Document:

exh10-1_franchise.htm

     

     

    
      

      

    

     

     

     

     

     

     

     

     

    EXHIBIT
      10.1

     

    EVOS
      RESTAURANT
      FRANCHISE AGREEMENT

    DATED
      DECEMBER 14,
      2005

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    Page

     

    1.        INTRODUCTION                                                                                                                  
      1

     

    1.1.            The
      EVOS®
System                                                                                                  1

    1.2.            Acknowledgments                                                                                                     
      1

    1.3.            Representations                                                                                                        
      2

    1.4.            No
      Warranties                                                                                                          
2

    1.5.            Business
      Organization                                                                                              
3

     

    2.        GRANT
      AND
      TERM                                                                                                             
4

     

    2.1.            Grant
      of
      Franchise                                                                                                  
4

    2.2.            The
      Term                                                                                                                
4

    2.3.            Trade
      Area                                                                                                             
4

    2.4.            Mass
      Gathering
      Locations                                                                                         4

    2.5.            Rights
      We
      Reserve                                                                                                  
5

     

    3.        SITE
      SELECTION AND
      DEVELOPMENT                                                                               5 

     

    3.1.            Site
      Selection                                                                                                          
5

    3.2.            Relocation
      of the
      Site                                                                                                6

    3.3.            Lease
      of
      Site                                                                                                           
6

    3.4.            Ownership
      and
      Financing                                                                                         10

     

    4.        RESTAURANT
      DEVELOPMENT, DÉCOR
      AND OPERATING
      ASSETS                                  10 

     

    4.1.            Restaurant
      Development                                                                                           10

    4.2.            Décor                                                                                                                     12

    4.3.            Operating
      Assets and Restaurant
      Materials                                                                12

    4.4.            Changes
      to Approved
      Suppliers                                                                                12

    4.5.            Preferred
      Vendor
      Programs                                                                                     13

    4.6.            Music
      and Other Audio and Visual
      Entertainment.                                                      13

    4.7.            Restaurant
      Opening                                                                                                 14

    4.8.            Market
      Introduction
      Program                                                                                    14

     

    5.        FEES                                                                                                                                  15 

     

    5.1.            Initial
      Franchise
      Fee                                                                                                15

    5.2.            Royalty                                                                                                                   15

    5.3.            Electronic
      Funds
      Transfer                                                                                        15

    5.4.            Definition
      of “Gross
      Sales.”                                                                                      15

    5.5.            Interest
      on Late
      Payments                                                                                        15

    5.6.            Late
      Payment
      Penalties                                                                                            16

    5.7.            Application
      of
      Payments                                                                                           16

    5.8.            Payment
      Offsets                                                                                                      16

     

    6.        TRAINING
      AND
      ASSISTANCE                                                                                              16

     

    6.1.            Initial
      Training                                                                                                          16

    6.2.            Periodic
      Training                                                                                                      17

    6.3.            General
      Guidance                                                                                                    17

     

    7.        MARKS                                                                                                                                18 

     

    7.1.            Ownership
      and Goodwill of
      Marks  and
      Copyrights                                                       18

    7.2.            Creation
      or Commissioning of
      Copyrights                                                                    18

    7.3.            Limitations
      on Your Use of Marks and
      Copyrights                                                         19

    7.4.            Notification
      of Infringements and
      Claims                                                                      19

    7.5.            Discontinuance
      of Use of
      Marks                                                                                  19

    7.6.            Indemnification                                                                                                          19

     

    8.        CONFIDENTIAL
      INFORMATION                                                                                             20

     

    
      
        
        

      

      
        
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    8.1.            Types
      of Confidential
      Information                                                                                20

    8.2.            Disclosure
      and Limitations on
      Use                                                                               20

    8.3.            Confidentiality
      Obligations                                                                                           21

    8.4.            Exceptions
      to
      Confidentiality                                                                                        21

     

    9.        EXCLUSIVE
      RELATIONSHIP                                                                                                 
21 

     

    9.1.            Competitive
      Activities                                                                                                 
21

    9.2.            Competitive
      Business                                                                                                
22

    9.3.            Employee
      Retention                                                                                                  
22

     

    10.      OPERATION
      AND SYSTEM
      STANDARDS                                                                              23

     

    10.1.          Operations
      Manual                                                                                                    
23

    10.2.          Compliance
      with System
      Standards                                                                             23

    10.3.          Modification
      of System
      Standards                                                                                25

    10.4.          Interior
      and Exterior
      Upkeep                                                                                        25

    10.5.          Hours
      of
      Operation                                                                                                    
25

    10.6.          Accounting,
      Computers and
      Records                                                                           25

    10.7.          Trade
      Accounts and
      Taxes                                                                                          26

    10.8.          Proprietary
      Materials                                                                                                 
26

    10.9.          Approved
      Products                                                                                                    
26

    10.10.        Management                                                                                                             
      26

    10.11.        Personnel                                                                                                                 
      26

    10.12.        Other
      Services                                                                                                          
27

     

    11.      ADVERTISING
      AND
      PROMOTION                                                                                          27

     

    11.1.          Establishment
      of System
      Fund                                                                                     27

    11.2.          Use
      of the
      Funds                                                                                                       
28

    11.3.          Accounting
      for the
      Fund                                                                                             
28

    11.4.          System
      Fund
      Limitations                                                                                            
28

    11.5.          Local
      Advertising and
      Promotion                                                                                 29

    11.6.          Co-op
      Participation and
      Contributions                                                                         29

    11.7.          Websites                                                                                                                 
      29

    11.8.          Promotion
      of the Franchise
      System                                                                             30

     

    12.      
      RECORDS, REPORTS
      AND FINANCIAL
      STATEMENTS                                                        30

     

    12.1.          Accounting
      System                                                                                                   
30

    12.2.          Reports                                                                                                                    
      30

    12.3.          Access
      to
      Information                                                                                               
31

     

    13.       INSPECTIONS
      AND
      AUDITS                                                                                               
31

     

    13.1.          Our
      Right to Inspect the
      Restaurant                                                                             31

    13.2.          Our
      Right to
      Audit                                                                                                     
32

     

    14.      
      TRANSFER                                                                                                                         
32

     

    14.1.          By
      Us                                                                                                                      
32

    14.2.          By
      You                                                                                                                    
32

    14.3.          Conditions
      for Approval of
      Transfer                                                                             33

    14.4.          Transfer
      to a Business
      Entity                                                                                      34

    14.5.          Transfer
      Upon Death or
      Disability                                                                               34

    14.6.          Operation
      Upon Death or
      Disability                                                                             35

    14.7.          Effect
      of Consent to
      Transfer                                                                                      35

    14.8.          Our
      Right of First
      Refusal                                                                                           35

     

    15.       SUCCESSOR
      TERMS                                                                                                         
36

     

    15.1.          Acquisition                                                                                                              
      36

    15.2.          Grant                                                                                                                      
      37

    15.3.          Agreements/Releases                                                                                              
      37

    15.4.          Training
      and Refresher
      Programs                                                                              38

    
      
        
        

      

      
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      15.5.          Fees
        and
        Expenses                                                                                                 
38

    

    15.6.          Subsequent
      Successor
      Franchises                                                                            38

     

    16.      TERMINATION
      OF
      AGREEMENT                                                                                         
38

     

    16.1.          Termination
      of
      Service                                                                                             
38

