Document:

STORE OPERATING LICENSE AGREEMENT

                                  "DAIRY QUEEN"

                        STORE OPERATING LICENSE AGREEMENT

THIS  AGREEMENT  entered  into this 18th day of  November  1986 , by and between
DAIRY QUEEN OF  SOUTHERN  ARIZONA,  INC.,  an Arizona  corporation,  hereinafter
referred to as "Company",  and BOWLINS  INCORPORATED,  a New Mexico  Corporation
hereinafter referred to as "Licensee", "Store Owner", "Operator".

I. PREMISES OF THIS AGREEMENT.

     1.  Licensee  hereby  agrees  that  this  Agreement  is  premised  upon the
following of facts which are accepted, and specifically agreed upon by Licensee:

     a.  Company  is the  exclusive  Licensee  of Dairy  Queen in the  territory
comprising the subject matter of this Agreement  entitled to use,  license,  and
permit  others to use the  trademark  and trade name  "Dairy  Queen" and certain
other trademarks (hereinafter referred to as "derivative  trademarks") which are
derived  from the words "Dairy  Queen" or either of said words or  abbreviations
thereof, including by way of example and not limitation trademarks employing the
use of the word "Queen", the letters "Q" or "D.Q."; said "Dairy Queen" trademark
having been  registered  in the State of Arizona and in the United States Patent
Office as Registrations Nos. 728,531 and 728,894. This Agreement and undertaking
by Licensee  includes  every  single use or  derivation  of the  trademark,  the
method,  or mode of operation,  or any  information or material or items derived
therefrom.

     b. Company and its  predecessors  in interest have promoted,  developed and
established within said areas a franchise business under said exclusive license,
which  comprises  the selling of a frozen  and/or  semi-frozen  dairy product in
various forms  (including for example such items as buster and dilly bars) under
the trademark  "Dairy  Queen" from retail  stores  bearing the trade name "Dairy
Queen", has used the trademark "Dairy Queen" or freezers used in the preparation
of and  dispensing  of said product and has employed  certain  other  equipment,
items, designs, logos, promotional material,  merchandising methods, techniques,

                                        1
<PAGE>
standards,  requirements,  uniforms, supplies,  ingredients,  methods, and other
techniques,  which are to remain the specific  property of Company,  and,  after
this Agreement  ends, are to be returned to Company,  and for which Licensee has
no right to utilize said items.

     c. In entering this  Agreement,  Licensee  agrees that Licensee  desires to
engage in the "Dairy  Queen"  business  and  further  desires to enter into this
written  franchise  and  license  agreement  with  Company  for  the  use of the
trademark and trade name and any derivative  trademarks,  and to become involved
in a  business  subject  to the  covenants  set  forth  herein,  the  use of the
merchandising  methods  employed  herein,  said use by Licensee to be subject to
conditions  and controls  herein  prescribed for the purposes of offering to the
public  wholesome  products of a uniform  quality and standard and of protecting
the interest of all persons engaged in said business.

     d. That by entering this Agreement,  Licensee specifically agrees to become
subject to all regulations, policies, and standards as set forth by Company from
time to time.

     e. Further,  Licensee  agrees to provide only those  services and sell only
those products specifically approved and authorized by Company.

II. LICENSE.

     Company  hereby grants to Licensee,  subject to the terms,  conditions  and
provisions  hereof,  and  subject  to any  and all  policies  of  Company  to be
enunciated during the term of this Agreement,  and any which are in existence at
this time,  an exclusive  right and license to operate a "Dairy  Queen" Store at
the following location only:

     17 Miles East of Benson Arizona, on Interstate 10 at Johnson Road.

                                       -2-
<PAGE>
said license to include the rights to:

     1.  Establish  and operate a "Dairy  Queen" store  employing  "Dairy Queen"
merchandising  methods,  materials,  and using the trademark "Dairy Queen",  and
said derivative trademark on and in association with the advertising and sale of
the frozen dairy  products,  and the trade name "Dairy  Queen" on the said store
from which the product is sold, and further subject to the further provisions of
this Agreement.

     2. To use in said store only  approved  machines,  and items of any and all
kind approved by Company. As to freezers, "Dairy Queen" freezers must be used in
producing  and  dispensing  said  "Dairy  Queen"  products,   it  being  clearly
understood  and agreed by Licensee that no approved  "Dairy Queen" freezer shall
be moved or caused or permitted to be removed from said authorized  location for
the purpose of operating same.

     3. Use of the trademark "Dairy Queen" on said approved freezers produced by
authorized manufacturers.

     4. Use at the authorized location on, and in association with,  production,
packaging,  and sale of uniform and approved  products  and services  designated
periodically  by Company,  involving  the related sales  promotion  programs and
materials  approved  periodically by Company,  and utilizing any form equipment,
uniforms,  merchandising means, fixtures, supplies, ingredients, and other items
as  approved  by  Company  for  use  in  the  storage,  preparation,  packaging,
merchandising, and sale of such products.

III. LICENSEE'S ACCEPTANCE AND ACKNOWLEDGMENTS.

     1. Licensee  hereby accepts said License  subject to the terms,  provisions
and  conditions  hereof,  and  agrees to cause  one  "Dairy  Queen"  store to be
established and maintained at the

                                       -3-
<PAGE>
authorized location and agrees to provide active and continuous  supervision and
management  upon  standards  and  policies  as set by Company.  (Large  block of
material X'd out on original document) Initialed by AAB & MLH

     2.  Company is the  exclusive  licensee  of the right to use the  trademark
names  at the  location  for and in  which  the  within  franchise  and  license
agreement is operative, and has the exclusive right to grant to Licensee the use
of said trade names.

     3. The trade names and trademarks  have valuable  goodwill to Company,  and
are a valued property right, the use of which has been licensed to Company.

     4.  The  authorized  location,  the  Dairy  Queen  Store,  and  the  use of
trademarks  and only in  connection  with such  products as may be  specified by
Company and not  otherwise,  and shall at all times be used and only in a manner
approved by Company. In years of technological change, new products and services
are often developed.  It is the specific purpose of this Agreement,  that in the
event there are merchandising  changes,  technological  changes,  and changes in
merchandising,  the  approval of Company  must be  received in writing  prior to
offering any such goods, or service.  Otherwise, this Agreement will be declared
null and void. As a specific example of the purpose of this provision,  Licensee
agrees that it is the  purpose of this  Agreement  that  present  "Dairy  Queen"
products  are to be sold to  members of the  general  public  from  standardized
"Dairy Queen."

                                       -4-
<PAGE>
locations.  That the "Dairy Queen" locations are built for a specific purpose in
mind, and not for the use or sale or development of such specific items as video
games and arcades.  Such uses of the  premises  are not allowed  pursuant to the
terms of this Agreement, and Licensee hereby agrees to same.

     5. Licensee  shall use no trade name or trademark  other than "Dairy Queen"
in said business except with the written consent of Company. Similarly, Licensee
shall link no other  trademarks  or trade names  belonging to others with "Dairy
Queen" in a "Dairy Queen"  authorized  location.  For example,  Licensee is only
entitled to sell "Dairy  Queen"  products  or services at their  location.  They
cannot sell items of food, or otherwise, without the authorization of Company.

See Addendum 4A-1 (AAB & MLH)

     6. Licensee  specifically  agrees that this  Agreement , at the sole option
and  discretion of Company,  may be declared null and void if Licensee  breaches
any  provisions of this  Agreement,  and, if after having seven (7) days written
notice of breach by mail,  the  conditions  specified have not been corrected by
Licensee.  Then, Company,  at its own option, may terminate this Agreement.  See
Addendum 4A-II (AAB &MLH)

     7. Licensee  further and  specifically  agrees that under no  circumstances
breaches of this Agreement, whether continuing or otherwise, at any time, in any
way, be regarded as waived by Company.

     8. As to  Licensee's  obligations,  time is always of the  essence  in this
Agreement.

IV. TERM.

     1. The license  granted  herein  shall be for a term of 20 (Twenty)  years,
unless sooner terminated in accordance with the provisions hereof.

V. MONETARY AGREEMENTS.

     1. Licensee  shall pay to Company as a franchise  fee, the sum of Four (4%)
Percent (see attached  Addendum to "Dairy Queen"  License) upon the execution of
this Agreement. Said fee is a fee paid to Company for granting and entering into
this Agreement. Said fee is earned when paid, and is not refundable

                                       -5-
<PAGE>
under any circumstances whatsoever.

     b. All amounts due and owing shall be paid on a monthly  basis and shall be
computed at the end of each month's  operation and  remittance for same shall be
made to  Company  on or  before  the  third  (3rd)  day of the  following  month
accompanied by reports required by said Company.  The computation of said amount
shall be certified  and sworn to by Licensee in a manner or form  prescribed  by
Company  and   Licensee   shall  supply  to  Company  all   self-supporting   or
supplementary  materials  as Company may require to verify the  accuracy of such
remittances. Furthermore, Licensee grants to Company the right to check with any
suppliers, Company's or others, with whom Licensee is doing business to check on
the operation of the business .

     c.  Payment  dates as set forth  herein are  specifically  agreed to be the
dates upon which said items are to be received by the  Company.  Any payments of
any nature or kind received after the due date subjects Licensee to default. THE
ACCEPTANCE  OF LATE  PAYMENTS  SHALL NOT,  UNDER ANY  CIRCUMSTANCES  BE DEEMED A
WAIVER BY COMPANY OF THE RIGHT TO PROMPT AND APPROPRIATE  PAYMENT.  Any payments
received  after the eighth of any month  shall be subject to a late fee equal to
five (5%) percent of the amount of

                                       -6-
<PAGE>
said sum due. In  addition,  any sums paid after the eighth  shall be subject to
interest  at the  rate of one and  one-half  (1  1/2%)  percent  per  month.  In
addition,  Licensee  agrees to  compensate  Company  for any and all  collection
efforts or activities on any payments made after the due dates contained herein.
These expenses shall include office expenses,  telephone  expenses,  expenses of
time and effort of employees  to write  letters,  make phone calls,  and attempt
contact with Licensee or Licensee's  agents, and shall include any and all costs
and expenses in contacting  collection agencies,  lawyers, or other personnel in
an  attempt  to speed  payment.  The  amount  of any and all  expenses  shall be
determined by Company, in Company's sole discretion,  and Licensee hereby agrees
to grant Company the right to determine the amount of said expenses,  and hereby
agrees to be bound by said decision of Company. Any failures to pay said amounts
as set by  Company  shall  also  be  regarded  as a  breach  of  this  Agreement
subjecting Licensee to forfeiture, pursuant to page 18, Section XXII.

     d. In addition to any and all other options as required, or allowed by law,
or as  provided  in this  Agreement,  Company  shall  have the right to  require
Licensee,  if  delinquent  at any  time,  to make a  pre-payment  equal to three
month's royalties as security for the prompt payment of any and all obligations.

     e.  Company  shall  further  have the  option to require  Licensee  to make
pre-payments  on royalty and  advertising  and  merchandising  fees by requiring
Licensee to pay a surcharge  on each gallon of mix,  and on other  products  and
ingredients  used in the conduct of business at the  authorized  location to the
respective suppliers thereof.  Licensee shall pay the surcharge to the suppliers
at the -time of purchase of such commodities. The surcharge shall be established
by Company in such amounts as  determined  by Company,  which  amounts shall not
substantially   exceed  the  monthly  continuing   royalty,   advertising,   and
merchandising fees due hereunder. The surcharge shall be paid to the supplier or
suppliers for the account of the Company. The amount

                                       -7-
<PAGE>
so prepaid and remitted to Company from suppliers  will be credited  against the
continuing  license and  advertising and  merchandising  fees at the end of each
month.

     3.  Licensee  further  agrees to pay to Company the amount of not less than
three  (3%)  percent,  nor more  than  six (6%)  percent,  of all  gross  sales,
excluding sales taxes, as and for the promotion and advertising of "Dairy Queen"
products. To this end, Company reserves the sole right in its sole discretion to
establish and organize  advertising and promotional  programs from time to time.
Payments of  advertising  and  merchandising  fund money shall be subject to the
same terms and  conditions as royalty fee payments  required in this  Agreement.
See Addendum 4A-III attach 4. In addition,  Licensee agrees to spend  additional
monies in merchandising and marketing of their individual "Dairy Queen" store.

     4. In addition, Licensee agrees to spend additional monies in merchandising
and marketing of their individual "Dairy Queen" store.

VI. TRANSFER OF AGREEMENT.

     1. Company  reserves the right to know  specifically at all times with whom
Company is doing business. (AAB & MLH)

     2. Licensee shall not transfer,  assign,  encumber,  or in any way alienate
this  Agreement,  or the rights,  duties,  or  obligations  under this Agreement
without the written approval of Company.

     Licensee  shall give Company  written notice of intent to sell. Any attempt
to transfer,  assign,  sell, or alienate without the express written approval of
Company shall  immediately  breach this Agreement.  No party without the express
written  permission  of  Company  shall  have the  right to sell  "Dairy  Queen"
products at the location specified in this Agreement, or at any other location.

     3. If any sale,  transfer,  or  assignment  of any nature or kind is agreed
upon by Company,  Company is hereby given the right of first refusal to any such
agreed upon transfer or sale. Notwithstanding anything to the contrary contained
above in this part 2 hereof,  Licensee  hereby  grants to  Company  the right of
first refusal to purchase all of Licensee's right, title and

                                       -8-
<PAGE>
interest in and to Licensee's  "Dairy Queen" business  located at the Authorized
Location in this Agreement in the event Licensee should desire to sell the same.
In such event, Licensee shall notify Company in writing that he has received and
is prepared  to accept a good faith offer from a third party who is  financially
able and  otherwise  qualified to become a licensee of Company.  The said notice
shall  identify  proposed  purchaser  and be signed  by  Licensee  and  proposed
purchaser  and  precisely  set forth all of the terms of the written offer which
Licensee  shall have  received from the proposed  purchaser.  Company shall then
have thirty (30) days after the receipt of such notice to exercise  its right of
first refusal,  the same to be in writing and on the same terms and  conditions,
MINUS any  realtor's  fees,  as have been  offered to Licensee  by the  proposed
purchaser.

     4. In the event of any assignment agreed upon by Company Licensee shall pay
to  Company  contemporaneously   therewith  the  sum  of  TWO  THOUSAND  DOLLARS
($2,000.00) or a sum equal to one-half of the license fees paid for the previous
calendar year, whichever is greater, as and for a transfer fee.

     This Agreement may be transferred to any proposed new assignee, transferee,
or purchaser in it's  entirety:  Should  proposed new assignee,  transferee,  or
purchaser  desire  to  extend  the  duration  of,  or  modify  the terms of this
agreement  such  modification  would be  contingent  upon and subject to the new
party entering into a new agreement with Company.  if, for any reason,  Company,
and the proposed  assignee,  transferee,  or purchaser cannot agree to the terms
and  conditions of a new  contract,  then any attempt at  assignment,  transfer,
sale, no matter how enumerated, shall be void.

VII. DEATH OR DISABILITY.

     In the event of the  death,  disability  or  incapacity  of any  individual
Licensee or principal officer or director of an incorporated Licensee or partner
in a partnership Licensee,  should the decedent's heir or successor in interest,
or the corporation or partnership, as the case may be, wish to continue

                                       -9-
<PAGE>
as Licensee  hereunder,  such person shall apply for Company's  consent thereto,
successfully complete Company's training program and pay the applicable transfer
fee, in accordance with this paragraph VII as in any case of a proposed transfer
of Licensee's interest in this agreement.

VIII. BUSINESS NAME.

     Licensee shall not use the word "Dairy Queen" as a part of its corporate or
business  name unless first  approved in writing by Company,  and shall use only
the words "Dairy Queen" (and no other words whatsoever) as the trade name on the
store from which the product is sold. See Addendum 4A-1.

IX. FURTHER LICENSEE DECLARATIONS.

     1. Licensee agrees that nothing contained herein gives him any right, title
or interest in the trademark and trade name "Dairy Queen" nor in said derivative
trademarks  except the right to use same under the terms and  conditions of this
Agreement  and that  Licensee's  use thereof  inures to the benefit of the owner
hereof.  Licensee  hereby  acknowledges  the validity of the trademark and trade
name "Dairy Queen" and any derivative trademarks therefrom and further agrees to
do nothing or use the trademark and trade name or said derivative  trademarks in
any way to infringe the rights of Company or Company's licensor.  Licensee shall
use  only the  trademark  and  trade  name  "Dairy  Queen"  and said  derivative
trademarks on and in association with the advertising and sale of a frozen dairy
product, and no other product,  which shall in quality and mode and condition of
manufacture  and sale comply with such  standards as may be fixed or approved by
Company. It is further agreed by the parties hereto that in order to promote and
protect the  business  interests  of each of the  parties,  the good will of the
"Dairy Queen"  business and the business  interests of other persons  engaged in
the "Dairy Queen" business,  requires substantial uniformity to be maintained in
the type,  standard  and  quality  of the "Dairy  Queen"  stores,  the mix,  the
freezers,   and  products  used  therein,  the  conditions  of  preparation  and
merchandising and sale of the

                                      -10-
<PAGE>
product.  To this end, it is agreed that the rules and  controls and policies of
Company,  those  contained  in this  Agreement,  and  enacted by  Company  shall
prevail.  Licensee  agrees that the provisions,  restrictions,  and controls and
agreements  provided  in  this  document  are  all  necessary,  reasonable,  and
desirable for such purposes and that Licensee's  "Dairy Queen" business shall be
conducted in accordance with Company's standards and requirements. The standards
and  requirements  include  requirements  of  quality,  production,  appearance,
cleanliness,  service,  merchandising  and  advertising.  The  setting  forth of
specific items is not in any way meant to limit the specific items to which this
Agreement  applies.  It is mutually  understood  and agreed that these  controls
include the specific  requirements  without  limiting  any general  statement or
policy or controls expressed.

     2. Licensee further agrees to utilize only such "mix" in the preparation of
"Dairy Queen"  products which  conforms to the standards  prescribed by Company.
Licensee shall strictly observe the product overrun  limitations  which shall be
made known to Licensee by Company  from time to time  during this  Agreement  as
guidance to Licensee in  formulating  products for sale.  "Product  overruns" is
defined by the parties as being the amount of air  incorporated  into the "Dairy
Queen"  mix  in the  course  of  producing  "Dairy  Queen"  products.  To  avoid
misunderstanding, Company and Licensee acknowledge that neither shall expect the
other to be agreeable to a product overrun exceeding forty-five (45%) percent.

     3.  Licensee  further  agrees to  utilize  only such  supplies  used in the
production,  handling,  serving or  garnishing  of "Dairy  Queen"  products  and
ancillary lines and related goods conforming to standards  prescribed by Company
from time to time.

     4.  Company  shall  have  the  sole  right  to  approve  the  supplies  and
ingredients used in the business.

     5. Licensee  shall use only approved  "Dairy  Queen"  freezers  produced by
authorized manufacturers.

                                      -11-
<PAGE>
     6. Licensee shall produce and sell the "Dairy Queen" product line only in a
store  constructed in accordance  with plans furnished by Company and containing
approved  "Dairy Queen" signs;  said plans -to remain the property of Company at
all times;  and shall maintain the store in a high state of repair,  cleanliness
and sanitation at all times.  Before any store for the sale or  distribution  of
"Dairy  Queen" is  constructed,  the location  thereof  shall be subject to -the
approval,  in writing, of Company.  Licensee further agrees to acquire the right
to use or to commence  promptly  the  construction  of one such  building at the
authorized  location  herein  above  described  and complete or contract for the
completion of the same on or before July 1, 1987.  AAB & MLH Upon  completion of
said building Licensee shall, at his own expense, install freezers and equipment
therein in a manner approved by Company.  The parking area shall be black-topped
or paved in a manner approved by Company. No material  alterations to or changes
in said building or premises shall be made during the period of this contract or
any renewal hereof without the prior approval in writing by the Company.

     7.  Licensee  shall  hire and  supervise  efficient,  competent,  sober and
courteous  operators and employees wearing uniform Company dress for the purpose
of operating the business.  Licensee shall set their wages and commissions,  and
pay all such wages and  commissions  due them with no liability  therefor on the
Company.  Licensee  shall  require all its  employees to work in clean  uniforms
approved by the Company but furnished at the cost of Licensee or the employee as
Licensee may determine.

     8.  Licensee  agrees at all times to repaint the buildings on said premises
at least annually and to maintain said  buildings and said entire  premises in a
high state of repair,  cleanliness  and  sanitation.  Should  Licensee's  "Dairy
Queen" store be rated other than the highest rating given by any local, state or
federal sanitation or health authorities, said store shall immediately be closed
and such steps or measures shall be

                                      -12-
<PAGE>
taken by Licensee as may be necessary to obtain the highest  rating before it is
reopened for business.  Any such closing shall be regarded as a material  breach
of this  Agreement.  it is agreed  between  the  parties  that  cleanliness  and
sanitation  are  two  of  the  most  important  ingredients  in  general  public
acceptance of "Dairy  Queen"  products.  Any action by any  authority  closing a
"Dairy Queen" store is regarded as a serious dereliction by Licensee.

     9. Licensee further  covenants that in the event Company  standards are not
met, the store may be closed until steps are taken to remedy this situation,  or
at Company's option, this Agreement may terminate, as to page 18, Section XXII.

     10. All Advertising, cartons, containers, wrappers, and paper goods used in
the  advertising,  sale and  distribution  of the "Dairy Queen"  products shall,
where  practicable,  indicate  that it is produced and sold on the  authority of
Company and shall be subject to approval by Company before being used.

     11. All portions of "Dairy  Queen"  products sold or offered for sale shall
comply with requirements  established from time to time by Company as to weight,
size,  and  appearance  and all such  products  shall  be  processed  in  strict
accordance with the formula and methods furnished by Company.

     12. From time to time as Company shall deem desirable,  Company may place a
qualified representative at Licensee's place of business to train, instruct, and
familiarize  employees thereof with the standard business methods and procedures
of Company, or, may require Licensee or any supervisory or operating employee of
Licensee to spend a reasonable  amount of time at another like place of business
designated  by Company  for the purpose of  observing,  receiving  training  and
instruction, and practicing standard business methods and procedure.

     13.  Licensee  further  agrees,  that  at  any  time  Company  may  send  a
representative to Licensee's location to review documents, records, the physical
facilities, and the operation of the business.

                                      -13-
<PAGE>
     14. Licensee agrees to comply with all applicable  federal,  state,  local,
county, and municipal laws, statutes,  ordinances and regulations  pertaining to
the  conduct of the "Dairy  Queen"  business  and the sale of the "Dairy  Queen"
products.

     15. As noted  previously,  Licensee  agrees that technology may develop new
forms of amusement such as video games. Nothing in this Agreement authorizes the
use of any items developed by time, or technology,  or ingenuity,  which are not
authorized by this Agreement, or by Company in writing.

                               See Addendum 4A-1.

     16.  Licensee  further  agrees to appear at and attend  the annual  Company
store operator's meeting and convention, and to appear and attend at any and all
conferences, meetings, or other functions as are designated by Company.

X. SIGNS.

     1. Licensee  shall  prominently  identify the store with one or more of the
'trademarks  specified  by Company,  and with no other name or mark,  said signs
shall as to color, lettering, size, design and general appearance be approved by
Company prior to construction and erection.

     2. Licensee  shall at his own expense  cause such signs to be  constructed,
erected, and maintained throughout the term of this Agreement. All signs must be
approved by Company.

     3. Company is hereby given the right to designate any  additional  signs to
be placed at the premises,  at  Licensee's  expense.  Such signs shall  include,
where appropriate,  highway signs and other similar sign items. Company shall be
the sole arbiter of when such signs, or additional  signs, are appropriate or in
need of maintenance.

XI. FREEZERS.

     All approved  "Dairy Queen"  freezers used in producing and  dispensing the
"Dairy Queen" product shall have a nameplate  fastened  thereto  identifying the
same as "Dairy Queen"  freezers,  and shall be first approved by Company for use
in "Dairy Queen" stores.

XII. RELATED GOODS.

     1. Licensee may sell in said "Dairy Queen" store

                                      -14-
<PAGE>
only such products permitted and approved in writing by Company.

     2. No food, sandwiches, hamburgers, cigarettes, potato chips, gum, or other
like products are to be sold from said "Dairy Queen".  See Addendum 4A-I. (AAB &
MLH)

     3.  Similarly,  no  unauthorized  including  games are to be  allowed.  See
Addendum 4A-1. (AAB & MLH)

XIII. BUSINESS HOURS.

     1. Licensee shall operate its "Dairy Queen"  business during a period of at
least  nine (9)  consecutive  months  in each  calendar  year and such  place of
business  shall be opened to the public at least  twelve (12) hours  during each
day of said period.  Acts of God, war, strikes or riots preventing Licensee from
temporarily complying with the foregoing shall exempt compliance therewith.

