must not solicit
      prospective franchise owners until we have: (i) registered the Franchise in
      the
      applicable jurisdictions; (ii) provided you with the Documentation necessary
      for
      you to solicit prospective franchise owners; and (iii) notified you that the
      registration is in effect.  You must stop soliciting prospective
      franchise owners immediately at any time that we notify you that the
      registration of the Franchise is not then in effect or the Documentation is
      not
      in compliance with applicable law.  We will prepare the Documentation
      and file any materials to be registered with any state regulatory
      agency.  We will bear the costs of the preparation of the
      Documentation as well as registration and filing.

     

    (c)           DELAYS.  If
      we
      have not completed the annual update of the Franchise Offering Circular or
      if we
      are required, but have not filed applications to offer and sell Franchises
      in
      any state in the Territory that requires franchise sales registration as of
      the
      effective date of this Agreement, for 90 or more consecutive days, then the
      Development Schedule will be modified to provide you with additional time (on
      a
      pro rata basis) for you to comply with the Development Schedule for that
      particular Franchise (for example, if we have not registered a Franchise in
      a
      particular state in the Territory that requires it for 180 consecutive days,
      then the Development Schedule pertaining to that Franchise will be extended
      180
      days).  If we, through no fault of yours, lose our rights to solicit
      and/or sell Franchises in any state in the Territory, we will modify the
      Development Schedule to accommodate you for the lost opportunity in that
      state.  However, you understand that it is common for temporary lapses
      in the ability to offer and sell Franchises due to the need for periodic
      modifications, updates and regulatory approvals.  Thus, lapses of
      consecutive time periods of 90 days or less will not require any modification
      of
      the schedule.

     

    (d)           INFORMATION
      REQUIREMENTS.  In
      connection with fulfilling legal and other franchise requirements, you
      must:

     

    (i)           Provide
      to us all information reasonably required by us to prepare all Documentation,
      including requisite offering circulars and ancillary documents for the offering
      of Franchises in the Territory.

     

    (ii)           Sign
      and return to us all Documentation reasonably required by us, or our designee,
      for the purpose of registering the offer of Franchises throughout the
      Territory.

     

    (iii)           Review
      all Documentation materials we prepare on your behalf.  We are not
      liable for any errors or omissions which may occur in the preparation of those
      materials, as long as you have approved them.

     

    (e)           BROKER
      REGISTRATION.  You
      (and, if necessary, your owners and officers, if any) will register and/or
      obtain licensure as a franchise broker, real estate broker, business broker
      or
      otherwise in any jurisdiction in which you are required to do so, and maintain
      such registrations or licenses throughout the Term, at your cost and
      expense.  You must not solicit prospective franchise owners
      until:  (i) such registration or license, if necessary, is effective;
      and (ii) you have provided to us documentary proof of its
      effectiveness.  You must not engage or utilize any franchise brokers
      for any reason without our prior written approval.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (f)           DISCLOSURE
      DOCUMENTS.  You
      must comply with all applicable federal and state laws, rules and regulations
      governing the offering of Franchises in your Territory.  In this
      connection, you must:

     

    (i)           Furnish
      to prospective franchise owners only Documentation we designate, including
      the
      then-current form of franchise offering circular we have authorized for use
      within your Territory, along with such promotional material that we have
      previously approved.

     

    (ii)           Comply
      with all requirements for timing of delivery of the Documentation and obtaining
      and delivering to us the original signed acknowledgment of receipt for each
      franchise offering circular you deliver to any prospective franchise
      owner.

     

    (iii)           Make
      no representations or other statements that conflict with any of the information
      contained in the franchise offering circular delivered to the prospective
      franchise owner and within our then-current Franchise Agreement.

     

    (iv)           Make
      no earnings claims, or projections, or provide any information with regard
      to
      sales, revenues, income, costs or expenses relating to any Franchise or any
      individual EVOS® Restaurant unless in accordance with the provisions of the
      franchise offering circular to be provided to prospective franchise
      owners.

     

    (v)           Promptly
      notify us of any material information or event which comes to your attention
      that may require disclosure in the franchise offering circular.

     

    (vi)           Use,
      display, publish and distribute for purposes of soliciting prospective franchise
      owners, only advertising, marketing and promotional materials that we have
      previously approved as acceptable for use in your Territory.

     

    (g)           FRANCHISE
      DISCLOSURE.  We
      will make reasonable efforts to provide you with copies of correspondence,
      reports and data issued by each Franchise Owner to us (the
“Reports”) if:  (i) we determine them to be useful to
      your operation of your Area Representative Business; and (ii) the Reports are
      the type of information which Franchise Owners provide to us under their
      Franchise Agreements.  We will also report to you sufficient data with
      each compensation payment to enable you to verify the amounts
      payable.  We may provide this information electronically only at our
      option.

     

    (h)           FRANCHISE
      AGREEMENTS.  When
      providing information to prospective franchise owners and in assisting in the
      closing of any sale of a Franchise, you must only provide our then-current
      form
      of Franchise Agreement and any ancillary Documentation that we have approved
      for
      use within your Territory.  You have no authority to make any changes,
      additions or deletions of any kind to them. You must not make any financial
      projections to prospective franchise owners or review or comment on any prepared
      or submitted by prospective franchise owners.  The only financial
      disclosures, if any, made to prospective franchise owners are contained in
      the
      Documentation.  You have no authority to, and agree not to, assist,
      advise, or solicit any Franchise Owner’s efforts to operate Franchises in any
      method inconsistent with the System. You are not authorized to enter into
      Franchise Agreements on our behalf.  Franchise Agreements and any
      ancillary agreements are not binding on us until we sign the Franchise Agreement
      and we can refuse to do so at any time.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      10.           FRANCHISE
        SOLICITATION

       

    

        (a)           RECRUITING
      AND SCREENING.  You
      are responsible for advertising for, recruiting, soliciting and screening
      prospects for Franchises within the Territory according to the standards,
      materials, policies and procedures we develop and announce from time to time
      which also may be specified in the AR Manual.  You must only use the
      application forms and other documents we specify for each prospect that wants
      to
      purchase a Franchise (an “Applicant”).

     

    (b)           APPLICATION
      PROCESS.  You
      must maintain written or electronic records of all contacts with all prospects
      for Franchises regardless whether such contact rises to the level of such
      prospect becoming an Applicant.  You must provide written progress
      reports as we request from time to time.  You must assist Applicants
      in completing the Application.  We may inspect your records in this
      regard at any time, with or without notice.  You must perform the due
      diligence, preliminary investigation and evaluation as we specify from time
      to
      time in the AR Manual or otherwise.  You must promptly submit all
      Applications for Franchises that you receive to us along with all information
      we
      require regarding the Applicant and maintain a copy with your
      records.

     

    (c)           METHOD
      OF APPROVAL.  We
      will approve or disapprove Applicants by delivering notice to you (which may
      be
      electronically delivered).  We will use our best efforts to deliver
      such notices to you within 30 days after we receive the complete Application,
      and other materials we customarily require of Applicants or those we
      specifically request.  We will condition approval by requiring an
      acceptable personal interview of an Applicant or its owners.  If we
      perform the interview, we will be responsible for our expenses in doing so
      and
      we may require the Applicant to meet us at our headquarters.  We may
      require you to conduct initial interviews on our behalf; however, we retain
      the
      ultimate determination on whether to grant such Applicant a
      Franchise.  If we determine that the Applicant possesses sufficient
      financial and managerial capability and meets the other criteria then utilized
      by us in the award of Franchises within the Territory, we will offer to award
      one to the Applicant.  The award of the Franchise will be evidenced by
      our signing and delivery of the Franchise Agreement, after we have received
      it
      signed by the Applicant and payment of the appropriate fees.

     

    11.           COMPENSATION.

     

    During
      the Term, we
      will pay you compensation, based on amounts we receive from Franchises sold,
      located or operating in your Territory, as follows (collectively,
“Compensation”):

     

    (a)           INITIAL
      FRANCHISE FEES.  Starting
      with the ninth new Franchise sold in your Territory, we will pay you an amount
      equal to 50% of the Initial Franchise Fee (or similar fee) paid to us for EVOS®
Restaurants located in the Territory, for which you are responsible and the
      procuring cause for the sale and for which you provide training.  To
      the extent we refund any or all of the Initial Franchise Fee paid to us, you
      must reimburse us the compensation we paid to you pertaining to
      it.  For the first 8 Franchises sold in the Territory, we will retain
      the full initial franchise fees and use the portion we otherwise would have
      paid
      you to provide the EVOS® corporate opening team as described in Section 15(a)
      below.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b)           ROYALTIES.  We
      will pay you an amount equal to 50% of the monthly Royalties we receive from
      all
      EVOS® Restaurants located in the Territory, subject to the performance
      adjustments below (“Royalty Compensation”):

     

    (i)           Performance
      Measures:  We will measure both your performance and that of
      the Stores in your Territory.  We will adjust Royalty Compensation if
      you or the Stores in your Territory do not meet our minimum
      standards.  Currently, this requires an 85% or better score on our
      Service Assurance Reports (“SAR”) and a 75% or better
score
      on our Quality Assurance Reports (“QAR”), but we may vary both
      the scoring and the evaluation criteria from time to time. We will apply the
      same evaluation criteria and scoring in your Territory as we do elsewhere both
      for franchises and our company-owned units.  We will measure
      performance standards on roughly a quarterly basis of 13 weeks (a
“Period”).

     

    (ii)           Store
      Averages:  If you do not meet our performance standards
      (based on the average for all Stores in your Territory) during the immediately
      preceding Period, then the amount due for Royalty Compensation for the next
      Period will be reduced to 75% of the amount otherwise due (75% of 50% of the
      Royalties we received).  For example, if the average score for the
      Stores in your Territory is less than our minimum during Period 3, you will
      be
      paid 75% of the Royalty Compensation otherwise due you for Period 4 and
      subsequent periods until the Stores in your Territory achieve an average score
      of our minimum (currently 75% QAR; 85% SAR) or better, at which point we will
      begin paying Royalty Compensation without such adjustments for the period after
      you meet the standards.

     

    (iii)           Per
      Store:  In addition, the Royalty Compensation will be
      adjusted for individual Stores not meeting the performance
      standards.  If any Stores in your Territory do not achieve the minimum
      required score for any Period, then you will have the next Period to correct
      the
      problems.  If, at the end of the next Period, the Store still scores
      below the minimum required score, then the Royalty Compensation will be reduced
      such that the Royalties from the substandard Store are not counted towards
      the
      50% calculation for the Royalty Compensation.  Once a Store achieves
      or exceeds the minimum required score, then the adjustment will stop starting
      the next period.

     

    (c)           TERMS
      OF PAYMENT.  During
      the Term, we will pay such amounts to you on or before the 20th day of
      each
      accounting period as follows:  (i) based on the amounts we
      collect during the immediately preceding accounting period for Royalties; and
      (ii) based on the openings of each Restaurant we have approved in the Territory
      during the immediately preceding accounting period.  We alone
      determine whether or not to charge particular fees, collection efforts to
      utilize and whether to waive, write-off or forgive payments due us.

