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Exhibit 10.49    
    

 
 

SUPPLY AGREEMENT    
    

        This agreement sets forth the terms of the Supply Agreement between MRS. FIELDS' ORIGINAL
COOKIES, INC. ("Buyer") and COUNTRYSIDE BAKING COMPANY, INC. ("Seller"), relating to the purchase by Buyer, and
the sale by Seller, of cookie dough and other bakery products, having the item codes and names listed on attached Exhibit A, and "new bakery products" designated as such under
Paragraph 4 below (collectively, "Products"). 

        1.     Minimum Annual Purchase and Sale of the Products. Buyer agrees to buy, and Seller agrees to sell, an amount not less than
15,000,000 pounds of the Products during each of calendar years 2003 (proration), 2004, 2005 and 2006 (the "Term"). 

        2.     (a)    Distributor Purchases. Distributors designated by Buyer, who are approved by Seller and who meet Seller's
normal standards of creditworthiness ("Approved Distributors"), may order and purchase the Products and otherwise act on Buyer's behalf pursuant to this Supply Agreement. Any such Approved Distributor
purchases, or any purchases by or on behalf of Buyer's franchisees or licensees shall be governed by the terms of this Supply Agreement (except to the extent inconsistent with any separate agreement
between Seller and any such franchisee or licensee) and shall be counted towards Buyer's minimum annual purchase obligation under Paragraph 1. Buyer hereby represents and warrants to Seller
that Buyer is representing, and acting as an agent for, Buyer's franchisees and the Approved Distributors in the negotiation of the terms and conditions of this Supply Agreement and that Buyer has the
right under its franchise agreements with its franchisees and under its agreements with the Approved Distributors to act in such agency capacity. 

        (b)   Distribution Costs. Should a Force Majeure Event (as defined in Section 21(a)) occur which affects the cost of
transportation, Seller is entitled to recalculate the freight costs and adjust the conversion costs accordingly. 

        3.     (a)    Price. The price to be paid for the Products shall be an amount equal to the Total Price ($ per lb.) as
listed on the attached Exhibit A, adjusted as may be provided in Paragraphs 3(b) through 3(d) below. 

        (b)   Commodity Items—Price Adjustment. Commodity Items are listed in Exhibit B and include bagged flour,
bagged sugar, eggs, chocolate, butter, nuts, oil and packaging ("Commodity Items"). Price standards for Commodity Items will be set at the beginning of each calendar year during the term of this
Supply Agreement based on a forecasted average annual cost ("Commodity Standards"). These Commodity Standards will be evaluated quarterly and adjusted to market conditions. At the end of each quarter,
an average of actual purchase costs paid during the quarter will be tallied against the standard. If there is a variance (positive or negative) between the average of actual purchase costs paid during
the quarter and the standard, then Buyer or Seller, as the case may be, shall remit such variance to the other party within thirty (30) days of the end of the quarter. 

        (c)   Other Items—Price Adjustment. Raw material, freight and packaging costs for other items not listed on
Exhibit B will be adjusted by the Seller at the end of each calendar year and applied to Products purchased in the following year as follows: 

        All
ingredients, freight and packaging (except for Commodity Items listed in 3(b) and Exhibit B shall be adjusted to a standard cost which is derived by using the last actual cost
of each such item paid by Seller for the item. The cost will be used for the subsequent calendar year.

        (d)   Price Rebates. At the end of each calendar quarter, Seller shall rebate to Buyer  [CONFIDENTIAL]1 for each pound of Product sold by Seller to Buyer or any
Approved Distributor or franchisee of
Buyer during the calendar quarter (the "Price Rebates"). 

        1
Confidential treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC. 

        4.     New Bakery Products. If compatible with the normal operation of Seller's business, Seller may agree, in its sole
discretion, to manufacture any new bakery products designated as such by Buyer (whereupon they will be deemed "Products" for all purposes under this agreement) pursuant to the directions, formulations
and recipes communicated by Buyer to Seller. Seller's obligation to supply new bakery products to Buyer under this Paragraph 4 is subject to agreement between Buyer and Seller on the initial
price to be charged Buyer for the same. For purposes of computing the price to be paid by Buyer under Paragraph 3, such initial price shall be deemed to be the price as if listed on attached
Exhibit A. Seller agrees to cooperate and offer reasonable assistance to Buyer in the development of new bakery products, provided in each case that Buyer agrees to compensate Seller for costs
incurred. 

        5.     Quantities and Orders.

        (a)   Buyer
shall, prior to September 30 of each calendar year during the term, furnish Seller with a schedule forecasting monthly estimated quantities of the specific
Products to be purchased by Buyer during the following calendar year. 

        (b)   Buyer
or its designated representative shall submit an order to Seller on or prior to Wednesday of each week for Products to be produced by Seller during the following
week. Each order shall be for a minimum of one batch of the Products ordered, and shipping instructions shall correspond with the regional delivery schedule provided from time to time by Seller.
Seller shall confirm, in writing, receipt of each order. 

        6.     Delivery. Seller shall use commercially reasonable efforts to ship Products ordered by Buyer pursuant to
Paragraph 5(b) hereof such that the Products are delivered to the destination designated by Buyer by the dates specified for delivery, except that the date specified for delivery shall allow
for normal transportation delays. Seller shall notify Buyer in writing of the date on which Products ordered have been shipped and all related shipping information. Delivery of products shall be
C.I.F. the destination (within the 48 contiguous states) designated by Buyer in the notice given pursuant to Paragraph 5(b), unless Buyer, an Approved Distributor or franchisee of Buyer elects
to pick up the Products F.O.B. Seller's plant. Seller shall ship Products in refrigerated containers at a core product temperature not to exceed ten (10) degrees F. 

        7.     Payment. The price for the Products shall be payable net cash within 20 days from the date of invoice or shipment,
whichever is earlier. Buyer or its representative may dispute any invoice in good faith as long as Buyer or its representative shall pay all undisputed amounts in a timely manner. Buyer or its
representative shall pay interest on all overdue accounts at the lesser of (1) the "Prime Rate" (or any successor rate) as then published in the Wall Street
Journal plus 1% or (ii) the highest applicable legal rate (the "Penalty Rate"). 

        8.     Sale of Products to Others. Seller will not sell or offer to sell the Products or any bakery items produced from the
Licensed Trade Secrets (as hereinafter defined) or derived therefrom to any persons, entities or parties other than Buyer or any designee of Buyer. Nothing in this Supply Agreement shall be construed
to limit Setter's right to sell to other customers items which are of a similar type to the Products, but which do not use the Licensed Trade Secrets in their manufacture, production formulation or
otherwise. 