     2.  Licensee  shall close said "Dairy  Queen"  business for a period of not
less than two (2)  weeks of each  calendar  year for the  purpose  of  necessary
maintenance  and repairs - painting and general  cleaning.  See  Addendum  4A-IV
attached (AAB & MLH)

XIV. INSPECTION.

     Company, or its authorized representative,  shall have the right to inspect
the  premises,  and every  portion of its  operation  for the  purpose of making
inspections  to  ascertain if all the  provisions  of this  Agreement  are being
observed.  Furthermore,  Company is  entitled to test,  sample,  and inspect all
supplies,  products, and materials of all kinds, the preparation and formulation
thereof,  and the  conditions of sanitation and  cleanliness in the  production,
handling, and serving thereof.

XV. RECORDS AND REPORTS.

     Licensee  agrees to keep a complete set of books and records from which all
sums payable  under this  Agreement  may be  determined.  Such books and records
shall include a monthly profit and loss  statement  reflecting the operations of
Licensee's business, copies of which Licensee shall furnish

                                      -15-
<PAGE>
to Company within twenty-five (25) days after the end of each month's operation.
The aforesaid books,  records,  and financial  statements shall be maintained by
Licensee on forms meeting the specifications of Company.  All such records shall
be open and available to Company for inspection at all times. Company shall have
the  right  to  cause an audit  of the  business  of  Licensee  to be made for a
determination  of  gross  sales-  if any  statement  of gross  sales  previously
submitted  by Licensee  to Company  shall be found to be  incorrect  by audit or
otherwise,  in an amount in excess of two (2%) percent of gross sales,  Licensee
shall  be  subject  to  immediately  pay the  cost of such  audit as well as any
additional  fees found to be payable by Licensee to Company;  and may be subject
to termination, otherwise, the cost of audit shall be paid by Company.

XVI. LITIGATION.

     As between  Company and  Licensee,  Company  shall  control all  litigation
relating  to the  trademark  and trade name  "Dairy  Queen" and said  derivative
trademarks  and  shall be the  sole  judge as to  whether  or not suit  shall be
instituted for the infringement  thereof, the expense for any such litigation in
the  territory  stated  herein  shall be borne by Company and  Licensee  and any
others,  in manner and  extent to be agreed  upon in each  instance  by the said
parties.  Licensee shall promptly notify Company of any such use or infringement
of which he becomes aware.

XVII. LIABILITY INSURANCE.

     Licensee  hereby waives all claims against  Company for damages to property
or  injuries to persons  arising  out of the  operation  of said  business,  and
Licensee  shall  indemnify and save Company  harmless of and from any damages or
injury to property or persons  arising from or growing out of the  operations of
said business in any way, or the  consumption  of the product  hereof.  Licensee
further  covenants and agrees to purchase and maintain in full force and effect,
at Licensee's sole expense, liability insurance in an amount of not less than

                                      -16-
<PAGE>
$300,000.00  insuring  both parties  hereto from  liability for any and all such
damage or injury and Licensee further agrees to deliver to Company a certificate
evidencing  the existence of such insurance  coverage and Licensee's  compliance
with the provisions of this paragraph.

XVIII. COMPETITIVE LICENSE.

     Company shall not license the  establishment  of any  competitive  business
under said  trademarks  and trade name within the protected area covered by this
Agreement  during  the term  hereof.  Similarly,  Licensee  shall  not  license,
establish, or operate any competitive business within the protected area covered
by this Agreement during the term hereof without written consent of Company.

XIX. PAYMENT OF DEBTS.

     Licensee  covenants  and  agrees to pay  promptly  when due,  all taxes and
assessments  that may be assessed  against said  premises or  equipment  used in
connection with Licensee's "Dairy Queen" business, all liens and encumbrances of
any kind and character  created or placed upon or against any of said  property,
as well as all  accounts  and  other  indebtedness  of every  kind  incurred  by
Licensee in the conduct of said business;  and should Licensee default in making
any such payment, Company shall be authorized to pay same and Licensee covenants
promptly to reimburse Company on demand of such payment. By undertaking any such
payments,  Company is not under any  circumstances  obligating itself to pay any
said sums,  but is doing so only to  protect  Company's  good name and  Licensee
under  this  Agreement.  Company,  by doing  so,  shall  not be  undertaking  or
sustaining any liability for any such debts or obligations or liabilities in any
way, shape or form.

XX. INDEPENDENT CONTRACTOR.

     It is agreed and  understood  that Licensee is an independent  agency,  and
independent contractor,  not in any manner the agent or employee of Company, nor
has Company any  interest in the  business of Licensee  except to the extent set
forth in this Agreement.

                                      -17-
<PAGE>
XXI. INDEMNITY.

     Licensee agrees to save and hold Company harmless from any loss,  damage or
liability  incurred by Company by reason of any  violation of this  Agreement by
Licensee.

XXII. NOTICES OF BREACH.

     1. In the event that Company  determines  that  Licensee has failed to meet
the requirements and specifications established in this Agreement, or any of the
terms and conditions  hereof,  Company shall notify  Licensee in writing of that
fact, and shall set forth the terms and conditions to be corrected.  If Licensee
fails to correct such problems,  violations, or conditions within seven (7) days
from the date of (Return Receipt  Requested) mailing of said notice by certified
mail/to the address of the authorized location, Company shall thereupon have the
right to cancel and terminate this Agreement.

XXIII. MODERNIZATION.

     1. Because business advances,  and because society changes,  and methods of
doing business change, it is the duty of Licensee to modernize,  refurbish,  the
building, equipment, signage, and all other items as may be reasonably necessary
to permit the business to conform to the standards then  existing,  and to cause
such repairs or remodeling,  at his expense as are necessary to keep Licensee in
compliance with all of the terms and conditions of this Agreement. Failure to do
so will be regarded as a breach of this Agreement.

     2. In any event,  at the time of any proposed  transfer,  the Licensee must
modernize,  refurbish,  and/or replace  building,  equipment and any other items
from the store as are necessary to be in compliance with the requirements of the
Company as then existing.

XXIV. BANKRUPTCY.

     In the event that Licensee shall be declared  insolvent or bankrupt,  or in
the event a receiver be  appointed,  or that any  proceedings  taken by, for, or
against  Licensee  under any  provision  of the  Federal  Bankruptcy  Act or any
amendment

                                      -18-
<PAGE>
thereof, or make an assignment for the benefit of creditors under any State law,
this Agreement shall be terminated and all rights of Licensee shall be forfeited
forthwith to the Company.

XXV. NON-COMPETE CLAIMS.

     Neither  Licensee  nor any  principal  of an  incorporated  Licensee  shall
directly or  indirectly  engage in any  competitive  business with the protected
area of the authorized  location for a period of two and one-half (2 1/2 ) years
after the date of termination  by either party with or without  cause.  Licensee
shall not assert any claim or cause of action against Company after one (1) year
following the effective date of termination of this Agreement.

XXVI. TERMINATION.

     1. Termination by Licensor.

     Upon termination of this Agreement:

     a. All rights of Licensee to the use of the trademarks and all other rights
and licenses granted herein, including a right to license and conduct the "Dairy
Queen"  business at the  authorized  location  shall  revert to Company  without
further act or deed of any party.

     b. Any  right,  title and  interest  of  Licensee  in,  to and  under  this
operating  Agreement  shall  become the  property  of  Company.  Licensee  shall
immediately cease all use and display of trademarks,  materials, and any and all
ancillary items, services, or products, and shall pay all sums due to Company or
its affiliate or whose payment by Company or its affiliate has guaranteed.

     c. Company  shall have first option to purchase any and all freezers of any
kind  whatsoever  owned by  Licensee  and used by him in the  production  of the
"Dairy Queen"  product at and for an amount equal to the original price paid for
each such freezer less fifty (50%)  percent for use and  depreciation  for first
year. Less twenty (20%) percent per year after first twelve (12) month period.

                                      -19-
<PAGE>
     2. Termination by Licensee.

     Licensee shall not be entitled to terminate this agreement for cause unless
he shall have given Company  written notice of the grounds for such  termination
and  Company  shall  have  failed  to  cure  such  grounds  to  the   reasonable
satisfaction  of Licensee  within thirty (30) days of Company's  receipt of such
notice.  As a condition to Licensee or his successor  terminating this Agreement
without cause at any time,  Licensee shall pay to Company an amount equal to two
times the License Fees payable to Company in respect to (1) the last twelve (12)
months of the store's active operations,  or (2) the entire period the store has
been open for business, whichever is the shorter period.

XXVII. MISCELLANEOUS CLAUSES.

     1. In the event at any time one or more clauses of this Agreement  shall be
held to be void by any Court,  such clauses  shall be deemed to be separable and
the  remainder of this  Agreement  shall be deemed to be valid and in full force
and effect.

     2. Any waiver by Company of any breach by  Licensee  shall not be deemed to
be a waiver of any  subsequent  breach nor an  estoppel to enforce its right for
any subsequent breach.

     3. This Agreement constitutes the agreement between the parties, and is the
sole  agreement  between the  parties,  and embodies  all prior  agreements  and
negotiations  with respect to the "Dairy Queen"  business.  Licensee agrees that
there are no  representations  of any kind made by Company  except as  contained
herein.

     4. If Licensee consists of two or more individuals,  such individuals shall
be jointly and severally  liable,  and  references to Licensee in this Agreement
shall include all such individuals.

     5. This  Agreement  shall be binding  upon and inure to the  benefit of the
administrators, executors, heirs, successors, and assigns of the parties.

                                      -20-
<PAGE>
XVIII. ADMINISTRATIVE AND PROMOTIONAL-PEES.

     1.  Licensee  acknowledges  and agrees that Company may  compensate  itself
and/or its affiliated  companies for the expense of administering  and promoting
the sales promotion programs set forth herein.

XXIX. DIFFERENT FORMS OF LICENSE AGREEMENTS.

     l.  Licensee  acknowledges  that he is aware of the fact that some existing
licensees  of  Company  operate  under  different  forms of  Agreement  and that
consequently,  Company's  obligations  and rights  with  respect to the  various
licensees may differ.

XXX. RULES OF COMPANY.

     1. Company is the sole judge of that which is  compatible  with the sale of
"Dairy  Queen"  products,  and  Licensee  shall not look beyond  Company in such
matters as rules and controls.  These matters are left to the sole discretion of
Company, and Licensee hereby specifically agrees.

     IN WITNESS  WHEREOF,  the parties have caused the  foregoing  "Dairy Queen"
Store Operating  License Agreement to be executed all as of the date first above
written.

                                        DAIRY QUEEN OF SOUTHERN ARIZONA, INC.
ATTEST:                                 First Party

Signature Illegible                     By /s/ Mildred L. Hanigan
-------------------------                  -------------------------------------
                                           Mildred L. Hanigan          President

WITNESS:

Signature Illegible                     BOWLINS INCORPORATED, a New Mexico Corp.
--------------------------              ----------------------------------------
                                                                        LICENSEE

WITNESS:

Signature Illegible                     BY: /s/ C. C. Bess, Exec. V. Pres.
--------------------------                  ------------------------------------
                                                                        LICENSEE
                                      -21-
<PAGE>
                          ADDENDUM TO LICENSE AGREEMENT

IT IS AGREED BY THE PARTIES THAT THIS ADDENDUM  DATED THIS 18th DAY OF November,
1986 SHALL  BECOME A PART OF THE  ATTACHED  LICENSE  AGREEMENT.  THE  FRANCHISEE
ACKNOWLEDGES  THAT HE HAS HAD AT  LEAST  TEN  (10)  BUSINESS  DAYS  PRIOR TO THE
EXECUTION  BY THE  PROSPECTIVE  FRANCHISEE  OF ANY  BINDING  FRANCHISE  OR OTHER
AGREEMENT,  OR AT LEAST  TEN (10)  BUSINESS  DAYS  PRIOR TO THE  PAYMENT  OF ANY
CONSIDERATION BY THE FRANCHISEE,  WHICHEVER OCCURS FIRST, A COPY OF THE OFFERING
CIRCULAR,  TOGETHER  WITH  A COPY  OF  THE  LICENSE  AGREEMENT  RELATING  TO THE
FRANCHISE.

                                       DAIRY QUEEN OF SOUTHERN ARIZONA, INC.
ATTEST:                                Franchisor

/s/ Joyce M. Skripkan                  By /s/ Mildred L. Hanigan
-------------------------                 --------------------------------------
                                          President           Mildred L. Hanigan

WITNESS:

/s/ David B. Raybould                  BOWLIN'S INCORPORATED, a New Mexico Corp.
-------------------------              -----------------------------------------
                                       Licensee and Franchisee

WITNESS:

/s/ Tom Hanigan                        BY: /s/ C. C. Bess, Exec. V. Pres.
-------------------------                  -------------------------------------
                                           Licensee and Franchisee
<PAGE>
                   ADDENDUM TO "DAIRY QUEEN" LICENSE AGREEMENT
                                      NO. 4

This Addendum made and entered into, in duplicate,  at Douglas Arizona,  on this
18th day of November, 1986 by and between DAIRY QUEEN OF SOUTHERN ARIZONA, INC.,
and  Arizona   Corporation,   hereinafter   called   "company",   and   BOWLIN'S
INCORPORATED,  a New Mexico Corporation of Albuquerque,  New Mexico, hereinafter
called "Licensee".

WHEREAS,  the parties  hereto have  executed a "DAIRY QUEEN  LICENSE  AGREEMENT"
(duplicate copy of which  agreement is attached  hereto) dated 18 November 1986,
and  covering  the  following  "Authorized  Location".  17 Miles East of Benson,
Arizona, on Interstate 10 at Johnson road Cochise (County) Arizona (State).

WHEREAS,  the parties hereto wish to amend such agreement heretofore executed to
provide for a single combination  Franchise Fee and Royalty Fee in consideration
of the rights granted  Licensee under said Agreement and in lieu of the separate
Franchise Fee and Royalty Fee provided for in said Agreement:

NOW, THEREFORE,  in consideration of the mutual promises and covenants contained
herein, it is agreed by and between the parties hereto as follows:

     1.  Paragraph 5 of the said "Dairy Queen"  License  Agreement,  between the
parties hereto, is amended to read as follows;

     Licensee  shall  pay to  Company,  as a total  combined  Franchise  Fee and
Royalty Fee in respect of the rights  granted  Licensee  under the terms of said
"Dairy Queen" License  Agreement,  a sum computed upon a percentage of the total
combined  gross retail  sales,  exclusive of sales taxes,  of all products  sold
under said License  Agreement,  the same to be computed in  accordance  with the
following schedule:

           Four Percent (4%) of all gross sales in each calendar year.

     Gross  Sales  shall  include  sales of every  kind and  nature  from and in
connection with said store, including the sale of "Dairy Queen" products and all
other products and related goods which may be authorized for sale therein.

IN WITNESS  WHEREFOF,  the parties  have  caused the  forgoing  Amendment  to be
executed all as of the date first above written.

                                       DAIRY QUEEN OF SOUTHERN ARIZONA, INC.
ATTEST:                                                  an Arizona Corporation.

/s/ Joyce M. Skripkan                  By: /s/ Mildred L. Hanigan
-------------------------                  -------------------------------------
                                           Mildred L. Hanigan          President
WITNESS:

/s/ David B. Raybould                  BOWLIN'S INCORPORATED, a New Mexico Corp.
-------------------------              -----------------------------------------

WITNESS:

/s/ Tom Hanigan                        BY: /s/ C. C. Bess, Exec. V. Pres.
-------------------------                  -------------------------------------
                                                                        LICENSEE
<PAGE>
                   ADDENDUM TO "DAIRY QUEEN" LICENSE AGREEMENT
                                     NO. 4A

     This Addendum made and entered into, in duplicate, at Douglas,  Arizona, on
this 18th day of November, 1986, by and between DAIRY QUEEN OF SOUTHERN ARIZONA,
INC.,  an  Arizona  Corporation,  hereinafter  called  "Company",  and  BOWLIN'S
INCORPORATED of 136 Louisiana NE,  Albuquerque,  New Mexico,  87108  hereinafter
called "Licensee".

     WHEREAS, the parties hereto have executed a "DAIRY QUEEN LICENSE AGREEMENT"
(triplicate  copy of which agreement is attached  hereto) dated this 18th day of
November 1986, and covering the following "Authorized Location":

     17 Miles East of Benson on Interstate 10 at Johnson road

                                       I.

     WHEREAS, the parties have mutually agreed to the following:

     NOW  THEREFORE,  in  consideration  of the mutual  promises  and  covenants
contained herein, it is agreed by and between the parties hereto as follows:

     DAIRY  QUEEN  OF  SOUTHERN  ARIZONA,   INC.,   acknowledges  with  BOWLIN'S
INCORPORATED  that at  present  there is already a system of food and gift items
offered to the public in their  establishment.  it is fully understood that upon
the opening of the Dairy  Queen/Brazier unit, the old food line now in operation
will be discontinued  entirely and only the Brazier authorized food line will be
sold from the Dairy Queen unit only.

     HOWEVER, it is mutually understood and agreed upon, since Licensee operates
a full line novelty and curio  business in a store  building  with  gasoline and
other automotive  items sold on the premises with said store building  adjoining
Licensee's DAIRY QUEEN operation,  the sales in Licensee's merchandise,  novelty
and curio plus gasoline and  automotive  items shall not be subject to the sales
continuing  License fees or promotional  fees as is provided in said DAIRY QUEEN
LICENSE AGREEMENT.

                                       II

     WITH RESPECT TO: Page 5, Article 6, of the DAIRY QUEEN  LICENSE  AGREEMENT,
notification of any breach or default must be by Certified Mail,  Return Receipt
Requested, to the Licensee at:

                              Bowlin's Incorporated
                              136 Louisiana, NE
                              Albuquerque, NM 87108

And Licensee shall have at least seven (7) days to cure such default.

                                       III

     WITH RESPECT TO: Page 8, Section V, paragraph 3, of the DAIRY QUEEN LICENSE
AGREEMENT, Company agrees to waive the payment of promotion and advertising fees
by the Licensee, upon demonstration by the Licensee that he is providing outdoor
advertising  through  the  use of  billboards  located  along  Interstate  10 in
Arizona,  such  advertising  being to the  mutual  benefit of both  Company  and
Licensee.

                                       IV

     WITH RESPECT TO: Page 15, Section XIII,  paragraph 2,: IT IS FURTHER AGREED
that such closing shall be at the Licensee's  option, but the necessary repairs,
maintenance,  painting,  and  cleaning  shall be  promptly  accomplished  to the
satisfaction of the Company on a regular and routine basis.

     IN WITNESS WHEREOF,  the parties have caused the foregoing  Amendment to be
executed  all as of the date  first  written  above.  DAIRY  QUEEN  OF  SOUTHERN
ARIZONA, INC. ATTEST: Franchisor

By: /s/ Joyce M. Skripkar               By /s/ Mildred L. Hanigan
    -----------------------------          -------------------------------------
                                           Mildred L. Hanigan - President

                                        BOWLIN'S INCORPORATED
                                        136 Louisiana, NE
ATTEST:                                 Albuquerque, NM  87108

BY: /s/ D. B. Raybould                  BY: /s/ C. C. Bess, Exec. V. Pres.
    -----------------------------           ------------------------------------
<PAGE>
                                   "MR. MISTY"

                           STORE SUBLICENSE AGREEMENT
              BETWEEN STATE OR DISTRICT OPERATOR AND STORE OPERATOR

     THIS AGREEMENT is executed in quadruplicate this 18TH day of November 1986,
by and between DAIRY QUEEN OF SOUTHERN ARIZONA, INC. (hereinafter referred to as
LICENSOR),  and BOWLIN'S  INCORPORATED,  a New Mexico  Corporation  (hereinafter
referred to as LICENSEE):  WHEREAS, LICENSEE is the operator of the DAIRY QUEEN*
store  located  at 17 Miles  East of Benson on  Interstate  10 at  Johnson  road
(hereinafter referred to as LOCATION),  under and by virtue of written authority
granted by LICENSOR; and

     WHEREAS,  LICENSOR has been licensed the exclusive right and license within
its DAIRY QUEEN  Franchise  Territory to use and to  sub-license  the use of the
following described trademarks, hereinafter referred to as TRADEMARKS:

     (a)  The words "MR. MISTY" and "MR. MISTY KISS," and
     (b)  The fanciful  caricature  used in connection with "MR. MISTY" and "MR.
          MISTY KISS"; and

     WHEREAS,  LICENSOR'S  said  right and  license  to use said  TRADEMARKS  is
limited  solely to DAIRY QUEEN stores owned or  franchised  by it, in connection
with a particular and unique semi-frozen  confection,  of the nature generically
of what is sometimes known in the trade as a slush drink and novelty confection,
made in accordance with prescribed secret formulae, standards and specifications
(hereinafter sometimes referred to as PRODUCT); and

     WHEREAS,  the  parties  are  desirous  of  providing  for a  sublicense  of
TRADEMARKS  so that  LICENSEE is  authorized  and entitled to use  TRADEMARKS at
LOCATION in a manner which is consistent  and uniform with the use of TRADEMARKS
at other DAIRY QUEEN stores throughout the country; and

     WHEREAS,  the parties agree and acknowledge  that TRADEMARKS are a valuable
and subsisting  property right, that PRODUCT is a unique and superior confection
heretofore  sold at retail only in DAIRY QUEEN stores,  and that the  provisions
herein respecting the standards and  specifications  for PRODUCT and for the use
of TRADEMARKS are reasonable and necessary to protect their  respective  rights,
and the rights of those having superior and similar rights therein.

     NOW,  THEREFORE,  in  consideration  of the  premises  and  of  the  mutual
undertakings and obligations herein set forth, it is agreed:

     1.  LICENSOR  hereby  licenses to LICENSEE the  exclusive  privilege to use
TRADEMARKS,  provided  that  such  is  limited  solely  to  use at  LOCATION  in
connection with PRODUCT and is subject to the provisions hereof.

     2. Nothing herein shall be understood to be a sale,  assignment or grant to
LICENSEE of any right, title or interest in and to TRADEMARKS.

     3. For this  license,  LICENSEE  shall pay to  LICENSOR,  or to  whoever is
designated  in writing by LICENSOR to receive  payment in LICENSOR'S  behalf,  a
service fee as specified in Exhibit 1 hereto.  LICENSEE  understands  and agrees
that the AMERICAN DAIRY QUEEN  CORPORATION (from which LICENSOR has received its
rights in and to  TRADEMARKS)  may buy and sell some or all of the  ingredients,
equipment,  or  containers  used in the  making of  PRODUCT  and in so doing may
realize some profit.

(To be filled Out in Quadruplicate)        *Reg. U.S. Pat. Off., Am. D. Q. Corp.
<PAGE>
     4.  LICENSEE  admits and agrees not to contest the validity or ownership of
TRADEMARKS or LICENSOR'S  superior  right to the use thereof during the duration
of this  agreement  and for a period of two (2) years after the  termination  of
this agreement.

     5. LICENSEE'S use of TRADEMARKS on PRODUCT enclosure and on advertising and
promotional  literature with respect  thereto,  will conform in every respect to
samples which LICENSOR provides to LICENSEE or expressly approves in writing.

     6. LICENSEE  acknowledges  that it is of the utmost importance that PRODUCT
sold at LOCATION  under  TRADEMARKS  shall conform  strictly to said  prescribed
standards and specifications emanating through, from or provided by LICENSOR for
the quality, flavor, appearance and texture of PRODUCT, for the ingredients used
in the production of PRODUCT, for the equipment necessary,  including dispensing
freezers,  to make PRODUCT at LOCATION,  and for the containers in which PRODUCT
is sold,  as determined  from time to time. A copy of the current  standards and
specifications  is  attached  and  made a part  hereof  as  Exhibit  2.  PRODUCT
purchased  by LICENSOR or its  representatives  from  LICENSEE or from any store
licensed  hereunder  during the normal course of business shall be considered as
representative of PRODUCT sold by LICENSEE in determining LICENSEE'S conformance
with said standards and specifications. Failure on LICENSEE'S part to conform to
said standards and  specifications  shall  constitute a material  breach of this
agreement  entitling LICENSOR to terminate the same upon giving thirty (30) days
written  notice.  This paragraph,  however,  shall not be construed to mean that
LICENSEE is  required  to purchase  any of the  ingredients,  or  equipment,  or
containers  used in making and selling  PRODUCT  from  LICENSOR or from  sources
designated by LICENSOR,  if there is another source or sources  available  which
can provide ingredients, or equipment, or containers - -which satisfy LICENSOR'S
standards and  specifications.  Said  standards and  specifications  may include
suggestions  as to retail prices for PRODUCT sold at LOCATION,  but, if so, such
are no more than suggestions,  are not binding or mandatory,  and nothing herein
or therein  contained  shall  require or obligate  LICENSEE  or anyone  licensed
hereunder  in any way to sell  PRODUCT  at any price  other  than that which the
seller voluntarily determines.

