Document:

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EXHIBIT 10-C

                       NON-EXCLUSIVE DEVELOPMENT AGREEMENT

         THIS NON-EXCLUSIVE DEVELOPMENT AGREEMENT (the "Agreement") is made and
entered into as of the ___ day of ________________, 2000, by and among BURGER
KING CORPORATION, a company organized under the laws of the State of Florida,
having its principal place of business at 17777 Old Cutler Road, Miami, Florida
33157 ("BKC"), BRAVOKILO, INC., a company organized under the laws of the State
of _________, having its principal place of business at 4220 Edison Lakes Park,
Mishawaka, Indiana 46545 (the "Developer"), and QUALITY DINING, INC., a company
organized under the laws of the State of _____________ (the "Guarantor").

                                  INTRODUCTION

         A. BKC is the exclusive licensee of certain trademarks and service
marks, including BURGER KING(R) and HOME OF THE WHOPPER(R). which are registered
or pending with the United States Patent and Trademark Office, and BKC is the
owner or exclusive licensee of other marks authorized for use in limited menu,
quick service restaurants (the "Burger King Marks").

         B. BKC has developed a comprehensive restaurant format and operating
system, including the Burger King Marks, a recognized design, equipment system,
color scheme and style of building, signs, uniform standards, specifications and
procedures of operation, quality and uniformity of products, and services
offered and procedures for inventory control and management (the "Burger King
System"), and BKC is engaged in the business of operating and granting
franchises to operate limited menu, quick service restaurants using the Burger
King System and the Burger King Marks ("Burger King Restaurants").

         C. The Developer recognizes the benefits to be derived from being
identified with and franchised to operate Burger King Restaurants utilizing the
Burger King System, the name BURGER KING, the Burger King Marks, and such other
marks as may be authorized from time-to-time for use in connection with the
Burger King System.

         D. The Developer acknowledges that it is entering into this Agreement
after having made an independent investigation of BKC's operations and not upon
any representation as to the profits and/or sales volumes which it might be
expected to realize, nor upon any representations or promises made by BKC or any
person on their behalf which are not contained in this Agreement. Developer
hereby acknowledges that it received BKC's Uniform Franchise Offering Circular
("UFOC") no later than ten (10) days prior to the execution of this Agreement.

         E. The Guarantor owns 100% of the shares of the Developer.

         F. During the Term of this Agreement (as defined below), the Developer
desires to be granted the right to develop and be franchised to operate twelve
(12) Burger King Restaurants within the areas described on Exhibit "A" hereto
(hereinafter referred to as the "Development Area").

         In consideration of the mutual undertakings and covenants contained in
this Agreement

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and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

                                ARTICLE I: GRANT

         1.1 Non-Exclusive Rights. Subject to the terms and conditions of this
Agreement, the Developer is hereby granted the non-exclusive right to search for
potential Burger King Restaurant sites within the Development Area and, subject
also to Developer meeting all of BKC's requirements, the right to develop and be
franchised to operate Burger King Restaurants within the Development Area upon
the terms and conditions of this Agreement and the franchise agreements which
shall be entered into for each Burger King Restaurant. For purposes of this
Section 1.1 and this Agreement generally, the terms "Burger King Restaurant" and
"Burger King Restaurants" shall include kiosks, in-line mall and office building
units, co-branded units, double drive-thru/limited seating units, mobile units,
traditional freestanding Burger King restaurants. Provided, however, that only
those Burger King Restaurants described in Section 3.4 below shall count against
the Developer's development obligations under Article III of this Agreement.

         1.2 Exceptions.

                  1.2.1 U.S. Military Establishments. Specifically excluded from
the rights set forth in Section 1.1 above are any existing or hereafter
established possible U.S. military establishments, including their adjacent
housing areas and support areas. Developer acknowledges that BKC has no control
over or ability to stop development of Burger King Restaurants on existing or
hereafter established U.S. military establishments, and Developer hereby
releases BKC and its directors, officers, parent, subsidiaries, affiliates,
employees, successors, and assigns from all claims or liability relating to the
existence or opening of a Burger King Restaurant on any U.S. military
establishment, including without limitation any claim of encroachment or breach
of existing or future franchise agreements, from the date of this Agreement
forward.

                  1.2.2 Institutional Locations.

                           (a) Specifically excluded from the rights set forth
in Section 1.1 above are any existing or hereafter established "Institutional
Locations" (as that term is defined in subsection (b) below). The Developer
hereby releases BKC and its directors, officers, parents, subsidiaries,
affiliates, employees, successors, and assigns from all claims and liability
relating to the existence or opening of a Burger King Restaurant in such
Institutional Locations, including without limitation, any claim of encroachment
or breach of existing or future franchise agreements, from the date of this
Agreement forward.

                           (b) "Institutional Locations" shall mean, without
limitation, public buildings, turnpikes, toll roads, food courts in shopping
malls, hotels, bus and railway stations, schools, universities, hospitals,
stadiums, airports, train stations and factories.

         1.3 Existing Approvals/Locations. This Agreement is not intended to and
does not diminish any rights or approvals previously granted by BKC to any
franchisees of BKC, their successors or assigns, or other persons or entities,
whether granted by franchise agreement, development agreement, target
reservation agreement ("TRA"), letter of intent or other written communication
or agreement of any kind. If BKC has previously granted to any other person or
entity a right of approval to open a Burger King Restaurant within the
Development Area, such grant of right or approval shall remain unaffected by
this Agreement. Exhibit "B" sets forth a list of TRAs granted by BKC to
franchisees other than the Developer for Target Locations (as

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defined below) within the Development Area prior to the date hereof. Further,
this Agreement shall not affect the ability of BKC or its franchisees to
continue to operate existing Burger King Restaurants, nor shall it affect or
prevent BKC, in BKC's sole discretion, from issuing a grant of the right to
continue such operations at the end of the term of an existing agreement.
Further, this Agreement shall not affect the right of BKC to allow a franchisee
or other person or entity to complete development of a Burger King Restaurant at
a location for which approval was granted by BKC prior to the date of this
Agreement.

         1.4 No Territorial or Other Rights. The non-exclusive development
rights granted pursuant to this Agreement are for the Development Area only, and
the Developer acknowledges and agrees that: (a) BKC has the absolute and
unconditional right to directly or indirectly develop, establish, license and/or
approve one or more franchisees to develop Burger King Restaurants both within
and outside of the Development Area; and (b) the Developer has no exclusive
area, market or territorial rights with respect to the development of Burger
King Restaurants within or outside of the Development Area, either express or
implied. The Developer acknowledges that BKC intends to issue TRAs to another
franchisee in the Development Area for the following Target Locations: (i) Scott
Road & Illinois Road in Ft. Wayne, Indiana; and (ii) Maysville Road & Stellhorn
Road in Ft. Wayne, Indiana. If BKC terminates either of the TRAs, or if either
agreement expires in accordance with its terms (after expiration of any and all
cure periods, as determined by BKC), the Target Locations will become available
for development by the Developer.

         1.5 Boundary of Development Area. In the event of conflict or confusion
as to the exact boundaries of the Development Area, BKC's sole and absolute
discretion shall control.

                                   ARTICLE II
                                      TERM

         2.1 Term. The term of this Agreement (the "Term") shall commence upon
October 1, 2000. Unless terminated earlier as provided in Article VII hereof,
the Term and all of the rights granted by this Agreement shall expire on JUNE
30, 2004. The Developer has no right to any extension or renewal to the Term.

                                   ARTICLE III
                      ANNUAL MEETING; DEVELOPMENT SCHEDULE

         3.1 Annual Meeting. During the Term, BKC and the Developer shall meet
prior to June 30th of each year to agree upon the potential Target Locations (as
defined below) for the Burger King Restaurants to be developed during the next
Fiscal Year (being July 1 through June 30 of each calendar year) in accordance
with the procedures described in Article IV and the Development Schedule
referred to in Section 3.3 below (the "Annual Meeting"). At the Annual Meeting,
BKC and the Developer shall identify more Target Locations than the number of
Development Units required to be developed during the next Fiscal Year under the
Development Schedule so that the Developer shall have an inventory of Target
Locations for development. No later than 60 days after the Annual Meeting, the
Developer shall submit a completed and signed franchise application,
capitalization plan, management commitment form and such other information as
BKC has requested or may request for the Target Locations to be developed during
the next Fiscal Year (the "Annual Target Locations"). Following the Annual
Meeting, BKC shall give notice to all BKC-operated restaurant managers and
Franchisees who may be affected by the development of Restaurants at the Annual
Target Locations in accordance with BKC's standard development procedures. A
"Target Location" is defined as a

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specific place with clear, describable boundaries that may be designated by an
actual property description or address.

         3.2 Quarterly Updates; Replacement Target Locations. The Developer
shall provide BKC with quarterly updates to identify the specific Target
Locations currently scheduled for development, as well as the projected dates
for obtaining Site Approval (as defined below) and the restaurant opening dates.
Within thirty (30) days of the issuance of Construction Approval (as defined
below) for a Target Location, Developer may propose a new Target Location to
replace the Target Location of the Restaurant under construction (the
"Replacement Target Location"). Any such Replacement Target Location is subject
to BKC's approval.

         3.3 Development Schedule. Developer agrees to take all commercially
reasonable action to develop and open for business a minimum of twelve (12)
"Development Units" (as defined in Section 3.4 below) during the Term and within
the Development Area in strict accordance with the development schedule set
forth in Exhibit "C" attached hereto (the "Development Schedule").

         3.4 Development Units. The term "Development Unit" is defined on
Exhibit "C" to this Agreement. Moreover, only the opening of a new Burger King
Restaurant in one of the forms set forth on Exhibit "C" hereto will be applied
against the Developer's obligations under this Article III. The purchase of
existing Burger King Restaurants will not count against the Developer's
development obligations under this Article III.

         3.5 Acceleration. The Developer is free to develop the Development
Units within the Development Area at a faster rate than that outlined above,
provided that each Development Unit is developed in accordance with the "Site
Approval" and "Construction Approval" procedures described in Article IV of this
Agreement. If in any one or more periods, the total number of new Development
Units opened falls short of the number of required for such period or periods
but the total number of new Development Units opened prior to and during that
period and operating at the end of that period is equal to or exceeds the
required total for the period from the start of the Development Schedule to the
end of that period, the Developer shall have complied with its obligation.