    16.2.          On
      Notice                                                                                                               
38

    16.3.          After
      Notice                                                                                                            
40

     

    17.      RIGHTS
      AND OBLIGATIONS UPON
      TERMINATION                                                             41

     

    17.1.          Payment
      of Amounts Owed To
      Us                                                                             41

    17.2.          Marks                                                                                                                    
      41

    17.3.          Confidential
      Information                                                                                          
42

    17.4.          Competitive
      Restrictions                                                                                          
42

    17.5.          Our
      Right to
      Purchase                                                                                             42

    17.6.          Continuing
      Obligations                                                                                            
44

    17.7.          Buyout
      Option                                                                                                        
44

     

    18.      
      RELATIONSHIP
      OF
      THE
      PARTIES/INDEMNIFICATION                                                       45

     

    18.1.          Independent
      Contractors                                                                                        
45

    18.2.          No
      Liability for Acts of Other
      Party                                                                           45

    18.3.          Taxes                                                                                                                    
      46

    18.4.          Indemnification                                                                                                      
      46

     

    19.       ENFORCEMENT                                                                                                               
      46

     

    19.1.          Severability;
      Substitution of Valid
      Provisions                                                             46

    19.2.          Waivers                                                                                                                
      46

    19.3.          Limitation
      of
      Liability                                                                                              
47

    19.4.          Approval
      and
      Consents                                                                                        
  47

    19.5.          Waiver
      of Punitive
      Damages                                                                                  
47

    19.6.          Limitations
      of
      Claims                                                                                             
47

    19.7.          Governing
      Law                                                                                                   
  47

    19.8.          Jurisdiction                                                                                                          
      48

    19.9.          Waiver
      of Jury
      Trial                                                                                              
48

    19.10.        Cumulative
      Remedies                                                                                            
48

    19.11.        Costs
      and Attorneys
      Fees                                                                                     
48

    19.12.        Binding
      Effect                                                                                                      
48

    19.13.        Entire
      Agreement                                                                                                 
48

    19.14.        No
      Liability to Others; No Other
      Beneficiaries                                                         
48

    19.15.        Construction                                                                                                        
      48

    19.16.        Certain
      Definitions                                                                                               
49

    19.17.        Timing
      is of the
      Essence                                                                                      
49

     

    20.        DISPUTE
      RESOLUTION                                                                                                
49

     

    20.1.          Mediation                                                                                                            
      49

    20.2.          Agreement
      to
      Arbitrate                                                                                         
49

    20.3.          Place
      and
      Procedure                                                                                          
 50

    20.4.          Awards
      and
      Decisions                                                                              
          
50

    20.5.          Specific
      Performance                                                                                 
         50

    20.6.          Third
      Parties                                                                                                 
       50

    20.7.          Survival                                                                                                           
          50

     

    21.        NOTICES
      AND
      PAYMENTS                                                                                         
  51

     

     

    EXHIBITS

    EXHIBIT
      A             GLOSSARY

    EXHIBIT
      B             TRAINING
      PROGRAM WAIVER AND RELEASE

    EXHIBIT
      C             OTHER
      SERVICES

    
      
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    EVOS®
      RESTAURANT

    FRANCHISE
      AGREEMENT

     

    THIS
      FRANCHISE AGREEMENT (this “Agreement”) is effective as
      of December 14th, 2005 (the
      “Agreement Date”).  The parties to this Agreement are
EVOS USA, INC., a Florida corporation, with its principal
      business address at 609 South Howard Ave., Tampa, Fl. 33606 (referred to in
      this
      Agreement as “we,” “us” or
“our”), and HEALTHY FAST
      FOOD, INC., whose
      principal business address is 1075 American Pacific - Suite C, Henderson,
      NV  89074 (referred to in this Agreement as “you,”
“your” or “Franchise Owner”).

    

    1.  INTRODUCTION.  Various
      terms are defined in context throughout this Agreement, and a glossary is
      attached as Exhibit “A” for convenience.

     

    

    1.1.  The
      EVOS® System.  We
      and
      our affiliates have expended considerable time and effort in developing the
      EVOS® concept which specializes in serving healthier fast food in a fast-casual
      environment (each an “EVOS® Restaurant” or
“Restaurant”).  EVOS® Restaurants operate under
      the
      Marks and Copyrights and under distinctive business formats, employee selection
      and training programs, methods, procedures, designs, layouts, signs, equipment,
      menus, use of certain soy-based products, recipes, trade dress, standards and
      specifications, all of which we may improve, further develop, change or replace
      or otherwise modify from time to time (the
“System”).  We commission, use, promote and license
      in the operation of an EVOS® Restaurant certain trademarks, service marks and
      other commercial symbols, including the trade and service mark
“EVOS®” and other associated logos, copyrighted works, designs,
      Art, trade dress, trademarks, service marks, commercial symbols, and e-names,
      which will gain or have gained and continue to gain public acceptance and
      goodwill, and may create, commission, use and license additional trademarks,
      service marks, e-names, copyrighted works, Art and commercial symbols in
      conjunction with the operation of EVOS® Restaurants (collectively, the
“Marks”).  We grant to persons who meet our
      qualifications and are willing to undertake the investment and effort, a
      Franchise to own and operate an EVOS® Restaurant offering the products and
      services we authorize and approve and utilizing the Marks and the
      System.  You have applied for a Franchise to own and operate an EVOS®
Restaurant.

    

    1.2.  Acknowledgments.  You
      acknowledge and agree that:

    

    (a)  you
      have read this
      Agreement and our Franchise Offering Circular;

     

    (b)  you
      understand and
      accept the terms, conditions and covenants contained in this Agreement as being
      reasonably necessary to maintain our high standards of quality and service
      and
      the uniformity of those standards at each EVOS® Restaurant and to protect and
      preserve the goodwill of the Marks;

     

    (c)  you
      have conducted
      an independent investigation of the business venture contemplated by this
      Agreement and recognize that, like any other business, the nature of the
      business conducted by an EVOS® Restaurant may evolve and change over
      time;

     

    (d)  an
      investment in an
      EVOS® Restaurant involves business risks;

     

    (e)  your
      business
      abilities and efforts are vital to the success of the venture and the success
      or
      failure of your Restaurant is predominately based on your skills in operating
      and managing it;

     

    
      
        
        

      

      
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    (f)  any
      information you
      acquire from other EVOS® Restaurant franchise owners relating to their sales,
      profits or cash flows does not constitute information obtained from us, nor
      do
      we make any representation as to the accuracy of any such
      information;

     

    (g)  in
      all of their
      dealings with you, our officers, directors, employees and agents act only in
      a
      representative, and not in an individual, capacity.  All business
      dealings between you and such persons as a result of this Agreement are solely
      between you and us; and

     

    (h)  we
      have advised you
      to have this Agreement reviewed and explained to you by an
      attorney.

