Document:

Prepared by R.R. Donnelley Financial -- SPONSORED RESEARCH AGREEMENT

 Exhibit 10.90 
  
 Amendment No. 7 to 
 SPONSORED RESEARCH AGREEMENT 
  
 AMENDMENT TO SPONSORED RESEARCH AGREEMENT, effective June 30, 2002, by and between The University of North Carolina at Chapel Hill, having an address at 308 Bynum Hall, Chapel Hill, North
Carolina (the “University”), and Incara Cell Technologies, Inc. (formerly Renaissance Cell Technologies, Inc.), a corporation existing under the laws of the State of Delaware, and having an address P.O. Box 14287, Research Triangle Park,
North Carolina 27709 (the “Sponsor”). 
  
 WITNESSETH: 
  

WHEREAS, University and Sponsor entered into that certain Sponsored Research Agreement dated July 1, 1997 (the “Research Agreement”); 
  
 WHEREAS, through Amendment No. 2 to the Research Agreement, effective June 22, 1999, the parties agreed (i) to extend the Research Agreement, as
previously amended, an additional year for the period of July 1, 1999 through June 30, 2000, (ii) that funds designated in the first funding period for building upfit may instead be applied by the University toward the direct and indirect costs
associated with the extended period agreed upon therein, and (iii) to modify the scope of research as described on Amendment No. 2; 
  
 WHEREAS, through Amendment No. 3 to the Research Agreement, effective July 1, 2000, the parties agreed to a second extension of the Research Agreement, as previously amended, for the period of July 1, 2000 through June 30,
2001; 
  
 WHEREAS, the Research Agreement, as previously amended, was amended to include the work of Dr. Edward L. LeCluyse, as
detailed on the Letter of Amendment between Sponsor and University dated February 5, 2001 (“Amendment No. 4”); 
  
 WHEREAS,
through Amendment No. 5 to the Research Agreement, effective June 30, 2001, the parties agreed to a third extension of the Research Agreement, as previously amended, with respect to research conducted under the direction of or in the laboratory of
Dr. Lola Reid (the “Reid Project”) for the period of July 1, 2001 through June 30, 2002; 
  
 WHEREAS, through Amendment No.
6 to the Research Agreement, effective December 31, 2001, the parties agreed to an extension of the Research Agreement, as previously amended, with respect to research conducted under the direction of or in the laboratory of Dr. Edward L. LeCluyse
(the “LeCluyse Project”) for the period of January 1, 2002 through December 31, 2002; 
  
 WHEREAS, the fifth year (third
extension) of the Research Agreement with respect to the Reid Project is scheduled to conclude on June 30, 2002, as described in Amendment No. 5; and 
  
 WHEREAS, Sponsor and University wish to renew Sponsor’s support of the Reid Project for the year July 1, 2002 to June 30, 2003, as detailed in this Amendment No. 7. 

  
 NOW, THEREFORE, the aforementioned parties hereto agree to the following: 

 

	1.
	 
	The scope of work to be conducted as part of the Reid Project from July 1, 2002 to June 30, 2003 shall include (i) the research as set forth on Exhibit A
to the Research Agreement, (ii) the additional activities as set forth on the previous Amendments extending the Reid Project, and (iii) the research described on Exhibit A to this Amendment No. 7, attached hereto and incorporated by this
reference (the “Scope of Research”), and shall be subject to and governed by all the terms and conditions of the Research Agreement, as amended. 
 

  

	2.
	 
	The Sponsor shall continue to provide funding for the Reid Project in an amount of no less than $300,000.00 for the period July 1, 2002 through June 30, 2003,
including the application of indirect costs at the rate of 45.5%, as detailed on Exhibit B, attached hereto and incorporated by this reference (the “Budget”). The funding will be made in equal quarterly payments. This funding shall
be in addition to and independent of funding for the LeCluyse Project. 
 

  

	3.
	 
	This Amendment No. 7, including the Scope of Research and Budget, shall only modify the terms of the Amended Agreement with respect to the Reid Project and
shall not amend, modify, or have any other effect on the LeCluyse Project or the terms thereof. Following execution of this Amendment No. 7, the Research Agreement, as amended, shall continue to govern the LeCluyse Project . 

  

	4.
	 
	All other provisions of the Research Agreement, as amended, shall continue in full force and effect. 
 

  
 [Signature page to follow] 

  
 IN WITNESS WHEREOF, the aforementioned parties hereto have executed this
Agreement by their duly authorized officers or representatives. 
  
 
	  	 	  	 	  
	 THE UNIVERSITY OF NORTH
CAROLINA AT CHAPEL HILL
 	 	  	 	 SPONSOR
 
	 
	 By:
 	 	  	 	  	 	 By:
 	 	  
	  	 	 
	 	  	 	  	 	 

	  	 	 Robert P. Lowman, Ph. D.
 Associate Vice Provost
 	 	  	 	  	 	 Clayton Duncan
 Chief Executive
Officer
 
	  	 	  	 	  	 	  	 	  
	 Date:
 	 	  	 	  	 	 Date:
 	 	  
	  	 	 
	 	  	 	  	 	 

	 
	  	 	  	 	  	 	  
	 
	 Consented to by Principal Investigator:
 	 	  	 	  	 	  
	 
	 By:
 	 	  	 	  	 	  	 	  
	  	 	 
	 	  	 	  	 	  
	  	 	 Lola M. Reid
 Professor, Cell
& Molecular Physiology
 	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	 Date:<PAGE>
[ ** ] = This mark indicates portions of the text which have been omitted and
filed separately with the Securities and Exchange Commission pursuant to a
request for confidential treatment of such omitted text in accordance with Rule
406 of the Securities Act of 1933, as amended.

                              AMENDED AND RESTATED

                          DISTRIBUTOR SERVICE AGREEMENT

         THIS AMENDED AND RESTATED DISTRIBUTOR SERVICE AGREEMENT (the
"Distributor Service Agreement"), dated as of June 18, 2002, by and between
COSI, INC., a Delaware corporation (the "Company"), and MAINES PAPER & FOOD
SERVICE, INC., a Delaware corporation ("Distributor").