        9.     Purchase of Supplies. If Seller acquires raw materials or supplies which are unique to the production of Products and
which are not customarily used in the production of other bakery items by Seller (the "Supplies), and the Supplies are not used in the production of Products ordered by Buyer during the shelf life of
the Supplies, and the Supplies cannot be used by Seller in the manufacture of other bakery items in the normal course of Seller's business, Buyer shall pay to Seller the actual costs of the Supplies
not used by Seller and all expenses incurred by Seller in the storage and any disposal thereof. In addition, if Seller has produced Products to fill an order received from Buyer pursuant to
Paragraph 5(b) hereof, and Buyer does not call for delivery of the same before the expiration of the shelf life thereof, Seller shall destroy the same and invoice Buyer for the price with
respect thereto. 

        10.   Duty to Examine. Upon receipt of the Products at their destination, Buyer shall examine the Products for impurities,
damage, spoilage and any and all other defects to such Products. Promptly

upon discovery thereof by Buyer, but in any event not later than thirty (30) days after receipt, Buyer shall notify Seller of any Products which are damaged, defective, opened or improperly
packaged. If Buyer has previously paid for defective Products, Buyer shall be entitled to a refund of the portion of the Price attributable to such defective Products within ten (10) days after
the notice of the defect, unless the same is disputed by Seller in good faith, except that if the amount to be refunded does not exceed $1,000, such amount shall be a credit against the next invoice.
Seller shall pay Buyer interest on all overdue accounts calculated at the Penalty Rate. If requested by Seller, Buyer shall promptly return defective Products to Seller at Seller's expense. Buyer
further agrees to take reasonable steps at Seller's expense, for a period not to exceed ten (10) days after notice to Seller of the defect, to preserve the rejected Products pending Seller's
instructions. 

        11.   Replacement of Damaged Goods. If Seller discovers, upon examination pursuant to Paragraph 10 hereof, that any of
the Products delivered to Buyer are spoiled, damaged or otherwise defective, Buyer shall have the right to require Seller to replace such defective Products, provided that at least five
(5) percent (by price) of the total shipment of Products is spoiled, damaged or otherwise defective. If Buyer so elects to have such Products replaced, the shipment of any replacement products
will be effected within seventy-two (72) hours (or three working days, if later). Seller shall, if requested by Buyer, cause such replacement Products to be delivered to Buyer, at
Seller's expense, by the most rapid means of commercially feasible ground transportation available. 

        12.   Rotation of Finished Products. Seller agrees to rotate all finished Products stored by Seller after production on a
"first in-first out" basis. 

        13.   License. For purposes of this Supply Agreement, "Licensed Trade Secrets" means all transferable techniques, processes,
methods of production and know-how provided to Seller by Buyer uniquely pertaining to and necessary for use in relation to the formulation, composition and production of Products.
Information which was already in the possession of Seller, but which was not obtained in connection with this transaction or past transactions with Buyer; information which is or becomes publicly
available without breach of (i) this Supply Agreement, (ii) any agreement or instrument with Buyer to which Seller is a party or beneficiary, or (iii) any duty owed Buyer by
Seller or any other subsidiary of Seller; information which is given to or made available to Seller by a third party who has a lawful right to disclose such information to Seller; or information which
is developed by Seller without reference to the Licensed Trade Secrets, shall be excluded from the definition of Licensed Trade Secrets. Buyer hereby grants to Seller, and Seller accepts from Buyer, a
non-exclusive license to employ the Licensed Trade Secrets solely for the purpose of producing the Products for sale to Buyer and designees of Buyer. 

        14.   Confidentiality.

        (a)   Seller
understands that the Licensed Trade Secrets disclosed to Seller under this Supply Agreement are secret, proprietary and of value to Buyer, which value may be
impaired if the secrecy of such information is not maintained. Seller will take reasonable security measures to preserve and protect the secrecy of the Licensed Trade Secrets. Seller agrees to hold
the Licensed Trade Secrets in confidence and not to disclose any of the Licensed Trade Secrets, either directly or indirectly, to any person or entity, including any subsidiary or affiliate of Seller
(or any director, officer, or employee thereof) during the term of this agreement or at any time within five (5) years following the expiration or termination hereof, except that Seller may
disclose the Licensed Trade Secrets to its key officers and employees to whom disclosure is necessary for the manufacture of the Products pursuant to this Supply Agreement. Seller shall exercise such
other reasonable precautions to protect and safeguard the secrecy of the Licensed Trade Secrets except that Seller shall not be required to employ any more stringent measures than it employs in
connection with protection of its own confidential information. Notwithstanding the foregoing, Seller's obligations under this Paragraph 14 shall not apply to the extent Seller is requested or
required to disclose any Licensed Trade Secrets pursuant to applicable law, regulation, rule, subpoena or other legal process.

        (b)   For
purposes of this Supply Agreement, "Confidential Information" shall mean certain proprietary, non-public information with respect to Seller's business
such as, but not limited to, all transferable techniques, processes, methods of production, formulae, recipes, know-how, trade secrets, production capabilities, devices, inventions,
equipment, and facilities disclosed or provided to Buyer by Seller in connection with this Supply Agreement. Information which was already in the possession of Buyer, but which was not obtained in
connection with this transaction or past transactions with Seller; information which is or becomes publicly available without breach of (i) this Supply Agreement, (ii) any agreement or
instrument with Seller to which Buyer is a party or beneficiary, or (iii) any duty owed Seller by Buyer or any other subsidiary, Approved Distributor or franchisee of Buyer; information which
is given to or made available to Buyer by a third party who has a lawful right
to disclose such information to Buyer; or information which is developed by Buyer without reference to the Confidential Information, shall be excluded from the definition of Confidential Information.
Buyer understands that the Confidential Information disclosed or provided to Buyer under this Supply Agreement is secret, proprietary and of value to Seller, which value may be impaired if the secrecy
of such information is not maintained. Buyer will take reasonable security measures to preserve and protect the secrecy of the Confidential Information. Buyer agrees to hold the Confidential
Information in confidence and not to disclose any of the Confidential Information, either directly or indirectly, to any person or entity, including any subsidiary, affiliate, Approved Distributor or
franchisee of Buyer (or any director, officer, or employee thereof) during the term of this agreement or at any time within five (5) years following the expiration or termination hereof, except
that Buyer may disclose the Confidential Information to its key officers and employees with an absolute need to know as contemplated under this agreement. Buyer shall exercise such other reasonable
precautions to protect and safeguard the secrecy of the Confidential Information except that Buyer shall not be required to employ any more stringent measures than it employs in connection with
protection of its own confidential information. Notwithstanding the foregoing, Buyer's obligations under this Paragraph 14 shall not apply to the extent Buyer is requested or required to
disclose any Confidential Information pursuant to applicable law, regulation, rule, subpoena or other legal process. 