     

    1.3.  Representations.  As
      an
      inducement to our entry into this Agreement, you represent and warrant to us
      that:

    

    (a)  all
      statements you
      have made and all materials you have submitted to us in connection with your
      purchase of the franchise are accurate and complete and that you have made
      no
      misrepresentations or material omissions in obtaining the
      franchise;

     

    (b)  you
      will at all
      times faithfully, honestly and diligently perform your obligations, continuously
      exert your best efforts to promote and enhance the Restaurant and not engage
      in
      any other business or activity that conflicts with your obligations to operate
      the Restaurant in compliance with this Agreement;

     

    (c)  you
      will comply
      with and/or assist us to the fullest extent possible in our efforts to comply
      with Executive Order 13224 issued by the President of the United States, the
      USA
      PATRIOT Act, and all other present and future federal, state and local laws,
      ordinances, regulations, policies, lists and any other requirements of any
      governmental authority addressing or in any way relating to terrorist acts
      and
      acts of war (the “Anti-Terrorism
      Laws”);  and

     

    (d)  neither
      you nor any
      of your owners, employees, or agents, property or interests are subject to
      being
“blocked” under any of the Anti-Terrorism Laws and that neither you nor they are
      otherwise in violation of any of the Anti-Terrorism Laws.

     

    Our
      approval of
      your request to purchase a franchise is made in reliance on all of your
      representations and warranties.  Any violation of these
      representations or warranties, or any Anti-Terrorism Laws by you or your owners,
      or your or your owners’ agents or employees, or any “blocking” of your or their
      assets under the Anti-Terrorism Laws, will constitute grounds for immediate
      termination of this Agreement and any other agreements you have entered into
      with us or any of our affiliates.

    

    1.4.  No
      Warranties.  We
      expressly disclaim the making of, and you acknowledge that you have not received
      or relied upon, any warranty or guaranty, express or implied, as to the
      revenues, sales, profits or success of the business venture contemplated by
      this
      Agreement or the extent to which we will continue to develop and expand the
      network of EVOS® Restaurants.  You acknowledge and understand the
      following:

    

    (a)  any
      statement
      regarding the potential or probable revenues, sales or profits of the business
      venture, or of any services, benefits or commitments we are to make available
      to
      you, are made solely in the Franchise Offering Circular delivered to you prior
      to signing this Agreement;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b)  any
      statement
      regarding the potential or probable revenues, sales or profits of the business
      venture or statistical information regarding any existing EVOS® Restaurant owned
      by us or our affiliates or that is not contained in our Franchise Offering
      Circular is unauthorized, unwarranted and unreliable and should be reported
      to
      us immediately; and

     

    (c)  you
      have not
      received or relied on any representations about us or our franchising program
      or
      policies made by us, or our officers, directors, employees or agents, that
      are
      contrary to the statements made in our Franchise Offering Circular or to the
      terms of this Agreement.  If there are any exceptions to any of the
      foregoing, you must: (i) immediately notify our President or such other officer
      as we may designate in written notice to you; and (ii) note such exceptions
      by
      attaching a statement of exceptions to this Agreement prior to signing
      it.

     

    1.5.  Business
      Organization.  If
      you are at any time a business organization (“Business Entity”)
      (like a corporation, limited liability company or partnership) you agree and
      represent that:

    

    (a)  you
      have the
      authority to execute, deliver and perform your obligations under this Agreement
      and are duly organized or formed and validly existing in good standing under
      the
      laws of the state of your incorporation or formation;

     

    (b)  your
      organizational
      or governing documents will recite that the issuance and transfer of any
      ownership interests in you are restricted by the terms of this Agreement, and
      all certificates and other documents representing ownership interests in you
      will bear a legend referring to the restrictions of this Agreement;

     

    (c)  the
      Principal
      Owners Statement will completely and accurately describe all of your owners
      and
      their interests in you.  A copy of our current form of Principal
      Owners Statement is attached to the Uniform Franchise Offering
      Circular;

     

    (d)  you
      and your owners
      agree to revise the Principal Owners Statement as may be necessary to reflect
      any ownership changes and to furnish such other information about your
      organization or formation as we may request (no ownership changes may be made
      without our approval);

     

    (e)  each
      of your owners
      during the Term will sign and deliver to us our standard form of Principal
      Owner’s Guaranty undertaking to be bound jointly and severally by all provisions
      of this Agreement and any other agreements between you and us.  A copy
      of our current form of Principal Owners Guaranty is attached to the Uniform
      Franchise Offering Circular; and

     

    (f)  at
      our request, you
      will furnish true and correct copies of all documents and contracts governing
      the rights, obligations and powers of your owners and agents (like articles
      of
      incorporation or organization and partnership, operating or shareholder
      agreements).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    2.           
      GRANT AND TERM

     

    2.1.  Grant
      of Franchise.  You
      have applied for a franchise to own and operate an EVOS® Restaurant only at a
      location we have approved (the “Site”).  Subject to
      the terms of and upon the conditions contained in this Agreement, we grant
      you a
      franchise (the “Franchise”) to: (a) operate an EVOS®
Restaurant at the Site, and at no other location; (b) use
      the Marks and
      Copyrights in connection with operating the Restaurant; and (c) use the
      System in its operation.

    

    2.2.  The
      Term.  The
      term of the Franchise and this Agreement (the “Term”) begins on
      the Agreement Date and expires 10 years from the date your Restaurant opens
      for
      business (the “Opening Date”).  This Agreement may be
      terminated before it expires.

    

    2.3.  Trade
      Area.  We
      grant you the right to an exclusive territory referred to as the Trade
      Area.  The “Trade Area” of your EVOS® Restaurant
      consists of the Site and the geographic area surrounding it indicated, or to
      be
      indicated on Exhibit C.  We may vary the size of Trade Areas to be
      granted to EVOSÒ Restaurants
      in our
      sole judgment, based on the circumstance and our judgment.  Other than
      MGL Sites, we will not approve a Site within the Trade Area of any other EVOS®
Restaurant, whether it is franchised or owned by us.  Other than MGL
      Sites, as long as you are in compliance with this Agreement, we will not grant
      a
      franchise for, nor ourselves operate, an EVOS® Restaurant within your Trade
      Area.  Any MGL Site granted to others will not be deemed to be within
      your Trade Area.

    

    2.4.  Mass
      Gathering Locations.  “Mass
      Gathering Locations” are places where large numbers of individuals
      congregate for various reasons, often due to transit, such as airports, cruise
      ship terminals, train stations, subway stations and the like, or for shopping
      purposes such as indoor and outdoor malls, outlet centers, town centers, and
      the
      like, or for purposes of entertainment like stadiums, amphitheaters, amusement
      parks, theme parks, boardwalks, private and governmental parks, historic sites,
      and the like.  If we determine that we want to develop and operate or
      grant the rights to an affiliate or other third party to develop and operate,
      an
      EVOS® Restaurant, or other kiosk or other limited services facility
      (collectively, a “MGLSite”) at a Mass
      Gathering Location within your Trade Area, we will first notify you of such
      intent and provide you a right of first refusal to enter into a Franchise
      Agreement with us for such MGL Site.  In order to exercise your option
      to obtain a Franchise to operate the MGL Site you must, within 30 days of the
      date we notify you of our intent to establish such MGL Site, comply with all
      of
      the following:

    

    (a)  enter
      into our then
      current form of EVOS® Franchise Agreement for the MGL, which may contain terms
      and conditions different from the form of Franchise Agreement that we offer
      to
      EVOS® Restaurants that are not designated as MGL Sites;

     

    (b)  pay
      to us our then
      current Franchise Fee for the MGL Site;

     

    (c)  qualify
      under our
      then current Standards and Specifications for MGL Site franchise owners as
      meeting our qualifications to operate MGL Sites, which qualifications may differ
      from those of EVOS® Restaurant franchise owners who operate non-MGL Site EVOS®
Restaurants; and

     

    (d)  be
      in full
      compliance with this Agreement and all other agreements between you and us,
      and
      our affiliates.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    We
      may offer you
      the opportunity to, instead of executing our then current form of Franchise
      Agreement for such MGL Site, operate such MGL Site under this
      Agreement.  If we do so, you must enter into an addendum to this
      Agreement indicating such, and thereafter your operation of the MGL Site will
      be
      deemed the same as, and will be treated the same as, the operation of your
      Restaurant.