         3.6 Strict Adherence. Strict adherence to each and every one of the
above requirements is the essence of this Agreement. Failure to adhere to any of
the above requirements may result in the termination of this Agreement pursuant
to Section 7.1(b) below.

         3.7 Time of the Essence. Developer agrees that time is of the essence
with respect to its obligations under this Agreement.

         3.8 Force Majeure. Notwithstanding the foregoing, if delay in meeting
the Development Schedule or any of the Opening Dates is caused by acts of God,
labor strikes, or civil unrest, war or embargo, or by failure to obtain zoning
approval or other permits necessary to the construction or occupancy of a
Restaurant, or by a problem or condition that impacts the Burger King System as
a whole, then Developer shall notify BKC accordingly and BKC after an
examination of the facts shall allow a reasonably necessary extension to the
required Opening Date for the Burger King Restaurant in question, provided,
however, that in the event that the reasonably necessary extension exceeds 180
days, BKC shall have the right to terminate this Agreement by giving written
notice of termination to Developer, whereupon this Agreement shall automatically
terminate, without liability to either party hereto, it being understood that
termination is BKC's sole remedy under this Section 3.8.

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                                   ARTICLE IV
                              DEVELOPMENT PROCEDURE

         4.1 Nature of Agreement. The Developer understands and agrees that this
Agreement is not a franchise for the operation of Burger King Restaurants, but
rather this Agreement is intended by the parties to set forth the terms and
conditions which, if fully satisfied, would entitle the Developer to individual
franchises for each Burger King Restaurant to be developed and opened under this
Agreement.

         4.2 Application. Within thirty (30) days after each Annual Meeting,
Developer agrees to submit to BKC a completed and signed Franchise Application,
Capitalization Plan, Management Commitment Form and such other information as
BKC has requested or may request (collectively, the "Application") for each
Burger King Restaurant to be developed during the next Fiscal Year.

         4.3 Expansion Approval Procedure. Developer agrees to (a) obtain and
maintain "Franchise Approval" (as defined in Section 4.3.1 below) at all times
during the Term of this Agreement; (b) obtain Site Approval (as defined in
Section 4.3.2 below) from BKC, for each Burger King Restaurant to be developed
pursuant to this Agreement; and (c) obtain Construction Approval (as defined in
Section 4.3.3 below) from BKC for the Burger King Restaurants to be developed
pursuant to this Agreement, all in accordance with BKC's then-current criteria
and procedures for Franchise Approval, Site Approval and Construction Approval
(collectively, "Expansion Approval").

                  4.3.1 Franchise Approval Criteria. Notwithstanding any
provision in this Agreement to the contrary, the Developer understands and
agrees that, as a condition to the granting of a franchise to operate a Burger
King Restaurant, Developer must obtain from BKC at the time of Application, and
maintain throughout the Term, franchise approval ("Franchise Approval") by
meeting, and continuing to meet, in the sole discretion of BKC, all of BKC's
then current "operational," "financial," "legal," "development" and other
criteria and conditions for development, including, but not limited to, any
conditions included in BKC's approval letter (the "Franchise Approval
Criteria"). The terms "operational," "financial," "legal" and "development" as
used above and elsewhere in this Agreement shall include, without limitation,
the following:

                           (a) Operational Approval. The Developer must operate
and conduct the business of each of its existing Burger King Restaurants in
accordance with the terms and conditions of this Agreement, the provisions of
the respective franchise agreements, and the standards, specifications and
procedures set forth and described in the Manual of Operating Data, as amended,
including the maintenance of the interior and exterior of the Burger King
Restaurants to reflect the required Burger King image. The Developer understands
that changes in said standards, specifications and procedures may become
necessary from time to time. The Developer agrees to accept as reasonable said
changes, and the Developer further agrees that it is within BKC's sole and
absolute discretion, to make said changes. As a condition precedent to being
permitted to open a Burger King Restaurant, the Developer must designate a
Restaurant Manager and, as applicable, an Operating Partner or Managing
Director, and a Managing Owner unless BKC otherwise agrees, who have
successfully completed BKC's then-current training program and who have been
approved by BKC to operate a Burger King Restaurant. If it is necessary for any
such person to attend a training program to satisfy this condition, then the
Developer shall be responsible for all travel and living

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expenses, compensation of and worker's compensation insurance for Developer and
Developer's employees, and any other personal expenses associated with the
training program. BKC will evaluate the performance and qualifications of all
persons in a training program throughout the training program, and BKC reserves
the right to terminate any person's participation in a training program.
Developer is not entitled to receive from BKC any reimbursement of expenses
related to the training, or any compensation, salary or wages as a result of
BKC's termination of any person from a training program. The terms "Operating
Partner," "Managing Director," and "Managing Owner" shall have the same meanings
ascribed to them in BKC's current UFOC.

                           (b) Financial Approval. Developer must be current in
all monetary obligations owed to BKC and its affiliates. Developer must also
submit to BKC a certified financial statement (balance sheet and profit and loss
statement) for Developer's latest fiscal year (and interim statements if fiscal
year statements are more than nine months old), a current financial statement
for Developer and its affiliates, third party confirmations and, if Developer is
a corporation or partnership, personal financial statements for any individuals
holding a material interest in Developer. Developer acknowledges that the ratios
and other criteria required by BKC in connection with financial approval may be
amended from time to time in BKC's sole and absolute discretion.

                           (c) Legal Approval. The Developer must be organized
consistent with BKC's requirements and must submit to BKC in a timely manner as
requested all standard form information and documents reasonably requested by
BKC prior to and as a basis for the issuance and consummation of an individual
franchise. The Developer also must take such additional action as may be
requested by BKC from time to time consistent with this Agreement, the Franchise
Agreements and the legal relationships contemplated therein, must be in
compliance with all obligations under all agreements with BKC and its
affiliates, must have no pending development objections not subject to the
applicable BKC Procedures for Resolving Development Disputes and must have no
other unresolved disputes or claims against BKC.

                           (d) Development Approval. The Developer must at all
times follow and comply with all BKC policies, processes, and procedures for
development of a Burger King Restaurant.

                  4.3.2 Failure to Meet or Maintain Criteria. BKC may refuse to
grant Expansion Approval and/or withdraw any existing or previously-granted
Expansion Approval if, at any time during the term of this Agreement, the
Developer fails to meet the Franchise Approval Criteria. Such refusal and/or
withdrawal shall not extend, modify or reduce the requirements under the
Development Schedule. Notwithstanding the foregoing, BKC shall not withdraw an
Expansion Approval under this Agreement for any Development Unit hereunder if
the Developer has (a) obtained Site Approval and (b) made a binding commitment
for the acquisition of an approved site within the Development Area. BKC agrees
to give the Developer written notice of Developer's failure to meet the
Franchise Approval Criteria (a "Disapproval Notice"). A Disapproval Notice shall
not also be a notice of default under Article VI below unless BKC specifically
so states.

         4.4 Site Approval.

              (a) After obtaining Franchise Approval, the Developer shall apply
for and obtain site approval for any site on which the Developer proposes to
construct a Burger King Restaurant under this Agreement from BKC in accordance
with BKC's standard site approval

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procedures ("Site Approval"). Site Approval is a prerequisite to authorization
by the Developer to construct a Burger King Restaurant at a particular location.
The Developer shall commence the Site Approval process by completing and
submitting to BKC a then-current form of BKC's "Site Acquisition Package" with a
request for BKC Site Approval. The Developer must allow BKC a reasonable time,
and in no event less than fifteen (15) days, in which to review and consider
Developer's request for Site Approval. The Developer acknowledges that Site
Approval can be granted only by means of a written approval duly executed by an
authorized representative of BKC and no other approval, whether oral or written,
shall be effective or binding on BKC. The Developer shall not, except at the
Developer's own risk, enter into any legally binding commitments with vendors or
lessors of potential site property until BKC has given Site Approval in writing.
BKC may, as a part of reviewing a Site Acquisition Package, require Developer to
bear the cost of a Sales Transfer Study to be performed by an independent
vendor, the results of which may be considered by BKC prior to making a final
decision with regard to a proposed restaurant location.

              (b) Without limiting any of the foregoing, Developer acknowledges
that BKC may, in its sole discretion, deny Site Approval for any site if, for
any reason, the site does not meet BKC's criteria for Site Approval. If BKC
believes in its sole and absolute discretion that development of a Burger King
Restaurant at the site proposed by Developer will have a material and
unreasonable impact upon sales to or at an existing Burger King Restaurant, BKC
may, at its sole discretion, deny Site Approval or condition Site Approval on
the Developer's agreement to contribute to the costs of resolving any
development dispute, including attorneys' fees, amounts paid to settle the
dispute, and any compensation awarded. Any such contribution from the Developer
would be negotiated by the parties prior to developing the site and executing
the franchise agreement. Developer agrees to participate and cooperate in any
mediation or arbitration conducted pursuant to the BKC Procedures for Resolving
Development Disputes in the event an objection is received by BKC from an
objecting franchisee in connection with the development of Developer's site.

              (c) BKC shall evidence Site Approval with the issuance of a Site
Approval Memo, which, among other things, shall set forth the specific Target
Location and the agreed upon Opening Date for the Burger King Restaurant. The
Site Approval Memo, when issued and executed by the Developer, shall constitute
an amendment to the Development Schedule.

         4.5 Construction Approval. After obtaining Site Approval, the following
requirements relating to site acquisition and construction shall apply:

              (a) On a site to be developed by Developer directly ("DTL Basis"),
Developer Assumes all responsibility for locating, acquiring and developing the
real estate site and for construction of the Burger King Restaurant to be
developed, at no cost, liability or expense to BKC. If Developer acquires a
leasehold interest in the site, Developer's lease shall be for a term extending
at least through the then current term of the franchise agreement applicable to
the site.

              (b) Any Burger King Restaurant shall be constructed in a manner
authorized and approved by BKC and equipped and furnished in accordance with BKC
approved plans and specifications. BKC will make available to Developer for its
information BKC's standard plans and specifications for freestanding Burger King
Restaurants. Unless BKC otherwise agrees, the Developer shall construct all of
the Restaurants in accordance with the latest approved Current Image for Burger
King Restaurants. If Developer requires architectural and engineering services,
then Developer will contract for those services independently at its own
expense.