     

    (d)           SETOFFS.  We
      may
      setoff against any compensation we owe you, any amount that you owe us,
      including (without limitation) for any refunds we authorize (whether or not
      required by contract (i.e., a refunded initial franchise fee)), any advances
      and
      marketing contributions.

     

    12.           ANCILLARY
      ACTIVITIES

     

    You
      must disclose
      to us any and all income, fees, monies earned, and any other type of
      remuneration, compensation or consideration you or your affiliates receive
      by,
      directly or indirectly, selling, providing, brokering, or assisting in the
      sale
      of goods or services to Franchise Owners (an “Ancillary
      Activity”) in connection with your Area Representative Business,
      (including real estate commissions) but excluding anything we pay to
      you.  You will not engage in any Ancillary Activities, or receive any
      consideration for doing so, unless and until you have notified us and we have
      approved such activity.  You will not engage in any such Ancillary
      Activity that we have not approved in writing.  You must also disclose
      to us on a quarterly basis the information we request concerning the earnings
      you or your affiliates receive from Ancillary Activities.  You consent
      to our disclosure of such information as required by law.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    13.           TRAINING

        (a)           AREA
      REPRESENTATIVE TRAINING. We
      will
      furnish initial training on the operation of an Area Representative Business
      (“Area Representative Training”) to you and up to 3 of your
      personnel (or, if you are a Business Entity, up to 4 of your owners and/or
      personnel, employees or agents).  You agree that at least 1 of your
      personnel will attend and complete Area Representative Training within 30 days
      of when we inform you it is available.

     

    (b)           INITIAL
      FRANCHISE OWNER TRAINING.  You
      have already completed the initial training that we provide to Franchise
      Owners.

     

    (c)           ADDITIONAL
      TRAINING.  You
      must attend and satisfactorily complete any additional Training that we require
      of Franchise Owners or Area Representatives (the “Additional
      Training”).  We will not charge for Additional Training but
      you will be responsible for your travel and living expenses.  To the
      extent we deem feasible, we will attempt to deliver Additional Training in
      ways
      to reduce unnecessary travel costs.

     

    (d)           SUPPORT
      SERVICE TRAINING.  All
      of
      your support personnel who provide franchise support services to Franchise
      Owners must complete our Support Service Training that we require of all field
      supervisors satisfactorily at your expense.  You must pay our
      then-current fee for providing Support Service Training (the “Support
      Service Training Fee”) which is due and payable prior to attendance.
      The Support Service training Fee is currently $2,000 per person.  To
      the extent we deem feasible, we will attempt to deliver some of this training
      in
      ways to reduce unnecessary travel costs.

     

    (e)           SUPPLEMENTAL
      TRAINING.
      During the Term,
      you also must attend supplemental and refresher training programs as we require
      for all Area Representatives and Franchise Owners.   Any charges
      will be on a uniform cost recovery basis.  Furthermore, you must
      attend all meetings of Area Representatives, at your expense, at such locations
      as we designate.  To the extent we deem feasible, we will attempt to
      deliver some of this training in ways to reduce unnecessary travel
      costs.

     

    (f)           COSTS
      AND EXPENSES.  You
      are solely responsible for your compensation, travel, lodging and living
      expenses incurred in connection with your attendance at any training
      program.

     

    14.           AR
      MANUAL

     

    We
      will give you
      access to (via electronic means or otherwise), 1 or more manuals to guide and
      assist you in fulfilling your duties and responsibilities under this Agreement
      and as our Area Representative (collectively, the “AR Manual”),
      as soon as it is completed.  We may periodically amend and supplement
      the AR Manual as we see fit.  You will abide by such changes as you
      are notified.  Changes will be made on a uniform basis.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    15.           SERVICE
      OBLIGATIONS

     

    You
      must perform
      the following services, in the manner and to the extent we designate from time
      to time, on our behalf with respect to Franchise Owners of EVOS located or
      to be
      located in the Territory (or to the extent we designate outside the Territory
      during the Interim):

     

        (a)    Provide
      to all
      Franchise Owners (i) all initial training for the time period and covering
      the operations and procedures as we specify (in the AR Manual or otherwise)
      at
      your Training Store, and (ii) supplemental and refresher training at your
      Training Store; all in accordance with the timing, content and standards we
      periodically prescribe.  If the Franchise Owner does not
      satisfactorily complete any of the training, the Franchise Agreement will be
      terminated immediately.  Furthermore, if we determine that you have
      not trained a Franchise Owner to our satisfaction and we provide the training
      ourselves or arrange for someone else to do so, then we will charge you $10,000
      due on receipt of invoice plus any out-of-pocket costs we incur for doing so,
      but the total charge and costs will not exceed the greater of $17,500 or 1/2
      of
      the initial franchise fee paid by that Franchise Owner, and we will provide
      such
      training to that Franchise Owner.  We will provide the EVOS® corporate
      opening team for the first Store to open by the first 8 new Franchise Owners
      sold in the Territory.

    
       

      (b)           Schedule
        and coordinate all training of all Franchise Owners with the Franchisor,
        if and
        to the extent we provide it.

       

      (c)           Consult
        and advise Franchise Owners with site selection and lease negotiation of
        their
        EVOS® Restaurants.  However, we will retain ultimate authority to
        approve or disapprove all real estate related decisions requiring our approval
        under the Franchise Agreement.  We will notify you of our decision
        within 10 business days of receiving the complete site evaluation package
        from
        you.

       

      (d)           Develop
        and maintain relationships with landlords for purposes of obtaining sites
        for
        EVOS® Restaurants and coordinating efforts with Franchise Owners to lease such
        sites.

       

      (e)           Notify
        vendors and, if necessary, locate new vendors approved by us for the Franchises
        in the Territory and coordinating distribution and purchasing programs on
        a
        Territory basis under our direction and support.

       

      (f)           Provide
        grand opening support, including, but not limited to coordinating marketing
        with
        local television, radio, newspapers and trade publications.

       

      (g)           Develop
        relationships with landlords, contractors, equipment suppliers and service
        providers in the Territory (acceptable to and approved by us) and assist
        in
        supervision of the build-out for the EVOS® Restaurants in the
        Territory.

       

      (h)           Assist
        us in developing programs for suppliers and distributors of approved products
        to
        Franchise Owners’ Territory.

       

      (i)           Provide
        such pre-opening and post-opening assistance for each new EVOS® Restaurant that
        we prescribe from time to time.

       

      (j)           Be
        responsible for periodic but no less than monthly monitoring of the operation
        of
        EVOS® Restaurants established in your Territory and informing us, whether those
        EVOS® Restaurants
        meet
        with our system standards in design, construction, appearance and function
        as
        specified in our Manual, including but not limited to ensuring that all food
        is
        properly stored, inventory is properly rotated, all recipes are adhered to,
        all
        food products are sliced and weighed according to System Standards, the
        appearance of the presentation of the food to the customer meets our System
        Standards, all areas of the facility, inside and out, are cleaned and maintained
        according to System Standards, and all equipment is functioning
        properly.

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (k)           Actively
        and continuously market and promote through advertising (or otherwise as
        we
        direct) and solicit prospective franchise owners in your Territory according
        to
        an annual plan and budget that you develop and submit for our approval no
        later
        than October 31 for the upcoming Development Year.  You will bear all
        costs of soliciting prospective franchise owners and developing prospective
        franchise owners into EVOS® Restaurants operators including all phone, office,
        administrative, personnel, staffing, advertising, marketing, collateral and
        other recruiting costs and expenses according to the guidelines we specify
        in
        the AR Manual.

       

      (l)           Assist
        Franchise Owners by providing guidance, assistance and logistical support
        during
        transfers of their Franchises or EVOS® Restaurants, (including providing
        guidance, assistance and logistical support in connection with mergers,
        acquisitions, transfers, resales, asset sales, etc. by or among Franchise
        Owners
        and third parties) including referrals to preferred vendors we
        designate.

       

      (m)           Participate
        in our quality assurance programs and periodically evaluate them with
        us.

       

      (n)           Monitor
        and report the sales volume and other data, as we determine from time to
        time,
        for the EVOS® Restaurants located in the Territory.

       

      (o)           Conduct
        on our behalf, or assist us with, inspecting or auditing EVOS® Restaurants and
        their Owners.  You will visit every EVOS® Restaurant and each
        Franchise Owner in the Territory at least monthly.  We may inspect any
        EVOS® Restaurant in the Territory at any time.  Although you will
        visit them more frequently, you must provide an in-depth EVOS® Restaurant report
        at least quarterly following the standards, procedures and measurement criteria
        that we develop from time to time.  Each visitation will also be
        combined with your following an evaluation protocol for each EVOS®
Restaurant.

       

      (p)           Monitor
        and communicate to us the marketing efforts of each EVOS® Restaurant in your
        Territory to ensure compliance with our requirements.

       

      (q)           If
        local franchise owner co-ops or other franchise owner associations are formed
        that include Franchise Owners in your Territory, you must use your best efforts
        to participate in meetings of such associations.  If applicable, and
        as permitted by the co-op or association governing documents, you will serve
        as,
        and fulfill the obligations of, the President. We may require you to establish
        one or more Franchise Owner associations or Franchise Owner Advisory
        Counsels

       

      (r)           Provide
        Franchise Owners in the Territory with supervisory assistance and guidance
        in
        connection with the opening and initial operations of their EVOS® Restaurants as
        we may designate in a manner and at times we deem advisable.

       

      (s)           Maintain
        positive relationships, serve as our liaison and evaluate additional incentive
        programs and marketing programs from approved and preferred suppliers, vendors
        and others we designate.

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (t)           Establish,
        organize and participate in all meetings of, any Owner associations (if any)
        and
        Franchise Owner advisory board (if any) conference calls (upon request) (or
        similar organizations we approve) in the Territory, in accordance with rules,
        regulations and governing documents as we may require from time to
        time.

       

      (u)           Provide
        to Franchise Owners the continuing operating assistance described in the
        Franchise Agreement that we periodically delegate to you in accordance with
        our
        policies and instructions, and assist us in facilitating transfers and renewals
        of franchises.  You must hire and maintain the staff, personnel and
        resources to enable you to fulfill all of your service obligations in accordance
        with the staffing plan and schedule attached as Exhibit
        B which can only be modified by mutual written consent.

       

      (v)           Pay
        to us an amount equal to our expenditures (including wages, travel and living),
        plus 25%, for work and expenses incurred by us in performing services to
        Franchise Owners located in the Territory which you are required to perform
        under this Agreement that you have failed to perform, if you have failed
        to cure
        such failure to perform to our satisfaction, within 30 days of our notice
        to you
        that you have failed to perform such services.  You recognize your
        failure to so perform constitutes a breach of this Agreement.

       

      (w)           Visit
        with each EVOS® Restaurant in the Territory at least monthly, and file contact
        reports in our system electronically or as we determine following each visit
        to
        include a review of operational, sales, marketing, and profit and loss
        performance of each Franchise Owner on a per Restaurant basis.

       

      (x)           Report
        to and take direction from us or our designee and assist us or our designee
        in
        our efforts to satisfy all obligations that we have under the Franchise
        Agreements with the Franchise Owners.

       

      (y)           Assist
        us in the enforcement of all provisions of any Franchise Agreement, including
        collection of monies due us, provided that you must require that monies owed
        to
        us are made payable only to us or in the manner we designate.