     7. Each  reproduction,  publication  and use of TRADEMARKS  pursuant hereto
shall bear the statutory notice of trademark  registration  adjacent thereto, as
required or approved by LICENSOR.

     8. Any use which LICENSEE may make of TRADEMARKS shall inure to the benefit
of LICENSOR.

     9. This license shall be in effect until  terminated by mutual agreement of
the parties,  provided  that  LICENSOR  shall have the right to  terminate  this
license  upon  giving  thirty  (30) days prior  written  notice to  LICENSEE  if
LICENSEE (a) fails to carry out any of the provisions of this agreement,  or (b)
ceases or refuses for any reason to continue to  participate  in the DAIRY QUEEN
service  programs of the  AMERICAN  DAIRY QUEEN  CORPORATION  or its  affiliated
companies.  LICENSEE shall have the right to terminate this license and to cease
using  TRADEMARKS  and PRODUCT  effective at the end of any  calendar  year upon
giving at least thirty (30) days prior written notice to LICENSOR.

     10. In the event that  LICENSOR'S  rights in and to TRADEMARKS  and PRODUCT
are  terminated  for any reason,  whether by LICENSOR'S own action or otherwise,
this agreement and LICENSEE'S rights hereunder shall automatically terminate.

     11. Upon the  expiration  or  termination  of this  license for any reason,
LICENSEE will promptly and completely  cease and desist in the use of TRADEMARKS
or of any similar  trademark,  as well as the secret formulation for the base of
PRODUCT.

     12.  LICENSEE  admits and  acknowledges  that it enters into this agreement
freely  and  voluntarily,   understanding   all  the  provisions   hereof,   and
understanding  further  that  it is not  necessary  for it to  enter  into  this
agreement in order to continue to enjoy any existing right and interest licensed
to it by LICENSOR in connection with LOCATION.

     13. LICENSEE is fully and solely responsible for any and all claims made on
account of injuries to persons or otherwise,  arising from or as a result of the
manufacture,  use, or  consumption  of PRODUCT  sold at LOCATION  and shall hold
LICENSOR completely harmless therefrom.

     14. The waiver of any breach  hereof  shall not be  effective  to waive any
subsequent breach hereof.

                                       -2-
<PAGE>
     15. The authorization hereby granted to LICENSEE to use and sell TRADEMARKS
and PRODUCT at LOCATION is limited as provided  herein and does not include,  by
implication or otherwise, authorization to use or sell any other non-DAIRY QUEEN
product or non-DAIRY QUEEN trademark not previously approved by LICENSOR.

     16. This agreement is to be governed by and  interpreted in accordance with
the  laws  of  the  State  of  Illinois,   embodies  the  entire  agreement  and
understanding of the parties  relating to the subject matter hereof,  and may be
amended or modified only by an instrument executed by both parties.  The making,
execution and delivery hereof has been induced by no representation,  statement,
warranty, or agreement other than expressed herein.

     17. This agreement is binding on the successors and assigns of the parties,
and  LICENSEE  shall not  assign or lease  this  agreement  or any of the rights
granted hereunder without prior written consent of LICENSOR.

     IN WITNESS WHEREOF the parties hereto have caused their  signature  affixed
the day, month and year first above written. ARIZONA, INC.

                                       DAIRY QUEEN OF SOUTHERN ARIZONA, INC.

                                       /s/ Mildred L. Hanigan
                                       -----------------------------------------
                                       LICENSOR - Mildred L. Hanigan

                                       BOWLIN'S INCORPORATED, a New Mexico Corp.

                                       -----------------------------------------
                                       LICENSSEE

                                       BY: /s/ C. C. Bess, Exec. V. Pres.
                                       -----------------------------------------
                                       LICENSEE

                                       -3-
<PAGE>
                             DESCRIPTION OF EXHIBITS
                          TO STORE SUBLICENSE AGREEMENT
                            BETWEEN STATE OR DISTRICT
                           OPERATOR AND STORE OPERATOR

Exhibit                    1:  Statement  of amount of and  method of  computing
                           service fee; to which  should be added a  designation
                           by LICENSOR of who is authorized  to collect  service
                           fees paid pursuant to the agreement.

                           (See attached Draft of Exhibit 1)

Exhibit                    2: Copy of current standards and  specifications  for
                           PRODUCT, including such for ingredients,  processing,
                           equipment, and containers.
<PAGE>
                                   EXHIBIT # 1

     LICENSEE  shall  pay a  service  fee on the Mr.  Misty  products  with said
service fee paid in the following manner. Mr. Misty sales shall be included with
the  reported  gross sales  figures  each month and paid on the net sales at the
royalty rate of 6-5-4% or flat 4%, depending on contract type.

     LICENSOR  may from time to time in writing  specify  some  other  person or
entity to whom or which said service fee shall be paid by LICENSEE.

                                   EXHIBIT # 2

                        STANDARDS AND SPECIFICATIONS FOR
                              "MR. MISTY" PRODUCTS

The following  standards and  specifications are effective until further written
notice  from the  American  Dairy Queen  Corporation.  The "Mr.  Misty"  license
agreements to which this exhibit  pertains  require strict  compliance  with the
standards and specifications  here set forth. Should any store operator have any
question about the  interpretation  of the standards and  specifications,  he is
requested to contact  either  American  Dairy Queen  Corporation or his regional
franchise  operator from whom he received his rights to use the "Mr.  Misty" and
"Mr. Misty Kiss" trademarks.

The  sources  for  approved  freezers  and for  approved  base and  concentrated
flavors,  which are  recommended  below,  are the only sources of such which are
known at this time and which when used as  provided  herein  will  produce  "Mr.
Misty" products meeting the required  standards of quality,  taste,  appearance,
temperature, texture, and consistency. If and when other sources of freezers, or
of base and  concentrated  flavors become known to or are made known to American
Dairy Queen  Corporation,  these  sources will be reviewed to ascertain if their
product satisfies these standards and specifications.  If so, these sources will
be added to those approved below.
<PAGE>
     I-FREEZER:

          Freezers  approved  for  dispensing  "Mr.  b4isty"  products are those
          manufactured  for this purpose by the following  manufacturers:  H. C.
          Duke and Son, East Moline, Illinois, and Stoelting Bros. Manufacturing
          Company,  Kiel,  Wisconsin.  The steps in  maintaining,  cleaning  and
          operating the freezers of either of said manufacturers must be adhered
          to as stated in the manufacturer's instructions.  The additional steps
          for the -operation of an approved  freezer which are stated below must
          also be complied with.

     II-"MR. MISTY" BASE INGREDIENT AND FLAVORED CONCENTRATES:

          The  unflavored  base  ingredient  to be used in  making  "Mr.  Misty"
          products  is  made  in  accordance   with  the  secret   formulae  and
          specifications  of the owner of the "Mr.  Misty" and "Mr.  Misty Kiss"
          trademarks.  Only the base  ingredient  so made may be used in  making
          products sold under these trademarks. American Dairy Queen Corporation
          has  arranged for the  manufacture  of such base  ingredient,  and the
          store  operator  will know he has the proper  base  ingredient  if the
          label thereon  indicates  that it is approved by American  Dairy Queen
          Corporation.  The foregoing also applies to the flavored  concentrates
          for use in making  flavored "Mr. Misty"  products.  At this time, both
          the approved base  ingredient and the approved  flavored  concentrates
          are available  through American Dairy Queen  Corporation.  If and when
          the owner of the  trademarks  authorizes  a  different  or  additional
          source for either the base  ingredient  or the flavored  concentrates,
          these standards and specifications will be-modified accordingly.

     III-"MR. MISTY" PRODUCTS FORMULA AND SPECIFICATIONS:

          A.-LIQUID BASE:

               1.   UNFLAVORED  BASE  INGREDIENT  AND  ADDITION OF FLAVORS  UPON
                    SERVING:

                    (a)  To five (5) pounds of sugar,
                    (b)  Add  one  (1)   pint  of   approved   unflavored   base
                         ingredient.
                    (c)  Add sufficient water to make five (5) gallons of mix.
                    (d)  Stir the  resulting  mix  thoroughly  and place into an
                         approved dispensing freezer.
                    (e)  Add desired flavor upon serving as follows:

                         (i)  Place the correct amount of the desired flavored
                              concentrate in the bottom of the cup in the
                              proportions indicated below, and

                         (ii) Fill the  balance  of the cup with the  unflavored
                              mix dispensed from the approved freezer.

                    (f)  The proportions of the desired flavor concentrate to be
                         added upon serving are:

<TABLE>
<CAPTION>
                                        "MR. MISTY"                    "MR. MISTY KISS"
                                        -----------                    ----------------
<S>                                                              <C>
                         (i)   Four (4) oz. Cup: (sample size)   (i)  Quart Container:
                               1/2 pumpstroke (1/8 oz.)               6 pumpstrokes (1 1/2 oz.)
                         (ii)  Nine (9) oz. Cup:                      Fill to 24 oz. Level with
                               1 pumpstrokes (1/4 oz.)                unflavored mix.
                         (iii) twelve (12) oz. Cup:
                               1 1/2 pumpstrokes (3/8 oz.)
                         (iv)  sixteen (16 oz. Cup:
                               2 pumpstrokes (1/2 oz.)
</TABLE>
<PAGE>
               2.   PREFLAVORING  TO SERVE  ONE  FLAVOR  DIRECT  FROM  DISPENSER
                    FREEZER:

                    "Mr.  Misty" products may be preflavored in order to serve a
                    single-flavored  product  directly from the freezer,  at the
                    option  of  the  store  operator,  in  accordance  with  the
                    following:  add  twenty  (20)  ounces of  approved  flavored
                    concentrate  to five (5) gallons of  unflavored  mix made as
                    specified  above stir  thoroughly,  and place in an approved
                    freezer.

     IV-FREEZER OPERATION:

          Proper sanitation  instructions for use in the dispensing  freezer are
          available  from the authorized  freezer  manufacturers;  however,  all
          freezers will be cleared and sanitized at least weekly.  The operating
          temperature  of the  freezing  compartment  must be  within  one  (1o)
          degree, more or less, of twenty-seven (27o) degrees at all times.

     V-APPROVED CUPS AND CONTAINERS:

          "Mr. Misty"  products may be served only in cups and containers  which
          are imprinted  with the Mr. Misty"  trademarks in the format and style
          appearing  on  cups  and  containers  approved  or  distributed  by or
          obtained  through  American  Dairy  queen  Corporation  or an approved
          source.  Samples of such format  style will be  furnished  by American
          Dairy queen Corporation upon request.

     VI-ADVERTISING AND DISPLAY MATERIALS:

          The approved format for signs, posters and other advertising materials
          to promote "Mr. Misty"  products shall be as appear in signs,  posters
          and  advertising  materials  approved  or  distributed  by or obtained
          through  American  Dairy Queen  Corporation.  Samples  thereof will be
          provided upon request.

The above standards and  specifications  supersede any previously  issued by the
Dairy Queen national Development Company and American Dairy Queen Corporation.

                                        AMERICAN DAIRY QUEEN CORPORATION

                                        By: Signature Illegible
                                            ------------------------------------
                                            President
<PAGE>
                             "FOOD SERVICE ADDENDUM"
               TO "DAIRY QUEEN" STORE OPERATING LICENSE AGREEMENT

     Food Service Addendum entered into this 18th day of November,  1986 between
DAIRY QUEEN OF SOUTHERN  ARIZONA,  INC. of the City of Douglas County of Cochise
and State of Arizona,  hereinafter referred to as "Licensor", and BOWLIN'S INC.,
a New Mexico Corp. of the City of Albuquerque  County of Bernalillo and State of
New Mexico hereinafter referred to as "Licensee":

     WHEREAS,  Licensor  is a  licensee  of  American  Dairy  Queen  Corporation
(hereinafter referred to as "American") in certain areas of the right to license
others to use a distinctive food service system (the "System") identified by the
"Brazier" or other  trademarks  owned by American and listed on Appendix A,A1,A2
(hereinafter collectively referred to as "Trademarks"); and,

     WHEREAS,  Licensor  has been  licensed by American to develop,  promote and
establish  the  System as an adjunct to the  "Dairy  Queen"  business  conducted
within Licensor's  Territory,  and to license "Dairy Queen"  sublicensees to use
the System and one or more of the Trademarks designated periodically by American
to identify the System and its various products; and,

     WHEREAS,  Licensor  and  Licensee  are parties to a certain  "Dairy  Queen"
Franchise  and/or  License  Agreement  executed by Licensee  and Licensor or its
predecessor  whereby  Licensee is  authorized  to operate a "Dairy Queen" retail
store  (hereinafter  referred  to as "the  Store") at the  address  set forth in
Paragraph 2.1 of this Addendum; and,

     WHEREAS, Licensor and Licensee each desire that all products sold under the
System or any of the Trademarks consistently conform to the quality standards of
the System as well as the highest expectations of consumers;

     NOW,  THEREFORE,  in  consideration of the premises and the mutual promises
and covenants herein contained, the parties hereby agree as follows:

1. AMENDMENT.

          1.1  Coordination of Agreements.  This Amendment shall be attached to,
     made a part of and wholly merged into that certain "Dairy Queen" Franchise,
     License or 0perating Agreement dated the 18th day of November 1986, between
     the undersigned parties (the "Agreement").  The Agreement,  supplemented by
     this  Addendum,  is to remain in full fore and  effect  and is to be deemed
     superseded by this Amendment only to the extent  necessary to implement the
     terms hereof in connection
<PAGE>
APPENDIX "B-2" - 28 March 1986

     with  Licensee's  use of the  System for the "food  service"  aspect of his
     business,  and in  respect  to the  sales  promotion  program  fees to also
     include the dairy product sales as outlined in Paragraph 6.3. The Agreement
     shall  continue  to  govern  the  "dairy  products"  aspect  of  Licensee's
     business.  As used herein,  the term "dairy  products"  and  references  to
     Licensee's  "Dairy Queen"  business as conducted prior to execution of this
     Addendum  refer to frozen or  semi-frozen  or other dairy or  confectionery
     products and the "Dairy Queen" trademarks,  now or hereafter created, whose
     use is licensed to Licensee by the  Agreement.  The term "food service" and
     references to the "System"  defined herein and licensed  hereunder refer to
     all other prepared or  ready-to-eat  foods,  and the related "Dairy Queen",
     "Brazier"  and other  trademarks,  including  beverages,  now or  hereafter
     created,  whose use is licensed  to  Licensee by this  Addendum or that are
     registered for foods or restaurant  services other than those defined above
     as "dairy  products"  and  related  marks.  In all other  cases and for all
     purposes the Agreement and this Addendum  shall be construed and treated as
     a single  instrument  and,  to the  extent  that they are not  inconsistent
     therewith,  all the terms and  provisions  hereinafter  contained  shall be
     defined and interpreted in conjunction with all of the terms and provisions
     of said Franchise and/ or License Agreement.

          1.2  Preservation of Right. The license granted by this Addendum shall
     continue until terminated by either Licensee or Licensor in accordance with
     the  provisions  of this  Amendment.  Under  no  circumstances  shall  this
     Addendum  remain  in effect  after any  termination  or  expiration  of the
     Agreement.  Upon any  termination or expiration of this Addendum,  Licensee
     shall  revert to no lesser nor greater  status or rights  than  Licensee is
     entitled  to under the  Agreement  as it existed  immediately  prior to the
     execution  of this  Addendum.  Each party  shall  have the same  rights and
     duties in respect to the "Dairy  Queen"  trademark as each had  immediately
     prior to execution  of this  Addendum.  Termination  or  expiration  of the
     Agreement  in  accordance  with its  terms,  however,  shall  automatically
     terminate this addendum without further notice or action of either party.

     2. LICENSE.  Licensor hereby grants to Licensee,  subject to all the terms,
conditions and provisions hereof, the right and license to:

          2.1 Store  Identification.  Use the  Trademarks  at or about the Store
     located at: 17 Miles East of Benson on Interstate 10 at Johnson Road on and
     in association with the advertising,  promotion and sale of all uniform and
     approved food service  products and services as Licensor  periodically  may
     authorize.  See Appendix "A", "A-1" or "A-2" attached hereto.2.2  Trademark
     Usage.  Use the  Trademarks  at the  Store on and in  association  with the
     uniform  equipment,  supplies,  containers  and  ingredients  for the  food
     service and other products  approved  periodically by Licensor,  and to use
     one or  more of the  Trademarks  designated  periodically  by  American  on
     signage used to identify the Store.

                                       -2-
<PAGE>
          2.3  Business  Method.  Employ  in  the  business  of  the  Store  the
     merchandising, sales promotion programs and business methods and techniques
     developed and approved by American and adopted and approved by Licensor.

          2.4  Assistance.  Receive  the  assistance  and  services  of Licensor
     provided for in this Addendum.

     3.  ACCEPTANCE OF LICENSE.  Licensee  hereby accepts the above license from
Licensor subject to all the terms,  provisions and conditions  hereof and agrees
to implement the System as Licensee's  sole food service  system and menu within
ninety  days  of  the  date  of  this  Addendum.   Licensee  further   expressly
acknowledges and agrees:

          3.1 Trademark Ownership. American is the owner of all right, title and
     interest in and to the Trademarks  together with the good will,  associated
     with or  attributable  to the  Trademarks,  of the business with which said
     Trademarks  have  been and are used at and  about  Licensee's  Store.  Said
     trademarks are valuable  property rights owned by American.  Licensee shall
     not  contest or  challenge  American's  ownership  or  registration  of the
     Trademarks.

          3.2 Trademark Use. The  Trademarks  shall be used only on or with such
     products and services as may be approved or specified by Licensor and shall
     at all times be used only in a manner approved by Licensor.

          3.3 Location of Use.  Licensee's right to the use of the Trademarks is
     specifically  limited to the site of the Store under the Agreement,  and in
     connection with sales promotion programs approved by Licensor.

          3.4 Other Marks.  Licensee shall use no other trademarks,  trade names
     or service  marks in the food  service  business at the Store  except those
     authorized  periodically  by Licensor except with the prior written consent
     of Licensor.

          3.5 Changes in Marks.  Licensee  acknowledges that Licensor shall have
     the right and power in its sole discretion  within the Territory to select,
     adopt,  alter, amend or discontinue the use of one or more words,  phrases,
     trademarks, trade names, service marks or the like, heretofore or hereafter
     in use in  connection  with the food service  business  hereby  licensed to
     Licensee,  from time to time as Licensor  may deem  expedient  or as may be
     required by American; and Licensee further acknowledges that no such usage,
     terminology,  or adoption,  change or discontinuance  thereof, shall in any
     manner or degree have any effect  upon the  remainder  of this  Addendum or
     upon Licnesee's original "Dairy Queen" franchise agreement. Any such new or
     altered word(s), trademarks, trade names or service marks or the like shall
     be deemed  subsumed  under the  definition  of the  Trademarks  hereinabove
     contained. Licensor engages that it will not make an unreasonable number of
     such changes, or make such changes at unreasonably close intervals.

                                       -3-
<PAGE>
          3.6 Authorized  Trademarks.  Licensor shall keep Licensee  informed by
     means of  revisions  to the  attached  Appendix  A,A1,A2,  which is  hereby
     incorporated  herein,  as to the full  list of  currently  authorized  food
     service  trademarks,  trade names and service marks.  Licensee shall,  upon
     notice of any alteration therein,  forthwith conform his operations to such
     enumeration as revised.

          3.7 Business Identification.  Licensee shall not use the Trademarks or
     any of them as a part of his  corporate  or business  name and shall use in
     connection  with  his  food  service  business  only  one  or  more  of the
     Trademarks as may be designated  periodically by American as the trade name
     on the store from which the said food  service  products  and  services are
     sold, but Licensee  shall also display the "Dairy Queen"  Trademark on said
     store.

          3.8 Business Method. Licensee shall adopt and follow in good faith the
     systems,  programs  and methods  prescribed  for  Licensee's  food  service
     operation pursuant to this Addendum.

          3.9 Conflicts of Interest.  Neither  Licensee nor any person owning an
     interest  directly or indirectly in Licensee  shall  directly or indirectly
     operate or permit to be  operated  or hold any  interest  (other than 1% or
     less of the  outstanding  stock or debt of any class of any public company)
     in any  restaurant or fast-food  business other than one authorized by this
     Amendment without the prior written consent of Licensor.

     4.  TRADEMARK  STANDARDS  AND  REQUIREMENTS.  Licensee  agrees that nothing
herein contained gives him any right, title or interest in the Trademarks except
the right to use the same under the terms and  conditions  of this  Addendum and
that  Licensee's  use thereof  inures to the benefit of  American.  American and
Licensor have the right to distribute for their own account products  identified
by the Trademarks  through other methods of distribution that may be established
periodically.

          4.1 Uniform Use of Marks.  Licensee  shall confine his use of the food
     service Trademarks to the sales promotion programs and sale of food service
     products  and  services  which shall in  quality,  mode and  conditions  of
     manufacture  and  sale,  comply  with  such  reasonable  standards  as  are
     established or approved from time to time by Licensor.  In order to promote
     and protect the business interests of each of the parties, the value of the
     "Dairy Queen" business and the business  interests of other persons engaged
     in such business,  Licensee shall adhere to system  standards of uniformity
     prescribed  by  Licensor  in the type,  standard  and  quality  of  stores,
     equipment,  supplies and  ingredients  used therein,  and the conditions of
     preparation  and the  procedures  employed in the sale of said products and
     services.  Licensor shall not make an  unreasonable  number of changes with
     respect to such matters.

                                       -4-
<PAGE>
          4.2 Uniform Facilities. Licensee agrees that the food service business
     hereunder  shall  be  conducted  in  accordance  with  Licensor's   uniform
     requirements with respect to quality, production, appearance,  cleanliness,
     service, merchandising and sales promotion standards. Licensee acknowledges
     and agrees that substantial  uniformity in facilities,  products,  services
     and  operations are essential to the conduct of a system such as the "Dairy
     Queen"  system,  and  therefore  further  agrees  to  honor  and  implement
     recommendations  of Licensor  directed to  enhancing  and  furthering  such
     uniformity.

          4.3 Equipment and Supplies. Licensee agrees to purchase and use in the
     operation of the food service portion of Licensee's  Store, only equipment,
     supplies and  ingredients  which are approved by Licensor.  Nothing  herein
     shall be  construed  as an attempt to limit  unreasonably  the sources from
     which Licensee may procure equipment, supplies, and ingredients.  Rather it
     is the  intention  of the  parties  that such items  conform to  Licensor's
     standards and specifications of consistent quality and uniformity.  Nothing
     contained  herein  shall be  deemed  to  require  Licensor  to  approve  an
     inordinate  number of  suppliers  of a given item or  service  which in the
     reasonable  judgment of Licensor  would result in higher cost  generally to
     Licensor's  licensees or prevent  effective and  economical  supervision of
     suppliers by Licensor.  Requests for approval of additional suppliers shall
     be in writing and shall contain such information as Licensor may reasonably
     request.  Licensor  reserves  the right to charge  back to  Licensee or the
     proposed supplier all reasonable expenses incurred in considering  requests
     for approval.

          4.4 Approved Adaptations.  Complete and detailed uniformity under many
     varying  conditions may not be possible or practical and Licensor  reserves
     the right and privilege,  at Licensor's sole discretion and as Licensor may
     deem in its best  interests to vary  standards for any other licensee based
     upon the  peculiarities  of a particular site or  circumstance,  density of
     population, business potential, population of trade area, existing business
     practices or any other  condition  which Licensor deems to be of importance
     to the successful operation of such licensee's business. Licensee shall not
     by entitled to any variation from  specifications  or standards  prescribed
     hereunder by reason of any variation granted to any other person.  Licensee
     acknowledges  that he is aware that other licensees of Licensor or American
     operate  under  a  number  of  different   forms  of  agreement  and  that,
     consequently,  the obligations and rights of the parties to such agreements
     may differ  materially in certain  instances  from those  provided  herein.
     Licensee  further agrees that any  requirement,  standard or  specification
     prescribed  hereunder is subject to  reasonable  periodic  modification  or
     recession  by  Licensor  or  American  to  adapt  the  System  to  changing
     conditions and competitive circumstances.

