Document:

Exhibit 10.3

Exhibit 10.3

MCA Enterprises, Inc.

Michael Ansley

Tampa, FL

7/18/03 AD

Buffalo Wild Wings®

Area Development Agreement

MCA ENTERPRISES, INC.

Developer

Effective Date:

July 18, 2003

(To be Completed by Us)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION	 	PAGE	 
	 
	 	 	 	 
	RECITALS
	 	 	1	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	GRANT OF DEVELOPMENT RIGHTS
	 	 	2	 
	 
	 	 	 	 
	DEVELOPMENT FEE
	 	 	4	 
	 
	 	 	 	 
	DEVELOPMENT SCHEDULE
	 	 	4	 
	 
	 	 	 	 
	TERM
	 	 	6	 
	 
	 	 	 	 
	YOUR DUTIES
	 	 	6	 
	 
	 	 	 	 
	DEFAULT AND TERMINATION
	 	 	7	 
	 
	 	 	 	 
	RIGHTS AND DUTIES OF PARTIES UPON TERMINATION OR EXPIRATION
	 	 	8	 
	 
	 	 	 	 
	TRANSFER
	 	 	10	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	10	 

	 	 	 	 	 
	APPENDICES	 	 	 	 
	 
	 
	A. DEVELOPMENT TERRITORY
	 	 	 	 
	 
	 
	B. DEVELOPMENT SCHEDULE
	 	 	 	 

 

 

 

BUFFALO WILD WINGS®

AREA DEVELOPMENT AGREEMENT

This
Area Development Agreement is made this 18th day of July, 2003 between BUFFALO
WILD WINGS INTERNATIONAL, INC., an Ohio corporation with its principal business located at 1600
Utica Avenue South, Suite 700, Minneapolis, Minnesota 55426 (“we” or “us”) and MCA ENTERPRISES,
INC., a Michigan corporation whose principal business address is 820 Cherokee Ave., Royal Oak,
Michigan 48067 (“developer” or “you”). If the developer is a corporation, partnership or limited
liability company, certain provisions of the Agreement also apply to your owners and will be noted.

RECITALS

A. Our parent company has developed a unique system for operating video entertainment
oriented, fast casual restaurants that feature chicken wings, sandwiches, unique food service and
other products, beverages and services using certain standards and specifications;

B. Many of the food and beverage products are prepared according to specified recipes and
procedures, some of which include proprietary sauces and mixes;

C. Our parent company owns the BUFFALO WILD WINGS® Trademark and other trademarks used in
connection with the Operation of a BUFFALO WILD WINGS restaurant;

D. Our parent company has granted to us the right to sublicense the right to develop and
operate BUFFALO WILD WINGS restaurants;

E. You desire to develop and operate several BUFFALO WILD WINGS restaurants and we, in
reliance on your representations, have approved your franchise application to do so in accordance
with this Agreement.

In consideration of the foregoing and the mutual covenants and consideration below, you and we
agree as follows:

DEFINITIONS

1. For purposes of this Agreement, the terms below have the following definitions:

A. “Menu Items” means the chicken wings, sandwiches and other products and beverages
prepared according to our specified recipes and procedures, as we may modify and change from
time to time.

B. “Principal Owner” means any person who directly or indirectly owns a 10% or greater
interest in the developer when the developer is a corporation, limited liability company, a
partnership, or a similar entity. In addition, if the developer is a partnership entity,
then each general partner is a Principal Owner, regardless of the percentage ownership
interest. If the developer is one or more individuals, each individual is a Principal Owner
of the developer. You must have at least one Principal Owner.

C. “Restaurants” means the BUFFALO WILD WINGS Restaurants you develop and operate
pursuant to this Agreement.

 

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D. “System” means the BUFFALO WILD WINGS System, which consists of distinctive food and
beverage products prepared according to special and confidential recipes and formulas with
unique storage, preparation, service and delivery procedures and techniques, offered in a
setting of distinctive exterior and interior layout, design and color scheme, signage,
furnishings and materials and using certain distinctive types of facilities, equipment,
supplies, ingredients, business techniques, methods and procedures together with sales
promotion programs, all of which we may modify and change from time to time.

E. “Trademarks” means the BUFFALO WILD WINGS Trademark and Service Mark that have been
registered in the United States and elsewhere and the trademarks, service marks and trade
names set forth in each Franchise Agreement, as we may modify and change from time to time,
and the trade dress and other commercial symbols used in the Restaurants. Trade dress
includes the designs, color schemes and image we authorize you to use in the operation of
the Restaurants from time to time.

GRANT OF DEVELOPMENT RIGHTS

2. The following provisions control with respect to the rights granted hereunder:

A. We grant to you, under the terms and conditions of this Agreement, the right to
develop and operate ten (10) BUFFALO WILD WINGS Restaurants (the “Restaurants”) within the
territory described on Appendix A (“Development Territory”).

B. You are bound by the development schedule (“Development Schedule”) set forth in
Appendix B. Time is of the essence for the development of each Restaurant in accordance with
the Development Schedule. Each Restaurant must be developed and operated pursuant to a
separate Franchise Agreement that you enter into with us pursuant to Section 4.B below.

C. If you are in compliance with the Development Schedule set forth on Appendix B, we
will not develop or operate or grant anyone else a franchise to develop and operate a
BUFFALO WILD WINGS Restaurant business in the Development Territory prior to the earlier of
(i) the expiration or termination of this Agreement; (ii) the date on which you must execute
the Franchise Agreement for your last restaurant pursuant to the terms of the Development
Schedule or (iii) the date on which the Designated Area for your final Restaurant under this
Agreement is determined, except (a) for the Special Sites defined in Section 2.D below; (b)
in the event that the Development Territory covers more than one city, county or designated
market area, the protection for each particular city, county or designated market area shall
expire upon the earliest of (1) any of the foregoing events or (2) the date when the
Designated Area for your final Restaurant to be developed in such city, county or designated
market area under this Agreement is determined; or (c) as otherwise provided in this
Agreement. Notwithstanding anything in this Agreement, upon the earliest occurrence of any
of the foregoing events (i) the Development Territory shall expire and (ii) we will be
entitled to develop and operate, or to franchise others to develop and operate, BUFFALO WILD
WINGS restaurants in the Development Territory, except as may be otherwise provided under
any Franchise Agreement that has been executed between us and you and that has not been
terminated. At the time you execute your final Franchise Agreement under the Development
Schedule, you must have an Authorized Location for your final Restaurant.

 

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D. The rights granted under this Agreement are limited to the right to develop and
operate Restaurants located in the Development Territory, and do not include (i) any right
to sell products and Menu Items identified by the Trademarks at any location or through any
other
channels or methods of distribution, including the internet (or any other existing or
future form of electronic commerce), other than at Restaurants within the Development
Territory, (ii) any right to sell products and Menu Items identified by the Trademarks to
any person or entity for resale or further distribution, or (iii) any right to exclude,
control or impose conditions on our development or operation of franchised, company or
affiliate owned restaurants at any time or at any location outside of the Development
Territory. You may not use any the words BUFFALO, WILD or WINGS or any of the other
Trademarks as part of the name of your corporation, partnership, limited liability company
or other similar entity.

You acknowledge and agree that (i) we and our affiliates have the right to operate or
franchise within the Designated Area one or more facilities with limited sitting, which
shall not be video entertainment oriented, fast casual restaurants, selling, for dine in or
take out, all or some of the Menu Items, using the Trademarks or any other trademarks,
service marks or trade names, without compensation to any franchisee; (ii) we and our
affiliates have the right outside of the Development Territory to grant other franchises or
operate company or affiliate owned BUFFALO WILD WINGS restaurants and offer, sell or
distribute any products or services associated with the System (now or in the future) under
the Trademarks or any other trademarks, service marks or trade names or through any
distribution channel or method, all without compensation to any developer; and (iii) we and
our affiliates have the right to operate and franchise others to operate restaurants or any
other business within and outside the Development Territory under trademarks other than the
BUFFALO WILD WINGS Trademarks, without compensation to any developer, except that our
operation of, or association or affiliation with, restaurants (through franchising or
otherwise) in the Development Territory that compete with BUFFALO WILD WINGS restaurants in
the video entertainment oriented, fast casual restaurant segment will only occur through
some form of merger or acquisition with an existing restaurant chain.