       

      (z)           Attend
        and participate, at your expense, required company meetings, trade shows
        and
        conventions we designate during each calendar year, unless otherwise approved
        by
        us in writing to you.

       

      (aa)        At
        all times during the term of this Agreement, you agree to maintain your primary
        residence and your Office within the boundaries of your Territory.

       

      (bb)        Provide
        to us and to each Franchise Owner in your Territory your Office address,
        telephone number, facsimile number, email address and hours of
        operation.

       

      (cc)        At
        our option, establish approved vendor relationships for the purchase and
        sale of
        products and services to EVOS® Restaurants in accordance with our System
        Standards.

       

      (dd)        Assist
        us with the roll-out programs that we establish from time to time, including
        but
        not limited to new products, new menus, new marketing programs, new promotions,
        new vendor programs, new logos, new equipment, and new computer hardware
        and
        software.

       

      (ee)        Comply
        with all applicable laws while operating your business and performing under
        this
        Agreement.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (ff)          As
        we may require from time to time, collect financial statements from Franchise
        Owners and provide such statements, together with your financial statements,
        to
        us within 30 days after the end of each period.  The types of
        financial statements will be specified in our Manuals and will include balance
        sheet, income statement, statement of cash flows and equity, and will be
        consistent with industry standards.

       

      (gg)         Follow
        and use our communications tools and policies.

       

      (hh)         Follow
        and implement our documentation, record keeping and filing system.

       

      (ii)           Provide
        an annual business plan to us for your Area Representative Business, and
        ensure
        the timely completion and submission of a business plan for each of the
        Franchise Owners in your Territory on a per Restaurant basis.

       

      (jj)           Allow
        us to use, and consent to our publication of your and your principals’ names,
        likenesses, photographs and testimonials as we see fit without any
        compensation.

       

    

    16.           COMPUTER
      SYSTEM

     

        You
      must
      obtain your own accounting services and any required hardware or software
      related to them.  You must at all times maintain the records specified
      in the Manuals, including, without limitation, sales, inventory and expense
      information. You must provide your own internet service provider.  In
      developing and operating your AR Business, you must use the computer hardware
      and software that we specify (the “Computer
      System”).  We may modify specifications and components of the
      Computer System from time to time. Such modifications and specifications may
      require you to incur costs to purchase, lease or license new or modified
      computer hardware or software and to obtain service and support for the Computer
      System during the Term.  You agree to incur such costs in connection
      with obtaining the computer hardware and software comprising the Computer System
      (or additions or modifications).  Within 30 days after you receive
      notice from us, you must obtain the components of the Computer System that
      we
      specify.  We also have the right to charge you a reasonable systems
      fee for modifications of and enhancements made to any software that we license
      to you and other maintenance and support services that we or our affiliates
      furnish to you related to the Computer System but we will not charge you this
      fee if you pay an MIS Fee under a Franchise Agreement with us.  You
      must: (a) supply us with any and all codes, passwords, and information necessary
      to have access to your Computer System and not change any of them without first
      notifying us; and (b) not load or utilize any software on the Computer System
      that we have not specified or approved for use.

     

    17.           FRANCHISE
      OWNER INSPECTIONS

     

        You
      must
      conduct inspections of EVOS® Restaurants at our request.  In addition,
      you acknowledge that we have the sole right to:  (a) grant
      Franchises; (b) terminate a Franchise Agreement for failure to cure defaults
      (if
      an opportunity to cure is granted); (c) approve site selection, leases, and
      real
      estate purchases of Franchise Owners; and (d) approve all floor plans and EVOS®
Restaurant development (floor plans. construction, architectural plans,
      etc.) and (e) take any legal action with respect to any default or any
      violation of a Franchise Agreement.  You also will pay our approved
      provider of mystery shopping and evaluation services for their services based
      on
      the evaluation schedule we specify, which will be no more frequent than what
      we
      require outside of the Territory or for our company-owned stores.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    18.           MARKS

     

    (a)           OWNERSHIP
      AND GOODWILL.  Your
      right to use the Marks is derived solely from this Agreement.  You may
      only use the Marks in connection with the operation of your Area Representative
      Business and only in accordance with this Agreement.  Any unauthorized
      use of the Marks by you constitutes an infringement of our rights in and to
      the
      Marks.  Your usage of the Marks, and any goodwill established by your
      use of the Marks, inures to our exclusive benefit.  You must not, at
      any time, contest, or assist anyone else in contesting, the validity or
      ownership of any of the Marks.  All provisions of this Agreement
      applicable to the Marks applies to any additional trademarks, service marks,
      logo forms, trade dress and commercial symbols that we authorize for use by,
      and
      license to, you in connection with this Agreement.

     

    (b)           LIMITATIONS
      ON USE.  You
      must not use any Mark as part of any corporate or trade name or with any prefix,
      suffix or other modifying words, terms, designs or symbols, or in any modified
      form.  You must not use any Mark in connection with the sale of any
      unauthorized product or service
      or in any
      other manner not expressly authorized by us in writing.  You must
      display the Marks prominently and in the manner prescribed by us on signs and
      forms.  You must give such notices of trademark and service mark
      registrations and copyrights as we specify and you must obtain such fictitious
      or assumed name registrations as may be required under applicable
      law.  You will not employ the Marks in any way that we have determined
      may result in liability to us for any debts or obligations of
      yours.

     

    (c)           INFRINGEMENTS
      AND CLAIMS.  You
      are responsible for researching and identifying unauthorized and infringing
      uses
      of our Marks in your Territory.  You must notify us immediately in
      writing if you become aware of any apparent infringement of, or challenge to,
      your use of any Mark, or claim by any person of any rights in any of the
      Marks.  You must not communicate with any person other than us and our
      counsel in connection with any such infringement, challenge or
      claim.  We have sole right to take any action we deem appropriate and
      the right to control exclusively any litigation, administra­tive or other
      proceeding arising out of any infringement, challenge or claim or otherwise
      relating to any Mark.  You will sign all documents, render such
      assistance and do such acts as we consider advisable to protect and maintain
      our
      interest in any such proceeding or to otherwise protect and maintain our
      interest in the Marks.

     

    (d)           DISCONTINUANCE
      OF USE.  If
      it
      becomes advisable at any time for us and/or you to modify or discontinue use
      of
      any Mark, and/or use one or more additional or substitute trademarks or service
      marks, you must comply within a reasonable time after receiving
      notice.  We will not be obligated to reimburse you for any costs,
      expenses, losses or damages whatsoever that you spend or suffer as a
      result.

     

    19.           CONFIDENTIAL
      INFORMATION

     

    (a)           NATURE
      OF INFORMATION.  We
      possess or license certain proprietary and confidential information, which
      includes:  trade secrets; methods; techniques; formats; management
      methods; specifications; procedures; information; systems; computer software;
      methods of business management; the System; and the know-how related to its
      use;
      any computer software programs we or our associates provide or recommend for
      use
      by EVOS® Restaurants or Area Representatives and the hardware specifications for
      running such software; terms and conditions of our agreements with preferred
      suppliers; training materials, programs and conference materials designed for
      Franchise Owners or Area Representatives or personnel of EVOS® Restaurants or
      Area Representatives; information contained in and contents of the Manuals;
      knowledge and operating results in financial performance of any Franchise,
      EVOS®
Restaurants or Area Representative, including your Area Representative Business;
      sales and promotion techniques and knowledge of and experience in the operation
      and franchising of EVOS; and information obtained or 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

      acquired
        through or as the result of use of any web site, Internet, Intranet or other
        forms of e-commerce (including customer information, number of “hits” to web
        sites and the like) (collectively, the “Confidential
        Information”).  We will disclose, to the extent we deem
        practicable, the Confidential Information to you in training sessions, the
        Franchise Manual and in guidance that we furnish to you during the
        Term.  You acknowledge that any unauthorized disclosure by you of the
        Confidential Information will cause irreparable harm to us.

    

     

    (b)           NONDISCLOSURE.
      You agree that
      the Confidential Information is proprietary, includes our trade secrets and
      is
      disclosed to you solely on the condition that you agree as follows:

     

    (i)           That
      you will not use the Confidential Information in any other business or
      capacity.

    (ii)           You
      will maintain the absolute confidentiality of the Confidential Information
      during and after the Term.

     

    (iii)           You
      will not make unauthorized copies of any portion of the Confidential Information
      regardless of whether it is disclosed in electronic medium, written or other
      tangible or intangible form.

     

    (iv)           You
      will adopt and implement all reasonable procedures prescribed by us from time
      to
      time to prevent unauthorized use or disclosure of the Confidential Information
      including restrictions on disclosure to your employees or agents and use of
      non-disclosure and non-competition agreements in form and substance approved
      by
      us which we may provide for your employees or agents who have or whom we or
      you
      deem likely to have access to the Confidential Information.

     

    (c)           USE
      OF IDEAS:
      We have the
      perpetual right to use, and authorize other Franchise Owners or Area
      Representatives to use, and you will fully and promptly disclose to us, all
      ideas, concepts, methods and techniques relating to your Area Representative
      Business and/or operation of any EVOS® Restaurants that you conceive or develop
      or are conceived or developed by any of your employees or any of the Franchise
      Owners within the Territory during the Term.

     

    (d)           EXCLUSIVE
      RELATIONSHIP:  We
      have entered into this Agreement with you on the condition that your other
      activities and/or those of your affiliates, if any, will not in any way
      interfere with your obligations and duties under this
      Agreement.  Accordingly, you will not advise, assist, counsel,
      represent or perform any services in any way whatsoever, directly or indirectly,
      associated with or in connection with any other person or entity which directly
      or indirectly is in the business of owning, operating, counseling or offering
      franchises for  a Competitive Business.  You understand that
      we would be unable to protect our Confidential Information and would be unable
      to encourage a free exchange of ideas and information among Franchise Owners,
      our affiliates and us if Franchise Owners were permitted to hold interests
      in
      any Competitive Business.  Accordingly, during the Term, neither you,
      nor your shareholders or partners nor any member of your or their immediate
      families will:

     

    (i)           Engage
      in a Competitive Business or perform services for a Competitive Business
      directly or indirectly, as a: director; disclosed or beneficial owner;
      proprietor; officer; manager; employee; consultant; Area Representative; agent;
      independent contractor; or otherwise, except under this Agreement or a Franchise
      Agreement with us or our associates.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (ii)           Have
      any direct or indirect interest, as a disclosed or beneficial owner, in a
      Competitive Business or any entity which is awarded or is awarding franchises
      or
      licenses to others to operate any Competitive Business, except EVOS® Restaurants
      under Franchise Agreements with us or as an Area Representative under an Area
      Representative Agreement with us.

     

    (iii)           Recruit
      or hire any employee of ours, our associates, any EVOS® Restaurant or of another
      Area Representative without our prior written consent and/or that of the other
      employer; or

     

    (iv)           Directly
      or indirectly, on behalf of yourself or any other person, or as an employee,
      proprietor, disclosed or beneficial owner, consultant, agent, contractor,
      employer, affiliate, partner officer, director or associate or stockholder
      of
      any other person
      or entity,
      or in any other capacity, solicit, divert, take away, or interfere with any
      of
      the business, customers, clients, contractors, trade or patronage of ours,
      our
      associates or any EVOS® Restaurant as such may exist prior to, after or
      throughout the term of this Agreement, except with our prior written
      consent.

