Document:

ESCROW
      AGREEMENT

     

    This
      Escrow Agreement (this “Agreement”) is entered into as of December 18, 2007, by
      and between UFood Restaurant Group, Inc., a Nevada corporation (the “Company”),
      and Gottbetter & Partners, LLP (the “Escrow Agent”).

     

    WHEREAS,
      pursuant to an Agreement and Plan of Merger and Reorganization (the “Merger
      Agreement”) among the Company, a wholly-owned subsidiary of the Company
      (“Acquisition Corp.”) and KnowFat Franchise Company, Inc., a Delaware
      corporation (“KnowFat”), KnowFat and Acquisition Corp. have merged (the
“Merger”), with KnowFat being the surviving corporation in the
      Merger;

     

    WHEREAS,
      as contemplated by the Merger Agreement, the Company has engaged in a private
      placement of units (“Units”) of securities of the Company;

     

    WHEREAS,
      the Company agreed to use the net proceeds from the sale of the Units for
      purposes described under the “Use of Proceeds” section of the Confidential
      Private Placement Memorandum dated October 17, 2007, including applying
      $1,000,000 from the net proceeds for public and investor relations
      programs;

     

    WHEREAS,
      the parties hereto desire to establish an escrow account to provide for the
      safekeeping of the Escrowed Funds (as defined herein) until such time as the
      Escrowed Funds are released by the Escrow Agent in accordance with the terms
      and
      conditions of this Agreement.

     

    All
      capitalized terms used but not defined herein shall have the meanings ascribed
      thereto in the Merger Agreement and the other Transaction
      Documentation.

     

    NOW,
      THEREFORE, the parties hereto hereby agree as follows:

     

    1. At
      the
      First Closing, the Company shall cause to be deposited $1,000,000 (the “Escrowed
      Funds”) with the Escrow Agent pursuant to the following wiring
      instructions:

    

      
        	
                Bank:

              	 	
                Citibank,
                  N.A.

              
	
              	 	
                330
                  Madison Avenue, New York, New York

              
	
                ABA
                  Routing #:

              	 	
                021000089

              
	
                Swift
                  Code:

              	 	
                CITIUS33

              
	
                Beneficiary:

              	 	
                Gottbetter
                  & Partners, LLP, Attorney Trust Account

              
	
                Account
                  #:

              	 	
                49061322

              
	
                Reference:

              	 	
                “UFood
                  Restaurant Group, Inc. - IR Funds”

              
	 	 	 
	
                Gottbetter
                  & Partners Accounting Contact:

              	 	
              
	
                Vincent
                  DiPaola; telephone: (212) 400-6900; e-mail:
                  vdp@gottbetter.com.

              

      

    

    

    2. The
      Company agrees that the Escrowed Funds shall be held in escrow by the Escrow
      Agent pursuant to this Agreement for its benefit as set forth herein and that
      the Escrow Funds shall be used to retain the services of public and investor
      relations firms.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. The
      Escrow Agent shall hold and release the Escrowed Funds only in accordance with
      the terms and conditions of this Agreement. 

     

    4. Subject
      to the provisions of Section 6 herein, the Escrow Agent shall release the
      Escrowed Funds as follows: 

     

    (a) All
      funds
      shall be delivered pursuant to written instructions substantially in the form
      of
Exhibit
      A
      hereto
      (the “Instructions”) signed by the Company.

     

    (b) Notwithstanding
      the above, upon receipt by the Escrow Agent of a final and non-appealable
      judgment, order, decree or award of a court of competent jurisdiction (a “Court
      Order”), the Escrow Agent shall deliver the Escrowed Funds in accordance with
      the Court Order. Any Court Order shall be accompanied by an opinion of counsel
      for the party presenting the Court Order to the Escrow Agent (which opinion
      shall be satisfactory to the Escrow Agent) to the effect that the court issuing
      the Court Order has competent jurisdiction and that the Court Order is final
      and
      non-appealable.

     

    (c) The
      Company acknowledges that the only terms and conditions upon which the Escrowed
      Funds are to be released are set forth in this Agreement. The Company reaffirms
      its agreement to abide by the terms and conditions of this Agreement with
      respect to the release of the Escrowed Funds. Any dispute with respect to the
      release of the Escrowed Funds shall be resolved pursuant to Section 6 herein
      or
      by agreement between the parties.