          4.5  Litigation.  In the event any  person  who is not a  licensee  of
     Licensor or American, uses or infringes upon the Trademarks, American shall
     control  all  litigation  and shall be the sole  judge as to whether or not
     suit shall be  instituted,  prosecuted or settled,  the terms of settlement
     and whether or not any other action is taken. Licensee

                                       -5-
<PAGE>
     shall promptly inform  Licensor of any litigation or threatened  litigation
     by or against  Licensee  which arises out of the  operation  of  Licensee's
     business or pertains to the  Trademarks.  Thereafter,  Licensee  shall keep
     Licensor  informed  of the  status  of any such  litigation  or  threatened
     litigation and cooperate with any action reasonably  undertaken by Licensor
     or American with respect thereto.

          4.6 Notice of Potential  Profit.  American and Licensor  hereby advise
     Licensee that  American,  Licensor  and/or the affiliates of either of them
     may from time to time make  available to Licensee  goods,  products  and/or
     services  for use in  Licensee's  Store on whose  sale  American,  Licensor
     and/or such  affiliates  may make a profit.  American and Licensor  further
     advise Licensee that American, Licensor or the affiliates of either of them
     may  from  time  to  time  receive   consideration  from  suppliers  and/or
     manufacturers in  consideration of rights licensed or services  rendered to
     such  persons.   Licensee  agrees  that  American,   Licensor  and/or  such
     affiliates shall be entitled to said profits and/or consideration.

     5. PRODUCT AND OPERATIONS STANDARDS. The following provisions shall control
with respect to products and operations of Licensee's food service operations:

          5.1 Authorized  Product Line.  Licensee's food service business at the
     Store shall be confined to the  preparation  and sale of only such products
     as Licensor  periodically  designates and approves.  The Store shall not be
     used  for any  other  business  than  the food  service  business  licensed
     hereunder and Licensee's current "Dairy Queen" business, and Licensee shall
     not  offer  for  sale  therefrom  any  other  product  or  service  of  any
     description  without  the written  consent of  Licensor.  Specifically  but
     without limiting the foregoing,  alcoholic or intoxicating  beverages shall
     not be sold or offered for sale or otherwise  handled  upon said  premises.
     RE: Section 1, Paragraph 4 of page 1, Addendum 4A to the "Agree

          5.2  Approved  Menu.  Attached  hereto as Appendix B is the  currently
     approved menu for Licensee's food service business.  Licensor may from time
     to time make reasonable  modifications  to said approved menu provided said
     modifications  are made in  respect to all  licensees  which have this or a
     comparable  agreement  and are  located  in  similar  marketing  areas.  In
     addition,  Licensee  may  from  time to time  request  variation  from  the
     currently approved menu.  Proposal for such variation shall be submitted in
     writing  to  Licensor  for its  approval  and shall be in the form (if any)
     prescribed by Licensor.  Said proposal shall contain sufficient information
     to permit  Licensor  to  evaluate  the  proposal  fairly  and  fully.  Such
     variations shall only be made with the prior written consent of Licnesor.

          5.3 Authorized Ingredients,  Formulas, Supplies, Preparation. Licensee
     shall  use in  preparing  food  service  products  only  such  ingredients,
     formulas and supplies as specified by Licensor and in such portions, sizes,
     appearance and packaging as set forth in the most current "Store Management
     Operations Manual" and "Product Preparation Charts".  Licensee acknowledges
     and agrees that these may be changed

                                       -6-
<PAGE>
     from time to time by Licensor and that  Licensee is obligated to conform to
     the  requirements  as so  changed  from time to time.  All other  supplies,
     including  containers,  eating  utensils,  napkins  and all other  customer
     service materials and promotional items of all descriptions and types shall
     meet the reasonable standards of uniformity and quality as now or hereafter
     are approved by Licensor  for the  Territory.  Licensee  shall be furnished
     with current lists of approved equipment, supplies,  ingredients,  services
     and applicable standards of uniformity and quality.

          5.4 Serving  and  Promotional  Items.  All sales  promotion  material,
     customer "good will" items, cartons, containers,  wrappers and paper goods,
     eating and serving utensils, customer convenience items (including napkins,
     baby bibs, and disposable containers) used in the sales promotion, sale and
     distribution of all food service products shall, where practicable, contain
     one or more of the Trademarks authorized for use by Licensee as appropriate
     to the product in question, and indicate that it is produced and sold under
     the  authority  of  American  and shall be subject to  approval by American
     before being used.

          5.5 Health and Sanitation.  Licensee's food service  business shall be
     operated  and  maintained  at all  times  in  compliance  with  any and all
     applicable  health and  sanitary  standards  prescribed  by Licensor and by
     governmental  authority including any standards prescribed by Licensor that
     are more restrictive than those set by governmental  authority. In addition
     to  complying  with such  standards,  if the Store  shall be subject to any
     sanitary or health  inspection by any governmental  authorities under which
     it may be  rated  in one or more  than  one  classification,  it  shall  be
     maintained and operated so as to be rated in the highest  available  health
     and  sanitary  classification  with  respect  to each  governmental  agency
     inspecting the same.

          5.6 Inspection.  Licensor, American or their authorized representative
     shall  have the right to enter  Licensee's  Store at all  reasonable  times
     during the business day for the purpose of making  periodic  inspections to
     ascertain if all the  provisions  of this  Addendum  are being  observed by
     Licensee and to inspect Licensee's Store, lands and equipment, and to test,
     sample and inspect his supplies,  ingredients and products,  as well as the
     storage,   preparation  and  formulation  thereof  and  the  conditions  of
     sanitation and cleanliness in the storage, production, handling and serving
     thereof.

     6. START SALES PROMOTION PROGRAMS AND FEES.

          6.1 Sales Promotion  Programs and Payment of Administrative  Expenses.
     Licensee  shall  cooperate  in sales  promotion  programs of approved  food
     service products.  To this end Licensor reserves the right to establish and
     organize sales promotion  programs from time to time and Licensee agrees to
     pay to Licensor a sales promotion program fee as set forth in Paragraph 6.3
     hereof. Licensee acknowledges and agrees that Licensor has had in the past,
     and shall have in the future,  the discretion to determine  expenditures of
     funds collected in respect to sales promotion programs and as to the timing
     and selection of the promotional materials and programs for which

                                       -7-
<PAGE>
     said expenditures are made, provided,  however,  that Licensor shall make a
     good faith  effort to expend such funds in the general  best  interests  of
     participating  licensees.  Licensor shall expend sales  promotion  funds as
     provided  herein.  Licensee  acknowledges  and  agrees  that  Licensor  may
     compensate  itself  and/or  its  affiliated  companies  for the  expense of
     administering  and promoting  such food service sales  promotion  programs.
     Licensor shall advise Licensee annually of the receipts and expenditures of
     sales promotion  programs and of Licensor's  expense of  administering  and
     promoting said programs.

          6.2 Approved  Materials.  Licensee shall use only such sales promotion
     program materials or other advertising materials as are furnished, approved
     or made available by or through  Licensor and/or  American.  Said materials
     shall be used only in a manner prescribed by Licensor and/or American.

          6.3 Sales  Promotion  Program  Fee.  Licensee  shall pay to Licensor a
     sales  promotion  fee to be expended in accordance  with the  provisions of
     Paragraph  6.1.  The sales  promotion  fee shall be a sum equal to not less
     than 3% nor more than 6% of  Licensee's  gross  retail  sales (net of sales
     taxes),   including  both  dairy  product  and  food  service  sales,  from
     Licensee's Store. Licensor shall notify Licensee of the exact percentage by
     January of each year. (Except no notification will be given with respect to
     any year for which the  percentage  is to be unchanged  from the  preceding
     year). Such percentage shall be the same as that to be employed during such
     succeeding  year by the  majority  of "Dairy  Queen"  licensees  within the
     marketing area as determined by Licensor within which  Licensee's  Store is
     located.  This sales  promotion  fee (and the license fee  provided  for in
     Paragraph 9.1) are in addition to, and not in lieu of, any fees (other than
     sales  promotion  or  advertising  fees)  required  to be paid  pursuant to
     Licensee's  above-referenced  "Dairy Queen" franchise agreement;  the sales
     promotion  fee herein  provided for shall  supersede  and replace any sales
     promotion or  advertising  fees required to be paid by Licensee to Licensor
     under any other such  franchise or License  agreement.  RE:  Section III of
     page 2, Addendum 4A to the "Agreement

          6.4 Yellow  Pages.  Licensee  shall,  if requested  by Licensor,  list
     separately,  or participate in a listing,  in the Yellow Pages of his local
     telephone directory  containing such copy as may reasonably be specified by
     Licensor.  The  cost of such  listing  shall  be  paid by  Licensee,  or by
     Licensee and other participating  licensees in the case of a joint listing.
     Licensor shall not specify an unreasonably expensive listing.

     7.  FACILITY  STANDARDS.  The  following  shall  control  with  respect  to
Licensee's facilities at his Store:

          7.1 Store Facility.  Licensee agrees that the food service  facilities
     shall be constructed and equipped in accordance  with Licensor's  currently
     approved  specifications  and standards for building,  equipment,  signage,
     fixtures, location and design and accessory features.

          7.2 Future Alteration.  Any replacement,  reconstruction,  addition or
     modification in building, interior or exterior decor or image, equipment or
     signage, to be made after consent is granted by Licensor for the

                                       -8-
<PAGE>
     initial plans, whether at the request of Licensee or of Licensor,  shall be
     made in  accordance  with written  specifications  which have  received the
     prior  written  consent  of  Licensor,  which  shall  not  be  unreasonably
     withheld.

          7.3 Maintenance.  The building,  equipment and signage employed in the
     conduct  of  Licensee's  food  service  business  shall  be  maintained  in
     accordance with specific lists prepared by Licensor and based upon periodic
     inspections of the premises by Licensor's representatives.  Within a period
     of ninety (90) days after the receipt of any particular  maintenance  list,
     Licensee shall effect the items of maintenance designated therein including
     the repair of defective  items and/or the  replacement of  unrepairable  or
     obsolete  items of equipment  and  signage.  Routine  maintenance  shall be
     conducted in  accordance  with general  schedules  published by Licensor or
     American and made available to Licensee.

          7.4   Relocation.   Should  it  become   necessary,   on   account  of
     condemnation,  sale or other cause, including expiration or cancellation of
     lease,  to  relocate  the  entire  Store,  Licensor  shall  grant  Licensee
     authority  to do so at a site,  acceptable  to  Licensor,  that is within a
     radius of 1,000 meters of the Authorized Location, is reasonably suited for
     a "Dairy  Queen"  retail  store,  does not  infringe  on rights of  another
     licensee, is reasonably distant from other "Dairy Queen" retail stores, and
     provided that the new retail store is constructed, equipped and fully ready
     to be opened for business within one year after discontinuing  operation of
     a "Dairy Queen" Store at the Authorized  Location,  all in accordance  with
     the current standards of American and Licensor at that time. If the need to
     relocate  the Store is  attributable  to the  voluntary  act or omission of
     Licensee,  Licensee's  right to relocate the Store as provided herein shall
     be void and Licensee's interest in this Agreement shall be abandoned unless
     Licensee  shall have given  Licensor  notice of his intent to relocate  not
     less than sixty (60) days prior to closing the Store, shall have procured a
     site  acceptable to Licensor  within 60 days after closing the prior Store,
     and shall have opened the new retail Store for business  within 180 days of
     such closure.

          7.5  Modernization  and  Refurbishment  Upon Transfer.  Each and every
     transfer of any interest in this Agreement or business conducted  hereunder
     is expressly  conditioned  upon Licensee  promptly  effecting such items of
     modernization,  refurbishing  and/or  replacement  of building,  equipment,
     fixtures and signage as may be  reasonably  necessary to permit the same to
     conform to the standards then prescribed by American for similarly situated
     new "Dairy Queen" store operations.  Licensee  acknowledges and agrees that
     the  requirements  of this  Paragraph are both  reasonable and necessary to
     insure  continued  public  acceptance  and  patronage of the "Dairy  Queen"
     system,  and to avoid  deterioration or obsolescence in connection with the
     operation of the business.

                                       -9-
<PAGE>
     8. PERSONNEL AND  SUPERVISION  STANDARDS.  The following shall control with
respect to personnel, training and supervision:

          8.1  Training.  Licensee  shall,  at  Licensee's  expense,  attend and
     complete  American's training program,  at Minneapolis,  Minnesota,  (or at
     another  location  designated  by Licensor)  prior to opening of Licensee's
     food service operations. If Licensee operates the Store principally through
     a hired manager,  Licensee  shall, at Licensee's  expense,  also cause such
     person to attend and complete  American's or Licensor's  training  program.
     Under no  circumstances  shall  Licensee  permit  management of the Store's
     operations  on a  regular  basis  by a  person  who  has  not  successfully
     completed American's or Licensor's training program.

          8.2 Staffing. Licensee shall hire and supervise efficient,  competent,
     sober and courteous  persons as his employees for the operation of his food
     service  business and set and pay their wages,  commissions  and incentives
     with no liability therefor on American or Licensor.  Licensee shall require
     all his  employees  to work in clean  uniforms  approved  by  Licensor  but
     furnished  at the  cost  of  Licensee  or his  employees  as  Licensee  may
     determine.  No employee  of  Licensee  shall be deemed to be an employee of
     Licensor or American for any purpose(s) whatsoever.

          8.3  Internal  Training  Program.   Licensor  shall  provide  or  make
     available to Licensee an in-store training program for all store employees.
     Licensee shall train and  periodically  re-train all store  employees using
     the training aids made available by Licensor.  American  periodically  will
     revise such  training  materials  and aids and it or Licensor will make the
     same available for purchase by Licensee.

          8.4  Attendance  at Meetings.  Licensee,  or  Licensee's  manager,  at
     Licensee's  expense,  shall  attend  at least  one  national,  regional  or
     approved local  marketing area meeting each year which American  originates
     for and on behalf of "Dairy  Queen"  operators to set forth new methods and
     programs  in  store  operation,   training,  management,  sales  and  sales
     promotion programs. Licensor further strongly recommends that key employees
     of Licensee also attend such meetings.

     9. FEES, REPORTING AND FINANCIAL MANAGEMENT.

          9.1  Continuing  Franchise  License Fee.  During the full term of this
     Operating Agreement, and in consideration of the rights licensed hereunder,
     Licensee  shall pay to  Licensor  as  license  fee in respect to the rights
     licenses herein a sum equal to: 4 (four) % of gross retail sales, exclusive
     of retail sales taxes,  of all products,  goods and wares of every kind and
     nature  sold from,  or in  connection  with the food  service  portion  of,
     Licensee's  "Dairy  Queen"  Store,  including,  but  without  limiting  the
     generality  of the  foregoing,  sales  of  all  products  under  any of the
     Trademarks  as well as sales of other food service  merchandise  whether or
     not identified by other brand names.

          9.2 Computations and Remittances.  All amounts due and owing hereunder
     shall be computed at the end of each month's operation and remittance

                                      -10-
<PAGE>
     for the same  shall be made to  Licensor  on or before the tenth day of the
     following  month  accompanied by the reports  provided for in Paragraph 9.4
     hereof.  The  computation of said amounts shall be certified by Licensee in
     the manner and form  specified  by Licensor  and  Licensee  shall supply to
     Licensor  such  supporting  or  supplementary  materials  as  Licensor  may
     reasonably require to verify the accuracy of such remittances.

          9.3 Surcharge Method of Pre-collection. At Licensor's option, Licensor
     may require  Licensee to pay to  suppliers  of food  service  products  and
     ingredients  a  surcharge  on all units of such  commodities  purchased  by
     Licensee.  Said surcharge  shall be established by Licensor at a reasonable
     rate so as to approximate the amount of license fee and sales promotion fee
     which will be payable by  Licensee.  Said  surcharge  shall be paid to said
     supplier or suppliers  for the account of Licensor,  and be regarded by the
     parties as a method of  pre-collection  of said license and sales promotion
     fees.  The amounts so collected  shall be credited by Licensor  against the
     license and sales  promotion  fees due from Licensee to Licensor at the end
     of each month's operations. Licensor shall submit to Licensee on Licensor's
     choice of a monthly  or  quarterly  basis a  reconciliation  of  Licensee's
     license  and sales  promotion  fees  account  setting  forth the  credit to
     Licensee's  account from amounts collected for Licensor by suppliers by way
     of the aforesaid  surcharge method.  Should Licensee fail to submit reports
     in accordance with Paragraph 9.4, Licensor may make said  reconciliation of
     amounts  due in  conformance  with its best  judgment as to amounts due and
     Licensor's  reconciliation  shall  be  conclusive  as to  the  amounts  due
     Licensor  from  Licensee  unless  within a period  of ten (10)  days  after
     mailing of said  reconciliation to Licensee by Licensor,  Licensee provides
     evidence in a form  satisfactory  to Licensor of the correct  amounts  due.
     Licensee shall pay such amounts,  if any, determined to be owed pursuant to
     Licensor's reconciliation within ten (10) days after a mailing of notice to
     Licensee by Licensor.  If Licensor  determines  that Licensee has over-paid
     license or sales  promotion  fees on the surcharge  basis,  Licensor  shall
     remit to Licensee an amount equal to the excess fees  collected at the time
     the monthly or quarterly reconciliation is provided Licensee.

          9.4 Records and Reports.  Licensee  shall keep true records from which
     all sums payable under this Agreement and the dates of accrual  thereof may
     be readily  determined  including but not limited to a monthly statement or
     profit and loss; an annual balance sheet,  statement of profit and loss and
     statement of changes in financial position;  records of purchases,  special
     sales and  promotions,  check  registers,  sales tax  returns,  daily  cash
     register tapes or similar  records showing all sales and such other related
     information as Licensor may reasonably specify. Licensee shall make written
     reports to Licensor in such form as Licensor  periodically  may  reasonably
     prescribe,  within  ten (10) days after the end of each  month's  operation
     setting forth such  information and data as may by reasonably  necessary to
     determine  the sums payable to Licensor by Licensee  during said month.  In
     addition to the  foregoing  and in addition  to such other  information  as
     Licensor may from time to time  reasonably  require,  said  monthly  report
     shall accurately set forth the gross retail

                                      -11-
<PAGE>
     sales of the Store as well as the total of number of  gallons  of mix,  the
     total number of pounds of meat, and the quantity of other basic commodities
     used by the Store  during said month and the sources  where said mix,  meat
     and other commodities were purchased.  For the purpose of said reports, the
     date of use of such mix, meat and other  commodities  shall be deemed to be
     the date of receipt at the Store.

          9.5  Inspection  and Audit.  Licensee shall keep all books and records
     relating to the Store at a location where they shall be readily  accessible
     to  Licensor   and   American.   Licensor,   American  or  the   authorized
     representative  of either  shall  have the right at all  times  during  the
     business  day to enter the  premises  where  Licensee's  books and  records
     relative to the Store are kept,  and to inspect,  copy and audit such books
     and  records.  In the event that any such  inspection  or audit  reveals an
     understatement of Licensee's gross sales,  continuing license fees or sales
     promotion  fee of 2-1/2% or more,  or a  variance  of 5% or more from other
     data  reported  to  Licensor  in respect  to any other  material  item,  in
     addition to any other rights it may have,  Licensor or American may conduct
     such further  periodic  audits and/or  inspections of Licensee's  books and
     records as it reasonably deems necessary for up to two years thereafter and
     such further audits and/or inspections shall be at licensee's sole expense,
     including  professional  fees,  travel and living expenses directly related
     thereto.

          9.6 Financial Responsibility and Insurance. Licensee hereby waives all
     claims against Licensor and American for damages to property or injuries to
     persons  arising out of the operation of  Licensee's  business and Licensee
     shall  indemnify  and save  Licensor and American  harmless of and from any
     damage or injury to property or persons  arising from or growing out of the
     operations of Licensee's business.  Licensee further agrees to purchase and
     maintain in full force and effect, at Licensee's expense,  public liability
     insurance  in an amount not less than  $500,000 or such  greater  amount as
     Licensor periodically may reasonably specify taking into account inflation,
     risk levels or other factors  deemed  important by Licensor,  insuring both
     parties hereto, and American,  by name, from liability for any and all such
     damage or injury and waiving the insurer's  rights or  subrogation  against
     Licensor and American.  Licensee agrees to deliver to Licensor periodically
     a certificate evidencing the existence of such insurance coverage and which
     provides that Licensor will be given not less than thirty (30) days written
     notice of material change of or termination or cancellation of the policy.

          9.7 Offsets.  Licensee  waives any and all existing and future  claims
     and offsets against any amounts due hereunder,  which amounts shall be paid
     when due.  Licensor and American  shall be entitled to apply or cause to be
     applied  against  amounts due to either of them or any of their  respective
     affiliated  companies  any  amounts  which may from time to time be held by
     either of them or their  respective  affiliates on Licensee's  behalf or be
     owed to Licensee by  Licensor or American or their  respective  affiliates.
     All amounts owed by Licensee to Licensor hereunder shall bear interest from
     their due date(s)  until paid at the lesser of 18% per annum or the maximum
     contract  rate  of  interest  permitted  by the  law of  the  state  of the
     Authorized Location of Licensee's Store.

                                      -12-
<PAGE>
     10. RESOLUTION OF DISPUTES;  TERMINATION. Except as qualified below, in the
event of any dispute  between  the  parties  hereto  arising  under,  out of, in
connection with or in relation to this Agreement,  said dispute shall be settled
in a court of law. However, at the agreement of both parties, said dispute shall
be submitted by the parties to binding  arbitration in accordance with the Rules
and Procedures and under the auspices of the American  Arbitration  Association.
The  arbitration  shall take place at the capital of the state of the Authorized
Location of Licensee or at such other place as may be mutually  agreeable to the
parties.  The  decision  of the  arbitrators  shall be final and  binding on all
parties.  Notwithstanding  the foregoing,  Licensee recognizes that his Store is
one of a large  number of stores  similarly  situated  and selling to the public
similar  products,  and hence the  failure on the part of a single  licensee  or
sublicensee  to comply with the terms of his Agreement  could cause  irreparable
damage  to  Licensor,  American  and/or  to  some  or all  other  "Dairy  Queen"
licensees.  Therefore,  it is  mutually  agreed that in the event of a breach or
threatened  breach of any of the terms of this  Addendum by  Licensee,  Licensor
shall forthwith be entitled to an injunction restraining such breach and/or to a
decree of  specific  performance  without  having  to show or prove  any  actual
damage,  together with recovery of  reasonable  attorney's  fees and other costs
incurred in  obtaining  said  equitable  relief,  until such time as a final and
binding  determination  is made by the arbitrators  and/or the court of law. The
foregoing  equitable  remedy  shall be in  addition  to, and not in lieu of, all
other remedies or rights which  Licensor  might  otherwise have by virtue of any
breach of this  Agreement  by  Licensee.  Licensor  also  reserves  the right to
commence a civil action  against  Licensee or take other  appropriate  action to
collect  sums of money due to  Licensor,  and to compel  Licensee to compile and
submit  required  reports  to  Licensor  or  to  permit  inspections  or  audits
authorized by this Addendum.  The  prevailing  party in any action or proceeding
hereunder shall be entitled to recover its reasonable  attorney's fees and costs
therein.

          10.1 Breach of Contract.  Licensee shall be in default hereunder if he
     does any act that  manifests  his intent to  abandon  the  license  granted
     herein, or if Licensor reasonably determines that Licensee has breached any
     of the terms of this Addendum, which without limiting the generality of the
     foregoing shall include making any false report to Licensor; failure to pay
     when due any  amounts  required  to be paid to  Licensor or American or the
     affiliates  of either  whether  pursuant  to this  Addendum or to any third
     party as required by this Addendum; conviction of Licensee of any felony or
     misdemeanor  which  brings or tends to bring the  Trademarks  or the "Dairy
     Queen" system into  disrepute or impairs or tends to impair the goodwill of
     the  Trademarks,  failure to abide by "Dairy  Queen"  system  standards and
     requirements  in connection  with the  operation of Licensee's  business or
     failure to meet any requirements or specifications established with respect
     to product quality, physical property, conditions or equipment or materials
     used, products manufactured,  menu or use of approved products, packages or
     promotional materials.  Failure of Licensee to pay to Licensor any past due
     amount owed within seven (7) days of Licensor's  written  notice of default
     therein  shall be construed as  Licensee's  voluntary  abandonment  of this
     Addendum and the food service business operated hereunder.