In addition, we and our affiliates have the right to offer, sell or distribute, within
the Development Territory, any frozen, pre-packaged items or other products or services
associated with the System (now or in the future) or identified by the Trademarks, or any
other trademarks, service marks or trade names, except for Prohibited Items (as defined
below), through any distribution channels or methods, without compensation to any developer.
The distribution channels or methods include, without limitation, grocery stores, club
stores, convenience stores, wholesale, hospitals, clinics, health care facilities, business
or industry locations (e.g. manufacturing site, office building), military installations,
military commissaries or the internet (or any other existing or future form of electronic
commerce). The Prohibited Items are the following items that we will not sell in the
Development Territory through other distribution channels or methods: any retail food
service Menu Items that are cooked or prepared to be served to the end user or customer for
consumption at the retail location. For example, chicken wings cooked and served to
customers at a grocery store or convenience store would be a Prohibited Item, but the sale
of frozen or pre-packaged chicken wings at a grocery store or convenience store would be a
permitted form of distribution in the Development Territory.

Further, you acknowledge that certain locations within the Development Territory are by
their nature unique and separate in character from sites generally developed as BUFFALO WILD
WINGS restaurants. As a result, you agree that the following locations (“Special Sites”) are
excluded from the Development Territory and we have the right, subject to our then-current
Special Sites Impact Policy, to develop or franchise such locations: (1) military bases; (2)
public transportation facilities; (3) sports facilities, including race tracks; (4) student
unions or Other similar buildings on college or university campuses; (5) amusement and theme
parks; and (6) community and special events.

 

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E. This Agreement is not a Franchise Agreement and you have no right to use in any
manner the Trademarks by virtue of this Agreement. You have no right under this Agreement to
sublicense or subfranchise others to operate a business or restaurant or use the System or
the Trademarks.

DEVELOPMENT FEE

3. You must pay a Development Fee as described below:

A. As consideration for the rights granted in this Agreement, you must pay us a
“Development Fee” of $60,000, representing one-half of the Initial Franchise Fee for each
Restaurant to be developed under this Agreement. The Initial Franchise Fee for the first
Restaurant is $30,000. The Initial Franchise Fee for each subsequent Restaurant is $10,000.

The Development Fee is consideration for this Agreement and not consideration for any
Franchise Agreement, is fully earned by us upon execution of this Agreement and is
nonrefundable. The part of the Initial Franchise Fee that is included in the Development Fee
is credited against the Initial Franchise Fee payable upon the signing of each individual
Franchise Agreement. The balance of the Initial Franchise Fee for the first Restaurant must
be paid at the time of execution of this Agreement, together with the execution by you of
the Franchise Agreement for the first Restaurant. The total amount to be paid by you at the
time of execution of this Agreement pursuant to this Section, including both the Development
Fee and the balance of the Initial Franchise Fee for your first Restaurant is $75,000. The
balance of the Initial Franchise Fee for each subsequent Restaurant is due as specified in
Section 3.B.

B. You must submit a separate application for each Restaurant to be established by you
within the Development Territory as further described in Section 4. Upon our consent to the
site of your Restaurant, a separate Franchise Agreement must be executed for each such
Restaurant, at which time the balance of the Initial Franchise Fee for that Restaurant is
due and owing. Such payment represents the balance of the appropriate Initial Franchise Fee,
as described above in Section 3.A. Upon the execution of each Franchise Agreement, the terms
and conditions of the Franchise Agreement control the establishment and operation of such
Restaurant.

DEVELOPMENT SCHEDULE

4. The following provisions control with respect to your development rights and obligations:

A. You are bound by and strictly must follow the Development Schedule. By the dates set
forth under the Development Schedule, you must enter into Franchise Agreements with us
pursuant to this Agreement for the number of Restaurants described under the Development
Schedule. You also must comply with the Development Schedule requirements regarding (i) the
restaurant type to be developed and the opening date for each Restaurant and (ii) the
cumulative number of Restaurants to be open and continuously operating for business in the
Development Territory. If you fail to either execute a Franchise Agreement or to open a
Restaurant according to the dates set forth in the Franchise Agreement, we, in our sole
discretion, may (i) require that you hire a franchise development expert with recognized
experience in developing franchises in a similar line of business to ours or (ii)
immediately terminate this Agreement pursuant to Section 7.B.

 

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B. You may not develop a Restaurant unless you have notified us of your intention to
develop the Restaurant at least 30 days prior to the date set forth in the Development
Schedule by which you must execute a Franchise Agreement for the particular Restaurant and
all of the following conditions have been met (these conditions apply to each Restaurant to
be developed in the Development Territory):

1. Your Submission of Proposed Site. You must find a proposed site for
the Restaurant which you reasonably believe to conform to our site selection
criteria, as modified by us from time to time, and submit to us a complete site
report (containing such demographic, commercial, and other information and
photographs as we may reasonably require) for such site.

2. Our Consent to Proposed Site. You must receive our written consent
to your proposed site. We agree not to unreasonably withhold consent to a proposed
site. If we have developed a proprietary site evaluation system, prior to granting
our consent to a site, you must have the site evaluated by our proprietary site
evaluator software. This software will be licensed to us by a third party provider.
You are required to pay a fee to such provider for each site you ask us to consider
for final evaluation. The fee is between $500 to $850 per site. In approving or
disapproving any proposed site, we will consider such matters as we deem material,
including demographic characteristics of the proposed site, traffic patterns,
competition, the proximity to other businesses, the nature of other businesses in
proximity to the site, and other commercial characteristics (including the purchase
or lease obligations for the proposed site) and the size of premises, appearance and
other physical characteristics. Our consent to a proposed site, however, does not in
any way constitute a guaranty by us as to the success of the Restaurant.

3. Your Submission of Information. You must furnish to us, at least 30
days prior to the earliest of (i) the date set forth in the Development Schedule by
which you must execute a Franchise Agreement or (ii) the actual date in which the
Franchise Agreement would be executed, a franchise application for the proposed
Restaurant, financial statements and other information regarding you, the operation
of any of your other Restaurants within the Development Territory and the
development and operation of the proposed Restaurant (including, without limitation,
investment and financing plans for the proposed Restaurant) as we may reasonably
require.

4. Your Compliance with Our Then-Current Standards for Franchisees. You
must receive written confirmation from us that you meet our then-current standards
for franchisees, including financial capability criteria for the development of a
new Restaurant. You acknowledge and agree that this requirement is necessary to
ensure the proper development and operation of your Restaurants, and preserve and
enhance the reputation and goodwill of all BUFFALO WILD WINGS restaurants and the
goodwill of the Trademarks. Our confirmation that you meet our then-current
standards for the development of a new Restaurant, however, does not in any way
constitute a guaranty by us as to your success.

5. Good Standing. You must not be in default of this Agreement, any
Franchise Agreement entered into pursuant to this Agreement or any other agreement
between you or any of your affiliates and us or any of our affiliates. You also must
have satisfied on a timely basis all monetary and material obligations under the
Franchise Agreements for all existing Restaurants.

 

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6. Execution of Franchise Agreement. You and we must enter into our
then-current form of Franchise Agreement for the proposed Restaurant. You understand
that we may modify the then-current form of Franchise Agreement from time to time
and that it may be different than the current form of Franchise Agreement, including
different fees and obligations. You understand and agree that any and all Franchise
Agreements will be construed and exist independently of this Agreement. The
continued existence of each Franchise Agreement will be determined by the terms and
conditions of such Franchise Agreement. Except as specifically set forth in this
Agreement, the establishment and operation of each Restaurant must be in accordance
with the terms of the applicable Franchise Agreement.

C. You acknowledge that you have conducted an independent investigation of the
prospects for the establishment of Restaurants within the Development Territory, and
recognize that the business venture contemplated by this Agreement involves business and
economic risks and that your financial and business success will be primarily dependent upon
the personal efforts of you and your management and employees. We expressly disclaim the
making of, and you acknowledge that you have not received, any estimates, projections,
warranties or guaranties, express or implied, regarding potential gross sales, profits,
earnings or the financial success of the Restaurants you develop within the Development
Territory.

D. You recognize and acknowledge that this Agreement requires you to open Restaurants
in the future pursuant to the Development Schedule. You further acknowledge that the
estimated expenses and investment requirements set forth in Items 6 and 7 of our Uniform
Franchise Offering Circular are subject to increase over time, and that future Restaurants
likely will involve greater initial investment and operating capital requirements than those
stated in the Uniform Franchise Offering Circular provided to you prior to the execution of
this Agreement. You are obligated to execute all the Franchise Agreements and open all the
Restaurants on the dates set forth on the Development Schedule, regardless of (i) the
requirement of a greater investment, (ii) the financial condition or performance of your
prior Restaurants, or (iii) any other circumstances, financial or otherwise. The foregoing
shall not be interpreted as imposing any obligation upon us to execute the Franchise
Agreements under this Agreement if you have not complied with each and every condition
necessary to develop the Restaurants.

