Document:

"DAIRY QUEEN" OPERATING AGREEMENT

This  Agreement  entered  into  this  10th day of March,  1983,  by and  between
Interstate Dairy Queen Corporation of the city of Atlanta, county of Fulton, and
state of Georgia,  herinafter  referred to as "Licensor" and Bowlin's Inc. d/b/a
DQ/B of  Edgewood,  NM of the city of Edgewood  county of Santa Fe, State of New
Mexico herein after referred to as "Licensee":

     WHEREAS,  Licensor  is the  exclusive  licensee of  American  Dairy.  Queen
Corporation in certain  geographical  areas including the territory  hereinafter
defined of the right to use,  license and permit others to use the "Dairy Queen"
trademark,  service mark and trade name which has been  registered in the United
States  Patent  Office,  in each state of the union and in foreign  countries as
well as those trademarks and service marks (hereinafter collectively referred to
as  "Trademarks"),  a list of which is attached hereto and made a part hereof as
Appendix A; and

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

     WHEREAS,  it is the  purpose of Licensor to provide to Licensee in a retail
store  outlet an  organization  to control  and make  uniform the  operation  of
facilities  and  equipment  together  with the quality of products,  the use and
protection  of  the  trademarks  and-to  make  available  uniform  and  approved
equipment, supplies, ingredients,  merchandising and business techniques and the
advertising and promotional programs of American Dairy Queen Corporation, and

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

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

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

                                GRANT OF LICENSE

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

Mailing Address:                     1.1  Establish  and  operate a retail store
DQ of Edgewood                       under the name "Dairy Queen" at  Interstate
c/o Bowlin's, Inc.                   40 x State  Route 344 Edgewood , New Mexico
136 Louisiana, N. E.                 87015   hereinafter   referred  to  as  the
Albuquerque, NM  87108               "Authorized  Location" (provided,  however,

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                                     in the event an Authorized  Location is not
                                     designated  on the  date  hereof,  and such
                                     location  is  not   designated   herein  by
                                     Licensor within ninety (90) days after such
                                     date,  this Agreement shall become null and
                                     void  and  all  deposit  is  including  the
                                     franchise   fee   shall  be   returned   to
                                     Licensee).

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

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

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

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

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

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

                                     2.2 The  trademarks  are valuable  property
                                     rights owned by American.

                                     2.3 The  trademarks  shall be used  only in
                                     connection  with such products and services

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                                     as may be approved or specified by American
                                     and  shall at all  times be used  only in a
                                     manner approved by American.

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

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

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

                                     Trademarks from the name within thirty (30)
                                     days after termination of this Agreement.

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

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

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

                      TRADEMARK STANDARDS AND REQUIREMENTS

General Declarations          4.  Licensee agrees that nothing in this agreement
                              gives him the right to use the  Trademarks  except
                              the  right to use the same  under  the  terms  and
                              conditions of this  Agreement and that  Licensee's

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                              use there of injures to the  benefit of  American.
                              Specifically,  but without limiting the foregoing,
                              Licensee acknowledges and agrees that American has
                              the right and may  distribute  for its own account
                              products  identified by the Trademarks through not
                              only "Dairy  Queen"  retail stores but through any
                              other  distribution  method which may from time to
                              time be established.

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

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

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

Equipment and Supplies               4.3 Licensee agrees to purchase and use, in
                                     the operation of  Licensee's  "Dairy Queen"
                                     retail  store,  only  equipment,  supplies,
                                     ingredients and services which are approved
                                     by American or by Licensor.  Nothing herein
                                     shall be constructed as an attempt to limit
                                     unreasonably   the   sources   from   which
                                     Licensee may procure  equipment,  supplies,
                                     ingredients or services.  Rather, it is the
                                     intention  of the  parties  that such items
                                     conform   to   American's   standards   and
                                     specifications  of  consistent  quality and
                                     uniformity.  Nothing contained herein shall
                                     be deemed to require Licensor to approve an
                                     inordinate  number of  suppliers of a given
                                     item or  service  w3hich in the  reasonable
                                     judgment  of  American  or  licensor  would
                                     result in  licensees  or prevent  effective
                                     and economical  supervision of suppliers by

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                                     approval of additional  suppliers  shall be
                                     in   writing   and   shall   contain   such
                                     information  as American  and  Licensor may
                                     reasonably  request.  American and Licensor
                                     reserve   the  right  to  charge   back  to
                                     Licensee  or  the  proposed   supplier  all
                                     reasonable expenses incurred in considering
                                     requests for approval.

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

                                     American  reserve the right and  privilege,
                                     at   Licensor's   and    American's    sole
                                     discretion  and as Licensor's  and American
                                     may  deem  in  the  best  interests  of all
                                     concerned in any specific instance, to vary
                                     Standards to  accommodate  special needs of
                                     Licensee's  Authorized  Site or that of any
                                     other  like based on the  peculiar  site or
                                     location,  density of population,  business
                                     potential,   population   of  trade   area,
                                     existing business  practices,  requirements
                                     of local law, or any other  condition which
                                     Licensor  deems to be of  importance to the
                                     successful operation of a like business.

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

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

                       FACILITY STANDARDS AND MAINTENANCE

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

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

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Future                               Alteration     5.2     Any     replacement,
                                     reconstruction, addition or modification in
                                     building,  equipment or signage, to be made
                                     hereafter, whether at the request of

                                     Licensee or of  Licensor,  shall be made in
                                     accordance   with  written   specifications
                                     approved by Licensor or American.  Licensor
                                     and   American   shall   not   unreasonably
                                     withhold such approval.

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

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

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

                                     or obsolescence  in the business  conducted
                                     hereunder.

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               PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS

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

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

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

Authorized, Ingredients,             6.1   Licensee   shall   use  in  preparing
Formulas, Supplies,                  products  only  such ingredients, formulas,
Preparation; Subject to              and  supplies  as are specified by American
Change by American                   and in such portions,  sizes and appearance
                                     and  packaging  as set forth in  American's
                                     most  current  "Store  American  Management
                                     Operations     Manual"    and     "products
                                     preparation charts".  Copies of the current
                                     "Store  management  Operations  Manual" and
                                     "products  preparation  charts"  have  been
                                     supplied    to    Licensee    by   Licensor
                                     temporaneously   with   execution  of  this
                                     Operating Agreement.  Licensee acknowledges
                                     and agrees  that these may be changed  from
                                     time to time by American and that  Licensee
                                     is obligated to conform to the requirements
                                     as so changed from time to time.  All other
                                     supplies,     including    cones,     cups,
                                     containers,  eating utensils,  napkins, and
                                     all other customer service materials of all
                                     description  and  types,   shall  meet  the
                                     standards of uniformity and quality as

                                     now   or   hereafter   reasonably   set  by
                                     American.  Licensee shall be furnished with
                                     lists  of  approved  equipment,   supplies,
                                     ingredients and services.

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

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

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

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

                                     therewith.

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

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                       PERSONNEL AND SUPERVISION STANDARDS

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

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

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

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

                                     be an employee of Licensor or American  for
                                     any purpose(s)whatsoever.

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

Attendance at Meetings               7.5  Licensee,  or manager of Licensee,  at
                                     Licensee's  expense,  shall attend at least
                                     one  national,  regional or approved  local

                                        9
<PAGE>
                                     marketing  area  meeting  each  year  which
                                     Licensor and/or American originates for and
                                     on behalf of "Dairy Queen" operators to set
                                     forth new  methods  and  programs  in store
                                     operation,  training, management, sales and
                                     sale promotion  programs.  Licensor further
                                     strongly  recommends  that key employees of
                                     Licensee also attend such meetings.

