Document:

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                                                                   Exhibit 4.41

                            ASSET PURCHASE AGREEMENT

                                 BY AND BETWEEN

                                OS PACIFIC, INC.

                                      AND

           RESTAURANT CONCEPTS OF BONITA SPRINGS, LIMITED PARTNERSHIP

                               DATED JUNE 1, 2000

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                            ASSET PURCHASE AGREEMENT

TABLE OF CONTENTS

1.       PURCHASE OF THE RESTAURANTS.........................................1
         1.1      Purchased Assets...........................................1
         1.2      Purchase Price.............................................1
         1.3      Adjustments to Estimated Purchase Price ...................2
         1.4      Allocation of Purchase Price...............................2

2.       TRANSFER OF ASSETS .................................................2
         2.1      Definition of Purchased Assets.............................2
         2.2      Prorations.................................................3
         2.3      Excluded Assets............................................4

3.       LIABILITIES.........................................................4
         3.1      Liabilities Not to be Assumed..............................4
         3.2      Liabilities to be Assumed..................................5

4.       REPRESENTATIONS AND WARRANTIES OF THE SELLER........................6
         4.1      General....................................................6
         4.2      Authority..................................................6
         4.3      No Violation...............................................6
         4.4      Financial Statements.......................................6
         4.5      Tax Matters................................................7
         4.6      Accounts Receivable........................................7
         4.7      Inventory..................................................7
         4.8      Absence of Certain Changes.................................7
         4.9      Absence of Undisclosed Liabilities.........................8
         4.10     No Litigation..............................................8
         4.11     Compliance With Laws and Orders............................8
         4.12     Title to and Condition of Properties.......................9
         4.13     Insurance..................................................9
         4.14     Contracts and Commitments.................................10
         4.15     Labor Matters.............................................11
         4.16     Employee Benefit Plans....................................11
         4.17     Employment Compensation...................................12
         4.18     Intellectual Property.....................................12
         4.19     Major Suppliers...........................................12
         4.20     Assets Necessary to Business..............................12
         4.21     No Brokers or Finders.....................................12
         4.22     Disclosure................................................12

5.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER.................12
         5.1      Corporate.................................................13
         5.2      Authority.................................................13
         5.3      No Brokers or Finders.....................................13
         5.4      Disclosure................................................13
         5.5      Buyer's Cooperation.......................................13
         5.6      Other Action..............................................13

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6.       EMPLOYEES - EMPLOYEE BENEFITS......................................13
         6.1      Affected Employees........................................13
         6.2      Retained Responsibilities.................................13
         6.3      Payroll Tax...............................................14
         6.4      Termination Benefits......................................14

7.       OTHER MATTERS......................................................14
         7.1      Pre-Closing Revenue and Expenses..........................14
         7.2      Post Closing Revenue and Expenses.........................14
         7.3      Confidentiality...........................................14
         7.4      Non-Solicitation..........................................14
         7.5      Reasonableness of Restrictions; Reformation; Enforcement..15
         7.6      Specific Performance......................................15

8.       FURTHER COVENANTS OF THE SELLER....................................15
         8.1      Access to Information and Records.........................15
         8.2      Conduct of Business Pending the Closing...................16
         8.3      Consents..................................................16
         8.4      Other Action..............................................16
         8.5      Disclosure................................................17

9.       CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS........................17
         9.1      Representations and Warranties True on the
                  Closing Date..............................................17
         9.2      Compliance With Agreement.................................17
         9.3      Absence of Litigation.....................................17
         9.4      Consents and Approvals....................................17
         9.5      Termination of Employment Agreement.......................17

10.      CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS.......................17
         10.1     Representations and Warranties True on the
                  Closing Date..............................................17
         10.2     Compliance With Agreement.................................17
         10.3     Absence of Litigation.....................................18

11.      INDEMNIFICATION....................................................18
         11.1     By the Seller ............................................18
         11.2     By Buyer..................................................18
         11.3     Indemnification of Third-Party Claims.....................18
         11.4     Payment...................................................19
         11.5     No Waiver.................................................19
         11.6     Survival of Indemnification...............................19

12.      CLOSING............................................................19
         12.1     Closing Date..............................................19
         12.2     Place of Closing..........................................19
         12.3     Documents to be Delivered by the Seller...................20
         12.4     Documents to be Delivered by Buyer........................20

13.      TERMINATION........................................................21
         13.1     Right of Termination Without Breach.......................21
         13.2     Termination for Breach....................................21

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14.      MISCELLANEOUS......................................................21
         14.1     Disclosure Schedules......................................21
         14.2     Further Assurance.........................................21
         14.3     Disclosures and Announcements.............................22
         14.4     Assignment; Parties in Interest...........................22
         14.5     Law Governing Agreement...................................22
         14.6     Amendment and Modification................................22
         14.7     Notice....................................................22
         14.8     Expenses..................................................23
         14.9     Entire Agreement..........................................24
         14.10    Counterparts..............................................24
         14.11    Headings..................................................24

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                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT (this "Agreement") is dated June 1,
2000, and entered into by and between OS PACIFIC, INC., a Florida corporation
("Buyer"), and RESTAURANT CONCEPTS OF BONITA SPRINGS, LIMITED PARTNERSHIP, a
Florida limited partnership (the "Seller").

                                    RECITALS

         A.       Seller is a Florida limited partnership governed by and
operating under that certain Agreement of Limited Partnership of Restaurant
Concepts of Bonita Springs, Limited Partnership dated December 31, 1998
("Agreement of Limited Partnership").

         B.       The Seller is engaged in the business of owning and operating
an upscale restaurant known as "Roy's" and located at The Promenades, Space No.
A-1, Bonita Springs, Florida ("Restaurant").

         C.       The Restaurant utilizes trademarks, recipes and operating
systems as a licensee of Roy Yamaguchi and Roy's Worldwide, Inc. pursuant to a
Licensing and Services Agreement dated July 16, 1998 ("Licensing Agreement").

         D.       Pursuant to the provisions hereof, Buyer desires to purchase
from the Seller and the Seller desires to sell to Buyer substantially all of
the property and assets of the Seller, including the Restaurant.

         NOW THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants, agreements and conditions hereinafter
set forth, and intending to be legally bound hereby, the parties hereto agree
as follows.

1.       PURCHASE OF THE RESTAURANTS

         1.1      Purchased Assets. Subject to the terms and conditions of this
Agreement, on the Closing Date (as defined in SECTION 12.1), the Seller shall
sell, transfer, convey, assign and deliver to Buyer (or upon Buyer's request,
to an Affiliate of Buyer) and Buyer shall purchase and accept all of the
business, rights, claims and assets (of every kind, nature, character and
description, whether real, personal or mixed, whether tangible or intangible,
whether accrued, contingent or otherwise, and wherever situated) of the Seller,
together with all rights and privileges associated with such assets and with
the Restaurant and the business of the Seller, other than the Excluded Assets
(as hereinafter defined) (collectively the "Purchased Assets"), free and clear
of any debts, liabilities, claims, encumbrances or obligations other than the
Assumed Liabilities, as hereafter defined. The Purchased Assets shall include,
but not be limited to, those assets listed in ARTICLE 2 hereof. For purposes of
this Agreement, the term "Affiliate" shall mean any individual or entity
(hereafter a "Person"), directly or indirectly, through one or more
intermediaries, controlling, controlled by, or under common control with such
Person, as applicable. With respect to the Seller, the term "Affiliate" shall
include F. Beaven Smith and Ronald A. Patak. The term "control," as used in the
immediately preceding sentence, shall mean with respect to a corporation or
limited liability Seller the right to exercise, directly or indirectly, more
than fifty percent (50%) of the voting rights attributable to the controlled
corporation or limited liability company, and, with respect to any individual,
partnership, trust, other entity or association, the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of the controlled entity.

         1.2.     Purchase Price. The Purchase Price shall be Four Million
Eight Hundred Thousand Dollars ($4,800,000), subject to adjustments as provided
herein. On the Closing Date, the Purchase Price shall be paid in the form of
certified or bank cashier's check payable to the order of the Seller or at the
Seller's option, by wire transfer of immediately available funds to an account
designated by the Seller.

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         1.3.     Adjustment to Estimated Purchase Price.

                  1.3(a)   Credits to Seller. The Purchase Price paid to the
         Seller in cash on the Closing Date pursuant to SECTION 1.2 shall be
         increased by the amount of any security deposits paid by the Seller
         pursuant to any Real Property Lease transferred to the Buyer in
         accordance with the terms of this Agreement and utility and other
         deposits paid by Seller and transferred to Buyer; and

                  1.3(b)   Credits to Buyer. Buyer shall assume and Buyer shall
         receive a credit against the Purchase Price paid to the Seller in cash
         on the Closing Date pursuant to SECTION 1.2 in an amount equal to:

                           (i)      all vacation, holiday and sick pay unpaid
                  by the Seller as of the Closing Date attributable to any
                  period or partial period of employment by the Seller prior to
                  the Closing Date, plus employee payroll taxes applicable
                  thereto due or to become due, for those employees of the
                  Seller who will be employed by Buyer after the Closing Date
                  and who have not as of the Closing Date taken vacation,
                  holiday or sick time earned prior to the Closing Date; and

                           (ii)     the amount of unredeemed gift certificates.

                  1.3(c)   Invoice. In lieu of the credits provided for in
         SECTIONS 1.3(A) AND 1.3(B), either party may, within one year of the
         Closing Date, invoice the other party for any item for which such
         party would be entitled to a credit under SECTIONS 1.3(A) OR 1.3(B)
         and the other party shall pay the undisputed amount within thirty (30)
         days of receipt of the invoice.

         1.4.     Allocation of Purchase Price. The aggregate Purchase Price
(including the assumption by Buyer of the Assumed Liabilities) shall be
allocated among the Purchased Assets for tax purposes in accordance with
SCHEDULE 1.4 attached hereto. The Seller and Buyer will follow and use such
allocation in all tax returns, filings or other related reports made by them to
any governmental agencies. To the extent that disclosures of this allocation
are required to be made by the parties to the Internal Revenue Service ("IRS"),
Buyer and the Seller will disclose such reports to the other prior to filing
with the IRS.

2.       TRANSFER OF ASSETS

         2.1.     Definition of Purchased Assets. The Purchased Assets shall
include, but not be limited to, the following:

                  2.1(a)   Leased Real Property. The lease of real property
         dated July 8, 1998 between Promenade at Bonita Bay, L.P., as Landlord,
         and Seller, as Tenant, for the Restaurant located at The Promenade,
         Space No. A-1, Bonita Springs, Florida (the "Real Property Lease")
         with respect to the real property described therein (the "Leased Real
         Property").

                  2.1(b)   Personal Property. All machinery, equipment,
         vehicles, tools, supplies, spare parts, furniture, smallwares and all
         other personal property owned, utilized or held for use by the Seller
         in the operation of the Restaurant or located at the Restaurant.

                  2.1(c)   Inventory. All inventory held by the Seller on the
         Closing Date, which shall be that level of inventory typically held at
         the Restaurant in the ordinary course of business.

                  2.1(d)   Contracts. All rights in, to and under the Licensing
         Agreement and those agreements, contracts and purchase orders
         (hereinafter "Contracts") of the Seller specified in SCHEDULE 2.1(d).
         Buyer does not assume any agreement, contract or purchase order of
         Seller not specified in SCHEDULE 2.1(d). To the extent that any
         Contract for which assignment to Buyer as provided herein is not
         assignable without

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         the consent of another party, this Agreement shall not constitute an
         assignment or an attempted assignment thereof if such assignment or
         attempted assignment would constitute a breach thereof. The Seller and
         Buyer agree to use their reasonable best efforts (without any
         requirement on the part of Buyer or Seller to pay any money or, on the
         part of Buyer, to agree to any change in the terms of any such
         Contract) to obtain the consent of such other party to the assignment
         of any such Contract to Buyer in all cases in which such consent is or
         may be required for such assignment. If any such consent shall not be
         obtained, the Seller agrees to cooperate with Buyer in any reasonable
         arrangement designed to provide for Buyer the benefits intended to be
         assigned to Buyer under the relevant Contract, including enforcement
         at the cost and for the account of Buyer of any and all rights of the
         Seller against the other party thereto arising out of the breach or
         cancellation thereof by such other party or otherwise. If and to the
         extent that such arrangement cannot be made, Buyer, upon notice, shall
         have no obligation pursuant to SECTION 3.2 or otherwise with respect
         to any such Contract and any such Contract shall not be deemed to be a
         Purchased Asset hereunder.

                  2.1(e)   Computer Software. All computer source codes,
         programs and other software of the Seller, including all machine
         readable code, printed listings of code, documentation and related
         property and information of the Seller.

                  2.1(f)   Literature. All menus, sales literature and
         promotional literature and similar materials of the Seller.

                  2.1(g)   Records and Files. All records, files, invoices,
         supplier lists, blueprints, specifications, designs, drawings,
         accounting records, business records, operating data and other data of
         the Seller.

                  2.1(h)   Notes and Accounts Receivable. All notes, drafts and
         accounts receivable of the Seller, except those owed by affiliates of
         Seller.

                  2.1(i)   Licenses; Permits. All licenses, permits and
         approvals of the Seller to the extent the same may be assigned to
         Buyer.

                  2.1(j)   General Intangibles. All causes of action arising
         out of occurrences before or after the Closing Date, and all other
         intangible rights and assets of the Seller.

         2.2.     Prorations. The following prorations relating to the
 Purchased Assets will be made as of the Closing Date, with the Seller liable to
the extent such items relate to any time period up to and including the Closing
Date and Buyer liable to the extent such items relate to periods subsequent to
the Closing Date. The net amount of all such prorations will be settled and
paid on the Closing Date, if possible, and if not possible then as soon as
practicable thereafter.

                  2.2(a)   Personal property taxes, real estate taxes and
         assessments, and other taxes, if any, on or with respect to the
         Purchased Assets; provided that special assessments levied prior to
         the Closing Date shall be paid by the Seller.

                  2.2(b)   Rents, additional rents, taxes and other items
         payable by the Seller under any lease, license, permit, contract or
         other agreement or arrangement to be assigned to or assumed by Buyer.

                  2.2(c)   The amount of rents, taxes and charges for sewer,
         water, fuel, telephone, electricity and other utilities; provided that
         if practicable, meter readings shall be taken on the applicable
         Closing Date and the respective obligations of the parties determined
         in accordance with such readings.

                  2.2(d)   All other items normally adjusted in connection with
         similar transactions.

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         If the actual expense of any of the above items for the billing period
within which the Closing Date falls is not known on the Closing Date, the
proration shall be made as soon as such actual expense becomes known. The
Seller agrees to furnish Buyer with such documents and other records as shall
be reasonably requested in order to confirm all proration calculations.

         2.3.     Excluded Assets. The provisions of SECTION 2.1
notwithstanding, the Seller shall not sell, transfer, assign, convey or deliver
to Buyer, and Buyer will not purchase or accept the following assets of the
Seller (collectively the "Excluded Assets"):

                  2.3(a)   Cash and Cash Equivalents. All cash and cash
         equivalents, other than petty cash balances at the Restaurants.

                  2.3(b)   Consideration. The consideration delivered by Buyer
         pursuant to this Agreement, Seller's other rights under or in
         connection with this Agreement, and any other agreements or
         instruments contemplated hereby or thereby.

                  2.3(c)   Tax Credits and Records. Federal, state and local
         income and franchise tax credits and tax refund claims and associated
         returns and records; provided however, Buyer shall have reasonable
         access to such returns and records and may make excerpts therefrom and
         copies thereof.

                  2.3(d)   Organizational Documents. The Seller's Agreement of
         Limited Partnership, minute book and other records having exclusively
         to do with the organization and capitalization of the Seller; provided
         however, Buyer shall have reasonable access to such books and records
         and may make excerpts therefrom and copies thereof.

                  2.3(e)   Employee Records. Any and all employee books and
         records to the extent that such transfer of books and records would be
         in violation of any laws, provided Seller shall provide Buyer with
         copies of such books and records.

3.       LIABILITIES

         3.1.     Liabilities Not to be Assumed. As used in this Agreement, the
term "Liability" shall mean and include any direct or indirect indebtedness,
guaranty, endorsement, claim, loss, damage, deficiency, cost, expense,
obligation or responsibility, fixed or unfixed, known or unknown, asserted or
unasserted, liquidated or unliquidated, secured or unsecured. The Seller agrees
to timely pay and discharge all Liabilities which relate to periods on or
before the Closing Date. Except as and to the extent specifically set forth in
SECTION 3.2, Buyer is not assuming any Liabilities of the Seller and all such
Liabilities shall be and remain the responsibility of the Seller. Without
limiting the generality of the foregoing, Buyer is not assuming and the Seller
shall not be deemed to have transferred to Buyer the following Liabilities of
the Seller:

                  3.1(a)   Income and Franchise Taxes. Any Liability of the
         Seller for Federal income taxes and any state or local income, profit
         or franchise taxes (and any penalties or interest due on account
         thereof).

                  3.1(b)   Insured Claims. Any Liability insured against, to
         the extent such Liability is or will be paid by an insurer.

                  3.1(c)   Litigation Matters. Any Liability with respect to
         any action, suit, proceeding, arbitration, investigation or inquiry,
         whether civil, criminal or administrative ("Litigation"), whether or
         not described in SCHEDULE 4.10.

                  3.1(d)   Infringements. Any Liability to a third party for
         infringement of any third party's intellectual property.

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                  3.1(e)   Transaction Expenses. Except as provided in SECTION
         14.8, or elsewhere in this Agreement, all Liabilities incurred by
         Seller in connection with this Agreement and the transactions
         contemplated herein.

                  3.1(f)   Liability For Breach. Liabilities of the Seller for
         any breach or failure to perform any of the Seller's covenants and
         agreements contained in, or made pursuant to, this Agreement, or,
         prior to the Closing Date, any other contract, whether or not assumed
         hereunder, including breach arising from assignment of contracts
         hereunder without consent of third parties.

                  3.1(g)   Liabilities to Affiliates. Liabilities to present or
         former Affiliates, except obligations for compensation for services
         rendered as an employee pursuant to plans or practices discussed in
         SECTION 4.16.

                  3.1(h)   Violation of Laws or Orders. Liabilities for any
         violation of or failure to comply with any statute, law, ordinance,
         rule or regulation (collectively, "Laws") or any order, writ,
         injunction, judgment, plan or decree (collectively, "Orders") of any
         court, arbitrator, department, commission, board, bureau, agency,
         authority, instrumentality or other body, whether federal, state,
         municipal, foreign or other (collectively, "Government Entities").

         3.2.     Liabilities to be Assumed. Subject to the terms and
conditions of this Agreement, on the Closing Date, Buyer shall assume and agree
to perform and discharge the following, and only the following Liabilities of
the Seller (collectively the "Assumed Liabilities"):

                  3.2(a)   Contractual Liabilities. The Seller's Liabilities
         arising from events occurring after the Closing Date under and
         pursuant to the following Contracts:

                           (i)      The Real Property Lease.

                           (ii)     All Contracts described in SCHEDULE 2.1(D);
                  and

                           (iii)    Every Contract entered into by the Seller
                  in the ordinary course of business which does not involve
                  consideration or other expenditure by the Seller payable or
                  performable on or after the Closing Date in excess of One
                  Thousand Dollars ($1,000) or performance over a period of
                  more than twelve (12) months.

         The Contracts described in SECTIONS 3.2(A)(I), (II) AND (III) above
are hereinafter collectively described as the "Assumed Contracts." The Buyer
agrees to indemnify, defend and hold harmless Seller for any Liability,
including reasonable attorneys' fees, resulting from any and all guarantees
executed in connection with the Real Property Lease assumed by the Buyer
pursuant to SECTION 3.2(A)(I) above, to the extent such liability arises out of
any events first occurring subsequent to the Closing Date. Buyer assumes no
agreement or contract of Seller except the Assumed Contracts.

                  3.2(b)   Liabilities Under Permits and Licenses. The Seller's
         Liabilities arising from events occurring after the Closing Date under
         any permits or licenses listed in SCHEDULE 3.2(B) and assigned to
         Buyer at the Closing.

                  3.2(c)   Other Obligations. The obligations set forth in
         SECTION 1.3(B) above, to the extent of the credit received by Buyer.

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4.       REPRESENTATIONS AND WARRANTIES OF THE SELLER

         The Seller represents and warrants to Buyer that, each of the
following is true and correct in all material respects on the date hereof
except to the extent identified in disclosure schedules referred to below in
this SECTION 4 and attached to this Agreement ("Disclosure Schedules"), shall
remain true and correct in all material respects to and including the Closing
Date and shall be unaffected by any investigation heretofore or hereafter made
by Buyer, or, except as specifically provided herein, any knowledge of Buyer,
and shall survive the closing of the transactions provided for eighteen (18)
months from the Closing Date.

         4.1.     General.

                  4.1(a)   Organization. The Seller is a limited partnership
         duly organized, validly existing and in good standing under the laws
         of the State of Florida.

                  4.1(b)   Power. The Seller has all requisite partnership
         power and authority to own, operate and lease its properties, to carry
         on its businesses as and where such are now being conducted, to enter
         into this Agreement and the other documents and instruments to be
         executed and delivered by the Seller pursuant hereto and to carry out
         the transactions contemplated hereby and thereby.

                  4.1(c)   No Subsidiaries. The Seller does not own any
         interest in any corporation, partnership or other entity.

         4.2.     Authority. The execution and delivery of this Agreement and
the other documents and instruments to be executed and delivered by the Seller
pursuant hereto and the consummation of the transactions contemplated hereby
and thereby have been duly authorized by all necessary partnership action on
the part of the Seller. Other than as specifically provided in this Agreement
or disclosed in the Disclosure Schedules, no other or further act or proceeding
on the part of the Seller is necessary to authorize this Agreement or the other
documents and instruments to be executed and delivered by the Seller pursuant
hereto or the consummation of the transactions contemplated hereby and thereby.
This Agreement constitutes, and when executed and delivered, the other
documents and instruments to be executed and delivered by the Seller pursuant
hereto will constitute, valid binding agreements of the Seller, enforceable in
accordance with their respective terms, except as such may be limited by
bankruptcy, insolvency, reorganization or other laws affecting creditors'
rights generally, and by general equitable principles.

         4.3.     No Violation. Except as set forth on SCHEDULE 4.3, neither
the execution and delivery of this Agreement or the other documents and
instruments to be executed and delivered by the Seller pursuant hereto, nor the
consummation by the Seller of the transactions contemplated hereby and thereby
(a) will violate any applicable Law or Order, (b) will require any
authorization, consent, approval, exemption or other action by or notice to any
Government Entity, or (c) subject to obtaining the consents referred to in
SCHEDULE 4.3, will violate or conflict with, or constitute a default (or an
event which, with notice or lapse of time, or both, would constitute a default)
under, or will result in the termination of, or accelerate the performance
required by, or result in the creation of any Lien (as defined in SECTION
4.12(A)) upon any of the assets of the Seller under, any term or provision of
the Agreement of Limited Partnership of the Seller or of any material contract,
commitment, understanding, arrangement, agreement or restriction of any kind or
character to which the Seller is a party or by which the Seller or any of its
assets or properties may be bound or affected.

         4.4.     Financial Statements. Included as SCHEDULE 4.4 are true and
complete copies of the financial statements of the Seller consisting of (i)
unaudited balance sheets of the Seller as of December 31, for the two (2) most
recent calendar years, and the related statements of income and cash flows for
the years then ended (including the notes contained therein or annexed
thereto), and (ii) an unaudited balance sheet of the Seller as of April 30,
2000 of the current year (the "Recent Balance Sheet"), and the related
unaudited statements of income

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and cash flows for the four (4) months then ended and for the corresponding
period of the prior year (including the notes and schedules contained therein
or annexed thereto). All of such financial statements (including all notes and
schedules contained therein or annexed thereto) are true, complete and
accurate, have been prepared in accordance with the cash basis accounting
method, have been prepared in accordance with the books and records of the
Seller, and fairly present, in accordance with generally accepted accounting
principles, the assets, liabilities and financial position, the results of
operations and cash flows of the Seller as of the dates and for the years and
periods indicated.