     

    20.           IMAGE
      AND OPERATING STANDARDS

     

    (a)           STANDARDS
      OF SERVICE:  During
      the Term, you must:  (i) at all times give prompt, courteous and
      efficient service to Franchise Owners consistent with the standards we specify
      in the AR Manual or otherwise; (ii) adhere to the highest standards of
      honesty, integrity, fair dealing and ethical conduct in all dealings with the
      Franchise Owners, prospective franchise owners, us, and the public;
      (iii) not favor one or more Franchise Owners over other Franchise Owners
      within the Territory; and (iv) not enter into any relationships with
      Franchise Owners in the Territory or others that may result in a conflict of
      interest between your obligations as our Area Representative  and your
      duties to provide services to a Franchise Owner.

     

    (b)           ADVERTISING:  All
      advertising and promotion by you must be completely factual and must conform
      to
      the highest standards of ethical advertising.  If required by the laws
      of your jurisdiction, all advertising and promotion relating to the solicitation
      of prospective franchise owners must be approved by the appropriate regulatory
      authorities.  You must not use any advertising or promotional material
      until approved by us and the appropriate regulatory
      authority.  Submission will be done via such methods as we approve
      from time to time including electronically or via fax.  If you have
      not received notice of our approval within 10 days from the date of our receipt
      of the advertising materials, then we will be deemed to have not approved
      them.  You will refrain from any business or advertising practice
      which may injure our business and/or the goodwill associated with the Marks
      and
      Franchises.

     

    (c)           PROMOTIONAL
      MATERIALS:  Prior
      to their use by you, samples of all advertising, marketing and promotional
      materials not prepared or previously approved by us must be submitted for our
      approval.  Submission will be done via such methods as we approve from
      time to time including electronically or via fax.  If you have not
      received notice of our approval within 10 days from the date of our receipt
      of
      the advertising materials, then we will be deemed to have not approved
      them.  You must not use any advertising or promotional materials that
      we have not approved.  We may furnish you with approved local
      marketing plans and materials on the same terms and conditions as such plans
      and
      materials are furnished to other Franchises.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (d)           JUDICIAL
      ACTIONS:  You
      must notify us within 5 business days of your notice of the commence­ment of
      any action, suit, proceeding or investigation, and of the issuance of any order,
      writ, injunction, award or decree, by any court, agency or other governmental
      instrumentality which may adversely affect your operations or financial
      condition, your Area Representative Business, or any Franchise Owner or EVOS®
Restaurant in the Territory.  You may not sue any of our Franchise
      Owners or approved vendor suppliers without our prior written
      permission.

     

    (e)           MANAGEMENT
      OF BUSINESS:  The
      Area Representative Business must at all times be under your direct
      supervision.

     

    (f)           MINIMUM
      STAFFING LEVELS: 
At
      all times
      during the Term, your Area Representative Business must maintain the minimum
      staffing levels required by our System Standards. Attached as Exhibit
      B is our current staffing projections and suggested
      salaries.

    (g)           FACILITIES
      AND EQUIPMENT:  You
      must obtain and maintain certain equipment in order to operate your Area
      Representative Business.  You must obtain a computer and other
      personal communication devices that meet the specifications and standards we
      prescribe from time to time, a telephone with a separate business line, a
      facsimile machine with a separate phone number and line, high-speed internet
      connection with the minimum speed we designate from time to time.  The
      computer system must contain, and you must be reasonably proficient with, such
      computer programs software that we designate for use from time to
      time.  You are responsible for obtaining the necessary training for
      proficiency on those programs.  These programs include database,
      spreadsheet, financial, word processing, communications, e-mail, calendaring
      and
      others.  You may obtain the computer system and the software from
      anyone you choose.

     

    21.           INSURANCE

     

    (a)           COVERAGE
      REQUIREMENTS:  During
      the term of this Agreement, you must at all times maintain in force, at your
      expense, comprehensive public and motor vehicle liability insurance against
      claims for bodily and personal injury, death and property damage caused by
      or
      occurring in conjunction with the conduct of your Area Representative
      Business.  You must maintain the coverage under one or more insurance
      policies containing the minimum insurance coverages we prescribe from time
      to
      time (including coverage for claims by Franchise Owners, or those they injure,
      while in your training program).  All such policies must name us (and
      whatever affiliates we designate) as an additional insured.  We may
      periodically increase or decrease the amounts of coverage required under the
      insurance policies and require different or additional kinds of insurance at
      any
      time to reflect inflation, identification of new risks, changes in law or
      standards of liability, higher damage awards or other relevant changes and
      circumstances.  We will notify you at least 60 days in advance of any
      changes in amounts or types of coverage required.  We will set these
      standards generally on a uniform basis but may vary them from jurisdiction
      to
      jurisdiction due to special risks, availability, premiums and other relevant
      factors.

     

    (b)           VERIFICATIONS:  You
      must submit to us on an annual basis a copy of each new, renewal or replacement
      certificate evidencing the maintenance of your insurance
      coverage.  The terms of each policy must be acceptable to us before
      you obtain them.  If you do not maintain the required insurance
      coverage, or you do not furnish us with satisfactory evidence of insurance
      coverage and premium payments, we may obtain, at our option and in addition
      to
      our other rights and remedies under this Agreement, any required insurance
      coverage on your behalf.  If we do so, you must fully cooperate with
      us in our effort to obtain the insurance policies and must promptly sign all
      forms required to obtain or maintain the insurance. Finally, you must pay us,
      on
      demand, any costs and premiums we incur in obtaining insurance on your behalf.
      Neither your obligation to maintain insurance, coverage nor our maintenance
      of
      insurance on your behalf, will reduce or absolve you of any obligations of
      indemnification described in this Agreement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    22.           TRANSFER

     

    (a)           BY
      US:  We
      may
      transfer this Agreement at any time and it will inure to the benefit of our
      transferee or other legal successor, but only if such transferee expressly
      assumes in writing, all obligations we have to you under this
      Agreement.  If we obtain a written offer from a potential buyer that
      we are willing to accept we will notify you before we close on the proposed
      transaction.

     

    (b)           BY
      YOU:  Your
      rights and duties under this Agreement are personal to you.  We have
      entered into this Agreement in reliance upon our perceptions of your, your
      owners’ or your principal
      owners’
individual or collective character, skill, aptitude, attitude, relevant business
      experience, business ability and financial resources.  Accordingly,
      you may not transfer this Agreement (or any interest in it), without our prior
      written consent. Any unautho­rized transfer constitutes a breach of this
      Agreement and will be void and of no effect.  The term
“transfer” means and includes the voluntary, involuntary,
      direct or indirect assignment, sale, gift, pledge, encumbrance or other
      disposition by you of any interest in this Agreement, the Area Representative
      Business or the assets comprising it, and also includes:

     

    (i)           The
      transfer of ownership of 25% or more of the capital stock or partnership
      interests or any other form of ownership in the Area Representative Business
      or
      you.

     

    (ii)           Merger
      or consolidation, or issuance of additional securities representing a 25% or
      more ownership or voting interest in the Area Representative Business or
      you.

     

    (iii)           Transfer
      of interest in you or the Area Representative Business in a divorce proceeding
      or otherwise by operation of law.

     

    (iv)           Transfer
      of substantially all of your or the assets comprising your Area Representative
      Business.

     

    (v)           Transfer
      of an interest in you or the Area Representative Business by will, declaration
      of or transfer in trust or under the laws of intestate succession of any person
      owning more than a 25% interest in you or the Area Representative
      Business.

     

    (c)           CONDITIONS
      FOR APPROVAL OF TRANSFER:  If
      you
      are in full compliance with this Agreement, we will not unreasonably withhold
      our approval of a transfer except that if, based on our or our advisors’
personal experience in dealing with a proposed transferee, we do not desire
      to
      enter into an Area Representative Business relationship with the transferee
      or
      if any one or more of the conditions set forth below are not met, we may in
      our
      sole discretion withhold our approval:

     

    (i)           You
      must provide us with a minimum of 60 days prior notice of any proposed transfer
      with all of the information pertaining to the proposed transfer and thereafter
      provide us promptly with all additional information relating to the transfer
      or
      the transferee that we reasonably request.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (ii)           A
      transfer of ownership in you or the Area Representative Business may only be
      made in conjunction with a transfer of this Agreement.

     

    (iii)           The
      transferee and/or its owner(s) must, in our judgment, have sufficient character,
      skill, aptitude, attitude, relevant business experience, business ability and
      financial resources to operate an Area Representative Business and must either
      acquire the Training Store from you or already own an EVOS® Restaurant that we
      consider worthy of serving as its Training Store.

     

    (iv)           All
      your or the Area Representative Business’ obligations incurred in connection
      with this Agreement must be assumed by the transferee.

     

    (v)           You
      must submit all required reports, financial statements and other documents
      due
      us up to the effective date of the transfer.

    (vi)           The
      transferee and/or its owner(s) must, in our judgment, have satisfactorily
      completed our training program at the transferee’s expense and met the
      qualifications and satisfactorily completed such training to own and operate
      a
      Training Store we approve for this purpose and signed a franchise agreement
      with
      us to do so.

     

    (vii)                      You
      must reimburse us for the expenses we incur associated with the transfer (with
      the expectation, but no guaranty, that they will not exceed $15,000), unless
      such transfer is made to a controlled entity under Subsection (d) of this Section, then no reimbursement is
      due.

     

    (viii)                      You
      (and your owners) must execute a general release, in form satisfactory to us,
      of
      any and all known and unknown claims against us, our affiliates, and our
      officers, directors, employees, and agents.

     

    (ix)           We
      must approve the material terms and conditions of such trans­fer (which
      approval will not be given if we decide the price and terms of payment are
      so
      burdensome as to adversely affect the future operations of the Area
      Representative Business by the transferee).

     

    (x)           You
      (and your transferring owners) must sign and deliver to us a written agreement
      in favor of us and the transferee, agreeing that for a period of not less than
      2
      years, commencing on the effective date of the transfer, to comply with the
      post-term competitive restrictions described in this Agreement.

     

    (xi)           The
      transfer must be approved by all necessary regulatory authorities.

     

    (d)           TRANSFER
      TO A CONTROLLED ENTITY:  This
      Agreement and the assets and liabilities of your Area Representative Business
      may be assigned to a business organization on the following
      conditions:

     

    (i)           It
      conducts no business other than your Area Representative Business.

     

    (ii)           You
      actively manage the corporation and you own, control and have the right to
      vote
      more than 75% of its voting and equity interests.

     

    (iii)           The
      organizational documents of such entity recite that the issuance and assignment
      of any ownership interest in it are restricted by the terms of this Agreement,
      and all instruments evidencing issued and outstanding ownership interests of
      such entity bear a legend reciting or referring to the restrictions of this
      Agreement on the issuance and transfer of those interests.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (iv)           The
      proposed owners execute an agreement, in a form we provide or approve, agreeing
      to be bound jointly and severally by, to comply with, and to guaranty the
      performance of, all of your obligations under this Agreement.