                                      -13-
<PAGE>
          10.2 Termination by Licensor. Except as hereinafter provided,  failure
     of Licensee to cure a default by Licensee  hereunder  within seven (7) days
     from the date of a  written  notice  of  default  mailed  or  delivered  to
     Licensee,  which notice states such default, shall give Licensor good cause
     to terminate this Addendum. Termination shall be accomplished by mailing or
     delivering to Licensee  written notice of  termination,  which notice shall
     state the grounds  therefore and shall be effective (i)  immediately in any
     case of voluntary abandonment of this Addendum by Licensee or conviction of
     Licensee  of  an  offense  directly  related  to  the  business   conducted
     hereunder;  or (ii)  sixty  (60)  days  after  the date of such  notice  of
     termination in all other cases; provided, however, that notwithstanding any
     other  provision of this  Paragraph  10, this  Addendum  may be  terminated
     immediately upon failure of Licensee to cure within  twenty-four (24) hours
     of notice thereof any default under this Addendum which materially  impairs
     the good will  associated  with any of the  Trademarks.  In addition to the
     foregoing,  this  Addendum may be terminated by Licensor upon any ground or
     by any  shorter  period of notice  (but not less than seven days  except as
     provided  above)  as may be  expressly  permitted  from  time  to  time  by
     applicable  law or  regulation.  The  provisions of any  applicable  law or
     regulation  prescribing  permissible grounds, or minimum periods of notice,
     for  termination  of this franchise  shall  supersede any provision of this
     Addendum that is less  favorable to Licensee  than such law or  regulation.
     This Addendum shall  terminate  automatically  without notice or any act by
     any party upon any  termination  or expiration of Licensee's  "Dairy Queen"
     franchise agreement referred to in Paragraph 1.1.

          10.3 Loss of Lease;  Failure to Reopen.  Subject to the  provisions of
     Paragraph 7.4 hereof,  any  termination  of the land or building  lease for
     Licensee's  Store,  or any  failure  to  rebuild  or repair  and reopen for
     operation Licensee's destroyed or damaged store within one year of the date
     of  occurrence  of such  destruction  or  damage,  shall  be  construed  as
     Licensee's voluntary abandonment of this franchise and Addendum.

     11. TERMINATION CONSEQUENCES. Upon termination of this Addendum:

          11.1 Reversion of Rights.  All rights,  title and interest of Licensee
     in and to @his Addendum shall become the property of Licensor.

          11.2  Discontinuation of Use of Marks. All of Licensee's rights to the
     use of the  Trademarks  and the right and license to conduct the franchised
     food  service   business  shall  revert  to  Licensor  and  Licensee  shall
     immediately  cease all use of all such Trademarks and pay all monies due at
     said  date.  Licensee  shall  promptly  and at his own  expense  remove  or
     obliterate all store signage and displays furnished to Licensee by Licensor
     and shall remove or obliterate any signage or displays at Licensee's  Store
     or in his  possession  bearing any of said  Trademarks or names or material
     confusingly similar to any of said Trademarks.

          11.3  Termination by Licensee.  Refer to "Dairy Queen" Store Operating
     License  Agreement,   page  20,  Section  XXVI  Termination,   paragraph  2
     Termination by Licensee.

                                      -14-
<PAGE>
     12. MISCELLANEOUS.

          12.1 Severability. In the event at any future time one or more clauses
     of this Addendum shall be held to be void or  unenforceable  for any reason
     by any court of  competent  jurisdiction,  such clause or clauses  shall be
     deemed to be separable and the  remainder of this Addendum  shall be deemed
     to be valid and in full  force and  effect  and the terms of this  Addendum
     shall be equitably  adjusted so as to compensate the appropriate  party for
     any  consideration  lost  because  of the  elimination  of such  clause  or
     clauses.

          12.2 Waivers.  Any waiver by Licensor of any breach by Licensee  shall
     not be  deemed  to be a waiver of any  other or  subsequent  breach  nor an
     estoppel  to  enforce  its  rights in  respect  of any other or  subsequent
     breach.

          12.3 Joint Liability;  Pronoun References. If Licensee consists of two
     or more individuals, such individuals shall be jointly and severally liable
     and  references  to  Licensee  in this  Addendum  shall  include  all  such
     individuals.  Reference  to  Licensee  as male shall also  include a female
     licensee,  partnership  or  corporation  or any  other  business  entity as
     relevant in the context.

          12.4 Conformance with Law. This Addendum shall be deemed to be amended
     from time to time as may be necessary to bring any of its  provisions  into
     conformity with valid applicable laws or regulations.

          12.5  Transfer   Prohibited.   This  Addendum  is  not  assignable  or
     transferable  in whole or in part to any party except in connection  with a
     transfer  or  assignment  of the "Dairy  Queen"  franchise  referred  to in
     Paragraph  1.1 to which  Licensor  has  given its  prior  written  consent.
     Regarding transfer fee as set forth in the "Agreement", gross sales amounts
     shall  include all gross sales of "Dairy  Queen"  Soft Serve  Products  and
     Brazier Food line, in computing transfer fee.

          12.6 Entire  Agreement.  Subject to the  exceptions  set forth in this
     Addendum,  this Addendum constitutes the sole agreement between the parties
     with  respect  to  its  subject  and  embodies  all  prior  agreements  and
     negotiations with respect to the System.  There are no  representations  of
     any kind except as  contained  herein.  Paragraph  captions are for ease of
     reference and do not alter or limit the provisions of this Addendum.

          12.7 Relationship. Licensee is an independent contractor and is not in
     any manner the agent,  partner or employee of Licensor nor has Licensor any
     interest in, or power over, the business of Licensee, except to the limited
     extent expressly set forth in this Agreement.

                                      -15-
<PAGE>
          12.8 Parties Bound.  This  Agreement  shall be binding upon, and inure
     solely to the benefit of, the administrators,  executors, heirs, successors
     and  assigns of the  parties.  No person  who is not a named  party to this
     Agreement is, or is intended to be, a beneficiary hereof.

     IN WITNESS WHEREOF, the parties hereto have executed the foregoing Addendum
the date first above written.

ATTEST:                                LICENSOR:

                                       DAIRY QUEEN OF ARIZONA, INC.

/s/ Joyce M. Skripkan                  By /s/ Mildred L. Hanigan
--------------------------                -------------------------------------
                                          Mildred L. Hanigan, President

WITNESS:                               LICENSEE:

/s/ David B. Raybould                  BOWLIN'S INCORPORATED, a New Mexico Corp.
--------------------------             -----------------------------------------

/s/ Tom Harrigan                       By: /s/ C. C. Bess, Exec. V. Pres.
--------------------------                 -------------------------------------

                                       ACCEPTED:

                                       AMERICAN DAIRY QUEEN CORPORATION

                                       By /s/ Herman E. Nelson
                                          --------------------------------------

                                          Its V.P.
                                              ----------------------------------
D.Q.S.A., INC. Form Food Service
Appendix "B-2" 28 March 1986

                                      -16-
<PAGE>
                          ADDENDUM TO LICENSE AGREEMENT

IT IS AGREED BY THE PARTIES THAT THIS ADDENDUM  DATED THE 18th DAY OF November ,
1986 , SHALL BECOME A PART OF THE ATTACHED LICENSE AGREEMENT.

THE  FRANCHISEE  ACKNOWLEDGES  THAT HE HAS HAD AT LEAST TEN (10)  BUSINESS  DAYS
PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR
OTHER AGREEMENT,  OR AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE PAYMENT OF ANY
CONSIDERATION BY THE FRANCHISEE,  WHICHEVER OCCURS FIRST, A COPY OF THE OFFERING
CIRCULAR,  TOGETHER  WITH  A COPY  OF  THE  LICENSE  AGREEMENT  RELATING  TO THE
FRANCHISE.

ATTEST

                                       DAIRY QUEEN OF SOUTHERN ARIZONA, INC.
ATTEST:                                Franchisor

/s/ Joyce M. Skripkan                  By /s/ Mildred L. Hanigan
-----------------------------             --------------------------------------
                                          President - Mildred L. Hanigan

WITNESS:

/s/ D. B. Raybould                     BOWLIN'S INCORPORATED, a New Mexico Corp.
-----------------------------          -----------------------------------------
                                       Licensee and Franchisee

/s/ Tom Hanigan                        By: /s/ C. C. Bess, Exec. V. Pres.
-----------------------------              -------------------------------------
                                                 Licensee and Franchisee

-----------------------------          -----------------------------------------
                                                 Licensee and Franchisee
<PAGE>
                                  APPENDIX "A"

Licensee  has the right to use the  following  trademarks  and service  marks in
accordance with the attached Operating Agreement.

This  Appendix  "A" may be amended by Company from time to time in order to make
available additional trademarks or service marks or to delete those which become
unavailable.  Licensee  agrees to use only those  trademarks  and service  marks
which are then currently authorized.

DAIRY QUEEN(TM)                        DQ'(TM)

BRAZIER(TM)                            THE ELLIPSE DESIGN(TM)

MR. MISTY(TM)                          BROWNIE DELIGHT(TM)

MR. MISTY KISS(TM)                     THE CONE WITH THE CURL ON TOP(TM)

LET'S ALL GO TO THE DAIRY QUEEN(TM)    DESIGN: THE CONE WITH THE CURL ON TOP(TM)

FIESTA(TM)                             QUEEN'S CHOICE AND DESIGN(TM)

FULL MEAL DEAL(TM)                     DOUBLE DELIGHT(TM)

CHILI DOG SPLIT(TM)                    STARKISS(TM)

PEANUT BUSTER' PARFAIT(TM)             BIG "O"(TM)

FUDGE NUT BAR(TM)                      IT'S A REAL TREAT'(TM)

BANANA SUPREME(TM)                     DQ CHIPPER SANDWICH(TM)

WE TREAT YOU RIGHT(TM)                 BLIZZARD(TM)

MORE BURGER THAN BUN(TM)               CHOCOLATE PEANUT BUTTER CRUNCH(TM)

SUPER DOG TV(TM)                       MR. MALTIE(TM)

ROYAL BANANA SPLIT(TM)                 CHOCOLATE CHIP COOKIE SANDWICH(TM)

SNAK DEAL(TM)                          CHOCOLATE MOUNTAIN SUNDAY(TM)

BUSTER BAR(TM)                         BIG CONE AND DESIGN(TM)

DILLY' BAR(TM)                         DQWICH(TM)

DILLYWICH

Each of the  above  trademarks  and/or  service  marks  must be used only in the
manner specified by the Company and in connection with the goods and/or services
specified by the Company. No deviations will be permitted.

1/22/86

Reg. U.S. Pat. Office Am D.O. Corp., "Trademark, Am. D.Q. Corp.

DATE: 11/18/86          INITIALS: M.L.H.                      C.C.B.
     ----------------            -------------------          ------------------
                                      (Licensor)                  (Licensee)

                                         Date: 11/18/86      Initials:
                                               ----------             ----------
                                                                      (Licensee)
<PAGE>
                                  APPENDIX "B"
                               Dairy Queen/Brazier

(Please attach to copy of current operating agreement)
                                                                      (Licensee)

Below is listed the approved menu of Company for Dairy Queen",  /Brazier' stores
which is in current use and effect.  Licensee is  authorized to use this menu in
accordance with the attached Operating Agreement.

This  Appendix  "B" may be amended by Company from time to time in order to make
available  additional  products  or to delete  those which  become  unavailable.
Licensee  agrees to use only those products which are then currently  authorized
for use in Dairy Queen/Brazier stores.

Licensee  shall use in preparing  products only such  ingredients,  formulas and
supplies as are specified by Company and in such portions, sizes. appearance and
package as set forth in Company's  most  current  "Store  Management  Operations
Manual" and "Product Preparation Charts."

<TABLE>
<CAPTION>
National Required                   National Required                            National Required
Brazier Food Items                  Dairy Queen, Soft Serve Items                Beverage Items
------------------                  -----------------------------                --------------
<S>                                 <C>                                          <C>
Homestyle Hamburgers:               Cones                                        A minimum of three carbonated
  Single                            Dipped Cones                                   soft drinks**
  Double                            Sundaes                                      Mr. Misty(R)*
  Triple                            Shakes/Malts
    w/Lettuce and Tomato            Float                                        National Optional
    w/Cheese                        Mr. Misty(R) Float*                          Beverage Items
                                    Freeze                                       --------------
Hot Dog                             Mr. Misty(R) Freeze*                         Soft Drinks (32 oz.)
  w/Chili                           Banana Split                                 Milk
  w/Cheese                          Peanut Buster(R) Parfait                     Coffee
Fish Fillet Sandwich                Double Delight(TM)                           Hot Chocolate
  w/Cheese                          Home Pak:                                    Iced Tea
Chicken Breast Fillet Sandwich        Pint                                       Lemonade
  w/Cheese                            Quart                                      Diet Soft Drinks**
French Fries                          Half Gallon
  Large                             Novelties:
  Small                               Dilly(R) Bar
Onion Rings                           Buster Bar(R) and/or Fudge Nut Bar(TM)
                                      DQ(R) Sandwich and/or Dillywich(R)
National Optional                     Mr. Misty Kiss(R) * and/or Starkiss(R)
Brazier(R) Food Items
---------------------
Super Dog(TM)
  w/Chili                           National Optional
  w/Cheese                          Dairy Queen  Soft Serve Items
Chili Dog Split(R)                  ------------------------------
Quarter Pound Hot Dog:              Hot Fudge Brownie Delight(R)
  w/Chili                           Strawberry Shortcake
  w/Cheese                          Banana Supreme(R)
Polish Sausage                      Shake'N Sundae
Barbecue Sandwich                   Parfait
Chili Bowl                          Soda
Nachos                              Sundae 11 oz.
Chopped Pork Loin Fritter           DQ Chipper Sandwich(R) or
Chicken Nuggets                     DQ Chocolate Chip Cooke Sandwich(R)
Beef Nuggets                        DQ Push
Fried Mushrooms                     Blizzard(R)***
Turnover                            Low-Fat Soft Frozen Yogurt***
Biscuit Breakfast***                Dairy Queen(R) Frozen Cakes***
Traditional Breakfast***            Queen's Choice(R) Premium Hard
Salad Bar***                        Ice Cream***
</TABLE>

*    Mr. Misty, contract stores only.

**   All carbonated drinks must be of high quality in national  distribution and
     made by a primary manufacturer.

***  These items are Optional  menu  additions to be sold only by Dairy Queen or
     Dairy  Queen/Brazier  store  operators who have been  certified to do so by
     American  Dairy  Queen  Corporation  or  a  Territory  Operator  for  store
     franchise owners franchised directly by them in their respective areas. The
     product  weights/portions  for these items are specified in the  respective
     product preparation procedures from ADQC.

1/22/86       Note:  The Dairy  Queen soft serve and Brazier  food and  beverage
              items listed on the National  Optional menu,  shown above,  may be
              sold  by  Licensee  it  Licensee  desires  to do so,  but  are not
              required to be sold.

Reg. U.S. Pat. Off., Am. D.O. Corp.
<PAGE>
                         "QUEEN'S CHOICE" HARD ICE CREAM

                                PRODUCT ADDENDUM

LICENSEE: BOWLIN'S INCORPORATED                           DATE: 18 November 1986
          ---------------------------------------------         ----------------
STORE ADDRESS: 17 Miles East of Benson, Arizona on Interstate 10
               -----------------------------------------------------------------
               at Johnson Road.
               -----------------------------------------------------------------

     DAIRY  QUEEN OF  SOUTHERN  ARIZONA,  INC.  (DQSA)  has been  authorized  by
AMERICAN DAIRY QUEEN  CORPORATION  (ADQ) to use the "Dairy Queen" hard ice cream
products  identified by the brand name and  trademark  "Queen's  Choice"  and/or
such.  other brand name(s) or trademarks) as may be authorized  periodically  by
ADQ.

     You, the undersigned  Licensee(s)  have read and do understand and agree to
all the criteria  outlined by DQSA necessary in implementing  the hard ice cream
program "Queen's Choice,, into your present Dairy Queen Store. Now, therefore,

     You,  as a  Licensee  of DQSA,  are  authorized  to use  only ADQ  approved
products,  equipment,  and packaging for the hard ice cream program.  This is an
addendum to your existing  "Dairy Queen" License  Agreement  specified below and
the sale of the hard ice cream  products shall in all respects be subject to the
terms and conditions of that Agreement except as modified herein.

     The undersigned hereby agrees that it will truthfully  represent the nature
and  quality of the hard ice cream  products to the  consumer  and will take all
affirmative action necessary to comply with all federal,  state, and local laws,
ordinances, and regulations relating to the labeling,  advertising, and sales of
hard ice cream products.

     DQSA hereby  notifies  Licensee  that the  "Queen's  Choice" hard ice cream
program is  License  Fee  bearing  to DQSA,  and shall be the sum Of 4% of total
gross  sales,  exclusive  of sales tax, of the  "Queen's  Choice" hard ice cream
product. The method of collection of said License Fee shall be exactly as on the
soft-serve DAIRY QUEEN in the original License Agreement that is attached to and
made a part of and mentioned below.

     In the matter of Advertising  relating to "Queen's  Choice" hard ice cream,
if and when "Queen's  Choice" hard ice cream shall be declared a regular  system
menu item by ADQ (cease being  classified  a "test"  product item and declared a
full  fledged  regular  system-wide  Dairy  Queen  food  product,   optional  or
otherwise),  then and at that time the advertising of said item shall be handled
in somewhat the same manner as current Dairy Queen License  Agreement Stores are
handling the advertising of their other Dairy Queen products, to wit:

     Licensee  shall  pay to DQSA are not less  than 3% nor more than 5% of such
sales,  excluding  sales taxes,  toward the  promotion and  advertising  of said
product.  Licensee  further  agrees to  participate  and  cooperate  in the said
advertising  and promotion of said product.  To this end DQSA reserves the right
in its sole  discretion to establish and organize  advertising  and  promotional
programs to be conducted  during the year and shall further  notify  Licensee of
advertising  fee  to be  paid  by  him  during  such  period.  Payment  of  such
advertising  fee shall be made to DQSA on or before the 3rd day of each calendar
month with respect to said gross sales during the previous calendar month. It is
further understood and agreed upon that the 3 (three) year Supplemental "Queen's
Choice" ADI Sale,  Promotion Pledge will stay in effect and is a required pledge
for all Dairy Queen Stores regardless of when they begin with the Hard Ice Cream
Program. R.E: Section III, page 2 Addendum 4A to the 'Agreement".

                                        DAIRY QUEEN OF SOUTHERN ARIZONA, INC.

By /s/ Mildred L. Hanigan               BOWLIN'S INCORPORATED
   --------------------------------     ----------------------------------------
   President - Mildred L. Hanigan       Licensee

                                        BY: /s/  C. C. Bess, Exec. V. Pres.
                                            ------------------------------------
                                            Licensee
<PAGE>
                                  SUPPLEMENTAL

                                "Queen's Choice"

                           ADI Sales Promotion Pledge

LICENSEE: BOWLIN'S INCORPORATED                           DATE: 18 November 1986
          ---------------------------------------------         ----------------

STORE ADDRESS: 17 Miles East of Benson, Arizona, on
               -------------------------------------
               Interstate 10 at Johnson Road
               -----------------------------

STORE NUMBER:                                             ADI #     0212
             -------------------------------------------       -----------------

PLEDGE EFFECTIVE DATES: November            1986     to    November        1989
                       ----------------------------       ----------------------
                        Month               Year            Month          Year

         12         months fully or partially open during fiscal year.
--------------------

The  undersigned  understands  that  the  preliminary  introduction  of the  new
optional  "Queen's  Choice"  Hard Ice Cream  Program is intended to be completed
over a period of two or more years to provide appropriate lead time for bringing
manufacturing on line,  developing initial customer acceptance,  and providing a
<PAGE>
solid base of support  for a  system-w4-de  introduction  of the  program.  As a
demonstration  to American  Dairy Queen  Corporation  ("ADQ") and Dairy Queen of
Southern  Arizona,  Inc.  ("DQSA")  of the  high  level of  initial  advertising
supporter the "Queen's  Choice" Hard Ice Cream Program which the  undersigned is
prepared to make,  and as an inducement to ADQ and DQSA to establish and collect
similar  pledges  for the  Supplemental  "Queen's  Choice"  ADI Sales  Promotion
Program from other stores in the  undersigned's  ADI,  and as an  inducement  to
other  licensees  within  the  ADI to  pledge  support  for  said  program,  the
undersigned  represents  that he has  familiarized  himself  with DQSA  Bulletin
41984-5  dated August 2, 1984,  describing  the "Queen's  Choice" Hard Ice Cream
Program, that he will participate in the program upon introduction in his ADI in
accordance with said DQSA Bulletin,  and the undersigned pledges,  effective the
date of  introduction  of the  program in his ADI, to  participate  in a special
advertising  program to support the "Queen's Choice" product  introduction for a
period of the remaining portion of DQSA's fiscal year ending December 31, during
which the program becomes  effective in the  undersigned's ADI and for the three
succeeding  fiscal years. The undersigned  recognizes that "Queen's Choice" Hard
Ice Cream is a new and optional  product  line which may not receive  sufficient
customer  acceptance  to be continued  by ADQ and DQSA as an approved  optional.
product  line,  and that ADQ and  DQSA  reserve  the  right to  discontinue  the
"Queen's  Choice" Hard Ice Cream  Program on sixty (60) days prior notice to the
undersigned if the sales of hard ice cream in the system represent less than two
percent  (2%)  of  total  retail  sales  in the  system.  In the  vent  of  such
discontinuance, this pledge shall terminate.

For the time period specified above, the undersigned  agrees to pay to DQSA as a
supplemental  advertising  fee an amount  equal to the greater of $ 100.00** per
month;  or an amount equal to not less than three  percent  (3%),  nor more than
five percent (5%) of the  undersigned's  gross retail sales (net of retail sales
tax) of hard ice cream products sold by the undersigned. DQSA will determine and
notify the undersigned of the exact percentage  prior to the  introduction  date
and thereafter prior to December 31 of each year,  except for any year for which
the Percentage is to be unchanged from the preceding year. The aforesaid amounts
shall be paid to DQSA  monthly,  along with such reports and  reporting  data as
DQSA may from to time  require.  The  undersigned  understands  that the amounts
collected  pursuant to this pledge  will be  expended  by DQSA as  specified  in
Bulletin  #1984-5  dated August 2, 1984 RE:  Section III, page 2, Addendum 4A to
the "Agreement".

DAIRY QUEEN OF SOUTHERN ARIZONA, INC.     LICENSEE:

/s/ Mildred L. Hanigan                    BOWLIN'S INCORPORATED
--------------------------------------    --------------------------------------
President - Mildred L. Hanigan

                                          BY: /s/ C. C. Bess, Exec. V. Pres.
                                              ----------------------------------DAIRY QUEEN OPERATING AGREEMENT

                       "DAIRY QUEEN"' OPERATING AGREEMENT

     This Agreement  entered into this lst day of September 1982, by and between
Interstate Dairy Queen Corporation of the city of Atlanta, county of Fulton, and
state of Georgia hereinafter referred to as Licensor," and Bowlin's,  Inc. d/b/a
DQ of Bluewater,  New Mexico,  of the city of Bluewater,  county of Valencia and
state of New Mexico, hereinafter refered to as "Licensee".

     WHEREAS,  Licensor  is a  licensee  of  American  Dairy  Queen  Corporation
(hereinafter referred to as "American") in certain geographical areas, including
the territory which includes the Authorized  Location  hereinafter set forth, of
the right to license others, in accordance with the terms of this Agreement,  to
use the "Dairy  Queen"  trademark,  service  mark and trade name which have been
registered in the United State Patent Office,  in each state of the union and in
foreign  countries,  as well as those  trademarks  and service  marks, a list of
which is attached  hereto and made a part hereof as Appendix A (hereinafter  all
of the foregoing collectively referred to as "Trademarks"); and,

     WHEREAS,  Licensor  and its  Predecessors  in  interest  acting  under said
license  instituted,  developed,  promoted  and  established  the "Dairy  Queen"
franchise business and system in the aforesaid territory,  which consists of the
sale of distinctive dairy products, food products,  beverages and other products
and services under American's  Trademarks and utilizing in connection  therewith
certain types of facilities, equipment, supplies, ingredients, merchandising and
business techniques and methods and sales promotion programs developed from time
to time; and,

     WHEREAS,  it is the  purpose of Licensor to provide to Licensee in a retail
store  outlet a system to control and make uniform the  operation of  facilities
and equipment  together with the quality of products,  the use and protection of
the  Trademarks  and make available  uniform and approved  equipment,  supplies,
ingredients,  merchandising  and  business  techniques  and the sales  promotion
programs of American; and,

     WHEREAS Licensee desires to operate a "Dairy Queen" retail store as part of
the "Dairy Queen" system and to enter into this Operating  Agreement  subject to
the conditions and controls herein prescribed for the purpose of offering to the
public  products and services of uniformly high quality and standards to the end
of  protecting  the interests of Licensee,  of Licensor,  of American and of all
other persons engaged in said business; and,

     WHEREAS it is the intent of both  Licensor and Licensee to preserve  within
the context of a "Dairy Queen" retail store  continuing  consumer  confidence in
the  reliability  and quality of all products sold under any of the  Trademarks;
and,  each party  desires  that all products  sold under any of the  Trademarks,
consistently  conform to the highest expectations of consumers of such products;
and; whereas,  by this Agreement the parties  contemplate that Licensee's store,
in addition to normal  "Dairy Queen" food and beverage  products,  may also sell
Permitted Products, as defined hereinafter.