         4.5.     Tax Matters. Except as set forth on SCHEDULE 4.5 all state,
county, local and other tax returns required to be filed by or on behalf of the
Seller have been timely filed and when filed were true and correct in all
material respects, and the taxes shown as due thereon were paid or adequately
accrued. The Seller has duly withheld and paid all taxes that it is required to
withhold and pay relating to salaries and other compensation heretofore paid to
the employees of the Seller.

         4.6.     Accounts Receivable. All accounts receivable of the Seller
reflected on the Recent Balance Sheet, and as incurred in the normal course of
business since the date thereof represent arm's length transactions actually
made in the ordinary course of business; to the best of the Seller's knowledge,
are collectible (net of the reserves shown on the Recent Balance Sheet for
doubtful accounts) in the ordinary course of business without the necessity of
commencing legal proceedings; are subject to no counterclaim or setoff; and are
not in dispute.

         4.7.     Inventory. All inventory of the Seller reflected on the
Recent Balance Sheet consisted of a quality and quantity usable and saleable in
the ordinary course of business, had a commercial value at least equal to the
value shown on such balance sheet. All inventory purchased since the date of
such balance sheet consisted of a quality and quantity usable and saleable in
the ordinary course of business. All current inventory of the Seller is located
on premises leased by the Seller as reflected in this Agreement.

         4.8.     Absence of Certain Changes. Except as and to the extent set
forth in SCHEDULE 4.8, since the date of the Recent Balance Sheet there has not
been:

                  4.8(a)   No Adverse Change. Any material adverse change in
         the financial condition, assets, Liabilities, business, prospects or
         operations of the Seller;

                  4.8(b)   No Damage. Any material loss, damage or destruction,
         whether covered by insurance or not, affecting Seller's business or
         properties;

                  4.8(c)   No Increase in Compensation. Other than such thereof
         as has occurred in the ordinary course of business, any increase in
         the compensation, salaries or wages payable or to become payable to
         any employee of the Seller (including, without limitation, any
         increase or change pursuant to any bonus, pension, profit sharing,
         retirement or other plan or commitment), or any bonus or other
         employee benefit granted, made or accrued;

                  4.8(d)   No Labor Disputes. Any labor dispute or disturbance,
         other than routine individual grievances which are not material to the
         business, financial condition or results of operations of the Seller;

                  4.8(e)   No Commitments. Any material commitment or
         transaction by the Seller (including, without limitation, any
         borrowing or capital expenditure) other than in the ordinary course of
         business consistent with past practice;

                  4.8(f)   No Disposition of Property. Any sale, lease or other
         transfer or disposition of any properties or assets of the Seller,
         except in the ordinary course of business;

                                       7
<PAGE>   12

                  4.8(g)   No Indebtedness. Any indebtedness for borrowed money
         incurred, assumed or guaranteed by the Seller;

                  4.8(h)   No Liens. Any Lien made on any of the properties or
         assets of the Seller other than liens for taxes not yet due and
         payable;

                  4.8(i)   No Amendment of Contracts. Any entering into,
         amendment or termination by the Seller of any contract, or any waiver
         of material rights thereunder, other than in the ordinary course of
         business;

                  4.8(j)   No Unusual Events. Any other event or condition not
         in the ordinary course of business of the Seller.

         4.9.     Absence of Undisclosed Liabilities. Except as and to the
extent specifically disclosed in the Recent Balance Sheet, or in SCHEDULE 4.9,
the Seller does not have any Liabilities other than liabilities and obligations
incurred since the date of the Recent Balance Sheet in the ordinary course of
business and consistent with past practice and none of which has or will have a
material adverse effect on the business, financial condition or results of
operations of the Seller. Except as and to the extent described in the Recent
Balance Sheet or in SCHEDULE 4.9, the Seller has no knowledge of any basis for
the assertion against the Seller of any Liability and to the knowledge of the
Seller, there are no circumstances, conditions, happenings, events or
arrangements, contractual or otherwise, which may give rise to Liabilities,
except for liabilities and obligations incurred in the ordinary course of the
Seller's business.

         4.10.    No Litigation. Except as set forth in SCHEDULE 4.10 there is
no Litigation pending or, to the knowledge of the Seller, threatened against
the Seller, its managers or members (in such capacity), its business or its
assets, nor does the Seller know, or have grounds to know, of any basis for any
such Litigation. SCHEDULE 4.10 also identifies all Litigation to which the
Seller or its managers or members (in such capacity) have been parties since
July 31, 1998. Except as set forth in SCHEDULE 4.10, neither the Seller nor its
business or assets are subject to any Order of any Government Entity.

         4.11.    Compliance With Laws and Orders.

                  4.11(a)  Compliance. Except as set forth in SCHEDULE 4.11(A),
         to the best of Seller's knowledge, the Seller (including its
         operations, practices, properties and assets) is in material
         compliance with all applicable Laws and Orders, including, without
         limitation, those applicable to discrimination in employment,
         occupational safety and health, trade practices, competition and
         pricing, product warranties, zoning, building and sanitation,
         employment, retirement and labor relations and product advertising.
         Except as set forth in SCHEDULE 4.11(A), the Seller has not received
         notice of any violation or alleged violation of, and is subject to no
         Liability for past or continuing violation of, any Laws or Orders. All
         reports and returns required to be filed by the Seller with any
         Government Entity have been filed, and were accurate and complete when
         filed. Without limiting the generality of the foregoing:

                           (i)      The Seller has made all required payments
                  to its unemployment compensation reserve accounts with the
                  appropriate governmental departments of the states where it
                  is required to maintain such accounts, and each of such
                  accounts has a positive balance.

                           (ii)     The Seller has delivered to Buyer copies of
                  all reports of the Seller required under all applicable
                  health and safety laws and regulations. The deficiencies, if
                  any, noted on such reports have been corrected.

                  4.11(b)  Licenses and Permits. Except as set forth on
         SCHEDULE 4.11(B), the Seller has, or will have on the Closing Date,
         all licenses, permits, approvals, authorizations and consents of all
         Government Entities and all certification organizations required for
         the conduct of the business (as presently conducted

                                       8
<PAGE>   13

         and as proposed to be conducted by the Seller) and operation of the
         Restaurant. Except as disclosed on SCHEDULE 4.11(B), all such
         licenses, permits, approvals, authorizations and consents as described
         in SCHEDULE 4.11(B), are in full force and effect. Except as set forth
         in SCHEDULE 4.11(B), the Seller (including its operations, properties
         and assets) is and has been in compliance with all such permits and
         licenses, approvals, authorizations and consents.

         4.12.    Title to and Condition of Properties.

                  4.12(a)  Marketable Title. The Seller has, or will have on
         the Closing Date, good and marketable title to all the Purchased
         Assets, free and clear of all mortgages, liens (statutory or
         otherwise), security interests, claims, pledges, licenses, equities,
         options, conditional sales contracts, assessments, levies, easements,
         covenants, reservations, restrictions, rights-of-way, exceptions,
         limitations, charges or encumbrances of any nature whatsoever except
         those described in SCHEDULE 4.12(A) and other than liens for taxes not
         yet due and payable and the interests of the lessors under Real
         Property Lease and Personal Property Lease (collectively, "Liens").
         Except as described on SCHEDULE 4.12(A), none of the Purchased Assets
         are subject to any restrictions with respect to the transferability
         thereof. Except as described on SCHEDULE 4.12(A), the Seller has
         complete and unrestricted power and right to sell, assign, convey and
         deliver the Purchased Assets to Buyer as contemplated hereby. On the
         Closing Date, Buyer will receive good and marketable title to all the
         Purchased Assets, free and clear of all Liens of any nature whatsoever
         except those described in SCHEDULE 4.12(A).

                  4.12(b)  Condition. To the best of Seller's knowledge, all
         tangible assets (real and personal) constituting Purchased Assets
         hereunder are in good operating condition and repair, free from any
         defects (except such minor defects as do not interfere with the use
         thereof in the conduct of the normal operations of the Seller), have
         been maintained consistent with the standards generally followed in
         the industry and are sufficient to carry on the business of the Seller
         as conducted during the preceding twelve (12) months. To the best of
         Seller's knowledge, all buildings and other structures constituting
         the Restaurants' premises are in good condition and repair and have no
         structural defects or defects affecting the plumbing, electrical,
         sewerage, or heating, ventilating or air conditioning systems.

                  4.12(c)  Real Property. SCHEDULE 2.1(A) sets forth all real
         property presently used or occupied by the Seller and its Restaurant
         (the "Real Property"). There are now in full force and effect duly
         issued certificates of occupancy permitting the Real Property and
         improvements located thereon to be legally used and occupied as the
         same are now constituted. All of the Real Property has rights of
         access to dedicated public highways, as provided in and subject to the
         Real Property Lease. To the knowledge of the Seller, no fact or
         condition exists which would prohibit or adversely affect the ordinary
         rights of access to and from the Real Property from and to the
         existing highways and roads and there is no pending or threatened
         restriction or denial, governmental or otherwise, upon such ingress
         and egress. To the Seller's knowledge, no public improvements have
         been commenced and to Seller's knowledge none are planned which in
         either case may result in special assessments against or otherwise
         materially adversely affect any Real Property. To the Seller's
         knowledge, no portion of any of the Real Property has been used as a
         landfill or for storage or landfill of hazardous or toxic materials.
         The Seller does not have notice or knowledge of any (i) Order
         requiring repair, alteration, or correction of any existing condition
         affecting any Real Property or the systems or improvements thereat,
         (ii) condition or defect which could give rise to an order of the sort
         referred to in "(i)" above, or (iii) underground storage tanks, or any
         structural, mechanical, or other defects of material significance
         affecting any Real Property or the systems or improvements thereat
         (including, but not limited to, inadequacy for normal use of
         mechanical systems or disposal or water systems at or serving the Real
         Property).

         4.13.    Insurance. Set forth in SCHEDULE 4.13 is a complete and
accurate list of all policies of fire, liability, product liability, workers
compensation, health and other forms of insurance presently in effect with
respect to the business and properties of the Seller, true and correct copies
of which have heretofore been made

                                       9
<PAGE>   14

available to Buyer for its inspection. No notice of cancellation or termination
has been received with respect to any such policy, and the Seller has no
knowledge of any act or omission of the Seller that could result in
cancellation of any such policy prior to the Closing Date.

         4.14.    Contracts and Commitments.

                  4.14(a)  Real Property Lease. Except for the Real Property
         Lease, the Seller has no leases of real property. The Real Property
         Lease is in full force and effect, to the best of Seller's knowledge,
         the Seller is not in default of any term, covenant or obligation under
         any of the Real Property Lease, and no condition exists which, with
         the passage of time or giving of notice, would constitute a default
         under any term, covenant or obligation of Seller under the Real
         Property Lease.

                  4.14(b)  Personal Property Leases. Except as set forth in
         SCHEDULE 2.1(d), the Seller has no leases of personal property
         involving consideration or other expenditure in excess of one thousand
         dollars ($1,000) or involving performance over a period of more than
         twelve (12) months.

                  4.14(c)  Purchase Commitments. The Seller has no purchase
         commitments for inventory items or supplies that, together with
         amounts on hand, constitute in excess of two (2) months normal usage,
         or which are at an excessive price.

                  4.14(d)  Collective Bargaining Agreements. The Seller is not
         a party to any collective bargaining agreement with any unions,
         guilds, shop committees or other collective bargaining groups.

                  4.14(e)  Loan Agreements. Except as set forth in SCHEDULE
         4.14(e), the Seller is not obligated under any loan agreement,
         promissory note, letter of credit, or other evidence of indebtedness
         as a signatory, guarantor or otherwise.

                  4.14(f)  Guarantees. Except as disclosed on SCHEDULE 4.14(f),
         the Seller has not guaranteed the payment or performance of any
         person, firm or corporation, agreed to indemnify any person or act as
         a surety, or otherwise agreed to be contingently or secondarily liable
         for the obligations of any person.

                  4.14(g)  Burdensome or Restrictive Agreements. The Seller is
         not a party to or bound by any agreement, deed, lease or other
         instrument which is so burdensome as to materially and adversely
         affect or impair the operation of the Restaurants. Without limiting
         the generality of the foregoing, the Seller is not a party to or bound
         by any agreement requiring it to assign any interest in any trade
         secret or proprietary information, or prohibiting or restricting it
         from competing in any business or geographical area or soliciting
         customers or otherwise restricting it from carrying on its business
         anywhere in the world.

                  4.14(h)  Other Material Contracts. The Seller does not have a
         lease, license, contract or commitment of any nature involving
         consideration or other expenditure in excess of one thousand dollars
         ($1,000), or involving performance over a period of more than twelve
         (12) months, or which is otherwise individually material to the
         operations of the Restaurant, except as described in SCHEDULE 4.14(h)
         or in any other Disclosure Schedule.

                  4.14(i)  No Default. To its knowledge, the Seller is not in
         default under any lease, contract or commitment, nor has any event or
         omission occurred which through the passage of time or the giving of
         notice, or both, would constitute a default thereunder or cause the
         acceleration of any of its obligations or result in the creation of
         any Lien on any of the assets owned, used or occupied by it. To the
         knowledge of the Seller, no third party is in default under any lease,
         contract or commitment to which the Seller is a party, nor has any
         event or omission occurred which, through the passage of time or the
         giving of notice,

                                      10
<PAGE>   15

         or both, would constitute a default thereunder or give rise to an
         automatic termination, or the right of discretionary termination,
         thereof.

         4.15.    Labor Matters. The Seller has not experienced any labor
disputes, union organization attempts or any work stoppage due to labor
disagreements in connection with its business; (a) the Seller is in compliance
with all applicable laws respecting employment and employment practices, terms
and conditions of employment and wages and hours, and is not engaged in any
unfair labor practice; (b) there is no unfair labor practice charge or
complaint against the Seller pending or threatened; (c) there is no labor
strike, dispute, request for representation, slowdown or stoppage actually
pending or threatened against or affecting the Seller; (d) no question
concerning representation has been raised or is threatened respecting the
employees of the Seller; (e) no grievance which might have a material adverse
effect on the Seller, nor any arbitration proceeding arising out of or under
collective bargaining agreements, is pending and no such claim therefor exists;
and (f) there are no administrative charges or court complaints against the
Seller concerning alleged employment discrimination or other employment related
matters pending or threatened before the U.S. Equal Employment Opportunity
Commission or any Government Entity, except as disclosed on SCHEDULE 4.10.

         4.16.    Employee Benefit Plans.

         The Seller has provided and/or identified each "employee benefit
plan," as defined in Section 3(3) of ERISA which (i) is subject to any
provision of ERISA and (ii) is or was at any time during the last 5 years
maintained, administered or contributed to by the Seller or any affiliate (as
defined in Section 407(d)(7) of ERISA) and covers any employee or former
employee of the Seller or any affiliate or under which the Seller or any
affiliate has any liability. Such plans are referred to collectively herein as
the "Employee Plans." None of the Employee Plans would, individually or
collectively, constitute an "employee pension benefit plan" as defined in
Section 3(2) of ERISA, including, without limitation, a "multiemployer plan,"
as defined in Section 3(37) of ERISA, or a "defined benefit plan," as defined
in Section 3(35) and subject to Title IV of ERISA, and no Employee Plan is
maintained in connection with any trust described in Section 501(c)(9) of the
Code. It is understood and agreed that Buyer is not assuming any Employee Plans
or liabilities associated therewith, and that the Seller shall retain all such
Employee Plans, including all obligations deriving directly or indirectly from
sponsoring or participating in such Employee Plans.

         Each Employee Plan has been maintained in compliance with its terms
and the requirements prescribed by any and all statutes, orders, rules and
regulations, including but not limited to, ERISA and the Code, which are
applicable to such Plan. No assets of the Seller are or could be subject,
directly or indirectly, to any liability or lien by reason of any action or
inaction taken with respect to any Employee Plan maintained by the Seller.

         The Seller has no liability in respect of post-retirement health and
medical benefits for retired employees of the Seller or any affiliate,
determined using assumptions that are reasonable in the aggregate, over the
fair market value of any fund, reserve or other assets segregated for the
purpose of satisfying such liability (including for such purposes any fund
established pursuant to Section 401(h) of the Code). The Seller has reserved
its right to amend or terminate any Employee Plan or other benefit arrangement
providing health or medical benefits in respect of any active employee of the
Seller under the terms of any such plan and descriptions thereof given to
employees. With respect to any Employee Plans which are "group health plans"
under Section 4980B of the Code and Section 607(l) of ERISA, there has been
timely compliance in all material respects with all requirements imposed
thereunder, and under Parts 6 and 7 of Title I of ERISA generally, so that the
Seller and any affiliate have no (and will not incur any) loss, assessment, tax
penalty or other sanction with respect to any such plan.

         There has been no amendment to, written interpretation or announcement
(whether or not written) by the Seller or any affiliate relating to, or change
in employee participation or coverage under, any Employee Plan which would
increase the expense of maintaining such Employee Plan above the level of the
expense incurred in respect thereof for the fiscal year ended immediately prior
to the Closing Date.

                                      11
<PAGE>   16

         4.17     Employment Compensation. SCHEDULE 4.17 contains a true and
correct list of all employees to whom the Seller is paying compensation,
including bonuses and incentives, at an annual rate in excess of Twenty
Thousand Dollars ($20,000) for services rendered or otherwise; and in the case
of salaried employees such list identifies the current annual rate of
compensation for each employee and in the case of hourly or commission
employees identifies certain reasonable ranges of rates and the number of
employees falling within each such range.

         4.18     Intellectual Property. In order to conduct the business of
the Seller, as such is currently being conducted or proposed to be conducted,
the Seller does not require the rights to any intellectual property that it
does not already have. To its knowledge, the Seller is not infringing and has
not infringed any intellectual property of another in the operation of the
business of the Seller, nor is any other person infringing the intellectual
property of the Seller. The Seller has not granted any license or made any
assignment of its rights in any intellectual property. The Seller does not pay
any royalties or other consideration for the right to use any intellectual
property of others. There is no Litigation pending or threatened to challenge
the Seller's right, title and interest with respect to its continued use of any
intellectual property. All intellectual property of the Seller are valid,
enforceable and in good standing, and there are no equitable defenses to
enforcement based on any act or omission of the Seller.

         4.19     Major Suppliers. SCHEDULE 4.19 contains a list of the five
(5) largest suppliers (other than alcoholic beverages) to the Seller for the
most recent fiscal year (determined on the basis of the total dollar amount of
purchases) showing the total dollar amount of purchases from each such supplier
during the last twelve months. The Seller does not have any knowledge or
information of any facts indicating, nor any other reason to believe, that any
of the suppliers listed on SCHEDULE 4.19 will not continue to be suppliers to
the business of the Seller after the Closing Date and will not continue to
supply the business with substantially the same quantity and quality of goods
at competitive prices.

         4.20     Assets Necessary to Business. The Purchased Assets include
all property and assets (except for the Excluded Assets), tangible and
intangible, and all leases, licenses and other agreements, which are necessary
to permit Buyer to carry on, or currently used or held for use in, the business
of the Seller as presently conducted and as conducted immediately prior to the
Closing Date.

         4.21     No Brokers or Finders. Neither the Seller nor any of its
managers, officers, employees, members or agents have retained, employed or
used any broker or finder in connection with the transaction provided for
herein or in connection with the negotiation thereof.

         4.22     Disclosure. No representation or warranty by the Seller in
this Agreement, nor any statement, certificate, schedule, document or exhibit
hereto furnished or to be furnished by or on behalf of the Seller pursuant to
this Agreement or in connection with the transactions contemplated hereby,
contains or shall contain any untrue statement of material fact or omits or
shall omit a material fact necessary to make the statements contained therein
not misleading. All statements and information contained in any certificate or
Disclosure Schedule delivered by or on behalf of the Seller shall be deemed
representations and warranties of the Seller.

5.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER

         Buyer represents and warrants to the Seller that each of the following
is true and correct in all material respects on the date hereof, shall remain
true and correct in all material respects to and including the Closing Date,
shall be unaffected by any investigation heretofore or hereafter made by the
Seller or any knowledge of the Seller, and shall survive the closing of the
transactions provided for herein for eighteen (18) months.

                                      12
<PAGE>   17

         5.1.     Corporate.

                  5.1(a)   Organization. Buyer is a corporation duly organized,
         validly existing and in good standing under the laws of the State of
         Florida.

                  5.1(b)   Corporate Power. Buyer has all requisite corporate
         power to enter into this Agreement and the other documents and
         instruments to be executed and delivered by Buyer and to carry out the
         transactions contemplated hereby and thereby.

         5.2      Authority. The execution and delivery of this Agreement and
the other documents and instruments to be executed and delivered by Buyer
pursuant hereto and the consummation of the transactions contemplated hereby
and thereby have been duly authorized by the Board of Directors of Buyer. No
other corporate act or proceeding on the part of Buyer or its shareholders is
necessary to authorize this Agreement or the other documents and instruments to
be executed and delivered by Buyer pursuant hereto or the consummation of the
transactions contemplated hereby and thereby. This Agreement constitutes, and
when executed and delivered, the other documents and instruments to be executed
and delivered by Buyer pursuant hereto will constitute, valid and binding
agreements of Buyer, enforceable in accordance with their respective terms,
except as such may be limited by bankruptcy, insolvency, reorganization or
other laws affecting creditors' rights generally, and by general equitable
principles.

         5.3      No Brokers or Finders. Neither Buyer nor any of its
directors, officers, employees or agents have retained, employed or used any
broker or finder in connection with the transaction provided for herein or in
connection with the negotiation thereof.

         5.4      Disclosure. No representation or warranty by Buyer in this
Agreement, nor any statement, certificate, schedule, document or exhibit hereto
furnished or to be furnished by or on behalf of Buyer pursuant to this
Agreement or in connection with transactions contemplated hereby, contains or
shall contain any untrue statement of material fact or omits or shall omit a
material fact necessary to make the statements contained therein not
misleading.

         5.5.     Buyer's Cooperation. Buyer shall use its best efforts to
cooperate with the Seller in obtaining the consents referred to in SECTION 8.3
hereof.

         5.6      Other Action. The Buyer shall use its best efforts to cause
the fulfillment at the earliest practicable date of all the conditions to the
parties' obligations to consummate the transactions contemplated in this
Agreement.

6.       EMPLOYEES - EMPLOYEE BENEFITS

         6.1      Affected Employees. "Affected Employees" shall mean employees
of the Seller who are employed by Buyer immediately after the Closing Date.

         6.2      Retained Responsibilities. Subject to SECTION 1.3(B) above,
the Seller agrees to satisfy, or cause its insurance carriers to satisfy, all
claims for benefits, whether insured or otherwise (including, but not limited
to, workers' compensation, life insurance, medical and disability programs),
under Seller's employee benefit programs brought by, or in respect of, Affected
Employees and other employees and former employees of the Seller, which claims
arise out of events occurring on or prior to the Closing Date, in accordance
with the terms and conditions of such programs or applicable workers'
compensation statutes without interruption as a result of the employment by
Buyer of any such employees after the Closing Date.

         6.3      Payroll Tax. The Seller agrees to make a clean cut-off of
payroll and payroll tax reporting with respect to the Affected Employees paying
over to the federal, state and city governments those amounts

                                      13
<PAGE>   18

respectively withheld or required to be withheld for periods ending on or prior
to the Closing Date. The Seller also agrees to issue, by the date prescribed by
IRS Regulations, Forms W-2 for wages paid through the Closing Date. Except as
set forth in this Agreement, Buyer shall be responsible for all payroll and
payroll tax obligations after the Closing Date for Affected Employees.

         6.4      Termination Benefits. Subject to SECTION 1.3(B) above, and
except as provided in the following sentence, Buyer shall be solely responsible
for, and shall pay or cause to be paid, severance payments and other
termination benefits, if any, to Affected Employees who may become entitled to
such benefits by reason of any events occurring after the Closing Date. Subject
to SECTION 1.3(B) above, if any action on the part of the Seller prior to the
Closing Date, or if the sale to Buyer of the business and assets of the Seller
pursuant to this Agreement or the transactions contemplated hereby, or if the
failure by Buyer to hire as a permanent employee of Buyer any employee of
Seller, shall directly or indirectly result in any Liability (i) for severance
payments or termination benefits or (ii) by virtue of any state, federal or
local law, such Liability shall be the sole responsibility of the Seller, and
the Seller shall indemnify and hold harmless Buyer against such Liability.