                            SALES PROMOTION PROGRAMS

Sales Promotion Programs             8.1 Licensor  and  Licensee, together  with
and Payment to American              other   licensees    of   American,   shall
of Expenses for                      cooperate in the sales  promotion  programs
Administering Same                   of   approved   products.    To  this  end,
                                     American   has   reserved   the   right  to
                                     establish  and  organize  sales   promotion
                                     programs  from  time to time  and  Licensee
                                     agrees to pay to Licensor for remittance to
                                     American a sales  promotion  program fee as
                                     set forth in Paragraph 9.1 hereof. Licensee
                                     acknowledges  and agrees that  American has
                                     had in the past,  and  shall in the  future
                                     have,    the    discretion   to   determine
                                     expenditures  of funds collected in respect
                                     to sales  promotion  programs and as to the
                                     selection of the promotional  materials and
                                     programs  for which said  expenditures  are
                                     made,  provided,   however,  that  American
                                     shall  make a good  faith  effort to expend
                                     such funds in the general best  interest of
                                     participating      licensees.      Licensee
                                     acknowledges  and agrees that  American may
                                     compensate itself and/or its affiliates for
                                     the  expense  of  administering  such sales
                                     promotion  programs.  Licensor shall advise
                                     Licensee annually of American's expenses in
                                     administering    said    sales    promotion
                                     programs.

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

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

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

                    FEES, REPORTING AND FINANCIAL MANAGEMENT

Service, Set-up,                     9.1  Licensee  shall  pay  to Licensor as a
Franchise, License and               service  and  set-up fee $-0- of which $-0-
Sales Promotion                      has  been  paid  upon the execution of this
Program Fees                         Agreement and a balance of $ -O- is payable

                                       10
<PAGE>
                                     in accordance  with the terms of Appendix C
                                     attached  hereto.  Said  service and set-up
                                     fee is intended to compensate  Licensor for
                                     its   expenses   incurred,   and   services
                                     rendered  in  establishing  and  setting up
                                     Licensee's initial  operation.  In addition
                                     to said service and set-up fee,  during the
                                     full term of this Operating Agreement,  and
                                     in  consideration  of  the  rights  granted
                                     hereunder,  Licensee  shall pay to Licensor
                                     as  license  fee in  respect  to the rights
                                     granted  herein a sum  equal to 4% of gross
                                     retail  sales,  exclusive  of retail  sales
                                     taxes, of all products,  goods and wares of
                                     every  kind and  nature  sold  from,  or in
                                     connection    with   the    operation   of,
                                     Licensee's   "Dairy  Queen"  retail  store,
                                     including,   but   without   limiting   the
                                     generality of the  foregoing,  sales of all
                                     products of any of the  Trademarks  as well
                                     as sales of other  merchandise  whether  or
                                     not  identified  by other  brand  names and
                                     which  may  be   authorized   for  sale  by
                                     American  or  Licensor  from  time to time;
                                     provided,  notwithstanding  the  foregoing,
                                     that no such  continuing  license fee shall
                                     be  payable   with   respect  to  sales  of
                                     Permitted Products.  In addition,  mittance
                                     to  American  a sales  promotion  fee to be
                                     expended in accordance  with the provisions
                                     of Paragraph  8.1. The sales  promotion fee
                                     shall be a sum  equal  to not less  than 3%
                                     nor more than 5% of Licensee's gross retail
                                     sales net of sales taxes  (excluding  sales
                                     of  Permitted  Products).   Licensor  shall
                                     determine and notify  Licensee of the exact
                                     percentage  prior to the  first day of each
                                     fiscal   year  of   Licensor   (except   no
                                     notification  will be given with respect to
                                     any year for which the  percentage is to be
                                     unchanged  from the preceding  year).  Such
                                     percentage  shall be the same as that to be
                                     employed during such succeeding year by the
                                     majority of "Dairy Queen"  licensees within
                                     the   marketing   area  as   determined  by
                                     American within which  Licensee's  store is
                                     located.

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

Surcharge                            9.3  At  Licensor's  option,  Licensor  may
Method  of                           require  Licensee  to  pay  to suppliers of
Precollection                        mix,   meat   and    other   products   and

                                       11
<PAGE>
                                     ingredients  used  in  the  conduct  of the
                                     business a  surcharge  on all units of such
                                     commodities  purchased  by  Licensee.  Said
                                     surcharge shall be paid to such supplier by
                                     Licensee  at the time of  purchase  of such
                                     commodities.   Said   surcharge   shall  be
                                     established  by  Licensor  at a  reasonable
                                     rate so as to  approximate  the  amount  of
                                     license fee and sales  promotion  fee which
                                     will be payable by Licensee. Said surcharge
                                     shall be paid to said supplier or suppliers
                                     for the account of Licensor, the same to be
                                     regarded  by the  parties  as a  method  of
                                     precollection  of said  license  and  sales
                                     promotion  fees.  The amounts so  collected
                                     shall be credited  by Licensor  against the
                                     license and sales  promotion  fees due from
                                     Licensee  to  Licensor  at the  end of each
                                     month's  operations.  Licensor shall submit
                                     to Licensee on a monthly or quarterly basis
                                     a reconciliation  of said license and sales
                                     promotion  fees account  setting  forth the
                                     credits to Licensee's  account by reason of
                                     amounts collected for Licensor by suppliers
                                     by way of the aforesaid  surcharge  method.
                                     In the event  Licensee shall fail to submit
                                     reports in accordance  with  Paragraph 9.4,
                                     Licensor  may make said  reconciliation  of
                                     amounts  due in  conformance  with its best
                                     judgment  with  regard to said  amounts due
                                     and  same  shall  be  conclusive  as to the
                                     amounts due Licensor from  Licensee  unless
                                     within a  period  of ten  (10)  days  after
                                     mailing of said  reconciliation to Licensee
                                     by Licensor,  Licensee provides evidence in
                                     a  form  satisfactory  to  Licensor  of the
                                     correct  amounts  due.  Licensee  shall pay
                                     such amounts, if any, determined to be owed
                                     pursuant   to   Licensor's   reconciliation
                                     within  ten (10) days  after a  mailing  of
                                     notice to Licensee by Licensor. If Licensor
                                     determines   that   Licensee  has  overpaid
                                     license  or  sales  promotion  fees  on the
                                     surcharge  basis,  Licensor  shall remit to
                                     Licensee an amount equal to the excess fees
                                     collected   at  the  time  the  monthly  or
                                     quarterly    reconciliation   is   provided
                                     Licensee.

Reports and Records                  9.4  Licensee  shall keep true records from
                                     which all sums payable under this Agreement
                                     and the  dates of  accrual  thereof  may be
                                     readily  determined.  Licensee  shall  make
                                     written reports to Licensor in such form as
                                     Licensor  may from  time to time  prescribe
                                     within  fourteen (14) days after the end of
                                     each month's  operation  setting  forth the
                                     amount of gross sales of all products from,
                                     or in  connection  with the  operation  of,
                                     said store and the business  thereof during
                                     said month.  In addition to the  foregoing,
                                     and in addition  to such other  information
                                     as Licensor may from time to time  require,
                                     said monthly  report shall  accurately  set
                                     forth the total  number of  gallons of mix,
                                     the total number of pounds of meat, and the

                                       12
<PAGE>
                                     quantity  of other basic  commodities  used
                                     during  said  month  and the  sources  from
                                     which said mix, meat and other  commodities
                                     were  purchased  together  with a  complete
                                     statement  of  Licensee's  cost  of  labor,
                                     utilities,  rent  and  each  other  cost of
                                     operation.  For the purpose of said reports
                                     the date of use of such mix, meat and other
                                     commodities  shall be deemed to be the date
                                     of receipt at the store. Licensor, American
                                     or the authorized  representative of either
                                     shall  have the right at all  times  during
                                     the  business   day  to  enter   Licensee's
                                     premises  where books and records  relative
                                     to said  store  are kept,  and to  inspect,
                                     copy and audit such books and  records.  In
                                     the event that any such inspection or audit
                                     reveals a variance  of 3% or more from data
                                     reported  to  Licensor  or   American,   in
                                     addition  to any other  rights it may have,
                                     Licensor  or  American   may  conduct  such
                                     further periodic audits and/or  inspections
                                     of  Licensee's  books  and  records  as  it
                                     reasonably  deems  necessary  for up to one
                                     year  thereafter  and such  further  audits
                                     and/or  inspections  shall be at Licensee's
                                     sole expense including  without  limitation
                                     reasonable  professional  fees,  travel and
                                     room and board  expenses  directly  related
                                     thereto.