     

    5. The
      Escrow Agent’s duties and responsibilities shall be subject to the following
      terms and conditions: 

     

    (a) The
      Company acknowledges and agrees that the Escrow Agent (i) shall not be
      responsible for or bound by, and shall not be required to inquire into whether
      the Company is entitled to receipt of the Escrowed Funds pursuant to any other
      agreement or otherwise; (ii) shall be obligated only for the performance of
      such
      duties as are specifically assumed by the Escrow Agent pursuant to this
      Agreement; (iii) may rely on and shall be protected in acting or refraining
      from
      acting upon any written notice, instruction, instrument, statement, request
      or
      document furnished to it hereunder and believed by the Escrow Agent in good
      faith to be genuine and to have been signed or presented by the proper person
      or
      party, without being required to determine the authenticity or correctness
      of
      any fact stated therein or the propriety or validity or the service thereof;
      (iv) may assume that any person believed by the Escrow Agent in good faith
      to be
      authorized to give notice or make any statement or execute any document in
      connection with the provisions hereof is so authorized; (v) shall not be under
      any duty to give the property held by Escrow Agent hereunder any greater degree
      of care than the Escrow Agent gives its own similar property, but in no event
      less than a reasonable amount of care; and (vi) may consult with counsel
      satisfactory to the Escrow Agent, the opinion of such counsel to be full and
      complete authorization and protection in respect of any action taken, suffered
      or omitted by the Escrow Agent hereunder in good faith and in accordance with
      the opinion of such counsel.

     

    (b) The
      Company acknowledges that the Escrow Agent is acting solely as a stakeholder
      at
      its request and that the Escrow Agent shall not be liable for any action taken
      by Escrow Agent in good faith and believed by the Escrow Agent to be authorized
      or within the rights or powers conferred upon the Escrow Agent by this
      Agreement. The Company agrees to indemnify and hold harmless the Escrow Agent
      and any of the Escrow Agent’s partners, employees, agents and representatives
      for any action taken or omitted to be taken by the Escrow Agent or any of them
      hereunder, including the fees of outside counsel and other costs and expenses
      of
      defending itself against any claim or liability under this Agreement, except
      in
      the case of gross negligence or willful misconduct on the part of the Escrow
      Agent committed in its capacity as Escrow Agent under this Agreement. The Escrow
      Agent shall owe a duty only to the Company under this Agreement and to no other
      person.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c) The
      Company agrees to reimburse the Escrow Agent for outside counsel fees, to the
      extent authorized hereunder and incurred in connection with the performance
      of
      its duties and responsibilities hereunder.

     

    (d) The
      Escrow Agent may at any time resign as Escrow Agent hereunder by giving five
      (5)
      days prior written notice of resignation to the Company. Prior to the effective
      date of the resignation as specified in such notice, the Company will issue
      to
      the Escrow Agent an instruction authorizing delivery of the Escrowed Funds
      to a
      substitute escrow agent selected by the Company. If no successor escrow agent
      is
      named by the Company, the Escrow Agent may apply to a court of competent
      jurisdiction in the State of New York for appointment of a successor escrow
      agent, and to deposit the Escrowed Funds with the clerk of any such
      court.

     

    (e) The
      Escrow Agent does not have and will not have any interest in the Escrowed Funds,
      but is serving only as escrow agent in connection therewith, having only
      possession thereof.

     

    (f) This
      Agreement sets forth exclusively the duties of the Escrow Agent with respect
      to
      any and all matters pertinent thereto and no implied duties or obligations
      shall
      be read into this Agreement.

     

    (g) The
      provisions of this Agreement shall survive the resignation of the Escrow Agent
      or the termination of this Agreement.

     

    6. Resolution
      of disputes arising under this Agreement shall be subject to the following
      terms
      and conditions:

     

    (a) If
      any
      dispute shall arise with respect to the delivery, ownership, right of possession
      or disposition of the Escrowed Funds, or if the Escrow Agent shall in good
      faith
      be uncertain as to its duties or rights hereunder, the Escrow Agent shall be
      authorized, without liability to anyone, to (i) refrain from taking any action
      other than to continue to hold the Escrowed Funds pending receipt of an
      Instruction from the Company, or (ii) deposit the Escrowed Funds with any court
      of competent jurisdiction in the State of New York, in which event the Escrow
      Agent shall give written notice thereof to the Company and shall thereupon
      be
      relieved and discharged from all further obligations pursuant to this Agreement.
      The Escrow Agent may, but shall be under no duty to, institute or defend any
      legal proceedings which relate to the Escrowed Funds. The Escrow Agent shall
      have the right to retain counsel if it becomes involved in any disagreement,
      dispute or litigation on account of this Agreement or otherwise determines
      that
      it is necessary to consult counsel.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) The
      Escrow Agent is hereby expressly authorized to comply with and obey any Court
      Order. In case the Escrow Agent obeys or complies with a Court Order, the Escrow
      Agent shall not be liable to the Company or to any other person, firm,
      corporation or entity by reason of such compliance.