7.       OTHER MATTERS

         7.1      Pre-Closing Revenue and Expenses. The Seller shall be
responsible for all expenses, debts and other Liabilities of the Seller and the
Restaurants arising out of or relating to periods prior to and including the
Closing Date.

         7.2      Post-Closing Revenue and Expenses. The Buyer shall be
responsible for all expenses, debts and other Liabilities of the Restaurants
arising out of or relating to periods subsequent to the Closing Date.

         7.3      Confidentiality.

                  7.3(a)   Definition. For the purpose of this Agreement,
         "Proprietary Information" shall include all information, whether
         owned, licensed or otherwise used by or in the possession of the
         Seller, which reasonably would be considered proprietary or
         confidential to the business of the Seller including but not limited
         to suppliers, customers, trade or industrial practices, marketing and
         technical plans, technology, personnel, organization or internal
         affairs, plans for products and ideas, recipes, menus, wine lists and
         proprietary techniques and other trade secrets. Notwithstanding the
         foregoing, "Proprietary Information" shall not include information
         which has entered the public domain.

                  7.3(b)   No Disclosure, Use, or Circumvention. Except in
         connection with Seller's or its Affiliates development of an
         authorized Roy's Restaurant, the Seller and its Affiliates shall not
         disclose any Proprietary Information to any third parties and will not
         use any Proprietary Information in the Seller's business or any
         affiliated business without the prior written consent of the Buyer and
         then only to the extent specified in that consent. Consent may be
         granted or withheld at the sole discretion of the Buyer. The Seller
         shall not contact any suppliers, customers, employees, affiliates or
         associates to circumvent the purposes of this provision.

                  7.3(c)   Maintenance of Confidentiality. The Seller shall
         take all steps reasonably necessary or appropriate to maintain the
         strict confidentiality of the Proprietary Information and to assure
         compliance with this Agreement.

         7.4      Non-Solicitation. For a period two (2) years following the
Closing Date, the Seller and its Affiliates shall not offer employment to any
employee of the Buyer or its Affiliates or otherwise solicit or induce any
employee of the Buyer or its Affiliates to terminate his or her employment, nor
shall the Seller act as partner, consultant, agent, owner or part owner, or in
any other capacity for any person or entity which solicits or otherwise induces
any employee of the Buyer or its Affiliates to terminate his or her employment
with the Buyer.

                                      14
<PAGE>   19

         7.5      Reasonableness of Restrictions; Reformation; Enforcement. The
parties hereto recognize and acknowledge that the limitations contained in
SECTIONS 7.3 AND 7.4 hereof are reasonable and properly required for the
adequate protection of the Buyer's interests. It is agreed by the parties
hereto that if any portion of the restrictions contained in SECTIONS 7.3 OR 7.4
are held to be unreasonable, arbitrary, or against public policy, then the
restrictions shall be considered divisible, both as to the time and as to the
geographical area, with each month of the specified period being deemed a
separate period of time, so that the lesser period of time shall remain
effective so long as the same is not unreasonable, arbitrary, or against public
policy. The parties hereto agree that in the event any court of competent
jurisdiction determines the specified period or the specified geographical area
of the restricted territory to be unreasonable, arbitrary, or against public
policy, a lesser time period or geographical area which is determined to be
reasonable, nonarbitrary, and not against public policy may be enforced. If any
of the covenants contained herein are violated and if any court action is
instituted by the Buyer to prevent or enjoin such violation, the period of time
during which the business activities shall be restricted, as provided in this
Agreement, shall be lengthened by a period of time equal to the period between
the date of the breach of the terms or covenants contained in this Agreement
and the date on which the decree of the court disposing of the issues upon the
merits shall become final and not subject to further appeal.

        In the event it is necessary for the Buyer to initiate legal
proceedings to enforce, interpret or construe any of the covenants contained in
SECTIONS 7.3 AND 7.4 hereof, the prevailing party in such proceedings shall be
entitled to receive from the non-prevailing party, in addition to all other
remedies, all costs, including reasonable attorneys' fees, of such proceedings
including appellate proceedings.

         7.6      Specific Performance. The parties agree that a breach of any
of the covenants contained in SECTION 7.3 AND 7.4 hereof will cause irreparable
injury to the Buyer for which the remedy at law will be inadequate and would be
difficult to ascertain and therefore, in the event of the breach or threatened
breach of any such covenants, the Buyer shall be entitled, in addition to any
other rights and remedies it may have at law or in equity, to obtain an
injunction to restrain any threatened or actual activities in violation of any
such covenants. The parties hereby consent and agree that temporary and
permanent injunctive relief may be granted in any proceedings which might be
brought to enforce any such covenants without the necessity of proof of actual
damages, and in the event the Buyer does apply for such an injunction, that the
Buyer has an adequate remedy at law shall not be raised as a defense.

8.       FURTHER COVENANTS OF THE SELLER

         The Seller covenants and agrees as follows:

         8.1      Access to Information and Records. During the period
commencing thirty (30) days prior to the Closing Date, the Seller shall give
Buyer, its counsel, accountants and other representatives (i) access during
normal business hours to all of the properties, books, records, contracts and
documents of the Seller for the purpose of such inspection, investigation and
testing as Buyer deems appropriate (and the Seller shall furnish or cause to be
furnished to Buyer and its representatives all information with respect to the
business and affairs of the Seller as Buyer may request); (ii) access to
employees, agents and representatives for the purposes of such meetings and
communications as Buyer reasonably desires; and (iii) access to vendors,
customers, manufacturers of its machinery and equipment, and others having
business dealings with the Seller. Through the Closing Date, the Buyer and its
Affiliates shall not disclose any Proprietary Information obtained pursuant to
this paragraph to any third parties and until the Closing Date will not use any
such Proprietary Information in the Buyer's business or any affiliated business
without the prior written consent of the Seller and then only to the extent
specified in that consent. Consent may be granted or withheld at the sole
discretion of the Seller. The Buyer shall not contact any suppliers, customers,
employees, affiliates or associates to circumvent the purposes of this
provision. The Buyer shall take all steps reasonably necessary or appropriate
to maintain the strict confidentiality of the Proprietary Information through
the Closing Date.

                                      15
<PAGE>   20

         8.2      Conduct of Business Pending the Closing. From the date hereof
until the Closing Date, except as otherwise approved in writing by the Buyer,
which approval shall not be unreasonably withheld:

                  8.2(a)   No Changes. The Seller will, in all material
         respects, carry on its business diligently and in the same manner as
         heretofore and will not make or institute any material changes in its
         methods of purchase, sale, management, accounting or operation.

                  8.2(b)   Maintain Organization. The Seller will take such
         action as may be necessary to maintain, preserve, renew and keep in
         favor the material rights and franchises of the Seller and will use
         its commercially reasonable best efforts, to the extent material
         hereto, to preserve the business organization of the Seller intact, to
         keep available to Buyer the present officers and employees, and to
         preserve for Buyer its present relationships with suppliers and
         customers and others having business relationships with the Seller.

                  8.2(c)   No Breach. The Seller will not do or omit any act,
         or permit any omission to act, which may cause a breach of any
         material contract, commitment or obligation, or any breach of any
         representation, warranty, covenant or agreement made by the Seller
         herein, or which would have required disclosure on SCHEDULE 4.8 had it
         occurred after the date of the Recent Balance Sheet and prior to the
         date of this Agreement.

                  8.2(d)   No Material Contracts. Other than reasonable and
         necessary contracts entered into in connection with opening the third
         Restaurant as contemplated by this Agreement, no contract or
         commitment will be entered into, by or on behalf of the Seller, except
         contracts, commitments, purchases or sales which are in the ordinary
         course of business and consistent with past practice, are not material
         to the Seller (individually or in the aggregate) and would not have
         been required to be disclosed in the Disclosure Schedule had they been
         in existence on the date of this Agreement.

                  8.2(e)   No Corporate Changes. The Seller shall not
         materially amend its Agreement of Limited Partnership or make any
         changes in ownership percentages.

                  8.2(f)   Maintenance of Insurance. The Seller shall maintain
         all of the insurance in effect as of the date hereof.

                  8.2(g)   Maintenance of Property. The Seller shall use,
         operate, maintain and repair all of their property in a normal
         business manner.

                  8.2(h)   Interim Financials. The Seller will provide Buyer
         with interim monthly financial statements and other management reports
         as and when they are available.

                  8.2(i)   No Negotiations. The Seller will not directly or
         indirectly (through a representative or otherwise) solicit or furnish
         any information to any prospective buyer, commence, or conduct
         presently ongoing, negotiations with any other party or enter into any
         agreement with any other party concerning the sale of the Seller, any
         Restaurants, the Seller's assets or business or any part thereof or
         any membership interest in the Seller (an "acquisition proposal"), and
         the Seller shall immediately advise Buyer of the receipt of any
         acquisition proposal.

         8.3      Consents. The Seller will use its commercially reasonable
best efforts prior to the Closing Date to obtain all consents necessary for the
consummation of the transactions contemplated hereby.

         8.4      Other Action. The Seller shall use its best efforts to cause
the fulfillment at the earliest practicable date of all of the conditions to
the parties' obligations to consummate the transactions contemplated in this
Agreement.

                                      16
<PAGE>   21

         8.5      Disclosure. Through the Closing Date, the Seller shall have a
continuing obligation to promptly notify Buyer in writing with respect to any
matter hereafter arising or discovered which, if existing or known at the date
of this Agreement, would have been required to be set forth or described in the
Disclosure Schedule, but no such disclosure shall cure any breach of any
representation or warranty which is inaccurate.

9.       CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS

         Each and every obligation of Buyer to be performed on the Closing Date
shall be subject to the satisfaction prior to or on the Closing Date of each of
the following conditions:

         9.1      Representations and Warranties True on the Closing Date. Each
of the representations and warranties made by the Seller in this Agreement, and
the statements contained in the Disclosure Schedule or in any instrument, list,
certificate or writing delivered by the Seller pursuant to this Agreement,
shall be true and correct in all material respects when made and shall be true
and correct in all material respects at and as of the Closing Date as though
such representations and warranties were made or given on and as of the Closing
Date, except for any changes permitted by the terms of this Agreement or
consented to in writing by Buyer.

         9.2      Compliance With Agreement. The Seller shall have in all
material respects performed and complied with all of its agreements and
obligations under this Agreement which are to be performed or complied with by
it prior to or on the Closing Date, including the delivery of the closing
documents specified in SECTION 12.3.

         9.3      Absence of Litigation. No material Litigation shall have been
commenced or threatened, and no material investigation by any Government Entity
shall have been commenced, against Buyer, the Seller or any of the Affiliates,
officers, directors or managers of any of them, with respect to the
transactions contemplated hereby.

         9.4      Consents and Approvals. Except as otherwise specifically
provided in this Agreement, all approvals, consents and waivers that are
required to effect the transactions contemplated hereby shall have been
received, and copies thereof shall have been delivered to Buyer on or prior to
the Closing Date.

         9.5      Termination of Employment Agreement. Seller shall have
delivered to Buyer a termination of Gary Buell's employment agreement,
consented to by Gary Buell, and confirming that Buyer and the Purchased Assets
shall not be under any obligation to Gary Buell as of the Closing.

10.      CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS

         Each and every obligation of the Seller to be performed on the Closing

Date shall be subject to the satisfaction prior to or on the Closing Date of
the following conditions:

         10.1     Representations and Warranties True on the Closing Date. Each
of the representations and warranties made by Buyer in this Agreement shall be
true and correct in all material respects when made and shall be true and
correct in all material respects at and as of the Closing Date as though such
representations and warranties were made or given on and as of the Closing
Date.

         10.2     Compliance With Agreement. Buyer shall have in all material
respects performed and complied with all of Buyer's agreements and obligations
under this Agreement which are to be performed or complied with by Buyer prior
to or on the Closing Date, including the delivery of the closing documents
specified in SECTION 12.4.

                                      17
<PAGE>   22

         10.3     Absence of Litigation. No material Litigation shall have been
commenced or threatened, and no material investigation by any Government Entity
shall have been commenced, against Buyer, or the Seller or any of the
affiliates, officers, managers, directors or shareholders of either of them,
with respect to the transactions contemplated hereby.

11.      INDEMNIFICATION

         11.1     By the Seller. Subject to the terms and conditions of this
ARTICLE 11, the Seller hereby agrees to indemnify, defend and hold harmless
Buyer, and its directors, officers, employees and Affiliates (hereinafter
"Buyer's Indemnitees"), from and against all Claims asserted against, resulting
to, imposed upon, or incurred by Buyer's Indemnitees or the business and assets
transferred to Buyer pursuant to this Agreement, directly or indirectly, by
reason of, arising out of or resulting from (a) the inaccuracy or breach of any
representation or warranty of the Seller contained in or made pursuant to this
Agreement (regardless of whether such breach is deemed "material"); (b) the
breach of any covenant of the Seller contained in this Agreement (regardless of
whether such breach is deemed "material"); or (c) any Claim against the Seller,
the Purchased Assets or the business of the Seller not specifically assumed by
Buyer pursuant hereto or which arises out of or relates to any event first
occurring on or prior to the Closing Date. As used in this ARTICLE 11, the term
"Claim" shall include (i) all Liabilities; (ii) all losses, damages (including,
without limitation, consequential damages), judgments, awards, settlements
approved by the Seller (such approval shall not be unreasonably withheld or
delayed), costs and expenses (including, without limitation, interest
(including prejudgment interest in any litigated matter), penalties, court
costs and reasonable attorneys' fees and expenses); and (iii) all demands,
claims, suits, actions, costs of investigation, causes of action, proceedings
and assessments, whether or not ultimately determined to be valid.

         11.2     By Buyer. Subject to the terms and conditions of this ARTICLE
11, Buyer hereby agrees to indemnify, defend and hold harmless the Seller, its
controlling persons, its Affiliates, its partners and their officers,
directors, shareholders, agents, employees and controlling persons, from and
against all Claims asserted against, resulting to, imposed upon or incurred by
any such person, directly or indirectly, by reason of or resulting from (a) the
inaccuracy or breach of any representation or warranty of Buyer contained in or
made pursuant to this Agreement (regardless of whether such breach is deemed
"material"); (b) the breach of any covenant of Buyer contained in this
Agreement (regardless of whether such breach is deemed "material"); or (c) all
Claims of or against the Seller specifically assumed by Buyer pursuant hereto
or which relate to the Purchased Assets and arise out of any event occurring
after the Closing Date.

         11.3     Indemnification of Third-Party Claims. The obligations and
liabilities of any party to indemnify any other under this ARTICLE 11 with
respect to Claims relating to third parties shall be subject to the following
terms and conditions:

                  11.3(a)  Notice and Defense. The party or parties to be
         indemnified (whether one or more, the "Indemnified Party") will give
         the party from whom indemnification is sought (the "Indemnifying
         Party") written notice of any such Claim, and the Indemnifying Party
         will undertake the defense thereof by representatives chosen by it.
         Failure to give such notice shall not affect the Indemnifying Party's
         duty or obligations under this ARTICLE 11, except to the extent the
         Indemnifying Party is prejudiced thereby. So long as the Indemnifying
         Party is defending any such Claim actively and in good faith, the
         Indemnified Party shall not settle such Claim. The Indemnified Party
         shall make available to the Indemnifying Party or its representatives
         all records and other materials required by them and in the possession
         or under the control of the Indemnified Party, for the use of the
         Indemnifying Party and its representatives in defending any such
         Claim, and shall in other respects give reasonable cooperation in such
         defense.

                  11.3(b)  Failure to Defend. If the Indemnifying Party, within
         a reasonable time after notice of any such Claim, fails to defend such
         Claim actively and in good faith, the Indemnified Party will (upon
         further notice) have the right to undertake the defense, compromise or
         settlement of such Claim or consent to the entry of a judgment with
         respect to such Claim, on behalf of and for the account and risk of
         the

                                      18
<PAGE>   23

         Indemnifying Party, and the Indemnifying Party shall thereafter have
         no right to challenge the Indemnified Party's defense, compromise,
         settlement or consent to judgment.

                  11.3(c)  Indemnified Party's Rights. Anything in this ARTICLE
         11 to the contrary notwithstanding, (i) if there is a reasonable
         probability that a Claim may materially and adversely affect the
         Indemnified Party other than as a result of money damages or other
         money payments, the Indemnified Party shall have the right to defend,
         compromise or settle such Claim, and (ii) the Indemnifying Party shall
         not, without the written consent of the Indemnified Party, settle or
         compromise any Claim or consent to the entry of any judgment which
         does not include as an unconditional term thereof the giving by the
         claimant or the plaintiff to the Indemnified Party of a release from
         all Liability in respect of such Claim.

         11.4     Payment. The Indemnifying Party shall promptly pay the
Indemnified Party any amount due under this ARTICLE 11, which payment may be
accomplished in whole or in part, at the option of the Indemnified Party, by
the Indemnified Party setting off any amount owed to the Indemnifying Party by
the Indemnified Party. To the extent set-off is made by an Indemnified Party in
satisfaction or partial satisfaction of an indemnity obligation under this
ARTICLE 11 that is disputed by the Indemnifying Party, upon a subsequent
determination by final judgment not subject to appeal that all or a portion of
such indemnity obligation was not owed to the Indemnified Party, the
Indemnified Party shall pay the Indemnifying Party the amount which was set off
and not owed together with interest from the date of set-off until the date of
such payment at an annual rate equal to the average annual rate in effect as of
the date of the set-off, on those three maturities of United States Treasury
obligations having a remaining life, as of such date, closest to the period
from the date of the set-off to the date of such judgment. Upon judgment,
determination, settlement or compromise of any third party Claim, the
Indemnifying Party shall pay promptly on behalf of the Indemnified Party,
and/or to the Indemnified Party in reimbursement of any amount theretofore
required to be paid by it, the amount so determined by judgment, determination,
settlement or compromise and all other Claims of the Indemnified Party with
respect thereto, unless in the case of a judgment an appeal is made from the
judgment. If the Indemnifying Party desires to appeal from an adverse judgment,
then the Indemnifying Party shall post and pay the cost of the security or bond
to stay execution of the judgment pending appeal. Upon the payment in full by
the Indemnifying Party of such amounts, the Indemnifying Party shall succeed to
the rights of such Indemnified Party, to the extent not waived in settlement,
against the third party who made such third party Claim.

         11.5     No Waiver. The closing of the transactions contemplated by
this Agreement shall not constitute a waiver by any party of its rights to
indemnification hereunder, regardless of whether the party seeking
indemnification has knowledge of the breach, violation or failure of condition
constituting the basis of the Claim at or before the closing, and regardless of
whether such breach, violation or failure is deemed to be "material".

         11.6.    Survival of Indemnification. The indemnification obligations
of the parties contained in this ARTICLE 11 shall survive the date of this
Agreement and the Closing Date for a period of eighteen (18) months following
the Closing Date, except that the indemnification obligations relating to the
representations and warranties regarding tax obligations shall survive until
one (1) year after the expiration of the applicable statute of limitations for
such tax obligations.

12.      CLOSING

         12.1     Closing Date. The closing referred to in this Agreement shall
take place on June 1, 2000 or such other date as is mutually agreed to by the
parties (the "Closing Date").

         12.2     Place of Closing. The closing shall take place at Buyer's
corporate office or at such other place as the parties hereto shall agree upon.

                                      19
<PAGE>   24

         12.3     Documents to be Delivered by the Seller. On the Closing Date,
the Seller shall deliver to Buyer the following documents, in each case duly
executed or otherwise in proper form:

                  12.3(a)  Bills of Sale. Bills of sale and such other
         instruments of assignment, transfer, conveyance and endorsement as
         will be sufficient in the opinion of Buyer and its counsel to
         transfer, assign, convey and deliver to Buyer the Purchased Assets as
         contemplated hereby.

                  12.3(b)  Compliance Certificate. A certificate signed by the
         manager of the Seller that each of the representations and warranties
         made by the Seller in this Agreement is true and correct in all
         material respects on and as of the Closing Date with the same effect
         as though such representations and warranties had been made or given
         on and as of the Closing Date (except for any changes permitted by the
         terms of this Agreement or consented to in writing by Buyer), and that
         the Seller has performed and complied with all of the Seller's
         obligations under this Agreement which are to be performed or complied
         with on or prior to the Closing Date.

                  12.3(c)  Certified Resolutions. A certified copy of the
         resolutions of the general partner of the Seller authorizing and
         approving this Agreement and the consummation of the transactions
         contemplated by this Agreement.

                  12.3(d)  Incumbency Certificate. Incumbency certificates
         relating to each person executing any document executed and delivered
         to Buyer pursuant to the terms hereof.

                  12.3(e)  Other Documents. All other documents, instruments or
         writings required to be delivered to Buyer on or prior to the Closing
         Date pursuant to this Agreement and such other certificates of
         authority and documents as Buyer may reasonably request.

         12.4     Documents to be Delivered by Buyer. At the Closing, Buyer
shall deliver to the Seller the following documents, in each case duly executed
or otherwise in proper form:

                  12.4(a)  Purchase Price. A certified or bank cashier's check
         (or wire transfer) as required by ARTICLE 1.

                  12.4(b)  Assumption of Liabilities. Such undertakings and
         instruments of assumption as will be reasonably sufficient in the
         opinion of the Seller and its counsel to evidence the assumption of
         Assumed Liabilities as provided for in SECTION 3.2.

                  12.4(c)  Compliance Certificate. A certificate signed by the
         chief executive officer of Buyer that the representations and
         warranties made by Buyer in this Agreement are true and correct on and
         as of the Closing Date with the same effect as though such
         representations and warranties had been made or given on and as of the
         Closing Date (except for any changes permitted by the terms of this
         Agreement or consented to in writing by the Seller), and that Buyer
         has performed and complied with all of Buyer's obligations under this
         Agreement which are to be performed or complied with on or prior to
         the Closing Date.

                  12.4(d)  Certified Resolutions. A certified copy of the
         resolutions of the Board of Directors of Buyer authorizing and
         approving this Agreement and the consummation of the transactions
         contemplated by this Agreement.

                  12.4(e)  Incumbency Certificate. Incumbency certificates
         relating to each person executing any document executed and delivered
         to the Seller by Buyer pursuant to the terms hereof.

                                      20
<PAGE>   25

                  12.4(f)  Other Documents. All other documents, instruments or
         writings required to be delivered to the Seller on or prior to the
         Closing Date pursuant to this Agreement and such other certificates of
         authority and documents as the Seller may reasonably request.

13.      TERMINATION

         13.1     Right of Termination Without Breach.

                  13.1(a)  Mutual Agreement. This Agreement may be terminated
         without further liability of either party at any time prior to the
         closing by mutual written agreement of Buyer and the Seller.

                  13.1(b)  By Either Party. This Agreement may be terminated
         without further liability of any party, by either Buyer or the Seller
         if the Closing Date of the transaction contemplated in SECTION 1.1
         shall not have occurred on or before June 15, 2000, provided the
         terminating party has not, through breach of a representation,
         warranty or covenant, prevented such closing from occurring on or
         before such date.

         13.2     Termination for Breach.

                  13.2(a)  Termination by Buyer. This Agreement may be
         terminated by Buyer if (i) there has been a material violation or
         breach by the Seller of any of the agreements, representations or
         warranties contained in this Agreement which has not been waived in
         writing by Buyer, or (ii) there has been a failure of satisfaction of
         a condition to the obligations of Buyer which has not been so waived,
         or (iii) the Seller shall have attempted to terminate this Agreement
         under this ARTICLE 13 or otherwise without grounds to do so, then
         Buyer may, by written notice to the Seller at any time prior to the
         closing that such violation, breach, failure or wrongful termination
         attempt is continuing, terminate this Agreement with the effect set
         forth in SECTION 13.2(c) hereof.