         WHEREAS, the Company and Distributor entered into a Distributor Service
Agreement, effective as of January 7, 2002 (the "Initial Agreement") which
resulted in shared benefits, rewards and risks in a positively managed business
environment and designated Distributor as an exclusive distributor authorized to
provide Distribution Services to the Company's Restaurants in the Territory; and

         WHEREAS, the Company and Distributor desire to amend certain provisions
of the Initial Agreement and to restate the Initial Agreement;

         NOW, THEREFORE, in consideration of the mutual covenants contained in
this Distributor Service Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and Distributor hereby agree as follows:

1.       DESIGNATION OF EXCLUSIVE DISTRIBUTOR

         1.1.     The Company designates Distributor as its exclusive
                  distributor of Products to Restaurants in the Territory and
                  the Company shall not designate or allow another distributor
                  within the Territory or authorize or permit a distributor
                  located outside the Territory to accept orders from
                  Restaurants located within the Territory.

         1.2.     Subject to Distributors normal credit policies and standard
                  rules and regulations established by Distributor, Distributor
                  shall accept orders to purchase any Products, from any
                  Restaurant in the Territory.

         1.3.     The Company shall cause each Restaurant in the Territory to
                  order from Distributor not less than eighty percent (80%) of
                  all Products maintained in stock by Distributor and required
                  in the operation of the Restaurant.

2.       PRICE

         2.1.     The pricing for services provided pursuant to this Distributor
                  Service Agreement shall be as set forth on Exhibit 2.1.
<PAGE>

3.       PRICE VERIFICATION- Throughout the term of this agreement the Company
         will be allowed semi-annual audit privileges which will include up to
         thirty (30) items maximum which can be reviewed thirteen (13) weeks
         back with thirty (30) days written notice to Distributor. Any
         discrepancies, which would be mutually agreed upon by the Company and
         Distributor, would be either credited or invoiced to the Company
         whichever is applicable. If pricing errors are discovered in twenty
         percent of the items verified, the Company has the right to expand the
         audit to include all items.

4.       SERVICE OBLIGATIONS OF DISTRIBUTOR

         4.1.     Products covered by this Distributor Service Agreement are
                  listed in Exhibit 4.1.

         4.2.     Products will include Distributor's Brand, National Brand, and
                  other products as specified by the Company and stocked by
                  Distributor. Proprietary and the Company specified products
                  not to exceed 250 items.

         4.3.     Account Executive- Distributor will assign an Account
                  Executive and Customer Service Representatives to service the
                  Company's accounts. The Account Executive and the Customer
                  Service Representatives will maintain contact with the
                  Company's designated representatives on a monthly basis to
                  review service requirements.

         4.4.     Delivery Parameters

                  4.4.1    Two Deliveries Per Week- Each Restaurant will be
                           serviced by Distributor with two deliveries per week
                           utilizing one Driver.

                  4.4.2    Delivery Windows- Key drop schedules will be
                           developed for the Restaurants. Delivery windows will
                           be 10:00 p.m. to 11:00 a.m. and 2:00 p.m. to 5:00
                           p.m. seven (7) days per week, with the exception of
                           Restaurants that are closed for business on the day
                           of delivery.

                  4.4.3    Order Placement- Restaurants' orders are to be placed
                           not later than 8:00 a.m. the day of departure.
                           Add-ons may be accepted until 9:00 a.m. on the day of
                           departure.

                  4.4.4    Delivery Schedule Changes- Distributor reserves the
                           right to make changes to existing or proposed
                           delivery schedules by providing fourteen (14) days
                           notice to the designated representatives of the
                           Company.

                  4.4.5    Locks, Keys and Alarms- Lock, key and alarm changes
                           will be communicated and key provided via overnight
                           delivery, at the Company's expense, to Distributor at
                           least forty-eight (48) hours prior to dispatch.

         4.5.     Damages, Shortages and Errors on Delivery- Any damage,
                  shortage, or error shall be noted on the invoice and signed by
                  Restaurant's receiving personnel. Distributor utilizes
                  scanning devices that guarantee delivery of items. Once
                  scanned by driver-no credits issued. Credit for damages,
                  shorts, or errors will be

                                      -2-
<PAGE>

                  noted by Distributors delivery personnel and will be final.
                  Notice of shortages on key-drop deliveries need to be made by
                  Noon on the same day as delivery. All reasonable efforts will
                  be expended in determining the root cause of the damage,
                  shortage, or error. If the error is determined to be that of
                  Distributor and the item is on the "Critical Item List" (see
                  "Exhibit 19.10"), Distributor will be responsible for the cost
                  of replenishing that Product to the respective location the
                  next day. If the situation is determined to be the error of
                  the Company's personnel, the Company will be responsible for
                  replenishing that product at a mutually agreed-upon cost, with
                  authorization by the Company's designated representative if
                  delivery cost exceeds [ ** ]. For purchases that are returned
                  for credit that are determined to be the result of a
                  Restaurant's excessive ordering or other ordering errors, a [
                  ** ] restocking fee will be assessed. The restocking fee is [
                  ** ] of total dollar value returned.

         4.6.     Shipment of Products Not Approved by the Company- Any products
                  not approved by the Company's designated representative cannot
                  be sold to the individual Restaurants by Distributor.

         4.7.     Distributor's Current Vendor Base- The Company agrees to
                  review Distributor's current vendor base for future product
                  needs or product changes where possible and mutually agreed
                  upon by both parties.

         4.8.     Inventory- Distributor will inventory and deliver the
                  Company's items as requested utilizing a four-week lead time
                  on new items and an eight-week lead time on deleted items.
                  Inventory of these items shall be sufficient to achieve the
                  fill rate indicated on "Exhibit 5.22", which will be regulated
                  by Distributor. If any Product requested by the Company
                  results in greater than four weeks on-hand inventory a
                  definitive action plan will be provided to Distributor by the
                  Company's designated representative. The written plan will
                  detail the actions that will be taken to lower the level to a
                  maximum of four weeks supply within twenty-one days of
                  notification. For inventory that remains on-hand thirty days
                  after notification, Distributor will charge the Company a
                  storage fee of [ ** ] per month.

         4.9.     Electronic Order Entry- Distributor requires electronic order
                  entry by all Restaurants.

                  4.9.1    Distributor agrees to provides interface programming
                           between Distributor and the Company's current
                           inventory management system in order to place the
                           Company's orders electronically. Distributor cannot
                           guarantee compatibility with a system that the
                           Company may utilize in the future.

                  4.9.2    Distributor can accept orders by telephone. Effective
                           sixty (60) days from first deliveries to Restaurants,
                           an additional [ ** ] charge will be added to each
                           order placed by telephone.

                                      -3-
<PAGE>

5.       COMPLIANCE WITH PERFORMANCE STANDARDS AND OTHER REQUIREMENTS

         5.1.     Distributor shall comply with the Performance Standards set
                  forth in Exhibit 5.22.

6.       PROMOTIONAL ITEMS AND CONFLICTING INSTRUCTIONS- Distributor shall
         follow all written directions from the Company's designated
         representative with respect to the distribution and sale of promotional
         items and new products.