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Developer shall, as a condition precedent to the development of a Burger King
Restaurant, obtain from BKC prior written architectural and design approval of
Developer's plans ("Construction Approval"). BKC shall determine the type of
facility, site layout, and equipment configuration for the restaurant to be
developed hereunder, including the building design, style, size and interior
decor, as well as the type of equipment, service format and equipment
arrangement for any restaurant, which may be changed, amended, or modified by
BKC from time to time. The above notwithstanding, Developer shall be responsible
for constructing the restaurant in accordance with all federal, state and locate
statutes, laws, regulations and codes.

         4.6 No Franchise Without Site Approval. Nothing in this Agreement shall
be construed as obligating BKC to grant a franchise agreement for any site which
has not been approved or in a case in which the completed building does not
conform to plans and specifications approved by BKC.

         4.7 No Representation Regarding Site. Developer agrees that BKC's
approval of any site or BKC's approval of any specifications or other matters
relating to the development of a restaurant does not amount to a representation
or warranty relating directly or indirectly to the success or viability of the
Burger King Restaurant. Developer shall not rely upon any warranty,
representation or advice that may be given by any person by or on behalf of BKC
directly or indirectly relating to the success or viability of the Burger King
Restaurant, unless such representation, warranty or advice is given in writing
by a member of the board of directors of BKC.

                                    ARTICLE V
                     FEES, DEPOSITS AND FRANCHISE AGREEMENTS

         5.1 Franchise Fee Deposit. The Developer shall be required to pay to
BKC an amount equal to Five Thousand and No/100 Dollars ($5,000.00), multiplied
by the number of Development Units identified on Exhibit "C" attached hereto
(the "Franchise Fee Deposit"). The aggregate amount of the Franchisee Fee
Deposit shall be equal to Sixty Thousand and No/100 Dollars ($60,000.00), and
said aggregate amount shall be paid by Developer to BKC upon execution of this
Agreement.

         5.2 Franchise Fee. Upon the execution of each franchise agreement
covering a new Burger King Restaurant to be opened during the Term of this
Agreement, Developer shall also pay to BKC the then current franchise fee being
charged by BKC as provided in the UFOC for new franchise agreements for similar
types of Burger King Restaurants in the United States (the "Franchise Fee").

         5.3 Credit Against Franchise Fee. Notwithstanding the foregoing, upon
the execution of the franchise agreement and the opening of a Development Unit
pursuant to this Agreement, Developer shall be entitled to a credit against the
Franchise Fee due for each new Development Unit opened during the Term in the
amount of the Franchise Fee Deposit previously paid to BKC with respect to such
restaurant, if applicable (the "Credit"); provided however, that the aggregate
amount of the Credit shall not exceed the aggregate amount of the Franchise Fee
Deposit collected by BKC pursuant to Section 5.1 above.

         5.4 Sales Transfer Study. As previously discussed in Section 4.4,
Developer may bear the nonrefundable cost of a Sales Transfer Study in
connection with the submission of a Site Acquisition Package.

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         5.5 Franchise Agreement. Developer agrees to sign (and, to the extent
applicable, as may be required by BKC, have its Managing Owner and additional
Owners sign) and return to BKC, no less than ten (10) days prior to the opening
of the Burger King Restaurant, the then-current form of BKC franchise agreement
(the "Franchise Agreement"), and Lease, if applicable, and Guarantee,
Indemnification and Acknowledgment Agreement, if applicable, together with the
appropriate Franchise Fee, less any Franchise Fee Deposit paid to BKC pursuant
to Section 5.1 of this Agreement. BKC will use its best efforts to send the
Franchise Agreement (and Lease, if applicable) to Developer fifteen (15) to
forty-five (45) days before the opening date of each Burger King Restaurant to
be developed hereunder. Developer agrees that the Burger King Restaurant shall
not be opened prior to the execution of a Franchise Agreement (and Lease, if
applicable) and payment of the Franchise Fee and any other obligations owed by
Developer to BKC. Developer understands and agrees that the Franchise Agreement
will obligate Developer to, among other things, pay BKC monthly royalties and
advertising contributions.

                                   ARTICLE VI
                               INVESTMENT SPENDING

         During the Term, Developer agrees to expend a minimum of one-half of
one percent (0.5%) of the Gross Sales at each of Developer's Restaurants located
within the Development Area on local marketing initiatives approved by BKC's
local marketing manager. Developer further agrees that these funds shall be
applied toward the purchase of broadcast media and point-of-purchase material in
support of broadcast media.

                                   ARTICLE VII
                                     DEFAULT

         7.1 Events of Default. Each of the following events shall constitute a
material event of default under this Agreement (individually, an "Event of
Default," and collectively, the "Events of Default"):

              (a) The Developer fails at any time during the Term of this
              Agreement to meet, maintain and satisfy fully the Franchise
              Approval Criteria requirements set forth in Article IV, whether
              for the purpose of seeking or maintaining Expansion Approval or in
              the day to day operation of Developer's existing Burger King
              Restaurant(s).

              (b) The Developer fails to adhere to the Development Schedule in
              accordance with Article III and Exhibit "B" of this Agreement.

              (c) The Developer fails to obtain Site Approval, Construction
              Approval or any other approval required from BKC prior to the
              commencement of construction.

              (d) The Developer fails to pay any amount when due under this
              Agreement.

              (e) Except as permitted by Article IX of this Agreement, the
              Developer assigns, encumbers, transfers, sub-licenses or otherwise
              disposes of, or attempts to assign, transfer, encumber, or
              otherwise dispose of this Agreement in whole or in part.

              (f) Dissolution, termination of existence, insolvency or business
              failure of

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              either the Developer or the Guarantor, or the appointment of a
              custodian or receiver of any part of the property of the Developer
              or the Guarantor, or a trust mortgage or an assignment for the
              benefit of creditors by either the Developer or the Guarantor; or
              the recording or existence of any lien for past due taxes, or the
              commencement by or against either the Developer or the Guarantor
              of any proceeding under any bankruptcy or insolvency laws; or
              service on BKC of any writ, summons or process designed to affect
              any account or property of either the Developer or the Guarantor,
              any of which is not released, dismissed, discharged, bonded or
              otherwise adequately reserved against within thirty (30) days.

              (g) The Developer opens a Burger King Restaurant without Franchise
              Approval, Site Approval, Construction Approval, payment of all
              Franchise Fees and other fees or execution of all required
              agreements and documents; or Developer opens a Burger King
              Restaurant without having a designated restaurant manager, the
              Operating Partner or, if applicable, the Managing Director and the
              Managing Owner (unless otherwise agreed by BKC), complete the
              training program required by Section 4.3.1(a) of this Agreement.

              (h) If the Developer or the Guarantor challenges the validity of
              any of the Burger King Marks or other trademarks or names,
              copyrights or other intellectual property rights of BKC.

              (i) Any equity interest in Developer (if Developer is an entity)
              which is restricted as to transfer and/or encumbrance under the
              Guidelines, including the interest of the Managing Owner, is
              assigned, transferred or otherwise encumbered without the prior
              written consent of BKC, which consent may be withheld by BKC in
              its sole discretion.

              (j) The information contained in the Application is false or
              misleading or omits a material fact.

              (k) The Developer or Guarantor fails to comply with any of the
              other terms, provisions or conditions of this Agreement.

              (l) The Developer, the Operating Partner, any Owner (as defined in
              the Guidelines) or the Guarantor fails to comply with the
              provisions of any Franchise Agreement, lease or any other
              obligation owed to BKC and fails to cure such default within any
              applicable cure period.

              (m) BKC fails to comply with any of its material obligations under
              this Agreement.

         7.2 Default Cure Provisions

                  7.2.1 Upon the occurrence of an Event of Default under
Sections 7.1(a), 7.1 (d), 7.1(e), 7.1(i), 7.1(k), or 7.1(m) of this Agreement,
the breaching party shall have sixty (60) days from receipt of notice from the
non-breaching party to cure such Event of Default.

                  7.2.2 Upon the occurrence of an Event of Default under Section
7.1(b), Developer shall have thirty (30) days from receipt of notice from BKC to
cure such Event of

                                       10
<PAGE>   11
Default by agreeing to pay Additional Royalties (as defined below) with respect
to any Burger King Restaurant that Developer fails to open in accordance with
the Development Schedule (the "Unopened Restaurant") until the opening of the
Unopened Restaurant; provided, however, that if Developer fails to develop and
open the Unopened Restaurant within six (6) months of the applicable date set
forth in the Development Schedule (the "Scheduled Opening Date"), BKC may, at
its option, terminate this Agreement upon written notice to Developer, and
Developer shall have no further opportunity to cure. "Additional Royalties"
shall mean an amount equal to 4.0% of the average per restaurant Gross Sales of
Burger King Restaurants in the Chicago ADI for the 12-month period ending on the
Scheduled Opening Date, divided by 365 and multiplied by the number of days
calculated from the Scheduled Opening Date until the actual Opening Date,
payable monthly in arrears by the 10th day of each month. Additional Royalties
for each Unopened Restaurant shall be imposed for each month (or portion
thereof) until Developer opens the Unopened Restaurant. To illustrate, assume
that Developer fails to open one (1) Restaurant by the Scheduled Opening Date
but opens the Restaurant 45 days after the Scheduled Opening Date. If the
average per restaurant Gross Sales of Burger King Restaurants in the Chicago ADI
for the 12-month period ending on the Scheduled Opening Date is $1,000,000, then
Developer would be required to pay Additional Royalties in the amount of
$4,931.50 ($1,000,000 x .04 divided by 365, multiplied by 45). If Developer
fails to pay Additional Royalties to BKC when due hereunder, and such failure
continues for a period of five (5) days after receipt of written notice from
BKC, BKC may, at its option, terminate this Agreement upon written notice to
Developer, and Developer shall have no further opportunity to cure. In the event
that Developer challenges the applicability or efficacy of the Additional
Royalties, or if payment of Additional Royalties is held to be void or
unenforceable for any reason, BKC shall be entitled to any and all other damages
and remedies otherwise provided herein, at law or in equity, plus attorneys'
fees and costs. The parties agree that the amount of the Additional Royalties is
reasonable under the circumstances, it being extremely difficult to determine
the actual amount of damages that BKC would suffer from an Event of Default
under Section 7.1(b) of this Agreement.

                  7.2.3 An Event of Default under Section 7.1(j) of this
Agreement is non-curable and upon the occurrence of either such Event of
Default, BKC may terminate this Agreement by giving written notice of
termination to Developer.