                  13.2(b)  Termination by the Seller. The Seller may terminate
         this Agreement if (i) there has been a material violation or breach by
         Buyer of any of the agreements, representations or warranties
         contained in this Agreement which has not been waived in writing by
         the Seller, or (ii) there has been a failure of satisfaction of a
         condition to the obligations of the Seller which has not been so
         waived, or (iii) Buyer shall have attempted to terminate this
         Agreement under this ARTICLE 13 or otherwise without grounds to do so,
         then the Seller may, by written notice to Buyer at any time prior to
         the closing that such violation, breach, failure or wrongful
         termination attempt is continuing, terminate this Agreement with the
         effect set forth in SECTION 13.2.(C) hereof.

                  13.2(c)  Effect of Termination. Termination of this Agreement
         pursuant to this SECTION 13.2 shall not in any way terminate, limit or
         restrict the rights and remedies of any party hereto against any other
         party which has violated, breached or failed to satisfy any of the
         representations, warranties, covenants, agreements, conditions or
         other provisions of this Agreement prior to termination hereof.
         Subject to the foregoing, the parties' obligations under ARTICLE 11,
         SECTIONS 7.3 - 7.6 and SECTION 14.5 of this Agreement shall survive
         termination.

14.      MISCELLANEOUS

         14.1     Disclosure Schedules. The Disclosure Schedules shall not
vary, change or alter the language of the representations and warranties
contained in this Agreement.

         14.2     Further Assurance. From time to time, upon request and
without further consideration, the parties will execute and deliver such
documents and take such other action as may be reasonably requested in

                                      21
<PAGE>   26

order to consummate more effectively the transactions contemplated hereby,
including, but not limited to, vesting in Buyer good, valid and marketable
title to the business and assets being transferred hereunder.

         14.3     Disclosures and Announcements. Both the timing and the
content of all disclosure to third parties and public announcements concerning
the transactions provided for in this Agreement by the Seller or Buyer shall be
subject to the approval of the other in all essential respects, except that
Seller approval shall not be required as to any statements and other
information which Buyer may submit to the Securities and Exchange Commission,
NASDAQ or the stockholders of Buyer or Buyer's Affiliates, or be required to
make pursuant to any rule or regulation of the Securities and Exchange
Commission or NASDAQ, or otherwise required by law.

         14.4     Assignment; Parties in Interest.

                  14.4(a)  Assignment. Except as expressly provided herein, the
         rights and obligations of a party hereunder may not be assigned,
         transferred or encumbered without the prior written consent of the
         other parties. Notwithstanding the foregoing, Buyer may, without
         consent of any other party, cause one or more subsidiaries or
         Affiliates of Buyer to carry out all or part of the transactions
         contemplated hereby; provided, however, that Buyer shall,
         nevertheless, remain liable for all of its obligations, and those of
         any such subsidiary, to the Seller hereunder.

                  14.4(b)  Parties in Interest. This Agreement shall be binding
                           upon, inure to the benefit of, and be enforceable by
         the respective successors and permitted assigns of the parties hereto.
         Nothing contained herein shall be deemed to confer upon any other
         person any right or remedy under or by reason of this Agreement.

         14.5     Law Governing Agreement. This Agreement may not be modified
or terminated orally, and shall be construed and interpreted according to the
internal laws of the State of Delaware, excluding any choice of law rules that
may direct the application of the laws of another jurisdiction.

         14.6     Amendment and Modification. Buyer and the Seller may amend,
modify and supplement this Agreement in such manner as may be agreed upon by
them in writing.

         14.7     Notice. All notices, requests, demands and other
communications hereunder shall be given in writing and shall be: (a) personally
delivered; or (b) sent to the parties at their respective addresses indicated
herein by registered or certified U.S. mail, return receipt requested and
postage prepaid, or by private overnight mail courier service. The respective
addresses to be used for all such notices, demands or requests are as follows:

                  (a)      If to Buyer, to:

                           OS Pacific, Inc.
                           2202 North Westshore Boulevard
                           Tampa, Florida  33607
                           Attention:  Mike O'Donnell, CEO
                           Facsimile:  813-281-2114

                           (with a copy to)

                           Joseph J. Kadow, Vice President and General Counsel
                           Outback Steakhouse, Inc.
                           2202 North Westshore Boulevard
                           Tampa, Florida  33607
                           Facsimile:  813-281-2114

                                      22
<PAGE>   27

or to such other person or address as Buyer shall furnish to the Seller in
writing.

                  (b)      If to the Seller, to:

                           Restaurant Concepts of Bonita Springs, L.P.
                           9220 Bonita Beach Road, Suite 220
                           Bonita Springs, Florida  34135
                           Attention:  Ronald A. Patak
                           Facsimile:  941-949-0068

                           (with a copy to)

                           Pamela J. Faber, Esquire
                           Kaufman & Canoles, P.C.
                           2101 Parks Avenue, Suite 700
                           Virginia Beach, Virginia  23451
                           Facsimile:  757-491-4020

or to such other person or address as the Seller shall furnish to Buyer in
writing.

         If personally delivered, such communication shall be deemed delivered
upon actual receipt; if sent by overnight courier pursuant to this paragraph,
such communication shall be deemed delivered upon receipt; and if sent by U.S.
mail pursuant to this paragraph, such communication shall be deemed delivered
as of the date of delivery indicated on the receipt issued by the relevant
postal service, or, if the addressee fails or refuses to accept delivery, as of
the date of such failure or refusal. Any party to this Agreement may change its
address for the purposes of this Agreement by giving notice thereof in
accordance with this Section. Notices sent by facsimile or other electronic
means shall not constitute notice under this Agreement.

         14.8     Expenses. Regardless of whether or not the transactions
contemplated hereby are consummated:

                  14.8(a)  Brokerage. The Seller and Buyer each represent and
         warrant to each other that there is no broker involved or in any way
         connected with the transfer provided for herein. Buyer agrees to hold
         the Seller harmless from and against all claims for brokerage
         commissions or finder's fees incurred through any act of Buyer in
         connection with the execution of this Agreement or the transactions
         provided for herein. The Seller agrees to hold Buyer harmless from and
         against all claims for brokerage commissions or finder's fees incurred
         through any act of the Seller in connection with the execution of this
         Agreement or the transactions provided for herein.

                  14.8(b)  Expenses to be Shared Equally by the Parties. The
         parties shall equally share the cost of the following:

                           (i)      Taxes Arising from Transaction. Any taxes
                  applicable to, imposed upon or arising out of the sale or
                  transfer of the Purchased Assets to Buyer and the other
                  transactions contemplated by this Agreement, including but
                  not limited to any transfer, use, gross receipts or
                  documentary stamp taxes. Buyer shall pay all retail sales
                  taxes arising from the transactions contemplated in this
                  Agreement.

                           (ii)     Other Expenses. All other costs and
                  expenses of third parties engaged jointly by the parties
                  hereto in connection with the consummation of the
                  transactions contemplated hereby, normally shared by the
                  parties in similar transactions.

                                      23
<PAGE>   28

                  14.8(c)  Other. Except as otherwise provided herein, each of
         the parties shall bear its own expenses and the expenses of its
         counsel, accountants, and other agents in connection with the
         transactions contemplated hereby.

                  14.8(d)  Costs of Litigation. The parties agree that the
         prevailing party in any action brought with respect to or to enforce
         any right or remedy under this Agreement shall be entitled to recover
         from the other party or parties all reasonable costs and expenses of
         any nature whatsoever incurred by the prevailing party in connection
         with such action, including without limitation reasonable attorneys'
         fees and prejudgment interest.

         14.9     Entire Agreement. This instrument and the agreements referred
to herein embody the entire agreement between the parties hereto with respect
to the transactions contemplated herein, and there have been and are no
agreements, representations or warranties between the parties other than those
set forth or provided for herein.

         14.10    Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         14.11    Headings. The headings in this Agreement are inserted for
convenience only and shall not constitute a part hereof.

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

                                     "BUYER"

                                     OS PACIFIC, INC., a Florida corporation

                                     By:
                                         ------------------------------------
                                         Robert D. Basham, President

                                     "SELLER"

                                     RESTAURANT CONCEPTS OF BONITA SPRINGS,
                                     LIMITED PARTNERSHIP,
                                     a Florida limited partnership

                                     By: R&B of Bonita Springs, Inc.,
                                         a Florida corporation, General Partner

                                     By:
                                         ------------------------------------
                                         Ronald A. Patak, President

                                      24<PAGE>   1
                                                                   EXHIBIT 4.42

                              OPERATING AGREEMENT
                                      FOR
                         CHEESEBURGER IN PARADISE, LLC
                      A DELAWARE LIMITED LIABILITY COMPANY

<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<S>                 <C>                                                                                  <C>
ARTICLE I           DEFINITIONS..........................................................................1
         (a)        "Act"................................................................................1
         (b)        "Affiliate"..........................................................................1
         (c)        "Agreement"..........................................................................1
         (d)        "Annual Business Plan"...............................................................1
         (e)        "Appraisal Period"...................................................................1
         (f)        "Assignee"...........................................................................1
         (g)        "Bankruptcy".........................................................................2
         (h)        "CHC"................................................................................2
         (i)        "Capital Account"....................................................................2
         (j)        "Capital Contribution"...............................................................2
         (k)        "Certificate"........................................................................2
         (l)        "Code"...............................................................................2
         (m)        "Committee Member"...................................................................2
         (n)        "Company.............................................................................2
         (o)        "Company Minimum Gain"...............................................................2
         (p)        "Depreciation".......................................................................2
         (q)        "Distributable Cash".................................................................2
         (r)        "Economic Interest"..................................................................3
         (s)        "Fiscal Year"........................................................................3
         (t)        "Gross Asset Value"..................................................................3
         (u)        "MHI"................................................................................3
         (v)        "MHI Principals".....................................................................3
         (w)        "Majority Interest"..................................................................3
         (x)        "Management Committee"...............................................................3
         (y)        "Member".............................................................................3
         (z)        "Member Nonrecourse Debt"............................................................4
         (aa)       "Member Nonrecourse Deductions"......................................................4
         (bb)       "Member Parent"......................................................................4
         (cc)       "Membership Interest"................................................................4
         (dd)       "Net Profits" and "Net Losses".......................................................4
         (ee)       "Nonrecourse Liability"..............................................................4
         (ff)       "Outback"............................................................................4
         (gg)       "Percentage Interest"................................................................4
         (hh)       "Person".............................................................................5
         (ii)       "Proprietary Marks"..................................................................5
         (jj)       "Regulations"........................................................................5
         (kk)       "Restaurant(s)"......................................................................5
         (ll)       "Subsidiary Entity"..................................................................5
         (mm)       "Sublicense Agreement"...............................................................5
         (nn)       "System".............................................................................5
         (oo)       "Tax Matters Partner"................................................................5

ARTICLE II          ORGANIZATIONAL MATTERS...............................................................5
         2.1        Formation............................................................................5
</TABLE>

<PAGE>   3

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<S>                 <C>                                                                                 <C>
         2.2        Name.................................................................................5
         2.3        Term.................................................................................6
         2.4        Office and Agent.....................................................................6
         2.5        Addresses of the Members and the Management Committee................................6
         2.6        Purpose and Business of the Company..................................................6

ARTICLE III         CAPITAL CONTRIBUTIONS................................................................6
         3.1        Nature and Amount of Contributions...................................................6
         3.2        Time for Making Contributions........................................................6
         3.3        Interest on Capital Contributions....................................................6
         3.4        No Additional Capital Contributions..................................................7
         3.5        Real Estate..........................................................................7
         3.6        Capital Accounts.....................................................................7

ARTICLE IV          MEMBERS..............................................................................8
         4.1        Limited Liability....................................................................8
         4.2        Admission of Additional Members......................................................8
         4.3        Subsidiary Entities..................................................................8
         4.4        No Withdrawals or Resignations.......................................................8
         4.5        Termination of Membership Interest...................................................8
         4.6        Transactions With The Company........................................................8
         4.7        Voting Rights........................................................................8
         4.8        MeetingS of Members..................................................................8

ARTICLE V           MANAGEMENT AND CONTROL OF THE COMPANY................................................9
         5.1        Management of the Company by Management Committee....................................9
         5.2        Appointment of Management Committee..................................................9
                    A.     Number, Appointment and Qualifications........................................9
         5.3        Powers of Management Committee......................................................10
                    A.     Powers of Management Committee...............................................10
                    B.     Annual Business Plan.........................................................11
                    C.     Maximization of Value........................................................11
                    D.     Limitations on Power of Management Committee.................................11
         5.4        Liability of Management Committee Members...........................................12
         5.5        Devotion of Time....................................................................12
         5.6        Transactions Between the Company and Committee Member...............................12
         5.7        Officers............................................................................12
         5.8        President...........................................................................12
         5.9        CHC Consulting Services.............................................................13

ARTICLE VI          ALLOCATIONS OF NET PROFITS AND NET LOSSES AND
                    DISTRIBUTIONS.......................................................................13
         6.1        Allocations of Net Profit and Net Loss..............................................13
                    A.     Net Loss.....................................................................13
</TABLE>

<PAGE>   4

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<S>                 <C>                                                                                 <C>
                    B.     Net Profit...................................................................13
         6.2        Special Allocations.................................................................13
                    A.     Minimum Gain Chargeback......................................................14
                    B.     Chargeback of Minimum Gain Attributable to Member Nonrecourse Debt...........14
                    C.     Nonrecourse Deductions.......................................................14
                    D.     Member Nonrecourse Deductions................................................14
                    E.     Qualified Income Offset......................................................14
         6.3        Code Section 704(c) Allocations.....................................................14
         6.4        Allocation of Net Profits and Losses and Distributions in Respect of a
                           Transferred Interest.........................................................14
         6.5        Distributions of Distributable Cash by the Company..................................15
         6.6        Fees to Members.....................................................................15
         6.7        Form of Distribution................................................................16
         6.8        Restriction on Distribution.........................................................16
         6.9        Return of Distributions.............................................................16
         6.10       Obligations of Members to Report Allocations........................................16

ARTICLE VII         TRANSFER AND ASSIGNMENT OF INTERESTS................................................16
         7.1        Transfer and Assignment of Interests................................................16
         7.2        Further Restrictions on MHI's Principals............................................17
         7.3        Further Restrictions on Transfer of Interests.......................................17
         7.4        Permitted Transfers.................................................................18
         7.5        Effective Date of Permitted Transfers...............................................18
         7.6        Substitution of Members.............................................................18
         7.7        Rights of Legal Representatives.....................................................18
         7.8        No Effect to Transfers in Violation of Agreement....................................18
         7.9        Right of First Refusal..............................................................18
         7.10       Transfer Permitted After Failure to Elect...........................................19

ARTICLE VIII        CESSATION OF DEVELOPMENT............................................................20
         8.1        Cessation of Development............................................................20
         8.2        Consequences of Cessation...........................................................20
         8.3        Purchase Option on Acquisition of Control...........................................21

ARTICLE IX          ACCOUNTING, RECORDS, REPORTING BY MEMBERS...........................................21
         9.1        Books and Records...................................................................21
         9.2        Delivery to Members and Inspection..................................................22
         9.3        Annual Statements...................................................................22
         9.4        Financial and Other Information.....................................................23
         9.5        Filings.............................................................................23
         9.6        Bank Accounts.......................................................................23
         9.7        Accounting Decisions and Reliance on Others.........................................23
         9.8        Tax Matters for the Company Handled by Management Committee
                    and Tax Matters Partner.............................................................23
</TABLE>

<PAGE>   5

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<S>                 <C>                                                                                 <C>
ARTICLE X           DISSOLUTION AND WINDING UP..........................................................23
         10.1       Dissolution.........................................................................23
         10.2       Purchase Option on Agreement for Dissolution........................................24
         10.3       Purchase Option on Proposed Sale....................................................24
         10.4       Winding Up..........................................................................24
         10.5       Distributions in Kind...............................................................25
         10.6       Order of Payment Upon Dissolution...................................................25
         10.7       Limitations on Payments Made in Dissolution.........................................25

ARTICLE XI          INDEMNIFICATION AND INSURANCE.......................................................26
         11.1       Indemnification of Agents...........................................................26
         11.2       Insurance...........................................................................26

ARTICLE XII         CONFIDENTIALITY AND NON-COMPETITION.................................................26
         12.1       Noncompetition......................................................................26
         12.2       Confidentiality.....................................................................27
                    A.  Definition......................................................................27
                    B.  No Disclosure, Use or Circumvention.............................................27
                    C.  Maintenance of Confidentiality..................................................27
         12.3       Non-solicitation....................................................................27
         12.4       Reasonableness of Restrictions; Reformation; Enforcement............................28
         12.5       Specific Performance................................................................28

ARTICLE XIII        REPRESENTATIONS AND WARRANTIES......................................................28
         13.1       Status..............................................................................29
         13.2       Due Authorization...................................................................29
         13.3       Other Agreements and Violations of Law..............................................29
         13.4       No Litigation.......................................................................29

ARTICLE XIV  MISCELLANEOUS..............................................................................29
         14.1       Complete Agreement..................................................................29
         14.2       Consultation with Attorney..........................................................29
         14.3       Tax Consequences....................................................................29
         14.4       No Assurance of Tax Benefits........................................................30
         14.5       Binding Effect......................................................................30
         14.6       Parties in Interest.................................................................30
         14.7       Pronouns; Statutory References......................................................30
         14.8       Headings............................................................................30
         14.9       Interpretation......................................................................30
         14.10      References to this Agreement........................................................30
         14.11      Jurisdiction........................................................................30
         14.12      Exhibits............................................................................30
         14.13      Additional Documents and Acts.......................................................30
         14.14      Notices.............................................................................31
</TABLE>

<PAGE>   6

                               TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
         <S>        <C>                                                                                 <C>
         14.15      Amendments..........................................................................31
         14.16      Reliance on Authority of Person Signing Agreement...................................31
         14.17      Company Property....................................................................31
         14.18      Multiple Counterparts...............................................................31
         14.19      Attorney Fees.......................................................................31
         14.20      Time is of the Essence..............................................................32
         14.21      Remedies Cumulative.................................................................32
         14.22      Severability........................................................................32
         14.23      Partition...........................................................................32
         14.24      No Waiver...........................................................................32
         14.25      No Denigration......................................................................32
         14.26      Contingency.........................................................................32
</TABLE>

<PAGE>   7

                              OPERATING AGREEMENT
                                      FOR
                          CHEESEBURGER IN PARADISE, LLC
                      A DELAWARE LIMITED LIABILITY COMPANY

         This Operating Agreement is made as of October 12, 2000, by and among
the parties listed on the signature pages hereof, with reference to the
following facts:

         A.       On July 24, 2000, a Certificate of Formation for CHEESEBURGER
IN PARADISE, LLC, (the "Company"), a limited liability company organized under
the laws of the State of Delaware, was filed with the Delaware Secretary of
State.

         B.       The parties desire to adopt and approve a limited liability
company operating agreement for the Company.

         NOW, THEREFORE, the parties by this Agreement set forth the operating
agreement for the Company under the laws of the State of Delaware upon the
terms and subject to the conditions of this Agreement.

ARTICLE I.        DEFINITIONS

         When used in this Agreement, the following terms shall have the
meanings set forth below (all terms used in this Agreement that are not defined
in this ARTICLE I shall have the meanings set forth elsewhere in this
Agreement):

                  (A)      "Act" shall mean the Delaware Limited Liability
         Company Act, as the same may be amended from time to time.

                  (B)      "Affiliate" of a Person shall mean any Person,
         directly or indirectly, through one or more intermediaries,
         controlling, controlled by, or under common control with such Person,
         as applicable. The term "control," as used in the immediately
         preceding sentence, shall mean with respect to a corporation or
         limited liability company the right to exercise, directly or
         indirectly, more than fifty percent (50%) of the voting rights
         attributable to the controlled corporation or limited liability
         company, and, with respect to any individual, partnership, trust,
         other entity or association, the possession, directly or indirectly,
         of the power to direct or cause the direction of the management or
         policies of the controlled entity.

                  (C)      "Agreement" shall mean this Operating Agreement, as
         originally executed and as amended from time to time.

                  (D)      "Annual Business Plan" shall mean the detailed
         business plan for the Company prepared by the President of the Company
         and approved by the Management Committee, no less often than annually,
         which plan shall contain an operating budget, a capital budget, cash
         flow projections, sources of cash analysis (including analysis of any
         intended borrowings or financings), an operating plan (including plans
         related to the strategic business plan), and detailed quantifiable
         goals for the plan year.

                  (E)      "Appraisal Period" shall have the meaning specified
         in Section 8.2A(i)(a) hereof.

                  (F)      "Assignee" shall mean the owner of an Economic
         Interest who has not been admitted as a substitute Member in
         accordance with ARTICLE VII.

<PAGE>   8

                  (G)      "Bankruptcy" shall mean: (a) the filing of an
         application, or consent to, the appointment of a trustee, receiver, or
         custodian of other assets; (b) the filing of a voluntary petition in
         bankruptcy; (c) the entry of an order for relief in proceedings under
         the United States Bankruptcy Code, as amended or superseded from time
         to time; (d) the making of a general assignment for the benefit of
         creditors; (e) the entry of an order, judgment, or decree by any court
         of competent jurisdiction appointing a trustee, receiver, or custodian
         of assets unless the proceedings and the person appointed are
         dismissed within ninety (90) days; or (f) the failure to pay debts as
         the debts become due within the meaning of Section 303(h)(1) of the
         United States Bankruptcy Code, as determined by the Bankruptcy Court,
         or the admission in writing of inability to pay its debts as they
         become due.

                  (H)      "CHC" shall mean CHEESEBURGER HOLDING COMPANY, LLC,
         a Delaware limited liability company whose sole member is MHI.

                  (I)      "Capital Account" shall mean with respect to any
         Member the capital account that the Company establishes and maintains
         for such Member pursuant to SECTION 3.6.

                  (J)      "Capital Contribution" shall mean the total amount
         of cash and fair market value of property contributed to the capital
         of the Company by the Members.

                  (K)      "Certificate" shall mean the Certificate of
         Formation for the Company originally filed with the Delaware Secretary
         of State and as amended from time to time.

                  (L)      "Code" shall mean the Internal Revenue Code of 1986,
         as amended from time to time, the provisions of succeeding law, and to
         the extent applicable, the Regulations.

                  (M)      "Committee Member" shall mean the individuals named
         to serve on the Management Committee.

                  (N)      "Company" shall mean CHEESEBURGER IN PARADISE, LLC,
         a Delaware limited liability company.

                  (O)      "Company Minimum Gain" shall have the meaning
         ascribed to the term "Partnership Minimum Gain" in the Regulations
         Section 1.704-2(b)(2) and the amount of Company Minimum Gain shall be
         determined as provided in Regulations Section 1.704-2(d).

                  (P)      "Depreciation" shall mean, with respect to any
         Company asset for any Fiscal Year, the depreciation or amortization
         allowed or allowable for federal income tax purposes in respect of
         such asset for such Fiscal Year, except that if the Gross Asset Value
         of an asset differs from its adjusted tax basis for federal income tax
         purposes at the beginning of such Fiscal Year, Depreciation shall be
         an amount that bears the same ratio to such beginning book value as
         the federal income tax depreciation or amortization for such Fiscal
         Year bears to such beginning adjusted tax basis and if such adjusted
         tax basis is zero, the Depreciation shall be based on the method of
         depreciation or amortization utilized in preparing the financial
         statements of the Company.

                  (Q)      "Distributable Cash" shall mean the amount of cash
         the Company receives from operations, including but not limited to,
         from Subsidiary Entities, reduced by scheduled repayments of Equipment
         Loans and Company Loans, expenses incurred by the Company pursuant to
         the Sublicense Agreement (other than with respect to a breach of the
         Sublicense Agreement by the Company), and any other payment
         specifically provided for herein to be paid by Company.

                                       2
<PAGE>   9

                  (R)      "Economic Interest" shall mean the right to receive
         distributions of the Company's assets and allocations of income, gain,
         loss, deduction, credit and similar items from the Company pursuant to
         this Agreement and the Act, but shall not include any other rights of
         a Member, including, without limitation, the right to vote or
         participate in the management of the Company.

                  (S)      "Fiscal Year" shall mean the Company's fiscal year,
         which shall be the calendar year.