    

    2.5.  Rights
      We Reserve.  We
      (and our affiliates) retain the right in our sole discretion to ourselves or
      grant others the right:

    

    (a)  to
      solicit
      prospective Franchise owners and grant other persons Franchises, or other rights
      to operate EVOS® Restaurants:  through national or regional advertising,
      trade shows or conventions, or using or through the Internet, Intranet or other
      forms of e-commerce or through similar means;

     

    (b)  to
      own and operate
      EVOS® Restaurants ourselves or through affiliates anywhere, except your Trade
      Area;

     

    (c)  sell,
      solicit,
      recruit and provide services for EVOS® Restaurants or any franchised business
      not defined as an EVOS® Restaurant in this Agreement;

     

    (d)  to
      sell, and
      provide the services authorized for sale by, EVOS® Restaurants under the Marks
      or other trade names, trade­marks, service marks and commercial symbols
      through similar or dis­similar channels (like telephone, mail order, kiosk,
      co-branded sites, at “Mass Gathering Locations,” grocery stores, and sites
      located within other retail businesses, stadiums, Intranet, Internet, websites,
      wireless, email or other forms of e-commerce) for distribution within and
      outside of your Trade Area and pursuant to such terms and conditions as we
      consider appropriate; and

     

    (e)  to
      solicit
      prospective franchise owners for, and own and operate, businesses and
      restaurants of any other kind or nature, anywhere.

     

    
      	
              3.       
                 

            	
              SITE
                SELECTION AND
                DEVELOPMENT.

            

    

     

    3.1.  Site
      Selection.  Within
      180 days after signing this Agreement, you (with or without our assistance)
      must
      locate a Site that we (in our sole judgment) have approved and signed a lease
      that we have indicated is acceptable to us.  If you and we have agreed
      on a Site and Trade Area as of the date you sign this Agreement, it will be
      designated  on Exhibit C at this time.  Otherwise, they will
      be designated on Exhibit C upon our approval of the Site and Trade
      Area.  The Site must meet our criteria for the location of a
      Restaurant (which may or may not include demographic characteristics, traffic
      patterns, parking, character of neighborhood, competition from and proximity
      to
      other businesses and other EVOS® Restaurants, the nature of other businesses in
      proximity to the Site and other commercial characteristics and the size,
      appearance and other physical characteristics of the proposed Site, and any
      other factors or characteristics we consider appropriate).  Our
      criteria, and our evaluation of them, may vary periodically and from location
      to
      location. If you and we are unable to agree on a location for the Site, or
      you
      have not obtained a fully signed lease agreement for the Site, within 180 days
      of the Agreement Date, we may terminate this Agreement.  We will
      approve or disapprove a Site you propose for a Restaurant within 30 days after
      we receive from you a complete Site report and any other materials we
      request.  As part of our approval process, you must conduct and
      provide to us a site selection analysis performed by us or our
      designee.  The fee for one such site selection analysis is included
      with your Franchise Fee.  For the 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

      second
        and each subsequent site selection analysis, if requested by you or if deemed
        necessary and required by us, you must pay to us or our designee our then
        current site selection fee.  If you have not heard from us within such
        30-day period, the Site is deemed disapproved.  No Site or Trade Area
        will be deemed approved by us until we provide to you Exhibit C with that
        Site
        and Trade Area designated in it and Exhibit C is signed by both you and
        us.  You acknowledge and agree that:

    

    

    (a)  our
      recommendation
      or approval of the Site, and any information regarding the Site communicated
      to
      you, do not constitute a representation or warranty of any kind, express or
      implied, as to the suitability of the Site for an EVOS® Restaurant or for any
      other purpose;

     

    (b)  our
      recommendation
      or approval of the Site indicates only that we believe that the Site falls
      within the acceptable criteria for Sites and premises that we have established
      as of the time of our recommendation or approval of the Site;

     

    (c)  application
      of
      criteria that have appeared effective with respect to other sites and premises
      may not accurately reflect the potential for all Sites and premises, and, after
      our approval of a Site, demographic and/or other factors included in or excluded
      from our criteria could change to alter the potential of a Site and premises;
      and

     

    (d)  the
      uncertainty and
      instability of such criteria are beyond our control, and we will not be
      responsible for the failure of a Site and premises we have recommended or
      approved to meet expectations as to potential revenue or operational
      criteria.

     

    3.2.  Relocation
      of the Site.  You
      may not operate the Restaurant from any location other than the Site without
      our
      prior written consent.  If we consent to the Restaurant’s relocation,
      we have the right to charge you for the expenses we incur in connection with
      the
      relocation and to require you to conduct a site selection analysis. Our or
      our
      designee’s current fee for such site selection analysis will be included among
      our expenses incurred in your relocation.  If the lease expires or
      terminates without expiration or termination being your fault, if the Site
      is
      destroyed, condemned or otherwise rendered unusable as an EVOS® Restaurant in
      accordance with this Agreement, or if in our sole judgment, there is a change
      in
      character of the location of the Site sufficiently detrimental to its business
      potential to warrant your Restaurant’s relocation, we will permit you to
      relocate the Restaurant to another location within the Trade Area provided
      that
      you comply with all of our System Standards for a Site relocation and such
      relocation Site meets our then current Site criteria for relocation
      Sites.  Any relocation of the Site will be at your sole
      expense.  If you seek to obtain our approval of the replacement Site
      and lease in accordance with our then current Site approval process, you must
      reopen the Restaurant at the replacement Site as soon as practicable, but in
      no
      event more than 90 days after the closing of the original Site.  You
      are not permitted to relocate the Restaurant except pursuant to this
      section.  In addition for each day that the EVOS® Restaurant is closed
      pending relocation pursuant to this section, you must pay to us an amount equal
      to:  (1) the aggregate of all Royalties paid by you during the 12
      month period immediately preceding the Restaurant’s closure divided by 365, if
      the Restaurant has been operating continuously throughout such 12 month period;
      or (2) the aggregate of all Royalties paid by you during the 12 month period
      that the EVOS® Restaurant was operating continuously, if less than 12 months,
      divided by the number of days in such period.  You must make such
      payments to us during such period on a weekly basis.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.3.  Lease
      of
      Site.

     

    (a)  Lease
      of Site:  You
      must deliver copies of the proposed lease agreement and related documents to
      us
      prior to signing them.  You must not sign any lease agreement or
      related documents unless we have previously approved them.  The
      insurance policy required by our System Standards must be in force and effect
      when the lease is signed.  Additionally, before entering into such a
      lease, you and the lessor must sign our then-current form of Collateral
      Assignment and Assumption of Lease (the “Lease
      Assignment”).  You must give the lessor our forms of the
      Lease Assignment when you begin discussions with the prospective
      lessor.  If you want to lease the Site from any of your affiliates (or
      affiliates of your principal owners), we may also require them to sign such
      agreements to ensure compliance with the provisions of this
      Agreement.