                  7.2.4 Upon the occurrence of an Event of Default under Section
7.1(c) 7.1(g) or 7.1(l) , Developer shall have ten (10) days from receipt of
notice from BKC to cure such Event of Default.

                  7.2.5 Upon the occurrence of an Event of Default under Section
7.1(h) of this Agreement, Developer shall have two (2) days from receipt of
notice from BKC to cure such Event of Default.

         7.3 BKC Remedies. Upon the occurrence of an Event of Default under
Sections 7.1(a) through 7.1(l), and the failure of the Developer to cure such
default within the applicable cure period set forth above (if any), BKC may, at
its sole discretion, terminate this Agreement by giving written notice of
termination to Developer, whereupon all the rights granted to the Developer
under this Agreement shall terminate automatically and without further notice or
action by BKC; provided, however, this Agreement shall not terminate with
respect to any Development Unit for which Developer has been granted Site
Approval under this Agreement and the Event of Default is one under Section
7.1(a).

         7.4 Developer Remedies. Upon the occurrence of an Event of Default
under

                                       11
<PAGE>   12
Section 7.1(m), the Developer may, at its sole discretion, deliver written
notice to BKC that this Agreement is thereby immediately terminated.

         7.5 Effect of Termination.

                  7.5.1 By BKC. Upon termination of this Agreement due to an
Event of Default under Section 7.1(a) through 7.1(l) above, all Franchise Fee
Deposits shall be retained by BKC, all rights and obligations of each party
arising or due under this Agreement after the date of termination shall be
canceled, and neither party shall owe any continuing duty or obligation to the
other under this Agreement; provided, however, that nothing contained in this
Section 7.5.1 or elsewhere in this Agreement shall affect or modify the rights
and obligations of the parties under any existing Franchise Agreement or other
agreement and the Developer shall not be entitled to any further credits as
provided in Sections 5.3 above.

                  7.5.2 By Developer. Upon termination of this Agreement due to
an Event of Default under Section 7.1(m) above, prior to the granting of Site
Approval under this Agreement, the Developer shall have as its sole and
exclusive remedy the right to a refund of the balance of the Franchisee Fee
Deposit held by BKC not otherwise credited by BKC under any Franchise Fee due
upon previously executed Franchise Agreements, and a refund of any Lease Deposit
which it has paid to BKC pursuant to a Deposit Agreement. Upon the termination
of this Agreement due to an Event of Default under Section 7.1(m) above, after
the granting of Site Approval under this Agreement, Developer shall have all
remedies available to it in law and equity based upon breach of contract.

                  7.5.3 BKC's Right to Develop. Upon termination of this
Agreement, whether resulting from an Event of Default under Sections 7.1(a)
through (l) or from expiration of the Term of this Agreement, BKC shall have the
unrestricted right to develop and operate, or establish, approve or license
others to develop and operate Burger King Restaurants within the Development
Area.

                                  ARTICLE VIII
                               SECRECY OF PROPERTY

         The Developer shall at all times, both during the Term of this
Agreement and following the termination of this Agreement, maintain in strict
confidence BKC's operational manuals, marketing information and methods, and all
information and knowledge relating to the methods of operating and the
functional know-how relating to Burger King Restaurants revealed by BKC to
Developer. Neither party shall disclose proprietary information of the other
party to any third party or use or permit any third party to use this
proprietary information or any part thereof for any purpose whatsoever, except
that during the Term of this Agreement or any Franchise Agreement executed
pursuant to this Agreement, Developer may disclose to Developer's employees such
proprietary information as may be necessary for carrying out Developer's
obligations under this Agreement or the Franchise Agreement and for the
operation of licensed Burger King Restaurants. The restrictions contained in
this Article VIII shall cease to apply to any information which is or comes
within the public domain except where this results from a breach of this
Article.

                                   ARTICLE IX
                             ASSIGNMENT AND TRANSFER

         9.1 Transfer of Interest by Developer. BKC is relying on Developer's
management and financial expertise in granting the rights contained in this
Agreement. Accordingly, this

                                       12
<PAGE>   13
Agreement and the rights granted to Developer may not be assigned, transferred,
whether directly or indirectly, or by operation of law, or encumbered by
Developer in whole or in part, nor shall Developer have any right to sub-license
any of the rights granted under this Agreement. Notwithstanding the foregoing,
Developer may assign this Agreement, with the prior written consent of BKC, to
an approved corporation or other entity, the stock or other securities of which
are wholly owned by Developer or Guarantor. BKC may impose reasonable conditions
on the assignment, including without limitation, (i) those set forth in the
Burger King Restaurant Franchise Agreements for Individuals or Entities, as the
case may be, and as described in BKC's UFOC and (ii) the subsequent sale,
transfer, assignment or issuance of shares of stock or other securities of any
such corporation or other entity shall be subject to BKC's approval, and shall
be in compliance with the Guidelines for the Preparation of Corporate Governing
Instruments and, if applicable, the Guidelines.

         9.2 Transfer of Interest by BKC. BKC may assign this Agreement, in
whole or in part, at any time in its sole discretion.

                                    ARTICLE X
                                 INDEMNIFICATION

         Developer is responsible for all losses, damages and/or contractual
liabilities to third parties arising out of or relating to any of the
obligations, undertakings, promises and representations of Developer under this
Agreement, and for all claims or demands for damages to property or for injury,
illness or death of persons directly or indirectly resulting therefrom.
Developer agrees to defend, indemnify and save BKC and BKC's officers,
directors, agents, employees, attorneys, accountants, subsidiaries, affiliates
and parent company harmless of, from and with respect to any such claims,
demands, losses, obligations, costs, expenses, liabilities, debts or damages
(including, without limitation, reasonable attorney's fees). BKC shall notify
Developer of any such claims, and Developer shall be given the opportunity to
assume the defense of the matter. If Developer fails to assume the defense, BKC
may defend the action in the manner it deems appropriate, and Developer shall
pay to BKC all costs, including attorney fees, incurred by BKC in effecting such
defense. BKC's right to indemnity under this Agreement shall arise and be valid
notwithstanding that joint or concurrent liability may be imposed on BKC by
statute, ordinance, regulation or other law.

                                   ARTICLE XI
                          REPRESENTATIONS AND COVENANTS

         11.1 Developer's Representations and Covenants.

                  11.1.1 Non-Contravention. This Agreement is a valid and
binding obligation of Developer and its affiliates, enforceable in accordance
with its terms. Neither the execution nor the delivery of this Agreement, nor
the consummation of the transactions contemplated by it, will result in a breach
of, or give rise to termination of, or accelerate the performance required by
any terms of any agreement to which Developer is a party, or constitute a
default thereunder, or result in the creation of any lien, charge or encumbrance
upon any of the assets of Developer.

                  11.1.2 Consents. No consent or approval of a third party is
required before Developer may enter into this Agreement.

                  11.1.3 Solvency. Developer covenants that it is not insolvent
and has sufficient funds on hand at this time and sufficient borrowing capacity
with a commercial financial

                                       13
<PAGE>   14
institution to satisfy all of its obligations under this Agreement.

                  11.1.4 No Broker. Developer has not appointed and does not
contemplate appointing any broker, agent or other person who would be entitled
to a fee or commission upon the execution of this Agreement. Developer agrees to
hold BKC safe and harmless from any fee or commission claimed by any person
purporting to act for or on Developer's behalf. Nothing in this Agreement shall
be construed as prohibiting any party from employing attorneys, accountants or
patent or trademark agents to advise and carry out professional services on its
behalf.

                  11.1.5 Covenant by Developer. Developer represents that it has
had an opportunity to review the form of Franchise Agreement currently being
issued to franchisees and Developer hereby covenants that it will not do any act
or cause to be done anything inconsistent with the provisions of that Franchise
Agreement.

         11.2 BKC's Representations and Covenants.

                  11.2.1 Non-Contravention. This Agreement is a valid and
binding obligation of BKC enforceable in accordance with its terms. Neither the
execution nor the delivery of this Agreement, nor the consummation of the
transactions contemplated by it, will result in a breach of, or give rise to
termination of, or accelerate the performance required by terms of this
Agreement or constitute a default thereunder, or result in the creation of any
lien, charge or encumbrance upon any of the assets of BKC.

                  11.2.2 Consents. No consent or approval of a third party is
required before BKC may enter into this Agreement.

                  11.2.3 No Broker. BKC has not appointed and does not
contemplate appointing any broker, agent or other person who would be entitled
to a fee or commission upon the execution of this Agreement or the completion of
any transactions contemplated by this Agreement. BKC agrees to hold Developer
safe and harmless from any fee or commission claimed by any person purporting to
act for or on BKC's behalf. Nothing in this Agreement shall be construed as
prohibiting any party from employing attorneys, accountants or patent or
trademark agents to advise and carry out professional services on its behalf.

                                   ARTICLE XII
                                  SEVERABILITY

         If any of the provisions of this Agreement may be construed in more
than one way, one of which would render the provision illegal or otherwise
voidable or unenforceable, such provision shall have the meaning which renders
it valid and enforceable. The language of all provisions of this Agreement shall
be construed according to its fair meaning and not strictly against any party.
In the event any court or other government authority shall determine any
provision in this Agreement is not enforceable as written, the parties agree
that the provision shall be amended so that it is enforceable to the fullest
extent permissible under the laws and public policies of the jurisdiction in
which enforcement is sought and affords the parties the same basic rights and
obligations and has the same economic effect. If any provision in this Agreement
is held invalid or otherwise unenforceable by any court or other government
authority, such findings shall not invalidate the remainder of the agreement
unless in the opinion of such court the effect of such determination has the
effect of frustrating the purpose of this Agreement, whereupon BKC shall have
the right by notice in writing to the other party to

                                       14
<PAGE>   15
immediately terminate this Agreement.

                                  ARTICLE XIII
                                ENTIRE AGREEMENT

         This Agreement, together with the Application, Franchise Agreement,
Management Commitment and Capitalization Plan Forms, and franchise approval
letter issued for each Burger King Restaurant to be developed hereunder,
embodies the entire agreement and understanding between the parties with respect
to the subject matter hereof and cancels and supersedes all prior negotiations,
understandings and agreements, written or oral, relating to the development and
franchising of Burger King Restaurants at or within the Development Area. The
parties acknowledge that they are not relying upon any representation, warranty,
condition, agreement or understanding, written or oral, except as herein
specified. Neither this Agreement nor any term or provision of it may be
changed, waived, discharged, or modified orally. The only changes, waivers,
discharges or modifications that will be effective will be those which are in
writing, signed by the parties to this Agreement.