        15.   Representations and Warranties of Seller. Seller represents, warrants and agrees as follows: 

        (a)   Conformity with Specifications. The Products will be manufactured strictly in accordance with the standards, procedures,
specifications, formulations and recipes from time to time reasonably established by Buyer. If at any time Buyer reasonably deems the quality of the Products to be below such standards, Buyer may so
notify Seller in writing, and Seller will immediately bring such substandard Products up to the quality standards required by this Supply Agreement. Buyer's right to oversee the quality of the
Products shall not in any way replace, supersede or substitute for the quality control required to be exercised by Seller hereunder. The exercise of any action of quality control by Buyer shall be for
its sole and exclusive benefit. If at any time Seller adapts or modifies the Products in accordance with a request from Buyer, Seller will produce and manufacture such alternate or modified Products
using the same quality control standards and procedures with respect to such Products as Seller is required to observe in the manufacture of the Products. 

        (b)   Compliance with Law. Seller will manufacture the Products in compliance with all applicable federal, state and local laws
or regulations to which Seller is subject, except that Seller shall not be liable to Buyer for any violation of any such laws or regulations if arising from the adherence by Seller to the instructions
of Buyer. 

        (c)   No Adulteration or Misbranding. The Products will not be adulterated or misbranded by Seller within the meaning of the
United States Food, Drug and Cosmetic Act, as amended (including the Pesticide and Food Additive Amendments of 1958), or within the meaning of any state law, rule, regulation, ordinance or directive
in which the definitions of adulteration or misbranding are substantially similar to such definitions appearing in the United States Food, Drug and Cosmetic Act, and shall not be an article that may
not under any such act or law be introduced into interstate or intrastate commerce.

        (d)   No Mislabeling. The Products will not be mislabeled by Seller through no fault of Buyer. 

        (e)   Handling. The Products will be handled in accordance with all Good Manufacturing Practices for human foods as specified
in Title 21 of the Code of Federal Regulations of the United States of America. 

        (f)    Disclaimer. THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES OR ASSURANCES, EXPRESS OR IMPLIED,ORAL OR
WRITTEN, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. No agent, employee, distributor, or representative of Seller has any authority to bind
Seller to any affirmation, representation or warranty, except as stated herein. 

        16.   Indemnification. Except to the extent caused by the negligent acts or omissions of Buyer, its Approved Distributors or
its franchisees, or any of their respective officers, directors, employees or agents, Seller agrees to indemnify and hold Buyer and any of its licensees and franchisees, harmless from and against any
and all demands, liabilities, damages, expenses, causes of action, suits, claims or judgments (including reasonable attorneys' fees) arising out of or in connection with (i) any damage to
property, injuries, illness or loss of life which occur on account of, or in connection with the use or consumption of Products which were defective in condition, quality or purity as of Seller's
delivery to Buyer, its Approved Distributors or its franchisees, whether such condition was discovered at the time of delivery or at a later date, and (ii) any default by Seller in the
observation or performance of its covenants and agreements contained herein. Except to the extent caused by the negligent acts or omissions of Seller, its officers, directors, employees or agents,
Buyer agrees to indemnify and hold Seller harmless from and against any and all demands, liabilities, damages, expenses, causes of actions, suits, claims or judgments (including reasonable attorneys'
fees) arising out of or in connection with (i) the sale, distribution, handling, storage or misuse of the Products after delivery to Buyer or its Approved Distributors or franchisees except to
the extent to which Buyer is indemnified by Seller under this Paragraph 16, (ii) any default by Buyer in the observance, payment or performance of is covenants and agreements contained
herein, (iii) any proceeding brought by any lawful governmental authority against the Products or Seller on account of any alleged misbranding or mislabeling of the Products by or at the
direction of Buyer, and (iv) any claim of infringement based upon Seller's use of any Buyer trademark, trade name, patent, Licensed Trade Secrets, copyright or any other similar right of Buyer
under the terms and conditions of this Supply Agreement. Any amounts payable by one party to the other pursuant to this Paragraph 16 shall be limited to actual damages, and shall not include
any amounts attributable to incidental or consequential damages. 

        17.   Termination.

        (a)   Seller's Rights. Seller, at its option, shall have the right by notice to Buyer, in addition to any other remedy
available at law, in equity or pursuant to this Supply Agreement (including but not limited to an injunction, specific performance and damages) to suspend or terminate Buyer's right to purchase, and
Seller's obligation to supply Buyer with Products and any other future right of Buyer pursuant to this Supply Agreement upon the happening and during the continuance of any one or more of the
following events: 

        (i)    Buyer
or an Approved Distributor fails to pay any amount owing to Seller hereunder within sixty (60) days from the date Buyer receives notice of a default
hereunder; 

        (ii)   Buyer
defaults in the performance of any other term, covenant, agreement or condition of this agreement, and if within sixty (60) days after notice from Seller
describing the specific activities constituting such default, Buyer shall fail to cure default, or if such default cannot be cured with the exercise of due diligence within said sixty (60) day
period, shall fail thereafter to proceed to cure the same diligently and in good faith, and in any case, to cure such default within one hundred-twenty (120) days; or

        (iii)  Buyer
is declared insolvent, bankrupt or makes an assignment for the benefit of creditors, or a receiver is appointed or any proceeding is demanded by, for or against
Buyer under any provision of the Federal Bankruptcy Act or any amendment thereto. 

        (b)   Buyer's Rights. Buyer, at its option, shall have the right by notice to Seller, in addition to any other remedy available
by law, in equity or pursuant to this Supply Agreement (including but not limited to the right to an injunction, specific performance and damages) to terminate Buyer's obligation to purchase Products
from Seller, and any other future right of Seller pursuant to this Supply Agreement, if (i) Seller defaults in the performance of any material term, covenant, agreement or condition of this
Supply Agreement, and if within sixty (60) days after notice from Buyer describing the specific activities constituting such default, Seller shall fail to cure the default, or is such default
cannot be cured with the exercise of due diligence within a sixty (60) day period, shall fail thereafter to proceed to cure the same diligently and in good faith, and in any case, to cure such
default within one hundred-twenty (120) days; or (ii) Seller is declared insolvent, bankrupt or makes an assignment for the benefit of creditors, or a receiver is appointed or any
proceeding is demanded by, for or against Seller under any provision of the Federal Bankruptcy Act or any amendment thereto. 

        (c)   Remaining Obligations. The termination of this Supply Agreement by either party pursuant to this Paragraph 17
shall not relieve (i) either party of its obligations to pay all such sums owed to the other hereunder, (ii) Seller of its obligation of confidentiality under Paragraph 14, and
(iii) either party of its respective obligations of indemnity contained herein. 