TERM

5. Unless sooner terminated in accordance with Section 7 of this Agreement, the term of this
Agreement and all rights granted to you will expire on the date that your last BUFFALO WILD WINGS
Restaurant is scheduled to be opened under the Development Schedule.

YOUR DUTIES

6. You must perform the following obligations:

A. You must comply with all of the terms and conditions of each Franchise Agreement,
including the operating requirements specified in each Franchise Agreement.

 

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B. You and your owners, officers, directors, shareholders, partners, members and
managers (if any) acknowledge that your entire knowledge of the operation of a BUFFALO WILD
WINGS Restaurant and the System, including the knowledge or know-how regarding the
specifications, standards and operating procedures of the services and activities, is
derived from information we disclose to you and that certain information is proprietary,
confidential and
constitutes our trade secrets. The term “trade secrets” refers to the whole or any
portion of know-how, knowledge, methods, specifications, processes, procedures and/or
improvements regarding the business that is valuable and secret in the sense that it is not
generally known to our competitors and any proprietary information contained in the manuals
or otherwise communicated to you in writing, verbally or through the internet or other
online or computer communications, and any other knowledge or know-how concerning the
methods of operation of the Restaurants. You and your owners, officers, directors,
shareholders, partners, members and managers (if any), jointly and severally, agree that at
all times during and after the term of this Agreement, you will maintain the absolute
confidentiality of all such proprietary information and will not disclose, copy, reproduce,
sell or use any such information in any other business or in any manner not specifically
authorized or approved in advance in writing by us. We may require that you obtain
nondisclosure and confidentiality agreements in a form satisfactory to us from the
individuals identified in the first sentence of this paragraph and other key employees.

C. You must comply with all requirements of federal, state and local laws, rules and
regulations.

D. If you at some time in the future desire to make either a public or a private
offering of your securities, prior to such offering and sale, and prior to the public
release of any statements, data, or other information of any kind relating to the proposed
offering of your securities, you must secure our written approval, which approval will not
be unreasonably withheld. You must secure our prior written consent to any and all press
releases, news releases and any and all other publicity, the primary purpose of which is to
generate interest in your offering. Only after we have given our written approval may you
proceed to file, publish, issue, and release and make public any said data, material and
information regarding the securities offering. It is specifically understood that any review
by us is solely for our own information, and our approval does not constitute any kind of
authorization, acceptance, agreement, endorsement, approval, or ratification of the same,
either expressly or implied. You may make no oral or written notice of any kind whatsoever
indicating or implying that we and/or our affiliates have any interest in the relationship
whatsoever to the proposed offering other than acting as Franchisor. You agree to indemnify,
defend, and hold us and our affiliates harmless, and our affiliates’ directors, officers,
successors and assign§ harmless from all claims, demands, costs, fees, charges, liability or
expense (including attorneys’ fees) of any kind whatsoever arising from your offering of
information published or communicated in actions taken in that regard.

E. If neither you, your Principal Owner, nor any other person in your organization
possesses, in our judgment, adequate experience and skills to allow you to locate, obtain
and develop prime locations in the Development Territory to allow you to meet your
development obligations under this Agreement, we can require that you hire or engage a
person with those necessary skills.

DEFAULT AND TERMINATION

7. The following provisions apply with respect to default and termination:

A. The rights and territorial protection granted to you in this Agreement have been
granted in reliance on your representations and warranties, and strictly on the conditions
set forth in Sections 2, 4 and 6 of this Agreement, including the condition that you comply
strictly with the Development Schedule.

 

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B. You will be deemed in default under this Agreement if you breach any of the terms of
this Agreement, including the failure to meet the Development Schedule, or the terms of any
Franchise Agreement or any other agreements between you or your affiliates and us or our
affiliates. All rights granted in this Agreement immediately terminate upon written notice
without opportunity to cure if: (i) you become insolvent, commit any affirmative action of
insolvency or file any action or petition of insolvency, (ii) a receiver (permanent or
temporary) of your property is appointed by a court of competent authority, (iii) you make a
general assignment or other similar arrangement for the benefit of your creditors, (iv) a
final judgment remains unsatisfied of record for 30 days or longer (unless supersedeas bond
is filed), (v) execution is levied against your business or property, (vi) suit to foreclose
any lien or mortgage against his premises or equipment is instituted against you and not
dismissed within 30 days, or is not in the process of being dismissed, (vii) you fail to
meet your development obligations set forth in the Development Schedule attached as Appendix
B, (viii) you fail to comply with any other provision of this Agreement and do not correct
the failure within 30 days after written notice of that failure is delivered to you, or (ix)
we have delivered to you a notice of termination of a Franchise Agreement in accordance with
its terms and conditions.

RIGHTS AND DUTIES OF PARTIES UPON TERMINATION OR EXPIRATION

8. Upon termination or expiration of this Agreement, all rights granted to you will
automatically terminate, and:

A. All remaining rights granted to you to develop Restaurants under this Agreement will
automatically be revoked and will be null and void. You will not be entitled to any refund
of any fees. You will have no right to develop or operate any business for which a Franchise
Agreement has not been executed by us. We will be entitled to develop and operate, or to
franchise others to develop and operate, BUFFALO WILD WINGS restaurants in the Development
Territory, except as may be otherwise provided under any Franchise Agreement that has been
executed between us and you and that has not been terminated.

B. You must immediately cease to operate your business under this Agreement and must
not thereafter, directly or indirectly, represent to the public or hold yourself out as a
present or former developer of ours.

C. You must take such action as may be necessary to cancel or assign to us or our
designee, at our option, any assumed name or equivalent registration that contains the name
or any of the words BUFFALO, WILD or WINGS or any other Trademark of ours, and you must
furnish us with evidence satisfactory to us of compliance with this obligation within 30
days after termination or expiration of this Agreement.

D. You must assign to us or our designee all your right, title, and interest in and to
your telephone numbers and must notify the telephone company and all listing agencies of the
termination or expiration of your right to use any telephone number in any regular,
classified or other telephone directory listing associated with the Trademarks and to
authorize transfer of same at our direction.

 

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E. You must within 30 days of the termination or expiration pay all sums owing to us
and our affiliates, including the balance of the Initial Franchise Fees that we would have
received had you developed all of the Restaurants set forth in the Development Schedule. In
addition to the Initial Franchise Fees for undeveloped Restaurants, you agree to pay as fair
and reasonable liquidated damages (but not as a penalty) an amount equal to $50,000 for each
undeveloped Restaurant. You agree that this amount is for lost revenues from Continuing
Fees and other amounts payable to us, including the fact that you were holding the
development rights for those Restaurants and precluding the development of certain
Restaurants in the Development Territory, and that it would be difficult to calculate with
certainty the amount of damage we will incur. Notwithstanding your agreement, if a court
determines that this liquidated damages payment is unenforceable, then we may pursue all
other available remedies, including consequential damages.

All unpaid amounts will bear interest at the rate of 18% per annum or the maximum
contract rate of interest permitted by governing law, whichever is less, from and after the
date of accrual. In the event of termination for any default by you, the sums due will
include all damages, costs, and expenses, including reasonable attorneys’ fees and expenses,
incurred by us as a result of the default. You also must pay to us all damages, costs and
expenses, including reasonable attorneys’ fees and expenses, that we incur subsequent to the
termination or expiration of this Agreement in obtaining injunctive or other relief for the
enforcement of any provisions of this Agreement.

F. If this Agreement is terminated solely for your failure to meet the Development
Schedule and for no other reason whatsoever, and you have opened at least 50% of the total
number of Restaurants provided for in the Development Schedule, you may continue to operate
those existing Restaurants under the terms of the separate Franchise Agreement for each
Restaurant. On the other hand, if this Agreement is terminated under any other circumstance,
we have the option to purchase from you all the assets used in the Restaurants that have
been developed prior to the termination of this Agreement. Assets include leasehold
improvements, equipment, furniture, fixtures, signs, inventory, liquor licenses and other
transferable licenses and permits for the Restaurants.