                  (T)      "Gross Asset Value" shall mean, with respect to any
         asset of the Company, such asset's adjusted basis for federal income
         tax purposes, except as follows: (1) the initial Gross Asset Value of
         any asset contributed by a Member to the Company shall be the gross
         fair market value of such asset at the time of its contribution as
         determined pursuant to SECTION 3.4A: (2) the Gross Asset Values of all
         Company assets shall be adjusted to equal their respective gross fair
         market values, as reasonably determined by the Management Committee,
         immediately prior to the following events - a Capital Contribution
         (other than a de minimis Capital Contribution) to the Company by a new
         or existing Member as consideration for a Membership Interest, the
         distribution by the Company to a Member of more than a de minimus
         amount of Company assets as consideration for the redemption of a
         Membership Interest, the liquidation of the Company within the meaning
         of Regulations Section 1.704-1(b)(2)(ii)(g), and any other event as to
         which the Management Committee reasonably determines that an
         adjustment is necessary or appropriate to reflect the relative
         economic interests of the Members. The Gross Asset Values of Company
         assets distributed to any Member shall be the gross fair market values
         of such assets as reasonably determined by the Management Committee as
         of the date of distribution. The Gross Asset Values of Company assets
         shall be increased (or decreased) to reflect any adjustments to the
         adjusted basis of such assets pursuant to Code Sections 734(b) or
         743(b), but only to the extent that such adjustments are taken into
         account in determining Capital Accounts pursuant to Regulations
         Section 1.704-1(b)(2)(iv)(m); provided, however, that Gross Asset
         Values shall not be adjusted pursuant to this sentence to the extent
         that the Management Committee reasonably determines that an adjustment
         pursuant to clause (2) above is necessary or appropriate in connection
         with a transaction that would otherwise result in an adjustment
         pursuant to this sentence. At all times, Gross Asset Values shall be
         adjusted by any Depreciation taken into account with respect to the
         Company's assets for purposes of computing Net Profit and Net Loss.
         Any adjustment to the Gross Asset Values of Company assets shall
         require an adjustment to the Members' Capital Accounts.

                  (U)      "MHI" shall mean Margaritaville Holdings, LLC, a
         Florida limited liability company and the sole member of CHC.

                  (V)      "MHI Principals" shall mean Jimmy Buffett and John
         Cohlan.

                  (W)      "Majority Interest" shall mean those Members who
         hold at least fifty one percent (51%) of the Percentage Interests
         entitled to vote.

                  (X)      "Management Committee" shall mean collectively,
         those individuals named as Committee Members of the Company pursuant
         to ARTICLE V of this Agreement.

                  (Y)      "Member" shall mean each Person who (a) is an
         initial signatory to this Agreement, has been admitted to the Company
         as a Member in accordance with the Certificate and this Agreement or
         is an Assignee who has become a Member in accordance with ARTICLE VII,
         and (b) has not ceased to be a Member in accordance with ARTICLE VII,
         or for any other reason.

                                       3
<PAGE>   10

                  (Z)      "Member Nonrecourse Debt" shall have the meaning
         ascribed to the term "Partner Nonrecourse Debt" in Regulations Section
         1.704-2(b)(4).

                  (AA)     "Member Nonrecourse Deductions" shall mean Company
         loss, deductions, or Code Section 705(a)(2)(B) expenditures that are
         attributable to Member Nonrecourse Debt and shall be determined as
         provided in Regulations Section 1.704(2)(i).

                  (BB)     "Member Parent" shall mean MHI with respect to CHC
         and OSI with respect to Outback.

                  (CC)     "Membership Interest" shall mean a Member's entire
         interest in the Company including the Member's Economic Interest, the
         right to vote on or participate in the management, and the right to
         receive information concerning the business and affairs, of the
         Company.

                  (DD)     "Net Profit" or "Net Loss" shall mean, for each
         Fiscal Year, an amount equal to the Company's net income or loss for
         such year as determined for federal income tax purposes determined in
         accordance with Code Section 703(a) (for this purpose, all items
         required to be separately stated pursuant to Code Section (703(a)
         shall be included in taxable income or loss), with the following
         adjustments: (1) by including as an item of gross income any
         tax-exempt income received by the Company; (2) by treating as a
         deductible expense any expenditure of the Company described in Code
         Section 705(a)(2)(B) (including amounts paid or incurred to organize
         the Company (unless an election is made pursuant to Code Section
         709(b) or to promote the sale of interests in the Company and by
         treating deductions for any losses incurred in connection with the
         sale or exchange of Company assets disallowed pursuant to Code Section
         267(a)(1) or 707(b) as expenditures described in Code Section
         705(a)(2)(B)); (3) in lieu of depreciation or amortization there shall
         be taken into account Depreciation; (4) gain or loss resulting from
         any disposition of Company assets with respect to which gain or loss
         is recognized for federal income tax purposes shall be computed by
         reference to the Gross Asset Value of such asset rather than its
         adjusted tax basis; (5) in the event of an adjustment of the Gross
         Asset Value of any Company asset which requires that the Capital
         Accounts of the Company be adjusted pursuant to Regulations Sections
         1.704-1(b)(2)(iv)(e),(f) and (m), the amount of such adjustments is to
         be taken into account as additional Net Profit or Net Loss pursuant to
         Section 6.1; and (6) excluding any items specially allocated pursuant
         to Section 6.2.

                  (EE)     "Nonrecourse Liability" shall have the meaning set
         forth in Regulations Section 1.752-1(a)(2).

                  (FF)     "Outback" shall mean OS Tropical, Inc., a Florida
         corporation, and a wholly-owned subsidiary of Outback Steakhouse, Inc.
         ("OSI").

                  (GG) "Percentage Interest" shall mean the percentage
         ownership interest of a Member in the Company, as such percentage may
         be adjusted from time to time pursuant to the terms of this Agreement.
         The Members' Percentage Interests shall not be adjusted to reflect
         additional Capital Contributions unless otherwise agreed in writing by
         all Members. The initial Percentage Interests of the Member shall be:

                                       4
<PAGE>   11

<TABLE>
<CAPTION>
                     <S>                      <C>
                                              Percentage
                     Member                    Interest
                     ------                    --------

                     Outback                      60%
                     CHC                          40%
</TABLE>

                  (HH)     "Person" shall mean an individual, partnership,
limited partnership, limited liability company, corporation, trust, estate,
association or any other entity.

                  (II)     "Proprietary Marks" shall mean Newly Developed Marks
(as defined in the Sublicense Agreement)and the marks listed on Exhibit B to
the Sublicense Agreement, and any other marks for which approval is given
under the Sublicense Agreement.

                  (JJ)     "Regulations" shall, unless the context clearly
indicates otherwise, mean the regulations in force as final or temporary that
have been issued by the U.S. Department of Treasury pursuant to its authority
under the Code, and any successor regulations.

                  (KK)     "Restaurant(s)" shall mean the Cheeseburger in
Paradise restaurants developed, owned, franchised and/or operated by the
Company.

                  (LL)     "Subsidiary Entity" shall mean any corporation,
partnership, limited liability company or other entity formed to operate
Restaurants and of which the Company, directly or indirectly, owns an equity
interest.

                  (MM)     "Sublicense Agreement" shall mean that certain
Sublicense Agreement of even date herewith by and among CHC, as Sublicensor,
the Company, as Sublicensee, and MHI and Jimmy Buffett.

                  (NN)     "System" shall mean the Cheeseburger in Paradise
restaurant concept and operating system to be developed by the Company and all
elements thereof including, without limitation, recipes, operating technologies
and Proprietary Marks.

                  (OO)     "Tax Matters Partner" (as defined in Code Section
6231) shall be Outback or its successor as designated pursuant to SECTION 9.8.

ARTICLE II.       ORGANIZATIONAL MATTERS

         2.1      Formation. The Members have formed a Delaware limited
liability company under the laws of the State of Delaware by filing the
Certificate with the Delaware Secretary of State and entering into this
Agreement, which Agreement shall be deemed effective as of the date the
Certificate was so filed. The rights and liabilities of the Members shall be
determined pursuant to the Act and this Agreement. To the extent that the
rights or obligations of any Member are different by reason of any provision of
this Agreement than they would be in the absence of such provision, this
Agreement shall, to the extent permitted by the Act, control.

         2.2      Name. The name of the Company shall be "CHEESEBURGER IN
PARADISE, LLC". The business of the Company may be conducted under that name
or, upon compliance with applicable laws, any other name that the Management
Committee deems appropriate or advisable. The Management Committee shall file
any fictitious name

                                       5
<PAGE>   12

certificates and similar filings, and any amendments thereto, that the
Management Committee considers appropriate or advisable.

         2.3      Term. The term of this Agreement commenced on the filing of
the Certificate and shall continue until terminated as hereinafter provided.

         2.4      Office and Agent. The Company shall continuously maintain a
registered office and agent in the State of Delaware. The registered office and
agent shall be as stated in the Certificate or as otherwise determined by the
Management Committee. The principal office of the Company shall be 2202 North
Westshore Boulevard, 5th Floor, Tampa, Florida 33607, or as the Management
Committee may determine. The Company may also have such offices, anywhere
within and without the State of Delaware, as the Management Committee may
determine from time to time, or the business of the Company may require.

         2.5      Addresses of the Members and the Management Committee. The
respective addresses of the Members and the Committee Members are set forth on
EXHIBIT A. A Member or Committee Member may change its address upon notice
thereof to the Management Committee.

         2.6      Purpose and Business of the Company. The purpose of the
Company is to engage in any lawful activity for which a limited liability
company may be organized under the Act. Notwithstanding the foregoing, without
the consent of Outback and CHC, the Company shall not engage in any business
other than the following:

                  A.       The establishment, ownership, operation and
franchising of Cheeseburger in Paradise Restaurants utilizing the System
anywhere in the World except Hawaii, Mexico and Japan.

                  B.       Such other activities related or ancillary to and in
furtherance of the foregoing business as may be necessary, advisable, or
appropriate as determined by the Management Committee.

                  C.       This Agreement shall not be deemed or construed to
create a relationship between the Members with respect to any activities
whatsoever except for those activities required for the accomplishment of the
Company's purpose as specified in this SECTION 2.6.

ARTICLE III.      CAPITAL CONTRIBUTIONS

         3.1      Nature and Amount of Contributions. The amount and nature of
the contributions of the Members are as follows:

<TABLE>
<CAPTION>
                   <S>               <C>
                   Outback           $600.00 cash

                   CHC               $400.00 cash
</TABLE>

         3.2      Time for Making Contributions. The contribution of CHC shall
be made upon execution of this Agreement. The contribution of money by Outback
shall be made at such time(s) as the President of the Company shall request,
consistent with the Annual Business Plan, or as otherwise expressly provided by
this Agreement.

         3.3      Interest on Capital Contributions. No Member shall receive,
or be entitled to receive, interest on its contributions to the capital of the
Company. Except as otherwise provided herein, no Member shall have the right to
demand or to receive the return of all or any part of its Capital Account or of
its contributions to the capital of the Company.

                                       6
<PAGE>   13

         3.4      No Additional Capital Contributions.

                  A.       In no event shall any Member be obligated to make
any additional capital contributions, except as otherwise expressly provided
herein. No Member may make capital contributions to the Company of any property
other than cash unless all Members have agreed in writing to the Gross Asset
Value to be attributed to such property.

                  B.       Outback shall provide all amounts necessary, after
taking into account all other funds and financing available to the Company, for
the establishment of new restaurants approved by the Management Committee.
Funding for new restaurants shall be provided by Outback as follows:

                           (i)      Outback shall provide, either itself or
through a third-party lender, an equipment loan in the amount of Three Hundred
Thousand Dollars ($300,000) for each restaurant ("Equipment Loan"), such
Equipment Loan to bear interest at the then current market rate for such
financing and to be repaid in sixty (60) equal monthly installments of
principal and interest. The Equipment Loan shall be secured by a first priority
security interest in the equipment of the Restaurant for which the Equipment
Loan is provided. Repayments of the Equipment Loan shall not be considered
distributions of Distributable Cash.

                           (ii)     Fifty percent (50%) of the remaining amount
necessary to open a new restaurant (after taking into account the Equipment
Loan) shall be provided by Outback as a capital contribution.

                           (iii)    Fifty percent (50%) of the remaining amount
necessary to open a new restaurant (after taking into account the Equipment
Loan) shall be provided by Outback as a loan to the Company ("Company Loan"),
such Company Loan to bear interest at a variable rate equal to the "Prime Rate"
as reported in the Wall Street Journal from time to time, plus one percent
(1%), such interest rate to be adjusted monthly. The Company Loan shall be
repaid in one hundred twenty (120) equal monthly installments of principal,
plus interest. Repayments of the Company Loan shall not be considered
distributions of Distributable Cash.

         3.5      Real Estate. The Company and its Subsidiary Entities shall
not acquire fee ownership of any land or buildings, including buildings
constructed on land held as lessee under a ground lease. The Members agree that
an Affiliate of Outback shall acquire fee ownership of any land acquisition
approved by the Management Committee and shall own all buildings constructed on
land owned in fee or held under a ground lease. The land and buildings shall be
leased by Outback's Affiliate to the Company or its Subsidiary Entities at
arm's length, fair market rental rates based on a creditworthy tenant with a
credit rating similar to Outback.

                  Whenever this Agreement grants CHC the right to purchase
Outback's Member Interest, such purchase right shall include the right to
purchase all, but not less than all, real estate owned by Outback or an Outback
Affiliate and used as the location of a Restaurant. Said real estate shall be
purchased for its fair market value, with fair market value being determined in
the same manner and using the same procedure as used for the determination of
the fair market value of Outback's Member Interest. Said right to purchase real
estate shall be subject to the same terms, provisions and conditions as CHC's
corresponding right to purchase Outback's Member Interest.

         3.6      Capital Accounts. The Company shall establish and maintain an
individual Capital Account for each Member in accordance with Regulations
Section 1.704-1(b)(2)(iv). If a Member transfers all or a part of its
Membership Interest in accordance with this Agreement, such Member's Capital
Account attributable to the transferred Membership Interest shall carry over to
the new owner of such Membership Interest pursuant to Regulations Section
1.704-1(b)(2)(iv)(1).

                                       7
<PAGE>   14

ARTICLE IV.       MEMBERS

         4.1      Limited Liability. Except as expressly set forth in this
Agreement or required by law, no Member shall be personally liable for any
debt, obligation, or liability of the Company, whether that liability or
obligation arises in contract, tort, or otherwise.

         4.2      Admission of Additional Members. The Management Committee,
with the approval of a Majority Interest, may admit to the Company additional
Members. Any additional Members shall obtain Membership Interests and will
participate in the management, Net Profits, Net Losses, and distributions of
the Company on such terms as are determined by the Management Committee and
approved by a Majority Interest; provided, however, no Member's Percentage
Interest shall be diluted without the written consent of such Member.
Notwithstanding the foregoing, Assignees may only be admitted as substitute
Members in accordance with ARTICLE VII.

         4.3      Subsidiary Entities. The Members agree that the Company will
develop, own and operate Restaurants through subsidiary entities ("Subsidiary
Entity"). The Company shall be the managing general partner or managing member
of each subsidiary. Ownership interests in Subsidiary Entities shall be
provided to each Restaurant's regional operations director and general manager
on such terms as the Management Committee shall establish from time to time.
Such ownership interests shall dilute the Company's ownership interest in the
Subsidiary Entity. The ownership interests of non-members, including but not
limited to, the regional operations director and general manager in each
Restaurant shall not exceed sixteen percent (16%) without the consent of all
Members. The provisions of the organizing and governing documents of each
Subsidiary Entity relating to the Company's right to receive distributions
shall be approved by Outback and CHC.

         4.4      No Withdrawals or Resignations. No Member may withdraw or
resign from the Company. If a Member wrongfully withdraws or resigns as a
Member, that Member shall have no right to receive any distribution or any
payment for the fair value of its Membership Interest other than such
distributions or payments as are made to all Members pursuant to this
Agreement.

         4.5      Termination of Membership Interest. Upon the transfer of a
Member's Membership Interest in violation of ARTICLE VII, the Membership
Interest of such Member shall be terminated and thereafter that Member shall be
an Assignee only unless such Membership Interest shall be purchased by the
Company and/or remaining Members pursuant to the terms of SECTION 7.8. Each
Member acknowledges and agrees that such termination or purchase of a
Membership Interest upon the occurrence of any of the foregoing events is not
unreasonable under the circumstances existing as of the date hereof.

         4.6      Transactions With The Company. Subject to any limitations set
forth in this Agreement, including Section 5.6, and with the prior approval of
the Management Committee, a Member may lend money to and transact other
business with the Company. A Member also may enter into franchise agreements
(and any modifications or renewals thereof) with the Company. Subject to other
applicable law, any Member entering into such transaction(s) with the Company
has the same rights and obligations with respect thereto as a Person who is not
a Member. All such transactions shall comply with the standards contained in
Section 5.6.

         4.7      Voting Rights. Except as expressly provided in this Agreement
or the Certificate, Members shall have no voting, approval or consent rights.
Except where this Agreement specifically requires a greater percentage
affirmative vote, in all matters in which a vote, approval or consent of the
Members is required, a vote, consent or approval of a Majority Interest (or, in
instances in which there are defaulting Members, non-defaulting Members who
hold a majority of the Percentage Interests held by all non-defaulting Members)
shall be sufficient to authorize or approve such act. All votes, approvals or
consents of the Members may be given or withheld, conditioned or delayed as the
Members may determine in their sole and absolute discretion.

         4.8      Meetings of Members. Meetings of Members may be held at such
date, time and place as the Member calling the meeting may reasonably fix from
time to time. No annual or regular meetings of Members are required.

                                       8
<PAGE>   15

Meetings of the Members may be called by any Member holding more than ten
percent (10%) of the Percentage Interests for the purpose of addressing any
matters on which the Members may vote. Written notice of a meeting of Members
shall be sent or otherwise given to each Member not less than seven (7) nor
more than sixty (60) days before the date of the meeting. The notice shall
specify the place, date and hour of the meeting and the general nature of the
business to be transacted.

                  The actions taken at any meeting of Members, however called
and noticed, and wherever held, have the same validity as if taken at a meeting
duly held after regular call and notice, if a quorum is present either in
person or by proxy, and if, either before or after the meeting, each of the
Members entitled to vote, who was not present in person or by proxy, signs a
written waiver of notice or consents to the holding of the meeting or approves
the minutes of the meeting. All such waivers, consents or approvals shall be
filed with the Company records or made a part of the minutes of the meeting.

                  Any action that may be taken at a meeting of Members may be
taken without a meeting, if a consent in writing setting forth the action so
taken, is signed and delivered to the Company within sixty (60) days of the
record date for that action by Members having not less than the minimum number
of votes that would be necessary to authorize or take that action at a meeting
at which all Members entitled to vote on that action at a meeting were present
and voted. All such consents shall be filed with the Management Committee or
the secretary, if any, of the Company and shall be maintained in the Company
records. Any Member giving a written consent, or the Member's proxy holders,
may revoke the consent by a writing received by the Management Committee or
secretary, if any, of the Company before written consents of the number of
votes required to authorize the proposed action have been filed.

                  Unless the consents of all Members entitled to vote have been
solicited in writing, (i) notice of any Member approval of an amendment to the
Certificate or this Agreement, a dissolution of the Company, or a merger of the
Company, without a meeting by less than unanimous written consent, shall be
given at least ten (10) days before the consummation of the action authorized
by such approval, and (ii) prompt notice shall be given of the taking of any
other action approved by Members without a meeting by less than unanimous
written consent, to those Members entitled to vote who have not consented in
writing.

ARTICLE V.        MANAGEMENT AND CONTROL OF THE COMPANY

         5.1      Management of the Company by Management Committee. The
business, property and affairs of the Company shall be managed exclusively by a
Management Committee consisting of five (5) individuals appointed by the
Members in accordance with SECTION 5.2A. Individuals named to the Management
Committee shall sometimes be referred to herein individually as a "Committee
Member" or collectively as "Committee Members". Except for situations in which
the approval of the Members is required by this Agreement, the Management
Committee shall have full, complete and exclusive authority, power, and
discretion to manage and control the business, property and affairs of the
Company, to make all decisions regarding those matters and to perform any and
all other acts or activities customary or incident to the management of the
Company's business, property and affairs.

         5.2      Appointment of Management Committee

                  A.       Number, Appointment and Qualifications. The Company
shall initially have five (5) Committee Members. For so long as the following
are Members, Outback shall name three (3) Committee Members and MHI shall name
two (2) Committee Members. If any of the foregoing cease to be a Member, the
right the Member has to appoint Committee Members shall be transferred to the
successor of such Member if such successor is admitted as a substitute Member.

                                       9
<PAGE>   16

                           (i)      Term of Service. Each Committee Member will
serve until his or her death or withdrawal from the Management Committee, or
until his or her removal from the Management Committee by the Member who
appointed him or her.

                           (ii)     Management Committee:

<TABLE>
<CAPTION>
                    "CHC Appointees"                            "Outback Appointees"
                    ----------------                            --------------------
                    <S>                                         <C>
                    Jimmy Buffett                               Chris Sullivan
                    John Cohlan                                 Bob Basham
                                                                Mike O'Donnell
</TABLE>

                           (iii)    Resignation. A Committee Member may resign
at any time by giving written notice to the Members. The resignation of a
Committee Member shall take effect upon receipt of that notice or at such later
time as shall be specified in the notice. Unless otherwise specified in the
notice, the acceptance of the resignation shall not be necessary to make it
effective.

                           (iv)     Removal. Outback Appointees to the
Management Committee may be removed only by Outback, with or without cause.
MHI's Appointees to the Management Committee may be removed only by MHI, with
or without cause.

                           (v)      Vacancies. Vacancies on the Management
Committee shall be filled by the Member who originally appointed the vacating
Committee Member.

         5.3      Powers of Management Committee.

                  A.       Powers of Management Committee. Without limiting the
generality of SECTION 5.1, but subject to SECTION 5.3D and to the limitations
set forth elsewhere in this Agreement, the Management Committee shall have all
necessary powers to manage and carry out the purposes, business, property, and
affairs of the Company, including, without limitation, the power to exercise on
behalf and in the name of the Company all of the powers of a natural person,
including, without limitation, the power to:

                           (i)      Authorize the execution and delivery of
agreements; subject to the limitations contained in this Agreement;

                           (ii)     Acquire, purchase, lease, renovate,
improve, alter, rebuild, demolish, replace, and own real property and any other
property or assets that the Management Committee determines is necessary or
appropriate or in the interest of the business of the Company, and to acquire
options for the purchase of any such property;

                           (iii)    Sell, exchange, lease, or otherwise dispose
of the real property and other property and assets owned by the Company, or any
part thereof, or any interest therein; provided, however, the license to use
Proprietary Marks shall not be transferred without the consent of MHI.

                           (iv)     Sue on, defend, or compromise any and all
claims or liabilities in favor of or against the Company; submit any or all
such claims or liabilities to arbitration; and confess a judgment against the
Company in connection with any litigation in which the Company is involved
(other than relating to the Management Committee); and

                                      10
<PAGE>   17

                           (v)      Retain legal counsel, auditors, and other
professionals in connection with the Company business and to pay therefor such
remuneration as the Management Committee may determine.

                  B.       Annual Business Plan. At least sixty (60) days prior
to the commencement of each Fiscal Year, the President shall submit to the
Management Committee for its approval, the Annual Business Plan for the
Company. The President and Management Committee shall at all times use their
best efforts to operate the Company in conformity with the Annual Business
Plan.

                  C.       Maximization of Value. The Management Committee
shall from time to time evaluate in good faith and present to the Members all
options available to the Company to maximize the value of each Member's
Percentage Interest in the Company, such as, but not limited to, an initial
public offering, strategic sale, or merger into OSI.