7.       HIDDEN PAYMENTS; GRATUITIES- Distributor performs value-added services
         for suppliers of Products, beyond procurement activities typically
         provided. These value-added services include regional and national
         marketing, freight management, consolidated warehousing distribution,
         quality assurance and performance-based product marketing. Distributor
         may recover the costs of providing these services and may also be
         compensated for these services and consider this compensation to be
         earned income. Receipt of such cost recovery of earned income will not
         reduce the cost of Products to the customers and shall not diminish
         Distributors commitment to provide competitive prices to its customers.
         Accordingly, Distributor shall be entitled to retain such earned income
         without providing any accounting to or offset in favor of the Company
         for the amounts thereof.

8.       GENERAL INVENTORY AND ORDER PLACEMENT

         8.1.     If Distributor is out-of-stock with respect to any Product,
                  any affected Restaurant shall be notified regarding
                  out-of-stocks and the expected period of duration of the
                  out-of-stock prior to making the next scheduled deliveries.

         8.2.     Restaurants shall identify authorized representatives
                  responsible for developing and releasing orders to
                  Distributor.

         8.3.     Distributor shall establish internal practices that reasonably
                  ensure the achievement of the Performance Standards in
                  processing and shipping order to Restaurants.

         8.4.     Distributor will meet the expectations and requirements
                  outlined in "Exhibit 5.22".

                                      -4-
<PAGE>

9.       SUBSTITUTIONS- Should a substitution be necessary and approved by the
         Company, Distributor will ship a comparable product at a sell price
         calculated using the same Fee Per Unit as on the original product.
         Substitutions caused by the fault of the Distributor will not be
         charged a higher price per unit (pound or ounce) than the original
         product.

10.      EMERGENCY- PRODUCT ALLOCATION- In the event of a shortage of Approved
         Product, as determined in a written notice to Distributor by the
         Company's designated representative, Distributor shall allocate sales
         of the Approved Product in short supply among the Restaurants based
         upon the written instructions from the Company's designated
         representative.

11.      WITHDRAWALS AND RECALLS

         11.1.    In the event it is deemed necessary by either the Company, in
                  its discretion, or any of the Approved Suppliers, to withdraw
                  or recall from Distributor and/or from the Company's System
                  any quantity of any Products (a) as a result of failure of
                  such Products to satisfy the Company's Specifications, (b) for
                  any other reason bearing on quality and/or safety of such
                  Products, or (c) to prevent, minimize or otherwise protect
                  against an actual or perceived threat to the Company's brand,
                  Distributor shall comply diligently with all Product
                  withdrawal/recall procedures then in effect. See "Exhibit
                  11.1" "Product Withdrawals/ Recall".

         11.2.    Distributor shall not be required to bear the costs associated
                  with the withdrawal or recall of any Product unless such
                  withdrawal or recall is the result of the negligence or
                  intentional tortious acts of Distributor. The Company shall
                  cause the Approved Supplier(s) in question to reimburse
                  Distributor for such costs.

12.      CONFIDENTIALITY

         12.1.    Without the prior written consent of the other party hereto,
                  neither Distributor nor the Company will disclose to any other
                  person any Confidential Information; provided, however, that
                  either party (the "Disclosing Party") may make such disclosure
                  as is required by law, regulation (including stock exchange or
                  similar regulations), administrative order or judicial or
                  administrative process, which requirement the Disclosing Party
                  has been advised by legal counsel (in which event, to the
                  extent practicable, the Disclosing Party will consult with,
                  and exercise in good faith all reasonable efforts to mutually
                  agree with, the non-disclosing party regarding the nature,
                  extent and form of such disclosure). The term "person" as used
                  in this section shall be interpreted broadly to include the
                  media and any corporation, partnership, group, individual or
                  other entity.

13.      INDEMNIFICATION

         13.1.    The Company and Distributor shall each defend, indemnify and
                  hold harmless the other party including, its officers,
                  directors, employees, agents, parents, subsidiaries,
                  affiliates and members (collectively "Indemnitees"), of, from
                  and against any and all claims, demands, actions, causes of
                  action, losses, liabilities, damages, costs and expenses,
                  including, without limitation, reasonable attorney's

                                      -5-
<PAGE>
                  fees and costs and expenses (all of the foregoing collectively
                  referred to as "Damages"), caused by one party to the other
                  and based upon or arising out of

                  13.1.1   any breach of this Distributor Service Agreement by
                           it;

                  13.1.2   any negligent act or omission of it in connection
                           with provision of Distribution Services which results
                           in any property damage or personal injury, including,
                           but not limited to, illness or death;

                  13.1.3   any negligent act or omission of it in connection
                           with the purchase, receipt, storage, shipment,
                           delivery, resale or consumption of any Product,

                  provided, however, that Distributor or the Company shall not
                  be liable for Damages to an Indemnitee to the extent such
                  Damages result from the negligence, recklessness or misconduct
                  of such Indemnitee- NOR, EXCEPT AS OTHERWISE PROVIDED, SHALL
                  DISTRIBUTOR OR THE COMPANY, UNDER ANY CIRCUMSTANCES BE LIABLE
                  TO ANY INDEMNITEE FOR ANY CONSEQUENTIAL OR INDIRECT DAMAGES,
                  INCLUDING WITHOUT LIMITATION, ANY CLAIM FOR LOST PROFITS OR
                  ANTICIPATED PROFITS.

14.      INSURANCE- The Company and Distributor shall maintain comprehensive
         liability insurance coverage during the entire term of this Distributor
         Service Agreement, with minimum coverage amounts of $2,000,000 per
         occurrence and $20,000,000 aggregate, including product liability
         coverage for damage, injury and/or death to persons and for damage
         and/or injury to property, and each shall provide to the other upon
         request written evidence of such coverage.

15.      TERM AND COMMENCEMENT

         15.1.    This Distributor Service Agreement shall become effective as
                  of June 18, 2002 and shall expire on January 7, 2005, unless
                  otherwise terminated or extended pursuant to the terms of this
                  Distributor Service Agreement.

         15.2.    Distributor and the Company may seek to extend this agreement
                  for periods of three (3) years each by giving written notice
                  of such extension on or before Six (6) months prior to the
                  expiration of the initial or any extended term hereof. Any
                  such extension shall be mutually agreed upon between
                  Distributor and the Company.