     NOW, THEREFORE, in consideration of the promises and of the mutual promises
and  covenants  herein  contained,  the  grant  by  Licensor  of this  Operating
Agreement  and the payment by Licensee of the various fees provided in Paragraph
9 hereof, it is agreed by and between the parties hereto as follows:
<PAGE>
                                GRANT OF LICENSE

Licensor's        1.       Licensor  hereby  grants to Licensee,  subject to all
Grant to                   the terms,  conditions  and  provisions  hereof,  the
Licensee                   right and license to:

                           1.1      Establish  and operate a retail  store under
                                    the name "Dairy Queen" at

Mailing Address;

DQ of Bluewater                                      I-40 x Exit 72
-----------------                           ---------------------------------
                                                        (Street)
c/o Bowlin's, Inc.
--------------------

136 Louisiana, N.E.                          Bluewater, New Mexico  87005
--------------------                      ----------------------------------
                                          (City)       (State)         (Zip)
Albuquerque, NM 87108               hereinafter referred to  as  the "Authorized
---------------------               Location"  (provided,  however, in the event
                                    an Authorized  Location is not designated on
                                    the date hereof,  and such location,  is not
                                    designated  herein by Licensor within ninety
                                    (90) days after such  date,  this  Agreement
                                    shall  become null and void and all deposits
                                    including   the   franchise   fee  shall  be
                                    returned to Licensee).

                           1.2      Use   at   the   Authorized   Location   the
                                    Trademarks  on and in  association  with the
                                    sale of all  uniform and  approved  products
                                    And services as American may authorize  from
                                    time  to  time,   and  with  approved  sales
                                    promotion programs relative thereto.

                           1.3      Use   at   the   Authorized   Location   the
                                    Trademarks  on and in  association  with the
                                    uniform equipment,  supplies and ingredients
                                    for the products approved by American.

                           1.4      Employ  in the  business  of said  store the
                                    merchandising,  sales promotion programs and
                                    business  methods and  techniques  developed
                                    and approved by American.

Acceptance        2.       Licensee  hereby   accepts  the  above  license  from
by Licensee                Licensor subject' to all the terms, provisions    and
                           conditions  hereof and  agrees  that  Licensee  shall
                           cause  to  have a  "Dairy  Queen"  store  established
                           within  180  days  of  the  date  hereof  (unless  an
                           extension of time is expressly  authorized in writing
                           by Licensor),  and thereafter maintained and operated
                           at the Authorized  Location,  under Licensee's active
                           and continuous supervision

                                       -2-
<PAGE>

                           once  management  and upon the standards  hereinafter
                           provided. Licensee further expressly acknowledges and
                           agrees:

                           2.1      American  is the owner tot all right,  title
                                    and interest in and to the  trademarks,  and
                                    the  good  will  attributable   thereto  the
                                    business  in  connection   with  which  said
                                    Trademarks  have been,  are and will be used
                                    at the Authorized Location.  Licensor is the
                                    licensee of the right to use the  Trademarks
                                    in  the   territory   which   includes   the
                                    Authorized   Location.   Specifically,   but
                                    without  limiting  the  foregoing,  Licensee
                                    disclaims  any  and  all  right,  title  and
                                    interest in or to the  Trademarks and to the
                                    good will  associated with the Trademarks of
                                    the  "Dairy   Queen"  retail  store  at  the
                                    Authorized  Location  and  acknowledges  and
                                    agrees  that  all  such  good  will  is  the
                                    exclusive property of American.

                           2.2      The Trademarks are valuable  property rights
                                    owned by American.

                           2.3      The   Trademarks   shall  be  used  only  in
                                    connection  with such  products and services
                                    as may be approved or  specified by American
                                    and  shall at all  times  be used  only in a
                                    manner approved by American.

                           2.4      Licensee's   right   to   the   use  of  the
                                    Trademarks   is   specifically   limited  to
                                    Licensee's  retail  store  operation  at the
                                    Authorized Location.

                           2.5      Licensee  shall  use  no  other  trademarks,
                                    trade   names  or  service   marks  in  said
                                    business except those authorized by American
                                    and as set forth in  Appendix A except  with
                                    the prior written consent of American.

                           2.6      Licensee  shall  not  use the  words  "Dairy
                                    Queen" or any of the Trademarks, or any word
                                    or mark  similar  thereto,  as a part of its
                                    corporate  or  business  name  unless  first
                                    approved in writing by  American,  and shall
                                    only  use the  words  "Dairy  Queen"  and no
                                    other  words  whatsoever   except  with  the
                                    express  written  consent of American as the
                                    trade  name on the store from which the said
                                    products and services are sold. In the event
                                    American  does  approve the use of the words
                                    "Dairy Queen" or any other Trademarks,  as a
                                    part of  Licensee's  corporate  or  business
                                    name,  Licensee  shall cause such name to be
                                    changed so as to eliminate those words and

                                       -3-
<PAGE>
                                    Trademarks  from the name within thirty (30)
                                    days after termination of this Agreement.

                           2.7      Licensee  shall  adopt  and  follow  in good
                                    faith  the  systems,  programs  and  methods
                                    prescribed by Licensor for Licensee's retail
                                    operation in accordance  with this Operating
                                    Agreement.

                           2.8      Neither  Licensee  nor any person  owning an
                                    interest  directly or indirectly in Licensee
                                    shall  directly  or  indirectly  operate  or
                                    permit to be operated  or hold any  interest
                                    (other  than 1% or  less of the  outstanding
                                    stock  or debt of any  class  of any  public
                                    company)  in any ant or  fast-food  business
                                    other than ar or its  affiliates at the time
                                    of  signing  or  one   authorized   by  this
                                    Agreement  without the prior written consent
                                    of Licensor.

                                      TERM

Term              3.       The  License  granted  herein  shall  continue  until
                           terminated  by  Licensee  with or without  cause,  on
                           sixty (60) days prior written notice to Licensor,  or
                           until  otherwise  terminated  by either  Licensee  or
                           Licensor in  accordance  with the  provisions of this
                           Agreement.

                      TRADEMARK STANDARDS AND REQUIREMENTS

General           4.       Licensee agrees  that nothing in this Agreement gives
Declarations               any title to or interest in the Trademarks except the
                           right to use the same under the terms and  conditions
                           of this  Agreement  and that  Licensee's  use thereof
                           inures to the benefit of American.  Specifically, but
                           without limiting the foregoing, Licensee acknowledges
                           and  agrees  that  American  has  the  right  and may
                           distribute for its own account  products  indentified
                           by the  Trademarks  through  not only  "Dairy  Queen"
                           retail  stores  but  through  any other  distribution
                           method which may from time to time be established.

Use of                     4.1      Licensee  shall   confine,   his-use  of the
Trademarks                          Trademarks to  or  in  association  with the
                                    sales   promotion   programs   and  sale  of
                                    products   and   services   which  shall  in
                                    quality,  mode and conditions of manufacture
                                    and  sale,   comply  with  such   reasonable
                                    standards as are  established or approved by
                                    American.  In order to promote  and  protect
                                    the  business   interests  of  each  of  the
                                    parties,  the  value  of the  "Dairy  Queen"
                                    business and the business interests of other
                                    persons engaged therein, uniformity shall be
                                    maintained in the type, standard and

                                       -4-
<PAGE>
                                    quality  stores,  equipment,   supplies  and
                                    ingredients used-therein, and the conditions
                                    of preparation  and the procedures  employed
                                    in the sale of said products and services.

Acknowledge-                        4.2      Licensee     agrees     that    the
ment of                                      provisions,    restrictions    and
Necessity of                                 controls    provided    in    this
Uniformity                                   Operating    Agreement   are   all
                                             necessary,      reasonable     and
                                             desirable    for   the    purposes
                                             expressed    herein    and    that
                                             Licenscee's   business   shall  be
                                             conducted   in   accordance   with
                                             Licensor's and American's  uniform
                                             requirements   with   respect   to
                                             quality,  production,  appearance,
                                             cleanliness,             services,
                                             merchandising  and sales promotion
                                             standards.  Licensee  acknowledges
                                             and   agrees   that    substantial
                                             uniformity in facilities products,
                                             services   and    operations   are
                                             essential  to  the  conduct  of  a
                                             system.  such as the "Dairy Queen"
                                             system,   and  therefore   further
                                             agrees  to  honor  and   implement
                                             recommendations  of  American  and
                                             Licensor directed to enhancing and
                                             furthering such uniformity.

Equipment                           4.3      Licensee  agrees  to  purchase  and
and Supplies                                 use, in the operation of Licensee's
                                             Dairy  Queen"  retail  store,  only
                                             equipment,   supplies,  ingredients
                                             and services  which are approved by
                                             American  or by  Licensor.  Nothing
                                             herein shall  be  construed  as  an
                                             attempt to limit  unreasonably  the
                                             sources  from  which  Licensee  may
                                             procure    equipment,     supplies,
                                             ingredients or services. Rather, it
                                             is the  intention  of  the  parties
                                             that   such   items    conform   to
                                             American's       standards      and
                                             specifications     of    consistent
                                             quality  and  uniformity.   Nothing
                                             contained herein shall be deemed to
                                             require  American  or  Licensor  to
                                             approve  an  inordinate  number  of
                                             suppliers   of  a  given   item  or
                                             service  which  in  the  reasonable
                                             judgment  of  American  or Licensor
                                             would   result   in   higher   cost
                                             generally to  Licensor's  licensees
                                             or prevent effective and economical
                                             supervision    of    suppliers   by
                                             American or Licensor.  Requests for
                                             approval  or  additional  suppliers
                                             shall  be  in  writing   and  shall
                                             contain   such    information    as
                                             American     and    Licensor    may
                                             reasonably  request.  American  and
                                             licensor   reserve   the  right  to
                                             charge  back  to  Licensee  or  the
                                             proposed  supplier  all  reasonable
                                             expenses  incurred  in  considering
                                             requests for approval.

Approved                           4.4       Complete  and  detailed  uniformity
Adaptations                                  under many varying  conditions  may
                                             not  be  possible or practical  and
                                             Licensor and

                                       -5-
<PAGE>
                                             American   reserve  the  right  and
                                             privilege,    at   Licensor's   and
                                             American's  sole  discretion and as
                                             Licensor  and  American may deem in
                                             the best  interest of all concerned
                                             in any specific instances,  to vary
                                             standards  to  accommodate  special
                                             needs of Licensee's Authorized Site
                                             or that of any other licensee based
                                             upon   the   peculiarities   of   a
                                             particular    site   or   location,
                                             density  of  population,   business
                                             potential,   population   of  trade
                                             area,  existing business practices,
                                             requirements  of  local  law or any
                                             condition    which   Licensor   and
                                             American  deem to be of  importance
                                             to the successful operation of such
                                             licensee's business.

Litigation                          4.5      In the  event any  person,  firm or
                                             company,  who is not a licensee  or
                                             franchisee of American or Licensor,
                                             uses   or   infringes    upon   the
                                             Trademarks,  American shall control
                                             all  litigation  and  shall be sole
                                             judge  as to  whether  or not  suit
                                             shall be instituted or other action
                                             taken.

Notice of                           4.6      Licensor and American hereby advise
Potential                                    Licensee  that  Licensor,  American
American and/or                              and/or   affiliates   of  American
Licensor Profit                              and/or  Licensor  may  from time to
                                             time  make  available  to  Licensee
                                             goods, products and/or services for
                                             use  in  Licensee's  "Dairy  Queen"
                                             retail store in respect to the sale
                                             or  provision  of  which  Licensor,
                                             American   and/or   affiliates   of
                                             American and/or Licensor may make a
                                             profit.  Licensor  further  advises
                                             Licensee  that  Licensor,  American
                                             and/or   affiliates   of   American
                                             and/or  Licensor  may from  time to
                                             time  receive   consideration  from
                                             suppliers  and/or  manufacturers in
                                             consideration of services  provided
                                             or rights  licensed to such persons
                                             by  American,   Licensor  or  their
                                             respective affiliates.

                        FACILITY STANDARDS AND MAINTENANCE

                           5.       The  following   provisions  and  conditions
                                    shall  control  with  respect to  Licensee's
                                    Authorized Location and retail stores:

Store Facility                      5.1      Licensee  agrees  that  the  retail
                                             store  shall  be  constructed   and
                                             equipped   in    accordance    with
                                             American's    currently    approved
                                             specifications   and  standards  in
                                             respect  to  building,   equipment,
                                             inventory,    signage,    fixtures,
                                             location  and design and  accessory
                                             features.

Future                              5.2      Any  replacement,   reconstruction,
Alteration                                   addition    or   modification    in
                                             building,  equipment or signage, to
                                             be made  hereafter,  whether at the
                                             request of
                                       -6-
<PAGE>
                                             Licensee or of  Licensor,  shall be
                                             made  in  accordance  with  written
                                             specifications  approved in advance
                                             by Licensor or  American.  Licensor
                                             and American shall not unreasonably
                                             withhold such approval.

Maintenance                         5.3      The building, equipment and signate
                                             employed    in   the   conduct   of
                                             Licensee's    business   shall   be
                                             maintained   in   accordance   with
                                             maintenance      schedules      and
                                             procedures   or   specific    lists
                                             prepared by Licensor and based upon
                                             periodic    inspections    of   the
                                             premises       by        Licensor's
                                             representatives. Within a period of
                                             ninety  (90) days after the receipt
                                             of such maintenance lists, Licensee
                                             shall    effect    the   items   of
                                             maintenance    reasonably  provided
                                             therein  including  the  repair  of
                                             defective    items    and/or    the
                                             replacement  of   unrepairable   or
                                             obsolete  items  of  equipment  and
                                             signage.  Routing maintenance shall
                                             be  conducted  in  accordance  with
                                             general   schedules   published  by
                                             Licensor  or   American   and  made
                                             available to Licensee.

Relocation                          5.4      Should  it  become  necessary,   on
                                             account  of  condemnation,  sale or
                                             other cause,  including  expiration
                                             or  cancellation of lease or rental
                                             contract,  to relocate  said store,
                                             Licensor   shall   grant   Licensee
                                             authority  to do so within a radius
                                             of 1,000  years  of the  Authorized
                                             Location,  provided the new site is
                                             reasonably   suited  for  a  `Dairy
                                             Queen"  retail store in  accordance
                                             with Licensor's standards for store
                                             sites,  does not infringe on rights
                                             of another licensee,  is reasonably
                                             distant  from other  "Dairy  Queen"
                                             retail  stores,  and the new retail
                                             stores is constructed, equipped and
                                             opened for  business in  accordance
                                             with  the  current   standards   of
                                             American  at that time  within  one
                                             year after discontinuing  operation
                                             of a "Dairy  Queen" retail store at
                                             the previous Authorized Location.

Modernization                       5.5      Each and every transfer as provided
and/or Replace-                              in  paragraph  9.10 hereof shall be
ment of Time                                 expressly conditioned upon Licensee
of Transfer                                  promptly  performing  and effecting
                                             such items of modernization  and/or
                                             replacement of building,  equipment
                                             and  signage  as may be  reasonably
                                             necessary  to  permit  the  same to
                                             conform  to  the   standards   then
                                             prescribed    by    American    for
                                             similarly       situated      store
                                             operations. Licensee recognizes and
                                             acknowledges  that the requirements
                                             of  this  Paragraph  5.5  are  both
                                             reasonable  and necessary to insure
                                             continued  public   acceptance  and
                                             patronage    of,   and   to   avoid
                                             deterioration or  obsolescence  in
                                             the  business conducted hereunder.

                                       -7-
<PAGE>
               PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS

                           6.       The following  provisions shall control with
                                    respect to products and operations:

Authorized                          6.1      Licensee's    business   shall   be
Product Line                                 confined  to  the  preparation  and
                                             sale of only such  products as from
                                             time to  time  are  designated  and
                                             approved  by  American  for sale by
                                             Licensees which are parties to this
                                             form of  operating  Agreement.  The
                                             premises  upon which said  business
                                             is  operated  shall not be used for
                                             any other  business and there shall
                                             not be sold  or  offered  for  sale
                                             there  from any  other  product  or
                                             service (excepting the preparation,
                                             storage   and  sale  of   Permitted
                                             Products)   without   the   written
                                             consent of American.  Specifically,
                                             but    without    limitating    the
                                             foregoing,       alcoholic       or
                                             intoxicating beverages shall not be
                                             sold  or   offered   for   sale  or
                                             otherwise    handled    upon   said
                                             premises.

Approved Menu                       6.2      Attached  hereto  as  Appendix B is
                                             the currently  approved   menu  for
                                             Licensee's  retail store.  American
                                             may   from   time  to   time   make
                                             reasonable  modifications  to  said
                                             approved    menu    provided   said
                                             modifications  are made in  respect
                                             to all  licensees  which  have this
                                             form of Operating Agreement and are
                                             located  in  similar  areas  of the
                                             country. In addition,  Licensee may
                                             from time to time request variation
                                             from the currently  approved  menu.
                                             Such variations  shall only be made
                                             with the prior  written  consent of
                                             American.

Authorized                          6.3      Licensee  shall  use  in  preparing
Ingredients,                                 products  only  such   ingredients,
Formulas,                                    formulas   and   supplies   as  are
Supplies,                                    specified  by American  and in such
Preparation;                                 portions,   sizes,  appearance  and
Subject to Change                            packaging   as  are  set  forth  in
by American                                  American's   most  current   "Store
                                             Management  Operations  Manual" and
                                             "product    preparation    charts".
                                             Copies   of  the   current   "Store
                                             Management  Operations  Manual" and
                                             "product  preparation  charts" have
                                             been   supplied  to  Licensee   by.
                                             Licensor contemporaneously with the
                                             execution    of   this    Operating
                                             Agreement.  "Licensee  acknowledges
                                             and   agrees   that  these  may  be
                                             changed   from   time  to  time  by
                                             American   and  that   Licensee  is
                                             obligated   to   conform   to   the
                                             requirement,  as  so  changed  from
                                             time to time.  All  other  supplies
                                             including cones, cups,  containers,
                                             eating  utensils,  napkins and all
                                             other customer service materials of
                                             all  descriptions  and types shall
                                             meet the  standards  of  uniformity
                                             and quality as

                                       -8-
<PAGE>
                                             now or hereafter are reasonably set
                                             by  American.   Licensee  shall  be
                                             furnished  with  lists of  approved
                                             equipment,   supplies,  ingredients
                                             and services.

Serving and                         6.4      All   sales   Promotion   material,
Promotion Items                              customer   "good    will"    items,
                                             cartons,  containers,  wrappers and
                                             paper  goods,  eating and  serving,
                                             utensils,    customer   convenience
                                             items (including napkins, baby bibs
                                             and  disposal  containers)  used in
                                             the  sales   promotion,   sale  and
                                             distribution    of   all   products
                                             covered by this operating Agreement
                                             shall,  where  practicable  contain
                                             one or more of the  Trademarks  and
                                             indicate  that it is  produced  and
                                             sold   under   the   authority   of
                                             American  and shall be  subject  to
                                             approval  by  Licensor  or American
                                             before being used.

Maintenance                          6.5     Licensee's  said  business shall be
and Sanitation                               operated  and   maintained  at  all
                                             times  in  compliance  with any and
                                             all applicable health  and sanitary
                                             standards  prescribed  by American,
                                             Licensor   and  by  qovernmental
                                             authority. In addition to complying
                                             with such standards,  it such Store
                                             shall be subject to any sanitary or
                                             health     inspection     or    any
                                             Governmental    authorities   under
                                             which  it  may be  rated  in one or
                                             more  than one  classification,  it
                                             shall be maintained and operated so
                                             as to be rated in highest available
                                             health and sanitary  classification
                                             with  respect to each  governmental
                                             agency inspecting the same.

Inspection and                      6.6      American,    Licensor     or    the
Recommendation                               authorized representative of either
                                             shall   have  the  right  to  enter
                                             Licensee's   store  all  reasonable
                                             times  during the  business day for
                                             the  purpose  of  making   periodic
                                             inspections to ascertain if all the
                                             provisions   of   this    Operating
                                             Agreement  are  being  observed  by
                                             Licensee and to inspect  Licensee's
                                             said store, land and equipment, and
                                             to test,  sample  and  inspect  his
                                             supplies,  ingredients and products
                                             as well as the storage, preparation
                                             and  formulation  thereof  and  the
                                             condition   of    sanitation    and
                                             cleanliness    in   the    storage,
                                             production,  handling  and  serving
                                             thereof.

Period of                           6.7      Licensee's store,  shall  be opened
Operation                                    to the public and  operated  twelve
                                             months per year and at least twelve
                                             hours  each  day of the  year.  Any
                                             variance from this  provision  must
                                             be   authorized   in   writing   by
                                             Licensor. Acts of God, war, strikes
                                             or riots  preventing  Licensee from
                                             temporarily   complying   with  the
                                             foregoing   shall  to  that  extent
                                             suspend compliance therewith.

                                       -9-
<PAGE>
Notice of                           6.8      Licensee  acknowledges  that  he is
Existence of                                 aware   of   the  fact that present
Different Forms                              licensees of Licensor and  American
of License                                   operate under a number of different
Agreements                                   forms   of   agreement   and   that
                                             consequently     Licensor's     and
                                             American's  obligations  and rights
                                             in  respect  to  their   respective
                                             licenses may differ  materially  in
                                             certain instances.

                       PERSONNEL AND SUPERVISION STANDARDS

                           7.       The  following   provisions  and  conditions
                                    shall  control  with  respect to  personnel,
                                    training and supervision:

Management                          7.1      Licensee shall adopt and use as his
System                                       continuing  operational routing the
                                             standard  "Dairy Queen"  management
                                             system   as  well   as   American's
                                             standards  with  respect to product
                                             preparation,         merchandising,
                                             employee  recruitment and training,
                                             equipment and facility  maintenance
                                             and  sanitation.  From time to time
                                             American will revise these programs
                                             to  meet  chancing   conditions  of
                                             retail   operation   in  the   best
                                             interest  of "Dairy  Queen"  retail
                                             stores,  and  Licensee  shall adopt
                                             and implement any such changes.

Training                            7.2      Licensee   shall,   at   Licensee's
                                             expense,  attend  American's  store
                                             -management  training program, at a
                                             place   to   be    designated    by
                                             American.-  prior to the opening of
                                             Licensee's   store.  In  the  event
                                             Licensee  fails  to  complete  such
                                             training    to    the    reasonable
                                             satisfaction    of    American   or
                                             Licensor,   Licensor   may   within
                                             thirty (30) days thereafter declare
                                             this   Agreement   null   and  void
                                             whereupon  all  deposits  including
                                             the franchise fee shall be returned
                                             to  Licensee.  If  during  the term
                                             hereof Licensee operates said store
                                             with a manager  other than himself,
                                             Licensee   shall,   at   Licensee's
                                             expense,   cause  such   person  to
                                             attend  and  successfully  complete
                                             such training program.

Staffing                            7.3      Licensee  shall hire and  supervise
                                             efficient,   competent,  sober  and
                                             courteous  operators  and employees
                                             for the  operation  of the business
                                             and  set  and  pay   their   wages,
                                             commissions  and incentives with no
                                             liability  therefor  on American or
                                             Licensor.  Licensee  shall  require
                                             all his  employees to work in clean
                                             uniforms  approved  by Licensor but
                                             furnished  at the cost of  Licensee
                                             or his  employees  as Licensee  pay
                                             determine.  No employee of Licensee
                                             shall be deemed  to
                                      -10-
<PAGE>
                                             be  an   employee  of  Licensor  or
                                             American    for   any    purpose(s)
                                             whatsoever.