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

Payment of Debts                     9.6 Licensee  agrees to pay promptly,  when
                                     due, all taxes and assessments  that may be
                                     assessed   against  said  premises  or  the
                                     equipment  or supplies  used in  connection
                                     with  Licensee's  business,  all  liens and
                                     encumbrances  of every  kind and  character
                                     created or placed  upon or  against  any of
                                     said  property  and all  accounts and other
                                     indebtedness  of  every  kind  incurred  by
                                     Licensee in the  conduct of said  business.
                                     In the event  Licensee  should  default  in
                                     making any such payment,  Licensor shall be
                                     authorized  but  not  required,  to pay the
                                     same on  Licensee's  behalf and  Licensee's
                                     covenants promptly to reimburse Licensor on

                                       13
<PAGE>
                                     demand for any such payment. to Licensor by
                                     the same  arise  this  Paragraph  vision of
                                     this  interest  at  12%  per  Any  and  all
                                     amounts owing Licensee  hereunder,  whether
                                     under  the  provisions  of 9.6 or under any
                                     other  Agreement,  shall bear interannum or
                                     the   maximum   rate   permitted   by  law,
                                     whichever is less,  from and after the date
                                     of accrual thereof.

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

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

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

                                       14
<PAGE>
Assignment and Transfer              9.10  Licensee   agrees  not  to  transfer,
                                     assign or alienate his  interest  herein or
                                     hereunder  in whole or in part  without the
                                     prior  written  consent of Licensor,  which
                                     consent shall not be withheld unreasonably,
                                     but  Licensor  may insist that any proposed
                                     assignment  be  an  assignment  of  all  of
                                     Licensee's  interest hereunder and that any
                                     proposed   assignee,   be  a   person,   in
                                     Licensor's  reasonable judgment,  qualified
                                     to  provide  active  supervision  over  the
                                     operation of said store in compliance  with
                                     Licensee's  obligations  hereunder  and who
                                     has  sufficient  net worth and  sources  of
                                     capital which meet  Licensor's then current
                                     requirements  for a store  operation of the
                                     type   contemplated   by   this   form   of
                                     agreement.  In the  event  Licensee's  said
                                     interest   should  be  so   transferred  or
                                     assigned,  Licensee  shall pay to  Licensor
                                     contemporaneously  therewith the sum of One
                                     Thousand Five Hundred Dollars ($1,500),  or
                                     an amount  equal to one-half of the license
                                     fees paid or payable by Licensee in respect
                                     of  operations  in the twelve  (12)  months
                                     ending with the month prior to the month in
                                     which the assignment is approved, whichever
                                     is the  greater  amount,  as a fee  for the
                                     preparation of a new Operating Agreement in
                                     assignee's name, for Licensor's  assistance
                                     in reset-up of the retail store and for any
                                     and  all  other   expenses   incurred   and
                                     services  rendered by Licensor in effecting
                                     said  transfer.  In the  event  of any such
                                     assignment, the assignee, as a condition of
                                     Licensor  approving such  assignment,  must
                                     attend and to the  reasonable  satisfaction
                                     of  Licensor   successfully   complete,  at
                                     assignee's  expense,   American's  training
                                     program at American's  training center.  In
                                     the  event   Licensee  is  a   corporation,
                                     partnership  or other entity,  any transfer
                                     or  transfers  of stock (or  other  form of
                                     ownership  interest)  constituting  in  the
                                     aggregate   a   controlling   interest   in
                                     Licensee  shall be subject to the  consent,
                                     transfer  fee  and  all  other   applicable
                                     provisions of this Agreement.  Licensor may
                                     withhold   its  consent  to  any   proposed
                                     transfer until all amounts owed by Licensee
                                     to Licensor,  American,  the  affiliates or
                                     subsidiaries  of either and approved "Dairy
                                     Queen" suppliers have been paid in full.

Offsets                              9.11  Licensee  waives any and all existing
                                     and future  claims and offsets  against any
                                     amounts due hereunder,  which amounts shall
                                     be paid when  due.  Licensor  and  American
                                     shall be  entitled  to apply or cause to be
                                     applied  against  amounts  due to either of
                                     them of any of their respective  affiliated
                                     companies  any amounts  which may from time
                                     to time be held by  either of them or their
                                     respective  affiliates on Licensee's behalf
                                     for be  owed to  Licensee  by  Licensor  or
                                     American or their respective affiliates.

                                       15
<PAGE>
                               CONTRACT VIOLATION

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

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

                                       16
<PAGE>
                                     10.2   Except  as   hereinafter   provided,
                                     failure  of  Licensee  to cure a default by
                                     Licensee  hereunder  within  fourteen  (14)
                                     days from the date of a  written  notice of
                                     default  mailed or  delivered  to Licensee,
                                     which  notice  states such  default,  shall
                                     give Licensor good cause to terminate  this
                                     Agreement.     Termination     shall     be
                                     accomplished  by mailing or  delivering  to
                                     Licensee  written  notice  of  termination,
                                     which   notice   shall  state  the  grounds
                                     therefore   and  shall  be  effective   (i)
                                     immediately   in  any  case  of   voluntary
                                     abandonment  of this  Agreement by Licensee
                                     of  conviction  of  Licensee  of an offense
                                     directly related to the business  conducted
                                     hereunder;  or (ii)  sixty  (60) days after
                                     the date of such notice of  termination  in
                                     all other cases;  provided,  however,  that
                                     notwithstanding any other provision of this
                                     Paragraph   10,  this   Agreement   may  be
                                     terminated   immediately  upon  failure  of
                                     Licensee  to cure within  twenty-four  (24)
                                     hours of notice  thereof any default  under
                                     this Agreement which materially impairs the
                                     good  will   associated  with  any  of  the
                                     Trademarks.  In addition to the  foregoing,
                                     this   Agreement   may  be   terminated  by
                                     Licensor  upon any  ground or by any period
                                     of notice as may be permitted  from time to
                                     time by applicable law or  regulation.  Any
                                     notice of default of  termination  shall be
                                     personally   delivered   or  be  mailed  by
                                     certified  or   registered   mail,   return
                                     receipt requested, postage prepaid.

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

                               TERMINATION RIGHTS

                              11.  Upon  the   termination   of  this  Operating
                              Agreement:

Reversion of Trademark Rights        11.1   All   rights   to  the  use  of  the
                                     Trademarks  and the  right and  license  to
                                     conduct  said  business  at the  Authorized
                                     Location   shall  revert  to  Licensor  and
                                     Licensee shall immediately cease all use of
                                     the  Trademarks  and pay all  monies due at
                                     said date.  Licensee  shall promptly and at
                                     his own expense  remove or  obliterate  all
                                     store  signage and  displays  furnished  to
                                     Licensee  by Licensor  and shall  remove or
                                     obliterate and thereafter  discontinue  all
                                     use  of  any  signage  or  displays  at the
                                     Authorized  Location  or in his  possession
                                     bearing any of the  Trademarks  or names or
                                     material  confusingly similar to any of the
                                     Trademarks.

                                       17
<PAGE>
                                     11.2  All  right,  title  and  interest  of
                                     Licensee in and to this Operating Agreement
                                     shall become the property of Licensor.

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

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

                               PERMITTED PRODUCTS

                              12. It is mutually  understood and agreed that the
                              store   facilities   and  operations  of  Licensee
                              hereunder may include in addition to "Dairy Queen"
                              or "Dairy Queen/Brazier" food and beverage service
                              the  sale of various other products not identified
                              or  designated by Company's Trademarks, including,
                              but  not  limited  to, motor vehicle fuel, oil and
                              related    automotive    products,   souvenir-type
                              products, tobacco products, sundries, and packaged
                              food products not intended for  consumption on the
                              premises where sold and which are not  competitive
                              with  food and  beverage  products  identified  or
                              designated by the Trademarks (all of said products
                              collectively  referred  to in  this  Agreement  as
                              "Permitted Products").  In order to prevent public
                              confusion, preserve and protect the Trademarks and
                              establish  the   principles   which  shall  govern

                                       18
<PAGE>
                              Licensee's sale of Permitted Products and usage of
                              the    Trademarks,    the   parties   agree   that
                              notwithstanding any provision of this or any other
                              Agreement   to   the   contrary,   the   following
                              provisions  shall control with regard to Permitted
                              Products:

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

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

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

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

                                     12.5 Notwithstanding  Paragraph 8.2 hereof,
                                     Licensee  may employ  off-site  advertising
                                     media   such  as   billboards   and   radio
                                     commercials,  provided such  advertising is
                                     approved  by  Licensor  and  American,  and
                                     provided  further that no such  advertising
                                     shall be used which  creates or fosters any
                                     confusion  as to the  identity,  source  or
                                     quality of goods  identified  or designated
                                     by the  Trademarks.  Licensor  acknowledges
                                     that it may be  necessary  to share  extant
                                     billboard space with an existing Stuckey's,

                                       19
<PAGE>
                                     Wayfara  or  other   store,   and  Licensor
                                     requires  that  advertising  for the "Dairy
                                     Queen" store be as visually and  physically
                                     separate from the other  advertising  as is
                                     feasible.