                                   ARTICLE XIV
                                     NOTICES

         Any notice, demand, request, consent, approval, designation,
specification or other communication given or made, or required to be given or
made hereunder, shall be in writing and shall be hand-delivered by courier,
delivered by an overnight courier or delivery service or sent by registered
mail, postage fully prepaid, to the following addresses:

         If to BKC:          BURGER KING CORPORATION
                             17777 Old Cutler Road
                             Miami, FL  33157
                             Attn:  General Counsel

         If to Developer     BRAVOKILO, INC.
         or Guarantor:       4220 Edison Lakes Park
                             Mishawaka, Indiana 46545
                             Attn: Mr. Daniel Fitzpatrick, President

or to such other address or person as either party may hereafter designate. All
such notices shall be effective and deemed delivered upon actual delivery to the
above addresses.

                                   ARTICLE XV
                                   NON-WAIVER

         Failure of any party hereto to insist upon strict performance of any of
the terms or provisions of this Agreement shall not be deemed a waiver of any
subsequent breach or default of the terms or provisions of this Agreement, nor
shall acceptance by BKC of any money paid on behalf of Developer under this
Agreement or any Franchise Agreement after any breach or default by Developer of
any one or more of the terms or provisions of this Agreement or any Franchise
Agreement, whether before or after notice to or knowledge of the breach or
default by BKC, constitute a waiver by BKC of such breach or default.

                                       15
<PAGE>   16
                                   ARTICLE XVI
                           HEADINGS AND ARTICLE TITLES

         The headings as to contents of particular articles and paragraphs are
inserted only for convenience and reference and are in no way to be construed as
part of this Agreement or as a limitation on the scope of any of the terms or
provisions of this Agreement.

                                  ARTICLE XVII
                             RELATIONSHIP OF PARTIES

         Nothing in this Agreement shall be construed to make the parties to
this Agreement partners, joint venturers, or agents of each other and no
fiduciary relationship between the parties exists. Neither the Developer nor the
Guarantor shall have any right to bind or obligate BKC in any way nor shall
Developer or the Guarantor represent that it has any right to do so.

                                  ARTICLE XVIII
                                 INTERPRETATION

         18.1 Grammar. Unless repugnant to or inconsistent with the context,
wherever the singular is used in this Agreement it shall include the plural and
vice versa; the masculine shall include the feminine and neuter, and the neuter
the masculine and feminine; reference to persons shall include corporations and
vice versa.

         18.2 Successors and Assigns. The terms "BKC" and "Developer," shall
include their successors in title and assigns; provided, however, that
Developer's rights herein are not assignable except as specifically provided in
Section 9.1 of this Agreement.

                                   ARTICLE XIX
                           GOVERNING LAW/JURISDICTION

         19.1 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Florida.

         19.2 Jurisdiction. The parties hereto acknowledge and agree that the
United States District Court for the Southern District of Florida, or if such
court lacks jurisdiction, the 11th Judicial Circuit Court (or its successor) in
and for Miami-Dade County, Florida, shall be the venue and exclusive proper
forum in which to adjudicate any case or controversy arising, either directly or
indirectly, under or in connection with this Agreement, the Franchise Agreement
or related documentation and any other agreement between the parties, and the
parties further agree that, in the event of litigation arising out of or in
connection with this Agreement, the Franchise Agreement, or related
documentation or any other agreement between the parties in these courts, they
will not contest or challenge the jurisdiction or venue of these courts.

         19.3 Waiver of Jury Trial. Each party hereto hereby waives the right to
trial by jury in any action, suit, proceeding or counterclaim of any kind with
respect to the subject matter hereof or otherwise in connection with this
Agreement.

         19.4 Attorneys' Fees. The prevailing party in any action with respect
to the subject matter hereof or otherwise in connection with this Agreement
shall be entitled to recover reasonable costs and expenses (including attorneys'
fees and expenses) incurred by it in connection with the proceedings.

                                       16
<PAGE>   17
                                   ARTICLE XX
                           TRADEMARKS AND TRADE NAMES

         20.1 Disclaimer of Interest. Developer and Guarantor acknowledges that
it has no part in the creation or development of the Burger King Marks and
disclaims any right or interest therein, or to the goodwill derived therefrom.

         20.2 Notice of Challenge. Developer shall immediately refer to BKC any
threat or challenge to the validity, right or usage of the Burger King Marks, or
to any of BKC's patents or copyrights. BKC shall be entitled to exercise
absolute discretion in deciding what action, if any, should be taken in such
matters.

         20.3 No Unauthorized Use. Developer shall not use any names, trademarks
or trade names of BKC or any variations or abbreviations thereof in any manner
without prior written authorization from BKC.

         20.4 Assistance to BKC. Developer agrees to join and assist in the
defense of any action relating to the right to use or the validity of the Burger
King Marks, and BKC agrees to indemnify Developer for reasonable costs and
expenses reasonably incurred in assisting BKC in defense of such action,
provided that BKC shall have the right to select the attorney who will represent
Developer in the action. Developer shall not institute any legal action or other
kind of proceeding based upon the Burger King Marks without the prior written
approval of BKC.

                                   ARTICLE XXI
                                   COMPETITION

         Developer and Guarantor acknowledge and agree that the Burger King
System is unique, especially in the areas of building design, food preparation
format, service format, menu, training program, store operations and related
manuals, bookkeeping and report formats, marketing and advertising formats, and
in certain other areas not listed above, and has valuable goodwill which it
develops and maintains pertaining to the foregoing. Developer and Guarantor
acknowledge that BKC shall make its knowledge and expertise in the above areas
available to Developer for use in assisting Developer in connection with
successfully operating generally a Burger King Restaurant.

                                  ARTICLE XXII
                                    SURVIVAL

         Except as expressly provided in this Agreement, the termination of this
Agreement shall be without prejudice to any rights which shall have accrued to
the parties prior to the date of such termination, shall not affect or diminish
the binding force or effect of any provision of this Agreement which expressly
or by implication shall come into force or continue in force after termination,
shall not release the Developer or Guarantor from obligations to pay any sums
owed under this Agreement or to pay and Franchise Fees, royalties or other sums
to BKC under franchise agreements and other agreements, and shall not terminate
any franchise agreements previously entered into between the parties. The
obligations of Developer under Articles VIII, X, XI, XVII, XIX, XX, and XXI
shall survive the termination of this Agreement. The obligations of the
Guarantor under Article XXIII shall survive the termination of this Agreement.

                                       17
<PAGE>   18
                                  ARTICLE XXIII
                                  THE GUARANTOR

         23.1 Stock Ownership. The Guarantor represents and warrants to BKC that
it owns 100% of Developer.

         23.2 Guaranty. Guarantor hereby agrees to unconditionally guaranty the
payment and performance of all debts, obligations and liabilities of the
Developer to BKC arising pursuant to this Agreement, or any other agreement with
BKC relating directly or indirectly to the Burger King Restaurants to be
developed and opened pursuant hereto (the "BKC Agreements"), together with all
costs of collection, compromise or enforcement, including reasonable attorneys'
fees, incurred with respect to any such debts, obligations or liabilities or
with respect to this or any other guaranty thereof or any bankruptcy proceeding
or other similar action affecting the rights of the Developer's creditors
generally (all of the foregoing being referred to collectively as the
"Obligations"). This guaranty by the Guarantor shall continue in full force and
effect until the Developer has fully paid and performed all of the Obligations.
In connection with the guaranties set forth above (collectively, the
"Guaranties"), each of the parties to this Agreement hereby agrees as follows:

              (a) The Guaranties shall not be impaired by any modification,
              supplement, extension or amendment of the BKC Agreements or any of
              the Obligations, nor by any modification, release or other
              alteration of any of the Obligations hereby guaranteed, nor by any
              agreements or arrangements whatever with the Developer or any one
              else;

              (b) The liability of the Guarantor is primary, direct and
              unconditional and may be enforced without requiring BKC first to
              resort to any other right, remedy or security;

              (c) The Guarantor shall have any right of subrogation,
              reimbursement or indemnity whatsoever, unless and until the
              Obligations are paid or performed in full;

              (d) If the Guarantor should at any time become insolvent or make a
              composition, trust mortgage or general assignment for the benefit
              of creditors, or if a bankruptcy proceeding or any action under a
              similar law affecting the rights of creditors generally shall be
              filed or commenced by, against or in respect of the Guarantor, any
              and all obligations of Guarantor shall, at BKC's option,
              immediately become due and payable without notice;

              (e) If any payment or transfer to BKC which has been credited
              against any Obligation, is voided or rescinded or required to be
              returned by BKC, whether or not in connection with any event or
              proceeding described in Section 23.2(d), the Guaranties shall
              continue in effect or be reinstated as though such payment,
              transfer or recovery had not been made;

              (f) Except as otherwise provided in this Agreement, each of the
              Guaranties shall be construed as an absolute, unconditional,
              continuing and unlimited obligation of the Guarantor without
              regard to the regularity, validity or

                                       18
<PAGE>   19
              enforceability of any of the Obligations, and without regard to
              whether any Obligation is limited, modified, voided, released or
              discharged in any proceeding under any law affecting the rights of
              creditors generally;

              (g) Any termination of the Guaranties shall be applicable only to
              Obligations accruing prior to termination or having their
              inception after the effective date of such termination and shall
              not affect Obligations having their inception prior to such date;

              (h) Any and all present and future debts and obligations of the
              Developer to the Guarantor hereunder are hereby waived and
              postponed in favor of and subordinated to the full payment and
              performance of the Obligations; and

              (i) The Guarantor waives to the greatest extent permitted by law:
              notice of acceptance hereof; presentment and protest of any
              instrument, and notice thereof; notice of default; notice of
              foreclosure; notice of any modification, release or other
              alteration of any of the Obligations or of any security therefor
              and all other notices to which Guarantor might otherwise be
              entitled.

         THIS AGREEMENT has been executed by the parties as of the day and year
indicated on the first page of this Agreement.

                                           BURGER KING CORPORATION  ("BKC")

                                           By:__________________________________
                                                       Vice President

                                           Attest:______________________________
                                                       Assistant Secretary

                                           BRAVOKILO, INC.