     

    (b)  Lease
      Approval:  You
      must obtain our approval of the lease of the Site (the “Lease”)
      before you sign it, or any renewal of it.  You must deliver a copy of
      the signed lease to us within 5 days after its execution along with the Lease
      Assignment.  You must not sign any lease or renewal of a lease unless
      you have also obtained the Lease Assignment signed by the lessor.  Our
      review and approval of the Lease is solely to ensure that the Lease contains
      terms that we accept or require for our benefit and the franchise System; it
      is
      not a substitute for careful review and analysis by you and your
      advisors.  Our approval of the Lease does not constitute warranty or
      any assurance that the Lease contains terms and conditions for your
      benefit.  You agree and acknowledge that you are solely responsible
      for negotiating the Lease and ensuring that its terms and conditions meet your
      interests and objectives.

     

    (c)  Mandatory
      Lease Terms:  We
      may
      require that the lease or any renewal contain certain provisions
      that:

     

    
      	
              (i)  

            	
              expressly
                permits the lessor of the Site to provide us with all revenue and
                other
                information it may have related to the operation of your EVOS® Restaurant
                as we may request;

            

    

     

    
      	
              (ii)  

            	
              requires
                the
                lessor to contemporaneously provide us with copies of any written
                notice
                of default under the lease sent to you and which grants to us, at
                our
                option, the right (but not the obligation) to cure any default under
                the
                lease (should you fail to do so) within 15 days after the expiration
                of
                the period in which you may cure the
                default;

            

    

     

    
      	
              (iii)  

            	
              in
                the event
                of your default of the lease or the Franchise Agreement, and upon
                written
                notice from us (the “Assignment Notice”)
                the lease will, at our option, be assigned to us, we will become
                the
                lessee, we will be liable for all obligations under the lease accruing
                once we take possession, and the landlord will recognize us as the
                lessee
                as of the date of the Assignment
                Notice.

            

    

     

    
      	
              (iv)  

            	
              authorizes
                your right to display the Marks in accordance with the specifications
                required by the Manuals, subject only to the provisions of applicable
                law;

            

    

     

    
      	
              (v)  

            	
              requires
                that
                any lender or other person will not disturb your possession of the
                Site so
                long as the lease term continues and you are not in default (along
                with
                such documents as are necessary to ensure that such lenders and other
                persons are bound);

            

    

     

    
      	
              (vi)  

            	
              expressly
                states that any default under the lease which is not cured within
                any
                applicable cure period also constitutes grounds for termination of
                this
                Agreement;

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	
              (vii)  

            	
              a
                lease term
                which is at least equal to the Term, either through an initial term
                of
                that length or rights, at your option, to renew the lease for the
                Term;

            

    

     

    
      	
              (viii)  

            	
              the
                lease
                cannot be modified or canceled with our prior written approval;
                and

            

    

     

    
      	
              (ix)  

            	
              we
                will be
                permitted unrestricted access to the Site to inspect the Art and
                remove
                any of the Art at any time.

            

    

     

    (d)  Copies
      of Reports:  You
      must also send us copies of any sales or other reports sent to any
      landlord.

     

    (e)  Indemnification:  You
      agree to indemnify and hold us and our affiliates, stockholders, directors,
      officers and representa­tives harmless from and against any and all losses,
      liabilities, claims, proceedings, demands, damages, judgments, injuries,
      attorneys’ fees, costs and expenses, that they incur resulting from any claim
      brought against any of them or any action which any of them are named as a
      party
      or which any of them may suffer, sustain or incur by reason of, or arising
      out
      of, your breach of any of the terms of the Lease, including the failure to
      pay
      rent or any other terms and conditions of the Lease.

     

    (f)  Security
      Interest:  You
      grant to us a security interest in and to all of the furniture, fixtures,
      inventory and sup­plies located in the Restaurant, the franchise and all of
      your rights, title and interest in and to the Lease, as collateral for the
      payment of any obligation, liability or other amount you or your affiliates
      owe
      to us under this Agreement.  If you breach or default under the Lease,
      or if we pay the Lessor any money as a result of your breach of the Lease,
      then
      you will be in breach of this Agreement, or if you are otherwise in breach
      of
      this Agreement, then we will be entitled to possession of the Site and to all
      of
      your rights, title and interest in the Lease, without limitation on any other
      remedies available to us under this Agreement, at law or in equity, or under
      any
      other agreements between you and us.  This Agreement constitutes a
      lien on your interest in the Lease until satisfaction in full of all amounts
      you
      owe us.  In addition, our rights to assume all obligations under the
      Lease are totally optional on our part, to be exercised in our sole
      discretion.  You agree to sign any and all Uniform Commercial Code
      financing statements and all other documents and instruments we deem necessary
      to perfect or document the interests and assignments granted in this
      Agreement.

     

    (g)  No
      Subordination:  You
      will not permit the Lease to become subordinate to any lien without first
      obtaining our written consent, other than the lien created by this Agreement,
      the Lessor’s lien under the Lease, liens securing bank financing for your
      operations on the Site and the agreements and other instruments referenced
      in
      this Agreement.  You will not terminate, modify or amend any of the
      provisions or terms of the Lease without our prior written
      consent.  Any attempt at termination, modification or amendment of any
      of the terms without such written consent is null and void.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (h)  Exercise
      of Remedies:  In
      any
      case of your default under the terms of the Lease or under this Agreement,
      we
      are entitled to exercise any one or more of the following remedies in our sole
      discretion:

     

    
      	
              (i)  

            	
              to
                take
                possession of the Site, or any part thereof, personally, or by our
                agents
                or attorneys;

            

    

     

    
      	
              (ii)  

            	
              to,
                in our
                discretion, without notice and with or without process of law, enter
                upon
                and take and maintain possession of all or any part of the Site,
                together
                with all furniture, fixtures, inventory, books, records, papers and
                accounts of the Franchise Owner;

            

    

     

    
      	
              (iii)  

            	
              to
                exclude
                you, your agents or employees from the
                Site;

            

    

     

    
      	
              (iv)  

            	
              as
                attorney-in-fact for you, or in our own name, and under the powers
                herein
                granted, to hold, operate, manage and control the Restaurant and
                conduct
                the business, if any, thereof, either per­sonally or by its agents,
                with full power to use such measures, legally rectifiable, as in
                its
                discretion may be deemed proper or necessary to cure such default,
                including actions of forcible entry or detainer and actions in distress
                of
                rent, granting full power and authority to us to exercise each and
                every
                of the rights, privileges and powers herein granted at any and all
                times
                hereafter;

            

    

     

    
      	
              (v)  

            	
              to
                cancel or
                terminate any unauthorized agreements or subleases entered into by
                you,
                for any cause or ground which would entitle us to cancel the
                same;

            

    

     

    
      	
              (vi)  

            	
              to
                disaffirm
                any unauthorized agreement, sublease or subordinated lien, to make
                all
                necessary or proper repairs, decorating, renewals, replace­ments,
                alterations, additions, betterments and improvements to the Site
                or the
                Site that may seem judicious, in our sole
                judgment;

            

    

     

    
      	
              (vii)  

            	
              at
                our
                option, with or without prior notice to you, enter the Site and remove
                the
                Art and any other signage bearing our Marks, copyrighted materials
                or
                trade dress, at your expense;

            

    

     

    
      	
              (viii)  

            	
              to
                insure and
                reinsure the same for all risks incidental to our possession, operation
                and management thereof; and/or

            

    

     

    
      	
              (ix)  

            	
              notwithstanding
                any provision of this Agreement, to declare all of your rights, but
                not
                obligations under the Agreement, to be immediately terminated as
                of the
                date of your default under the
                lease.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (i)  Power
      of Attorney:  You
      irrevocably appoint us as your true and lawful attorney-in-fact in your name
      and
      stead and authorize us, upon any default under the Lease or under this
      Agreement, with or without taking possession of the Site, to rent or lease
      the
      Site to any person, firm or corporation upon such terms and conditions as,
      in
      our discre­tion, we may determine, and with the same rights and powers and
      immunities, exoner­ation of liability and rights of recourse and indemnity
      as we would have upon taking possession of the Site pursuant to the provisions
      set forth in the Lease.  The power of attorney conferred upon us
      pursuant to this Agreement is a power coupled with an interest and cannot be
      revoked, modified or altered without the written consent of the
      Franchisor.