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

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

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

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

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

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

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

                                       20
<PAGE>
                                             g. To allow  Licensee its principal
                                             shareholders  or  members  of their
                                             immediate  families  to engage in a
                                             competitive  business  within 2,000
                                             yards of the Authorized Location of
                                             the store  licensed  hereunder,  as
                                             defined in the Operating Agreement,
                                             but only through Bowlin's business;
                                             and

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

                               GENERAL PROVISIONS

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

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

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

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

                                       21
<PAGE>
                                             a. If intended for  American  shall
                                             be  addressed  to  American   Dairy
                                             Queen  Corporation  at  5701  Green
                                             Valley     Drive,      Minneapolis,
                                             Minnesota, 55437;

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

                                             c. If intended for Licensee,  shall
                                             be  addressed  to  Licensee  at the
                                             Authorized   Location   hereinabove
                                             designated;

                                     or to such  other  address as may have been
                                     given to the other party by notification as
                                     herein provided.

                                     Notices  for  purposes  of  this  Agreement
                                     shall be deemed to have  been  received  on
                                     the  earlier  of the  date of  delivery  or
                                     first  attempted  delivery as  indicated on
                                     the return receipt (or, in the absence of a
                                     noted delivery or noted attempted  delivery
                                     date, 15 days from noted date of mailing).

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

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

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

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

                                       22
<PAGE>
IN WITNESS THEREOF, the parties hereto have executed the foregoing "Dairy Queen"
Operating Agreement the date first above written.

                                       LICENSEE

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

                                       By /s/ M.L. BOWLIN
                                          --------------------------------------
                                          Its Executive Vice President
                                              ----------------------------------
ATTEST:

/s/ SUE BROWN
-----------------------------
ASST SECRETARY

                                        LICENSOR

                                        INTERSTATE DAIRY QUEEN CORPORATION

                                        By /s/ Signature Illegible 3/14/83
                                           -------------------------------------
                                           Its PRESIDENT
                                               ---------------------------------

ATTEST:

/s/ KIMBERLY H. FISHER
-----------------------------

                                        APPROVED:

                                        AMERICAN DAIRY QUEEN CORPORATION

                                        By /s/ Herman E. Nelson
                                           -------------------------------------
                                           Its V.P. 6/2/83
                                               ---------------------------------

ATTEST:

/s/  ROSE CULIN                        /s/ JOHN H. GRAVEL    /s/ CAROL M. GRAVEL
-----------------------------          -----------------------------------------
                                       JOHN H. GRAVEL AND CAROL M. GRAVEL

                                       23
<PAGE>
                                  APPENDIX "A"

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

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

     DAIRY QUEEN                           BUSTER BAR

     BRAZIER                               DILLY

     MR. MISTY                             DQ

     MR. MISTY KISS                        THE ELLIPSE DESIGN

     ROOF DESIGN                           BROWNIE DELIGHT

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

     FIESTA  DESIGN:                       THE CONE WITH THE
                                           CURL ON TOP

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

                        RESERVATIONS TO CERTAIN ITEMS IN
                        "DAIRY QUEEN" OPERATING AGREEMENT

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

2. Paragraph 5.1.  Licensee and American have agreed on the plans for remodeling
the existing building to conform to requirements of Paragraph 5. 1.

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

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

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

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

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

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

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

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

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

Dairy Queen/Brazier(R)              Date:______________ Initials:_______________
                                                                  (Licensee)

(Please attach to copy of current operating agreement)

                                             3/15/83             /s/ ILLEGIBLE
                                             -------             -------------
                                                                  (Licensor)

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

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

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

<TABLE>
<CAPTION>
National Required                  National Required                                 National Required
Brazier(R) Food Items              Dairy Queen(R) ,Soft Serve Items                  Beverage Items
---------------------              --------------------------------                  -----------------
<S>                                <C>                                               <C>
Hamburgers:                        Cones                                             Carbonated Drinks**
Single                             Dipped Cones                                      Mr. Misty
Double                             Sundaes
Triple                             Shakes/Malts
  w/Lettuce and Tomato             Float                                             National Optional
  w/Cheese                         Mr. Misty"- Float*                                Beverage Items
                                                                                     -----------------
Hot Dog                            Freeze                                            Milk
  w/Chili                          Mr. Misty", Freeze*                               Coffee
  w/Cheese                         Banana Split                                      Hot Chocolate
Fish Fillet Sandwich               Peanut Buster Parfait                             Iced Tea
  w/Cheese                         Double Delight(TM)                                Lemonade
Chicken  Sandwich                  Dilly Bar                                         Diet Carbonated Soft Drinks**
  w/Cheese                         Buster Bar and/or
French Fries                         Fudge Nut BarTM
Onion Rings                        DQ sandwich and/or
Chili Dog Split                      Dillywich
                                   Mr. Misty Kiss and/or
                                    Home Pak

National Optional
Brazier(R) Food Items
-----------------------
Super Dog
  w/Chili                          National Optional
  w/Cheese                         Dairy Queen Soft Serve Items
Chili Bowl                         ----------------------------
Barbecue Sandwich                  Hot Fudge Brownie Delight
                                   Strawberry Shortcake

Special Category Brazier(R) Items  Banana Supreme
--------------------------           Shake'N Sundae
Brazier(R) Crispy Fried Chicken    Parfait
                                   Soda
                                   Frozen Cakes and Logs.
                                   (Licensee  may  sell  frozen  cakes  and loge
                                   subject to meeting the  special  requirements
                                   as set forth from time to time by company and
                                   by   obtaining   prior    certification    of
                                   eligibility from company.)
</TABLE>

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

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

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

7/6/81"DAIRY QUEEN" OPERATING AGREEMENT

This Agreement entered into this 1st day of May, 1982, by and between Interstate
Dairy Queen Corporation of the city of Atlanta,  county of Fulton,  and state of
Georgia,  hereinafter  referred to as "Licensor"  and Bowlin's Inc.  d/b/a DQ of
Flying C, of the city of Albuquerque  county of Bernalillo,  State of New Mexico
herein after referred to as "Licensee":

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

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

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

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

     WHEREAS,  it is the intent of both Licensor and Licensee to preserve within
the context of a "Dairy Queen" retail store  continuing  consumer  confidence in
the  reliability  and quality of all products sold under any of the  Trademarks;
and, each party desires that all products sold under any of the Trademarks,

consistently  conform to the highest expectations of consumers of such products;
and, whereas,  by this Agreement the parties  contemplate that Licensee's store,
in addition to normal  "Dairy Queen" food and beverage  products,  may also sell
Permitted Products, as defined hereinafter.

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

                                GRANT OF LICENSE

Licensor's                    1. Licensor  hereby  grants  to  Licensee, subject
Grant  to                     to   all   the   terms,  conditions and provisions
Licensee                      hereof, the  right and license to:
<PAGE>
Mailing Address:                     1.1  Establish and operate a  retail  store
DQ of Flying C, NM                   under the name "Dairy Queen" at  Interstate
c/o Bowlin's, Inc.                   40, 1st exit West of Guadalupe  County  (as
136 Louisiana, N. E.                 indicated on the attached map), New  Mexico
Albuquerque, NM  87108               hereinafter    referred     to    as    the
                                     "Authorized  Location" (provided,  however,
                                     in the event an Authorized  Location is not
                                     designated  on the  date  hereof,  and such
                                     location  is  not   designated   herein  by
                                     Licensor within ninety (90) days after such
                                     date,  this Agreement shall become null and
                                     void  and  all  deposit  is  including  the
                                     franchise   fee   shall  be   returned   to
                                     Licensee).