                                           By:__________________________________

                                           Attest:______________________________
                                                          (DEVELOPER)

                                           QUALITY DINING, INC.

                                           By:__________________________________

                                           Attest:______________________________
                                                          (GUARANTOR)

                                       19
<PAGE>   20
                                   EXHIBIT "A"

                         DESCRIPTION OF DEVELOPMENT AREA

The "Development Area" shall be comprised of the following counties in Michigan,
Indiana and Ohio:

-    Berrien County, Michigan
-    Cass County, Michigan
-    Van Buren County, Michigan
-    La Porte County, Indiana
-    St. Joseph County, Indiana
-    Elkhart County, Indiana
-    La Grange County, Indiana
-    Starke County, Indiana
-    Marshall County, Indiana
-    Kosciusko County, Indiana
-    Pulaski County, Indiana
-    Fulton County, Indiana
-    Steuben County, Indiana
-    Noble County, Indiana
-    De Kalb County, Indiana
-    Whitley County, Indiana
-    Allen County, Indiana
-    Wabash County, Indiana
-    Huntington County, Indiana
-    Wells County, Indiana
-    Adams County, Indiana
-    Jay County, Indiana
-    Paulding County, Ohio
-    Van Wert County, Ohio
-    City Limits of Winchester, Indiana

                                       20
<PAGE>   21
                                   EXHIBIT "B"

                LIST OF OUTSTANDING TRAS IN THE DEVELOPMENT AREA

   FRANCHISEE                                           TARGET LOCATION
   ----------                                           ---------------
Tiederman/Dankert                          US-31 & State Road, 25, Rochester, IN

                                       21
<PAGE>   22
                                   EXHIBIT "C"

                   DEVELOPMENT UNITS AND DEVELOPMENT SCHEDULE

DEVELOPMENT UNITS

The Development Units credited to the Developer pursuant to the terms and
conditions set forth in Article III shall be as follows:

1.       If the Restaurant is a Traditional Burger
         King Restaurant (as defined below):              1        Unit

2.       If the Restaurant is an In-Line Burger
         King Restaurant (as defined below):              1        Unit

3.       If the Restaurant is located in a Co-Branded
         Unit (as defined below)                          1        Unit

DEFINITIONS

1.       The term "Traditional Burger King Restaurant" means a freestanding
         building, or retail space within a building, with an area of 2,000
         square feet or more.

2.       The term "In-Line Burger King Restaurant" means a freestanding
         building, or retail space within a building, with an area of 2,000
         square feet or more.

3.       The term "Co-Branded Unit" means one or more business concepts, such as
         retail gas stations, food service, convenience stores or similar
         facilities, which are located at the premises where a Burger King
         restaurant is located and operated.

DEVELOPMENT SCHEDULE

              (a) During Year 1 (October 1, 2000 to September 30, 2001), one (1)
              Development Unit opened by June 30, 2001 and one (1) Development
              Unit opened by September 30, 2001 within the Development Area.

              (b) During Year 2 (October 1, 2001 to August 31, 2002), two (2)
              Development Units opened by June 30, 2002 and one (1) Development
              Unit opened by August 31, 2002 within the Development Area for a
              cumulative total of five (5) Development Units.

              (c) During Year 3 (September 1, 2002 to June 30, 2003), three (3)
              Development Units opened by June 30, 2003 within the Development
              Area for a cumulative total of eight (8) Development Units.

              (d) During Year 4 (July 1, 2003 to June 30, 2004), four (4)
              Development Units opened by June 30, 2004 within the Development
              Area for a cumulative total of twelve (12) Development Units.

                                       22<PAGE>   1
Exhibit 10-AO

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT (this "Agreement"), dated October 30, 2000, is made by
QUALITY DINING, INC., an Indiana corporation, having its principal place of
business at 4220 Edison Lakes Parkway, Mishawaka, Indiana (the "Company"), and
DANIEL B. FITZPATRICK, (the "Executive").

                                    Recitals

         1.       The Executive is currently employed as the Chairman of the
Board, President and Chief Executive Officer of the Company and the Company
desires to assure the continued service of Executive.

         2.       The Executive is willing to continue such employment by the
Company on the terms set forth herein.

                                    Agreement

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

         1.       Certain Definitions.

                  (a)      "Effective Date" shall mean the date of this
Agreement.

                  (b)      "Change of Control Date" shall mean the first date
during the Employment Period (as defined in Section 1 (c) on which a Change of
Control (as defined in Section 2) occurs. Anything in this Agreement to the
contrary notwithstanding, if a Change of Control occurs and if the Executive's
employment with the Company is terminated or the Executive ceases to be an
officer of the Company prior to the date on which the Change of Control occurs,
and if it is reasonably demonstrated by the Executive that such termination of
employment or cessation of status as an officer (i) as at the request of a third
party who has taken steps reasonably calculated to effect the Change of Control,
or (ii) otherwise arose in connection with or anticipation of the Change in
Control, then for all purposes of this Agreement the "Change of Control Date"
shall mean the date immediately prior to the date of any such termination of
employment or cessation of officer status.

                  (c)      "Employment Period" shall mean the period commencing
on the Effective Date and, unless earlier terminated under Section 5 hereof or
extended as hereinafter provided, ending on the 30th day of October, 2003.
Commencing on October 31, 2001, and on each anniversary of such date (each such
anniversary shall be hereinafter referred to as the "Renewal Date"), the
Employment Period shall be automatically extended so as to terminate on the
third anniversary of such Renewal Date.

                  (d)      "Board" shall mean the Board of Directors of the
Company.

         2.       Change of Control. For the purpose of this Agreement, "Change
of Control" shall mean:
<PAGE>   2
                  (a)      The acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act") (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act
as in effect from time to time) of 20% or more of either (i) the then
outstanding shares of common stock of the Company or (ii) the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors; provided, however, that the following
acquisitions shall not constitute an acquisition of control: (A) any acquisition
directly from the Company (excluding an acquisition by virtue of the exercise of
a conversion privilege), (B) any acquisition by the Company, (C) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company, (D) any acquisition by any
corporation pursuant to a reorganization, merger or consolidation, if, following
such reorganization, merger or consolidation, the conditions described in
clauses (i), (ii) and (iii) of subsection (c) of this Section 2 are satisfied,
or (5) any acquisition by any Person (or by such Person's estate or heirs upon
such Person's death) who on the date of this Agreement is a director or officer
of the Company or is the beneficial owner of 20% or more of the outstanding
voting securities of the Company ("Affiliated Person"); or

                  (b)      Individuals who, as of the date hereof, constitute
the Board of Directors of the Company (the "Incumbent Board") cease for any
reason to constitute at least a majority of the Board of Directors of the
Company (the "Board"); provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as
such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

                  (c)      The Company enters into an agreement for a
reorganization, merger or consolidation, in each case, unless, following such
reorganization, merger or consolidation, (i) more than eighty percent (80%) of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger or consolidation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the outstanding
Company common stock and outstanding Company voting securities immediately prior
to such reorganization, merger or consolidation in substantially the same
proportions as their ownership, immediately prior to such reorganization, merger
or consolidation, of the outstanding Company stock and outstanding Company
voting securities, as the case may be, (ii) no Person (excluding the Company,
any employee benefit plan or related trust of the Company or such corporation
resulting from such reorganization, merger or consolidation and any Person
beneficially owning, immediately prior to such reorganization, merger or
consolidation, directly or indirectly, 20% or more of the outstanding Company
common stock or outstanding voting securities, as the case may be) beneficially
owns, directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such reorganization,
merger or consolidation or the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election
of directors and (iii) at least a majority of the members of the board of
directors of the corporation resulting from such reorganization, merger or

                                       2
<PAGE>   3
consolidation were members of the Incumbent Board at the time of the execution
of the initial agreement providing for such reorganization, merger or
consolidation; or

                  (d)      Approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company or the Company enters into an
agreement for the sale or other disposition of all or substantially all of the
assets of the Company, other than to a corporation with respect to which
following such sale or other disposition (i) more than 80% of, respectively, the
then outstanding shares of common stock of such corporation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the outstanding
Company common stock and outstanding Company voting securities immediately prior
to such sale or other disposition in substantially the same proportion as their
ownership, immediately prior to such sale or other disposition, of the
outstanding Company common stock and outstanding Company voting securities, as
the case may be, (ii) no Person (excluding the Company and any employee benefit
plan or related trust of the Company or such corporation, any Affiliated Person
and any Person beneficially owning, immediately prior to such sale or other
disposition, directly or indirectly, 20% or more of the outstanding Company
common stock or outstanding Company voting securities, as the case may be)
beneficially owns, directly or indirectly, 20% or more of, respectively, the
then outstanding shares of common stock of such corporation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors and (iii) at least a
majority of the members of the board of directors of such corporation were
members of the Incumbent Board at the time of the execution of the initial
agreement or action of the Board providing for such sale or other disposition of
assets of the Company.

                  (e)      Notwithstanding the foregoing, none of the
transactions contemplated in subsections (a), (b), (c)or (d) shall constitute a
Change of Control if such transaction occurs in connection with or as the result
of a transaction subject to Rule 13e-3 promulgated under the Exchange Act as in
effect from time to time provided that executive officers of the Company are the
beneficial owners of 75% or more of the voting securities of the Company
outstanding following such transaction.

         3.       Employment. Subject to the terms and conditions provided
herein, the Company hereby agrees, during the Employment Period, to employ the
Executive as its Chairman of the Board, President and Chief Executive Officer.
The Executive hereby agrees to accept such employment and offices during the
Employment Period.

                                       3
<PAGE>   4
         4.       Terms of Employment.

                  (a)      Position and Location.

                           (i)      Before Change of Control. During the
Employment Period and prior to the Change of Control Date, the Executive, in his
capacity as Chairman of the Board, President and Chief Executive Officer of the
Company, shall have the duties, authority and responsibility normally associated
with and typically afforded to the position of Chairman of the Board, President
and Chief Executive Officer of a publicly-owned and traded corporation. The
Executive's duties shall only be performed at Mishawaka, Indiana, except for
travel reasonably required in the performance of the Executive's duties.

                           (ii)     After Change of Control. During the
Employment Period and on and after the Change of Control Date, (A) the
Executive's position (including, without limitation, the Executive's status,
offices, titles and reporting relationships), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held or exercised by, and/or assigned to, the
Executive at any time during the ninety (90) day period immediately preceding
the Change of Control Date, and (B) the Executive's duties shall be performed at
the location where such services were performed immediately preceding the Change
of Control Date.