16.      CANCELLATION, TERMINATION, EVENTS OF DEFAULT

         16.1.    A party may terminate this agreement upon the following Events
                  of Default:

                  (a)      If the other party fails or refuses to comply with
                           any of its material obligations under this
                           Distributor Service Agreement after having been given
                           written notice of the breach of any provision and
                           having failed to cure such breach within thirty (30)
                           days, or

                                      -6-
<PAGE>

                  (b)      The other party becomes bankrupt, insolvent or
                           otherwise unable to pay its obligations as they
                           become due.

17.      EFFECT OF END OF THIS DISTRIBUTOR SERVICE AGREEMENT- In the event of
         the cancellation, termination, or expiration (hereinafter collectively
         the "end") of this Distributor Service Agreement, the Company shall
         purchase or shall cause a third party to purchase Distributor's
         inventory of Approved Products at Distributor's Landed Cost plus a
         reasonable transfer and warehouse handling charge not to exceed [ ** ]
         of the Fee Per Unit in effect as of the date of the end (the "Charge").
         The Company will purchase or cause to be purchased all perishable
         Approved Products within seven (7) days of the end of this Distributor
         Service Agreement and all frozen and dry Approved Products within
         fifteen (15) days of the end of this Distributor Service Agreement.

18.      DEFINITIONS

         18.1.    All capitalized terms that have not been otherwise defined
                  above shall have the meanings designated, below.

         18.2.    "APPROVED BRANDS LIST" means one or more documents issued by
                  the Company from time to time listing all Approved Suppliers,
                  and Approved Products.

         18.3.    "APPROVED SUPPLIER" means a supplier approved by the Company
                  to provide Approved Products to the Company's Restaurants.

         18.4.    "APPROVED PRODUCTS" means those products, including, without
                  limitation, food, packaging, and equipment (whether permanent
                  or promotional in nature), that (a) meet the Company's
                  Specifications, and (b) are produced by Approved Suppliers,
                  and (c) which are listed in the Approved Brands List, all of
                  which are purchased by the Company's Restaurants.

         18.5.    "ANCILLARY ITEMS" means incidental items used in the operation
                  of a Restaurant which do not need to be approved by the
                  Company such as pens, pencils, note pads, register tape and
                  certain smallware items.

         18.6.    "COMPANY'S SPECIFICATIONS" means the product specifications
                  developed by the Company for food products, packaging
                  products, equipment, uniforms and any other materials, systems
                  or services used in the construction of and/or ongoing
                  operation of Restaurants and/or the sale of products to
                  consumers from the Restaurants.

         18.7.    "COMPANY'S SYSTEM" means the system of Restaurants (either
                  owned by the Company or franchised/licensed by the Company)
                  operating in the United States, including the restaurant
                  concepts listed in Exhibit 18.7 the Company's and any other
                  restaurant concepts acquired or developed and operated by the
                  Company.

         18.8.    "CONFIDENTIAL INFORMATION" means all information communicated
                  by the Company to Distributor or by Distributor to the Company
                  which is considered by the Company or Distributor to be
                  confidential, including, but not limited to: the

                                      -7-
<PAGE>
                  terms of this Distributor Service Agreement; all information
                  as to quantity, cost and prices charged by Approved Suppliers
                  for Products; the Company's Specifications; all information
                  relating to marketing, new products, sales volume and data
                  regarding the operations of the Company, the Company's System
                  and/or the Restaurants; and other information identified or
                  reasonably identifiable as confidential or proprietary.
                  Confidential information includes information in any manner
                  related to Distributor's compliance or failure to comply with
                  or meet the Performance Standards.

         18.9.    "CRITICAL ITEMS LIST" means the top twenty-five items as
                  determined by the Company (see Exhibit 18.9).

         18.10.   "DAMAGED PRODUCT" means any Product which has been damaged or
                  is otherwise unfit for distribution to the Company System.

         18.11.   "DISTRIBUTION SERVICES" means the receiving, inspecting,
                  handling, storage, shipment and distribution of all or some
                  Products by Distributor and/or Approved Suppliers to
                  Restaurants, and all related services including, without
                  limitation, those more particularly described in this
                  Distributor Service Agreement.

         18.12.   "DISTRIBUTOR SERVICE AGREEMENT" means this Distributor Service
                  Agreement, together with all amendments and exhibits hereto.

         18.13.   "EFFECTIVE DATE" means the date first set forth on page 1 of
                  this Distributor Service Agreement.

         18.14.   "EVENT OF DEFAULT" means events of default described
                  inSection15 of this Distributor Service Agreement.

         18.15.   "FACILITY" means one or more of Distributor's distribution
                  facilities at which Products will be handled and stored and
                  from which Products will be delivered to Restaurants.

         18.16.   "FRANCHISE AGREEMENT" means a franchise agreement or license
                  agreement by and between the Company and a Franchisee pursuant
                  to which, among other things, the Company has granted such
                  Franchisee a license to use the Company trademarks.

         18.17.   "FRANCHISEES" means any and all Company franchisees operating
                  under a valid Franchise Agreement.

         18.18.   "FREIGHT" means, in those cases where the invoice cost to
                  Distributor is not a delivered cost, applicable freight
                  charges will be added to invoice cost. Freight charges may
                  include common or contract carrier charges by the product
                  vendor or by Distributor's fleet back-haul, or by charges
                  billed by third party carriers. Applicable freight for any
                  product will not exceed the rate charged by nationally
                  recognized carriers operating in the same market for the same
                  type of freight

                                      -8-
<PAGE>
                  service. Earned back-haul efficiencies are retained by MAINES
                  and do not reduce product cost.

         18.19.   "INVOICED F.O.B. PRICE" means the invoice F.O.B. Price as
                  established pursuant to and as defined in a supply agreement
                  by and between the Company and an Approved Supplier with
                  respect to a particular Approved Product.

         18.20.   "LANDED COST" means the Company's Approved Suppliers Invoiced
                  F.O.B. price plus applicable Freight, as provided for in the
                  definition of Freight.

         18.21.   "OTHER PRODUCTS" means all products, except for Approved
                  Products.

         18.22.   "PERFORMANCE STANDARDS" means the performance standards set
                  forth on "Exhibit 5.22" of this Distributor Service Agreement.

         18.23.   "PRODUCTS" means Approved Products and does not include
                  Ancillary Items or Other Products.

         18.24.   "RESTAURANTS" means the Company's restaurants (owned and/or
                  franchised).

         18.25.   "TERM" means the term of this Distributor Service Agreement as
                  described in Section 16.

         18.26.   "TERRITORY" means that geographic territory as set forth on
                  "Exhibit 18.26".