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

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

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

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

                   [map of area surrounding franchised store]

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

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

                                       2
<PAGE>
                                     agrees  that  all  such  good  will  is the
                                     exclusive property of American.

                                     2.2 The  trademarks  are valuable  property
                                     rights owned by American.

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

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

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

                                     2.6 Licensee shall not use the words "Dairy
                                     Queen",  or any of its  Trademarks,  or any
                                     word or mark similar thereto,  as a part of
                                     its corporate or business name unless first
                                     approved in writing by American,  and shall
                                     use  only the word  "Dairy  Queen"  (and no
                                     other words  whatsoever)  as the trade name
                                     on the store from  which the said  products
                                     and  services   are  sold.   In  the  event
                                     American  does approve the use of the words
                                     "Dairy Queen", or any of the Trademarks, as
                                     a part of Licensee's  corporate or business
                                     name  Licensee  shall cause such name to be
                                     changed so as to eliminate those words and
                                     Trademarks from the name within thirty (30)
                                     days after termination of this Agreement.

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

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

                                      TERM

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

                                       3
<PAGE>
                      TRADEMARK STANDARDS AND REQUIREMENTS

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

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

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

Equipment and Supplies               4.3 Licensee agrees to purchase and use, in
                                     the operation of  Licensee's  "Dairy Queen"
                                     retail  store,  only  equipment,  supplies,
                                     ingredients and services which are approved
                                     by American or by Licensor.  Nothing herein
                                     shall be constructed as an attempt to limit
                                     unreasonably   the   sources   from   which
                                     Licensee may procure  equipment,  supplies,
                                     ingredients or services.  Rather, it is the
                                     intention  of the  parties  that such items
                                     conform   to   American's   standards   and

                                       4
<PAGE>
                                     specifications  of  consistent  quality and
                                     uniformity.  Nothing contained herein shall
                                     be deemed to require Licensor to approve an
                                     inordinate  number of  suppliers of a given
                                     item or  service  w3hich in the  reasonable
                                     judgment  of  American  or  licensor  would
                                     result in  licensees  or prevent  effective
                                     and economical  supervision of suppliers by
                                     approval of additional  suppliers  shall be
                                     in   writing   and   shall   contain   such
                                     information  as American  and  Licensor may
                                     reasonably  request.  American and Licensor
                                     reserve   the  right  to  charge   back  to
                                     Licensee  or  the  proposed   supplier  all
                                     reasonable expenses incurred in considering
                                     requests for approval.

Approved Adaptations                 4.4 Complete and detailed uniformity  under
                                     many varying conditions may not be possible
                                     or  practical  and  Licensor  and  American
                                     reserve   the  right  and   privilege,   at
                                     American's  sole discretion and as Licensor
                                     and American may deem in the best interests
                                     of all concerned in any specific  instance,
                                     to accommodate  special needs of Licensee's
                                     Authorized  Site or that of any other  like
                                     based  on the  peculiar  site or  location,
                                     density of population,  business potential,
                                     population of trade area, existing business
                                     practices,  requirements  of local law,  or
                                     any  other  condition  which  Licensor  and
                                     American  deem to be of  importance  to the
                                     successful operation of a like business.

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

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

                       FACILITY STANDARDS AND MAINTENANCE

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

                                       5
<PAGE>
Store Facility                       5.1  Licensee  agrees that the retail store
                                     shall    constructed    and   equipped   in
                                     accordance   with   American's    currently
                                     approved  specifications  and  standards in
                                     respect to building, equipment,  inventory,
                                     signage, fixtures,  location and design and
                                     accessory features.

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

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

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

Modernization  and/or                5.5 Each and every  transfer as provided in
Replacement of Time of Transfer      Paragraph  9.10 hereof  shall be  expressly
                                     conditioned    upon    Licensee    promptly
                                     performing  and  effecting  such  items  of
                                     modernization    and/or    replacement   of
                                     building,  equipment, and signage as may be
                                     necessary  to permit the same to conform to
                                     the standards  then  prescribed by American

                                       6
<PAGE>
                                     for similarly  situated  store  operations.
                                     Licensee  recognizes and acknowledges  that
                                     the  requirements of this paragraph 5.5 are
                                     both  reasonable  and  necessary  to insure
                                     continued  public  acceptance and patronage
                                     of,   and   to   avoid   deterioration   or
                                     obsolescence  in  the  business   conducted
                                     hereunder.

               PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS

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

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

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

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

                                       7
<PAGE>
                                     types,   shall   meet  the   standards   of
                                     uniformity and quality as
                                     now   or   hereafter   reasonably   set  by
                                     American.  Licensee shall be furnished with
                                     lists  of  approved  equipment,   supplies,
                                     ingredients and services.

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

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

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

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

                                       8
<PAGE>
Notice of Existence of               6.8 Licensee acknowledges that  he is aware
Different Forms of                   of  the  fact  that  present  licensees  of
License  Agreements                  Licensor  and  American   operate  under  a
                                     number of different  forms of agreement and
                                     that consequently Licensor's and American's
                                     obligations  and rights in respect to their
                                     respective  licenses may differ  materially
                                     in certain instances.

                       PERSONNEL AND SUPERVISION STANDARDS

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

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

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

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

Internal Training Program            7.4  Licensor   shall   provide   or   make
                                     available to Licensee an in-store  training
                                     program for all store  employees.  Licensee
                                     shall train and  periodically  re-train all
                                     store  employees  using the  training  aids
                                     made  available by  Licensor.  From time to

                                       9
<PAGE>
                                     time,  American  will revise such  training
                                     materials  and aids and it or Licensor make
                                     the  same   available   to   Licensee   for
                                     purchase.

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

                            SALES PROMOTION PROGRAMS

Sales Promotion Programs             8.1 Licensor  and  Licensee,  together with
and Payment to American              other licensees of American, American shall
of Expenses for                      cooperate in the sales  promotion  programs
Administering Same                   of approved products. To this end, American
                                     has  reserved  the right to  establish  and
                                     organize sales promotion programs from time
                                     to  time  and  Licensee  agrees  to  pay to
                                     Licensor for remittance to American a sales
                                     promotion  program  fee  as  set  forth  in
                                     Paragraph 9.1 hereof. Licensee acknowledges
                                     and  agrees  that  American  has had in the
                                     past,  and shall in the  future  have,  the
                                     discretion  to  determine  expenditures  of
                                     funds   collected   in   respect  to  sales
                                     promotion  programs and as to the selection
                                     of the  promotional  materials and programs
                                     for  which  said   expenditures  are  made,
                                     provided, however, that American shall make
                                     a good faith effort to expend such funds in
                                     the general best interest of  participating
                                     licensees. Licensee acknowledges and agrees
                                     that American may compensate  itself and/or
                                     its   affiliates   for   the   expense   of
                                     administering    such    sales    promotion
                                     programs.  Licensor  shall advise  Licensee
                                     annually   of   American's    expenses   in
                                     administering    said    sales    promotion
                                     programs.