                  D.       Limitations on Power of Management Committee.

                           (i)      Limitations on Acts of Management
Committee. Except as otherwise required in this Agreement, the Management
Committee shall act by majority vote. The Management Committee shall not have
authority hereunder to cause the Company to engage in the following without
first obtaining the written consent of a Majority Interest (or such greater
Percentage Interest as is set forth below) of the Members:

                                    (a)      Notwithstanding the above, the
sale, exchange or other disposition of all, or substantially all, of the
Company's assets occurring as part of a single transaction or plan, or in a
series of related transactions, and which includes a transfer of the Company's
rights under the Sublicense Agreement, shall require the written consent of
Outback and CHC whether or not in connection with a dissolution; provided,
however, if Outback consents to such a sale, exchange or disposition and CHC
does not, then the sale, exchange or disposition shall not occur, but the fees
provided for in SECTION 6.6 B hereof shall terminate thirty (30) days after
Outback's approval of the sale, exchange or disposition;

                                    (b)      The borrowing of money from any
party in excess of $25,000, the issuance of evidences of indebtedness in
connection therewith, the refinancing, increase in the amount of, modification,
amendment, or changing of the terms, or extension of the time for the payment
of any indebtedness or obligation of the Company, and securing such
indebtedness by mortgage, deed of trust, pledge, security interest, or other
lien on Company assets;

                                    (c)      Notwithstanding the above, the
merger, reverse merger, consolidation, reorganization or any similar
transaction of the Company with a corporation, another limited liability
company or limited partnership or any other entity shall require the written
consent of Outback and MHI;

                                    (d)      Notwithstanding the above, any
amendment to the governing or organizing document of any Subsidiary Entity if
such amendment would modify the Company's ownership interest in the Subsidiary
Entity other than as permitted in SECTION 4.3 or the Company's rights to
distributions from the Subsidiary Entity shall require the written consent of
Outback and CHC;

                           (ii)     Limitation on Execution of Documents. No
Committee Member may execute any document on behalf of the Company or cause the
Company to enter into any agreement or commitment without the prior

                                      11
<PAGE>   18

authorization of the Management Committee as provided in this SECTION 5.3.
Chris Sullivan and Bob Basham shall be the initial Committee Members authorized
to execute documents on behalf of the Company.

         5.4      Liability of Management Committee Members. The Committee
Members shall not be liable to the Company or to any Member for any loss or
damage sustained by the Company or any Member, unless the loss or damage shall
have been the result of fraud, deceit, gross negligence, reckless or
intentional misconduct, breach of fiduciary duty, a knowing violation of law by
a Committee Member or a breach of the Committee Member's obligations under this
Agreement, in which event such Committee Member shall be so liable.

         5.5      Devotion of Time. The Committee Members are not obligated to
devote all of their time or business efforts to the affairs of the Company. The
Committee Members shall devote whatever time and effort as is commercially
reasonable for the operation of the Company.

         5.6      Transactions between the Company and Committee Member.
Notwithstanding that it may constitute a conflict of interest, a Committee
Member or his or her Affiliate may engage in any transaction (including,
without limitation, the purchase, sale, lease, or exchange of any property or
the rendering of any service) with the Company so long as the terms and
conditions of such transaction, on an overall basis, are fair and reasonable to
the Company and are at least as favorable to the Company as those that are
generally available from Persons capable of similarly performing them and in
similar transactions between parties operating at arm's length, and provided
that a majority of the Committee Members having no interest in such transaction
affirmatively vote or consent in writing to approve the transaction.

         5.7      Officers. The Management Committee may appoint officers at
any time; however, the officers of the Company shall include a President and
such other officers as the Management Committee deems necessary and
appropriate. The compensation of the officers shall be paid by Outback. The
officers shall serve at the pleasure of the Management Committee, subject to
(a) all rights, if any, of an officer under an employment contract, and (b) the
right of a Majority Interest to remove any officer. Any individual may hold any
number of offices. The officers shall exercise such powers and perform such
duties as specified in this Agreement and as shall be determined from time to
time by the Management Committee.

         5.8      President. All decisions as to the day to day operations of
the Company shall be made by the President. The President shall execute an
employment agreement acceptable to the President and the Management Committee.
The President shall not, without the approval of the Management Committee (or
the Members if such power is retained by the Members pursuant to this
Agreement):

                  A.       Confess a judgment against the Company;

                  B.       Admit any person as a Member;

                  C.       Declare Bankruptcy on behalf of the Company;

                  D.       Enter into any lease of real or personal property;

                  E.       Enter into any loan transaction or incur any
indebtedness of the Company in excess of $25,000;

                  F.       Execute any franchise agreement;

                  G.       Purchase any real property; or

                                      12
<PAGE>   19

                  H.       Undertake any such other matter(s) as may be (i)
prohibited by the Management Committee, or (ii) are reserved to the Management
Committee or the Committee Members.

         5.9      CHC Consulting Services. CHC shall provide consulting
services during the Term utilizing a commercially reasonable amount of time of
John Cohlan and those to whom he delegates consulting services. The consulting
services shall include communication, telephonically, in person and in writing,
with the Company regarding location of new restaurants, design of new
restaurants, decor of new restaurants, menu design, and food and beverage
selection. CHC shall also be Jimmy Buffett's quality control representative
pursuant to the Sublicense Agreement.

ARTICLE VI.       ALLOCATIONS OF NET PROFITS AND NET LOSSES AND DISTRIBUTIONS

         6.1      Allocations of Net Profit and Net Loss

                  A.       Net Loss. Net Loss shall be allocated first to
Outback in an amount equal to Outback's positive Capital Account balance until
such Capital Account balance has been reduced to zero, and then to the Members
in proportion to their Percentage Interests. Notwithstanding the previous
sentence, loss allocations to a Member shall be made only to the extent that
such loss allocations will not create a deficit Capital Account balance for
that Member in excess of an amount, if any, equal to such Member's share of
Company Minimum Gain. Any loss not allocated to a Member because of the
foregoing provision shall be allocated to the other Members (to the extent the
other Members are not limited in respect of the allocation of losses under this
SECTION 6.1A). Any loss reallocated under this SECTION 6.1A shall be taken into
account in computing subsequent allocations of income and losses pursuant to
this ARTICLE VI, so that the net amount of any item so allocated and the income
and losses allocated to each Member pursuant to this ARTICLE VI, to the extent
possible, shall be equal to the net amount that would have been allocated to
each such Member pursuant to this ARTICLE VI if no reallocation of losses had
occurred under this SECTION 6.1A.

                  B.       Net Profit. Net Profit shall be allocated to the
Members as follows:

                           (i)      First, Net Profit for each Fiscal Year
shall be allocated to those Members who have received distributions of
Distributable Cash for such Fiscal Year, in an amount equal to the
Distributable Cash received;

                           (ii)     Second, remaining Net Profit for each
Fiscal Year shall be allocated to the Members who have previously received
allocations of Net Loss in proportion to the cumulative allocation of Net Loss
until the Members have been allocated Net Profit equal to the prior allocations
of Net Loss;

                           (iii)    Thereafter, remaining Net Profit shall be
allocated to the Members in accordance with their Percentage Interests.

                  C.       Company Loan. If any Member shall receive an
                  allocation of Net Profit for any Fiscal Year in excess of (i)
                  the allocations of Net Loss and (ii) the distributions of
                  Distributable Cash to such Member for such Fiscal Year, then
                  the Company shall loan to such Member an amount equal to 40%
                  of such excess ("Tax Loan"). Notwithstanding the foregoing,
                  no Tax Loan shall be made or required if an allocation of Net
                  Profit in excess of (i) the allocation of Net Loss and (ii)
                  the distributions of Distributable Cash, results from or
                  arises out of (i) the sale, exchange or other disposition of
                  all or substantially all of the Company's assets or (ii) the
                  dissolution or liquidation of the Company. Any such Tax Loan
                  shall bear interest at a rate equal to the "prime rate" in
                  effect from time to time as reported in the Wall Street
                  Journal plus one percent (1%) and shall be repaid in full
                  prior to any distributions of Distributable Cash to such
                  Member.

         6.2      Special Allocations.  Notwithstanding SECTION 6.1:

                                      13
<PAGE>   20

                  A.       Minimum Gain Chargeback. If there is a net decrease
in Company Minimum Gain during any Fiscal Year, each Member shall be specially
allocated items of Company income and gain for such Fiscal Year (and, if
necessary, in subsequent fiscal years) in an amount equal to the portion of
such Member's share of the net decrease in Company Minimum Gain that is
allocable to the disposition of Company property subject to a Nonrecourse
Liability, which share of such net decrease shall be determined in accordance
with Regulations Section 1.704-2(g)(2). Allocations pursuant to this SECTION
6.2A shall be made in proportion to the amounts required to be allocated to
each Member under this SECTION 6.2A. The items to be so allocated shall be
determined in accordance with Regulations Section 1.704-2(f). This SECTION 6.2A
is intended to comply with the minimum gain chargeback requirement contained in
Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

                  B.       Chargeback of Minimum Gain Attributable to Member
Nonrecourse Debt. If there is a net decrease in Company Minimum Gain
attributable to a Member Nonrecourse Debt, during any Fiscal Year, each Member
who has a share of the Company Minimum Gain attributable to such Member
Nonrecourse Debt (which share shall be determined in accordance with
Regulations Section 1.704-2(i)(5)) shall be specially allocated items of
Company income and gain for such Fiscal Year (and, if necessary, in subsequent
Fiscal Years) in an amount equal to that portion of such Member's share of the
net decrease in Company Minimum Gain attributable to such Member Nonrecourse
Debt that is allocable to the disposition of Company property subject to such
Member Nonrecourse Debt (which share of such net decrease shall be determined
in accordance with Regulations Section 1.704-2(i)(5)). Allocations pursuant to
this SECTION 6.2B shall be made in proportion to the amounts required to be
allocated to each Member under this SECTION 6.2B. The items to be so allocated
shall be determined in accordance with Regulations Section 1.704-2(i)(4). This
SECTION 6.2B is intended to comply with the minimum gain chargeback requirement
contained in Regulations Section 1.704-2(i)(4) and shall be interpreted
consistently therewith.

                  C.       Nonrecourse Deductions. Any nonrecourse deductions
(as defined in Regulations Section 1.704-2(b)(1)) for any Fiscal Year or other
period shall be specially allocated to the Members in proportion to their
Percentage Interests.

                  D.       Member Nonrecourse Deductions. Those items of
Company loss, deduction, or Code Section 705(a)(2)(B) expenditures which are
attributable to Member Nonrecourse Debt for any Fiscal Year or other period
shall be specially allocated to the Member who bears the economic risk of loss
with respect to the Member Nonrecourse Debt to which such items are
attributable in accordance with Regulations Sections 1.704-2(b)(4) and
1.704-2(i).

                  E.       Qualified Income Offset. If a Member unexpectedly
receives any adjustments, allocations, or distributions described in
Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), or any other event
creates a deficit balance in such Member's Capital Account in excess of such
Member's share of Company Minimum Gain, then items of Company income or gain
shall be specially allocated to such Member in an amount and manner which
complies with the "qualified income offset" rules of Regulations Section
1.704-1(b)(ii)(d).

         6.3      Code Section 704(c) Allocations. Notwithstanding any other
provision in this ARTICLE VI, in accordance with Code Section 704(c) and the
Regulations promulgated thereunder, income, gain, loss, and deduction with
respect to any property contributed to the capital of the Company shall, solely
for tax purposes, be allocated among the Members so as to take account of any
variation between the adjusted basis of such property to the Company for
federal income tax purposes and its fair market value on the date of
contribution. Allocations pursuant to this SECTION 6.3 are solely for purposes
of federal, state and local taxes. As such, they shall not affect or in any way
be taken into account in computing a Member's Capital Account or share of
profits, losses, or other items of distributions pursuant to any provision of
this Agreement.

         6.4      Allocation of Net Profits and Losses and Distributions in
Respect of a Transferred Interest. If any Economic Interest is transferred, or
is increased or decreased by reason of the admission of a new Member or
otherwise,

                                      14
<PAGE>   21

during any Fiscal Year of the Company, Net Profit or Net Loss for such Fiscal
Year shall be assigned pro rata to each day in the particular period of such
Fiscal Year to which such item is attributable (i.e., the day on or during
which it is accrued or otherwise incurred) and the amount of each such item so
assigned to any such day shall be allocated to the Member or Assignee based
upon its respective Economic Interest at the close of such day.

                  However, for the purpose of accounting convenience and
simplicity, the Company shall treat a transfer of, or an increase or decrease
in, an Economic Interest which occurs at any time during a semi-monthly period
(commencing with the semi-monthly period including the date hereof) as having
been consummated on the last day of such semi-monthly period, regardless of
when during such semi-monthly period such transfer, increase, of decrease
actually occurs (i.e., sales and dispositions made during the first fifteen
(15) days of any month will be deemed to have been made on the 15th day of the
month).

                  Notwithstanding any provision above to the contrary, gain or
loss of the Company realized in connection with a sale or other disposition of
any of the assets of the Company shall be allocated solely to the parties
owning Economic Interests as of the date such sale or other disposition occurs.

         6.5      Distributions of Distributable Cash by the Company.

                  A.       Subject to applicable law and any limitations
contained in this Agreement, all Distributable Cash of the Company shall be
distributed to the Members no less frequently than quarterly.

                  B.       Subject to ARTICLE X, all distributions of
Distributable Cash to Members shall be made in accordance with their Percentage
Interests. Notwithstanding the foregoing, in the event the Company receives
licensing fees or royalties or any other form of revenue for use of the
Proprietary Marks on any product sold through a channel of trade other than the
Restaurants, such licensing fees and royalties shall be distributed fifty
percent (50%) to CHC and fifty percent (50%) to Outback.

                  C.       The parties acknowledge and agree that sixteen
percent (16%) of all distributions of Distributable Cash to CHC under any
provision of this Agreement constitute payment of a royalty pursuant to Section
7c of the Sublicense Agreement.

                  D.       All distributions shall be made only to the Persons
who, according to the books and records of the Company, are the holders of
record of the Economic Interests in respect of which such distributions are
made on the actual date of distribution. Subject to SECTION 6.8, neither the
Company nor any Management Committee shall incur any liability for making
distributions in accordance with this SECTION 6.5.

         6.6      Fees to Members.

                  A.       The Company shall pay to CHC the sum of Nine Hundred
Eighty Thousand Dollars ($980,000) for its services pursuant to SECTION 5.9 and
shall pay to CHC, pursuant to the Sublicense Agreement, the sum of Twenty
Thousand Dollars ($20,000), as consideration for CHC's license of the
Proprietary Marks. Upon the opening of the Company's twentieth (20th)
Restaurant, the Company shall pay to CHC an additional Nine Hundred Eight
Thousand Dollars ($980,000) for its services pursuant to SECTION 5.9 and shall
pay to CHC, pursuant to the Sublicense Agreement, an additional Twenty Thousand
Dollars ($20,000), as additional consideration for CHC's license of the
Proprietary Marks. Outback shall contribute to the Company the funds required
under this SECTION 6.6(A) as a capital contribution.

                  B.       Subject to SECTION 5.3D(I)(A), the Company shall pay
to CHC a fee equal to one and 68/100 percent (1.68%) of each Restaurant's Net
Sales (hereinafter defined) for its services pursuant to SECTION 5.9. Subject
to

                                      15
<PAGE>   22

SECTION 5.3D(i)(a), the Company shall pay to CHC, pursuant to the Sublicense
Agreement, a royalty equal to 32/100 percent (.32%) of each Restaurant's Net
Sales. No fees shall be paid to CHC under this Section with respect to any Net
Sales derived from licensing fees or royalties or any other form of revenue
received by the Company for use of the Proprietary Marks on any product sold
through a channel of trade other than the Restaurants. The fee shall be paid
monthly, within ten business days after each calendar month.

                  C.       The Company shall pay to Outback an accounting and
supervision fee equal to one and six tenths percent (1.6%) of each Restaurant's
Net Sales. The accounting and supervision fee shall be paid monthly within ten
business days after each calendar month.

                  D.       The fees provided for in this SECTION 6.6 shall not
be considered distributions of Distributable Cash to the Members.

                  E.       Net Sales shall mean all revenue (net of credit card
processing fees) from the sale of all services and products and all other
income of every kind and nature related to each Restaurant, whether for cash or
credit and regardless of collection in the case of credit; provided, however,
that "net sales" shall not include (i) any sales taxes or other taxes collected
from customers for transmittal to the appropriate taxing authority or (ii) any
sales recorded for control purposes but for which no payment is received.

         6.7      Form of Distribution. Except as provided in SECTION 10.4, a
Member, regardless of the nature of the Member's Capital Contribution, has no
right to demand and receive any distribution from the Company in any form other
than cash. Except as provided in SECTION 10.4, no Member may be compelled to
accept from the Company a distribution of any asset in kind in lieu of a
proportionate distribution of money being made to other Members and no Member
may be compelled to accept a distribution of any asset in kind.

         6.8      Restriction on Distributions. No distribution of
Distributable Cash shall be made if, after giving effect to the distribution,
all liabilities of the Company, other than liabilities to Members on account of
their Membership Interests and liabilities for which the recourse of creditors
is limited to specified property of the Company, exceed the fair value of the
assets of the Company, except that the fair value of property that is subject
to a liability for which the recourse of creditors is limited shall be included
in the assets of the Company only to the extent that the fair value of that
property exceeds that liability.

         6.9      Return of Distributions. A Member who receives a distribution
in violation of SECTION 6.8, and who knew at the time of the distribution that
the distribution violated SECTION 6.8, shall be liable to the Company for the
amount of the distribution. A Member who receives a distribution in violation
of SECTION 6.8, and who did not know at the time of the distribution that the
distribution violated SECTION 6.8, shall not be liable for the amount of the
distribution. A Member who receives a distribution shall have no liability for
the amount of the distribution after the expiration of three (3) years from the
date of the distribution unless an action to recover the distribution from such
Member is commenced prior to the expiration of said three (3)-year period and
an adjudication of liability against such Member is made in the said action.

         6.10     Obligations of Members to Report Allocations. The Members are
aware of the income tax consequences of the allocations made by this ARTICLE VI
and SECTION 10.4 and hereby agree, unless otherwise required by law or by
agreement with government authorities, to report their shares of Company income
and loss for income tax purposes in accordance with the terms of this
Agreement.

ARTICLE VII.      TRANSFER AND ASSIGNMENT OF INTERESTS

         7.1      Transfer and Assignment of Interests.

                                      16
<PAGE>   23

                  A.       General Restriction. Except as otherwise provided in
this ARTICLE VII, a Member shall not be entitled to transfer, assign, convey,
sell, encumber or in any way alienate all or any part of its Membership
Interest (collectively, "transfer") except with the prior written consent of
all Members, which consent may be given or withheld, conditioned or delayed, as
the Members may determine in their sole and absolute discretion.
Notwithstanding any other provision of this Agreement, no transfer whatsoever
shall be made to any person or entity (i) that is a competitor of the
non-Transferor Member, or (ii) has a character or reputation that would, in the
reasonable opinion of the non-Transferor Member, adversely impact the Company
or its business.

                  B.       Transfers of Interests in Members. Without limiting
the generality of the foregoing, the sale or exchange of at least twenty
percent (20%) of the equity or voting stock of a Member, if a Member is a
corporation, or the transfer of an interest or interests of at least twenty
percent (20%) in the capital or profits or voting interest of a Member (whether
accomplished by the sale or exchange of interests or by the admission of new
partners or members), if a Member is a partnership or limited liability
company, or the cumulative transfer of such interests in a Member which
effectively equal the foregoing (including transfer of interests followed by
the incorporation of a Member and subsequent stock transfers, or transfers of
stock followed by the liquidation of a Member and subsequent transfers of
interests) will be deemed to constitute an assignment of a Membership Interest
subject to this ARTICLE VII. After the consummation of any transfer of any part
of a Membership Interest, the Membership Interest so transferred shall continue
to be subject to the terms and provisions of this Agreement and any further
transfers shall be required to comply with all the terms and provisions of this
Agreement.

                  C.       Improper Transfers Void. Transfers in violation of
this ARTICLE VII shall be null and void and the transferee shall not become a
Member or Assignee.

         7.2      Further Restrictions on MHI's Principals. CHC, MHI and the
MHI's Principals acknowledge and agree that Outback has entered into this
Agreement in reliance on the agreement of the MHI Principals to restrict
transfer of ownership interests in MHI, Jimmy Buffett and John Cohlan hereby
represent and warrant to Outback that Jimmy Buffett and John Cohlan are members
and managers on the governing board of MHI, and that Jimmy Buffett is the owner
of a majority of the membership interests of MHI. The ownership of a majority
of the member interests of MHI by Jimmy Buffett is a material inducement to
Outback entering into this Agreement. Except as provided in SECTION 7.4, Jimmy
Buffett and John Cohlan hereby covenant and agree that they shall not, in any
manner, transfer, alienate or encumber any of the member interests, or other
voting or ownership interest, in MHI without the prior written consent of
Outback, which consent may be granted or denied in Outback's sole discretion.
Further, MHI, Jimmy Buffett and John Cohlan hereby covenant and agree that they
shall not in any manner allow any action to be taken that would result in Jimmy
Buffett, individually, having insufficient voting power to control all material
matters submitted to a vote of MHI's members that relate to CHC or the Company.
Notwithstanding the foregoing, the MHI Principals may make such transfers of
interests in MHI if, prior to such transfer, Jimmy Buffett, individually,
acquires and maintains majority ownership of CHC and sufficient voting power to
control all material matters submitted to a vote of CHC's members, and
following any such transfer, the provisions of this SECTION 7.2 shall apply
with respect to Jimmy Buffett's ownership of CHC.

         7.3      Further Restrictions on Transfer of Interests. In addition to
other restrictions found in this Agreement, no Member shall transfer all or any
part of its Membership Interest:

                  A.       Without compliance with all federal and state
securities law, and

                  B.       If the Membership Interest to be transferred, when
added to the total of all other Membership Interests transferred in the
preceding twelve (12) consecutive months prior thereto, would cause the tax
termination of the Company under Code Section 708(b)(1)(B).

                                      17
<PAGE>   24

         7.4      Permitted Transfers.

                  A.       A Membership Interest may be transferred to any
other Member, subject to compliance with SECTION 7.2 AND 7.3, and without the
prior written consent of the other Members as required by SECTION 7.1.

                  B.       Subject to the restrictions of SECTION 7.2: Jimmy
Buffett and John Cohlan may make bona fide gifts of interests in MHI to their
respective family members, or to one or more trusts for the benefit of their
family members, for estate planning purposes provided that Jimmy Buffett
remains in compliance with SECTION 7.2 hereof.

         7.5      Effective Date of Permitted Transfers. Any permitted transfer
of all or any portion of a Membership Interest or an Economic Interest shall be
effective as of the date provided in SECTION 6.4 following the date upon which
the requirements of SECTIONS 7.1, 7.2 and 7.3 have been met. The Management
Committee shall provide the Members with written notice of such transfer as
promptly as possible after the requirements of SECTIONS 7.1, 7.2 and 7.3 have
been met. Any transferee of a Membership Interest shall take subject to the
restrictions on transfer imposed by this Agreement.

         7.6      Substitution of Members. An Assignee shall have the right to
become a substitute Member only if (i) the requirements of SECTIONS 7.1, 7.2
AND 7.3 hereof are met, (ii) the Assignee executes an instrument satisfactory
to the Management Committee accepting and adopting the terms and provisions of
this Agreement, and (iii) the Assignee pays any reasonable expenses in
connection with its admission as a new Member. The admission of an Assignee as
a substitute Member shall not result in the release of the Member which
assigned the Membership Interest from any liability that such Member may have
to the Company.

         7.7      Rights of Legal Representatives. If a Member who is an
individual dies or is adjudged by a court of competent jurisdiction to be
incompetent to manage the Member's person or property, the Member's executor,
administrator, guardian, conservator, or other legal representative may
exercise all of the Member's rights for the purpose of settling the Member's
estate or administering the Member's property, including any power the Member
has under the Certificate or this Agreement to give an Assignee the right to
become a Member. If a Member is a corporation, trust, or other entity and is
dissolved or terminated, the powers of that Member may be exercised by its
legal representative or successor.

         7.8      No Effect to Transfers in Violation of Agreement. Any
transfer of a Membership Interest in violation of this ARTICLE VII, shall be
null and void and the transferee shall not become a Member or Assignee. The
transferee shall have no right to vote or participate in the management of the
business, property and affairs of the Company or to exercise any rights of a
Member.