We have the unrestricted right to assign this option to purchase. We or our assignee
will be entitled to all customary warranties and representations given by the seller of a
business including, without limitation, representations and warranties as to (i) ownership,
condition and title to assets; (ii) liens and encumbrances relating to the assets; and (iii)
validity of contracts and liabilities, inuring to us or affecting the assets, contingent or
otherwise. The purchase price for the assets of the Restaurants will be determined in
accordance with the post-termination purchase option provision in the individual Franchise
Agreement for each Restaurant (with the purchase price to include the value of any goodwill
of the business attributable to your operation of the Restaurant if you are in compliance
with the terms and conditions of the Franchise Agreement for that Restaurant). The purchase
price must be paid in cash at the closing of the purchase, which must take place no later
than 90 days after your receipt of notice of exercise of this option to purchase, at which
time you must deliver instruments transferring to us or our assignee: (i) good and
merchantable title to the assets purchased, free and clear of all liens and encumbrances
(other than liens and security interests acceptable to us or our assignee), with all sales
and other transfer taxes paid by you; and (ii) all licenses and permits of the Restaurants
that may be assigned or transferred. If you cannot deliver clear title to all of the
purchased assets, or in the event there are other unresolved issues, the closing of the sale
will be accomplished through an escrow. We have the right to set off against and reduce the
purchase price by any and all amounts owed by you to us, and the amount of any encumbrances
or liens against the assets or any obligations assumed by us. You and each holder of an
interest in you must indemnify us and our affiliates against all liabilities not so assumed.
You must maintain in force all insurance policies required pursuant to the applicable
Franchise Agreement until the closing on the sale.

 

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G. All of our and your obligations that expressly or by their nature survive the
expiration or termination of this Agreement will continue in full force and effect
subsequent to and notwithstanding its expiration or termination and until they are satisfied
or by their nature expire.

TRANSFER

9. The following provisions govern any transfer:

A. We have the right to transfer all or any part of our rights or obligations under
this Agreement to any person or legal entity.

B. This Agreement is entered into by us with specific reliance upon your personal
experience, skills and managerial and financial qualifications. Consequently, this
Agreement, and your rights and obligations under it, are and will remain personal to you.
You may only Transfer your rights and interests under this Agreement if you obtain our prior
written consent and you transfer all of your rights and interests under all Franchise
Agreements for Restaurants in the Development Territory. Accordingly, the assignment terms
and conditions of the Franchise Agreements shall apply to any Transfer of your rights and
interests under this Agreement. As used in this Agreement, the term “Transfer” means any
sale, assignment, gift, pledge, mortgage or any other encumbrance, transfer by bankruptcy,
transfer by judicial order, merger, consolidation, share exchange, transfer by operation of
law or otherwise, whether direct or indirect, voluntary or involuntary, of this Agreement or
any interest in it, or any rights or obligations arising under it, or of any material
portion of your assets, or of any interest in you.

MISCELLANEOUS

10. The parties agree to the following provisions:

A. You agree to indemnify, defend, and hold us, our affiliates and our officers,
directors, shareholders and employees harmless from and against any and all claims, losses,
damages and liabilities, however caused, arising directly or indirectly from, as a result
of, or in connection with, the development, use and operation of your Restaurants, as well
as the costs, including attorneys’ fees, of defending against them (“Franchise Claims”).
Franchise Claims include, but are not limited to, those arising from any death, personal
injury or property damage (whether caused wholly or in part through our or our affiliates
active or passive negligence), latent or other defects in any Restaurant, or your employment
practices. In the event a Franchise Claim is made against us or our affiliates, we reserve
the right in our sole judgment to select our own legal counsel to represent our interests,
at your cost.

B. Should one or more clauses of this Agreement be held void or unenforceable for any
reason by any court of competent jurisdiction, such clause or clauses will be deemed to be
separable in such jurisdiction and the remainder of this Agreement is valid and in full
force and effect and the terms of this Agreement must be equitably adjusted so as to
compensate the appropriate party for any consideration lost because of the elimination of
such clause or clauses.

 

10

 

C. No waiver by us of any breach by you, nor any delay or failure by us to enforce any
provision of this Agreement, may be deemed to be a waiver of any other or subsequent breach
or be deemed an estoppel to enforce our rights with respect to that or any other or
subsequent breach. This Agreement may not be waived, altered or rescinded, in whole or in
part, except by a writing signed by you and us. This Agreement together with the application
form
executed by you requesting us to enter into this Agreement constitute the sole
agreement between the parties with respect to the entire subject matter of this Agreement
and embody all prior agreements and negotiations with respect to the business. You
acknowledge and agree that you have not received any warranty or guarantee, express or
implied, as to the potential volume, profits or success of your business. There are no
representations or warranties of any kind, express or implied, except as contained in this
Agreement.

D. Except as otherwise provided in this Agreement, any notice, demand or communication
provided for must be in writing and signed by the party serving the same and either
delivered personally or by a reputable overnight service or deposited in the United States
mail, service or postage prepaid, and if such notice is a notice of default or of
termination, by registered or certified mail, and addressed as follows:

1. If intended for us, addressed to General Counsel, Buffalo Wild Wings
International, Inc., 1600 Utica Avenue South, Suite 700, Minneapolis, Minnesota
55416;

2. If intended for you, addressed to you at 820 Cherokee Ave., Royal Oak,
Michigan 48067; or,

in either case, to such other address as may have been designated by notice to the
other party. Notices for purposes of this Agreement will be deemed to have been
received if mailed or delivered as provided in this subparagraph.

E. Any modification, consent, approval, authorization or waiver granted in this
Agreement required to be effective by signature will be valid only if in writing executed by
the Principal Owner or, if on behalf of us, in writing executed by our President or one of
our authorized Vice Presidents.

F. The following provisions apply to and govern the interpretation of this Agreement,
the parties’ rights under this Agreement, and the relationship between the parties:

1. Applicable Law and Waiver. Subject to our rights under federal
trademark laws, the parties’ rights under this Agreement, and the relationship
between the parties, is governed by, and will be interpreted in accordance with, the
laws (statutory and otherwise) of the state in which your first Restaurant is
located. You waive, to the fullest extent permitted by law, the rights and
protections that might be provided through the laws of any state relating to
franchises or business opportunities, other than those of the state in which your
first Restaurant is located.

2. Our Rights. Whenever this Agreement provides that we have a certain
right, that right is absolute and the parties intend that our exercise of that right
will not be subject to any limitation or review. We have the right to operate,
administrate, develop, and change the System in any manner that is not specifically
precluded by the provisions of this Agreement, although this right does not modify
the express limitations set forth in this Agreement.

 

11

 

3. Our Reasonable Business Judgment. Whenever we reserve discretion in
a particular area or where we agree to exercise our rights reasonably or in good
faith, we will satisfy our obligations whenever we exercise Reasonable Business
Judgment in making our decision or exercising our rights. Our decisions or actions
will be deemed to be the result of Reasonable Business Judgment, even if other
reasonable or even arguably
preferable alternatives are available, if our decision or action is intended,
in whole or significant part, to promote or benefit the System generally even if the
decision or action also promotes our financial or other individual interest.
Examples of items that will promote or benefit the System include, without
limitation, enhancing the value of the Trademarks, improving customer service and
satisfaction, improving product quality, improving uniformity, enhancing or
encouraging modernization and improving the competitive position of the System.

G. Any cause of action, claim, suit or demand allegedly arising from or related to the
terms of this Agreement or the relationship of the parties that is not subject to
arbitration under Section 10.M must be brought in the Federal District Court for the
District of Minnesota or in Hennepin County District Court, Fourth Judicial District,
Minneapolis, Minnesota. Both parties irrevocably submit themselves to, and consent to, the
jurisdiction of said courts. The provisions of this Section will survive the termination of
this Agreement. You are aware of the business purposes and needs underlying the language of
this subparagraph, and with a complete understanding, agree to be bound in the manner set
forth.

H. All parties hereby waive any and all rights to a trial by jury in connection with
the enforcement or interpretation by judicial process of any provision of this Agreement,
and in connection with allegations of state or federal statutory violations, fraud,
misrepresentation or similar causes of action or any legal action initiated for the recovery
of damages for breach of this Agreement.

I. You and us and our affiliates agree to waive, to the fullest extent permitted by
law, the right to or claim for any punitive or exemplary damages against the other and agree
that in the event of any dispute between them, each will be limited to the recovery of
actual damages sustained.

J. If you are a corporation, partnership, limited liability company or partnership or
other legal entity, all of your Principal Owners must execute the form of undertaking and
guarantee at the end of this Agreement. Any person or entity that at any time after the date
of this Agreement becomes a Principal Owner must execute the form of undertaking and
guarantee at the end of this Agreement.