     

    7. The
      escrow established hereby shall terminate upon the delivery by the Escrow Agent
      of all of the Escrowed Funds in accordance with this Agreement.

     

    8. The
      Escrowed Funds shall neither be held in an interest bearing account nor will
      interest be payable in connection therewith. 

     

    9. Notices.
      All
      notices, instructions and other communications given hereunder or in connection
      herewith shall be in writing. Any such notice, instruction or communication
      shall be sent either (i) by registered or certified mail, return receipt
      requested, postage prepaid, or (ii) via a reputable nationwide overnight
      courier service, in each case to the address set forth below. Any such notice,
      instruction or communication shall be deemed to have been delivered five
      business days after it is sent by registered or certified mail, return receipt
      requested, postage prepaid, or one business day after it is sent via a reputable
      nationwide overnight courier service.

     

    If
      to the
      Company:

    

    UFood
      Restaurant Group, Inc.

    255
      Washington Street, Suite 100

    Newton,
      MA 02458

    Attn:
      George Naddaff, Chief Executive Officer

    Facsimile:
      (617) 787-6010

    

    with
      a
      copy to (which shall not constitute notice hereunder):

    

    Robinson
      & Cole LLP

    695
      East
      Main Street

    Stamford,
      CT 06904

    Attn:
      Richard A. Krantz, Esq.

    Facsimile:
      (203) 462-7599

    

    If
      to the
      Escrow Agent:

    

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue, 12th
      Floor

    New
      York,
      NY 10022

    Attn:
      Adam S. Gottbetter, Esq.

    Facsimile:
      (212) 400-6901

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    Any
      party
      may give any notice, instruction or communication in connection with this
      Agreement using any other means (including personal delivery, telecopy or
      ordinary mail), but no such notice, instruction or communication shall be deemed
      to have been delivered unless and until it is actually received by the party
      to
      whom it was sent. Any party may change the address to which notices,
      instructions or communications are to be delivered by giving the other parties
      to this Agreement notice thereof in the manner set forth in this
      Section 9.

     

    10. General.

     

    (a) Governing
      Law; Assigns.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York without regard to conflict-of-law principles
      and
      shall be binding upon, and inure to the benefit of, the parties hereto and
      their
      respective successors and assigns.

     

    (b) 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.

     

    (c) Entire
      Agreement.
      This
      Agreement constitutes the entire understanding and agreement of the parties
      with
      respect to the subject matter of this Agreement and supersedes all prior
      agreements or understandings, written or oral, between the parties with respect
      to the subject matter hereof.

     

    (d) Waivers.
      No
      waiver by any party hereto of any condition or of any breach of any provision
      of
      this Agreement shall be effective unless in writing. No waiver by any party
      of
      any such condition or breach, in any one instance, shall be deemed to be a
      further or continuing waiver of any such condition or breach or a waiver of
      any
      other condition or breach of any other provision contained herein.

     

    (e) Amendment.
      This
      Agreement may be amended only with the written consent of the Company and the
      Escrow Agent.

     

    (f) Consent
      to Jurisdiction and Service.
      The
      parties hereby absolutely and irrevocably consent and submit to the jurisdiction
      of the courts in the State of New York and of any federal court located in
      the
      State of New York in connection with any actions or proceedings brought against
      any party hereto by the Escrow Agent arising out of or relating to this
      Agreement. In any such action or proceeding, the parties hereby absolutely
      and
      irrevocably waive personal service of any summons, complaint, declaration or
      other process and hereby absolutely and irrevocably agree that the service
      thereof may be made by certified or registered first-class mail directed to
      such
      party, at their respective addresses in accordance with Section 9
      hereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	
              UFOOD
                RESTAURANT GROUP, INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              George Naddaff
	 	
              

              Name: George
                Naddaff

              Title: Chief
                Executive Officer

            

    

     

    
      	 	 	 
	 	GOTTBETTER & PARTNERS,
              LLP
	 
 	 
 	 
 
	
            	By:  	/s/
              Adam
              Gottbetter
	 	
              

              Name: Adam
                S. Gottbetter

              Title: Partner

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    Form
      of Instructions

    

    

    Mr.
      Adam
      S. Gottbetter

    Gottbetter
      & Partners, LLP

    488
      Madison Ave., 12th Floor

    New
      York,
      NY 10022-5718

    Phone:
      212-400-6900

    Facsimile:
      212-400-6901

    

    Re: UFood
      Restaurant Group, Inc.