     

    (v)           Your
      death or permanent disability of any owner of 50% or more of its equity and/or
      voting interests will continue to apply for purposes of terminating this
      Agreement.

     

    (e)           EFFECT
      OF CONSENT TO TRANSFER:  Our
      consent to a proposed transfer will not constitute a waiver
      of:  (a) any claims we may have against you, or your owners for
      anything happening up to and through the date of transfer (excluding
      indemnification claims which survive); or (b) our right
      to demand
      exact compliance with any of the terms or conditions of this Agreement by any
      transferee.

     

    (f)           COMPLIANCE
      WITH LAWS:  You
      will comply with any laws and regulations that apply to the transfer, including
      state and federal laws and regulations governing the offer, sale, and transfer
      of franchises.  You must indemnify and hold us and our affiliates and
      our and their officers, directors, shareholders, and employees harmless against
      any and all claims arising, and expense incurred (including attorneys’ fees),
      directly or indirectly, from, as a result of, or in connection with, any alleged
      failure on your part to comply with any franchise law or other applicable law
      in
      connection with the transfer.

     

    (g)           RIGHT
      OF FIRST REFUSAL:  If
      you
      (or your owners) want to engage in a transfer, you must obtain a bona fide,
      signed written offer from a responsible and fully disclosed purchaser and submit
      an exact copy of that offer to us.  The offer must completely disclose
      the purchase price, payment terms, terms of assumption of liabilities and all
      other material terms of the transfer (including all exhibits and other
      information so that we may readily determine the foregoing).  Within
      30 days from the date we receive the copy of such offer, we may purchase your
      rights under this Agreement and your Area Representative Business on the terms
      and conditions contained in the offer provided to us, except that:

     

    (i)           We
      may substitute cash for any form of payment proposed in the offer.

     

    (ii)           Our
      credit will be deemed equal to the credit of any proposed
      purchaser.

     

    (iii)           We
      will have no less than 90 days to prepare for closing.

     

    The
      30-day period
      will not commence until you have delivered to us full and complete
      documentation, including all information reasonably requested by us, to enable
      us to fully evaluate the offer.  If we do not exercise our right of
      first refusal, you or your owners may complete the transfer on the terms
      contained in the offer, subject to our approval of the transferee as described
      in this Section.  If the transfer as described in the offer is not
      completed within 135 days after delivery of the offer to us, or if there is
      a
      material change in the terms of the transfer, we will again have the right
      of
      first refusal described in this Agreement.

     

    (h)           TRANSFER
      UPON DEATH OR DISABILITY. 
Upon
      your
      (or your controlling owner’s) death or disability (a “Disabling
      Event”), your (or your controlling owner’s) executor, administrator,
      conservator, guardian or other personal representative must transfer your
      interest in this Agreement (or your controlling owner’s interest in you) to a
      third party.  Such transfer (including, without limitation, transfer
      by bequest or devise) must be completed within 6 months from the date of
      the Disabling Event, and will be subject to all of the terms and conditions
      applicable to transfers contained in this Agreement.  For purposes of
      this Agreement, the term “disability” means a mental or
      physical disability, impairment or condition that is reasonably expected to
      prevent or actually does prevent you (or your controlling owner) you from
      adequately managing your Area Representative Business.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    A
      failure to
      transfer your interest in this Agreement (or your controlling owner’s interest
      in you) within 6 months from the Disabling Event constitutes a breach of this
      Agreement and grounds for termination for cause under Section 23.

     

    (i)           MANAGEMENT
      UPON DEATH OR DISABILITY.
      If, upon a
      Disabling Event, your Area Representative Business is not being managed by
      an
      individual  approved by us (a “Qualified Manager”), your
      (or your controlling owner) executor, administrator, conservator, guardian
      or
other
      personal representative must, within 15 days from the Disabling Event, appoint
      a
      Qualified Manager to manage your Area Representative Business pending transfer
      under Section (h).  Such Qualified
      Manager may be required to complete training at your expense. If a Qualified
      Manager is not appointed, we have the right, but not the obligation, to appoint
      an interim Qualified Manager. During the time an interim Qualified Manager
      manages your Area Representative Business, we will hold all revenues from the
      operation of your Area Representative Business (less a reasonable management
      fee) in a separate account, and use such revenues, to the extent available,
      to
      pay all expenses incurred by your Area Representative Business, including
      reasonable compensation and related expenses of the interim Qualified Manager.
      You agree that any assistance we provide following a Disabling Event does not
      give rise to any fiduciary duties on our part and we agree only to utilize
      our
      reasonable efforts and will not be liable to you (or your owners, creditors,
      successors, heirs, devisees or assigns) for any debts, losses or obligations
      incurred by your Area Representative Business during any period it is managed
      by
      an interim Qualified Manager.

     

    (j)           SALE
      OF SECURITIES.
      In the event that
      you sell 5% or more of any ownership interest in you, you agree to execute
      and
      deliver to us, an addendum to this Agreement that we approve, substantially
      in
      the form attached as Exhibit C.

     

    23.           TERMINATION
      BY US / WITH CAUSE

     

    We
      may terminate
      this Agreement by delivering notice to you stating that we elect to terminate
      this Agreement as a result of any of the breaches described below and your
      failure to cure such breach to our satisfaction within 30 days after delivery
      of
      our notice.  It is a material breach of this Agreement if
      you:

     

    
      (a)           Fail
        to satisfactorily complete the Area Representative Training Program and/or
        any
        additional, supplemental or refresher training programs;

       

      (b)           Fail
        to meet the Development Schedule;

       

      (c)           Fail
        to meet your service obligations, including but not limited to your training
        obligation and meeting performance standards;

       

      (d)           Make
        an unauthorized transfer of this Agreement;

       

      (e)           Make
        any unauthorized use of the Marks or unauthorized use or disclosure of the
        Confidential Information;

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      (f)           Make
        any material misrepresentation or omission to us or any Franchise
        Owner;

       

      (g)           Make
        earnings claims, or projections, or provide any information with regard to
        sales, revenues, income, costs or expenses relating to any Franchise Owner
        or
        any individual EVOS® Restaurant unless in accordance with the provisions of the
        franchise offering circular to be provided to prospective franchise
        owners;

       

      (h)           Make
        it impossible, economically impractical or excessively risky in terms of
        our
        potential liability, to solicit Franchise Owners on our behalf due to the
        applicable laws, rules or regulations concerning franchise sales in the
        Territory;

       

      (i)           Breach
        any provision of this Agreement or any other agreement between you and us
        or if
        we terminate any Franchise Agreement with you for cause;

       

      (j)           Abandon,
        surrender, transfer control of or fail to actively operate your
        business;

       

      (k)           Are
        convicted of or plead no contest to a felony or convicted of or plead no
        contest
        to any crime or offense that may adversely affect our reputation or our
        business;

       

      (l)           Engage
        in any dishonest or unethical conduct which may adversely affect our reputation
        or our Franchise Owners’ reputation or the goodwill associated with the
        Marks;

       

      (m)           Violate
        any applicable franchise laws in the Territory that are not cured with the
        appropriate regulatory authority or otherwise conduct yourself in a manner
        that
        makes it impossible or unlawful to solicit or sell franchises as contemplated
        by
        this Agreement in accordance with applicable laws, rules or
        regulations;

       

      (n)           Make
        an assignment for the benefit of creditors or admit in writing your insolvency
        or inability to pay your debts generally as they become due; you consent
        to the
        appointment of a receiver, trustee or liquidator; all or a substantial part
        of
        your property is attached, seized, subjected to a writ or distress warrant
        or is
        levied upon, unless such attachment, seizure, writ, warrant or levy is vacated
        within 30 days; or an order appointing a receiver, trustee or liquidator
        of you
        or substantially all of your assets is issued and is not vacated within 30
        days
        following the entry of such order;

       

      (o)           Make
        preferential, arbitrary or capricious treatment of any Franchise Owner or
        prospective franchise owner in your Territory that is not otherwise supported
        by
        legitimate business considerations;

       

      (p)           Solicit
        or accept any rebates or other preference from any vendor, or engage in any
        Ancillary Activities without our approval;

       

      (q)           Accept
        payments from Franchise Owners or prospective franchise owners that are not
        made
        payable to us;

       

      (r)           If
        25% or more of the EVOS® Restaurants in your Territory are not in substantial
        compliance with our System Standards and Specifications;

       

      (s)           Do
        not attend 3 or more meetings, trade shows and/or conventions for which we
        require your attendance during any 36-month period;

       

      (t)           Allow
        a Franchise Owner to sign a lease without our approval;

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      (u)           Fail
        to implement to our satisfaction our marketing, operating, training or other
        programs;

       

      (v)           Fail
        to timely complete to our satisfaction construction reports, final inspections
        and punch list;

       

      (w)           Fail
        to consistently communicate with us or the Franchise Owners in your Territory,
        and to provide copies of all correspondence for our files;

       

      (x)           Violate
        any service obligation;

       

      (y)           Make
        any changes, additions, or deletions to our then-current form of franchise
        agreement and ancillary documents that we have approved for use within your
        Territory;

       

    

    24.           RIGHTS
      AND OBLIGATIONS ON TERMINATION OR EXPIRATION

     

    (a)           OURS.  If
      we
      terminate this Agreement pursuant to its terms and you comply with all of your
      post-termination obligations, we will pay you all amounts accrued up to the
      termination date.

     

    (b)           DISASSOCIATION.  On
      the
      termination or expiration of this Agreement, your right to operate the Area
      Representative Business will terminate and you must immediately in any manner
      we
      may designate:

     

    (i)           Not
      directly or indirectly at any time or in any manner identify yourself or any
      business as a current or former Area Representative of us or our
      affiliates.

     

    (ii)           Return
      to us all advertising materials, forms and other materi­als containing any
      Mark or otherwise identifying or relating to the sale or service of the
      Franchises and EVOS® Restaurants.

     

    (iii)           Cease
      the use of any aspect of the System and any of the Marks and any other trade
      name, trademark, service mark or other commercial symbol that suggests or
      indicates a connection or association with us, other than under a Franchise
      Agreement with us.

     

    (iv)           Take
      such actions as may be required to cancel any and all fictitious or assumed
      names or equivalent registrations relating to your use of any of the Marks,
      associated with your status as an Area Representative.

     

    (v)           Return
      all access disks and return or destroy the software furnished you by us, if
      any.

     

    (vi)           Terminate
      all use of e-names, web sites, web pages or any other aspect of e-commerce
      relating to us, Franchise Owners, the System and the Marks, in the manner we
      designate.