K. You and we are independent contractors. Neither party is the agent, legal
representative, partner, subsidiary, joint venturer or employee of the other. Neither party
may obligate the other or represent any right to do so. This Agreement does not reflect or
create a fiduciary relationship or a relationship of special trust or confidence.

L. In the event of any failure of performance of this Agreement according to its terms
by any party due to force majeure will not be deemed a breach of this Agreement. For
purposes of this Agreement, “force majeure” shall mean acts of God, State or governmental
action, riots, disturbance, war, strikes, lockouts, slowdowns, prolonged shortage of energy
supplies or any raw material, epidemics, fire, flood, hurricane, typhoon, earthquake,
lightning and explosion or other similar event or condition, not existing as of the date of
signature of this Agreement, not reasonably foreseeable as of such date and not reasonably
within the control of any party hereto, which prevents in whole or in material part the
performance by one of the parties hereto of its obligations hereunder.

 

12

 

M. Except as qualified below, any dispute between you and us or any of our or your
affiliates arising under, out of, in connection with or in relation to this Agreement, the
parties’
relationship, or the business must be submitted to binding arbitration under the
authority of the Federal Arbitration Act and must be arbitrated in accordance with the
then-current rules and procedures and under the auspices of the American Arbitration
Association. The arbitration must take place in Minneapolis, Minnesota, or at such other
place as may be mutually agreeable to the parties. The decision of the arbitrators will be
final and binding on all parties to the dispute; however, the arbitrators may not under any
circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii)
assess punitive or exemplary damages; or (iii) make any award which extends, modifies or
suspends any lawful term of this Agreement or any reasonable standard of business
performance that we set.

Before the filing of any arbitration, the parties agree to mediate any dispute that
does not include injunctive relief or specific performance actions covered below, provided
that the party seeking mediation must notify the other party of its intent to mediate prior
to the termination of this Agreement. Mediation will be conducted by a mediator or mediation
program agreed to by the parties. Persons authorized to settle the dispute must attend any
mediation session. The parties agree to participate in the mediation proceedings in good
faith with the intention of resolving the dispute if at all possible within 30 days of the
notice from the party seeking to initiate the mediation procedures. If not resolved within
30 days, the parties are free to pursue arbitration. Mediation is a compromise negotiation
for purposes of the federal and state rules of evidence, and the entire process is
confidential.

Nothing in this Agreement bars our right to obtain injunctive relief against threatened
conduct that will cause us loss or damages, under the usual equity rules, including the
applicable rules for obtaining restraining orders and preliminary injunctions. Furthermore,
we and our affiliates have the right to commence a civil action against you or take other
appropriate action for the following reasons: to collect sums of money due to us; to compel
your compliance with trademark standards and requirements to protect the goodwill of the
Trademarks; to compel you to compile and submit required reports to us; or to permit
evaluations or audits authorized by this Agreement.

The prevailing party in any action or proceeding arising under, out of, in connection
with, or in relation to this Agreement, any lease or sublease for the Restaurant or
Authorized Location, or the business will be entitled to recover its reasonable attorneys’
fees and costs.

N. During the term of this Agreement, neither we nor you may employ or seek to employ,
directly or indirectly, any person who is at the time or was at any time during the prior 6
months employed in any type of managerial position by the other party or any of its
subsidiaries or affiliates, or by any franchisee in the system, unless the violating party
compensates the former employer for all losses and expenses incurred in losing and replacing
the employee up to a maximum of $25,000, plus attorneys’ fees and expenses. This
subparagraph will not be violated if (i) at the time we or you employ or seek to employ the
person, the former employer has given its written consent or (ii) we employ or seek to
employ the person in connection with the transfer of the Restaurant(s) to us or any of our
affiliates. The parties acknowledge and agree that any franchisee from whom an employee was
hired by you in violation of this subparagraph shall be a third-party beneficiary of this
provision, but only to the extent that they may seek compensation from you.

O. We will designate the “Effective Date” of this Agreement in the space provided on
the cover page. If no Effective Date is designated on the cover page, the Effective Date is
the date when we sign this Agreement.

 

13

 

IN WITNESS WHEREOF, the parties have executed the foregoing Agreement as of the dates written
below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEVELOPER:	 	 	 	FRANCHISOR
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MCA ENTERPRISES, INC.,

a Michigan corporation	 	 	 	BUFFALO WILD WINGS INTERNATIONAL,.
INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	7/10/03	 	Date:	 	7/18/03
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	 	 	/s/ Illegible	 	 
	 	 	 	 	 	 	 
	By:	 	T. Michael Ansley	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	President
	 	 	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Witness:	 	Heidi L. Cornish	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Please type or print)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:	 	/s/ Heidi L. Cornish	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	7/10/03	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Mark C. Ansley	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Mark C. Ansley	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Vice President	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Witness:	 	Michelle Ansley	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Please type or print)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:	 	/s/ Michelle Ansley	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	7/19/03	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Thomas D. Ansley	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Thomas D. Ansley	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Treasurer	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Witness:	 	Michelle Ansley	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Please type or print)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:	 	/s/ Michelle Ansley	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	7-10-03	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Steven Menker	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Steven Menker	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Director	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Witness:	 	Heidi L. Cornish	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Please type or print)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:	 	/s/ Heidi L. Cornish	 	 	 	 	 	 	 	 	 	 

 

14

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 	7/10/03	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Jason Curtis	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Jason Curtis	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Director	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Witness:	 	Stephanie Sidelko	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(Please type or print)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:	 	/s/ Stephanie Sidelko	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

15

 

APPENDIX A

DESCRIPTION OF DEVELOPMENT TERRITORY

The Development Territory shall be the area located within the following boundaries, as they exist
as of the date of execution of the Area Development Agreement:

	1.	 	Territory in the Tampa, Florida area:

	 
	 	 	North Boundary: Pasco County line & Hernando County Line, then eastbound on a line along
Pasco County line to Sumter County Line.

	 
	 	 	East Boundary: Sumter County Line/Pasco County Line southbound to Hillsborough County Line
continuing south along Hillsborough County Line to Mansatee County, then continuing south
along Manatee County line to Rt. 72.

	 
	 	 	South Boundary: Rt. 72 westbound to Gulf of Mexico.

	 
	 	 	West Boundary: Rt. 72 & Gulf of Mexico, then north bound along shoreline of Gulf of Mexico
to Tampa Bay, then follow eastern shoreline of Tampa Bay in a NE direction to city of Tampa;
follow Tampa Bay shoreline around Tampa Bay peninsula, then in a NW direction to
intersection with Tampa Bay shoreline and Hillsborough County line; then northbound along
Hillsborough county line to Pasco County Line eastbound to Rt. 41 northbound to intersection
with Pasco and Hernando County line.

	2.	 	Territory in Pinnellas Park, Florida:

	 
	 	 	North Boundary: South side of Rt. 688

East Boundary: Western shore Tampa Bay

South Boundary: Rt. 92 & western shore Tampa Bay to Roosevelt Blvd. West Boundary: Roosevelt
Blvd

	 	 	 	 	 	 	 	 	 	 	 
	DEVELOPER:	 	FRANCHISOR	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	MCA ENTERPRISES, INC.,
a Michigan corporation	 	BUFFALO WILD WINGS INTERNATIONAL,.
INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	/s/ Illegible	 	 
	 	 	 	 	 
	By:

	 	T. Michael Ansley
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Its: President
	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	/s/ Mark C. Ansley	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Mark C. Ansley	 	 	 	 	 	 	 	 
	 

	 	Its: Vice President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Thomas D. Ansley	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Thomas D. Ansley	 	 	 	 	 	 	 	 
	 

	 	Its: Treasurer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Steven Menker	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Steven Menker	 	 	 	 	 	 	 	 
	 

	 	Its: Director	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Jason Curtis	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Jason Curtis	 	 	 	 	 	 	 	 
	 

	 	Its: Director	 	 	 	 	 	 	 	 

 

16

 

APPENDIX B

DEVELOPMENT SCHEDULE

You acknowledge and agree that a material provision of the Area Development Agreement is that
the following number of BUFFALO WILD WINGS Restaurants must be opened and continuously operating in
the Development Territory in accordance with the following Development Schedule:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Date by Which	 	Date by Which the	 	Cumulative number of
	 	 	 	 	Franchise	 	Restaurant Must be	 	Restaurants Required to
	 	 	 	 	Agreement Must be	 	Opened and	 	be Open and Continuously
	 	 	 	 	Signed and Site	 	Continuously	 	Operating for Business in
	 	 	 	 	Approval Request	 	Operating for	 	the Development
	Restaurant	 	Restaurant	 	Must be Submitted	 	Business in the	 	Territory as of the Date in
	Number	 	Type	 	to us	 	Territory	 	Preceding Column
	1