    

    Dear
      Mr.
      Gottbetter:

    

    With
      respect to the Escrow Agreement by and between UFood Restaurant Group, Inc.
      and
      Gottbetter & Partners, LLP, as escrow agent, we hereby authorize the release
      of the Escrowed Funds to the following public and investor relations
      firms:

    

      
        	
                Name
                  of Firm

              	 	
                Amount

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

      

    

     

      	 	 	 
	 	UFOOD RESTAURANT GROUP,
              INC.
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name: George
                Naddaff

              Title: Chief
                Executive OfficerESCROW
      AGREEMENT

     

    This
      Escrow Agreement (this “Agreement”) is entered into as of December 18, 2007, by
      and among UFood Restaurant Group, Inc., formerly known as UFood Franchise
      Company, a Nevada corporation (the “Parent”), George Naddaff (“Naddaff”), Eric
      Spitz (“Spitz”) (Naddaff and Spitz shall be referred to individually as an
“Indemnification Representative” and collectively as the “Indemnification
      Representatives”) and Gottbetter & Partners, LLP (the “Escrow
      Agent”).

     

    WHEREAS,
      the Parent has entered into an Agreement and Plan of Merger and Reorganization
      (the “Merger Agreement”) with KnowFat Franchise Company, Inc., a Delaware
      corporation (the “Company”), (i) pursuant to which a wholly-owned subsidiary of
      the Parent will merge with and into the Company, with the Company surviving
      the
      merger and (ii) as a result of which the Company will become a wholly-owned
      subsidiary of the Parent;

     

    WHEREAS,
      the Merger Agreement provides that an escrow account will be established to
      secure the indemnification obligations of the stockholders of the Company as
      of
      the Closing Date, as such term is defined in the Merger Agreement (collectively,
      the “Indemnifying Stockholders”), to the Parent; and

     

    WHEREAS,
      the parties hereto desire to establish the terms and conditions pursuant to
      which such escrow account will be established and maintained.

     

    NOW,
      THEREFORE, the parties hereto hereby agree as follows:

     

    1. Consent
      of Company Stockholders.
      The
      Indemnifying Stockholders have, either by virtue of their approval of the Merger
      Agreement or through the execution of an instrument to such effect, consented
      to: (a) the establishment of this escrow to secure the Indemnifying
      Stockholders’ indemnification obligations under Article 6 of the Merger
      Agreement in the manner set forth herein, (b) the appointment of the
      Indemnification Representatives as their representatives for purposes of this
      Agreement and as attorneys-in-fact and agent for and on behalf of each
      Indemnifying Stockholder, and the taking by the Indemnification Representatives
      of any and all actions and the making of any decisions required or permitted
      to
      be taken or made by them under this Agreement and (c) all of the other
      terms, conditions and limitations in this Agreement.

     

    2. Escrow
      and Indemnification.

     

    (a) Escrow
      of Shares.
      Simultaneously with the execution of this Agreement, the Parent shall deposit
      with the Escrow Agent certificates representing an aggregate of 575,049 shares
      of common stock of the Parent, as determined pursuant to Section 1.5(b) of
      the Merger Agreement, or such other number as adjusted pursuant to Section
      1.8(e) of the Merger Agreement issued in the name of the Escrow Agent or its
      nominee. The Escrow Agent hereby acknowledges receipt of such stock
      certificates. The shares deposited with the Escrow Agent pursuant to the first
      sentence of this Section 2(a) are referred to herein as the “Escrow
      Shares.” The Escrow Shares shall be held as a trust fund and shall not be
      subject to any lien, attachment, trustee process or any other judicial process
      of any creditor of any party hereto. The Escrow Agent agrees to hold the Escrow
      Shares in an escrow account (the “Escrow Account”), subject to the terms and
      conditions of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Indemnification.
      The
      Indemnifying Stockholders have agreed in Section 6.1 of the Merger Agreement
      to
      indemnify and hold harmless the Parent from and against certain Damages (as
      defined in Section 6.1 of the Merger Agreement). The Escrow Shares shall be
      (i)
      security for such indemnity obligation of the Indemnifying Stockholders, subject
      to the limitations, and in the manner provided, in this Agreement and the Merger
      Agreement and (ii) shall be the exclusive means for the Parent to collect any
      Damages with respect to which the Parent is entitled to indemnification under
      Article VI of the Merger Agreement.