        18.   Assignment. Seller may not assign its' rights or obligations hereunder without the prior written consent of the Buyer,
which consent will not be unreasonably withheld or delayed. Subject to the foregoing limitation, all the terms and provisions of this Supply Agreement shall be binding upon, and shall inure to the
benefit of, the successors in interest or the assigns of the Seller with the same effect as is mentioned in each instance, or the party hereto is named or referred to, except that no assignment,
transfer, pledge or mortgage in violation of the provisions of this Supply Agreement shall vest any rights in any assignee, transferee, pledge or mortgagee. 

        19.   Taxes. Any duty, tax or other charge Buyer or Seller may be required to collect or pay, by reason of any federal, state,
municipal or other law now in effect or hereinafter enacted with respect to the resale, storage or delivery of the Products, will be paid by Buyer or its Approved Distributor, as the case may be. 

        20.   Relationship of the Parties. Nothing stated in this Supply Agreement shall be construed as creating the relationship of
employer and employee, franchiser and franchisee, master and servant, principal and agent, partnership or joint venture between the parties. Seller and Buyer shall each be deemed an independent
contractor at all times throughout the term of this Supply Agreement, and neither shall have the express or implied right or authority to assume or create any obligation on behalf of the other. 

        21.   Miscellaneous.

        (a)   Force Majeure. Neither party shall be deemed to be in default under this Supply Agreement because of delays or inability
to perform occasioned by war, civil disturbance, strikes, boycotts, lock-outs, shortages, transportation and communication problems, natural calamities such as fire, flood, earthquake,
storm, acts of God, governmental regulations or actions, inability to obtain labor or materials from usual sources of supply, or other means beyond the parties' control (a "Force Majeure Event"). In
case of a Force Majeure Event affecting production of Products by Seller, (i) deliveries of Products by Seller hereunder shall be allocated among Buyer and Setter's other customers on a fair
and reasonable basis and (ii) Buyer's minimum annual purchase obligation under paragraph 1 shall be reduced, for each month (or fraction thereof) that such Force Majeure Event continues,
by an amount that represents Buyer's monthly average purchases of Products during the proceeding twelve (12) months under this (or a predecessor) agreement.

        (b)   Headings. Headings in this Supply Agreement are included for convenience of reference only, and shall not constitute a
part of this agreement for any other purpose. 

        (c)   Notices. All notices provided by this Supply Agreement shall be in writing and shall be given by facsimile transmission,
with the copy thereof mailed by first class mail, postage prepaid, or by personal delivery, by one party to the other, addressed to such other party at the applicable address set forth, or to such
other address as may be given for such purpose by such other party by notice duly given hereunder. Notice shall be deemed properly given on the date of facsimile transmission or on the date of
delivery, whichever applies. 

        To
Buyer: 

Mrs. Fields'
Original Cookies, Inc.

2855 East Cottonwood Parkway

Suite 400

Salt Lake City, UT 84121

Attn: General Counsel

Fax: (801) 736-5944 

        To
Seller: 

Countryside
Baking Company, Inc.

1711 Kettering

Irvine, California 92614

Attn: Wilburn Smith, Corp. Atty.

Fax: 949-493-5170

with
copies to:

        (d)   Applicable Law. This Supply Agreement shall be construed and enforced in accordance with, and governed by the laws of the
State of Utah. 

        (e)   Integration. This Supply Agreement represents the only agreement and understanding between the parties and their
affiliates with respect to the subject matter hereof, and supersedes all prior negotiations, representations and agreements made by the parties and their affiliates with respect to the subject matter
hereof. This Supply Agreement may be amended, supplemented or changed, and any provision hereof waived, only by a written instrument making specific reference to this Supply Agreement signed by the
party against whom enforcement of any such amendment, supplement or change or waiver is sought. Waiver by either party of any breach of default hereunder by the other party shall not operate as a
waiver of any other breach or default, whether similar to or different from the breach of default waived. 

        (f)    Counterparts. This Supply Agreement may be executed simultaneously in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one of the same agreement, binding upon all parties thereto, notwithstanding that all parties are not signatories to the original or the
same counterpart. 

        (g)   Severability. In the event any provision of this Supply Agreement is found to be unenforceable or invalid, such provision
shall be severable from this Supply Agreement if it is capable of being identified with and apportioned to reciprocal consideration or to the extent it is a provision which is not essential and the
absence of which would not have prevented the parties from entering into this Supply Agreement. The unenforceability or invalidity of a provision which has been performed shall not be grounds for
invalidation of this Supply Agreement under circumstances in which the true controversy between the parties does not involve any such provision.

        (h)   Extension. This Supply Agreement may be extended beyond the term upon such terms and conditions as the parties shall
agree upon in writing. 

[Remainder
of page intentionally left blank] 

        If
the foregoing accurately reflects our agreement, please so indicate by having the original of this Supply Agreement signed in the spaces provided below and returning it to me; a copy
is enclosed for your files. 

	

Very truly yours,	
 	

 
	

MRS. FIELDS' ORIGINAL COOKIES, INC.	
 	

 
	By:	/s/ LARRY A. HODGES
	 	 
	Its:	    
	 	 
	

COUNTRYSIDE BAKING COMPANY, INC.	
 	

 
	

By:	

/s/ KENT HAYDEN
	
 	

 
	Its:	C.O.O.
	 	 

 
 

Exhibit A    
    

 
  [CONFIDENTIAL]2    
    

	2
	Confidential
treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC. 

 
 

Exhibit B    
    

[CONFIDENTIAL]3  

	3
	Confidential
treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC. 

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Exhibit 10.49

SUPPLY AGREEMENT

Exhibit A

[CONFIDENTIAL] 2

Exhibit BQuickLinks
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Exhibit 10.50    
    

        [EXECUTION COPY]  

  
 

    EXCLUSIVE SUPPLY AGREEMENT    
    

        This Exclusive Supply Agreement, dated as of November 19, 2002 (this "Agreement"), is made and entered into
by and between TCBY Systems, LLC, a Delaware limited liability company ("TCBY"), and Americana Foods Limited Partnership, a Texas limited partnership
("AF"); TCBY and AF may be referred to in this Agreement as a "Party" in the singular or
"Parties" in the plural. 

        A.    TCBY,
directly or through one or more affiliated or subsidiary entities, is engaged in the business of franchising, marketing and selling yogurt, ice cream and other
products through franchised traditional stores, non-traditional locations and packaged retail. 

        B.    AF
is engaged in the business of manufacturing, marketing and selling ice cream, frozen yogurt, yogurt mix and frozen novelty items (collectively, the
"Products"), and AF currently is the supplier of TCBY-branded products to TCBY's distributors and franchisees. 