	 	TBD
	 	Date of this Agreement
	 	July 1, 2004
	 	 	1	 
	2

	 	TBD
	 	August 1, 2004
	 	July 1, 2005
	 	 	2	 
	3

	 	TBD
	 	August 1, 2005
	 	May 1, 2006
	 	 	3	 
	4

	 	TBD
	 	March 1, 2006
	 	February 1, 2007
	 	 	4	 
	5

	 	TBD
	 	August 1, 2006
	 	May 1, 2007
	 	 	5	 
	6

	 	TBD
	 	March 1, 2007
	 	February 1, 2008
	 	 	6	 
	7

	 	TBD
	 	August 1, 2007
	 	May 1, 2008
	 	 	7	 
	8

	 	TBD
	 	March 1, 2008
	 	February 1, 2009
	 	 	8	 
	9

	 	TBD
	 	August 1, 2008
	 	August 1, 2009
	 	 	9	 
	10

	 	TBD
	 	August 1, 2009
	 	May 1, 2010
	 	 	10	 

For purposes of determining compliance with the above Development Schedule, only the
Restaurants actually open and continuously operating for business in the Development Territory as
of a given date will be counted toward the number of Restaurants required to be open and
continuously operating for business.

	 	 	 	 	 	 	 	 	 	 	 
	DEVELOPER:	 	FRANCHISOR	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	MCA ENTERPRISES, INC., 

a Michigan corporation	 	BUFFALO WILD WINGS INTERNATIONAL,.
INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	/s/ Illegible	 	 
	 	 	 	 	 
	By:

	 	T. Michael Ansley
	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Its: President
	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	/s/ Mark C. Ansley	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Mark C. Ansley	 	 	 	 	 	 	 	 
	 

	 	Its: Vice President	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Thomas D. Ansley	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Thomas D. Ansley	 	 	 	 	 	 	 	 
	 

	 	Its: Treasurer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Steven Menker	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Steven Menker	 	 	 	 	 	 	 	 
	 

	 	Its: Director	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Jason Curtis	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By:

	 	Jason Curtis	 	 	 	 	 	 	 	 
	 

	 	Its: Director	 	 	 	 	 	 	 	 

 

17

 

BUFFALO WILD WINGS®

ADDENDUM TO AREA DEVELOPMENT AGREEMENT

This Addendum is executed as of July 18th, 2003 by and between BUFFALO WILD WINGS
INTERNATIONAL, INC. (“we” or “us”) and MCA ENTERPRISES, INC. (“you”), and is appended to, and made
a part of, the BUFFALO WILD WINGS Area Development Agreement, executed between you and us as of the
same date hereof (the “Agreement”). Capitalized terms not defined in this Addendum have the
meanings given to them in the Agreement. In the event of any conflict between the terms of this
Addendum and those in the Agreement, the terms of this Addendum shall control.

The Agreement is hereby amended as follows:

	1.	 	You agree that at least three (3) of the ten (10) Restaurants you are obligated to open under
the Agreement must be open and operated in a free standing location (a single use, single
tenant, unattached building or pad site). Furthermore, you must open and operate at least one
Restaurant in a free standing location for every three Restaurants you open (for example, at
the time you open your third Restaurant you must have opened at least one (1) Restaurant in a
free standing location, at the time you open your sixth Restaurant you must have opened at
least two (2) Restaurants in free standing locations, and so on).

	2.	 	Within 6 months after the date of the Agreement you must employ and keep employed for the
remaining term of the Agreement a full-time development executive; provided, however, that
prior to hiring the development executive, you must obtain our written approval. Your
development executive will be responsible to supervise the development process for your
Restaurants. To qualify for the position, your development executive must, as a minimum, have
prior experience in developing a similar number of restaurants or lodging facilities over a
similar development period. We reserve the right to revoke prior approval of your development
executive at any time. Furthermore, in the event that you fail to open one of your Restaurants
on or before the date set forth in the Development Schedule, you shall, within sixty (60) days
after the missed deadline, hire a new development executive; provided, however, that prior to
hiring the new development executive, you must also obtain our written approval.

	3.	 	We have granted you and/or other entities that are controlled by T. Michael Ansley, Mark C.
Ansley and/or Thomas D. Ansley, the right or option to open and operate various Buffalo Wild
Wings restaurants in the state of Michigan pursuant to several agreement (the “Old
Agreements”), including, but not limited to, the following:

	 	(a)	 	area development agreement between us and Bearcat Enterprises, Inc., dated
December 27, 2002;

	 	(b)	 	franchise agreement between us and Bearcat Enterprises, Inc., dated December
27, 2002;

	 	(c)	 	franchise agreement between us and Flyer Enterprises, Inc., dated January 31,
1999;

(d) franchise agreement between us and Anker, Inc., dated October 10, 2000; and

	 	(e)	 	franchise agreement between us and TMA Enterprises of Novi, Inc., dated October
22, 2001.

We shall have the right to terminate the Agreement in the event that (i) there is an event of
default under any of the Old Agreements by any party other than us; and (ii) you fail to cure, or
cause the appropriate party to cure, the default within 60 days after we provide you written notice
of such default. Nothing herein shall alter in any form any rights or obligations of the parties
under the Old Agreements.

 

18

 

	4.	 	If you fully comply with the Development Schedule during the initial term of the Agreement,
we will grant you the option to develop and operate two (2) additional BUFFALO WILD WINGS
restaurants (the “Additional Restaurants”), subject to the following conditions: (i) the
Additional Restaurants must be open and operated inside the Designated Area of any of the
Restaurants; (ii) the franchise agreements for the Additional Restaurants must be executed no
later than two years after the date in which you open your tenth (10th) Restaurant under the
Agreement; (iii) the Additional Restaurants must be open and in operation no later than two
years and six months after the date in which you open your tenth (10th) Restaurant under the
Agreement; and (iv) you must comply with all the requirements then applicable to new BUFFALO
WILD WINGS franchisees. We will not charge you an Initial Franchise Fee for the additional
restaurant but you will pay the Continuing Fee for such restaurants.

	5.	 	The parties agree that with every Franchise Agreement they execute for each Restaurant to be
developed under the Agreement, they shall execute an “Addendum to Franchise Agreement” in a
form substantially similar to the form attached hereto as Exhibit A.

	6.	 	All provisions of the Agreement that are not expressly modified herein shall continue in full
force and effect.

IN WITNESS WHEREOF, the parties have executed this Addendum as of the date first written
above.

	 	 	 	 	 	 	 	 	 
	DEVELOPER:	 	FRANCHISOR	 	 
	 
	 	 	 	 	 	 	 	 
	MCA ENTERPRISES, INC.,

a Michigan corporation	 	BUFFALO WILD WINGS INTERNATIONAL,. INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	/s/ Illegible	 	 
	 	 	 	 	 
	By:

	 	T. Michael Ansley
	 	By:	 	 	 	 
	 

	 	Its: President
	 	 	Its:	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Mark C. Ansley	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	Mark C. Ansley	 	 	 	 	 	 
	 

	 	Its: Vice President	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Thomas D. Ansley	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	Thomas D. Ansley	 	 	 	 	 	 
	 

	 	Its: Treasurer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Steven Menker	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	Steven Menker	 	 	 	 	 	 
	 

	 	Its: Director	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Jason Curtis	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	Jason Curtis	 	 	 	 	 	 
	 

	 	Its: Director	 	 	 	 	 	 

 

19

 

PERSONAL GUARANTEE AND AGREEMENT TO BE BOUND

PERSONALLY BY THE TERMS AND CONDITIONS 

OF THE AREA DEVELOPMENT AGREEMENT

In consideration of the execution of the Area Development Agreement by us, and for other good
and valuable consideration, the undersigned, for themselves, their heirs, successors, and assigns,
do jointly, individually and severally hereby become surety and guarantor for the payment of all
amounts and the performance of the covenants, terms and conditions in the Area Development
Agreement, to be paid, kept and performed by the developer, including without limitation the
arbitration and other dispute resolution provisions of the Agreement.

Further, the undersigned, individually and jointly, hereby agree to be personally bound by
each and every condition and term contained in the Area Development Agreement and agree that this
Personal Guarantee will be construed as though the undersigned and each of them executed an Area
Development Agreement containing the identical terms and conditions of this Area Development
Agreement.