     

    (c)           CONFIDENTIAL
      INFORMATION. On
      termination or expiration of this Agreement, you must immediately cease to
      use
      any Confidential Information in any business or otherwise (except in connection
      with the operation of an EVOS® Restaurant pursuant to a Franchise Agreement or
      other agreement with us) and return to us all copies of the Franchise manual
      and
      any other Confidential Information that we have loaned or otherwise provided
      to
      you.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (d)           NONCOMPETITION.
      On termination or
      expiration of this Agreement for any reason, including transfer of your Area
      Representative Business, you agree that, for a period of 2 years commencing
      on
      the effective date of termination, expiration or transfer, you must not have
      any
      direct or indirect interest (through a member of any immediate family of you
      or
      your shareholders or partners or otherwise) as a disclosed or beneficial owner,
      investor, partner, proprietor, contractor, associate, director, officer,
      employee, consultant, member, manager, owner, Area Representative or agent
      or
      engage in any other capacity in any:  (i) Competitive Business located
      or operating within the Territory; (ii) Competitive Business located or
      operating in a territory we have awarded to another Area Representative; (iii)
      business offering or selling franchises in the Territory for a Competitive
      Business; or (iv) Competitive Business located or operating within 5 miles
      of
      any other EVOS® Restaurant.  Enforcement of these provisions will not
      deprive you of your personal goodwill or ability to earn a living because you
      acknowledge that you possess the skills and abilities of a general nature and
      have other opportunities for exploiting
      such
      skills.  The time period of the competitive restriction will be
      automatically extended by the time period of any breach of this
      provision.

     

    25.           RELATIONSHIP
      OF THE PARTIES

     

    (a)           INDEPENDENT
      CONTRACTORS.
      Neither this
      Agreement nor any aspect of your relationship with us creates a fiduciary
      relationship between you and us.  You and we are independent
      contractors.  Nothing in this Agreement is intended to make either you
      or us a general agent, subsidiary, joint venturer, partner, employee or servant
      of the other for any purpose.  Since you are an independent
      contractor, we will not, unless otherwise required by law, withhold from your
      compensation any amounts for your income taxes or other withholding taxes and
      you are solely responsible for payment of all taxes on your income or business
      of whatever nature.

     

    (b)           IDENTIFICATION.
      You must
      conspicuously identify yourself at your premises and in all dealings with
      Franchise Owners, prospective franchise owners, lessors, contractors, suppliers,
      public officials and others as the owner of your own business under an agreement
      with us.  You must place notices of independent ownership on such
      signs, forms, stationery, advertising and other materials as we may require
      from
      time to time.  You must not employ any Mark in signing any contract,
      lease, mortgage, check, purchase agreement, negotiable instrument or other
      legal
      obligation or in any other manner without our prior written
      consent.  You must not employ any Mark in a manner that is likely to
      result in our liability for any of your debts or obligations.

     

    (c)           LIABILITIES.  Neither
      you nor we will make any express or implied agreements, guarantees or
      representations, or incur any debt, in the name of or on behalf of the other
      or
      represent that the relationship between you and us is other than as franchisor
      and an independently owned and operated by the Area
      Representative.  Neither you nor we will be obligated by or have any
      liability under any agreements or representations made by the other that are
      not
      expressly authorized under this Agreement.  Neither we nor our
      associates, our or their, officers, directors, agents, employees, affiliates,
      subsidiaries, stockholders, successors or assignees (collectively, the
“EVOS Entities”) will be obligated for any damages to any
      person or property directly or indirectly arising out of the operation of the
      Area Representative Business, whether or not caused by our or your negligent
      or
      willful action or failure to act.

     

    (d)           INDEMNIFICATION
      BY YOU.  You
      must indemnify, defend and hold us and the EVOS Entities harmless against and
      reimburse us and them for, any loss, liability, taxes or damages (actual or
      consequential) and all reasonable costs and expenses of defending any claim
      brought against us or any of them or any action in which we or any of them
      is
      named as a party (including, without limitation, reasonable accountants’,
      attorneys’ and expert witness fees, costs of investigation and proof of facts,
      court costs, other litigation expenses and travel and living expenses) which
      we
      or any of them may suffer, sustain or incur by reason of, arising from or in
      

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        
connection
        with
        your activities, unless caused solely by our or their negligence, willful
        or
        reckless act or by our violation of this Agreement.  We have the right
        to defend any claim against us.  This indemnity continues in full
        force and effect subsequent to and notwithstanding the expiration or termination
        of this Agreement for any reason.

    

     

    (e)           INDEMNIFICATION
      BY US.  We
      must indemnify, defend and hold you and your subsidiaries, affiliates,
      stockholders, directors, officers, employees, agents and assignees harmless
      against and reimburse them for, any loss, liability, taxes or damages (actual
      or
      consequential) and all reasonable costs and expenses of defending any claim
      brought against any of them or any action in which any of them is named as
      a
      party (including, without limitation, reasonable accountants’, attorneys’ and
      expert witness fees, costs of investigation and proof of facts, court costs,
      other litigation expenses and travel and living expenses) which any of them
      may
      suffer, sustain
      or incur by
      reason of, arising from or in connection with our activities, unless caused,
      at
      whole or in part, by your negligence, willful or reckless act or by your
      violation of this Agreement.  You have the right to defend any claim
      against you.  This indemnity continues in full force and effect
      subsequent to any expiration or termination of this Agreement for any
      reason.

     

    (f)           CONTRIBUTIONS.
      If we bring legal
      action to enforce our rights under, or to defend claims relating to, any
      Franchise Agreements for Restaurants in the Territory, you must reimburse us
      for
      50% of our attorneys fees and costs in doing so.  We may setoff these
      amounts against compensation otherwise due you.  If we don’t offset
      such reimbursement, you must pay us within 30 days of receive of our
      invoice.

     

    26.           BUSINESS
      ORGANIZATION

     

        If
      you are at
      any time a business organization (“Business Entity”) (like a
      corporation, limited liability company or partnership) you agree and represent
      that:

     

        (a)           you
      have the authority to execute, deliver and perform your obligations under this
      Agreement and are duly organized or formed and validly existing in good standing
      under the laws of the state of your incorporation or formation;

    
       

      (b)           your
        organizational or governing documents will recite that the issuance and transfer
        of any ownership interests in you are restricted by the terms of this Agreement,
        and all certificates and other documents representing ownership interests
        in you
        will bear a legend referring to the restrictions of this Agreement;

       

      (c)           
        the Principal Owners Statement will completely and accurately describe all
        of
        your owners and their interests in you.  A copy of our current form of
        Principal Owners Statement is attached to the Uniform Franchise Offering
        Circular;

       

      (d)           you
        and your owners agree to revise the Principal Owners Statement as may
        be  necessary to reflect any ownership changes and to furnish such
        other information about your organization or formation as we may request
        (no
        ownership changes may be made without our approval);

       

      (e)           each
        of your owners during the term of this Agreement will sign and deliver to
        us our
        standard form of Principal Owner’s Guaranty undertaking to be bound jointly and
        severally by all provisions of this Agreement and any other agreements between
        you and us.  A copy of our current form of Principal Owners Guaranty
        is attached to the Uniform Franchise Offering Circular; and

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      (f)           at
        our request, you will furnish true and correct copies of all documents and
        contracts governing the rights, obligations and powers of your owners and
        agents
        (like articles of incorporation or organization and partnership, operating
        or
        shareholder agreements).

    

     

    27.           NOTICES

     

    All
      notices
      permitted or required to be delivered by this Agreement must be in writing
      and
      will be deemed delivered at the time delivered by hand, one business day after
      sending by telegraph, telecopy or comparable electronic system, 2 business
      days
      after sending through a reliable airborne courier for next day delivery, or
      3
      business days after being placed in the U.S. mail for delivery via registered
      or
      certified mail, return receipt requested, postage prepaid and addressed
      to the
      party to be notified at its most current principal business address of which
      the
      notifying party has been notified.  We may also deliver notices to you
      electronically (e-mail) and they will be deemed delivered one business day
      after
      sending.

     

    28.           MISCELLANEOUS

     

    (a)           SEVERABILITY;
      SUBSTITUTION OF VALID PROVISIONS.  Except
      as expressly provided to the contrary, any provision of this Agreement, and
      any
      portion of this Agreement, which is invalid, illegal or unenforceable is
      severable, without affecting in any way the remainder of the
      Agreement.

     

    (b)           NO
      WAIVER.  If
      at
      any time we do not exercise a right or power available to us under this
      Agreement or do not insist on your strict compliance with the terms of the
      Agreement, or if there develops a custom or practice which is at variance with
      the terms of this Agreement, we will not be deemed to have waived our right
      to
      demand exact compliance with any of the terms of this Agreement at a later
      time.  Similarly, our waiver of any particular breach or series of
      breaches under this Agreement or of any similar term in any other agreement
      between us and anyone else will not affect our rights with respect to any later
      breach.  It will also not be deemed to be a waiver of any breach of
      this Agreement for us to accept payments which are due to us under this
      Agreement.  Actions permitted under this Agreement may be taken at any
      time and from time to time in the actor’s sole discretion.

     

    (c)           BINDING
      NATURE, ASSIGNMENTS.  Except
      as otherwise stated, this Agreement will be binding upon and will inure to
      the
      benefit of the parties and their respective heirs, guardians, personal Area
      Representatives, successors and assigns.  No amendment, modification,
      termination or waiver of any provision of this Agreement will be effective
      unless the same is in writing and signed by all the parties.

     

    (d)           HEADINGS.  The
      headings of the various Sections in this Agreement are for convenience of
      reference only and will not define or limit any of the terms or provisions
      of
      this Agreement.

     

    (e)           CONSTRUCTION.  In
      computing periods from a specified date to a later specified date, the words
      “from” and “commencing on” (and the like) mean
“from and including”; and the words “to,”
      “until” and “ending on” (and the like) mean
“to but excluding.”  Indications of time of
      day mean
      Tampa, Florida time.  “A or B” means “A or B
      or both.”  “Including”
means “including,
      but not limited to.”

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (f)           FURTHER
      INSTRUMENTS AND ACTIONS.  The
      parties will execute and deliver such other documents and instruments as may
      be
      reasonably necessary and will take such further action as may be necessary
      or
      appropriate, to carry out the terms and purposes of this Agreement.

     

    (g)           COMPLETE
      AGREEMENT; MODIFICATION.  This
      Agreement constitutes the entire agreement between the parties with respect
      to
      the transactions contemplated in this Agreement.  No representation,
      promise or inducement not included or required to be included in this Agreement
      will be binding upon any party.  Except as otherwise provided in this
      Agreement, this Agreement may be modified only by written agreement signed
      by
      both you and us.

     

    (h)           EXECUTION
      AND COUNTERPARTS.
      This Agreement
      may be executed in any number of counterparts, each of which will be deemed
      an
      original, but all of which will represent one agreement.

    (i)           UNDERSTANDING
      OF AGREEMENT.  You
      and we acknowledge and agree that each has read and understood this entire
      Agreement, and that this Agreement was entered into voluntarily and after having
      had all opportunities to seek such advice as each may have wished to
      receive.

     

    (j)           CUMULATIVE
      REMEDIES.
      The rights and
      remedies specifically granted by this Agreement to either party will not be
      deemed to prohibit either party from exercising any other right or remedy
      provided under this Agreement or permitted by law or equity.

     

    (k)           COSTS
      AND ATTORNEYS’ FEES.
      The party
      prevailing in any judicial proceeding between you and us (and either party’s
      affiliates), will be entitled to reimbursement of its costs and expenses,
      including reasonable accounting and attorneys’ fees.  Attorneys’ fees
      include, without limitation, reasonable legal fees charged by attorneys,
      paralegal fees, and costs and disbursements, whether incurred prior to, or
      in
      preparation for, or contemplation of, the filing of written demand or claim,
      action, hearing, proceeding.