        C.    Pursuant
to this Agreement, TCBY and AF desire to document the arrangement pursuant to which TCBY will engage AF to exclusively supply the Products as more specifically
set forth on Schedule I hereto (collectively, the "Licensed Products") from and after November 20, 2002 (the
"Effective Date") to TCBY's distributors and franchises produced by AF under license and pursuant to the terms of this Agreement. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

        1.    Conditionally Exclusive Supply of Licensed Products.    Subject to the terms and conditions of this Agreement,
TCBY agrees that it will obtain all of its requirements for the Licensed Products from AF and AF agrees to manufacture and to sell such Licensed Products. 

        A.    AF Guaranteed Amount; Pricing.    In consideration for AF's manufacture of the Licensed Products and other
services provided to TCBY under this Agreement, AF will receive a portion of the sales price of each of the Licensed Products sold by TCBY and AF hereunder (the "AF
Portion"). The AF Portion shall be equal to (i) the sum of (A) a guaranteed manufacturing fee on a per unit basis for each Licensed Product as set forth on
Schedule II plus or minus the Annual Adjustment (as defined below) (the "Guaranteed Amount") and (B) AF's ingredient, material, packaging,
delivery and shipping costs of the relevant Licensed Product (the "Manufacturing Costs"), plus or minus (ii) any cumulative adjustments to
reflect increases or decreases in the Manufacturing Costs then in effect and determined in accordance with Section 1A(i) below (the "Price
Adjustment"), plus (iii) a loss factor on a per unit basis for each Licensed Product as set forth on Schedule II
("Shrink"). For the avoidance of any ambiguity, it is the intention of AF and TCBY that during the periods between the Price Adjustments, AF will
receive the AF Portion then in effect whether or not any Manufacturing Costs may have increased or decreased during such periods. 

          (i)  Beginning
on the Effective Date, the AF Portion shall be the per unit amount set forth in Row C of Schedule II hereto, which amount reflects the sum of the
Guaranteed Amount and the Manufacturing Costs as of such date. Beginning on December 29, 2002, the Guaranteed Amount set forth on Schedule II hereto shall be reduced by  [CONFIDENTIAL]1 per gallon for all of the Licensed Products other than the Specialty Products (as defined below);
the Distributor Purchase Price (as defined below) for such Licensed Products shall not be changed and, accordingly, the TCBY Portion (as defined below) for such Licensed Products shall thereby be
increased by [CONFIDENTIAL]1 per gallon. From and after January 1, 2003, AF shall have the right to adjust
the Manufacturing Costs on a quarterly basis, by giving written notice to TCBY (in accordance with Section 10 hereof) of its intention to effect such an adjustment at least thirty calendar days
prior to the last day of each calendar quarter (the

 
"Price Adjustment Notice"). The Price Adjustment Notice shall set forth the amount of the Price Adjustment based on AF's good faith estimate of any
increase or decrease in the Manufacturing Costs at the end of such calendar period. In the Price Adjustment Notice, AF shall, in good faith, clearly and reasonably document any increases or decreases
in the Manufacturing Costs that require the Price Adjustment. AF shall use its best judgment in assessing the feasibility of passing on any Price Adjustments. Any Price Adjustments shall become
effective on the last day of the calendar quarter in which the Price Adjustment Notice is sent. 

	
1
	Confidential
treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC.

	1
	Confidential
treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC. 

         (ii)  In
addition, on each anniversary of this Agreement, the Guaranteed Amount shall be adjusted in an amount equal to any increase or decrease in the Consumer Price Index
for Dallas/Fort Worth (the "Annual Adjustment") to compensate AF for fluctuations in labor, utility and overhead costs. 

        (iii)  The
pricing of any new Products TCBY may order from AF shall be as mutually agreed upon by the Parties and Schedule II hereto shall be amended to reflect such
pricing. If the Parties are unable to agree on the pricing of new Products, then, pursuant to Section 6 of this Agreement, TCBY shall not be obligated to obtain its requirements for such
Product from AF under this Agreement. 

        (iv)  The
Parties agree to update Schedule II from time to time to reflect price adjustments in accordance with the terms of this Agreement. 

        B.    Invoicing.    

          (i)  At
the time of each shipment of Licensed Product, AF shall issue an invoice or invoices (in the form as reasonably directed by TCBY) to the relevant distributor or
sub-distributor (the "Distributors") requiring payment for the Licensed Product so shipped, at the aggregate per unit price thereof set
forth in Row A of Schedule II hereto, including the Price Adjustment then in effect. Such per unit price, as it may be so adjusted from time to time by the Price Adjustment or by TCBY in its
sole discretion (subject to agreements TCBY may have with Distributors, franchisees and other customers) is the "Distributor Purchase Price" for such
Licensed Product. As of the Effective Date, the Distributor Purchase Price includes franchise royalty and advertising payment amounts, but TCBY reserves the right to invoice directly for such amounts
in the future. The difference between the Distributor Purchase Price and the AF Portion in effect at any time for a given Licensed Product is the "TCBY
Portion" (such amount consists of the yogurt formulation charge and, if invoiced by AF, the franchise royalty and franchise advertising fund amounts) per unit of such Licensed
Product and, as of the Effective Date, is the per unit amount set forth in Row B of Schedule II hereto. AF shall have the right to require default interest and penalties for
non-payment, delayed payment or other non-compliance with invoice payment terms for a period greater than thirty calendar days. All sales shall be made FOB at AF's
manufacturing facility. 

         (ii)  The
AF Portion shall be deemed to be earned by AF and to be the sole property of AF. The TCBY Portion shall be deemed to be earned by and be the sole property of TCBY.
Any other amount received by TCBY from its distributors or subdistributors pursuant to the applicable distribution agreements or otherwise shall be the sole property of TCBY and AF

 
acknowledges and agrees that (A) AF shall have no right, title or interest therein and (B) TCBY shall have no obligation to account or otherwise report to AF with respect to any amounts
other than the AF Portion. 

        C.    Certain Collection Matters.    

        (i)    Collection for "One Invoice" Billings.    Certain invoices will require the Distributors to make payment of the
entire amount of the Distributor Purchase Price to AF, in which case AF shall act as a collection agent for TCBY and be responsible for remitting the TCBY Portion of the Distributor Purchase Price to
TCBY; provided, however, that TCBY reserves the right to collect the TCBY Portion directly from the Distributors. In acting as a collection agent for TCBY, AF shall use commercially reasonable efforts
to collect all amounts owing from the Distributors; provided, however, that, except as set forth in Section C(ii), in no event shall AF have any liability to TCBY for the TCBY Portion of any
uncollected amounts, nor shall TCBY have any liability to AF for the AF Portion of any uncollected amounts. If any amount collected from a Distributor is equal to less than the full amount due from
such Distributor at such time, then such amount shall be allocated pro rata between the AF Portion and the TCBY Portion. 