19.      MISCELLANEOUS PROVISIONS

         19.1.    Entire Agreement- This Distributor Service Agreement
                  supersedes all prior negotiations, discussions,
                  representations, understandings and agreements between the
                  parties with respect to the matters contained herein, and
                  contains the only agreement between the parties hereto with
                  respect to the transactions contemplated by this Distributor
                  Service Agreement.

         19.2.    Amendments Modifications and Waiver- This Distributor Service
                  Agreement may not be waived, modified or amended except by a
                  written instrument executed by authorized representatives of
                  both parties. A waiver on one occasion shall not be a waiver
                  of the same or any other breach on any other occasion. No
                  course of dealing or performance by any party, and no failure,
                  omission, delay or forbearance by any party, in whole or in
                  part, in exercising any right, power, benefit or remedy shall
                  constitute a waiver of such right, power, benefit or remedy.

         19.3.    Cumulative Remedies- No remedy conferred upon either party is
                  intended to be exclusive of any other remedy, and each and
                  every such remedy shall be in addition to, and not in
                  limitation of or substitution for, every remedy available at
                  law or in equity or by statute or otherwise.

                                      -9-
<PAGE>

         19.4.    Headings- The headings in this Distributor Service Agreement
                  are for convenience of reference and are not a part of this
                  Distributor Service Agreement and shall not affect the meaning
                  or construction of any of its provisions.

         19.5.    Governing Law- This Distributor Service Agreement shall become
                  valid when executed and accepted by the Company. The parties
                  agree that it shall be deemed made and entered into in the
                  State of New York and shall be governed and construed in
                  accordance with the law of the State of New York without
                  giving effect to any conflict of law rule or principle that
                  might require the application of the law of another
                  jurisdiction.

         19.6.    Alternative Dispute Resolution- Except as otherwise provided,
                  in the event of any dispute between the parties relating to
                  this Distributor Service Agreement, the parties agree that the
                  dispute shall be resolved in accordance with the Dispute
                  Resolution Procedure set forth "Exhibit 19.6" attached hereto
                  and incorporated herein (the "Dispute Resolution Procedure").
                  Any party may give written notice to the other party of the
                  existence of a dispute (a "Dispute Notice"). To the extent the
                  party's dispute is not required to be resolved by said Dispute
                  Resolution Procedure the following paragraph shall apply.

                  19.6.1   Jurisdiction and Venue- The parties acknowledge and
                           agree that if any dispute or controversy shall arise
                           pursuant to this Distributor Service Agreement or the
                           relationship created thereby, such dispute or
                           controversy not required to be resolved pursuant to
                           the above paragraph may only be brought for
                           resolution in the United States District Court for
                           the Northern District of New York, or, if such court
                           lacks subject matter jurisdiction, in the New York
                           State Supreme Court, in and for Broome County, New
                           York. Distributor and the Company hereby consent to,
                           and neither of them shall contest or challenge,
                           personal jurisdiction and venue in such courts.

         19.7.    Severability- The provisions of this Distributor Service
                  Agreement are severable and this Distributor Service Agreement
                  shall be interpreted and enforced as it all completely invalid
                  or unenforceable provisions were not contained in this
                  Distributor Service Agreement, and partially valid and
                  enforceable provisions shall be enforced to the extent that
                  they are valid and enforceable.

         19.8.    Successors and Assigns- This Distributor Service Agreement
                  shall be binding upon, and shall inure to the benefit of the
                  parties hereto and their respective heirs, executors, legal
                  representatives, successors and permitted assigns; provided,
                  however, that the Company or Distributor may not assign,
                  delegate, transfer, convey or subcontract all or any portion
                  of its rights, duties, and obligations under this Distributor
                  Service Agreement without the prior written consent of the
                  other party, which consent may be given or withheld for any
                  reason or no reason. This Distributor Service Agreement is not
                  intended to confer on third parties, other than permitted
                  assigns, the right to enforce any provisions of the
                  Distributor Service Agreement.

                                      -10-
<PAGE>

         19.9.    Contributions- Distributor is not to make charitable
                  contributions, donations, or sponsorship of events such as
                  golf tournaments, etc., for or on the behalf of the Company.

         19.10.   Notices and Authorized Representatives of the Company- All
                  notices, requests, demands, tenders and other communications
                  required under this Distributor Service Agreement shall be in
                  writing and shall be deemed given (a) if delivered, mailed
                  (certified or registered mail, postage prepaid) or sent by
                  overnight courier to the other party at its address set forth
                  below, or (b) if transmitted by facsimile to the facsimile
                  number of the other party if set forth below, or (c) if
                  transmitted by e-mail to the e-mail address of the other party
                  if set forth below. Any party may change its mailing address,
                  facsimile number, or email address by giving notice to the
                  other party in the manner provided herein.

                  Notices to the Company should be addressed as follows:

                        Address:                  Cosi, Inc.
                                                  242 W. 36th Street
                                                  New York, NY 10018

                        Attention:                Director of Food

                        Telephone #:              (212) 653-1600

                        Facsimile #:              (212) 904-1375

                  Notices to Distributor should be addressed as follows:

                         Address:                  Maines Paper & Food Service,
                                                   Inc.
                                                   PO Box 450
                                                   101 Broome Corporate Parkway
                                                   Conklin, NY 13748

                         Attention:                Director of National Accounts

                         Telephone #:              (607) 779-1512

                         Facsimile #:              (607) 779-1595

                                      -11-
<PAGE>
         IN WITNESS WHEREOF, the Company and Distributor have executed this
Distributor Service Agreement as of the Effective Date.

                           WITNESS:

                           COSI, INC.

                           (COMPANY)

                           By: /s/ Jonathan M. Wainwright, Jr.
                               -------------------------------------------------
                               (signature)

                               Jonathan M. Wainwright, Jr.
                               -------------------------------------------------
                               (print name)

                           Title President
                                ------------------------------------------------

                           Attest Pamela Palladino
                                 -----------------------------------------------

                           WITNESS:

                           MAINES PAPER & FOOD SERVICE, INC. (DISTRIBUTOR)

                           By: /s/ William A. Mastrosimone
                               -------------------------------------------------
                               (signature)

                               William A. Mastrosimone
                               -------------------------------------------------
                               (print name)

                           Title CFO VP of Finance
                                ------------------------------------------------

                           Attest Judie L. Mickiln
                                 -----------------------------------------------

                                      -12-
<PAGE>

                                    EXHIBITS

         (These are numbered using the section number where they have first been

         referred to in the Distributor Service Agreement)

         3.1      Pricing

         3.4      List of Products Priced Monthly & Weekly

         4.1      Products Covered by this Distributor Service Agreement

         5.22     Distributor Performance Standards

         11.1     Product Withdrawals/Recalls

         18.7     Restaurant concepts included in the Company's system

         18.9     Critical Items List

         18.26    Territory

         19.6     Dispute Resolution Procedures

                                      -13-
<PAGE>

                                   EXHIBIT 3.1

         PRICE

         3.1.     Distributor shall charge the Landed Cost for Products plus a
                  Fee Per Unit, as defined and provided for below.