     

    (c) Dividends,
      Etc.
      Any
      securities distributed in respect of or in exchange for any of the Escrow
      Shares, whether by way of stock dividends, stock splits or otherwise, shall
      be
      issued in the name of the Escrow Agent or its nominee and shall be delivered
      to
      the Escrow Agent, who shall hold such securities in the Escrow Account. Such
      securities shall be considered Escrow Shares for purposes hereof. Any cash
      dividends or property (other than securities) distributed in respect of the
      Escrow Shares shall promptly be distributed by the Escrow Agent to the
      Indemnifying Stockholders in accordance with Section 3(c).

     

    (d) Voting
      of Shares.
      The
      Indemnification Representatives shall have the right, in their sole discretion,
      on behalf of the Indemnifying Stockholders, to direct the Escrow Agent in
      writing as to the exercise of any voting rights pertaining to the Escrow Shares,
      and the Escrow Agent shall comply with any such written instructions. In the
      absence of such instructions, the Escrow Agent shall not vote any of the Escrow
      Shares. The Indemnification Representatives shall have no obligation to solicit
      consents or proxies from the Indemnifying Stockholders for purposes of any
      such
      vote.

     

    (e) Transferability.
      The
      respective interests of the Indemnifying Stockholders in the Escrow Shares
      shall
      not be assignable or transferable, other than by operation of law. Notice of
      any
      such assignment or transfer by operation of law shall be given to the Escrow
      Agent and the Parent, and no such assignment or transfer shall be valid until
      such notice is given.

     

    3. Distribution
      of Escrow Shares.

     

    (a) The
      Escrow Agent shall distribute the Escrow Shares only in accordance with (i)
      a
      written instrument delivered to the Escrow Agent that is executed by both the
      Parent and the Indemnification Representatives and that instructs the Escrow
      Agent as to the distribution of some or all of the Escrow Shares, (ii) an
      order of a court of competent jurisdiction, a copy of which is delivered to
      the
      Escrow Agent by either the Parent or the Indemnification Representative, that
      instructs the Escrow Agent as to the distribution of some or all of the Escrow
      Shares, or (iii) the provisions of Section 3(b) hereof.

     

    (b) Within
      five business days after December 17, 2009 (the “Termination Date”), the Escrow
      Agent shall distribute to the Indemnifying Stockholders all of the Escrow Shares
      then held in escrow, registered in the names of the Indemnifying Stockholders.
      Notwithstanding the foregoing, if the Parent has previously delivered to the
      Escrow Agent a copy of a Claim Notice (as hereinafter defined) and the Escrow
      Agent has not received written notice of the resolution of the claim covered
      thereby, or if the Parent has previously delivered to the Escrow Agent a copy
      of
      an Expected Claim Notice (as hereinafter defined) and the Escrow Agent has
      not
      received written notice of the resolution of the anticipated claim covered
      thereby, the Escrow Agent shall retain in escrow after the Termination Date
      such
      number of Escrow Shares as have a Value (as defined in Section 4 below)
      equal to the Claimed Amount (as hereinafter defined) covered by such Claim
      Notice or equal to the estimated amount of Damages set forth in such Expected
      Claim Notice, as the case may be. Any Escrow Shares so retained in escrow shall
      be distributed only in accordance with the terms of clauses (i) or (ii) of
      Section 3(a) hereof. For purposes of this Agreement, a Claim Notice means a
      written notification under the Merger Agreement given by the Parent to the
      Indemnifying Stockholders which contains (i) a description and the amount (the
      “Claimed Amount”) of any Damages incurred or reasonably expected to be incurred
      by the Parent, (ii) a statement that the Parent is entitled to indemnification
      under Article 6 of the Merger Agreement for such Damages and a reasonable
      explanation of the basis therefor, and (iii) a demand for payment (in the manner
      provided in Section 9.7 of the Merger Agreement) in the amount of such Damages.
      For purposes of this Agreement, an Expected Claim Notice means a notice
      delivered pursuant to the Merger Agreement by the Parent to an Indemnifying
      Stockholder, before expiration of a representation or warranty, to the effect
      that, as a result a legal proceeding instituted by or written claim made by
      a
      third party, the Parent reasonably expects to incur Damages as a result of
      a
      breach of such representation or warranty.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c) Any
      distribution of all or a portion of the Escrow Shares (or cash or other property
      pursuant to Section 2(c)) to the Indemnifying Stockholders shall be made by
      delivery of stock certificates issued in the name of the Indemnifying
      Stockholders (or cash or other property), covering such percentage of the Escrow
      Shares (or cash or other property) being distributed as is calculated in
      accordance with the percentages set forth opposite such holders’ respective
      names on Attachment A
      attached
      hereto provided,
      however,
      that
      the Escrow Agent shall withhold the distribution of the portion of the Escrow
      Shares otherwise distributable to an Indemnifying Stockholder who has not,
      according to a written notice provided by the Parent to the Escrow Agent, prior
      to such distribution, surrendered pursuant to the terms of the Merger Agreement
      his, her or its documents formerly representing equity interests of the Company.
      Any such withheld shares shall be delivered to the Parent promptly after the
      Termination Date, and shall be delivered by the Parent to the Indemnifying
      Stockholders to whom such shares would have otherwise been distributed upon
      surrender of documents evidencing their Company equity interests. Distributions
      to the Indemnifying Stockholders shall be made by mailing stock certificates
      to
      such holders at their respective addresses shown on Attachment A
      (or such
      other address as may be provided in writing to the Escrow Agent by any such
      holder). No fractional Escrow Shares shall be distributed to Indemnifying
      Stockholders pursuant to this Agreement. Instead, the number of shares that
      each
      Indemnifying Stockholder shall receive shall be rounded up or down to the
      nearest whole number (provided that the Indemnification Representatives shall
      have the authority to effect such rounding in such a manner that the total
      number of whole Escrow Shares to be distributed equals the number of Escrow
      Shares then held in the Escrow Account).