        (ii)    Collection for Specialty Products.    On or before the date that is twenty calendar days following the due
date of any invoice (the "Invoice Date") for Specialty Products (as defined below), AF shall remit the TCBY Portion owing under such invoice to TCBY,
regardless of whether AF shall have collected the entire amount of the Distributor Purchase Price owing under such invoice. If any portion of the Distributor Purchase Price owing under any invoice
remains uncollected on the date that is forty-five calendar days following the Invoice Date for such invoice, then TCBY shall remit an amount of cash equal to the TCBY Portion of such
uncollected amount (the "Claw Back Amount") to AF on such date. If AF has not received the Claw Back Amount from TCBY by the date that is fifty calendar
days following the Invoice Date, then AF shall have the right to set off the Claw Back Amount against other amounts owing to TCBY under this Agreement. If any payment in respect of a Distributor
Purchase Price is received for which a Claw Back Amount was received or set off, then AF promptly will remit the TCBY Portion of such payment to TCBY. As used in this Section C(ii), the term
"Specialty Products" means those Licensed Products set forth on Schedule I under the heading "Specialty Products." 

        (iii)  In
order to induce TCBY to enter into this Agreement, AF hereby agrees that in the event of non-payment, delayed payment or other
non-compliance with invoice payment terms for a period greater than fourteen calendar days by the Distributors, without the prior
written consent of TCBY, AF shall not have the right to cease shipping the Licensed Products to such Distributors, except that AF may cease shipping the Licensed Products to such Distributors if
(i) AF gives notice in writing to TCBY (in accordance with Section 10 hereof) of such non-payment, delayed payment or non-compliance and (ii) within ten
calendar days following AF's notification, such Distributor has not become fully current on all outstanding invoices required by their terms to by paid by such date. 

        (iv)  Each
of AF and TCBY agrees that if it receives any payment in its lockbox account or in the lockbox account to which payments have been made prior to the date of this
Agreement that should have been made to the other party's lockbox account in accordance with the foregoing provisions, it will cooperate with the other in good faith promptly to redirect such payment
so received to the lockbox account to which such payment should have been made in accordance with the foregoing provisions and, pending such payment being so redirected, will hold in trust for the
other all amounts so received on behalf of the other.

 

        D.    Raw Materials.    For each Licensed Product, TCBY will provide an annual written estimate of projected sales and
will communicate any adjustments to such estimate to AF on a monthly basis. Based on such estimate, AF will order raw materials (including actual ingredients, packaging materials, etc.) necessary for
the manufacture of such Licensed Product pursuant to this Agreement, be billed directly for the cost of such raw materials and remit payment directly to the raw materials suppliers. In the event that
reliance on the estimate results in AF ordering more raw materials than are required and such raw materials are unable to be used by AF in its manufacture of Products, then TCBY shall have the right
to purchase such raw materials from AF at AF's cost. If TCBY does not purchase such raw materials and such raw materials are unable to be used by AF in its manufacture of Products and become obsolete,
then TCBY shall reimburse AF for the cost of such obsolete raw materials. Except as set forth in the immediately preceding sentence, TCBY has no obligation with regard to AF's purchase of raw
materials required in the production of such License Product. For purposes of this Agreement, AF's ordering in reliance on the estimate of less raw materials than are required to meet TCBY's
requirements shall be referred to as a "Raw Material Shortage." 

        E.    Co-Pack Agreements.    AF shall have the right to contract with and sublicense to a third party for
the actual manufacturing of the Licensed Products (such agreements, "Co-Pack Agreements"), if such co-packer (a) is
approved in writing by TCBY (which approval will not be unreasonably withheld, conditioned or delayed) and (b) such co-packer complies with the obligations set forth in
Section 2.3 of the License Agreement (as defined below). TCBY hereby approves of all Co-Pack Agreements in effect as of the Effective Date, copies of which have been made available
to TCBY, and confirms that all of such co-packer's obligations under the License Agreement have been satisfied. AF's obligations as set forth in this Agreement shall not be altered in any
manner as a result of the existence of any Co-Pack Agreements with third party manufacturers and AF shall at all time be responsible for the conduct of its sublicensees. 

        2.    Products.    AF's right to be TCBY's exclusive supplier of Licensed Products shall be subject at all times to
the satisfaction of all of the terms and conditions set forth in this Section 2. 

        A.    Quantity.    

        (i)    Minimum.    As of the Effective Date, TCBY requires the manufacture of the quantity of each Licensed Product
set forth adjacent from such Licensed Product on Schedule I attached hereto (the "Effective Date Quantity"). TCBY agrees that its requirements
for the Licensed Products will be at least equal to 75% of the Effective Date Quantity for the term of this Agreement. In the event that TCBY's requirements for the Licensed Product shall fall below
an amount equal to 75% of the Effective Date Quantity, then AF's sole remedy shall be the right to propose new pricing for the Licensed Products by delivery to TCBY of a written notice specifying the
proposed revisions to Schedule II, if TCBY does not agree to the new pricing, then AF shall have the right to terminate the Agreement 180 days following delivery of the written notice
specifying the proposed revisions to Schedule II. 

        (ii)    Exclusive Supply.    Provided that the TCBY requirements for any Licensed Product at any time do not exceed
125% of the Effective Date Quantity, AF shall be required to supply 100% of TCBY's requirements of the Licensed Products during the term of this Agreement. If the TCBY requirements for any Licensed
Product exceed 125% at any time during the term of this Agreement, then AF shall have the option to produce such excess amount of such Licensed Product, but in no event shall be required to produce
such Licensed Product. In the event that AF elects not to produce any portion of such excess amount, then TCBY shall have the right to obtain such portion of the such excess amount from other
manufacturers.

 

        (iii)    General Interruption.    If there occurs any General Interruption (as defined below) in supply, then TCBY may
obtain any or all of its requirements from another supplier only for so long as such General Interruption is in effect, subject to such longer-term supply commitments that TCBY may have
been required to make in order to obtain the Licensed Products during such General Interruption. TCBY agrees to use it best efforts not to enter into any long-term supply arrangements with
other suppliers during a General Interruption. A "General Interruption" shall result if for any period of seven business days AF shall fail to supply at
least 95% of the Set Amount of yogurt mix. 