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

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

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

                                       10
<PAGE>
                                     FEES, REPORTING AND FINANCIAL MANAGEMENT

Service, Set-up,                     9.1 Licensee shall pay to Licensor as a
Franchise,  License and              service and set-up fee  $15,000.00 of which
Sales  Promotion                     $7,500.00   has    been   paid   upon   the
Program Fees                         execution  of  this Agreement and a balance
                                     of $7,500.00 is payable in accordance  with
                                     the terms of  Appendix C  attached  hereto.
                                     Said  service and set-up fee is intended to
                                     compensate   Licensor   for  its   expenses
                                     incurred,    and   services   rendered   in
                                     establishing   and  setting  up  Licensee's
                                     initial  operation.  In  addition  to  said
                                     service  and  set-up  fee,  during the full
                                     term of this  Operating  Agreement,  and in
                                     consideration   of   the   rights   granted
                                     hereunder,  Licensee  shall pay to Licensor
                                     as  license  fee in  respect  to the rights
                                     granted  herein a sum  equal to 4% of gross
                                     retail  sales,  exclusive  of retail  sales
                                     taxes, of all products,  goods and wares of
                                     every  kind and  nature  sold  from,  or in
                                     connection    with   the    operation   of,
                                     Licensee's   "Dairy  Queen"  retail  store,
                                     including,   but   without   limiting   the
                                     generality of the  foregoing,  sales of all
                                     products of any of the  Trademarks  as well
                                     as sales of other  merchandise  whether  or
                                     not  identified  by other  brand  names and
                                     which  may  be   authorized   for  sale  by
                                     American  or  Licensor  from  time to time;
                                     provided,  notwithstanding  the  foregoing,
                                     that no such  continuing  license fee shall
                                     be  payable   with   respect  to  sales  of
                                     Permitted Products.  In addition,  mittance
                                     to  American  a sales  promotion  fee to be
                                     expended in accordance  with the provisions
                                     of Paragraph  8.1. The sales  promotion fee
                                     shall be a sum  equal  to not less  than 3%
                                     nor more than 5% of Licensee's gross retail
                                     sales net of sales taxes  (excluding  sales
                                     of  Permitted  Products).   Licensor  shall
                                     determine and notify  Licensee of the exact
                                     percentage  prior to the  first day of each
                                     fiscal   year  of   Licensor   (except   no
                                     notification  will be given with respect to
                                     any year for which the  percentage is to be
                                     unchanged  from the preceding  year).  Such
                                     percentage  shall be the same as that to be
                                     employed during such succeeding year by the
                                     majority of "Dairy Queen"  licensees within
                                     the   marketing   area  as   determined  by
                                     American within which  Licensee's  store is
                                     located.

Computations and Remittances         9.2 All  amounts  due and  owing  hereunder
                                     shall  be  computed  at  the  end  of  each
                                     month's  operation and  remittance  for the
                                     same shall be made to Licensor on or before
                                     the  twelfth  day  of the  following  month
                                     accompanied by the reports  provided for in
                                     Paragraph 9.4 hereof.  The  computation  of
                                     said amounts  shall be certified  and sworn
                                     to by Licensee in the manner  specified  by

                                       11
<PAGE>
                                     Licensor  and  Licensee   shall  supply  to
                                     Licensor such  supporting or  supplementary
                                     materials   as  Licensor   may   reasonably
                                     require  to  verify  the  accuracy  of such
                                     remittances.

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

Reports and Records                  9.4  Licensee  shall keep true records from
                                     which all sums payable under this Agreement
                                     and the  dates of  accrual  thereof  may be
                                     readily  determined.  Licensee  shall  make
                                     written reports to Licensor in such form as
                                     Licensor  may from  time to time  prescribe
                                     within  fourteen (14) days after the end of
                                     each month's  operation  setting  forth the

                                       12
<PAGE>
                                     amount of gross sales of all products from,
                                     or in  connection  with the  operation  of,
                                     said store and the business  thereof during
                                     said month.  In addition to the  foregoing,
                                     and in addition  to such other  information
                                     as Licensor may from time to time  require,
                                     said monthly  report shall  accurately  set
                                     forth the total  number of  gallons of mix,
                                     the total number of pounds of meat, and the
                                     quantity  of other basic  commodities  used
                                     during  said  month  and the  sources  from
                                     which said mix, meat and other  commodities
                                     were  purchased  together  with a  complete
                                     statement  of  Licensee's  cost  of  labor,
                                     utilities,  rent  and  each  other  cost of
                                     operation.  For the purpose of said reports
                                     the date of use of such mix, meat and other
                                     commodities  shall be deemed to be the date
                                     of receipt at the store. Licensor, American
                                     or the authorized  representative of either
                                     shall  have the right at all  times  during
                                     the  business   day  to  enter   Licensee's
                                     premises  where books and records  relative
                                     to said  store  are kept,  and to  inspect,
                                     copy and audit such books and  records.  In
                                     the event that any such inspection or audit
                                     reveals a variance  of 3% or more from data
                                     reported  to  Licensor  or   American,   in
                                     addition  to any other  rights it may have,
                                     Licensor  or  American   may  conduct  such
                                     further periodic audits and/or  inspections
                                     of  Licensee's  books  and  records  as  it
                                     reasonably  deems  necessary  for up to one
                                     year  thereafter  and such  further  audits
                                     and/or  inspections  shall be at Licensee's
                                     sole expense including  without  limitation
                                     reasonable  professional  fees,  travel and
                                     room and board  expenses  directly  related
                                     thereto.

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

Payment of Debts                     9.6  Licensee agrees to  pay promptly, when
                                     due, all taxes and assessments  that may be
                                     assessed   against  said  premises  or  the
                                     equipment  or supplies  used in  connection
                                     with  Licensee's  business,  all  liens and
                                     encumbrances  of every  kind and  character

                                       13
<PAGE>
                                     created or placed  upon or  against  any of
                                     said  property  and all  accounts and other
                                     indebtedness  of  every  kind  incurred  by
                                     Licensee in the  conduct of said  business.
                                     In the event  Licensee  should  default  in
                                     making any such payment,  Licensor shall be
                                     authorized  but  not  required,  to pay the
                                     same on  Licensee's  behalf and  Licensee's
                                     covenants promptly to reimburse Licensor on
                                     demand for any such payment. to Licensor by
                                     the same  arise  this  Paragraph  vision of
                                     this  interest  at  12%  per  Any  and  all
                                     amounts owing Licensee  hereunder,  whether
                                     under  the  provisions  of 9.6 or under any
                                     other  Agreement,  shall bear interannum or
                                     the   maximum   rate   permitted   by  law,
                                     whichever is less,  from and after the date
                                     of accrual thereof.

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

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

Liability and Insurance              9.9  Licensee   hereby  waives  all  claims
                                     against   Licensor   and/or   American  for
                                     damages to  property or injuries to persons
                                     arising out of the  Operation of Licensee's
                                     business,  and Licensee shall indemnify and
                                     save Licensor  and/or  American  and/or the
                                     affiliates  of either  harmless of and from
                                     any damage or injury to property or persons
                                     arising  from  or in  connection  with  the
                                     operation   of   said   business   or   the
                                     consumption   of   the   product   thereof.
                                     Licensee  further  agrees to  purchase  and
                                     maintain  in full force and  effect  during
                                     the term of this  Agreement,  at Licensee's
                                     sole  expense,  liability  insurance  in an
                                     aggregate  amount  not less  than  $300,000
                                     insuring  Licensee,  Licensor  and American
                                     from  liability for any and all such damage
                                     or injury and  Licensee  further  agrees to
                                     deliver to  Licensor  a proper  certificate
                                     evidencing  the existence of such insurance
                                     coverage and Licensee's compliance with the
                                     provisions  of  this  paragraph  and  which
                                     provides that Licensor and American will be
                                     given thirty (30) days prior written notice

                                       14
<PAGE>
                                     of   material   change,    termination   or
                                     cancellation of the policy.  Said insurance
                                     coverage  shall  commence  as of  the  date
                                     Licensee   commences   operating  a  "Dairy
                                     Queen"  retail  store or as of the date the
                                     Authorized  Location is first identified as
                                     a site on  which  a  "Dairy  Queen"  retail
                                     store  will be  operated,  whichever  shall
                                     first occur.