                           (iii)    Responsibilities. Subject to the immediately
succeeding sentence, during the Employment Period, excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive agrees
to devote his full business time during normal business hours to the business
and affairs of the Company and, to the extent necessary to discharge the
responsibilities assigned to the Executive hereunder, to use the Executive's
reasonable best efforts to perform faithfully and efficiently the duties and
responsibilities set forth in this Section 4(a). During the Employment Period it
shall not be a violation of this Agreement for the Executive to (A) serve on
community, corporate, civic or charitable boards or committees, (B) deliver
lectures, fulfill speaking engagements or teach at educational institutions, (C)
manage personal affairs and/or investments, so long as such activities do not
significantly interfere with the performance of the Executive's duties and
responsibilities under this Agreement. Notwithstanding the above, the Executive
shall not be required to perform any duties and/or responsibilities which, in
the Executive's reasonable judgment, would be likely to result in a
non-compliance with or violation of any applicable law, regulation or rule of
professional conduct.

                           (iv)     Reporting. The Executive shall report solely
and directly to the Board.

                                       4
<PAGE>   5
                  (b)      Compensation.

                           (i)      Base Salary. During the Employment Period,
the Executive shall receive a base salary of no less than Three Hundred Seventy
Thousand Dollars $370,000.00 per annum (the "Base Salary"), payable in
accordance with normal payroll practices. During the Employment Period, the Base
Salary shall be reviewed at least once annually for an increase (of no less than
5%) and shall be increased (but not decreased) at any time and from time to time
as shall be substantially consistent with increases in base salary awarded in
the ordinary course of business to other officers of the Company. Any increase
in the Base Salary shall not serve to limit or reduce any other obligation to
the Executive under this Agreement and any such increased Base Salary shall then
constitute the "Base Salary" for purposes of this Agreement.

                           (ii)     Annual Bonus, Incentive, Savings and
Retirement Plans. For each fiscal year of the Company ending during the
Employment Period, the Executive shall also be eligible for an annual bonus of
up to 50% of the Base Salary, payable no later than 75 days after the end of
each fiscal year of the Company. During the Employment Period, the Executive
shall also be entitled to participate in all bonus, short-or long-term
incentive, savings and retirement plans, practices, policies and programs
maintained or provided by the Company from time to time on or after the
Effective Date for the benefit of senior executives of the Company.

                           (iii)    Welfare Benefit Plans. During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be entitled to participate in and shall receive all benefits under any and all
welfare benefit plans, practices, policies and programs maintained or provided
by the Company (including, without limitation, medical, hospitalization,
prescription, dental, retiree health, disability, salary continuance, employee,
life, group life, accidental death/dismemberment and travel accident insurance
plans and programs) from time to time on or after the Effective Date for the
benefit of senior executives of the Company.

                           (iv)     Fringe Benefits. During the Employment
Period, the Executive shall be entitled to perquisites and/or fringe benefits in
effect as of the Effective Date and, to the extent more favorable to the
Executive, such perquisites and/or fringe benefits in accordance with the plans,
practices, policies and programs maintained or provided by the Company from time
to time on or after the Effective Date for the benefit of senior executives of
the Company.

                           (v)      Vacation. During the Employment Period, the
Executive shall be paid vacation in accordance with plans, practices, policies
and programs maintained or provided by the Company from time to time on or after
the Effective Date for the benefit of senior executives of the Company.

                           (vi)     Additional Cash Bonus. The Company shall pay
the Executive the following amounts on the following dates: on the Effective
Date, $150,000; on January 31, 2001, $150,000; and on January 31, 2002,
$150,000.

                                       5
<PAGE>   6
         5.       Termination.

                  (a)      Death or Disability. The Employment Period shall
terminate automatically upon the Executive's death. If during the Employment
Period, the Disability (as defined below) of the Executive has occurred, the
Company may give the Executive written notice (in accordance with Section 13(b)
of this Agreement) of its intention to terminate the Executive's employment with
the Company due to such Disability. The Executive's employment with the Company
as the case may be, shall be terminated by the Company on the 90th day (the
"Disability Effective Date"), after receipt by the Executive of such notice if,
within the ninety (90) day period commencing on the date such notice is
received, the Executive shall not have returned to the full-time performance of
the Executive's duties. For purposes of this Agreement, "Disability" means
physical or mental disability which, at least six months after its commencement,
is determined to be total and permanent by a physician mutually selected by the
Company and the Executive (or the Executive's legal representative).

                  (b)      Cause. During the Employment Period, the Company may
terminate the Executive's employment with the Company hereunder for "Cause." For
purposes of this Agreement, "Cause" means (i) an act or acts of personal
dishonesty taken by the Executive and intended to result in substantial personal
enrichment of the Executive at the expense of the Company, (ii) repeated
violations by the Executive of the Executive's obligations under Section 4(a) of
this Agreement which are demonstrably willful and deliberate on the Executive's
part and which are not remedied in a reasonable period of time after receipt of
written notice from the Company, or (iii) the conviction of the Executive of a
felony involving moral turpitude.

                  (c)      Good Reason. During the Employment Period, the
Executive's employment with the Company hereunder may be terminated by the
Executive for "Good Reason." For purposes of this Agreement, "Good Reason"
means:

                  (i)      the assignment to the Executive of any duties
         inconsistent in any respect with the Executive's position (including,
         without limitation, the Executive's status, offices, titles and
         reporting relationships), authority, duties or responsibilities as
         contemplated by Section 4(a) of this Agreement, or any other action by
         the Company, which, in his reasonable judgment, results in a diminution
         in such position, authority, duties or responsibilities, excluding for
         this purpose an isolated, insubstantial and inadvertent action not
         taken in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive; or

                  (ii)     (A) failure by the Company to comply with any of the
         provisions of Section 4(b) of this Agreement, other than an isolated,
         insubstantial and inadvertent failure not occurring in bad faith and
         which is remedied by the Company promptly after receipt of notice
         thereof given by the Executive, or (B) after the Change of Control
         Date, any failure to pay the Base Salary in accordance with Section
         4(b)(i), or any failure to maintain or provide for the benefit of the
         Executive the plans, practices, policies and programs and the benefits
         provided thereunder, described in Sections 4(b),(ii) through (v) on the
         most favorable basis such plans, practices, policies and programs were
         maintained, and such benefits provided, during the ninety (90) day
         period immediately preceding the Change of Control Date, or, if more
         favorable to the Executive and/or the Executive's family, as in effect
         at any time thereafter; or

                                       6
<PAGE>   7
                  (iii)    the Company requiring the Executive to be based at
         any office or location other than that set forth in Section 4(a)
         hereof, except for travel reasonably required in the performance of the
         Executive's duties; or

                  (iv)     any purported termination by the Company of the
         Executive's employment otherwise than as expressly permitted by this
         Agreement or expressly consented to in writing by the Executive; or

                  (v)      any failure by the Company to comply with and satisfy
         Section 5(c) of this Agreement.

                  For purposes of this Section 5(c), any good faith
determination of "Good Reason" made by the Executive on or after the Change of
Control Date shall be conclusive, final and binding on all persons. Anything in
this Agreement to the contrary notwithstanding, a termination by the Executive
for any reason during the one (1) year period immediately following the Change
of Control Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                  (d)      Voluntary Termination. During the Employment Period,
the Company may terminate, upon thirty (30) days advance written notice given to
the Executive, the Executive's employment with the Company hereunder other than
for Cause and the Executive may voluntarily terminate, upon thirty (30) days
advance written notice given to the Company, the Executive's employment with the
Company hereunder without Good Reason.

                  (e)      Notice of Termination. Any termination by the Company
for cause or by the Executive for Good Reason shall be communicated by a notice
of termination as defined below, given in accordance with Section 13(b) of this
Agreement and which specifies (i) the termination provision in this Agreement
relied upon, (ii) the facts and circumstances (in reasonable detail) claimed to
provide a basis for termination of the Executive's employment under the
provision so indicated, and (iii) the Date of Termination (as defined below).
The failure by the Executive to set forth in such notice of termination any fact
or circumstance which contributes to a showing of Good Reason shall not waive
any right of the Executive hereunder or preclude the Executive from asserting
such fact or circumstance in enforcing his rights hereunder.

                                       7
<PAGE>   8
         6.       Obligations of the Company upon Termination.

                  (a)      Death. If the Executive's employment is terminated by
reason of the Executive's death, the Executive, or the Executive's legal
representatives, as the case may be, shall be entitled to receive (i) the
Executive's Base Salary through the date of death at the rate in effect (as
provided for in Section 4(b) of this Agreement) on the date of death, (ii) any
compensation previously deferred by the Executive (together with any accrued
interest thereon) and not yet paid by the Company, (iii) any accrued vacation
pay not yet paid by the Company, and (iv) a lump sum payment equal to one year
of the Executive's then Base Salary and the full amount of the bonus the
Executive then was eligible to receive assuming for purposes hereof that the
Executive would have received 100% of the Executive's bonus potential (such
amounts specified in clauses (i), (ii) and (iii), are hereinafter referred to as
the "Accrued Obligations"). All such Accrued Obligations shall be paid to the
Executive's estate or beneficiary, as applicable, in a lump sum in cash within
thirty (30) days after the date of death. In addition, the Executive's family
shall be entitled to receive the most favorable family death and other benefits
provided by the Company to surviving families of senior executives of the
Company under the plans, practices, policies and programs, if any, maintained or
provided by the Company (or the economic equivalent thereof).

                  (b)      Disability. If the Executive's employment with the
Company and/or the Parent hereunder is terminated due to the Executive's
Disability, the Employment Period shall terminate on the date of termination and
the Executive shall be entitled to receive all Accrued Obligations. All such
Accrued Obligations shall be paid to the Executive in a lump sum in cash within
thirty (30) days after the Date of Termination. In addition, the Executive shall
be entitled to receive (A) after the Disability Effective Date the most
favorable disability benefits provided by the Company to disabled senior
executives of the Company under the plans, practices, policies and programs, if
any, maintained or provided by the Company (or the economic equivalent thereof)
and a lump sum payment equal to one year of the Executive's then Base Salary and
the full amount of the bonus the Executive then was eligible to receive assuming
for purposes hereof that the Executive would have received 100% of the
Executive's bonus potential.