The undersigned waives: (1) notice of demand for payment of any indebtedness or nonperformance
of any obligations hereby guaranteed; (2) protest and notice of default to any party respecting the
indebtedness or nonperformance of any obligations hereby guaranteed; and (3) any right he/she may
have to require that an action be brought against the developer or any other person as a condition
of liability; and (4) notice of any changes permitted by the terms of the Area Development
Agreement or agreed to by the developer.

In addition, the undersigned consents and agrees that: (1) the undersigned’s liability will
not be contingent or conditioned upon our pursuit of any remedies against the developer or any
other person; and (2) such liability will not be diminished, relieved or otherwise affected by the
developer’s insolvency, bankruptcy or reorganization, the invalidity, illegality or
unenforceability of all or any part of the Area Development Agreement, or the amendment or
extension of the Area Development Agreement with or without notice to the undersigned.

It is further understood and agreed by the undersigned that the provisions, covenants and
conditions of this Guarantee will inure to the benefit of our successors and assigns.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEVELOPER: MCA ENTERPRISES, INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PERSONAL GUARANTORS:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	/s/ Mark C. Ansley	 	 
	 	 	 	 	 
	Individually	 	Individually	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	T. Michael Ansley	 	Mark C. Ansley	 	 
	 	 	 	 	 
	Print Name	 	Print Name	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	820 Cherokee Ave.	 	5585 Old Route 70	 	 
	 	 	 	 	 
	Address	 	Address	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royal Oak

	 	Michigan
	 	48067	 	 	 	Springfield
	 	Ohio
	 	45502	 	 	 	 
	 	 	 	 	 
	City

	 	State
	 	Zip Code
	 	City
	 	State
	 	Zip Code
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	248-894-0434	 	937-325-6543	 	 
	 	 	 	 	 
	Telephone	 	Telephone	 	 

 

20

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Thomas D. Ansley	 	/s/ Steven Menker	 	 
	 	 	 	 	 
	Individually	 	Individually	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Thomas D. Ansley	 	Steven Menker	 	 
	 	 	 	 	 
	Print Name	 	Print Name	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5585 Old 70	 	37899 Maple Hill	 	 
	 	 	 	 	 
	Address	 	Address	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Springfield

	 	Ohio
	 	45502	 	 	 	Harrison Township
	 	Michigan
	 	48045	 	 	 	 
	 	 	 	 	 
	City

	 	State
	 	Zip Code
	 	City
	 	State
	 	Zip Code
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	937-325-6543	 	586-463-1415	 	 
	 	 	 	 	 
	Telephone	 	Telephone	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Jason Curtis	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Individually	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jason Curtis	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8789 Heidi Drive	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Address	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sterling Heights

	 	Michigan
	 	48310	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	City

	 	State
	 	Zip Code
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Telephone	 	 	 	 	 	 	 	 	 	 

 

21Exhibit 10.4

Exhibit 10.4

TRANSFER AGREEMENT

THIS AGREEMENT (the “Agreement”) is made and entered into as of March 20, 2007, by MCA
Enterprises Brandon, Inc. (“MCA”), and T. Michael Ansley (“T. Ansley”), Mark C. Ansley (“M.
Ansley”), Thomas D. Ansley (“T.D. Ansely”), Steven Menker (“Menker”), and Jason Curtis (“Curtis”)
(the “MCA Principals”) (MCA and MCA Principals collectively referred to herein as “Assignor”), and
AMC Wings, Inc., a Michigan corporation (“AMC” or “Assignee”), and Buffalo Wild Wings
International, Inc. (“Franchisor,” “we” or “us”). All capitalized terms not defined in this
Agreement have the respective meanings set forth in the Area Development Agreement (defined below).

BACKGROUND

A. Franchisor and Assignor executed a
Buffalo Wild Wings® Area Development
Agreement on July 18, 2003 (the “ADA”), pursuant to which Franchisor granted Assignor the right to
develop and operate a specified number of Buffalo Wild Wings Restaurants in the
Development Territory (the “Area Development Rights”).

B. Franchisor and Assignor executed a Buffalo Wild Wings Franchise Agreement on July
18, 2003 (the “Brandon Franchise Agreement”), pursuant to which Assignor was granted the right to
operate a Buffalo Wild Wings Restaurant at an Approved Location in Brandon, Florida (the
“Brandon Restaurant”).

C. While Assignor wishes to maintain all rights and interest in the Brandon Franchise
Agreement and Brandon Restaurant, Assignor desires to assign to Assignee all right, title and
interest in the Area Development Rights and the ADA (the “Transfer”).

D. Franchisor is willing to consent to the Transfer pursuant to the provisions stated below.

AGREEMENT

In consideration of the foregoing, the parties agree as follows:

1. Representations of Assignor and Assignee. The parties represent and warrant as
follows:

	 	A.	 	Assignor represents and warrants that MCA Enterprises Brandon, Inc. owns (and
has owned at all times prior) all right, title and interest in and to the ADA and Area
Development Rights, free and clear of any mortgage, lien or claims, and has not
assigned any of its interests in the Area Development Rights or ADA to any third party.

	 	B.	 	Assignee represents and warrants to Franchisor that, as of the Effective
Date, Assignee is a duly formed corporation authorized to engage in the type of
business authorized under the ADA.

	 	C.	 	Assignee represents and warrants that Assignee is a wholly-owned subsidiary
of Diversified Restaurant Holdings, Inc. Assignor and Assignee further represent and
warrant that, on and after the Effective Date, the Transfer shall be completed and AMC
shall be deemed the “developer” under the ADA (“Developer”).

2. Consent by Franchisor. Franchisor consents to the Transfer in accordance with the
terms and conditions of this Agreement. Other than Franchisor’s waiver of its right of first
refusal with respect to the Transfer, Franchisor’s consent will not result in any waiver of rights
or as a release under the ADA, and is not consent to any additional or subsequent assignments.

 

 

 

3. Status of Assignor Following Transfer. Upon and after the Effective Date, Assignor
will not have any interest in the Area Development Rights or the ADA. Assignor, however, will
remain liable for any responsibilities, obligations, and liabilities of MCA under the ADA up to the
Effective Date, including all monetary obligations due to Franchisor, its affiliates and other
third parties under ADA that have accrued as of the Effective Date. Further, following the
Effective Date, Assignor will continue to have an interest in the Brandon Franchise Agreement and
Brandon Restaurant, and will continue to be bound by all obligations and responsibilities related
thereto. Notwithstanding the foregoing or any other provision of Section 9 of the ADA, Assignor
shall not pay a transfer fee.

4. Post-Termination Obligations. MCA, as well as any MCA Principal who does not
acquire or maintain an interest in AMC on or after the Effective Date, acknowledge and agree that,
following the Effective Date, each will continue to be bound by and comply with all
post-termination obligations set forth in Section 8 of the ADA.

5. Indemnification.

	 	A.	 	MCA, T. Ansley, M. Ansley, T.D. Ansley, Menker and Curtis, for themselves,
their respective heirs, successors, assigns, officers, directors, employees, and
agents (collectively, the “MCA Parties” for purposes of this Section 5 and Sections 6
and 8), agree to indemnify and hold harmless Franchisor, its affiliates, successors,
assigns, officers, directors, employees, agents and each of them (collectively, the
“Franchisor Parties” for purposes of this Section 5 and Sections 6, 7 and 8) against
any and all liabilities, damages, actions, claims, costs (including reasonable
attorneys’ fees), or expenses of any nature resulting, directly or indirectly, from
any of the following: (1) any misrepresentations or breaches of warranty by MCA or the
MCA Principals under this Agreement; (2) the Transfer; and (3) any claim, suit or
proceeding initiated by or for a third party(s), now or in the future, that arises out
of or relates to the ADA, Area Development Rights or the business operated by Assignor
prior to the Effective Date.

	 	B.	 	AMC, for itself, and its successors, assigns, officers, directors, employees,
agents, and each of them (collectively, the “AMC Parties” for purposes of this Section
5 and Sections 7 and 8), agree to indemnify and hold harmless the Franchisor Parties
against any and all liabilities, damages, actions, claims, costs (including reasonable
attorneys’ fees), or expenses of any nature resulting, directly or indirectly, from
any of the following: (1) any misrepresentations or breaches of warranty by AMC under
this Agreement; (2) the Transfer; and (3) the operation of the business under the ADA
or the Area Development Rights on and after the Effective Date.