     

    4. Valuation
      of Escrow Shares.
      For
      purposes of this Agreement, the “Value” of any Escrow Shares shall be $1.00 per
      share, multiplied by the number of such Escrow Shares.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5. Fees
      and Expenses of Escrow Agent.
      The
      Parent, on the one hand, and the Indemnifying Stockholders, on the other hand,
      shall each pay one-half of the fees of the Escrow Agent for the services to
      be
      rendered by the Escrow Agent hereunder. 

     

    6. Limitation
      of Escrow Agent’s Liability.

     

    (a) The
      Escrow Agent shall incur no liability with respect to any action taken or
      suffered by it in reliance upon any notice, direction, instruction, consent,
      statement or other documents believed by it to be genuine and duly authorized,
      nor for other action or inaction except its own willful misconduct or gross
      negligence. The Escrow Agent shall not be responsible for the validity or
      sufficiency of this Agreement. In all questions arising under the Escrow
      Agreement, the Escrow Agent may rely on the advice of counsel, and the Escrow
      Agent shall not be liable to anyone for anything done, omitted or suffered
      in
      good faith by the Escrow Agent based on such advice. The Escrow Agent shall
      not
      be required to take any action hereunder involving any expense unless the
      payment of such expense is made or provided for in a manner reasonably
      satisfactory to it. In no event shall the Escrow Agent be liable for indirect,
      punitive, special or consequential damages.

     

    (b) The
      Parent and the Indemnifying Stockholders agree to indemnify the Escrow Agent
      for, and hold it harmless against, any loss, liability or expense incurred
      without gross negligence or willful misconduct on the part of Escrow Agent,
      arising out of or in connection with its carrying out of its duties hereunder.
      The Parent, on the one hand, and the Indemnifying Stockholders, on the other
      hand, shall each be liable for one-half of such amounts.

     

    7. Liability
      and Authority of Indemnification Representatives; Successors and
      Assignees.

     

    (a) The
      Indemnification Representatives shall not incur any liability to the
      Indemnifying Stockholders with respect to any action taken or suffered by them
      in reliance upon any note, direction, instruction, consent, statement or other
      documents believed by them to be genuinely and duly authorized, nor for other
      action or inaction except their own willful misconduct or gross negligence.
      The
      Indemnification Representatives may, in all questions arising under the Escrow
      Agreement, rely on the advice of counsel and the Indemnification Representatives
      shall not be liable to the Indemnifying Stockholders for anything done, omitted
      or suffered in good faith by the Indemnification Representatives based on such
      advice.