        (iv)    Raw Material Shortage; Force Majeure.    If, as a direct result of a Raw Material Shortage or a Force Majeure
Event (as defined below), AF shall be unable to produce any or all of TCBY's requirements for any Licensed Products, then, for so long as such Raw Material Shortage or Force Majeure Event shall
continue effect, AF shall be deemed to have not breached this Agreement. During such time, TCBY shall not have a termination right; however, if such Raw Material Shortage or Force Majeure
Event shall result in a General Interruption, then TCBY shall have the right to cover its requirements of such Licensed Products as set forth under Section 2A(iii). For the purposes of this
Section 2A(iv), a "Force Majeure Event" shall mean any fire, flood, strike, power outage, lock-out, epidemic, accident, war, act of
terrorism, shortage of customarily used transportation equipment (or suitable substitute therefor) or other causes beyond the reasonable control of AF, which prevent it from manufacturing the Licensed
Products as set forth in this Agreement. 

        B.    Quality.    

        (i)    Quality Standards.    AF shall manufacture the Licensed Products strictly in accordance with the standards,
procedures, specifications, formulations and recipes from time to time reasonably established by TCBY and shall handle and store all Raw Materials and all finished Licensed Products in accordance with
the quality control standards set forth in AF's Quality Assurance Manual (collectively, the "Quality Standards"), a copy of which has been made
available to TCBY. 

        (ii)    Compliance with Regulations.    AF agrees that the Licensed Products will be manufactured in compliance with,
and will not be adulterated or misbranded within the meaning of, the Federal Food, Drug and Cosmetic Act of 1938, or any other federal, state, foreign or local laws or regulations applicable thereto,
will not constitute an article that may not be introduced into interstate commerce and will be manufactured in substantial compliance with all applicable federal, state, foreign or local laws and
regulations applicable thereto. Unless TCBY otherwise agrees in writing, AF will destroy all inventories that are not in conformity with Food and Drug Administration rules and regulations or any
applicable federal, state, foreign and local laws. AF agrees to notify TCBY promptly of any regulatory action of which Licensee has knowledge that is taken in relation to it by any federal, state,
foreign, county or municipal authority and that relates to or affects the manufacture, storage, distribution or sale of the Licensed Products. 

        (iii)    Non-Conforming Licensed Products.    If at any time TCBY reasonably deems the quality of the
Licensed Products to be below the Quality Standards, TCBY promptly shall notify AF in writing (in accordance with Section 10) of such determination (a "Quality
Notice"). After receipt of a Quality Notice, AF shall have five business days to correct the lack of conformity identified by TCBY; provided, however, if TCBY reasonably
determines and so specifies in a Quality Notice that the lack of conformity results from contamination or poses an immediate threat to TCBY's customers, then AF shall have one business day after
receipt of such Quality Notice to correct the lack of conformity identified by TCBY. If AF fails to correct such lack of conformity within such specified period, TCBY shall have the right to

 
obtain any or all of its requirements from another supplier only for so long as such lack of conformity remains uncorrected, subject to such longer-term supply commitments that TCBY may
have been required to make in order to obtain the Licensed Products during such lack of conformity. TCBY agrees to use it best efforts not to enter into any long-term supply arrangements
with other suppliers during a lack of conformity. 

        (iv)    Product Recall and Withdrawal.    Either Party shall immediately advise and consult with the other as to any
Licensed Product recall or withdrawal considerations; provided that TCBY shall have the absolute right to recall or withdraw any Licensed Product if it determines in its sole discretion that
(A) such Licensed Product may be contaminated, (B) the use and/or distribution of such Licensed Product may pose an immediate threat to TCBY's customers or (C) if such Licensed
Product otherwise fails to conform to the Quality Standards. TCBY shall bear the cost of any recall or withdrawal unless such recall or withdraw results directly from AF's manufacture of the Licensed
Products or procurement of raw materials used in the manufacture of the Licensed Products pursuant to this Agreement, in which case AF shall bear the cost of any recall or withdrawal. 

        (v)    TCBY Inspection Rights.    TCBY and its duly authorized representatives shall have the right, during normal
business hours and upon reasonable prior notice, for the duration of this Agreement, (A) to inspect all facilities utilized by AF in connection with its manufacture of the Licensed Products
pursuant hereto and to examine the Licensed Products in process of manufacture and (B) to gain reasonable access to the records of AF relating to quality control, in each case so long as TCBY
does not unreasonably disrupt the normal operations of AF. AF shall maintain books and records regarding customers, permitted co-packers pursuant to Co-Pack Agreements and
permitted sublicensees pursuant to the License Agreement, product complaints and claims and all other particulars necessary for verifying compliance with the terms of this Agreement. AF shall make
such books and records available to TCBY and its designated representatives, from time to time, during normal business hours and upon reasonable prior notice. Such records shall be maintained by AF
and its Affiliates for a period of 24 months after termination of this Agreement; provided, however, that such books and records need not be retained longer than four years following the end of
the year to which such books and records relate. TCBY shall be entitled to make copies, at its expense, of any such records. 

        C.    License.    Concurrently with the execution of this Agreement, TCBY Enterprises, Inc.
("Enterprises"), TCBY and AF entered into that certain Trademark License Agreement, dated as of even date herewith (the "License
Agreement"), pursuant to which, among other things, AF was granted a license from Enterprises and TCBY to utilize the TCBY trademarks, service marks and trade names specified
therein in the manufacture of the Licensed Products. 

        D.    Compliance with Laws.    AF will manufacture the Licensed Products in compliance with all applicable federal,
state and local laws or regulations to which AF is subject. 

        E.    Insurance.    At all times during the term of this Agreement, AF shall maintain appropriate insurance at
commercially reasonable levels of coverage to cover all of its obligations under this Agreement, including, without limitation, general liability insurance and malicious product tampering, product
liability, and product recall insurance with respect to the manufacture and sale of the Licensed Products, in each case with minimum coverage of $1,000,000 per occurrence. If any of the foregoing
types of insurance are not obtainable generally in the market (it being understood that any increase in the cost of coverage shall not deem such type of insurance unobtainable), then the absence of
such insurance coverage shall not constitute a breach of this Section 2E.

 

        3.    Term.    The term of this Agreement shall be for five years commencing on the Effective Date (the
"Initial Term") and shall automatically renew thereafter for an additional five years (the "Renewal
Term"). Effective upon the commencement of the Renewal Term, the Guaranteed Amount and other pricing terms described in Section 1 of this Agreement shall be reset to
then-current market levels as mutually agreed by the Parties. The Parties agree to use their commercially reasonable efforts to negotiate and agree on the adjustment of the Guaranteed
Amount and the pricing terms to reflect then-current market pricing at least sixty calendar days prior to the expiration of the Initial Term. If no such agreement is reached by the day
thirty days prior to the expiration of the Initial Term, then the adjustment shall be decided by binding arbitration in accordance with the applicable rules of the American Arbitration Association
then in effect unless the Parties mutually agree otherwise. Any such arbitration shall be held in Salt Lake City, Utah. Judgment on the decision rendered in arbitration may be entered in any court
having jurisdiction thereof. 