     

    (l)           CERTAIN
      DEFINITIONS.  The
      term “affiliate” is applicable to any company that, directly or
      indirectly, owns or controls, is owned or controlled by or under common control
      with another person.  The terms “you” and
“your” are applicable to one or more persons,
      a corporation or
      a partnership, as the case may be, and the singular usage includes the plural
      and the masculine and neuter usages include the other and the
      feminine.  If two or more persons are at any time the Franchise,
      whether or not as partners or joint venturers, their obligations and liabilities
      to us are joint and several.  The term “person”
      includes individuals, corpora­tions, partnerships and all artificial
      entities.  The word “owner” means any person holding
      a direct or indirect, legal or beneficial ownership interest or voting rights
      in
      another person (or a transferee of this Agreement or an interest in you),
      including any person who has a direct or indirect interest in you or this
      Agreement and any person who has any other legal or equitable interest, or
      the
      power to vest in himself any legal or equitable interest, in the revenue,
      profits, rights or assets, and includes the term “Principal
      Owner.”

     

    (m)           CONTINUING
      OBLIGATIONS.  All
      obligations which expressly or by their nature survive the expiration or
      termination of this Agreement continue in full force and effect subsequent
      to
      and notwithstanding the expiration or termination of this Agreement and until
      they are satisfied or by their nature expire.

     

    (n)           GOVERNING
      LAW.  This
      Agreement and our relationship with you are governed by Florida law without
      regard to its conflict of laws provisions.  References to any law or
      regulation also refer to any successor laws or regulations and any implementing
      regulations for any statute, as in effect at the relevant
      time.  References to a governmental agency also refer to any successor
      regulatory body that succeeds to the function of such agency.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (o)           JURISDICTION.  You
      and we consent and irrevocably submit to the exclusive jurisdiction and venue
      of
      any state or federal court of competent jurisdiction located in Hillsborough
      County, Florida.  You and we waive any objection to the jurisdiction
      and venue of such courts.

     

    (p)           ARBITRATION
      PROCEEDINGS.  You
      agree that you must participate in any arbitration proceedings between or
      involving you and any of our franchise owners, and to the extent we require,
      us
      and any of our franchise owners.  You further agree that you will be
      bound by any arbitration award in connection with any such arbitration
      proceedings.  In connection with any such arbitration proceeding, you
      will execute an appropriate confidentiality agreement, excepting only such
      disclosures and filings as are required by law.

     

    (q)           FORCE
      MAJEURE.  Neither
      of the parties will be liable for loss or damage or deemed to be in breach
      of
      this Agreement if failure to perform obligations results from:

     

    (i)           Compliance
      with any law, ruling, order, regulation, requirement or instruction of any
      federal, state or municipal government or an department or agency
      thereof.

     

    (ii)           Acts
      of God, war or terror.

     

    (iii)           Acts
      or omissions of a similar event or cause.

     

    However,
      such
      delays or events do not excuse payments of amounts owed at any
      time.

     

    Intending
      to be
      bound, the parties to this Agreement now sign and deliver this Agreement in
      multiple counterparts:

     

    
      	 WE:	 	 	 YOU:	 
	 EVOS
              USA, INC.	 	 	 HEALTHY
              FAST FOOD, INC.	 
	 	 	 	 	 
	
              By: 
/s/
                Alkis Crassas

            	 	 	
              By:
                /s/ 
                Gregory R. Janson

            	 
	
              Name: 
                Alkis Crassas

            	 	 	
              Name: 
                Gregory R. Janson 

            	 
	
              Title: 
                President

            	 	 	
              Title: 
                President

            	 
	Date: 
              12/1/06	 	 	Date: 
              12/1/06	 

    

     

     

    
 

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    DEVELOPMENT
      SCHEDULE

    

    AREA
      REPRESENTATIVE AGREEMENT

     

    BETWEEN

     

    EVOS
      USA,
      INC.

     

    AND

     

    HEALTHY
      FAST FOOD, INC.

     

    DATED
      DECEMBER 1st,
      2006.

     

    

    (a)           Number
      of Restaurants to be Developed.  You
      must develop a total of 124 EVOS® Restaurants during the Development
      Period.

     

    (b)           Development
      Schedule.  You
      must open and maintain in operation the following cumulative minimum number
      of
      EVOS® Restaurants operating in the Territory as of the last day of each
      Development Year.  If you are ahead of the Development Schedule for
      new Restaurant openings in a Development Year, then the overage will be applied
      to the next Development Year’s required openings as long as you are also meeting
      the cumulative requirements.  For example, if during Development Year
      3 you open 27 new Restaurants and you have at least 41 in operation, the 3
      excess new Restaurants will count towards the Development Year 4 opening
      requirements.

     

    DEVELOPMENT
      SCHEDULE

     

    
      	
              Development
                Year

            	
              Number
                of New Restaurants

              Open
                and Operating

            	
              Cumulative
                Number to Maintain

              in
                Operation

            
	
              1

            	
              3

            	
              3

            
	
              2

            	
              7

            	
              10

            
	
              3

            	
              14

            	
              24

            
	
              4

            	
              18

            	
              42

            
	
              5

            	
              22

            	
              64

            
	
              6

            	
              12

            	
              76

            
	
              7

            	
              12

            	
              88

            
	
              8

            	
              12

            	
              100

            
	
              9

            	
              12

            	
              112

            
	
              10

            	
              12

            	
              124

            

    

    

    The
      first
      Development Year begins 6 months from the Effective Date (the
“Development Commencement Date”) and ends on the first day of
      the month following 12 full calendar months following the Development
      Commencement Date.  Then, each subsequent Development Year begins on
      each anniversary of the first day of Development Year 2 (i.e., if the
      Development Commencement Date is April 15, 2007, then Development Year 2 begins
      on May 1, 2008).

     

    
      
        
           TAMPDOCS\519491.9
            11/21/06      
    

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (c)           State
      Mininums.  In
      addition to meeting the Development Schedule described above for total number
      of
      new Restaurants open, operating and maintained in operation, you must develop
      Restaurants in a geographic dispersed manner so that you are fully exploiting
      the opportunity within the Territory.  Accordingly, by the end of
      Development Years 3 and 5, you must have opened and then maintained in operation
      the following number of Restaurants in the following states:

     

    

    
      	
              State

            	
              Year
                5

              Minimum
                Number 

              of Stores

            	
              Year
                3

              Minimum
                Number 

              of Stores

            
	
              Arizona

            	
              3

            	
              1

            
	
              Colorado

            	
              2

            	
              1

            
	
              Kansas

            	
              2

            	
              1

            
	
              Nevada

            	
              2

            	
              1

            
	
              New
                Mexico

            	
              2

            	
              1

            
	
              Ohio

            	
              6

            	
              2

            
	
              Oklahoma

            	
              2

            	
              1

            
	
              Oregon

            	
              2

            	
              1

            
	
              Texas

            	
              13

            	
              5

            
	
              Utah

            	
              2

            	
              1

            
	
              TOTAL

            	
              36

            	
              15

            

    

    

     

    No
      Applicants that
      are included in the sales process prior to the Effective Date of this Agreement
      will count towards your meeting the requirements of the Development
      Schedule.

     

    
       

      
        	 EVOS
                USA, INC.	 	 	 HEALTHY
                FAST FOOD, INC.	 
	 	 	 	 	 
	
                By: 
/s/
                  Alkis Crassas

              	 	 	
                By:
                  /s/ 
                  Gregory R. Janson

              	 
	
                Name: 
                  Alkis Crassas

              	 	 	
                Name: 
                  Gregory R. Janson 

              	 
	
                Title: 
                  President

              	 	 	
                Title: 
                  President

              	 
	Date: 
                12/1/06	 	 	Date: 
                12/1/06	 

      

       

    

    
      
        
          TAMPDOCS\519491.911/21/06                                                                                  
                        
          
          
              
    

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    PROJECTED
      CORPORATE STAFFING REQUIREMENTS 

    AREA
      REPRESENTATIVE AGREEMENT

    BETWEEN

    EVOS
      USA,
      INC.

    AND

    HEALTHY
      FAST FOOD, INC.

     

    DATED
      DECEMBER 1ST,
      2006

    

    

    
      	 	 	
                         Staffing
                by Year

            	 
	
              Positions

            	
              Year
                1

            	
              Year
                2

            	
              Year
                3

            	
              Year
                4

            	
              Year
                5*

            
	 	
              =====

            	
              =====

            	
              =====

            	
              =====

            	
              =====

            
	
              Director
                of
                Operations

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Director
                of
                Franchising

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Director
                of
                Marketing

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Director
                of
                Store Development

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Director
                of
                Training

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Director
                of
                Finance/CFO

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Accounting
                Support & Bookkeeper

            	
              1

            	
              1

            	
              1

            	
              1

            	
              1

            
	
              Field
                Supervisors

            	
              1

            	
              1

            	
              3

            	
              5

            	
              7

            
	 	
              =====

            	
              =====

            	
              =====

            	
              =====

            	
              =====

            
	
              Total
                Corporate HFFI Employees

            	
              8

            	
              8

            	
              10

            	
              12

            	
              14

            
	 	 	 	 	 	 
	 	 	 	 	 

    

    

    

    

    *Then
      maintain this
      minimum for Years 6-10.

     

    
      
        
          TAMPDOCS\519491.9
            11/21/06          

        

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    FORM
      OF
      SECURITIES SALE ADDENDUM

    TO
      THE AREA
      REPRESENTATIVE AGREEMENT

    BETWEEN

    EVOS
      USA,
      INC.

    AND

    HEALTHY
      FAST FOOD, INC.

     

    DATED
      DECEMBER 1ST,
      2006

    

    SECURITIES
      SALE ADDENDUM TO THE

    AREA
      REPRESENTATIVE AGREEMENT

    

    THIS
      ADDENDUM TO THE AREA REPRESENTATIVE AGREEMENT (this
“Addendum”) is effective as of December 1st,
      2006 (the
      "Effective Date"), regardless of the date of signatures, and
      amends and supplements the Area Representative Agreement dated as of December
      1st, 2006 (the
      “Agreement”), between EVOS USA, INC.
      (“we,” “us” or “our”) and
      you, HEALTHY FAST FOOD, INC. (“you,”
“your” or “Area
      Representative”).  You and we are sometimes individually
      referred to as a "party" or collectively as the
      "parties."

     

    BACKGROUND

    

    The
      parties
      previously entered into one or more Franchise Agreements which were subject
      to
      an addendum substantially the same as this Addendum. The parties are or have
      entered into one or more Area Representative Agreements under which this
      Addendum is applicable in the event of certain sales of the Area
      Representative’s securities.

     

    OPERATIVE
      TERMS

    

    The
      parties agree
      as follows:

     

    1.           Precedence
      and Defined Terms.  Terms
      not otherwise defined in this Addendum have the meanings as defined in the
      Agreement.  This Addendum modifies and supersedes any contrary
      provisions of the Agreement.  All other terms and conditions of the
      Agreement remain unaffected by this Addendum.

     

    2.           Negotiated
      Changes.  After
      negotiations, you and we have agreed to certain modifications to the Agreement,
      at your request and for your benefit.  This Addendum contains the
      agreements between you and us based on those negotiations.