     

    (b) In
      the
      event of the death or permanent disability of any Indemnification
      Representative, or his or her resignation as an Indemnification Representative,
      a successor Indemnification Representative shall be appointed by the other
      Indemnification Representative or, absent its appointment, a successor
      Indemnification Representative shall be elected by a majority vote of the
      Indemnifying Stockholders, with each such Indemnifying Stockholder (or his,
      her
      or its successors or assigns) to be given a vote equal to the number of votes
      represented by the shares of stock of the Company held by such Indemnifying
      Stockholder immediately prior to the effective time of the share purchase under
      the Merger Agreement. Each successor Indemnification Representative shall have
      all of the power, authority, rights and privileges conferred by this Agreement
      upon the original Indemnification Representative, and the term “Indemnification
      Representative” as used herein shall be deemed to include each successor
      Indemnification Representative.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) The
      Indemnification Representatives shall have full power and authority to represent
      the Indemnifying Stockholders, and their successors, with respect to all matters
      arising under this Agreement and Article 6 of the Merger Agreement and all
      actions taken by the Indemnification Representatives hereunder or under Article
      6 of the Merger Agreement shall be binding upon the Indemnifying Stockholders,
      and their successors, as if expressly confirmed and ratified in writing by
      each
      of them. Without limiting the generality of the foregoing, the Indemnification
      Representatives shall have full power and authority to interpret all of the
      terms and provisions of this Agreement, to compromise any claims asserted
      hereunder and to authorize any release of the Escrow Shares to be made with
      respect thereto, on behalf of the Indemnifying Stockholders and their
      successors. 

     

    (d) The
      Escrow Agent may rely on the Indemnification Representatives as the exclusive
      agents of the Indemnifying Stockholders under this Agreement and shall incur
      no
      liability to any party with respect to any action taken or suffered by it in
      good faith reliance thereon.

     

    8. Amounts
      Payable by Indemnifying Stockholders.
      The
      amounts payable by the Indemnifying Stockholders under this Agreement (i.e.,
      the
      fees of the Escrow Agent payable pursuant to Section 5 and the
      indemnification obligations pursuant to Section 6(b)) shall be payable
      solely as follows. The Escrow Agent shall notify the Indemnification
      Representatives of any such amount payable by the Indemnifying Stockholders
      as
      soon as it becomes aware that any such amount is payable, with a copy of such
      notice to the Parent. On the sixth business day after the delivery of such
      notice, the Escrow Agent shall sell such number of Escrow Shares (up to the
      number of Escrow Shares then available in the Escrow Account), subject to
      compliance with all applicable securities laws, as is necessary to raise such
      amount, and shall be entitled to apply the proceeds of such sale in satisfaction
      of such indemnification obligations of the Indemnifying Stockholders; provided
      that if the Parent delivers to the Escrow Agent (with a copy to the
      Indemnification Representatives), within five business days after delivery
      of
      such notice by the Indemnification Representatives, a written notice contesting
      the legitimacy or reasonableness of such amount, then the Escrow Agent shall
      not
      sell Escrow Shares to raise the disputed portion of such claimed amount except
      in accordance with the terms of clauses (i) or (ii) of
      Section 3(a).

     

    9. Termination.
      This
      Agreement shall terminate upon the distribution by the Escrow Agent of all
      of
      the Escrow Shares in accordance with this Agreement; provided that the
      provisions of Sections 6 and 7 shall survive such termination.

     

    10. Notices.
      All
      notices, instructions and other communications given hereunder or in connection
      herewith shall be in writing. Any such notice, instruction or communication
      shall be sent either (i) by registered or certified mail, return receipt
      requested, postage prepaid, or (ii) via a reputable nationwide overnight
      courier service, in each case to the address set forth below. Any such notice,
      instruction or communication shall be deemed to have been delivered five
      business days after it is sent by registered or certified mail, return receipt
      requested, postage prepaid, or one business day after it is sent via a reputable
      nationwide overnight courier service.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Parent:

    

    UFood
      Restaurant Group, Inc.

    255
      Washington Street, Suite 100

    Newton,
      MA 02458

    Attn:
      George Naddaff, Chief Executive Officer

    Facsimile:
      (617) 787-6010

    

    with
      a
      copy to (which shall not constitute notice hereunder):

    

    Robinson
      & Cole LLP

    695
      East
      Main Street

    Stamford,
      CT 06904

    Attn:
      Richard A. Krantz, Esq.

    Facsimile:
      (203) 462-7599

    

    If
      to the
      Indemnification Representatives:

    

    George
      Naddaff

    Eric
      Spitz

    c/o
      KnowFat Franchise Company, Inc.