     

    (j)  No
      Warranty:  You
      acknowledge that our approval of the Site and the Lease does not constitute
      a
      guarantee or warranty, express or implied, of the successful operation or
      profitability of an EVOS® Restaurant operated at the Site.  Such
      approval indicates only that we believe that the Site and the terms of the
      Lease
      fall within the acceptable criteria we have established as of the time of our
      approval.  You further acknowledge that we have advised you to have an
      attorney review and evaluate the Lease.

     

    3.4.  Ownership
      and Financing.  Instead
      of leasing a Site, you may propose to purchase and own any or all of a Site
      directly, or through affiliates.  The insurance required by this
      Agreement and our System Standards must be in force and effect when you begin
      construction of your Restaurant.  If at any time prior to acquisition,
      or subsequently, you or your affiliates propose to obtain any financing with
      respect to the Site or for your Restaurant or for any Operating Assets in which
      any of such items are pledged as collateral securing your performance, the
      form
      of any purchase contract with the seller of a Site and any related documents,
      and the form of any loan agreement with or mortgage in favor of any lender
      and
      any related documents, must be approved by us before you sign
      them.  Our consent to them may be conditioned upon the inclusion of
      various terms and conditions, including the following:

    

    (a)  a
      provision which
      requires any lender or mortgagee concurrently to provide us with a copy of
      any
      written notice of deficiency or default under the terms of the loan or mortgage
      sent to you or your affiliates or the purchaser;

     

    (b)  a
      provision
      granting us, at our option, the right (but not the obligation) to cure any
      deficiency or default under the loan or mortgage (should you fail to do so)
      within 15 days after the expiration of a period in which you may cure such
      default or deficiency; and

     

    (c)  a
      provision which
      expressly states that any default under the loan or mortgage, if not cured
      within the applicable time period, constitutes grounds for termination of this
      Agreement and any default under this Agreement, if not cured.

     

    
      	
              4.       
                 

            	
              RESTAURANT
                DEVELOPMENT, DÉCOR AND OPERATING
                ASSETS.

            

    

     

    4.1.  Restaurant
      Development.  You
      are responsible for developing the Restaurant.  We will, to the extent
      we deem necessary or appropriate, furnish you with mandatory and suggested
      specifications and layouts for an EVOS® Restaurant, including requirements for
      dimensions, design, color scheme, image, interior layout, décor, and Operating
      Assets which include fixtures, equipment, signs, and
      furnishings.  Following our approval of the Site and its Lease, unless
      your Restaurant is an existing operating EVOS® Restaurant at the Site being
      purchased by you from another franchise owner, we will furnish to you one or
      more sets of design plans for 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

      EVOS®
        Restaurants developed by us or our affiliates
        (“Designs”).  These sample designs are merely to
        provide guidance on the design and layout of other EVOS®
Restaurants.  We make no representation or warranty concerning the
        suitability of the sample Designs for your Site.  Unless your EVOS®
Restaurant is an operating EVOS® Restaurant at the Site being purchased by you
        from another franchise owner, we will also furnish to you our System Standards
        with respect to trade dress and other matters of development of the Site
        which,
        you agree are an integral part of the System and you agree that you will
        design
        and construct the EVOS® Restaurant in accordance with them.  You are
        obligated at your expense to have an architect prepare preliminary layout
        for
        the EVOS® Restaurant and all required construction plans, space plans, and
        specifications to suit the shape and dimensions of the Site
        (“Construction Plans”) and to ensure that such Construction
        Plans and specifications comply with applicable ordinances, building codes
        and
        permit requirements and with lease requirements and restrictions, and the
        mandatory specifications and layout provided by us.  You must make
        changes to the Construction Plans that we specify from time to time during
        the
        development of the Restaurant and must not begin construction, remodeling
        or
        other development of the Restaurant until we have approved the Construction
        Plans.  You must make no changes to the approved Construction Plans
        unless such changes are presented to and approved by us in
        writing.  Despite our providing the sample Designs (and Construction
        Plans, if any), any changes and approval that we might provide for them,
        and
        your purchase of the Restaurant and its assets from an affiliate of ours
        or our
        franchise owner, where we have approved such transfer (if applicable), as
        between you and us, and our affiliates or other franchise owners, you are
        solely
        responsible for complying with all laws, ordinances, rules and regulations
        relating directly or indirectly to the construction and development of the
        EVOS®
Restaurant, including the Americans With Disabilities Act and any other laws,
        rules or regulations regarding public accommodations for persons with
        disabilities.  You are solely responsible, as between us (and our
        affiliates or other franchise owners) and you, for any and all claims,
        liabilities, costs and images relating to non-compliance or alleged
        non-compliance with any such laws, rules, ordinances or regulations, and
        you
        must remedy, at your expense, any such non-compliance or alleged
        non-compliance.  You agree to, at our option, assign to us, or require
        your architect to assign to us, the plans, drawings or Designs, used by you
        in
        connection with the Restaurant, or at our option, obtain the architect’s
        agreement to license to us such plans, drawings or Designs for use in connection
        with the EVOS® Restaurants.  You will not hire, engage or use any
        construction firm, contractor or architect that we
        disapprove.

    

    

    Without
      limiting your foregoing obligations,
      you agree, at your own expense, to do the following with respect to developing
      the Restaurant at the Site:

    

    (a)  secure
      and provide
      us proof of your securing all financing required to develop and operate the
      Restaurant;

     

    (b)  obtain
      all
      building, utility, sign, health, sanitation, business and other permits and
      licenses required to construct and operate the Restaurant;

     

    (c)  construct
      all
      required improvements to the Site and decorate the Restaurant in compliance
      with
      Construction Plans and specifications we have approved (the
“Construction”);

     

    (d)  you
      must give us
      notice of commencement of the Construction within 10 days of the date it began,
      with progress reports including digital photographs of the construction
      supporting the findings at least every 2 weeks; thereafter.  We will,
      at your expense, require that additional digital photographs be provided to
      us;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (e)  the
      Construction
      must be completed within the earlier of 180 days of our approval of the Site
      (unless we agree otherwise) or 9 months of the Agreement Date;

     

    (f)  sign
      a lease or
      otherwise obtain the right to occupy the Site within 180 days of the Agreement
      date;

     

    (g)  purchase
      or lease
      and install all Operating Assets required for the Restaurant;

     

    (h)  purchase
      an opening
      inventory of authorized and approved products, materials and supplies;
      and

     

    (i)  purchase
      from us
      (or our designees) the paintings, pictures, photographs, murals, drawings,
      sculptures and other forms of art we designate, for display at your Site and
      install it at the Restaurant in accordance with our specifications at your
      expense.