Assignment and Transfer              9.10  Licensee   agrees  not  to  transfer,
                                     assign or alienate his  interest  herein or
                                     hereunder  in whole or in part  without the
                                     prior  written  consent of Licensor,  which
                                     consent shall not be withheld unreasonably,
                                     but  Licensor  may insist that any proposed
                                     assignment  be  an  assignment  of  all  of
                                     Licensee's  interest hereunder and that any
                                     proposed   assignee,   be  a   person,   in
                                     Licensor's  reasonable judgment,  qualified
                                     to  provide  active  supervision  over  the
                                     operation of said store in compliance  with
                                     Licensee's  obligations  hereunder  and who
                                     has  sufficient  net worth and  sources  of
                                     capital which meet  Licensor's then current
                                     requirements  for a store  operation of the
                                     type   contemplated   by   this   form   of
                                     agreement.  In the  event  Licensee's  said
                                     interest   should  be  so   transferred  or
                                     assigned,  Licensee  shall pay to  Licensor
                                     contemporaneously  therewith the sum of One
                                     Thousand Five Hundred Dollars ($1,500),  or
                                     an amount  equal to one-half of the license
                                     fees paid or payable by Licensee in respect
                                     of  operations  in the twelve  (12)  months
                                     ending with the month prior to the month in
                                     which the assignment is approved, whichever
                                     is the  greater  amount,  as a fee  for the
                                     preparation of a new Operating Agreement in
                                     assignee's name, for Licensor's  assistance
                                     in reset-up of the retail store and for any
                                     and  all  other   expenses   incurred   and
                                     services  rendered by Licensor in effecting
                                     said  transfer.  In the  event  of any such
                                     assignment, the assignee, as a condition of
                                     Licensor  approving such  assignment,  must
                                     attend and to the  reasonable  satisfaction
                                     of  Licensor   successfully   complete,  at
                                     assignee's  expense,   American's  training
                                     program at American's  training center.  In
                                     the  event   Licensee  is  a   corporation,
                                     partnership  or other entity,  any transfer
                                     or  transfers  of stock (or  other  form of
                                     ownership  interest)  constituting  in  the
                                     aggregate   a   controlling   interest   in
                                     Licensee  shall be subject to the  consent,
                                     transfer  fee  and  all  other   applicable
                                     provisions of this Agreement.  Licensor may
                                     withhold   its  consent  to  any   proposed
                                     transfer until all amounts owed by Licensee
                                     to  Licensor,  American,  the  lailiates or
                                     subsidiaries  of either and approved "Dairy
                                     Queen" suppliers have been paid in full.

                                       15
<PAGE>
Offsets                              9.11  Licensee  waives any and all existing
                                     and future  claims and offsets  against any
                                     amounts due hereunder,  which amounts shall
                                     be paid when  due.  Licensor  and  American
                                     shall be  entitled  to apply or cause to be
                                     applied  against  amounts  due to either of
                                     them of any of their respective  affiliated
                                     companies  any amounts  which may from time
                                     to time be held by  either of them or their
                                     respective  affiliates on Licensee's behalf
                                     for be  owed to  Licensee  by  Licensor  or
                                     American  or their  respective affiliates.

                               CONTRACT VIOLATION

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

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

                                       16
<PAGE>
                                     materials.  Failure of  Licensee  to pay to
                                     Licensor  any past due amount  owed  within
                                     fourteen  (14) days of  Licensor's
                                     written notice of default  therein shall be
                                     construed    as    Licensee's     voluntary
                                     abandonment   of  this  Agreement  and  the
                                     franchised business hereunder operated.

                                     10.2   Except  as   hereinafter   provided,
                                     failure  of  Licensee  to cure a default by
                                     Licensee  hereunder  within  fourteen  (14)
                                     days from the date of a  written  notice of
                                     default  mailed or  delivered  to Licensee,
                                     which  notice  states such  default,  shall
                                     give Licensor good cause to terminate  this
                                     Agreement.     Termination     shall     be
                                     accomplished  by mailing or  delivering  to
                                     Licensee  written  notice  of  termination,
                                     which   notice   shall  state  the  grounds
                                     therefore   and  shall  be  effective   (i)
                                     immediately   in  any  case  of   voluntary
                                     abandonment  of this  Agreement by Licensee
                                     of  conviction  of  Licensee  of an offense
                                     directly related to the business  conducted
                                     hereunder;  or (ii)  sixty  (60) days after
                                     the date of such notice of  termination  in
                                     all other cases;  provided,  however,  that
                                     notwithstanding any other provision of this
                                     Paragraph   10,  this   Agreement   may  be
                                     terminated   immediately  upon  failure  of
                                     Licensee  to cure within  twenty-four  (24)
                                     hours of notice  thereof any default  under
                                     this Agreement which materially impairs the
                                     good  will   associated  with  any  of  the
                                     Trademarks.  In addition to the  foregoing,
                                     this   Agreement   may  be   terminated  by
                                     Licensor  upon any  ground or by any period
                                     of notice as may be permitted  from time to
                                     time by applicable law or  regulation.  Any
                                     notice of default of  termination  shall be
                                     personally   delivered   or  be  mailed  by
                                     certified  or   registered   mail,   return
                                     receipt requested, postage prepaid.

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

                               TERMINATION RIGHTS

                              11.  Upon  the   termination   of  this  Operating
                              Agreement:

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

                                       17
<PAGE>
                                     the Trademarks and  pay all  monies  due at
                                     said date. Licensee  shall  promptly and at
                                     his own expense  remove  or  obliterate all
                                     store  signage  and  displays  furnished to
                                     Licensee  by  Licensor and  shall remove or
                                     obliterate and thereafter  discontinue  all
                                     use  of  any signage  or  displays  at  the
                                     Authorized  Location or  in his  possession
                                     bearing any of  the   Trademarks  or  names
                                     or  material confusingly  similar to any of
                                     the Trademarks.

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

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

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

                               PERMITTED PRODUCTS

                              12. It is mutually  understood and agreed that the
                              store   facilities   and  operations  of  Licensee
                              hereunder may include in addition to "Dairy Queen"
                              or "Dairy Queen/Brazier" food and beverage service
                              the sale of various other  products not identified
                              or designated by Company's Trademarks,  including,
                              but not limited to, motor  vehicle  fuel,  oil and
                              related   automotive    products,    souvenir-type

                                       18
<PAGE>
                              products, tobacco products, sundries, and packaged
                              food products not intended for  consumption on the
                              premises where sold and which are not  competitive
                              with  food and  beverage  products  identified  or
                              designated by the Trademarks (all of said products
                              collectively  referred  to in  this  Agreement  as
                              "Permitted Products").  In order to prevent public
                              confusion, preserve and protect the Trademarks and
                              establish  the   principles   which  shall  govern
                              Licensee's sale of Permitted Products and usage of
                              the    Trademarks,    the   parties   agree   that
                              notwithstanding any provision of this or any other
                              Agreement   to   the   contrary,   the   following
                              provisions  shall control with regard to Permitted
                              Products:

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

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

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

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

                                     12.5 Notwithstanding  Paragraph 8.2 hereof,
                                     Licensee  may employ  off-site  advertising
                                     media   such  as   billboards   and   radio

                                       19
<PAGE>
                                     commercials,  provided such  advertising is
                                     approved  by  Licensor  and  American,  and
                                     provided  further that no such  advertising
                                     shall be used which  creates or fosters any
                                     confusion  as to the  identity,  source  or
                                     quality of goods  identified  or designated
                                     by the  Trademarks.  Licensor  acknowledges
                                     that it may be  necessary  to share  extant
                                     billboard space with an existing Stuckey's,
                                     Wayfara  or  other   store,   and  Licensor
                                     requires  that  advertising  for the "Dairy
                                     Queen" store be as visually and  physically
                                     separate from the other  advertising  as is
                                     feasible.

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

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

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

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

                                             d. Subject to Paragraph 6-1 hereof,
                                             to   relieve   Licensee   from  the
                                             obligation    with    respect    to
                                             Permitted Products, to purchase and
                                             use      equipment,       supplies,
                                             ingredients  and services  approved
                                             by American;

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

                                             f. To  relieve  Licensee:  (i) from
                                             the   obligation   of   using,   in
                                             preparing  or  selecting  Permitted
                                             Products, ingredients, formulas and
                                             supplies   specified  by  American;
                                             (ii)   from   the   obligation   to
                                             observe,  with respect to Permitted
                                             Products, the requirements relative
                                             to portions,  sizes, appearance and
                                             packaging  set forth in  American's

                                       20
<PAGE>
                                             "Store    Management     Operations
                                             Manual"  and  "product  preparation
                                             charts";  and (iii) with respect to
                                             Permitted  Products,  to allow  the
                                             use of other  supplies and customer
                                             service materials without regard to
                                             standards of uniformity and quality
                                             as  are  now  or  hereafter  set by
                                             American;

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

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

                               GENERAL PROVISIONS

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

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

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

                                       21
<PAGE>
                                     contained   herein  and  in  the  aforesaid
                                     application.