                  Upon and contemporaneously with any transfer (whether arising
out of an attempted charge upon that Member's Economic Interest by judicial
process, a foreclosure by a creditor of the Member or otherwise) of a Member's
Economic Interest which does not at the same time transfer the balance of the
rights associated with the Membership Interest transferred by the Member
(including, without limitation, the rights of the Member to vote or participate
in the management of the business, property and affairs of the Company), the
Company shall purchase from the Member, and the Member shall sell to Company
for a purchase price of one hundred dollars ($100), all remaining rights and
interests retained by the Member that relate to or allow for participation in
the management of the Company or to vote on any matter submitted to Members for
a vote. Such purchase and sale shall not, however, result in the release of the
Member from any liability to the Company as a Member.

         7.9      Rights of First Refusal.

                  A.       Mutual Rights. Except for transfers pursuant to
SECTION 7.4, but subject to SECTION 7.1, 7.2 AND 7.3, if a Member (or any
Member Parent) (each a "Transferor") desires to transfer not more than 20% of

                                      18
<PAGE>   25

his or its Membership Interest (or, in the case of a Member Parent not more
than 20% of his or its Membership Interest or other voting or ownership
interest in CHC or Outback) to any person or entity, the Transferor shall,
prior to any such Transfer, give the Management Committee written notice of
such desire ("Notice of Transfer"), which notice shall specify the Membership
Interest to be transferred (for purposes of SECTION 7.9A AND 7.9B, "Membership
Interest" shall also mean, in the case of a Member Parent, any membership
interest or other voting or ownership interest in a Member), the identity of
the proposed transferee, the purchase price for the Membership Interest and the
terms for payment of said price, including the treatment of Company liabilities
and the Transferor's liability therefore ("Purchase Price"). Any purported
Notice of Transfer that does not comply with the requirements of this SECTION
7.9A shall be null and void and of no effect hereunder. The Management
Committee shall immediately notify the Members of such Notice of Transfer. Upon
receipt of a proper Notice of Transfer, the other Members shall thereupon have
the right to acquire the portion of the Transferor's Membership Interest as is
specified in the Notice of Transfer, on terms identical to the Purchase Price.
In the event the Purchase Price contains terms that the other Members cannot
reasonably duplicate, the Members shall have the right to substitute the
reasonable cash equivalent thereof. The other Members shall have the right to
purchase the Transferor's Membership Interest specified in the Notice of
Transfer in proportion to the other Member's Percentage Interests or in such
other proportions as the other Members agree.

                  B.       Exercise of Rights.

                           (i)      The purchasing Member(s) shall exercise the
right of first refusal contained herein by mailing written notice thereof
("Notice of Election") to the Transferor within forty (40) days of mailing of
the Notice of Transfer. In the event no purchasing Member(s) mail a Notice of
Election to the Transferor within said 40-day period, the purchase option
contained herein shall lapse (except as otherwise provided in SECTION 7.10). In
the event a Member timely exercises the purchase option contained herein, such
Member shall mail written notice to the Transferor of whether the Member has
elected to purchase the entire Membership Interest of the Transferor or such
portion as was specified in the Notice of Transfer, if less; such notice to be
mailed within ten (10) days of the mailing of the Notice of Election.

                           (ii)     The closing for any purchase hereunder
shall be consummated and closed in the Company's principal office on a date and
at a time designated by the purchasing Member in a notice to the Transferor,
provided such consummation and closing date shall occur within ninety-five (95)
days from the date of mailing of the Notice of Election. At such closing, the
Transferor shall execute and deliver all documents and instruments as are
necessary and appropriate, in the opinion of counsel for the Company, to
effectuate the transfer of the Transferor's Membership Interest in accordance
with the terms of the Notice of Transfer and the purchasing Member shall
deliver the Purchase Price.

         7.10     Transfer Permitted After Failure to Elect. Subject to the
foregoing sentence and to SECTION 7.1, 7.2 AND 7.3, in the event a Member does
not elect pursuant to SECTION 7.9 to exercise the purchase option specified
therein, or in the event the closing for any purchase pursuant to SECTION 7.9
does not occur within the time limits specified therein, then the Transferor
shall be free to transfer the exact portion of his, her, or its Membership
Interest as was specified in the Notice of Transfer to the person or entity
identified in the Notice of Transfer in exchange for the exact Purchase Price
as was specified in the Notice of Transfer; PROVIDED, HOWEVER, that the closing
and consummation of such transfer shall occur within one hundred thirty (130)
days after the date of mailing of the Notice of Transfer and provided further
that such transfer must comply with all other requirements of this Article VII.
In the event such transfer is not so closed and consummated within such period,
the purchase option granted in SECTION 7.9 shall again be exercisable and the
Transferor shall make no Transfer of any portion of his Membership Interest, or
any right, title or interest therein, until such Transferor has again complied
with all terms and provisions of this ARTICLE VII. In the event a Member does
not elect pursuant to SECTION 7.9 to exercise the purchase option contained
therein and the Transferor makes a permitted Transfer in

                                      19
<PAGE>   26

compliance with the terms and provisions of this ARTICLE VII, then the person
or entity to whom such Membership Interest is transferred shall nevertheless
acquire such Membership Interest subject to the restriction imposed on such
Membership Interest under this ARTICLE VII as to further transfers of such
Membership Interest, and provided further that any such transferee shall agree
in writing to be bound by all terms and provisions of this Agreement.

ARTICLE VIII.     CESSATION OF DEVELOPMENT

         8.1      Cessation of Development. For purposes of this Agreement the
Company shall be deemed to have ceased development if (i) during the first
three (3) years from the date of this Operating Agreement the Company has not,
in any period of eighteen (18) consecutive months, executed a lease or purchase
contract for a new Restaurant, or, in any period of twenty-four (24)
consecutive months, opened a new Restaurant; or (ii) the Company has not, in
any period of twenty-four (24) consecutive months beginning after the
expiration of three (3) years from the date of this Operating Agreement, opened
three (3) new Restaurants.

         8.2      Consequences of Cessation. If the Company ceases development,
the Company shall continue in existence and:

                  A.       CHC shall have the exclusive right and option to
purchase the entire (and not less than the entire) Member Interest of Outback,
for its Fair Market Value.

                  B.       Determination of Fair Market Value. For the purposes
of this SECTION 8.2, the "Fair Market Value" of the Membership Interest at
issue shall be determined in the following manner:

                           (i)      Outback and CHC shall in good faith attempt
to agree upon the Fair Market Value of Outback's Membership Interest within ten
(10) days following Outback's receipt of CHC's notice of exercise of its
purchase option. If there is no agreement on the Fair Market Value, Outback and
CHC shall in good faith attempt to agree upon a mutually acceptable appraiser
within fifteen (15) days following the date of the notice of exercise. In the
event they fail to so agree, two (2) appraisers shall be appointed within
thirty (30) days following the date of the notice of exercise, one by Outback,
and one by CHC. If Outback, on the one hand, or CHC, on the other hand, fail to
appoint an appraiser within the thirty (30) day period specified herein, the
sole appraiser appointed within such thirty (30) day period shall be the sole
appraiser for the purposes of determining Fair Market Value of Outback's
Membership Interest to be purchased pursuant to this SECTION 8.2. Outback and
CHC shall promptly provide notice of the name of the appraiser so appointed by
such party to the other. The initial two appraisers shall in good faith attempt
to agree on the appointment of a third appraiser within fifteen (15) days of
the expiration of the thirty (30) day period. If the first two appraisers fail
to agree upon a third appraiser within such fifteen (15) day period, either
Outback or CHC may demand the appointment of an appraiser be made by the then
director of the Regional Office of the American Arbitration Association located
nearest to Orlando, Florida, in which event the appraiser appointed thereby
shall be the third appraiser. Each of the appraisers shall submit to Outback
and CHC, within thirty (30) days after the final appraiser has been appointed
("Appraisal Period"), a written appraisal (the "Appraisal") of the Fair Market
Value of Outback's Membership Interest.

                           (ii)     In connection with any appraisal conducted
pursuant to this Agreement, the parties hereto agree that any appraiser
appointed hereunder shall be given full access during normal business hours to
all information required and relevant to a valuation of Outback's Membership
Interest.

                           (iii)    If three appraisers are appointed, the Fair
Market Value of Outback's Membership Interest in question shall be equal to the
numerical average of three appraised determinations; provided, however, that if
the difference between any two appraisals is not more than ten percent (10%) of
the lower of the two, and the third

                                      20
<PAGE>   27

appraisal differs by more than twenty-five percent (25%) of the lower of the
other two appraisals, the numerical average of such two appraisals shall be
determinative.

                           (iv)     Any appraiser, to be qualified to conduct
an appraisal hereunder, shall be an independent appraiser (i.e., not affiliated
with Outback, its officers, directors or controlling persons, CHC or the MHI
Principals), an M.A.I. appraiser or its equivalent, and shall be reasonably
competent as an expert to appraise the value of the Membership Interest. If any
appraiser initially appointed under this Agreement shall, for any reason, be
unable to serve, a successor appraiser shall be promptly appointed in
accordance with the procedures pursuant to which the predecessor appraiser was
appointed.

                  Notwithstanding the foregoing, if the determination of the
Fair Market Value of Outback's Membership Interest by appraisal is not
completed and all appraisal reports delivered as provided herein within the
Appraisal Period, then all closing, payment, and similar dates subsequent
thereto shall be automatically extended one (1) day for each day delivery of
the appraisal reports is delayed beyond the end of the Appraisal Period.

                           (v)      The cost of the appraiser appointed by each
party shall be borne by each such party. The cost of the third appraiser, if
any, or the sole appraiser, in the event Outback and CHC mutually agree upon a
single appraiser, shall be borne equally by Outback and CHC.

                  C.       Exercise of Rights.

                           (i)      CHC shall exercise the purchase option
contained herein by giving written notice thereof ("Notice of Election") to
Outback within sixty (60)days of the date of cessation of development (being
the first day of the calendar month following the expiration of the applicable
period). If not timely and properly exercised as provided in this Section,
CHC's purchase option shall lapse and shall thereafter be null and void.

                           (ii)     The closing for any purchase hereunder
shall be consummated and closed in the Company's principal office on a date and
at a time designated by CHC in a notice to Outback, provided such consummation
and closing date shall occur within ninety (90) days from the end of the
Appraisal Period. At such closing, Outback shall execute and deliver all
documents and instruments as are necessary and appropriate, in the opinion of
counsel for the Company, to effectuate the transfer of Outback's Membership
Interest and CHC shall deliver the purchase price.

         8.3      Purchase Option on Acquisition of Control. In event any
person or group of persons acting in concert (other than (i) a person or group
that includes existing members of OSI's executive management as active
participants or (ii) institutional investors who do not take an active role in
management of OSI) acquires sufficient capital stock of OSI to control OSI (but
in no event shall control be deemed to exist with ownership of less than thirty
percent (30%) of OSI's capital stock), CHC shall have the exclusive right and
option to purchase the entire (and not less than the entire) Membership
Interest of Outback for its Fair Market Value. For purposes of this SECTION 8.3
Fair Market Value shall have the same meaning and be determined in the same
manner as provided in SECTION 8.2B. The purchase option provided herein shall
be subject to the same terms and conditions as provided in SECTION 8.2C
(substituting "ninety (90) days from acquisition of control" for "ninety (90)
days of cessation of development" in SECTION 8.2C(I)).

ARTICLE IX.       ACCOUNTING, RECORDS, REPORTING BY MEMBERS

         9.1      Books and Records. The books and records of the Company shall
be kept, and the financial position and the results of its operations recorded,
in accordance with generally accepted accounting principles ("GAAP"). The books
and records of the Company shall reflect all the Company transactions and shall
be appropriate and adequate for the Company's business. The Company shall
maintain at its principal office all of the following:

                                      21
<PAGE>   28

                  A.       A current list of the full name and last known
business or residence address of each Member and Assignee set forth in
alphabetical order, together with the Capital Contributions, Capital Account
and Percentage Interest of each Member and Assignee;

                  B.       A current list of the full name and business or
residence address of each Committee Member;

                  C.       A copy of the Certificate and any and all amendments
thereto together with executed copies of any powers of attorney pursuant to
which the Certificate or any amendments thereto have been executed;

                  D.       Copies of the Company's federal, state, and local
income tax or information returns and reports, if any, for the six (6) most
recent taxable years;

                  E.       A copy of this Agreement and any and all amendments
thereto together with executed copies of any powers of attorney pursuant to
which this Agreement or any amendments thereto have been executed;

                  F.       Copies of the financial statements of the Company,
if any, for the six (6) most recent Fiscal Years; and

                  G.       The Company's books and records as they relate to
the internal affairs of the Company for at least the current and past four (4)
Fiscal Years.

         9.2      Delivery to Members and Inspection.

                  A.       Upon the request of any Member or Assignee,
President shall promptly deliver to the requesting Member or Assignee, at the
expense of the Company, a copy of the information required to be maintained
under SECTION 9.1.

                  B.       Each Member, Committee Member and Assignee has the
right, upon reasonable request for purposes reasonably related to the interest
of the Person as Member, Committee Member or Assignee, to:

                           (i)      inspect and copy during normal business
hours any of the Company records described in SECTION 9.1;

                           (ii)     obtain from the Management Committee,
promptly after their becoming available, a copy of the Company's federal,
state, and local income tax or information returns for each Fiscal Year; and

                           (iii)    receive a monthly income statement and cash
flow statement of the Company and a balance sheet of the Company as of the end
of that period. The statements and balance sheet shall be delivered or mailed
to the Members within twenty (20) days after the end of each such period.

                  C.       Any request, inspection or copying by a Member or
Assignee under this SECTION 9.2 may be made by that Person or that Person's
agent or attorney.

         9.3      Annual Statements.

                  A.       The Management Committee shall cause an annual
report to be sent to each of the Members not later than ninety (90) days after
the close of the Fiscal Year. The report shall contain a balance sheet as of
the end of the Fiscal Year and an income statement and statement of changes in
financial position for the Fiscal Year. Such financial statements shall be
accompanied by the report thereon, if any, of the independent accountants
engaged by the

                                      22
<PAGE>   29

Company or, if there is no report, the certificate of the Management Committee
that the financial statements were prepared without audit from the books and
records of the Company. If the Management Committee determines to have the
Company's financial statements audited, the cost of such audit shall be paid by
the Company.

                  B.       Outback shall cause to be prepared at least
annually, at Outback's expense, information necessary for the preparation of
the Members' and Assignees' federal and state income tax returns. The
Management Committee shall send or cause to be sent to each Member or Assignee
within sixty (60) days after the end of each taxable year such information as
is necessary to complete federal and state income tax or information returns,
and a copy of the Company's federal, state, and local income tax or information
returns for that year.

         9.4      Financial and Other Information. The Management Committee
shall provide such financial and other information relating to the Company or
any other Person in which the Company owns, directly or indirectly, an equity
interest, as a Member may request.

         9.5      Filings. Outback, at Outback's expense, shall cause the
income tax returns for the Company to be prepared and timely filed with the
appropriate authorities. Outback, , at Company expense, shall also cause to be
prepared and timely filed, with appropriate federal and state regulatory and
administrative bodies, amendments to, or restatements of, the Certificate and
all reports required to be filed by the Company with those entities under the
Act or other then current applicable laws, rules, and regulations. If a
Committee Member is required by the Act to execute or file any document fails,
after demand, to do so within a reasonable period of time or refuses to do so,
any other Committee Member or Member may prepare, execute and file that
document.

         9.6      Bank Accounts. The Management Committee shall maintain the
funds of the Company in one or more separate bank accounts in the name of the
Company, and shall not permit the funds of the Company to be commingled in any
fashion with the funds of any other Person.

         9.7      Accounting Decisions and Reliance on Others. All decisions as
to accounting matters, except as otherwise specifically set forth herein, shall
be made by the Management Committee. All accounting decisions shall be made in
accordance with GAAP. The Management Committee may rely upon the advice of its
accountants as to whether such decisions are in accordance with GAAP.

         9.8      Tax Matters for the Company Handled by Management Committee
and Tax Matters Partner. The Management Committee shall from time to time cause
the Company to make such tax elections it deems to be in the best interests of
the Company and the Members. The Tax Matters Partner shall represent the
Company (at Outback's expense) in connection with all examinations of the
Company's affairs by tax authorities, including resulting judicial and
administrative proceedings, and shall expend the Company funds for professional
services and costs associated therewith. The Tax Matters Partner shall oversee
the Company tax affairs in the overall best interests of the Company but shall
not have the right to agree to extend any statute of limitations without the
approval of a Majority Interest. If for any reason the Tax Matters Partner can
no longer serve in that capacity or ceases to be a Member, as the case may be,
a Majority Interest may designate another Member to be Tax Matters Partner.

ARTICLE X.        DISSOLUTION AND WINDING UP

         10.1     Dissolution. The Company shall be dissolved, its assets shall
be disposed of, and its affairs wound up on the first to occur of the
following:

                  A.       Subject to SECTION 10.2, the agreement of three (3)
of the five (5) Committee Members to terminate the Company;

                  B.       The entry of a decree of judicial dissolution;

                                      23
<PAGE>   30

                  C.       The vote of non-defaulting Members holding a
majority of the Percentage Interests held by all non-defaulting Members;

                  D.       The sale of all or substantially all of the assets
of Company.

         Except for the foregoing, the Company shall not dissolve on the
occurrence of any other event.

         10.2 Purchase Option on Agreement for Dissolution. In the event of a
determination to dissolve the Company pursuant to SECTION 10.1 A or C, CHC
shall have the exclusive right and option to purchase Outback's Member Interest
for its Fair Market Value. Fair Market Value shall have the same meaning and
shall be determined in the same manner as provided in SECTION 8.2 B hereof.

                  A.       Exercise of Rights.

                           (i)      CHC shall exercise the purchase option
contained herein by giving written notice thereof ("Notice of Election") to
Outback within sixty (60)days of the date of cessation of development (being
the first day of the calendar month following the expiration of the applicable
period). If not timely and properly exercised as provided in this Section,
CHC's purchase option shall lapse and shall thereafter be null and void.

                           (ii)     The closing for any purchase hereunder
shall be consummated and closed in the Company's principal office on a date and
at a time designated by CHC in a notice to Outback, provided such consummation
and closing date shall occur within ninety (90) days from the end of the
Appraisal Period. At such closing, Outback shall execute and deliver all
documents and instruments as are necessary and appropriate, in the opinion of
counsel for the Company, to effectuate the transfer of Outback's Membership
Interest and CHC shall deliver the purchase price.

         10.3     Purchase Option on Proposed Sale. In the event Outback
approves a proposed sale, exchange or other disposition of all or substantially
all of the assets of the Company, which includes a transfer of the Company's
rights under the Sublicense Agreement, CHC shall have the exclusive right and
option to purchase Outback's Member Interest for its Fair Market Value. Fair
Market Value shall have the same meaning and shall be determined in the same
manner as provided in SECTION 8.2 B hereof.

                  A.       Exercise of Rights.

                           (i)      CHC shall exercise the purchase option
contained herein by giving written notice thereof ("Notice of Election") to
Outback within sixty (60) days of the date of cessation of development (being
the first day of the calendar month following the expiration of the applicable
period). If not timely and properly exercised as provided in this Section,
CHC's purchase option shall lapse and shall thereafter be null and void.

                           (ii)     The closing for any purchase hereunder
shall be consummated and closed in the Company's principal office on a date and
at a time designated by CHC in a notice to Outback, provided such consummation
and closing date shall occur within ninety (90) days from the end of the
Appraisal Period. At such closing, Outback shall execute and deliver all
documents and instruments as are necessary and appropriate, in the opinion of
counsel for the Company, to effectuate the transfer of Outback's Membership
Interest and CHC shall deliver the purchase price.

         10.4     Winding Up. Upon the occurrence of any event specified in
SECTION 10.1, the Company shall continue solely for the purpose of winding up
its affairs in an orderly manner, liquidating its assets, and satisfying the
claims of its creditors. The Management Committee shall be responsible for
overseeing the winding up and liquidation of Company,

                                      24
<PAGE>   31

shall take full account of the liabilities of Company and assets, shall,
subject to SECTION 10.4, either cause its assets to be sold or distributed, and
if sold as promptly as is consistent with obtaining the fair market value
thereof, shall cause the proceeds therefrom, to the extent sufficient therefor,
to be applied and distributed as provided in SECTION 10.4. The Persons winding
up the affairs of the Company shall give written notice of the commencement of
winding up by mail to all known Members, creditors and claimants whose
addresses appear on the records of the Company. The Management Committee or
Members winding up the affairs of the Company shall not be entitled to
compensation for such services.

         10.5     Distributions in Kind. Any non-cash asset distributed to one
or more Members shall first be valued at its fair market value to determine the
Net Profit or Net Loss that would have resulted if such asset were sold for
such value, such Net Profit or Net Loss shall then be allocated pursuant to
ARTICLE VI, and the Members' Capital Accounts shall be adjusted to reflect such
allocations. The amount distributed and charged to the Capital Account of each
Member receiving an interest in such distributed asset shall be the fair market
value of such interest (net of any liability secured by such asset that such
Member assumes or takes subject to). The fair market value of such asset shall
be determined by the Management Committee or by the Members or if any Member
objects by an independent appraiser (any such appraiser must be recognized as
an expert in valuing the type of asset involved) selected by the Management
Committee or liquidating trustee and approved by the Members.

         10.6     Order of Payment Upon Dissolution. After determining that all
known debts and liabilities of the Company, including, without limitation,
debts and liabilities to Members who are creditors of the Company, have been
paid or adequately provided for, the remaining assets shall be distributed as
follows:

                  A.       Upon dissolution of the Company (other than in
connection with a sale of all or substantially all of the Company's assets to a
third party and other than in connection with a termination resulting from one
Member's purchase of all or part of the other Member's Membership Interest),
all assets of the Company shall be liquidated; provided, however, that no
transfer of the License to the Proprietary Marks shall be made except in
connection with and as part of a sale of the Restaurants to a purchaser who
will continue to operate the Restaurants as Cheeseburger in Paradise
Restaurants. All proceeds from liquidation of the Company assets shall be
distributed (i) to Outback until Outback shall have received an amount equal to
Outback's Capital Contributions, and (ii) then to the Members in accordance
with and to the extent of their positive Capital Account balances after giving
effect to the allocation of Net Profit or Net Loss resulting from such
liquidation, and (iii) thereafter to the Members in accordance with their
Percentage Interests. Such liquidating distributions shall be made by the end
of the Company's taxable year in which the Company is liquidated, or, if later,
within ninety (90) days after the date of such liquidation.

                  B.       Upon dissolution of the Company in connection with a
sale of all or substantially all of the Company's assets to a third party all
proceeds from liquidation of the Company's assets shall be distributed to the
Members in accordance with and to the extent of their positive Capital Account
balances after giving effect to the allocation of Net Profit or Net Loss
resulting from such liquidation, and (iii) thereafter, to the Members in
accordance with their Percentage Interests. Such liquidating distributions
shall be made by the end of the Company's taxable year in which the Company is
liquidated, or, if later, within ninety (90) days after the date of such
liquidation.

                           Notwithstanding the provisions of Article VI, Net
Loss, Net Profit and, to the extent necessary, items of gross income or
deduction for such Fiscal Year shall be allocated to the Members in order to
ensure that the distributions made pursuant to this SECTION 10.6 are in
accordance with the positive Capital Account balances of the Members (after
taking into account all appropriate adjustments to the Capital Accounts,
including adjustments that would be made as a result of such distributions).

                  10.7     Limitations on Payments Made in Dissolution. Except
for the liability of the Management Committee pursuant to SECTION 5.4 or as
otherwise specifically provided in this Agreement, each Member shall only be
entitled to

                                      25
<PAGE>   32

look solely at the assets of the Company for the return of its
Capital Contributions and positive Capital Account balance and shall have no
recourse for its Capital Contribution, positive Capital Account balance and/or
share of Net Profits (upon dissolution or otherwise) against the Management
Committee or any other Member.