                  (c)      Cause; Without Good Reason. If the Executive's
employment with the Company shall be terminated for Cause by the Company or by
the Executive without Good Reason, the Employment Period shall terminate on the
date of termination and the Executive shall be entitled to receive all Accrued
Obligations. All such Accrued Obligations shall be paid to the Executive in a
lump sum in cash within thirty (30) days after the date of termination.

                  (d)      Good Reason; Other than for Cause, Death or
Disability. If, during the Employment Period, the Company hereunder shall
terminate the Executive's employment with the Company hereunder (other than for
Cause, Death or Disability), or the Executive shall terminate his employment
with the Company hereunder for Good Reason (i) the Executive shall receive the
Accrued Obligations, payable in a lump sum in cash within thirty (30) days after
the date of termination, (ii) a lump sum payment equal to 2.99 times the sum of
(A) the Executive's Base Salary on the date of termination, plus (B) the full
amount of the bonus the Executive was eligible to receive in the current fiscal
year assuming for purposes hereof that the Executive would have received 100% of
the Executive's bonus potential payable at the same time payment of the Accrued
Obligations is made, (iii) additional and accelerated vesting and exercisability
as to the portion of any outstanding option scheduled to vest on the next
following vesting date for any such option (as if the Executive remained
employed through such next date), and (iv) for one (1) year, after the

                                       8
<PAGE>   9
date, or such longer period as any plan, practice, policy or program may
provide, the Company shall continue the benefits described in Section 4(b)(iii)
to the Executive and/or the Executive's family, including, without limitation,
health insurance and life insurance, in amounts and on a basis at least equal to
those provided to senior executives (and their families) of the Company or the
economic equivalent thereof.

         7.       Non-exclusivity of Rights. Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other plans, practices, policies or programs,
provided by the Company nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any stock option, stock appreciation,
short or long term incentive plans, restricted stock or other plans,
arrangements, or agreements with or maintained by the Company and any
compensation or benefits which are vested in the Executive or which the
Executive is otherwise entitled to receive under any plan, practice, policy or
program of the Company at or subsequent to the date of termination shall be
payable in accordance with the terms and provisions of such plan, practice,
policy or program.

         8.       Full Settlement. The Company's obligations to make the
payments provided for in this Agreement and otherwise to perform their
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement.
The Company agrees to pay all the legal fees and expenses incurred by the
Company, the Executive and others as a result of the negotiation and/or drafting
of this Agreement or any contest or dispute (regardless of the outcome thereof)
arising out of this Agreement including, without limitation, any contest
regarding the amount of any payment pursuant to this Agreement.

         9.       Certain Additional Payments by the Company.

                  (a)      Additional Payments. Anything in this Agreement to
the contrary notwithstanding, if it shall be determined that any payment or
distribution by the Company to or for the benefit of the Executive, whether paid
or payable or distributed or distributable, pursuant to the terms of this
Agreement or otherwise (a "Payment"), would be subject to the excise tax imposed
by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code")
(or any similar tax) and/or any interest or penalties with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise Tax"), then the Executive
shall be entitled to receive an additional payment from the Company (a "Gross-Up
Payment") in an amount such that, after payment by the Executive of all taxes
(including, without limitation, any interest or penalties imposed with respect
to such taxes), including, without limitation, any Excise Tax, imposed upon or
attributable to the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

                  (b)      Related Determinations. All determinations required
to be made under this Section 9, including whether and when the Gross-Up Payment
is required and the amount of such Gross-Up Payment including any determination
of the parachute payments under Code Section 280G(b)(2), and the assumptions to
be utilized in arriving at such determinations shall be made by a nationally
recognized certified public accounting firm that is mutually selected by the
Executive and the Company (the "Accounting Firm") which shall provide detailed
supporting calculations

                                       9
<PAGE>   10
both to the Company and the Executive within fifteen business days of the
receipt of notice from the Executive that there has been a Payment, or such
earlier time as is requested by the Company. All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment shall
be paid by the Company to the Executive within five days of the receipt of the
Accounting Firm's determination. Any determination by the Accounting Firm shall
be binding upon the Company and the Executive. As a result of uncertainty in the
application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that the Gross-Up Payment made
will have been an amount less than the Company should have paid pursuant to this
Section 9 (the "Underpayment"). In the event that the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive. The
obligations of the parties under this Section 9 shall indefinitely survive the
termination of the Executive's employment with the Company and the termination
of this Agreement.

         10.      (a).     Restrictive Covenants. In consideration of the
Employee's continued employment and the mutual promises contained herein,
Employee agrees and promises that Employee will not, directly or indirectly, for
Employee or any other person, firm, corporation, entity or business:

                  (i)      Compete with Company. During the term of his
         employment by the Company and for a period of one year after
         termination of employment with the Company for any reason own, manage,
         operate, control or otherwise be in any manner affiliated or connected
         with, or engage or participate in the ownership, management, operation
         or control of (as principal, agent, proprietor, partner, member,
         shareholder, director, trustee, officer, administrator, employee,
         consultant, independent contractor, or otherwise), any business or
         entity that owns or operates any full service or quick service
         restaurants within 15 miles of any restaurant owned by the Company on
         the last day of Employee's employment.

                  (ii)     Employees. For a period of one year after termination
         of employment by the Company, Employee shall not, directly or
         indirectly, (i) induce or influence or attempt to induce or influence,
         any person who is engaged as an employee, agent, independent contractor
         or otherwise by the Company to terminate his or her employment or
         engagement with the Company, nor (ii) aid, assist or abet any other
         person, firm, or corporation in any of the prohibited matters
         identified in clause (i) of this Section 10(a).

                  (b).     Severability. The parties hereto intend that the
covenants contained in Section 10(a)(i) shall be construed as a series of
separate covenants, one for each restaurant operated by the Company. Except for
geographic coverage, each such separate covenant shall be deemed identical in
terms to the covenants contained in Section 10(a)(i). If, in any judicial
proceeding, a court shall refuse to enforce any of the separate covenants deemed
included in this section, then this unenforceable covenant shall be deemed
eliminated from these provisions for the purpose of those proceedings to the
extent necessary to permit the remaining separate covenants to be enforced.

                  (c).     Proprietary and Confidential Information. The parties
hereto acknowledge and agree that proprietary and confidential information means
information or material which is not

                                       10
<PAGE>   11
generally available to or used by others outside the Company or the utility or
value of which is not generally known or recognized as standard practice,
whether or not the underlying details are in the public domain. Information and
material which is considered proprietary and confidential by the Company
includes, but is not limited to, the following:

                  (i)      Information and material which relates to the
         Company's purchasing, accounting, operating or marketing methods;

                  (ii)     Information and material related to business plans
         and methods of operations or methods of doing business or relating to
         marketing or expansion plans developed or to be developed by the
         Company;

                  (iii)    Information and material related to the Company's
         method and manner of compensating its employees;

                  (iv)     Any of the information of the type described above
         which the Company obtained from another source and which the Company
         treats as proprietary or designates as confidential, whether or not
         owned or developed by the Company.

                  (d).     Use of Information. Employee acknowledges and agrees
that he is in a fiduciary relationship with the Company and as a consequence of
this fiduciary relationship and the trust and confidence reposed in the Employee
by the Company, Employee will receive proprietary and confidential information
and/or trade secrets of the Company, as previously defined in this Agreement. In
partial consideration for the mutual promises contained herein, the Employee
agrees not to directly or indirectly divulge, publish, communicate, use to the
detriment of the Company, use for the benefit of any person, firm, corporation,
or business or misuse in any way any such proprietary and confidential
information and/or trade secrets either during or subsequent to employment with
the Company, whether or not conceived, originated, discovered or developed in
whole or in part by Employee.

                  (e).     Availability of Injunctive Relief. The parties
acknowledge that compliance with the covenants in Sections 10(a)(c) and (d) is
necessary to protect the business, goodwill and proprietary interests of the
Company. The parties further agree that the remedy at law for breach of any of
the provisions of such covenants is inadequate and that the Company shall be
entitled, in addition to other such remedies as it may have, to injunctive
relief for any breach or threatened breach of Sections 10(a)(c) and (d) without
proof of any actual damages that may have been or may be caused to the Company
by such breach or threatened breach.

                  (f)      Exclusion. Notwithstanding the foregoing, nothing
contained in this Section 10 is intended nor shall it be construed to prevent,
limit or impair Executive's ability to engage in any business, enterprise or
investment in which Executive is engaged as of the Effective Date or in which
Executive first engages during the term of this Agreement with the express
approval of the Board.

         11.      Successors. (a) This Agreement is personal to the Executive.
Without the prior written consent of the Company it shall not be assignable by
the Executive otherwise than by will or the laws of descent and distribution.
This Agreement shall inure to the benefit of and be enforceable by the
Executive's legal representatives.

                                       11
<PAGE>   12
                  (b)      This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                  (c)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place.

         12.      Miscellaneous. (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of Indiana, without reference
to principles of conflict of laws thereunder. The captions of this Agreement are
not part of the provisions hereof and shall not have any force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                  (b)      All notices and other communications hereunder shall
be in writing and shall be given by facsimile transmission, hand delivery to the
other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

                  If to the Executive:

                           Daniel B. Fitzpatrick
                           4220 Edison Lakes Parkway
                           Mishawaka, Indiana  46545

                  If to the Company:

                           John C. Firth
                           Executive Vice President and General Counsel
                           Quality Dining, Inc.
                           4220 Edison Lakes Parkway
                           Mishawaka, Indiana  46545

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

                  (c)      The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                  (d)      The Company may withhold from any amounts payable
under this Agreement such federal, state or local taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

                  (e)      The Executive's failure to insist upon strict
compliance with any provision hereof shall not be deemed to be a waiver of such
provision or any other provision thereof.

                                       12
<PAGE>   13
                  (f)      This Agreement contains the entire understanding of
the Company and the Executive with respect to the subject matter hereof.

         IN WITNESS WHEREOF, the Executive and the Company have each caused this
Agreement to be executed in their name and on their behalf on the date first
above written.

                                         QUALITY DINING, INC.

                                         /s/ John C. Firth
                                         ---------------------------------------
                                         By:  John C. Firth
                                         Its: Executive Vice President and
                                              General Counsel

                                         EXECUTIVE

                                         /s/ Daniel B. Fitzpatrick
                                         ---------------------------------------
                                         Daniel B. Fitzpatrick

                                       13

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