Internal                            7.4      Licensor   shall   provide  or make
Training                                     available  to  Licensee an in-store
Program                                      training   program  for  all  store
                                             employees. Licensee shall train and
                                             periodically   re-train  all  store
                                             employees  using the training  aids
                                             made  available by  Licensor.  From
                                             time to time, American will revised
                                             such  training  materials  and aids
                                             and it or  Licensor  make  the same
                                             available to Licensee for purchase.

Attendance at                       7.5      Licensee,  or  manager of Licensee,
Meetings                                     at Licensee's expense, shall attend
                                             at least one national,  regional or
                                             approved   local   marketing   area
                                             meeting  each year  which  Licensor
                                             and/or American  originates for and
                                             on   behalf   of   "Dairy    Queen"
                                             operators  to set forth new methods
                                             and  programs  in store  operation,
                                             training management, sales and sale
                                             promotion    programs.     Licensor
                                             further  strongly  recommends  that
                                             key   employees  of  Licensee  also
                                             attend such meeting.

                            SALES PROMOTION PROGRAMS

Sales Promotion                     8.1      Licensor   and  Licensee,  together
Programs and                                 with  other  licensees of American,
Payment to                                   shall   cooperate   in   the  sales
American of                                  promotion   programs   of  approved
Expenses for                                 products. To this end; American has
Administering                                reserved the right to establish and
Same                                         organize  sales  promotion programs
                                             from  time  to  time  and  Licensee
                                             agrees  to  pay  to  Licensor   for
                                             remittance   to  American  a  sales
                                             promotion  program fee as set forth
                                             in Paragraph  9.2 hereof.  Licensee
                                             acknowledges    and   agrees   that
                                             American ,has had in the past,  and
                                             shall  in  the  future  have,   the
                                             discretion       to       determine
                                             expenditures of funds; collected in
                                             respect to sales promotion programs
                                             and  as to  the  selection  of  the
                                             promotional  materials and programs
                                             for  which  said  expenditures  are
                                             made,   provided,   however,   that
                                             American  shall  make a good  faith
                                             effort to extend  such funds in the
                                             general     best     interest    of
                                             participating  licensees.  Licensee
                                             acknowledges    and   agrees   that
                                             American  may   compensate   itself
                                             and/or  its   affiliates   for  the
                                             expense of administering such sales
                                             promotion programs.  Licensor shall
                                             advise    Licensee    annual,    of
                                             American's        expenses       in
                                             administering  said sales promotion
                                             programs.

Sales Promotion                     8.2      Licensee shall  only use such sales
Materials                                    promotion    program    or    other
                                             advertising    materials   as   are
                                             furnished,   approved   or  made
                                             available by or through American.

                                      -11-
<PAGE>
                                             Said  materials  shall be used only
                                             in a manner prescribed by American.
                                             American  shall  not   unreasonably
                                             withhold approval of any reasonable
                                             sales promotion materials.

Yellow Pages                        8.3      Licensee,  shall,  if  requested by
                                             Licensor,  list  separately,  or
                                             participate  in a  listing,  in the
                                             Yellow Pages of his local telephone
                                             directory  containing  such copy as
                                             may   reasonably  be  specified  by
                                             Licensor.  The cost of such listing
                                             shall  be paid by  Licensee,  or by
                                             Licensee  and  other  participating
                                             licensees  in the  case  of a joint
                                             listing. Licensor shall not specify
                                             an unreasonably expensive listing.

                    FEES, REPORTING AND FINANCIAL MANAGEMENT

Service, Set-Up,                    9.1      Licensee shall pay to Licensor as a
License and                                  Franchise,  service  and set-up fee
Sales Promotion                              $ 10,000 of which $ 5,000 has  been
Program Fees                                 paid  upon  the  execution  of this
                                             Agreement  and a balance of $ 5,000
                                             is payable in  accordance  with the
                                             terms  of   Appendix   C   attached
                                             hereto. Said service and set-up fee
                                             is intended to compensate  Licensor
                                             for  its  expenses  incurred,   and
                                             .services rendered, in establishing
                                             and setting up  Licensee's  initial
                                             operation.   In  addition  to  said
                                             service and set-up fee during,  the
                                             full   term   of   this   Operating
                                             Agreement,  and in consideration of
                                             the   rights   granted   hereunder,
                                             Licensee  shall pay to  Licensor as
                                             license   fee  in  respect  to  the
                                             rights  granted  herein equal to 4%
                                             of gross retail sales  exclusive of
                                             retail sales taxes of all products,
                                             goods and  wares of every  kind and
                                             nature sold from,  or in connection
                                             with the  operation  of  Licensee's
                                             "Dairy    Queen"    retail   store,
                                             including, but without limiting the
                                             generality of the foregoing,  sales
                                             of all  products  under  any  other
                                             Trademark as well as sales of other
                                             merchandise    whether    or    not
                                             identified by other brand names and
                                             which may be authorized for sale by
                                             American or  Licensor  from time to
                                             time provided,  notwithstanding the
                                             foregoing,  that no such continuing
                                             licensee  fee shall be payable with
                                             respect   to  sales  of   Permitted
                                             Products.  In  addition,   Licensee
                                             shall   pay   to    Licensor    for
                                             remittance   to  American  a  sales
                                             promotion  fee  to be  expended  in
                                             accordance  with the  provisions of
                                             Paragraphs 8.1. The sales promotion
                                             fee  shall  be a sum  equal  to not
                                             less  than 3% nor  more  than 5% of
                                             Licensee's  gross  retail sales net
                                             of sales taxes  (excluding sales of
                                             Permitted Products). Licensor shall
                                             determine

                                      -12-
<PAGE>
                                             and  notify  Licensee  of the exact
                                             percentage  prior to the  first day
                                             of each  fiscal  year  of  Licensor
                                             (except  no  notification  will  be
                                             given with  respect to any year for
                                             which  the   percentage  is  to  be
                                             unchanged from the preceding  year)
                                             Such  percentage  shall be the same
                                             as that to be employed  during such
                                             succeeding  year by the majority of
                                             "Dairy Queen"  licensees within the
                                             marketing  area  as  determined  by
                                             American  within  which  Licensee's
                                             store is located.

Computations                        9.2      All amounts due and owing hereunder
and Remittances                              shall  be  computed  at the  end of
                                             each    month's    operation    and
                                             remittance  for the  same  shall be
                                             made to  Licensor  on or before the
                                             day   of   the   following    month
                                             accompanied by the reports provided
                                             for in  Paragraph  9.4 hereof.  The
                                             computation  of said amounts  shall
                                             be   certified   and  sworn  to  by
                                             Licensee in the manner specified by
                                             licensor and Licensee  shall supply
                                             to  Licensor  such   supporting  or
                                             supplementary materials as Licensor
                                             may  reasonably  require  to verify
                                             the accuracy of such remittances.

Surcharge                           9.3      At  Licensor's option, Licensor may
Method of                                    require   Licensee   to   pay   to.
Precollection                                suppliers  of mix,  meat and  other
                                             products  and  ingredients  used in
                                             the  conduct  of  the   business  a
                                             surcharge  on  all  units  of  such
                                             commodities  purchased by Licensee.
                                             Said  surcharge  shall  be  paid to
                                             such  supplier  by  Licensee at the
                                             time    of    purchase    of   such
                                             commodities.  Said surcharge  shall
                                             be  established  by  Licensor  at a
                                             reasonable    rate    so    as   to
                                             approximate  the amount of licensee
                                             fee and sales  promotion  fee which
                                             will be payable by  Licensee.  Said
                                             surcharge  shall  be  paid  to said
                                             supplier  or   suppliers   for  the
                                             account of Licensor, the same to be
                                             regarded by the parties as a method
                                             of  precollection  of said  license
                                             and  sales   promotion   fees.  The
                                             amounts  so   collected   shall  be
                                             credited  by  Licensor  against the
                                             license  and sales  promotion  fees
                                             due from  Licensee  to  Licensor at
                                             the end of each month's operations.
                                             Licensor  shall  submit to Licensee
                                             on a monthly or  quarterly  basis a
                                             reconciliation  of said license and
                                             sales    promotion   fees   account
                                             setting   forth  the   credits   to
                                             Licensee's  account  by  reason  of
                                             amounts  collected  for Licensor by
                                             suppliers  by way of the  aforesaid
                                             surcharge   method.  In  the  event
                                             Licensee   shall   fail  to  submit
                                             reports    in    accordance    with
                                             paragraph  9.4,  Licensor  may make
                                             said reconciliation of amounts due

                                      -13-
<PAGE>
                                             in   conformance   with  its  best
                                             judgment   with   regard  to  said
                                             amounts  due  and  same  shall  be
                                             conclusive  as to the  amounts due
                                             Licensor  from   Licensee   unless
                                             within a period  of ten (10)  days
                                             after      mailing     of     said
                                             reconciliation   to   Licensee  by
                                             Licensor,     Licensee    provides
                                             evidence in a form satisfactory to
                                             Licensor  of the  correct  amounts
                                             due.   Licensee   shall  pay  such
                                             amounts,  if any, determined to be
                                             owed    pursuant   to   Licensor's
                                             reconciliation   within  ten  (10)
                                             days  after a mailing of notice to
                                             Licensee  by  Licensor if Licensor
                                             determines   that   Licensee   has
                                             over-paid    license    or   sales
                                             promotion  fees  on the  surcharge
                                             basis,  Licensor  shall  remit  to
                                             Licensee  an  amount  equal to the
                                             excess fees  collected at the time
                                             the    monthly    or     quarterly
                                             reconciliation     is     provided
                                             Licensee.

Reports and                         9.4      Licensee  shall   keep true records
Records                                      from which  all  sums payable under
                                             this  Agreement  and the  dates  of
                                             accrual   thereof  may  be  readily
                                             determined.   Licensee  shall  make
                                             written reports to Licensor in such
                                             form as  Licensor  may from time to
                                             time prescribe within fourteen (14)
                                             days after the end of each  month's
                                             operation  setting forth the amount
                                             of  gross  sales  of  all  products
                                             from,  or in  connection  with  the
                                             operation  of,  said  store and the
                                             business thereof during said month.
                                             In addition to the  foregoing,  and
                                             in    addition    to   such   other
                                             information  as  Licensor  may from
                                             time to time require,  said monthly
                                             report shall  accurately  set forth
                                             the  total  number of  ,gallons  of
                                             mix,  the total number of pounds of
                                             meat,  and the  quantity  of  other
                                             basic  commodities used during said
                                             month and the  sources  from  which
                                             said    mix,    meat   and    other
                                             commodities were purchased together
                                             with  a   complete   statement   of
                                             Licensee's     cost    of    labor,
                                             utilities, rent and each other cost
                                             of  operation.  For the  purpose of
                                             said  reports  the  date  of use of
                                             such    mix,    meat   and    other
                                             commodities  shall be  deemed to be
                                             the date of  receipt  at the store.
                                             Licensor,     American    or    the
                                             authorized representative of either
                                             shall  have the  right at all times
                                             during  the  business  day to enter
                                             Licensee's premises where books and
                                             records. relative to said store are
                                             kept,  and  to  inspect,  copy  and
                                             audit  such books and  records.  In
                                             the event that any such  inspection
                                             or audit, it reveals a variance of
                                             3% or more from data,  reported  to
                                             Licensor or  American,  in addition
                                             to any  other  rights  it may  have
                                             Licensor or

                                      -14-
<PAGE>
                                             American  may conduct  such further
                                             periodic audits and/or  inspections
                                             of Licensee's  books and records as
                                             it reasonably  deems  necessary for
                                             up to one year  thereafter and such
                                             further  audits and/or  inspections
                                             shall be at Licensee's sole expense
                                             including    without     limitation
                                             reasonable  professional  fees'
                                             travel and room and board  expenses
                                             directly related thereto.

Financial                           9.5      Licensee   agrees   to employ sound
Planning and                                 financial  management  practices in
Management                                   connection   with  the operation of
                                             said   business  and  to  that  end
                                             Licensee  shall  maintain  on forms
                                             approved or provided by Licensor or
                                             American a monthly  profit  plan, a
                                             monthly  profit and loss  statement
                                             and   a   monthly   balance   sheet
                                             accurately      reflecting      the
                                             operations  and  condition  of said
                                             business.   In   addition   to  the
                                             foregoing,  Licensee  shall  employ
                                             such  methods  of  record  keeping,
                                             bookkeeping    and   reporting   as
                                             Licensor  shall  from  time to time
                                             reasonably  require  and  copies of
                                             all monthly profit plans profit and
                                             loss       statements,        sales
                                             summaries and  breakdowns for the
                                             preceding  month shall be forwarded
                                             to   Licensor   on  or  before  the
                                             fourteenth  day  of  the  following
                                             month.

Payment                             9.6      Licensee agrees  to  pay  promptly,
of Debts                                     when due, all taxes and assessments
                                             that may be assessed  against  said
                                             premises   or  the   equipment   or
                                             supplies  used in  connection  with
                                             Licensee's business,  all liens and
                                             encumbrances   of  every  kind  and
                                             character created or placed upon or
                                             against  any of said  property  and
                                             all accounts and other indebtedness
                                             of every kind  incurred by Licensee
                                             in the conduct of said business. In
                                             the event  Licensee  should default
                                             in   making   any   such   payment,
                                             Licensor shall be  authorized,  but
                                             not  required,  to pay the  same on
                                             Licensee's   behalf  and   Licensee
                                             covenants   promptly  to  reimburse
                                             Licensor  on  demand  for any  such
                                             payment.  Any and all amounts owing
                                             to Licensor by Licensee  hereunder,
                                             whether  the same  arise  under the
                                             provisions of this  Paragraph,  9.6
                                             or under  any  other  provision of
                                             this Agreement, shall bear interest
                                             at 12%  per  annum  or the  maximum
                                             rate permitted by law, whichever is
                                             less,  from and  after  the date of
                                             accrual thereof.

Timely                              9.7      The  default  by  Licensee  in  the
                                             Payment   timely   payment  of  any
                                             indebtedness   owing  to   Licensor
                                             and/or   American,    or   to   any
                                             affiliates   of   Licensor   and/or
                                             American,   or   the   default   by
                                             Licensee  in  the  payment  of  any
                                      -15-
<PAGE>
                                            indebtedness  of  Licensee  or  with
                                            respect   to   which   Licensor   or
                                            American or any of Licensor's and/or
                                            American's     affiliates    is    a
                                            guarantor,  co-signer,  endorser  or
                                            obligor,  shall  constitute a breach
                                            of   this    Operation    Agreement,
                                            rendering   the  same   subject   to
                                            termination  in accordance  with the
                                            provisions  of  Paragraphs  10.1 and
                                            10.2 hereof.

Insolvency,                         9.8     In  the  event   that  Licensee  be
Etc.                                        declared insolvent or bankrupt,  or
                                            in  the   event   a   receiver   is
                                            appointed, this Operating Agreement
                                            shall automatically terminate as of
                                            the  date  of such  declaration  or
                                            appointment.

Liability and                       9.9     Licensee hereby  waives all  claims
Insurance                                   against  Licensor  and/or  American
                                            for damages to property or injuries
                                            to  persons   arising  out  of  the
                                            operation  of  Licensee's  business
                                            and Licensee  shall  indemnify  and
                                            save   Licensor   and/or   American
                                            and/or  the  affiliates  of  either
                                            harmless of and from any  damage
                                            or injury to  property  or  persons
                                            arising from or in connection  with
                                            the  operation of said  business or
                                            the   consumption  of  the  product
                                            thereof. Licensee further agrees to
                                            purchase and maintain in full force
                                            and effect  during the term of this
                                            Agreement,   at   Licensee's   sole
                                            expense,  liability insurance in an
                                            aggregate   amount  not  less  than
                                            $300,000     insuring     Licensee,
                                            Licensor    and    American    from
                                            liability  for  any  and  all  such
                                            damage  or  injury   and   Licensee
                                            further   agrees  to   deliver   to
                                            Licensor   a   proper   certificate
                                            evidencing  the  existence  of such
                                            insurance  coverage and  Licensee's
                                            compliance  with the  provisions of
                                            this  paragraph and which  provides
                                            that  Licensor and American will be
                                            given   thirty   (30)  days   prior
                                            written notice of material  change,
                                            termination or  Cancellation of the
                                            policy.   Said  insurance  coverage
                                            shall   commence  as  of  the  date
                                            Licensee   commences   operating  a
                                            "Dairy Queen" retail store or as of
                                            the date the Authorized Location is
                                            first identified as a site on which
                                            a "Dairy  Queen"  retail store will
                                            be operated,  whichever shall first
                                            occur.

Assignment and                      9.10    Licensee  agrees  not  to transfer,
Transfer                                    assign  or  alienate  his  interest
                                            herein or  hereunder in whole or in
                                            part  without  the  prior   written
                                            consent of Licensor,  which consent
                                            shall. not be withheld unreasonably
                                            but  Licensor  may insist  that any
                                            proposed     assignment    be    an
                                            assignment  of  all  of  Licensee's
                                            interest
                                      -16-
<PAGE>
                                             hereunder  and  that  any  proposed
                                             assignee be a person, in Licensor's
                                             reasonable  judgment,  qualified to
                                             provide active supervision over the
                                             operation    of   said   store   in
                                             compliance      with     Licensee's
                                             obligations  hereunder  and who has
                                             sufficient net worth and sources of
                                             capital which meet  Licensor's then
                                             current  requirements  for a  store
                                             operation of the type  contemplated
                                             by this form of  agreement.  In the
                                             event   Licensee's   said  interest
                                             should   be   so   transferred   or
                                             assigned,  Licensee  shall  pay  to
                                             Licensor          contemporaneously
                                             therewith  the sum of One  Thousand
                                             rive Hundred Dollars ($1,1500),  or
                                             an amount  equal to one-half of the
                                             license  fees  paid or  payable  by
                                             Licensee  in respect of  operations
                                             in the twelve  (12)  months  ending
                                             with the  month  prior to the month
                                             in   which   the    assignment   is
                                             approved,  whichever is the greater
                                             amount,    as   a   fee   for   the
                                             preparation   of  a  new  Operating
                                             Agreement in assignee's  name,  for
                                             Licensor's  assistance  in reset-up
                                             of the retail store and for any and
                                             all  other  expenses  incurred  and
                                             services  rendered  by  Licensor in
                                             effecting  said  transfer.  In  the
                                             event of any such  assignment,  the
                                             assignee,   as   a   condition   of
                                             Licensor approving such assignment,
                                             must  attend and to the  reasonable
                                             satisfaction       of      Licensor
                                             successfully      complete,      at
                                             assignee's   expense,    American's
                                             training   program  at   American's
                                             training   center.   In  the  event
                                             Licensee    is    a    corporation,
                                             partnership  or other  entity,  any
                                             transfer or  transfers of stock (or
                                             other form of  ownership  interest)
                                             constituting  in  the  aggregate  a
                                             controlling  interest  in  Licensee
                                             shall be  subject  to the  consent,
                                             transfer    fee   and   all   other
                                             applicable   provisions   of   this
                                             Agreement.  Licensor  nay  withhold
                                             its   consent   to   any   proposed
                                             transfer  until all amounts owed by
                                             Licensee to Licensor, American, the
                                             affiliates   or   subsidiaries   of
                                             either and approved  "Dairy  Queen"
                                             suppliers have been paid in full.

Offsets                             9.11     Licensee   waives   any   and   all
                                             existing  and  future   claims  and
                                             of.0sets  against  any  amounts due
                                             hereunder,  which  amounts shall be
                                             said   when   due.   Licensor   and
                                             American shall be entitled to apply
                                             or  cause  to  be  applied  against
                                             amounts  due to  either  of them or
                                             any of their respective  affiliated
                                             company any amounts  which may from
                                             time to time be held by  either  of
                                             them    or     their     respective
                                             affiliates-on  Licensee's behalf or
                                             be owed to Licensee by
                                             Licensor   or   American  or  their
                                             respective affiliates.
                                      -17-
<PAGE>
                               CONTRACT VIOLATION

Remedies,                  10.      In  the  event  of  any  dispute between the
Arbitration                         parties  hereto  arising  under,  out of, in
                                    connection  with  or  in  relation  to  this
                                    Agreement,  said dispute  shall be submitted
                                    by the  parties  to binding  arbitration  in
                                    accordance with the Rules and Procedures and
                                    under   the   auspices   of   the   American
                                    Arbitration  Association.   The  arbitration
                                    shall take place at the capital of the state
                                    of the Authorized Location of Licensee or at
                                    such   other   place  as  may  be   mutually
                                    agreeable  to the  parties.  The decision of
                                    the  arbitrators  shall be final and binding
                                    on   all   parties.    Notwithstanding   the
                                    foregoing,   Licensee  recognizes  that  his
                                    "Dairy Queen" store is one of a large number
                                    of stores similarly  situated and selling to
                                    the public similar  products,  and hence the
                                    failure on the part of a single  licensee to
                                    comply  with  the  terms  of  his  Operating
                                    Agreement could cause irreparable  damage to
                                    Licensor,  American  and/or  to  some or all
                                    other "Dairy Queen" licensees. Therefore, it
                                    is  mutually  agreed  that in the event of a
                                    breach  or  threatened  breach of and of the
                                    terms  of  this   Operating   Agreement   by
                                    Licensee,   Licensor   shall   forthwith  be
                                    entitled to an injunction  restraining  such
                                    breach   and/or  to  a  decree  of  specific
                                    performance  without having to show or prove
                                    any actual damage, together with recovery of
                                    reasonable  attorney's  fees and other costs
                                    incurred in obtaining said equitable relief,
                                    until  such  time  as a  final  and  binding
                                    determination  is made  by the  arbitrators.
                                    The foregoing  equitable  remedy shall be in
                                    addition  to,  and not in lieu of, all other
                                    remedies  or  rights  which  Licensor  might
                                    otherwise  have by virtue  of any  breach of
                                    this Agreement by Licensee.

Breach of                           10.1     Licensee   shall   be   in  default
Contract                                     hereunder  if  Licensor  determines
                                             that  Licensee  has made any  false
                                             report to  Licensor,  or has failed
                                             to pay when due any amounts owed to
                                             Licensor,   or  has  in  Licensor's
                                             judgment in any other way  breached
                                             any of the terms of this Agreement,
                                             including   but  not   limited  to,
                                             failing to submit required reports,
                                             failing to meet any requirements or
                                             specifications   established   with
                                             respect   to    product    quality,
                                             physical  property,  conditions  or
                                             equipment   or   materials    used,
                                             products  manufactured  menu or use
                                             of approved  products,  packages or
                                             promotional  materials.  Failure of
                                             Licensee  to  pay to  Licensor  any
                                             past   due   amount   owed   within
                                             fourteen (14) days of Licensor's

                                      -18-
<PAGE>
                                             written  notice of default  therein
                                             shall be  construed  as  Licensee's
                                             voluntary   abandonment   of   this
                                             Agreement   and   the    franchised
                                             business hereunder operated.

                                    10.2     Except  as  hereinafter   provided,
                                             failure  of   Licensee  to  cure  a
                                             default   by   Licensee   hereunder
                                             within :fourteen C14) days from the
                                             date of a written notice of default
                                             mailed or  delivered  to  Licensee,
                                             which notice  states such  default,
                                             shall give  Licensor  good cause to
                                             terminate      this      Agreement.
                                             Termination  shall be  accomplished
                                             by   mailing   or   delivering   to
                                             Licensee    written    notice    of
                                             termination   which   notice  shall
                                             state  the  grounds  therefore  and
                                             shall be effective  immediately  in
                                             any case of voluntary  'abandonment
                                             of this  Agreement  by  Licensee or
                                             conviction   of   Licensee   of  an
                                             offense  directly  related  to  the
                                             business  conducted  hereunder;  or
                                             (ii) sixty (60) days after the date
                                             of such  notice of  termination  in
                                             all other cases; provided, however,
                                             that   notwithstanding   any  other
                                             provision of this-  Paragraph  10.,
                                             this  Agreement  may be  terminated
                                             immediately    upon    failure   of
                                             Licensee to cure within twenty-four
                                             (24)  hours of notice  thereof  any
                                             default under this Agreement  which
                                             materially  impairs  the good  will
                                             associated    with   any   of   the
                                             Trademarks.   In  addition  to  the
                                             foregoing,  this  Agreement  may be
                                             terminated  by  Licensor  upon  any
                                             ground  or by any  period of notice
                                             as may be  permitted  from  time to
                                             time   by    applicable    law   or
                                             regulation.  Any  notice of default
                                             of termination  shall be personally
                                             delivered or be mailed by certified
                                             or registered mail,  return receipt
                                             requested, postage prepaid.