     

    4.2.  Décor.  You
      agree that all décor of your Restaurant must be previously approved by us and
      must comply with our standards as described in the Manuals or other
      communications, which may be periodically revised.  We own all
      copyrights in and to all forms of art or other visual media displayed in the
      Restaurant including murals, paintings, pictures, drawings, sculptures, and
      photographs that we direct you to display (including any artwork commissioned
      for the Restaurant) (the “Art”), as well as all intellectual
      property rights in and to the Art. You will not, without our prior written
      permission, allow any of the Art to become a fixture to the Restaurant and
      you
      will not display or use the Art in any Competitive Business or restaurant of
      any
      kind.  Your failure to maintain the Restaurant’s décor in compliance
      with our System and the standards described in the Manuals or otherwise
      constitutes a material breach of this Agreement.

    

    4.3.  Operating
      Assets and Restaurant Materials.  You
      must acquire all supplies, materials, food and beverage products and magazines,
      reading materials and the like for use in connection with your EVOS® Restaurant
      (collectively, the “Restaurant Materials”) and all fixtures,
      furnishings, equipment signs, Art and cash registers, telecopiers and computer
      hardware and software (the “Operating Assets”) from us (or our
      affiliates) or suppliers we have previously approved.  We will only
      approve suppliers whose Restaurant Materials and Operating Assets meet the
      quality standards that we establish from time to time.  You will only
      place or display at the Site (interior and exterior) such signs, emblems,
      lettering, logos and display materials that we periodically
      approve.

    

    4.4.  Changes
      to Approved Suppliers.  If
      you
      want to propose a new supplier of Restaurant Materials or Operating Assets,
      you
      must submit to us sufficient written information about the proposed new supplier
      to enable us to approve or reject either the supplier or the particular
      items.  If we have not responded within 30 days of our receipt of the
      information, then the application will be deemed rejected by us.  We
      may consider in providing such approval not just the quality standards of the
      products or services, but their delivery capabilities, financing terms and
      ability to service our franchise System as a whole.  We may terminate
      or withhold approval of any Restaurant Materials or Operating Assets, or any
      supplier of such items, that does not meet our quality standards by giving
      you
      written notice.  If we do so, you must immediately stop purchasing
      from such supplier or using such Restaurant Materials or Operating Assets in
      your EVOS® Restaurant until we notify you that such supplier or such Restaurant
      Materials or Operating Assets meet our quality standards.  At our
      request, you must submit to us sufficient information about a proposed supplier
      and 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

      samples
        of the proposed Restaurant Materials or Operating Assets for our examination
        so
        that we can determine whether they meet our quality standards.  We
        also must have the right to require our representatives to be permitted to
        inspect the proposed supplier’s facilities at your expense.  We may
        charge a fee for evaluating alternative suppliers of  $250 per day for
        personnel time plus laboratory fees, professional fees and travel and living
        expenses as well as any other fees we pay to third parties in furtherance
        of the
        evaluation.

    

    

    4.5.  Preferred
      Vendor Programs.  In
      addition to our approval of approved suppliers, we may develop certain programs
      and terms under which we, our affiliates, certain franchise owners or others
      receive certain negotiated benefits or terms from approved suppliers
      (“Preferred Vendor Programs”).  You must follow all
      of our policies and procedures for participation in or termination of Preferred
      Vendor Programs (“Program Rules”).  We can refuse or
      terminate your participation in Preferred Vendor Programs without terminating
      your Franchise Agreement.  And, our Program Rules may include all
      requirements that you agreed to, and you must agree to, only place or display
      at
      the Restaurant (interior and exterior) such signs, emblems, lettering, logos
      and
      display materials that we periodically approve in connection with Preferred
      Vendor Programs.  We may, in connection with our Preferred Vendor
      Programs, designate one or more approved suppliers as an exclusive or the
      exclusive supplier or suppliers of types, models or brands of Restaurant
      Materials or Operating Assets or other business services that we approve for
      EVOS® Restaurants as meeting our specifications and standards in such preferred
      vendors or other preferred vendors may be required by us to pay to us, the
      System Fund or through our affiliates, in a manner we designate, monies or
      provide other benefits as condition of our designation of them as preferred
      vendors or permission for them to serve as an approved supplier or preferred
      vendor (collectively “Preferred Vendors”).  We may
      require, and certain approved suppliers we designate as Preferred Vendors may
      require, that you agree to enter into certain agreements with them (subject
      to
      our approval) in connection with our designation of them as Preferred Vendors
      or
      approved suppliers or your participation in the Preferred Vendor Program
      (“Preferred Vendor Agreements”).  We may require that
      we be a party to such Preferred Vendor Agreements with Preferred
      Vendors.  You acknowledge and agree that:  (a) monies or
      other remuneration that we receive in connection with Preferred Vendor Programs
      or other benefits we receive from Preferred Vendors or approved suppliers is
      fair and appropriate compensation to us in connection with our active efforts
      to
      evaluate them as Preferred Vendors or approved suppliers, our ongoing efforts
      to
      monitor and evaluate whether they continue to meet our requirements for
      participation as Preferred Vendors or approved suppliers and our administration
      of Preferred Vendor Programs; and (b) such monies or remuneration are fully
      earned by us; and (c) we are not your agents nor does the development or
      implementation of such Preferred Vendor Programs create any fiduciary, vicarious
      or agency relationship between you and us. We and our affiliates may retain
      all
      revenue and other remuneration we receive from approved suppliers or Preferred
      Vendors without restriction (unless the supplier or vendor requires
      otherwise).  We, in our sole judgment, may concentrate purchases with
      one or more approved suppliers or Preferred Vendors to obtain lower prices,
      advertising support and/or services for the benefit of us, our affiliates and
      EVOS® Restaurants, or for any other reason that we deem appropriate, and
      establish supply facilities or servicing capabilities owned by us or our
      affiliates which we may designate as an approved supplier or Preferred
      Vendor.  In such instances, we may limit the number of suppliers,
      approved suppliers or Preferred Vendors with whom you may deal, designate
      sources that you must use, and refuse any request by you for another approved
      supplier or Preferred Vendor of any applicable product or service.

    

    4.6.  Music
      and Other Audio and Visual Entertainment.  You
      acknowledge and agree that the provision of music and audio and visual
      entertainment to patrons of EVOS® Restaurants is an integral part of the
      System.  Accordingly, you agree to play only the type(s) of music and
      display only the types of visual 

     

     

    
      
        
        

      

      
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      entertainment,
        at
        the decibel levels and in the manners that we may periodically prescribe
        or
        approve.  You must acquire and install any audio or visual equipment
        that we designate or require for use by EVOS® Restaurants and you must subscribe
        to music and video services as we may periodically specify, whether as an
        approved supplier or Preferred Vendor, to enable you to broadcast videos,
        music,
        live performance and other content as specified by us from time to
        time.  You must, to the extent and at the times and manners we
        designate, permit live performances of music and other entertainment at your
        Restaurant and must obtain our prior written consent prior
        to your doing so, in accordance with our System Standards.  You must
        install such types of reading and other visual material display equipment
        and
        furniture we designate, and must provide to your customers such fee-for use
        and
        free use reading and other visual materials we designate or approve (like
        magazines, newspapers, books, etc.).