    255
      Washington Street, Suite 100

    Newton,
      MA 02458

    Facsimile:
      (617) 787-6010

    

    If
      to the
      Escrow Agent:

    

    Gottbetter
      & Partners, LLP

    488
      Madison Avenue, 12th
      Floor

    New
      York,
      NY 10022

    Attn:
      Adam S. Gottbetter, Esq.

    Facsimile:
      (212) 400-6901

    

    Any
      party
      may give any notice, instruction or communication in connection with this
      Agreement using any other means (including personal delivery, telecopy or
      ordinary mail), but no such notice, instruction or communication shall be deemed
      to have been delivered unless and until it is actually received by the party
      to
      whom it was sent. Any party may change the address to which notices,
      instructions or communications are to be delivered by giving the other parties
      to this Agreement notice thereof in the manner set forth in this
      Section 10.

     

    11. Successor
      Escrow Agent.
      In the
      event the Escrow Agent becomes unavailable or unwilling to continue in its
      capacity herewith, the Escrow Agent may resign and be discharged from its duties
      or obligations hereunder by delivering a resignation to the parties to this
      Escrow Agreement, not less than 60 days prior to the date when such
      resignation shall take effect. The Parent may appoint a successor Escrow Agent
      without the consent of the Indemnification Representatives so long as such
      successor is a bank with assets of at least $500 million, and may appoint any
      other successor Escrow Agent with the consent of the Indemnification
      Representativse, which shall not be unreasonably withheld. If, within such
      notice period, the Parent provides to the Escrow Agent written instructions
      with
      respect to the appointment of a successor Escrow Agent and directions for the
      transfer of any Escrow Shares then held by the Escrow Agent to such successor,
      the Escrow Agent shall act in accordance with such instructions and promptly
      transfer such Escrow Shares to such designated successor. If no successor Escrow
      Agent is named as provided in this Section 11 prior to the date on which the
      resignation of the Escrow Agent is to properly take effect, the Escrow Agent
      may
      apply to a court of competent jurisdiction for appointment of a successor Escrow
      Agent.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    12. General.

     

    (a) Governing
      Law; Assigns.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York without regard to conflict-of-law principles
      and
      shall be binding upon, and inure to the benefit of, the parties hereto and
      their
      respective successors and assigns.

     

    (b) 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.

     

    (c) Entire
      Agreement.
      Except
      for those provisions of the Merger Agreement referenced herein, this Agreement
      constitutes the entire understanding and agreement of the parties with respect
      to the subject matter of this Agreement and supersedes all prior agreements
      or
      understandings, written or oral, between the parties with respect to the subject
      matter hereof.

     

    (d) Waivers.
      No
      waiver by any party hereto of any condition or of any breach of any provision
      of
      this Agreement shall be effective unless in writing. No waiver by any party
      of
      any such condition or breach, in any one instance, shall be deemed to be a
      further or continuing waiver of any such condition or breach or a waiver of
      any
      other condition or breach of any other provision contained herein.

     

    (e) Amendment.
      This
      Agreement may be amended only with the written consent of the Parent, the Escrow
      Agent and the Indemnification Representatives.

     

    (f) Consent
      to Jurisdiction and Service.
      The
      parties hereby absolutely and irrevocably consent and submit to the jurisdiction
      of the courts in the State of New York and of any Federal court located in
      the
      State of New York in connection with any actions or proceedings brought against
      any party hereto by the Escrow Agent arising out of or relating to this Escrow
      Agreement. In any such action or proceeding, the parties hereby absolutely
      and
      irrevocably waive personal service of any summons, complaint, declaration or
      other process and hereby absolutely and irrevocably agree that the service
      thereof may be made by certified or registered first-class mail directed to
      such
      party, at their respective addresses in accordance with Section 10
      hereof.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	UFOOD
              RESTAURANT GROUP, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Brent
              Hahn 
	 	
              
Name: Brent
              Hahn
	 	Title: President

    

    
      	 	 	 
	 	 
	
            	  	/s/ George
              Naddaff
	 	
              

              George
                Naddaff, in his capacity as an

              Indemnification
                Representative

            
	 	
            

    

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	
            	  	/s/ Eric
              Spitz
	 	
              

              Eric
                Spitz, in his capacity as an

              Indemnification
                Representative

            
	 	
            

      	 	 	 
	 	GOTTBETTER & PARTNERS, LLP
	 
 	 
 	 
 
	
            	By:  	/s/ Adam
              Gottbetter
	 	
              
Name: Adam
              S. Gottbetter, Esq.
	 	Title: Partner

    
      
        
        

      

      
        8

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