     

    3.           Certain
      Definitions.  For
      purposes of Section the Agreement Addendum, the definition of the word
“owner” is limited to the persons described in that definition,
      but only if they also:

     

    (a)           serve
      as an officer, director, manager or other principal executive serving in a
      role
      similar to that of an officer and director of a corporation; or

     

    (b)           are
      persons who hold a 10% or more, direct or indirect, legal or beneficial
      ownership interest or voting rights, in the Area Representative, or have other
      legal or equitable interests or powers resulting in any legal or equitable
      interest in 10% or more of the revenue, profits, rights or assets of the Area
      Representative.

     

    The
      Area
      Representative represents that currently the only persons who meet this amended
      definition of “owner” are the following:  Gregory R. Janson, Ulderico
      Conte, Henry E.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Cartwright
      and
      Terry A. Cartwright.  Accordingly, only those 4 individuals will be
      required to complete the Principal Owner’s Guarantee You will require
      prospective owners who will not serve as an officer, director, manager or other
      principal executive serving in a role similar to that of an officer and director
      of a corporation to complete investor questionnaires enabling you to meet your
      investigatory and due diligence obligations regarding their
      background.

     

    4.           Transfer
      Restrictions.  Notwithstanding
      any contrary provisions in the Agreement:

     

    (a)           Prior
      to but not following your sale of securities through a public offering (as
      that
      term is defined under the Securities Act of 1933, as amended), our approval
      will
      be required for transfers or sales of equity interests in the Area
      Representative exceeding 5% or more.  You understand and acknowledge
      that this right of approval is intended to apply to single transfers and
      multiple transactions with a single transferee that, when combined, exceed
      5% or
      more during any 6 month period.  Prior to but not following your sale
      of securities through a public offering (as that term is defined under the
      Securities Act of 1933, as amended), you will not issue additional securities
      or
      permit the transfer of any securities in the Area Representative to
      anyone:

     

    (i)           who
      will have a legal or beneficial interest of 5% or more who has not received
      our
      approval, not to be unreasonably withheld;

     

    (ii)           who
      has been convicted of, or is the subject of any, indictment for any felony;
      or

     

    (iii)           who
      is an officer, director, manager (or any similar executive position), or owner
      of 5% or more of the equity or voting securities, of any Competitive Business
      who has not received our approval, not to be unreasonably withheld.

     

    (b)           We
      understand and approve your financing strategy to raise capital through one
      or
      more private placements of equity securities, to be placed with passive
      investors.  You have represented to us that the passive investors will
      not have management or control over you, and that the existing owners will
      retain all management rights and control over the Business Entity and its
      operations.  You recognize that we are not an issuer of any of the
      securities and you will provide us with copies of the private placement
      memorandum and other disclosure documents for our comment and review prior
      to
      your dissemination of such offering materials.  We may require you to
      include statements in such documents to clearly indicate to prospective
      investors that their relationship will be with you, and not with us, that we
      are
      for all purposes not an issuer of any of such securities, and that the investors
      will have no claims against us relating to their purchase or sale of any such
      securities.

     

    (c)           You
      have submitted to us a list of the identities of your current executive officers
      and directors.  Prior to but not following your sale of securities
      through a public offering (as that term is defined under the Securities Act
      of
      1933, as amended), you agree not to change any of them without obtaining our
      prior approval, which will not be unreasonably withheld.

     

    (d)           You
      will require prospective investors to complete investor questionnaires enabling
      you to meet your investigatory and due diligence obligations regarding their
      background so that you can assure that the investors are eligible to be
      investors and do not have backgrounds which conflict with Sections
      4(a)(ii)-(iii) above.

     

    
      
        
          TAMPDOCS\519491.911/21/06                                                                                                                                    

        

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.           Initial
      Public Offering.
      Under the
      Agreement, a public offering of your securities would be deemed a transfer
      that
      requires you to meet certain conditions, including obtaining our written consent
      and the commencement of our right of first refusal to acquire your
      Restaurants.  Nevertheless, we will not withhold our consent to your
      sale of securities through a public offering (as that term is defined under
      the
      Securities Act of 1933, as amended), and we will waive our right of first
      refusal, if all of the following conditions are met:

     

    (a)           Use
      of Proceeds.
      The net proceeds of such offering of securities are not used primarily for
      the
      purpose of developing, opening, acquiring and operating Competitive
      Businesses.  The terms "net proceeds" will mean the
      amount of funds raised in such offering less the offering costs described in
      the
      associated registration statement and prospectus (e.g., underwriters’
commissions, marketing expenses, legal and accounting fees, etc.).

     

    (b)           Management.  In
      the event that management does not include Gregory R. Janson and Ulderico Conte,
      we have approved the identity, duties and responsibilities of your Chief
      Executive Officer and Chief Operating Officer who must have requisite experience
      in the restaurant industry that otherwise meets the qualifications of our
      individual franchise owners.  Such approval will not be unreasonably
      withheld.

     

    (c)           Informational
      Requirements.
      Due to the application of the U.S. federal and state securities laws, you
      recognize you will be required to disclose various information to prospective
      investors in a public offering.  This information may reflect upon
      us.  Accordingly, prior to engaging in any public offering and/or
      disseminating any preliminary prospectuses or other offering materials, you
      agree to submit to us any such written information concerning us prior to its
      inclusion in any registration statement, prospectus, preliminary prospectus
      or
      other offering circular, business plan or other documentation to be used in
      connection with the offering.  Information regarding us may only be
      used after we have provided our written consent to its use, and such consent
      shall not being unreasonably withheld.  Our consent to the use of such
      information, however, does not imply or constitute our approval with respect
      to
      the sale of the underlying securities, the offering literature submitted to
      us,
      or any other aspect of the offering.  No information regarding us will
      be included in any securities disclosure or offering documents, unless such
      information has been furnished by us, in writing, pursuant to your request,
      or
      we have previously approved it.  When requesting such information from
      us, you must state the specific purpose for which the information will be used
      when making the request.  If we object to any information regarding us
      in any offering literature, prospectus or other documentation, you must not
      use
      such information unless and until our concerns are satisfied or our objections
      are withdrawn.  We assume no responsibility for the offering
      whatsoever.

     

    (d)           Required
      Legend.  The
      prospectus, offering document or other offering literature must contain the
      following language in bold-faced type in a prominent location mutually
      acceptable to you and us:

     

    EVOS
      USA,
      INC. IS NOT DIRECTLY OR INDIRECTLY THE ISSUER OF THE SECURITIES OFFERED AND
      ASSUMES NO RESPONSIBILITY WITH RESPECT TO THIS OFFERING AND/OR THE ADEQUACY
      OR
      ACCURACY OF THE INFORMATION DESCRIBED HEREIN, INCLUDING ANY STATEMENTS MADE
      WITH
      RESPECT TO IT.  EVOS USA, INC. DOES NOT ENDORSE OR MAKE ANY
      RECOMMENDATION WITH RESPECT TO THE INVESTMENT CONTEMPLATED BY THIS
      OFFERING.

     

    (e)           Exchange
      Listings.
      You must not use our service marks, trademarks, trade names or any portion
      or
      abbreviation of them, or any word or letters bearing such a resemblance in
      any
      listing with any exchange, CUSIP forum, or any abbreviation for any stock
      exchange listings in the media or otherwise.  In particular, the word
      EVOS will not be so used.

     

    
      
        
          TAMPDOCS\519491.911/21/06                                                                                                                                        

        

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (f)           Timing.
      Neither of the parties may engage in any public offering of its securities
      at
      any time within 90 days before or after the commencement or end of any public
      offering of securities by the other party.

     

    (g)           Indemnification.
      You agree to indemnify, defend and hold us and our officers, directors,
      employees and agents, harmless from and against any and all claims, demands,
      liabilities, and all costs and expenses (including our cost of defense which
      includes reasonable attorneys' fees) incurred in the defense of any claims,
      demands or liabilities arising from your offer or sale of securities, whether
      asserted by a purchaser of any such security or by any governmental
      agency.  We have the right (but not the obligation) to defend any such
      claims, demands or liabilities and/or to participate in the defense of any
      action in which we are named as a party.

     

    (h)           Notifications.
      Once you become a "public company" (as that term is used in connection with
      the
      Securities and Exchange Act of 1934, as amended), you will be required to file
      certain periodic reports with the U.S. Securities and Exchange Commission (the
      "SEC").  In addition, your stockholders will also be required to file
      certain notices with the SEC under certain circumstances.  You agree
      to furnish us with copies of all filings, notices and reports made by you or
      by
      any of your stockholders that concern you or your securities to us if such
      filings, notices and reports are not publicly available.  In
      particular, you agree to provide us with notification any time any person or
      group acquires a 10% or greater ownership interest in your securities if such
      information is not publicly available.

     

    6.           Competitive
      Restrictions

     

    (a)           Competitive
      Business.
      Prior to but not following your sale of securities through a public offering
      (as
      that term is defined under the Securities Act of 1933, as amended), you and
      we
      agree that ownership of 5% or more of your securities by any other person,
      group
      or company that is engaged in a Competitive Business without our prior written
      approval would constitute a material breach of this Agreement.  If
      such a breach is not cured within 60 days of written notice to you, we may
      terminate the Agreement and any other agreement we have with you or your
      affiliates, and exercise any or all rights to acquire the Area Representative
      Business and any development rights in accordance with the post-termination
      obligations described in the Agreement.

     

    (b)           Board
      Membership.
      Prior to but not following your sale of securities through a public offering
      (as
      that term is defined under the Securities Act of 1933, as amended), no member
      of
      your Board of Directors, operating managers (in the case of a partnership or
      limited liability company) may be affiliated with any Competitive Business
      without our prior written approval.

     

    7.           Transfers
      and Assignment.
      Your rights under
      this Addendum are personal to you and may not be transferred in conjunction
      with
      the Agreement and do not inure to the benefit of your successors or
      assigns.  You may not transfer or assign any rights under this
      Addendum in a manner regardless if part of or separate from the transfer or
      assignment of the entire Franchise Agreement.  This Addendum will
      automatically cancel if you engage in any transaction in which 50% or more
      of
      the ownership interests in the Area Representative (including any equity
      interests, profits interests, or rights to cash flows) is transferred to anyone
      who serves as an officer, director, manager or other principal executive serving
      in a role similar to that of an officer and director of a corporation who is
      not
      affiliated with the Area Representative.

     

    8.           Termination.
      This Addendum
      will automatically terminate at the same time as the Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    9.           Remaining
      Terms Unaffected. 
All
      remaining terms and conditions of the Agreement are unaffected by this Addendum,
      and continue to be effective and binding on the parties.

     

    Intending
      to be
      bound, you and we sign and deliver this Addendum effective as of the Effective
      Date, regardless of the actual date of signature.

     

    
       

      
        	 HEALTHY
                FAST FOOD, INC.	 	 	 EVOS
                USA, INC.	 
	 	 	 	 	 
	
                By: 
/s/
                  Gregory R. Janson

              	 	 	
                By:
                  /s/  Alkis Crassas

              	 
	
                Name: 
                  Gregory R. Janson

              	 	 	
                Name:  Alkis
                  Crassas 

              	 
	
                Title: 
                  President

              	 	 	
                Title: 
                  President

              	 
	Date: 
                12/1/06	 	 	Date: 
                12/1/06

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]