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

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

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

                                             c. If intended for Licensee,  shall
                                             be  addressed  to  Licensee  at the
                                             Authorized   Location   hereinabove
                                             designated;

                                     or to such  other  address as may have been
                                     given to the other party by notification as
                                     herein provided.

                                     Notices  for  purposes  of  this  Agreement
                                     shall be deemed to have  been  received  on
                                     the  earlier  of the  date of  delivery  or
                                     first  attempted  delivery as  indicated on
                                     the return  receipt (or, in the abscence of
                                     a  noted   delivery   or  noted   attempted
                                     delivery  date,  15 days from  noted day of
                                     mailing).

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

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

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

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

                                       22
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed the foregoing "Dairy Queen"
Operating Agreement the date first above written.

                                    LICENSEE

                                    BOWLIN'S, INC. d/b/a DQ of FLYING C, NM
                                    --------------------------------------------
ATTEST:

                                     By  /s/ MICHAEL L. BOWLIN
                                         ---------------------------------------
                                         Michael Bowlin Subject to reservations
                                         detailed in attached Appendex "D"
                                         ---------------------------------------

/s/ SUE E. BROWN
--------------------------------
       Asst. Secretary              LICENSOR

                                    INTERSTATE DAIRY QUEEN CORPORATION
                                    --------------------------------------------

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

ATTEST:

/s/ GREGORY W. GRIFFITH
--------------------------------
        Sec Treas

                                    APPROVED:

                                    AMERICAN DAIRY QUEEN CORPORATION
                                    --------------------------------------------

                                    By: /s/ HERMAN E. NELSON
                                        ----------------------------------------

                                    Its V.P.
                                        ----------------------------------------

                                       23
<PAGE>
                                  APPENDIX "A"

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

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

  DAIRY QUEEN                           BUSTER BAR

  BRAZIER                               DILLY

  MR. MISTY                             DQ

  MR. MISTY KISS                        THE ELLIPSE DESIGN

  ROOF DESIGN                           BROWNIE DELIGHT

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

  FIESTA                                DESIGN: THE CONE WITH THE
                                        CURL ON TOP

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

                                       24
<PAGE>
                                  APPENDIX "B"

                              "Dairy Queen/Brazier"

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

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

<TABLE>
<CAPTION>
<S>                                     <C>                                    <C>
NATIONAL REQUIRED ITEMS                 NATIONAL REQUIRED ITEMS                NATIONAL OPTIONAL ITEMS
-----------------------                 -----------------------                -----------------------
CONES                                   SANDWICHES                             HOT FUDGE BROWNIE DELIGHT SUNDAE
DIPPED CONES                            SUPER "BRAZIER"                        SUNDAE SUPREME SUNDAE
SUNDAES                                 THE "HALF POUNDER"                     STRAWBERRY SHORTCAKE SODAS
"FIESTA" SUNDAE                         BIG "BRAZIER"                          FROZEN NOVELTIES
BANANA SPLIT                            BIG "BRAZIER" WITH TOMATO BIG          BUSTER BAR
PARFAIT SHAKES AND MALTS HOMEPAK        BRAIZER WITH CHEESE                    SANDWICHES
FLOATS                                  HAMBURGER OR BRAIZER                   SUPER DOG
FREEZES                                 CHEESEBURGER OR BRAZIER WITH CHEESE    SUPER DOG WITH CHILI
"MR. MISTY" FLOAT                       HOT DOG                                SUPER DOG WITH CHEESE
"MR. MISTY" FREEZES                     HOT DOG WITH CHILI                     BARBECUE
FROZEN NOVELTIES                        HOT DOG WITH CHEESE                    STEAK SANDWICH
"DILLY" BAR                             FISH SANDWICH                          CHILI BOWL
"BAR DQ"                                FISH SANDWICH WITH CHEESE              BRAZIER CRISPY FRIED CHICKEN
"DQ SANDWICH"                           FRENCEH FRIES
"DILLYWICH"                             ONION RINGS
"MR. MISTY KISS"
"STAR KISS"
DRINKS
THREE APPROVED CARBONATED DRINKS
"MR. MISTY"
</TABLE>

                                       -1-
<PAGE>
Each of the above products is to be used only in the rather specified by company
and in connection with the goods and/or services specified by the Company as set
forth  in the  "Dairy  Queen"  Store  Management  Operations  @'Manual  and  the
"Brazier"  Operations Manual of the Company. as changed or attended from time to
time by Company. No deviations will he permitted.

3/77

                                       -2-
<PAGE>
                                  Appendix "C"

Licensee  shall pay to  Licensor  as a service  and set-up fee  $15,000 of which
$7,500  has been paid upon the  execution  of this  Agreement  and a balance  of
$7,500 Is payable as follows:  $1,500 principal payable each June lst (beginning
June 1, 1983 and ending June 1, 1987) and 12%  interest  per annum on the unpaid
principal payable each June lst.

                                       -1-
<PAGE>
                                  APPENDIX "D"

                        RESERVATIONS TO CERTAIN ITEMS IN

                        "DAIRY QUEEN" OPERATING AGREEMENT

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

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

3. Paragraph 6.1 An application  to Mr.  Rosencrans of "Interstate  Dairy Queen"
for some  optional  items to be added to our "DQ" menu has been  made.  Licensee
will not serve  such  items,  unless and until  approved  as  optional  items by
American.   Also,   in   Licensee's   store   building   adjoining   the  "Dairy
Queen"/"Brazier"   Licensee  does  sell   alcoholic   beverages,   intended  for
consumption off premises.  licensee wishes to disclose this so it is no surprise
to  Licensor  or  American  later.  No  alcoholic  beverages  are  sold  in  the
"DQ"/"Brazier" building. Licensee acknowledges that the nature of dispensing the
alcoholic  beverages is in package sales and Licensee shall not dispense alcohol
intended for consumption on the premises.  Licensee operates a full Line novelty
and curio  store in the  building  adjoining  Licensee  "Dairy  Queen"/"Brazier"
operation. Licensee maintains separate accounting for sales from adjoining store
and  "Dairy  Queen"/"Brazier"  operations.  Sales  in  Licenisee's  merchandise,
novelty,  and curio store  shall not be subject to  continuing  license  fees or
sales promotion fees.

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

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

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

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

                                       -1-
<PAGE>
Licensee is obligated to pay and  participate  annually in the Annual  Marketing
Program  (AMP).  In cases where  licensee  pays sales  promotion  fee monthly to
Interstate,  the AMP fee will be paid from amounts  remitted to  Interstate.  In
cases where  Licensee does not pay sales  promotion  fee monthly to  Interstate,
Licensee shall remit the annual fee to Interstate.

6.  Paragraph  9.4.  Licensee  has  requested  that for  reasonable  and orderly
availability  of data that if 1-icensor  or American  wishes to audit or took at
T-Licensee  books,  that Licensor give Licensee at Least 10 days notice prior to
date so data may be readily  available to Licensor.  T-icensor and American,  in
accordance  with generally  accepted  auditing  standards,  decline to give such
notice.

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

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

9. Paragraph  12.3.  Licensee  agrees to not sell Liquor or alcoholic  beverages
directly  in the "Dairy  Queen"/"Brazier"  building of the  Bowlin's  Flying "C"
Ranch.  However, in the Flying "C" Ranch building of Licensee operation,  liquor
and  alcoholic  beverages  will  continue to be sold,  for  consumption  off the
premises. See Appendix D, Paragraph 3.

                                       -2-
<PAGE>
                                  "DAIRY QUEEN"
                        SUBFRANCHISE DISCLOSURE STATEMENT

                            ACKNOWLEDGMENT OF RECEIPT

The  undersigned  hereby  acknowledges  receipt  of  a  completed   subfranchise
disclosure statement concerning the above subfranchise dated December 1, 1981.

                                        /s/ M.L. BOWLIN
                                        ----------------------------------------

                                        12/15/81
                                        ----------------------------------------

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