         3.2.     Fee Per Unit & Payment Terms

                           [ ** ]

                  3.2.1    Payment will be made by ACH transfer.

                  3.2.2    To control proprietary inventory, Distributor will
                           reduce the fee per unit by [ ** ]per unit on each
                           item that is utilized from Distributor's existing
                           inventory.

                  3.2.3    The fee, per unit will be reduced by [ ** ] per unit
                           when the restaurants in the Midwest are serviced from
                           a Maines Paper & Food Service, Inc., facility located
                           in the Midwest or a DMA affiliated distributor. The
                           distribution facility will begin service in the
                           Midwest when there are [ ** ]Restaurants within its
                           Territory.

                  3.2.4    Index - CPI-U

                  The Consumer Price Index (CPI) is a measure of the average
                  change over time in the prices paid by urban consumers for a
                  market basket of consumer goods and services. The CPI reflects
                  spending patterns for each of two population groups: All Urban
                  Consumers (CPI-U) and Urban Wage Earners and Clerical Workers
                  (CPI-W). The CPI-U represents about 87 percent of the total
                  U.S. population.

                  The Fee Per Unit may be adjusted annually at and after twelve
                  (12) months on the anniversary date of the agreement for
                  changes in the CPI-U as follows:

                           [ ** ]

                  3.2.5    Index- Fuel

                  The Fee Per Unit may be adjusted monthly for changes in the
                  Retail On Highway Diesel Price per Gallon for Mid-Atlantic as
                  follows:

                           [ ** ]

                                      -14-
<PAGE>

                  3.2.6    Drop Size Incentive

                  Restaurants that achieve an average drop size of [ ** ] pieces
                  per delivery will receive a monthly credit of [ ** ] per unit.
                  Restaurants that receive an average drop size of [ ** ] pieces
                  per delivery will receive a monthly credit of [ ** ] per unit.
                  Restaurants that receive an average drop size of [ ** ] or
                  more pieces per delivery will receive a monthly credit in the
                  amount of [ ** ] per unit. Distributor will process these
                  credits by the fifteenth of the following month. The Company
                  must be within payment terms to be eligible to receive this
                  incentive.

         3.3.     On those occasions when Products are sold as a "Split Case"
                  the "Fee Per Unit" shall be applied to the "Split Case" Landed
                  Cost. "Split Case" Landed Cost is the full case cost divided
                  by the number of units per case.

         3.4.     The prices for Products shall be based on the Landed Cost plus
                  the Fee Per Unit as provided for above and shall remain in
                  effect for a period ("Pricing Period") of not less than
                  twenty-eight (28) days for those Products priced monthly and
                  for periods of seven (7) days on certain commodities. A list
                  of Products priced monthly and weekly are detailed in "Exhibit
                  3.4".

         3.5.     Management of monthly price changes will follow market cost.
                  Market cost is defined as the Company's contract cost in
                  effect on the first day of the calendar month. Products not
                  contracted by the Company will be priced from the Distributors
                  market cost.

                  3.5.1    Weekly market sensitive items will be subject to
                           change based upon the current market value (see
                           "Exhibit 3.4"). Weekly price bulletins will be sent
                           to the Company's Authorized Representative via
                           e-mail. Monthly prices are published on Restaurants'
                           monthly order guide.

         3.6.     Any off-invoice allowances granted to Distributor by an
                  Approved Supplier shall be reflected in the Landed Cost. Any
                  cash discounts shall be the property of the Distributor.
                  Discontinued discounts from vendors will result in an adjusted
                  Fee Per Unit on applicable products. (Discount loss equals
                  increase in per unit fee).

         3.7.     Distributor shall submit invoices to Restaurants as follows:

                  3.7.1    Two hard copies of the invoice will be left with the
                           Restaurant at the time of delivery.

         3.8.     The Company and Distributor acknowledge that a change in the
                  Territory's boundaries could have either a material negative
                  or positive effect on Distributor's ability to maintain the
                  Fee Per Unit. Therefore, if any change in the Territory's
                  boundaries are proposed, the Company and Distributor shall
                  meet in advance of any proposed change to address any material
                  positive or negative impact and shall negotiate, in good
                  faith, an appropriate adjustment to the Fee Per Unit, as
                  warranted.

                                      -15-
<PAGE>

                  Distributor acknowledges that the Company may at its
                  discretion broaden the geographic boundaries of the Territory
                  at any time, by adding contiguous areas provided that any such
                  modification does not have a material adverse effect on
                  Distributor's ability to maintain the Fee Per Unit. If the
                  modification is determined to have a material adverse effect
                  and an appropriate adjustment to the Fee Per Unit cannot be
                  agreed upon, the proposed modification shall not be made.

         3.9.     Vendor Company Agreements- The Company will provide
                  Distributor with written evidence of existence of agreements
                  with product manufacturers in which the manufacturers have
                  agreed on prices they will charge Distributor for products to
                  be resold to the Company. The Company must notify Distributor
                  in writing of the existence of any additional agreements of
                  this sort. Distributor will not be responsible for the failure
                  to purchase under such additional agreements in the absence of
                  written notice from the Company of the existence of such
                  agreements.

                                      -16-
<PAGE>

                                   EXHIBIT 3.4

                    LIST OF PRODUCTS PRICED MONTHLY & WEEKLY

PRODUCTS PRICED WEEKLY

[ ** ]

The items listed above will be priced on a weekly basis unless otherwise
contracted between the Company and the vendor. All such contracted items must be
provided to Distributor as provided in Section 4.8 of this Distributor Service
Agreement. All other items are priced on a monthly basis.

                                      -17-
<PAGE>

                                   EXHIBIT 4.1

                       PRODUCTS COVERED BY THIS AGREEMENT

Cheese
Dairy
Fluid Dairy
Refrigerated
Meat
Poultry
Seafood
Prepared Foods
Desserts
Ice Cream & Sherbet
Dry Groceries
Beverages
Coca-Cola Syrups
Paper
Plastics
Disposables
Chemicals
Cleaning Supplies
Economics Laboratories Products

                                      -18-
<PAGE>

                                  EXHIBIT 5.22

                        DISTRIBUTOR PERFORMANCE STANDARDS

Any capitalized terms that are not otherwise defined in this Exhibit 5.22 shall
have the same meanings ascribed to them in the Distributor Service Agreement to
which this Exhibit is attached.