        4.    Termination.    

        A.    TCBY,
at its option, shall have the right, in addition to any other remedy available at law or in equity, to terminate this Agreement upon the occurrence of any one or
more of the following events: 

          (i)  automatically
without notice to AF, in the event the License Agreement is terminated in accordance with its terms; 

         (ii)  AF
defaults in the performance of any material term, covenant, agreement or condition of this Agreement, and, if within thirty calendar days after notice from TCBY
describing the specific activities or failures constituting such default, AF shall fail to cure the default, or if such default cannot be cured with the exercise of due diligence within a thirty
calendar days period, shall fail thereafter to proceed to cure the same diligently and in good faith, and in any case, to cure such default within sixty calendar days; provided, that notwithstanding
the foregoing, during such cure periods (1) TCBY shall have the right to cover defaults as specified in Sections 2A and 2B and (2) TCBY may terminate this Agreement for a continuing
breach by AF of the License Agreement without regard to notice or cure; 

        (iii)  on
more than three separate occasions in any twelve-month period, (A) the same quality violation or nonconformity has occurred under Section 2B and
(B) on each occasion, TCBY has delivered a Quality Notice to AF describing the same quality violation or nonconformity, whether or not AF has cured such quality violation or nonconformity
within the specified cure period; 

        (iv)  in
the event of any substantial continuing negative publicity in a reputable national media publication or news service concerning the quality of the Licensed Products
produced by AF, which publicity (A) reports a material quality violation or material nonconformity related to contamination of such Licensed Products or that materially threatens the health and
safety of consumers of such Licensed Products, which material quality violation or material nonconformity actually has occurred under Section 2B; and (B) which material quality violation
or material nonconformity the Board of Directors of TCBY by written resolution reasonably has deemed to have a material adverse effect upon the reputation of TCBY and/or AF or to materially threaten
TCBY's ability to maintain and preserve its business; or 

         (v)  by
mutual written agreement of the Parties.

 

        B.    AF,
at its option, shall have the right by notice to TCBY, in addition to any other remedy available at law or in equity, to terminate this Agreement, upon the occurrence
of any one or more of the following events: 

          (i)  if
TCBY defaults in the performance of any material term, covenant, agreement or condition of this Agreement, and, if within thirty calendar days after notice from AF
describing the specific activities or failures constituting such default, TCBY shall fail to cure the default, or if such default cannot be cured with the exercise of due diligence within a thirty
calendar day period, shall fail thereafter to proceed to cure the same diligently and in good faith and in any case, to cure such default within sixty calendar days; or 

         (ii)  by
mutual written agreement of the Parties. 

        5.    Non-Exclusive Trademark License.    The License Agreement, and all the terms and conditions thereof,
are hereby incorporated herein as if fully set forth herein. 

        6.    TCBY Licensed Products.    For the avoidance of doubt, the Parties hereby agree that the term "Licensed
Products" as used in this Agreement shall not include any Products other than the TCBY-branded Products listed on Schedule I hereto. The Parties acknowledge that TCBY may obtain its
requirements of, and AF may produce, other Products, including, without limitation, production of Mrs. Fields-branded Products and other TCBY-branded Products, pursuant to other
agreements. 

        7.    Change of Control.    AF shall provide written notice to TCBY (in accordance with Section 10) at least
thirty calendar days prior to any Change of Control (as defined below). Upon receipt of such notice, TCBY shall have ten business days to approve such Change of Control, which approval shall not be
unreasonably withheld. If TCBY provides written notice to AF that it reasonably withholds its approval of such Change of Control, which written notice must set forth such reasons, and such Change of
Control actually is consummated, then TCBY shall have the right to terminate this Agreement 180 calendar days following the date of the consummation of such Change of Control. As used in this
Section 7, "Change of Control" shall mean the replacement of the general partner of AF with a person who is not controlled by an affiliate of
Capricorn Investors III, L.P. or Herbert S. Winokur, Jr. 

        8.    Assignment.    Neither Party shall voluntarily or involuntarily, directly or indirectly, sell, assign,
hypothecate, pledge or otherwise transfer or dispose of all or any portion of its interest in this Agreement to any third party without the prior written consent of the other Party. 

        9.    Amendment.    This Agreement may be amended from time to time only by a writing executed by AF and TCBY. 

        10.    Notices.    All notices, requests, demands, and other communications hereunder by which either party is to be
legally bound shall be in writing and shall be given (i) by Federal Express (or other established express delivery service which maintains delivery records), (ii) by hand delivery,
(iii) or by facsimile transmission, to the Parties at addresses set forth on the signature page to this Agreement or at such other address give by like notice. Notices shall be deemed effective
upon dispatch. 

        11.    Entire Agreement.    This Agreement and the License Agreement constitute the entire agreement between the
Parties with respect to the subject matter hereof, and supersede all prior agreements and negotiations between the Parties with respect thereto. 

        12.    Governing Law.    This Agreement shall be enforced, governed by and construed in accordance with the laws of
the State of New York without application of choice of law principles. 

[Remainder of Page Intentionally Left Blank] 

 

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

	

 	
 	

TCBY SYSTEMS, LLC
	

 	
 	

By:	
 	

/s/ Michael R. Ward
	 	 	Name: Michael R. Ward

Title: Senior Vice President
	

 	
 	

Address:

2855 East Cottonwood Parkway, Suite 400

Salt Lake City, Utah 84121-7050

Attention: General Counsel

Fax: (801) 736- 5944
	

 	
 	

AMERICANA FOODS LIMITED PARTNERSHIP

By: AF Sub Corp., as its General Partner
	

 	
 	

By:	
 	

/s/ Dudley C. Mecum
	 	 	Name: Dudley C. Mecum

Title: President
	

 	
 	

Address:

3333 Dan Morton

Dallas, Texas 75236

Attention: President

Fax: (972) 709-6625

with copy to:

AF Sub Corp. and Americana Foods Corp.

c/o Capricorn Investors III, L.P.

30 East Elm Street

Greenwich, Connecticut 06830

Attention: Herbert S. Winokur, Jr.; Dudley C. Mecum

Fax: (203) 861-6671

Schedule I  

[CONFIDENTIAL]2  

2  Confidential
treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC. 

   Schedule II  

[CONFIDENTIAL]3  

3  Confidential
treatment has been requested for the redacted portion. The confidential, redacted portions have been filed separately with the SEC. 

QuickLinks

Exhibit 10.50

EXCLUSIVE SUPPLY AGREEMENT

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