Land, Building                      10.3     Subject   to   the   provisions  of
Lease, or Failure                            Paragraph 5.4  hereof,  any failure
to Reopen                                    to rebuild or repair and reopen for
                                             operation  Licensee's  destroyed or
                                             damaged  store or store whose lease
                                             has  been   terminated   or  not  .
                                             renewed  within  one  )rear  of the
                                             date   of    occurrence   of   such
                                             termination, destruction or damage,
                                             shall automatically  terminate this
                                             operating Agreement.

                               TERMINATION RIGHTS

                           11.      Upon  the   termination  of  this  operating
                                   Agreement:

Reversion of                        11.1     All   rights   to  the  use  of the
Trademark                                    Trademarks   and   the   right  and
Rights                                       license to conduct said business at
                                             the   authorized   Location   shall
                                             revert to Licensor and Licensee

                                      -19-
<PAGE>
                                             shall  immediately cease all use of
                                             the  Trademarks  and pay all monies
                                             due at said  date.  Licensee  shall
                                             promptly  and  at his  own  expense
                                             remove  or  obliterate   all  store
                                             signage and  displays  furnished to
                                             Licensee  by  Licensor   and  shall
                                             remove or obliterate and thereafter
                                             discontinue   .,.all   use  of  any
                                             signage   or    displays   at   the
                                             Authorized   Location   or  in  his
                                             possession   bearing   any  of  the
                                             Trademarks  or  names  or  material
                                             confusingly  similar  to any of the
                                             Trademarks.

                                    11.2     All right,  title and  interest  of
                                             Licensee  in and to this  Operating
                                             Agreement shall become the property
                                             of Licensor.

Purchase                            11.3     Licensor  shall  have   the   first
                                             option  to  purchase   any  or  all
                                             equipment,  fixtures furnishings or
                                             supplies,  of whatever kind,  owned
                                             by Licensee  and used by him in the
                                             production  of  the  "Dairy  Queen"
                                             product,   or  any  of  the   other
                                             approved  products under any of the
                                             Trademarks  hereunder  at  a  price
                                             determined by a qualified appraiser
                                             selected  with the  consent of both
                                             parties.   If  the  parties  cannot
                                             agree upon the selection of such an
                                             appraiser  he shall be appointed by
                                             a  Judge  of  the   United   States
                                             District    Court   of   Licensee's
                                             Authorized  Location  upon petition
                                             of  either  party.  Said  option to
                                             purchase   may  be   exercised   by
                                             Licensor at any time within  thirty
                                             (30)  days  from  the  date of such
                                             termination  or within  thirty (30)
                                             days after the date of the  receipt
                                             by  Licensor  of  the   appraiser's
                                             determination,  whichever  shall be
                                             the  later  date,  and shall not be
                                             impaired  or   terminated   by  the
                                             attempted sale or other transfer of
                                             any such  equipment  or supplies by
                                             Licensee to a third party. Upon the
                                             exercise  of such option and tender
                                             of payment  for any such  equipment
                                             or  supplies,  Licensee  agrees  to
                                             sell  and   deliver   the  same  to
                                             Licensor  free  and  clear  of  all
                                             encumbrances,  and to  execute  and
                                             deliver  to   Licensor  a  bill  of
                                             sale-therefore.

Non-                                11.4     Licensee   shall   not  directly or
Compete                                      indirectly     engage     in    any
                                             competitive  business  within 2,000
                                             yards  of the  Authorized  Location
                                             for a period of one year after said
                                             date   of   termination   of   this
                                             Agreement  except  though  a or  an
                                             affiliate  in operation at the time
                                             of signing.

                               PERMITTED PRODUCTS

                           12.      It is  mutually  understood  and agreed that
                                    the  store   facilities  and  operations  of
                                    Licensee  hereunder  may include in addition
                                    to "Dairy  Queen"  or "Dairy  Queen/Brazier"
                                    food and beverage

                                      -20-
<PAGE>
                                    service the sale of various  other  products
                                    not  identified  or-designated  by Company's
                                    Trademarks,  including,  but not limited to,
                                    motor   vehicle   fuel,   oil  and   related
                                    automotive products, souvenir-type products,
                                    tobacco  products,  sundries,  and  packaged
                                    food  products not intended for  consumption
                                    on the premises where sold and which are not
                                    competitive with food and beverage  products
                                    identified or  designated by the  Trademarks
                                    Call of said products  collectively referred
                                    to   in   this   Agreement   as   "Permitted
                                    Products").   In  order  to  prevent  public
                                    confusion,    preserve   and   protect   the
                                    Trademarks   and  establish  the  principles
                                    which  shall  govern   Licensee's   sale  of
                                    Permitted   Products   and   usage   of  the
                                    Trademarks,    the   parties    agree   that
                                    notwithstanding any provision of this or any
                                    other   Agreement  to  the   contrary,   the
                                    following   provisions  shall  control  with
                                    regard to Permitted Products:

                                    12.1     Licensee    may   sell    Permitted
                                             Products  from its licensed  store.
                                             Licensee  may  use in the  business
                                             operated  hereunder  in the  manner
                                             and to the extent permitted by this
                                             Agreement     marks    and    names
                                             identifying Permitted Products.

                                    12.2     The Trademarks  shall not under any
                                             circumstances  be used to  identify
                                             or designate  Permitted Products or
                                             any other  products)  for which use
                                             of  the  Trademarks  has  not  been
                                             specifically      authorized     by
                                             American.  Permitted Products shall
                                             be   sold   only   from    physical
                                             facilities  (such  as  a  different
                                             area,  room or building)  which are
                                             clearly distinct and apart from the
                                             "Dairy Queen" retail store.

                                    12.3     No  product  shall be sold from any
                                             part  of  any  sublicensed  store's
                                             site which detracts or threatens to
                                             detract  from  the   reputation  or
                                             goodwill of the "Dairy Queen" trade
                                             name  or  any  of  the  Trademarks.
                                             Licensor  shall  have the  right to
                                             direct  Licensee to remove from the
                                             store and  Discontinue  the sale of
                                             any product  item or items which in
                                             American's   good  faith   jud4ment
                                             violates  the  quality  standard of
                                             the preceding sentence.  No product
                                             shall  under any  circumstances  be
                                             sold from the "Dairy Queen" portion
                                             of the licensed store which has not
                                             received   the    specific    prior
                                             approval of Licensor.

                                    12.4     A  building   design  and   related
                                             facility   standards,   based  upon
                                             American's   existing   design  and
                                             specifications  for  "Dairy  Queen/
                                             Brazier" stores, shall be developed
                                             by    mutual    consultation    and
                                             agreement,  which  shall  take into
                                             account the particular requirements
                                             for  a  "Dairy  Queen,"  or  "Dairy
                                             Queen/Brazier"   facility   to   be
                                             situated-along     an    Interstate
                                             highway.   Licensee   shall  comply
                                             strictly   with  the   design   and
                                             facility  standards developed
                                             hereunder.

                                      -21-
<PAGE>
                                    12.5     Notwithstanding    Paragraph    3.2
                                             hereof,    Licensee    may   employ
                                             off-site  advertising media such as
                                             billboards  and radio  commercials,
                                             provided   such    advertising   is
                                             approved by Licensor and  American,
                                             and  provided  further that no such
                                             advertising  shall  be  used  which
                                             creates or fosters any confusion as
                                             to the identity,  source or quality
                                             of goods  identified  or designated
                                             by   the    Trademarks.    Licensor
                                             acknowledges   that   it   may   be
                                             necessary to share extant billboard
                                             space with an  existing  Stuckey's,
                                             Wayfara   or  other   store.-   and
                                             Licensor  requires that advertising
                                             for the "Dairy  Queen"  store be as
                                             visually  and  physically  separate
                                             from the  other  advertising  as is
                                             feasible.

                                    12.6     Because  the  "Dairy  Queen"  store
                                             hereunder may also sell  Permitted.
                                             Products,  the  parties  agree that
                                             notwithstanding any other provision
                                             of  this  Agreement  or  any  other
                                             contract   between   the   parties,
                                             Licensor  deems it to be  necessary
                                             and   desirable,   to  permit   the
                                             following.

                                             a.       To allow  Licensee to sell
                                                      Permitted    Products   in
                                                      conjunction  with a "Dairy
                                                      Queen"      or      "Dairy
                                                      Queen/Brazier" store;

                                             b.       To  allow  the   principal
                                                      shareholders  of  Licensee
                                                      and   members   of   their
                                                      immediate  families to own
                                                      any  amount  or  class  of
                                                      stock   or   debt  in  any
                                                      business;

                                             c.       To the  extent  and in the
                                                      manner           permitted
                                                      hereunder,     to    allow
                                                      Licensee  to  sell  and to
                                                      advertise        Permitted
                                                      Products  in   conjunction
                                                      with  products  identified
                                                      or   designated   by   the
                                                      Trademarks;

                                             d.       Subject to  Paragraph  6.1
                                                      hereof,     to     relieve
                                                      Licensee      from     the
                                                      obligation,  with  respect
                                                      to Permitted Products,  to
                                                      purchase      and      use
                                                      equipment,       supplies,
                                                      ingredients  and  services
                                                      approved by American;

                                             e.       To   allow   Licensee   to
                                                      construct  and  equip  its
                                                      retail store in accordance
                                                      with  building  design and
                                                      related facility standards
                                                      developed  under Paragraph
                                                      12.4 hereof;

                                             f.       To relieve  Licensee:  (i)
                                                      from  the   obligation  of
                                                      using,   in  preparing  or
                                                      selecting        Permitted
                                                      Products,     ingredients,
                                                      formulas and supplies
                                      -22-
<PAGE>
                                                      specified   by   American;
                                                      (ii)  from the  obligation
                                                      to observe,  with  respect
                                                      to Permitted Products, the
                                                      requirements  relative  to
                                                      portions,           sizes,
                                                      appearance  and  packaging
                                                      set  forth  in  American's
                                                      "Store          Management
                                                      Operations   Manual"   and
                                                      "product       preparation
                                                      charts";  and  (iii)  with
                                                      respect    to    Permitted
                                                      Products, to allow the use
                                                      of  other   supplies   and
                                                      customer service materials
                                                      without      regard     to
                                                      standards  of   uniformity
                                                      and  quality as are now or
                                                      hereafter set by American;

                                             g.       To  allow   Licensee   its
                                                      principal  shareholders or
                                                      members of their immediate
                                                      families  to  engage  in a
                                                      competitive       business
                                                      within  2,000 yards of the
                                                      Authorized Location of the
                                                      store licensed  hereunder,
                                                      as    defined    in    the
                                                      Operating  Agreement,  but
                                                      only  through a Candyland-
                                                      business; and

                                             h.       To relieve stockholders of
                                                      this  corporate   Licensee
                                                      from  the   obligation  of
                                                      personally guarantying the
                                                      obligations   of  Licensee
                                                      under    the     Operating
                                                      Agreement.     Sale     or
                                                      transfer  of this  License
                                                      to   another   corporation
                                                      shall   include  the  then
                                                      customary       guarantees
                                                      required of corporations.

                               GENERAL PROVISIONS

                                    13.1     In  the   event  any  one  or  more
                                             clauses of this Agreement  shall be
                                             held to be  void  or  unenforceable
                                             for  any  reason  by any  court  of
                                             competent  jurisdiction such clause
                                             or  clauses  shall be  deemed to be
                                             separable and of no force or effect
                                             in   such   jurisdiction   and  the
                                             remainder of this  Agreement  shall
                                             be  deemed  to be valid and in full
                                             force and effect,  and the terms of
                                             this Operating  Agreement' shall be
                                             equitably   adjusted   so   as   to
                                             compensate  the  appropriate  party
                                             for any consideration  lost because
                                             of the  elimination  of such clause
                                             or clauses.

                                    13.2     Any  waiver  by   Licensor  of  any
                                             breach or default by Licensee shall
                                             not be deemed to be a waiver of any
                                             other  or   subsequent   breach  or
                                             default  nor an estoppel to enforce
                                             its  rights  in  the  event  of any
                                             other or subsequent breach.

                                    13.3     This Agreement, and the application
                                             form     executed    by    Licensee
                                             requesting  Licensor  to enter into
                                             this Agreement, constitute the sole
                                             agreement  between the parties with
                                             respect  to  the   entire   subject
                                             matter of this Operating  Agreement
                                             and embodies  all prior  agreements
                                             and  negotiations  with  respect to
                                             the "Dairy Queen"  business.  There
                                             are no  representations of any kind
                                             except as  contained  herein and in
                                             the aforesaid application.

                                      -23-
<PAGE>
                                    13.4     Except  as  otherwise  provided  in
                                             this Agreement,  any notice, demand
                                             or   communication   provided   for
                                             herein shall be in writing,  signed
                                             by  the  party   giving  the  same,
                                             deposited  in  the   registered  or
                                             certified   United   States   mail,
                                             return receipt  requested,  postage
                                             prepaid, and:

                                             a.       If intended  for  American
                                                      shall  be   addressed   to
                                                      American    Dairy    Queen
                                                      Corporation  at 5701 Green
                                                      Valley Drive, Minneapolis,
                                                      Minnesota 55437;

                                             b.       If intended  for  Licensor
                                                      shall  be   addressed   to
                                                      Licensor  at  the  address
                                                      hereinabove set forth;

                                             c.       If intended for  Licensee,
                                                      shall  be   addressed   to
                                                      Licensee at the Authorized
                                                      Location       hereinabove
                                                      designated;   or  to  such
                                                      other  address as may have
                                                      been  given  to the  other
                                                      party by  notification  as
                                                      herein provided.

                                    13.5     If Licensee consists of two or more
                                             individuals, such individuals shall
                                             be jointly and severally liable and
                                             references   to  Licensee  in  this
                                             Agreement  shall  include  all such
                                             individuals.  Reference to Licensee
                                             as male shall also include a female
                                             licensee,       partnership      or
                                             corporation  or any other  business
                                             entity.   Headings   and   captions
                                             contained     herein     are    for
                                             convenience  of reference  only and
                                             shall not be taken into  account in
                                             construing  or  interpreting   this
                                             Agreement.

                                    13.6     Subject  to the terms of  Paragraph
                                             9.10 hereof,  this Agreement  shall
                                             be  binding  upon and  inure to the
                                             benefit   of  the   administrators,
                                             executors.-  heirs,  successors and
                                             assigns of the parties.

                                    13.7     This  Agreement  shall be effective
                                             only when approved by an officer of
                                             American  and shall be  governed by
                                             and  interpreted in accordance with
                                             the law of the  state in which  the
                                             Authorized Location is Located.

                                    13.8     This  Agreement  shall be deemed to
                                             be amended from time to time as may
                                             be  necessary  to bring  any of its
                                             provisions   into  conformity  with
                                             valid     applicable     laws    or

                                             regulations.
                                      -24-
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto have  executed the  foregoing
"DairyQueen" Operation Agreement the date first above written.

                                       LICENSEE

                                       BOWLIN'S, INC. d/b/a DQ of BLUEWATER, NM

ATTEST:

                                       By:/s/ MICHAEL L. BOWLIN
/s/ SUE E. BENSON                         --------------------------------------
---------------------------               Its:/s/ Executive Vice President
Assistant Secretary                           ----------------------------------

                                       LICENSOR

ATTEST

/s/ ANNETTE M. CAMPBELL
---------------------------
                                       INTERSTATE DAIRY QUEEN CORPORATION

                                       By:  /s/ SIGNATURE ILLEGIBLE
                                          --------------------------------------
                                          Its:  President
                                              ----------------------------------

                                       APPROVED:

                                       AMERICAN DAIRY QUEEN CORPORATION

                                       By    /s/ HERMAN E. NELSON
                                          --------------------------------------
                                          Its  V.P.
                                             -----------------------------------
                                      -25-
<PAGE>
APPENDIX "B"
Dairy Queen/Brazier(R)                              Date:  4/12/83
                                                    Initials:

(Licensee)(Please attach to copy of current operating agreement)

Below is listed the approved menu of Company for Dairy  Queen/Brazier(R)  stores
which is in current use and effect.  Licensee is  authorized to use this menu in
accordance with the attached Operating Agreement.

This  Appendix  "B" may be amended by Company from time to time in order to make
available  additional  products  or to delete  those which  become  unavailable.
Licensee agrees to use only those products which are- then currently  authorized
for use in Dairy Queen/Brazier(R) stores.

Licensee  shall use in preparing  products only such  ingredients,  formulas and
supplies as are specified by Company and in such portions, sizes, appearance and
package as set forth in Company's  most  current  "Store  Management  Operations
Manual" and "Product Preparation Charts."

National Required         National Required                  National Required
Brazier(R) Food Items     Dairy Queen(R) Soft Serve Items    Beverage Items
---------------------     -------------------------------    ------------------

  Hamburgers              Cones                              Carbonated Drinks**
  Single                  Dipped Cones                       Mr. Misty(R)
  Double                  Sundaes
  Triple                  Malts/Shakes                       National Optional
  w/Cheese                Float                                Beverage Items
  w/Lettuce and Tomato    Mr. Misty(R) Float                 ------------------
  Hot Dog                 Freeze                             Milk
  w/Chili                 Mr. Misty(R) Freeze                Coffee
  w/Cheese                Banana Split                       Hot Chocolate
  Fish Sandwich           Peanut Buster Parfait(TM)          Iced Tea
  w/Cheese                Double Delight(TM)                 Lemonade
  Chicken Sandwich        Frozen Novelties                   Diet Carbonated
  French Fries            Dilly(R) Bar                         Soft Drinks**
  Onion Rings             Buster Bar(R) and/or
  Chili Dog Split         Fudge Nut Bar(TM)
                          DQ(R) Sandwich and/or Dillywich(R)
National Optional         Mr. Misty Kiss(R) and/or
Brazier(R) Food Items      Star Kiss(TM)
---------------------     Home Pak
  Super Dog
    w/Chili
    w/Cheese
  Chili Bowl
  Barbecue Sandwich                           National Optional
                                              Dairy Queen(R) Soft Serve Items
                                              -------------------------------
                                              Hot Fudge Brownie Delight(TM)
                                              Strawberry Shortcake
                                              Banana Supreme(TM)
                                              Shake 'n Sundae
                                              Parfait
Special Category  Brazier(R) Items            Soda
----------------------------------            Low Fat Frozen Yogurt
Brazier(R) Crispy Fried Chicken               Frozen Cakes and Logs
                                              (Licensee  may  sell
                                              frozen   cakes   and
                                              logs    subject   to
                                              meeting  the special
                                              requirements  as set
                                              forth  from  time to
                                              time by company  and
                                              by  obtaining  prior
                                              certification     of
                                              eligibility     from
                                              company.)

* Special  Category Brazier Items may be sold by Licensee if Licensee desires to
do so, but they are not required.  Notwithstanding  the foregoing,  Licensee may
only continue to sell a special category item by  substantiating to Company that
the sale of each item amounts to at least 2% of the stores  total annual  retail
sales.

** A minimum of three  carbonated soft drinks must be provided by Licensee.  All
carbonated soft drinks must be of high quality in national distribution and made
by a primary manufacturer.

Note: The Dairy Queen soft serve,  Brazier food and beverage items listed on the
National  Optional Menus shown above may be sold by Licensee if Licensee desires
to do so, but are not required to be sold.
<PAGE>
                                  APPENDIX "A"

         Licensee has the right and  privilege to use the  following  trademarks
and service marks in accordance with the attached Operating Agreement.

         This  Appendix "A" may be amended by Company from time to time in order
to make available additional  trademarks or --ice marks or to delete those which
become  unavailable.  Licensee  agrees to use only those  trademarks and service
mark.,, which are then currently authorized.

                 DAIRY QUEEN                    BUSTER BAR

                 BRAZIER                        DILLY

                 MR. MISTY                      DQ

                 MR. MISTY KISS                 THE ELLIPSE DESIGN

                 ROOF DESIGN                    BROWNIE DELIGHT

                 LET'S ALL GO TO THE            THE CONE WITH THE
                 DAIRY QUEEN                    CURL ON TOP

                 FIESTA                         DESIGN: THE CONE
                                                WITH THE CURL ON TOP

         Each of the above trademarks  and/or service marks must be used only in
the manner  specified  by the Company and in  connection  with the goods  and/or
services specified by the Company. No deviations will be permitted.
<PAGE>
                                  Appendix "C"

Licensee  shall pay to  Licensor  as a service  and set-up fee  $10,000 of which
$5,000  has been paid upon the  :execution  of this  Agreement  and a balance of
$5,000 is payable  as  follows:  $1,000  principal  payable  each  :October  1st
(beginning  October 1, 1983 and ending  October 1. 1987)  and.12%  interest  per
annum on the unpaid principal payable each October lst.
<PAGE>
                                  APPENDIX "D"

                        RESERVATIONS TO CERTAIN ITEMS IN

                        "DAIRY QUEEN" OPERATING AGREEMENT

1.   Paragraph 4.6.  Licensor advises that the purpose of this paragraph is full
     disclosure.

2.   Paragraph 5.1. Licensee and American will agree on the plans for remodeling
     the existing building to conform to requirements of Paragraph 5.1.

3.   Paragraph 6.1. Licensee operates a full line novelty and curio store in the
     building adjoining Licensee's "Dairy Queen"/"Brazier"  operation.  Licensee
     maintains  separate  accounting for sales from  adjoining  store and "Dairy
     Queen"/"Brazier" operations. Sales In Licensee's merchandise,  novelty, and
     curio  store  shall not be  subject  to  continuing  license  fees or sales
     promotion fees.

4.   Paragraph 6.1.  Licensee may sell the  Traditional or Biscuit  Breakfast as
     provided for by American in the  breakfast  test program  until the test Is
     discontinued  at which time Licensee may apply for a menu  deviation  which
     may or may not be granted by Licensor.

5.   Paragraph 9.l.  'Licensee is obligated to pay monthly sales  promotion fees
     as provided  for in  paragraph  9.1.  Any  deviation  or variance  from the
     required  monthly  payment shall be of a temporary  nature and shall not in
     any way prejudice  Licensee's  obligation to strictly follow  Paragraph 9.1
     and make monthly sales  promotion fee payments if requested at a later date
     by Licensor..

In recognition that Interstate  Licensees in the past have expended more than 3%
of sales on advertising  (primarily in outdoor,  the most Effective  medium .for
communicating  to highway  travelers),  American and Interstate have temporarily
without prejudice allowed Licensees to credit monthly  advertising  expenditures
to sales  promotion fee payments  each month.  if a Licensee does not expend the
required sales promotion fee percentage  monthly,  the balance must be remitted.
American reserves the right to discontinue this special arrangement at anytime.

Development of national  advertising  program and other events in American's and
Interstate's  exclusive  discretion  and  judgment  may require ' , and Licensee
hereby agrees to make, full and regular monthly  payments of the sales promotion
fee to Interstate.

Licensee is obligated to pay and  participate  annually in the Annual  Marketing
Program  (AMP).  In cases where  Licensee  pays sales  promotion  fee monthly to
Interstate,  the AMP fee will be paid from amounts  remitted to  Interstate.  In
cases where  Licensee does not pay sales  promotion  fee monthly to  Interstate,
Licensee shall remit the annual fee to Interstate.

6.   Paragraph  9.4.  Licensee has  requested  that for  reasonable  and orderly
     availability  of data that if Licensor or American  wishes to audit or look
     at  Licensee's  books,  that Licensor give Licensee at least 10 days notice
     prior to date so data may be readily  available to  Licensor.  Licensor and
     American, in accordance with generally accepted auditing standards, decline
     to give such notice.

7.   Paragraph 9.5.  Licensee already owns an in-house computer that generates a
     profit and loss  statement for a profit  center such as  Licensee's  "Dairy
     Queen". Licensee hereby requests that Licensor accept Licensee's profit and
     loss report, as already programmed which uses profit center  identification
     and  consolidated  balance  sheet.  Licensor  has  requested  and  shall be
     furnished with a "dummy" statement for consideration.

8.   Paragraph 10.1, 10.2, and 13.4.  Licensee requires and Licensor agrees that
     any notices under any contract or agreement shall be mailed certified mail,
     return  receipt,  and that for purposes of this  Agreement  notice shall be
     deemed to have been  received  on the  earlier of the date of  delivery  or
     first  attempted  delivery as  indicated  on the return  receipt (or in the
     absence of a noted delivery date, or noted attempted delivery date, 15 days
     from noted date of mailing).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]