All requirements are on a cumulative basis for all Restaurants serviced from the
Facility and must be submitted to the Company no later than fifteen (15) days
after the end of each calendar month. Distributor shall also have available in
an electronic format and allow the Company to access and review the raw data
supporting the information contained in the monthly reports.

DELIVERY ORDER FILL RATE - a measure of the completeness of Restaurant
deliveries as a percentage of the orders that were placed for those deliveries.
This calculation will be completed monthly in the aggregate for all Restaurants
served from the Distributor.

The following classifications SHALL NOT BE INCLUDED in the # of cases received
by the Restaurant:

MisPicks - For example, Restaurant ordered apples, but received a case of
oranges with a "selection label" calling for apples.

Damages - For example, Products arriving at Restaurant in a condition unsuitable
for purchase (this may include products not meeting the Company's Quality
Assurance temperature Requirements).

Out of Code - Products that arrive that do not meet the shelf-life expectations
and requirements of the Company, and have not been granted the Company's Quality
Assurance extensions. Distributor will deliver perishable product(s) with no
less than five (5) days usable shelf life. The Company will be responsible for
product that becomes not usable or "out of code" based upon inaccurate
projections or instructions to the Distributor.

Short on Truck - Although Product is listed on the invoice, the driver could not
find the item at the time of delivery.

Warehouse Outs - Any item not able to be loaded on the truck prior to dispatch.

Overlooked and Returned - This is an item that is found on the delivery vehicle
at the end of the driver's route bearing a "selection label" for one of the
Restaurants delivered to earlier by this vehicle. An Aggregate DELIVERY ORDER
FILL RATE OF [ ** ] shall be deemed as acceptable. An Aggregate Delivery Order
Fill Rate of less than [ ** ] shall be deemed unacceptable.

If the Company at any time determines that Distributor does not perform in
accordance with the standards set forth herein, the Company must notify
Distributor of said nonperformance. Said notice shall be in written form and
contain the specific non-performance issue with proof thereof

                                      -19-
<PAGE>
regarding Distributor's non-performance. Distributor shall have sixty (60) days
from receipt of said notice to remedy the nonperformance issue.

ON TIME DELIVERY RATE - measures the distributor's ability to achieve "on-time"
deliveries as a percentage of the total number of deliveries made by the
Distributor. This calculation will be completed monthly in the aggregate for all
Restaurants served from the Distributor. A delivery will be considered as
"on-time" as long as the delivery process begins either +/- one-hour from the
time set for the expected delivery.

An "ON-TIME" aggregate percentage of [ ** ] shall be deemed as acceptable. An
"On-Time" aggregate percentage of less than [ ** ] shall be deemed as
unacceptable.

If the Company at any time determines that Distributor does not perform in
accordance with the standards set forth herein, the Company must notify
Distributor of said nonperformance. Said notice shall be in written form and
contain the specific nonperformance issue with proof thereof regarding
Distributor's non-performance. Distributor shall have sixty (60) days from
receipt of said notice to remedy the nonperformance issue.

                                      -20-
<PAGE>
                                  EXHIBIT 11.1

                           PRODUCT WITHDRAWALS/RECALLS

1.    Distributors can be notified of a product withdrawal by either the Company
      or the supplier. The Distributor will coordinate the withdrawal of product
      from Restaurants.

      When a withdrawal order is issued, the product or material will be
      identified by the:

      a.    Product/material name

      b.    Processor and brand

      c.    Production code or date

2.    Upon receipt of the withdrawal notice, on the Company or vendor
      letterhead, the Distributor will:

      a.    Call a meeting of the recall/withdrawal team members.

      b.    Immediately segregate and mark, with appropriate warning or
            instructions, all involved distributor stock to assure that none
            shall be delivered to Restaurants.

      c.    Assign a new item number to the Product that has been segregated.

      d.    Immediately alert personnel to segregate and mark all involved
            en-route stock.

      e.    Notify the Company of the:

            i. Number of cases Distributor has in its possession, and

            ii. Number of cases sold to Restaurants or shipped to other parties
            approved to receive or purchase the affected item.

      f.    If the withdrawal involved Restaurant stock, the Distributor shall:

            i. Generate a query indicating all Restaurant locations that have
            received the recalled/withdrawn product.

            ii. Immediately begin notifying all Restaurants to which the
            involved product has been shipped, giving all pertinent information.

            iii. Keep a list of Restaurants called, time called, and person
            receiving information.

            iv. Promptly pick up stock involved and keep records of amount
            returned.

            v. Replace stock promptly to minimize impact on restaurant
            operations.

      g.    When all necessary return or withdrawal actions have been completed,
            the Distributor shall:

            i. Notify the Company in writing and by telephone, verifying what
            actions have been taken or not taken.

            ii. Give the Company data on the amount of product/material
            recovered, as well as the total amount originally received and held
            in storage.

      h.    If the returned or withdrawn product/material was Company labeled,
            the distributor shall request disposition from the Company. If the
            product/material is identified by some other brand name, disposition
            instructions shall be obtained from the processor.

                                      -21-
<PAGE>
      i.    In order to facilitate returns or withdrawals, distributor shall
            maintain a current list of:

            i. Restaurants serviced and locations.

            ii. Telephone numbers of restaurants.

            iii. Names of managers and assistant managers. The list shall be
            revised and updated to keep information current.

                                      -22-
<PAGE>
                                  EXHIBIT 18.7

                RESTAURANT CONCEPTS INCLUDED IN COMPANY'S SYSTEM

      Xando Coffee & Bar

      Cosi Sandwich Bar

      Xando Cosi

                                      -23-
<PAGE>
                                  EXHIBIT 18.9

                               CRITICAL ITEMS LIST

[ ** ]

                                      -24-
<PAGE>
                                  EXHIBIT 18.26

                                    TERRITORY

MIDWEST REGION

      -     Service within [ ** ] of the Center of Chicago, Illinois.

      -     Service to and between Chicago, Illinois, and the northern most
            point of Milwaukee, Wisconsin.

      -     Service within [ ** ] of the Center of Detroit, Michigan.

      -     Service within Lansing, Michigan.

      -     Service all points within the State of Ohio.

MID-ATLANTIC REGION

      -     Service to all points in Maryland West of Hagerstown.