6. Release by the MCA Parties. Except as noted in this Section 6, the MCA Parties
release and forever discharge the Franchisor Parties of and from any and all claims, debts,
liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or
unknown, vested or contingent, which MCA or the MCA Principals may now or in the future own or
hold, that in any way relate to the ADA, the Brandon Franchise Agreement, or the Brandon Restaurant
(collectively referred to as “MCA Claims” for purposes of this Section 6 and 8), for known or
unknown damages or other losses including but not limited to, any alleged
violations of any deceptive or unfair trade practices laws, franchise laws, or other local,
municipal, state, federal or other laws, statutes, rules or regulations, and any alleged violations
of the ADA, the Brandon Franchise Agreement or any other related agreement between us on the one
hand, and MCA, the MCA Principals, their respective affiliates or any combination thereof, on the
other hand.

 

 

 

As to the Brandon Franchise Agreement, Assignor and Franchisor acknowledge and agree that this
release is for Claims arising through the Effective Date, and not to any claims that the MCA
Parties may have for events occurring after the Effective Date.

7. Release by the AMC Parties. Except as noted in this Section 7, the AMC Parties
release and forever discharge the Franchisor Parties of and from any and all claims, debts,
liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or
unknown, vested or contingent, which AMC may now or in the future own or hold, that in any way
relate to the ADA (collectively referred to as “AMC Claims” for purposes of this Section 7 and 8),
for known or unknown damages or other losses including but not limited to, any alleged violations
of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state,
federal or other laws, statutes, rules or regulations, and any alleged violations of the ADA or any
other related agreement between us on the one hand, and AMC or its affiliates, or any combination
thereof, on the other hand.

The AMC Parties and the Franchisor Parties acknowledge and agree that this release is
effective as to AMC Claims arising through the Effective Date, and not to any claims that the AMC
Parties may have for events occurring after the Effective Date.

8. Acknowledgement of Releasors. The release of MCA Claims in Section 6 and AMC
Claims in Section 7 are intended by the MCA Parties and AMC Parties (collectively, the
“Releasors”), to be full and unconditional general releases, as that phrase is used and commonly
interpreted, extending to all claims of any nature, whether or not known, expected or anticipated
to exist in favor of the Releasors against the Franchisor Parties. The Releasors acknowledge that
claims or facts in addition to or different from those which are now known or believed to exist
with respect to the matters mentioned herein may later be discovered and that it is the Releasors’
intention to fully and forever release any and all matters, regardless of the possibility of later
discovered claims or facts. The Releasors further acknowledge that they have had adequate
opportunity to gather all information necessary to enter into this Agreement and to grant the
releases contained herein, and need no further information or knowledge of any kind that would
otherwise influence the decision to enter into this Agreement and release. This release is and
shall be and remain a full, complete and unconditional general release.

9. Personal Guaranty. T. Michael Ansley, AMC, and each of AMC’s shareholders, agree
to execute a personal guaranty in the form attached as Exhibit A to this Agreement (the
“Personal Guaranty”); provided that this requirement will not apply if T. Michael Ansley or any
shareholder has, in connection with the prior execution of the ADA, already executed a personal
guaranty that is currently in force and that is in a form that is substantially similar, as
determined by Franchisor, to the Personal Guaranty. T. Michael Ansley acknowledges that neither
this Agreement, nor any part thereof, shall operate as a release of any claims that Franchisor may
have (now or in the future) that relate to any Personal Guaranty previously executed by T. Michael
Ansley.

10. Delivery of Transfer Documents. Franchisor shall be provided with a complete copy
of all documents evidencing the Transfer.

 

 

 

11. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Minnesota. All legal proceedings relating to this Agreement must be
brought or otherwise commenced in the state or federal courts of Minnesota.

12. Miscellaneous. This Agreement, and the documents referred to herein, represent
the entire agreement among the parties respecting the subject matter hereof. No amendment will be
binding unless in writing and signed by the party against whom enforcement is sought. This
Agreement may be signed in counterparts.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	FRANCHISOR:

Buffalo Wild Wings
International, Inc.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Sally J. Smith	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Sally J. Smith	 	 	 	 	 	 
	 

	 	Title:
	 	President and CEO	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ASSIGNOR:	 	 	 	ASSIGNEE:
	 
	 	 	 	 	 	 	 	 	 	 
	MCA Enterprises Brandon, Inc.	 	 	 	AMC Wings, Inc.
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ T. Michael Ansley	 	 	 	By:	 	/s/ T. Michael Ansley
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	T. Michael Ansley
	 	 	 	 	 	Diversified Restaurant Holdings, Inc.,
	 

	 	Title:
	 	President
	 	 	 	 	 	Sole Shareholder of AMC Wings, Inc.
	 

	 	 	 	 	 	 	 	 	 	Its: President & CEO,

T. Michael Ansley
	 
	 	 	 	 	 	 	 	 	 	 
	T. Michael Ansley, individually	 	 	 	T. Michael Ansley, individually
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	 	 	/s/ T. Michael Ansley
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Steve Menker, individually	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Steve Menker	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Mark C. Ansley, individually	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Mark C. Ansley	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Thomas D. Ansley, individually	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Thomas D. Ansley	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Jason Curtis, individually	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Jason Curtis	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

 

EXHIBIT A

PERSONAL GUARANTY AND AGREEMENT TO BE BOUND

PERSONALLY BY THE TERMS AND CONDITIONS

OF THE FRANCHISE AGREEMENT

In consideration of the execution of the Franchise Agreement (the “Agreement”) between BUFFALO
WILD WINGS INTERNATIONAL, INC. (“we” or “us”) and AMC WINGS, INC. (the “Franchisee”), dated July
18, 2003 and for other good and valuable consideration, the undersigned, for themselves, their
heirs, successors, and assigns, do jointly, individually and severally hereby become surety and
guarantor for the payment of all amounts and the performance of the covenants, terms and conditions
in the Agreement, to be paid, kept and performed by the Franchisee, including without limitation
the arbitration and other dispute resolution provisions of the Agreement.

Further, the undersigned, individually and jointly, hereby agree to be personally bound by
each and every condition and term contained in the Agreement, including but not limited to the
non-compete provisions in subparagraph 10.D, and agree that this Personal Guaranty will be
construed as though the undersigned and each of them executed an agreement containing the identical
terms and conditions of the Agreement.

The undersigned waive (1) notice of demand for payment of any indebtedness or nonperformance
of any obligations hereby guaranteed; (2) protest and notice of default to any party respecting the
indebtedness or nonperformance of any obligations hereby guaranteed; (3) any right he/she may have
to require that an action be brought against the Franchisee or any other person as a condition of
liability; and (4) notice of any changes permitted by the terms of the Agreement or agreed to by
the Franchisee.

In addition, the undersigned consents and agrees that: (1) the undersigned’s liability will
not be contingent or conditioned upon our pursuit of any remedies against the Franchisee or any
other person; (2) such liability will not be diminished, relieved or otherwise affected by the
Franchisee’s insolvency, bankruptcy or reorganization, the invalidity, illegality or
unenforceability of all or any part of the Agreement, or the amendment or extension of the
Agreement with or without notice to the undersigned; and (3) this Personal Guaranty shall apply in
all modifications to the Agreement of any nature agreed to by Franchisee with or without the
undersigned receiving notice thereof.

It is further understood and agreed by the undersigned that the provisions, covenants and
conditions of this Personal Guaranty will inure to the benefit of our successors and assigns.

FRANCHISEE: AMC WINGS, INC.

	 	 	 	 	 	 	 	 	 	 	 
	PERSONAL GUARANTORS:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Diversified Restaurant Holdings, Inc.	 	/s/ T. Michael Ansley
	 	 	 
	Sole Shareholder of AMC Wings, Inc.	 	Individually
	 	 	 	 	 	 	 	 	 	 	 
	/s/ T. Michael Ansley	 	T. Michael Ansley
	 	 	 
	By: T. Michael Ansley, Its President & CEO	 	Print Name
	 	 	 	 	 	 	 	 	 	 	 
	21751 West Eleven Mile Rd., Suite 208	 	820 Cherokee Ave.
	 	 	 
	Address	 	Address
	 	 	 	 	 	 	 	 	 	 	 
	Southfield, Michigan 48076	 	Royal Oak, Michigan 48067
	 	 	 
	City
	 	State
	 	Zip Code
	 	City
	 	State
	 	Zip Code
	 	 	 	 	 	 	 	 	 	 	 
	(248) 894-0434	 	(248) 894-0434
	 	 	 
	Telephone	 	Telephone

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