ARTICLE XI.       INDEMNIFICATION AND INSURANCE

         11.1     Indemnification of Agents. Unless the Committee Members may
be liable to the Company for any event described in SECTION 5.4, the Company
shall defend and indemnify any Member or Committee Member and may indemnify any
other Person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding by reason of the
fact that it, he or she is or was a Member, Committee Member, officer, employee
or other agent of the Company or that, being or having been such a Member,
Committee Member, officer, employee or agent, it, he or she is or was serving
at the request of the Company as a manager, member, director, officer, employee
or other agent of another limited liability company, corporation, partnership,
joint venture, trust or other enterprise (all such persons being referred to
hereinafter as an "agent"), to the fullest extent permitted by applicable law
in effect on the date hereof and to such greater extent as applicable law may
hereafter from time to time permit. The Management Committee shall be
authorized, on behalf of the Company, to enter into indemnity agreements from
time to time with any Person entitled to be indemnified by the Company
hereunder, upon such terms and conditions as the Management Committee deems
appropriate in its business judgment.

         11.2     Insurance. The Company shall purchase and maintain insurance
on behalf of all Committee Members and may do so for any Person who is or was
an agent of the Company against any liability asserted against such Committee
Member or Person and incurred by such Committee Member or Person in any such
capacity, or arising out of such Person's status as an agent, whether or not
the Company would have the power to indemnify such Person against such
liability under the provisions of SECTION 11.1 or under applicable law.

ARTICLE XII.      CONFIDENTIALITY AND NON-COMPETITION

         12.1     Noncompetition.

                  A.       So long as CHC is a Member and for a period of three
(3) years commencing upon the date CHC ceases to be a Member, CHC, MHI and the
MHI Principals (and their respective Affiliates) shall not, individually or
jointly with others, directly or indirectly, whether for their own account or
for that of any other Person, operate, engage in, own or hold any ownership
interest in, have any interest in or lend any assistance to any restaurant, or
Person or entity engaged in a business owning, operating or controlling
restaurants which have a theme, decor, menu, identifying marks, or style of
cuisine the same as or similar to the Company's Restaurants, and shall not act
as an officer, director, employee, partner, independent contractor, consultant,
principal, agent, or in any other capacity for, nor lend any assistance
(financial or otherwise) or cooperation to any such restaurant or Person or
entity; provided, however, it shall not be a violation of this Section for CHC,
MHI and/or the MHI Principals to own, in the aggregate, not more than one
percent (1%) of the outstanding shares of any class of securities traded on the
New York Stock Exchange, the American Stock Exchange or the NASD National
Market System. Notwithstanding the foregoing, if CHC ceases to be a Member for
any reason other than (i) a purchase of CHC's Member Interest, or (ii) a sale
of all or substantially all of the Company's assets, or (iii) any merger,
reorganization, recapitalization, reverse merger or other similar transaction
involving the Company, the foregoing restriction on CHC, MHI and the MHI
Principals shall apply for a period of one (1) year from the date CHC ceases to
be a Member. The parties acknowledge and agree that MHI currently holds an
interest in the Margaritaville restaurant concept with locations in New
Orleans, Key West and Orlando (Universal Studios). Outback agrees that the
Margaritaville restaurant concept as currently operated in Orlando (Universal
Studios) with the following criteria: (i) a large scale "eatertainment" concept
with entertainment elements constructed as part of the interior of the
building, (ii) featuring live entertainment, (iii) having a size of not less
than 7,500 square feet, and (iv) having an interior improvement cost (excluding
cost of land and building) of not less than

                                      26
<PAGE>   33

$300 per square foot, is not competitive with the Company's Restaurants and
will not violate this SECTION 12.1A. MHI and the MHI Principals shall have the
right to continue to operate the Margaritaville restaurants in New Orleans, Key
West and Orlando (Universal Studios) and open additional "Margaritaville"
restaurants which meet all the criteria specified in (i) through (iv), but
shall not have the right to operate or license others to operate any
Margaritaville restaurant (other than the New Orleans and Key West locations)
that does not meet all the criteria of (i) through (iv). Notwithstanding the
foregoing, MHI and the MHI Principals shall have the right to operate or
license others to operate Margaritaville restaurants which meet the criteria of
(i), (ii) and (iii), but not (iv), in the Caribbean, which shall mean the
countries of Jamaica, Cayman Islands, St. Lucia, Dominican Republic, Dominica,
Barbados, Antigua, Grenada, St. Maarten, Turks and Caicos Islands, British
Virgin Islands, U.S. Virgin Islands and Cuba.

                  B.       So long as Outback is a Member, and for a period of
one (1) year thereafter, Outback (and its Affiliates) shall not, individually
or jointly with others, directly or indirectly, whether for its own account or
for that of any other Person, operate, engage in, own or hold any ownership
interest in, have any interest in or lend any assistance to, any restaurant
having a theme, decor, menu or style of cuisine the same as or similar to the
Company's Restaurants.

         12.2     Confidentiality.

                  A.       Definition. For the purpose of this Agreement,
"Proprietary Information" shall include all information designated by any
Member, either orally or in writing, as confidential or proprietary, or which
reasonably would be considered proprietary or confidential to the business
contemplated by this Agreement, including but not limited to suppliers,
customers, trade or industrial practices, marketing and technical plans,
technology, personnel, organization or internal affairs, plans for products and
ideas, recipes, menus, wine lists and proprietary techniques and other trade
secrets. Notwithstanding the foregoing, "Proprietary Information" shall not
include information which (i) has entered the public domain or became known
other than due to a breach of any obligation of confidentiality owed to the
owner of such information; (ii) was known by the recipient prior to the
disclosure of such information; (iii) became known to the recipient from a
source other than a Member or its Affiliate, provided there was no breach of an
obligation of confidentiality owed to said Member or its Affiliate; or (iv) was
independently developed by the party receiving such information.

                  B.       No Disclosure, Use, or Circumvention. No Member or
its Affiliates shall disclose any Proprietary Information to any third parties
(other than their professional and financial advisors and other than existing
or permitted franchisees) and will not use any Proprietary Information in that
Member's or Affiliate's business or any affiliated business without the prior
written consent of the other Member, and then only to the extent specified in
that consent. Consent may be granted or withheld at the sole discretion of any
Member. No Member shall contact any suppliers, customers, employees, affiliates
or associates to circumvent the purposes of this provision.

                  C.       Maintenance of Confidentiality. Each Member shall
take all steps reasonably necessary or appropriate to maintain the strict
confidentiality of the Proprietary Information and to assure compliance with
this Agreement.

         12.3     Non-solicitation. During the term of this Agreement and, with
respect to each Member, for a period two (2) years following the earlier of (A)
the date that the Member transfers all of its Membership Interest in the
Company or (B) the dissolution of the Company pursuant to ARTICLE X, the Member
shall not offer employment to any employee of the Company or of a Member, or
their Affiliates, or otherwise solicit or induce any employee of any of them to
terminate their employment, nor shall any of the MHI Principals or the officers
and directors of Outback act as an officer, director, employee, partner,
independent contractor, consultant, principal, agent, proprietor, owner or part
owner, or in any other capacity, for any person or entity which solicits

                                      27
<PAGE>   34

or otherwise induces any employee of the Company or of a Member, or their
Affiliates, to terminate their employment with such entity.

         12.4     Reasonableness of Restrictions; Reformation; Enforcement. The
parties hereto recognize and acknowledge that the geographical and time
limitations contained in SECTION 12.1, 12.2 AND 12.3 hereof are reasonable and
properly required for the adequate protection of the Company's and Members'
interests. It is agreed by the parties hereto that, if any portion of the
restrictions contained in SECTION 12.1, 12.2 OR 12.3 are held to be
unreasonable, arbitrary, or against public policy, then the restrictions shall
be considered divisible, both as to the time and to the geographical area, with
each month of the specified period being deemed a separate period of time and
each radius mile or other portion of the restricted territory being deemed a
separate geographical area, so that the longest period of time and largest
geographical area shall remain effective so long as the same is not
unreasonable, arbitrary, or against public policy. The parties hereto agree
that in the event any court of competent jurisdiction determines the specified
period or the specified geographical area of the restricted territory to be
unreasonable, arbitrary, or against public policy, a lesser time period or
geographical area which is the longest period of time and largest geographical
area determined to be reasonable, nonarbitrary, and not against public policy
may be enforced. If any of the covenants contained herein are violated and if
any court action is instituted by the Company or a Member to prevent or enjoin
such violation, then the period of time during which the business activities
shall be restricted, as provided in this Agreement, shall be lengthened by a
period of time equal to the period between the date of the breach of the terms
or covenants contained in this Agreement and the date on which the decree of
the court disposing of the issues upon the merits shall become final and not
subject to further appeal.

         In the event it is necessary for the Company or a Member to initiate
legal proceedings to enforce, interpret or construe any of the covenants
contained in SECTION 12.1, 12.2 OR 12.3 hereof, the prevailing party in such
proceedings shall be entitled to receive from the nonprevailing party, in
addition to all other remedies, all costs, including reasonable attorneys'
fees, of such proceedings including appellate proceedings.

         12.5     Specific Performance. The parties agree that a breach of any
of the covenants contained SECTION 12.1, 12.2 AND 12.3 hereof will cause
irreparable injury to the Company or a Member for which the remedy at law will
be inadequate and would be difficult to ascertain. Therefore, in the event of
the breach or threatened breach of any such covenants, the Company or injured
Member shall be entitled, in addition to any other rights and remedies it may
have at law or in equity, to obtain an injunction to restrain any threatened or
actual activities in violation of any such covenants. The parties hereby
consent and agree that temporary and permanent injunctive relief may be granted
in any proceedings which might be brought to enforce any such covenants without
the necessity of proof of actual damages, and in the event the Company or
Member does apply for such an injunction, that the Company or Member has an
adequate remedy at law shall not be raised as a defense.

ARTICLE XIII.     REPRESENTATIONS AND WARRANTIES

         Each Member warrants and represents to the other Member (each of which
warranties and representations shall be deemed to be a continuing warranty and
representation and covenant that such warranties and representations shall
remain true and correct at all times during the term of the Company) that:

                                      28
<PAGE>   35

         13.1     Status. If an entity, such Member is duly organized, validly
existing and in good standing under the laws of its state of formation, and
each has the power under its organizational documents and adequate authority to
execute, deliver, and perform this Agreement which upon such execution and
delivery will be a legal, valid, and binding obligation of such party
enforceable in accordance with its terms (subject only to the application of
bankruptcy, reorganization, insolvency or other similar laws regarding the
rights of creditors generally and the exercise of judicial discretion in
equity).

         13.2     Due Authorization. The execution, delivery and performance of
this Agreement by a Member which is an entity have been duly authorized by all
requisite corporate, partnership or other organizational action of such party
and, as of the date hereof, do not require the consent or approval of any
Person that has not been obtained and are not in contravention of or in
conflict with any term or provision of the organizational documents of such
party.

         13.3     Other Agreements and Violations of Law. The execution,
delivery and performance of this Agreement by such Member will not breach or
constitute a default under any agreement, indenture, undertaking or other
instrument to which such party or any affiliate of such party is a party or by
which any of such persons or any of their respective properties may be bound or
affected, which breach or default would have a materially adverse effect on the
financial condition of such Member or on the financial condition, properties or
operations of the Company. Other than as contemplated by this Agreement such
execution, delivery, and performance will not result in the creation or
imposition of (or the obligation to create or impose) any lien or encumbrance
on any of the Company property nor, to the knowledge of such party, constitute
or result in the violation of any law.

         13.4     No Litigation. There is no litigation or administrative or
other proceeding or tax audit pending, or, to the knowledge of such Member,
threatened against or affecting such Member, or any of its affiliates, or any
of their respective properties, which, if determined adversely, would have a
materially adverse effect on the financial condition, properties or operations
of the Company. As of the date hereof, neither such Member, nor, to the
knowledge of such Member, any affiliate of such Member is in default with
respect to any order, writ, injunction, decree or demand of any court of other
governmental or regulatory authority which might in any way adversely affect
the Company.

ARTICLE XIV.      MISCELLANEOUS

         14.1     Complete Agreement. This Agreement and the Certificate
constitute the complete and exclusive statement of agreement among the Members
with respect to the subject matter herein and therein and replace and supersede
all prior written and oral agreements or statements by and among the Members or
any of them. No representation, statement, condition or warranty not contained
in this Agreement or the Certificate will be binding on the Members or
Management Committee or have any force or effect whatsoever. To the extent that
any provision of the Certificate conflicts with any provision of this
Agreement, the Certificate shall control.

         14.2     Consultation with Attorney. Each Member has been advised to
consult with its own attorney regarding all legal matters concerning an
investment in the Company and the tax consequences of participating in the
Company, and has done so, to the extent it considers necessary.

         14.3     Tax Consequences. Each Member acknowledges that the tax
consequences to it of investing in the Company will depend on its particular
circumstances, and neither the Company, the Management Committee, the Members,
nor the partners, shareholders, members, agents, officers, directors,
employees, Affiliates, or consultants of any of them will be responsible or
liable for the tax consequences to it, him or her of an investment in the
Company. It, he or she will look solely to, and rely upon, its, his or her own
advisers with respect to the tax consequences of this investment.

                                      29
<PAGE>   36

         14.4     No Assurance of Tax Benefits. Each Member acknowledges that
there can be no assurance that the Code or the Regulations will not be amended
or interpreted in the future in such a manner so as to deprive the Company and
the Members of some or all of the tax benefits they might now receive, nor that
some of the deductions claimed by the Company or the allocations of items of
income, gain, loss, deduction, or credit among the Members may not be
challenged by the Internal Revenue Service.

         14.5     Binding Effect. Subject to the provisions of this Agreement
relating to transferability, this Agreement will be binding upon and inure to
the benefit of the Members, and their respective successors and assigns.

         14.6     Parties in Interest. Except as expressly provided in the Act,
nothing in this Agreement shall confer any rights or remedies under or by
reason of this Agreement on any Persons other than the Members and their
respective successors and assigns nor shall anything in this Agreement relieve
or discharge the obligation or liability of any third person to any party to
this Agreement, nor shall any provision give any third person any right of
subrogation or action over or against any party to this Agreement.

         14.7     Pronouns; Statutory References. All pronouns and all
variations thereof shall be deemed to refer to the masculine, feminine, or
neuter, singular or plural, as the context in which they are used may require.
Any reference to the Code, the Regulations, the Act or other statutes or laws
will include all amendments, modifications, or replacements of the specific
sections and provisions concerned.

         14.8     Headings. All headings herein are inserted only for
convenience and ease of reference and are not to be considered in the
construction or interpretation of any provision of this Agreement.

         14.9     Interpretation. In the event any claim is made by any Member
relating to any conflict, omission or ambiguity in this Agreement, no
presumption or burden of proof or persuasion shall be implied by virtue of the
fact that this Agreement was prepared by or at the request of a particular
Member or its counsel.

         14.10    References to this Agreement. Numbered or lettered articles,
sections and subsections herein contained refer to articles, sections and
subsections of this Agreement unless otherwise expressly stated.

         14.11    Jurisdiction. Each Member hereby consents to the exclusive
jurisdiction of the state and federal courts sitting in Delaware in any action
on a claim arising out of, under or in connection with this Agreement or the
transactions contemplated by this Agreement. Each Member further agrees that
personal jurisdiction over it, him or her may be effected by service of process
by registered or certified mail addressed as provided in SECTION 14.14 of this
Agreement, and that when so made shall be as if served upon it, him or her
personally within the Member's state of residence.

         14.12    Exhibits. All Exhibits attached to this Agreement are
incorporated and shall be treated as if set forth herein.

         14.13    Additional Documents and Acts. Each Member agrees to execute
and deliver such additional documents and instruments and to perform such
additional commercially reasonable acts as may be necessary or appropriate to
effectuate, carry out and perform all of the terms, provisions, and conditions
of this Agreement and the transactions contemplated hereby.

                                      30
<PAGE>   37

         14.14    Notices.

                  A.       All notices required or permitted shall be in
writing and may be communicated in person, by recognized national overnight
delivery service or by mail. Notice shall be deemed to be delivered three (3)
business days after being deposited in the United States mail addressed to the
respective Member at its mailing address as designated in the records of the
Membership, with postage thereon prepaid, registered or certified mail, return
receipt requested, or if personally delivered or sent by overnight delivery
service, when received. Notices to a dissolved or bankrupt Member shall be
delivered in the same manner to the last known address of its registered agent
or receiver, as the case may be.

                  B.       While all notices, demands and requests shall be
effective as provided in SECTION 14.4A above, the time period in which a
response to any such notice, demand or request must be given shall commence to
run from the date of receipt appearing on the return receipt or other evidence
of delivery of the notice, and the time period in which a response to a demand
or request must be given shall commence to run from the date of receipt on the
return receipt or other evidence of delivery of the notice. Rejection or other
refusal to accept or the inability to deliver because of changed address of
which no notice was given shall be deemed to be receipt of the notice, demand
or request sent.

                  C.       By giving to the other Members at least thirty (30)
days' prior written notice thereof, each Member and its successors and assigns
shall have the right from time to time and at any time during the term of this
Agreement to change their addresses and each shall have the right to specify as
its address any other address within the United States of America.

         14.15    Amendments. All amendments to this Agreement must be in
writing and signed by all of the Members.

         14.16    Reliance on Authority of Person Signing Agreement If a Member
is not a natural person, neither the Company nor any Member will: (A) be
required to determine the authority of the individual signing this Agreement to
make any commitment or undertaking on behalf of such entity or to determine any
fact or circumstance bearing upon the existence of the authority of such
individual; or (B) be responsible for the application or distribution of
proceeds paid or credited to individuals signing this Agreement on behalf of
such entity.

         14.17    Company Property. All property contributed to the Company or
acquired with Company funds shall be held and titled in the name of the Company
and not individually by or for any Member.

         14.18    Multiple Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same instrument.

         14.19    Attorney's Fees. In the event that any dispute between the
Company and the Members or among the Members should result in litigation or
arbitration, the prevailing party in such dispute shall be entitled to recover
from the other party all reasonable fees, costs and expenses of enforcing any
right of the prevailing party, including without limitation, reasonable
attorneys' fees and expenses, all of which shall be deemed to have accrued upon
the commencement of such action and shall be paid whether or not such action is
prosecuted to judgment. Any judgment or order entered in such action shall
contain a specific provision providing for the recovery of attorney's fees and
costs incurred in enforcing such judgment and an award of prejudgment interest
from the date of the breach at the maximum rate of interest allowed by law. For
the purposes of this Section: (a) attorney's fees shall include, without
limitation, fees incurred in the following: (1) postjudgment motions; (2)
contempt proceedings; (3) garnishment, levy, and debtor and third-party
examinations; (4) discovery; and (5) bankruptcy litigation; and (b) prevailing
party shall mean the party which is determined in the proceeding to have
prevailed or which prevails by dismissal, default or otherwise.

                                      31
<PAGE>   38

         14.20    Time is of the Essence. All dates and times in this Agreement
are of the essence.

         14.21    Remedies Cumulative. The remedies under this Agreement are
cumulative and shall not exclude any other remedies to which any Party may be
lawfully entitled.

         14.22    Severability. Each article, section, subsection, and lesser
section of this Agreement constitutes a separate and distinct undertaking,
covenant or provision hereof. In the event that any provision of this Agreement
shall be determined to be invalid or unenforceable, such provision shall be
deemed limited by construction in scope and effect to the minimum extent
necessary to render the same valid and enforceable, and, in the event such a
limiting construction is impossible, such invalid or unenforceable provision
shall be deemed severed from this Agreement, but every other provision of this
Agreement shall remain in full force and effect.

         14.23    Partition. The Members hereby agree that no Members, nor any
successor in interest of any Members, shall have the right to have Company
assets partitioned, or to file a complaint or institute any proceedings of law
or equity to have a Company asset partitioned, and each Member, on behalf of
itself, its successors and assigns, hereby waives any such rights.

         14.24    No Waiver. The failure of any Member to insist upon strict
performance of a covenant hereunder or any obligation hereunder shall not be a
waiver of such Member's right to demand compliance therewith in the future.

         14.25    No Denigration. No Member shall denigrate or cause the
denigration of any other Member, the MHI Principals, ISI, the Proprietary Mark
or the Restaurants and shall not take any other action that is harmful or
potentially harmful to or which disparages, ridicules or demeans the goodwill
or reputation of any of the foregoing.

         14.26    Contingency. This Operating Agreement and the Sublicense
Agreement are contingent upon the parties reaching agreement, within ninety
(90) days of the execution of this Operating Agreement, on the final design of
the Restaurant and the use of Licensed Marks pursuant to the Sublicense
Agreement. The parties agree to cooperate and negotiate in good faith to reach
such agreement. In the event the parties cannot reach agreement on the final
design of the Restaurant and the use of the Licensed Marks within such time
period, Outback shall have the right and option to terminate this Operating
Agreement and the Sublicense Agreement by giving written notice of termination
to CHC within said ninety (90) day period. Upon such termination all fees paid
by Outback to CHC and MHI pursuant to this Operating Agreement and the
Sublicense Agreement shall be immediately refunded to Outback and thereafter
the parties shall have no further rights or obligations under this Operating
Agreement or the Sublicense Agreement.

         All of the Members of OUTBACK/CHEESEBURGER IN PARADISE, LLC, a
Delaware limited liability company, have executed this Agreement, effective as
of the date written above.

ATTEST                                  MEMBERS:

                                        "OUTBACK"
                                        OS TROPICAL, INC.,
                                        a Florida corporation

By:                                  By:
   -------------------------------      ---------------------------------------
   Joseph J. Kadow, Secretary           Chris Sullivan, Chief Executive Officer

                                      32
<PAGE>   39

                                        "CHC"
                                        CHEESEBURGER HOLDINGS, LLC, a Delaware
                                        limited liability company

                                               By:
                                                  -----------------------------

                                               Title:
                                                     --------------------------

                                      33
<PAGE>   40

                      CONSENT OF OUTBACK STEAKHOUSE, INC.

         The undersigned, the sole shareholder of OS TROPICAL, INC.,
("Outback") which is a member in CHEESEBURGER IN PARADISE, LLC, a Delaware
limited liability company hereby agrees to be bound by and comply with the
provisions of that certain Operating Agreement of CHEESEBURGER IN PARADISE, LLC
(the "Agreement") expressly stated to be applicable to it in its capacity as
the parent of Outback or as otherwise expressly provided in the Agreement. The
undersigned agrees, solely for the benefit of CHC, MHI and the MHI Principals,
to be responsible for Outback's performance of its duties under this Agreement.

DATED this 12th day of October, 2000.

ATTEST                               OUTBACK STEAKHOUSE, INC.,
                                     a Delaware corporation

By:                                  By:
   -------------------------------      ---------------------------------------
Joseph J. Kadow, Secretary              Chris Sullivan, Chief Executive Officer

                                      34
<PAGE>   41

                           CONSENT OF MHI PRINCIPALS

         Jimmy Buffett and John Cohlan, being members in MARGARITAVILLE
HOLDINGS, LLC which is the sole member of CHEESEBURGER HOLDINGS, LLC a member
in CHEESEBURGER IN PARADISE, LLC, a Delaware limited liability company, hereby
agree to be bound by, and comply with the provisions of that certain Operating
Agreement of CHEESEBURGER IN PARADISE, LLC (the "Agreement") expressly stated
to be applicable to them in their individual capacity, as members of
Margaritaville Holdings, LLC, or as "MHI Principals" (as such term is defined
in the Agreement) or as otherwise expressly provided in the Agreement.

DATED this 12th day of October, 2000.

WITNESSES:

---------------------------------               -------------------------------
---------------------------------               JIMMY BUFFETT

---------------------------------               -------------------------------
---------------------------------               JOHN COHLAN

                                      35
<PAGE>   42

                                   EXHIBIT A

MEMBERS:

OS Tropical, Inc.                           CHEESEBURGER HOLDINGS, LLC.
2202 North Westshore Boulevard              256 Worth Avenue
Suite 500                                   Suite Q
Tampa, Florida  33607                       Palm Beach, Florida  33480

COMMITTEE MEMBERS:

    Outback Appointees:                     CHC Appointees:
       Chris Sullivan                         Jimmy Buffett
       Bob Basham                             John Cohlan
       Mike O'Donnell

ADDRESS FOR OUTBACK APPOINTEES:             ADDRESS FOR CHC APPOINTEES:

2202 North Westshore Boulevard              256 Worth Avenue
Suite 500                                   Suite Q
Tampa, Florida  33607                       Palm Beach, Florida  33480

                                      36

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