      -     Service to Northern Virginia

                  o     [ ** ] .

                  o     [ ** ] .

      -     Service to all points in Delaware.

      -     Service to all points in New Jersey.

      -     Service to all points in Pennsylvania.

NORTHEAST REGION

      -     Service to all points in New York.

      -     Service to all points in Connecticut.

      -     Service to all points in Rhode Island.

      -     Service to all Points in Massachusetts.

            New locations outside the defined service territory will be reviewed
            on an individual basis to define service capabilities and additional
            associated costs.

                                      -25-
<PAGE>
                                  EXHIBIT 19.6

                          DISPUTE RESOLUTION PROCEDURES

If a dispute (as hereinafter defined) arises between the parties in connection
with or relating to the Distributor Service Agreement to which this Exhibit is
attached, and the parties are unable to resolve the Dispute, the parties agree
to use the following procedures in good faith to resolve such Dispute promptly
and non judicially. "Dispute" shall mean any alleged material breach of any
representation, warranty or obligation therein, or a disagreement regarding the
interpretation, performance or nonperformance of any provision thereof, or the
validity, scope and enforceability of these Dispute Resolution Procedures, or
any dispute regarding any damages arising from the termination of the
Distributor Service Agreement: provided that, any attempt by either party to
obtain or enforce equitable remedies, including but not limited to preliminary
or permanent injunctions, temporary restraining order or specific performance
shall not be deemed a Dispute hereunder.

Either party may give written notice to the other of the existence of a Dispute
("Dispute Noticee"). Any capitalized terms that are not defined herein shall
have the same meanings as those set forth in the Distributor Service Agreement.

STEP ONE:  NEGOTIATION BY SENIOR EXECUTIVES

Within ten (10) business days of delivery of any Dispute Notice, each party will
designate a Senior Executive who has no direct operational responsibility for
the matters contemplated by the Distributor Service Agreement and who is
authorized to settle the Dispute on such party's behalf subject to the approval
of the Board of Directors, if required (the "Senior Executives"). Within ten
(10) days of such designation, the Senior Executives for the representatives
parties shall meet at a mutually agreeable time and place and thereafter as
often as they deem reasonably necessary to exchange relevant information and
attempt in good faith to negotiate a resolution of the Dispute.

STEP TWO:  MEDIATION

If the Dispute is not resolved within twenty (20) business days of the first
meeting of the Senior Executives, or if one of the Senior Executives will not
meet within twenty (20) business days, then either party may request that the
Center for Public Resources provide a member of the CPR Panel of Neutrals to act
as mediator to work with the parties to resolve their differences. The mediator
appointed shall be qualified by experience to deal with issues arising in
contracts similar to the Distributor Service Agreement and may be rejected by a
party only for bias. The mediator shall meet with the parties within thirty (30)
days of his or her appointment to help the parties resolve the Dispute. Efforts
to reach a settlement will continue until (a) a written settlement is reached,
(b) the mediator concludes and informs the parties in writing that further
efforts would not be useful, or (c) the parties agree in writing that an impasse
has been reached. The costs of the mediation, including fees and expenses, shall
be borne equally by the parties.

                                      -26-
<PAGE>
After the mediator or the parties have determined that further mediation is not
likely to resolve the Dispute, either party may request in writing that the
mediator make a recommended resolution of the Dispute in writing to each party
which recommendation shall not be binding upon the parties; provided, however,
the parties shall give good faith consideration to the settlement of the Dispute
based upon such recommendation. If either party thereafter pursues the matter to
resolution by arbitration as provided herein such party shall pay the reasonable
attorney's fee, costs, and other expenses (including expert witness fees) of the
other party incurred in connection with the pursuit and achievement of (and
defense against) such arbitration, if any, if the result thereof is less
favorable to such pursing party than the recommendation of the mediator. The
arbitrator shall be authorized to make a determination as to whether the
resulting arbitration is more or less favorable to a party than the mediator's
recommendation and to determine the amount of any award for fees, costs, and
expenses.

STEP THREE:  BINDING ARBITRATION

If the parties are not successful in resolving the dispute through the
mediation, then either party may initiate final resolution of the Dispute by
binding arbitration conducted in accordance with the Center for Public Resources
Rules for Non-Administered Arbitration of Business Disputes, by three
arbitrators, of whom each party shall appoint one and the third to be selected
by the other two. The arbitration shall be governed by the United States
Arbitration Act, 9 U.S.C. Sections 1-16, and judgment upon the award
rendered by the arbitrator(s) shall be binding upon the parties and may be
entered by any court having jurisdiction thereof. The place of arbitration shall
be Broome County, New York. The arbitrator(s) are not empowered to award damages
in excess of those damages authorized by the Distributor Service Agreement. All
costs of arbitration including the fees of the arbitrator(s) shall be borne
equally by the parties.

GENERAL PROVISIONS:

      1.    All deadlines specified in this Exhibit may be extended by mutual
            agreement.

      2.    If at any meeting conducted pursuant to these Dispute Resolution
            Procedures a negotiator intends to be accompanied at a meeting by an
            attorney, the other negotiator shall be given prompt, but at least
            three (3) business days notice of such intention and may also be
            accompanied by an attorney.

      3.    The procedures specified in this Exhibit are an essential
            provision of the Distributor Service Agreement and one that is
            legally binding on them.  These procedures shall be the sole and
            exclusive procedures for the resolution of Disputes between the
            parties arising out of or relating to the Distributor Service
            Agreement to which it is attached.  In case of violation of the
            obligations of each party pursuant to the Exhibit V, the other
            party may bring an action to seek enforcement of such obligation
            in any court of law authorized in the Distributor Service
            Agreement.

      4.    The parties acknowledge that the foregoing Dispute Resolution
            Procedures are intended to provide a private resolution of
            Disputes between them.  Accordingly, all documents, records, and
            other information relating to the Dispute shall at all

                                      -27-
<PAGE>
            times be maintained in the strictest confidence and not disclosed to
            any third party except when necessary for the specific purpose of
            resolving the pending Dispute. All negotiations pursuant to these
            Dispute Resolution Procedures are confidential and shall be treated
            as compromise negotiations for all purposes, including for purposes
            of the Federal Rules of Evidence and State Rules of Evidence.

      5.    If the Distributor Service Agreement has not been terminated, the
            parties agree to act in good faith to comply with all of their
            respective obligations under the Distributor Service Agreement as
            much as possible as if there were no Dispute during any pending
            Dispute Resolution Procedures.

      6.    The parties agree that the terms of this Exhibit shall survive the
            termination or expiration of the Distributor Service Agreement.

                                      -28-

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