    

    

    4.7.  Restaurant
      Opening.  You
      agree not to open the Restaurant for business until:

    

    (a)  we
      approve the
      Restaurant as developed in accordance with our specifications and
      standards;

     

    (b)  pre-opening
      training has been completed to our satisfaction and you provide us with evidence
      you and your management personnel have completed training at authorized
      facilities;

     

    (c)  the
      initial
      franchise fee and all other amounts then due to us, your landlord, governmental
      authorities and our suppliers have been paid;

     

    (d)  you
      have obtained
      all required building, utility, sign, health, sanitation, business permits,
      certificates and licenses required to operate the Restaurant;

     

    (e)  we
      have been
      furnished with copies of all insurance policies required by this Agreement,
      or
      such other evidence of insurance coverage and payment of premiums as we request
      or accept; and

     

    (f)  we
      have received
      signed counterparts of all required documents pertaining to your acquisition
      of
      the Site (including any required agreements between you and us).

     

    (g)  we
      have provided
      you with written authorization to open the Restaurant for business.

     

    You
      agree to open
      the Restaurant for business within 9 months following the Agreement Date (unless
      we agree otherwise).

    

    4.8.  Market
      Introduction Program.  We
      may
      require you to conduct a market introduction advertising and promotional program
      for the Restaurant prior to and after its opening and to expend not less than
      $5,000 for such purpose, exclusive of the cost of food, that we specify for
      use
      in the market introduction program.  The market introduction may be
      conducted over an approximate 6-month period which will be determined by
      us.  Such advertising and promotion will utilize the marketing and
      public relations programs and media and advertising materials we have developed
      or approved, and is separate from your other marketing and advertising
      requirements.

    

    
      
        
        

      

      
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              5.       
                 

            	
              FEES.

            

    

     

    5.1.  Initial
      Franchise Fee.  You
      will pay us an initial franchise fee (the “Franchise Fee”) in
      the amount of $35,000 on the Agreement Date.   The Franchise Fee
      is nonrefundable and fully earned by us when paid.

    

    5.2.  Royalty.  You
      agree to pay us a royalty (“Royalty”) in the amount of 5.5% of
      your Restaurant’s Gross Sales during each Accounting Period.  On the
      3rd day (the
      “Report Day”) of each Accounting Period, you must report the
      amount of your Gross Sales for the preceding Accounting
      Period.  “Accounting Period” is that period we
      designate in the Manual (currently a 7-day accounting period for Royalty and
      Marketing calculations that runs from Monday through Sunday and a 4, 4, 5-week
      accounting period for financial statement purposes). You must pay us the Royalty
      so that we receive it on or before the 3rd business
      day
      following the end of each Accounting Period (the “Payment Day”)
      (currently Wednesday) for the immediately preceding Accounting
      Period.

    

    5.3.  Electronic
      Funds Transfer.  We
      may
      require you to pay any amounts due us, including the Royalties, to us by
      electronic funds transfer on the due date.  You must comply with the
      procedures we specify in our Manuals and perform such acts and sign and deliver
      such documents as may be necessary to accomplish payment by this
      method.  On the Report Day designated in the Manual (currently
      Wednesday), you must report to us by telephone or electronic means or on written
      form, as we direct, the Restaurant’s true and correct Gross Sales for the
      immediately preceding week.  We may require you to give us
      authorization, in a form that we designate, to initiate debit entries or credit
      correction entries to the Restaurant’s bank operating account (the
“Account”) for payments of Royalties and other amounts due
      under this Agreement, including any applicable interest charges.  If
      so, you must make the funds available in the Account for withdrawal by
      electronic transfer no later than the Payment Day.  The amount
      actually transferred from the Account to pay Royalties will be based on the
      Restaurant’s Gross Sales reported to us on the Report Day.  If you
      have not reported the Restaurant’s Gross Sales to us for any reporting period,
      we may transfer from the Account an amount calculated in accordance with our
      reasonable estimate of the Restaurant’s Gross Sales during any such reporting
      period.  If we determine at any time that you have under-reported
      Gross Sales or underpaid Royalties or other amounts due to us, we will be
      authorized to immediately initiate a transfer from the Account in the
      appropriate amount in accordance with the foregoing procedures, including
      applicable interest and late charges.  Any overpayment will be
      credited to the Account through a credit, effective as of the first Report
      Day
      after you and we determine that such credit is due.

    

    5.4.  Definition
      of “Gross Sales.”  As
      used
      in this Agreement, the term “Gross Sales” means the total
      actual gross charges for all products (food and non-food) and services sold
      to
      customers of the Restaurant for cash or credit, whether these sales are made
      at
      or from the Restaurant premises, or any other location.  Gross Sales
      also includes any remuneration or monies you receive from the sale, lease,
      barter or creation of any products or services bearing our Marks or which are
      directly or indirectly related to the Restaurant, regardless from where such
      activities take place (i.e., internet sales, etc.).  However, any
      amounts that you collect and transmit to state or local authorities as sales,
      use or other similar taxes are excluded from the definition of Gross
      Sales.

    

    5.5.  Interest
      on Late Payments.  All
      amounts which you owe us, including but not limited to Royalties, Accounting
      System Fees, System Contributions and Co-op Contributions, will bear interest
      after their due date at the annual rate of eighteen 18% or the highest contract
      rate of interest permitted by law, whichever is 

     

    
      
        
        

      

      
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      less.  You
        acknowl­edge that we do not agree to accept any payments after they are due
        nor commit to extend credit to, or otherwise finance your operation of, the
        Restaurant.  Your failure to pay all amounts when due constitutes
        grounds for termination of this Agreement.

    

    

    5.6.  Late
      Payment Penalties.  All
      Royalties, System Contributions, amounts due for purchases by you from us,
      and
      any interest accrued thereon, and any other amounts which you owe us, or our
      affiliates, are subject to a late payment fee of  $250 for payment or
      report received by us 5 days after its due date.  The late payment fee
      is due immediately on any delinquent payments and for dishonored
      checks.  The provision in this Agreement concerning late payment fees
      does not mean that we accept or condone late payments, nor does it indicate
      that
      we are willing to extend credit to, or otherwise finance, the operation of
      your
      Restaurant.  In the event that you are delinquent in providing payment
      or reports during any 2 or more Accounting Periods, we may require you to pay
      all amounts due us by electronic transfer or cashier’s check.

    

    5.7.  Application
      of Payments.  Notwithstanding
      any designation you might make, we, in our sole judgment, may apply any of
      your
      pay­ments to any of your past due indebt­edness to us.  You
      acknowledge and agree that we have the right to set off any amounts you or
      your
      owners owe us against any amounts we might owe you or your owners.

    

    5.8.  Payment
      Offsets.  We
      may
      setoff from any amounts that we may owe you any amount that you owe to us,
      or
      our affiliates, for any reason whatsoever, including without limitation,
      Royalties, System Contributions, late payment penalties and late payment
      interest, amounts owed to us or our affiliates for purchases or services or
      for
      any other reason.  Thus, payments that we make to you may be reduced,
      in our discretion, by amounts that you owe to us or our affiliates from time
      to
      time.  In particular, we may retain (or direct to our affiliates) any
      amounts that we have received for your account as a credit and payment against
      any amounts that you may owe to us, or our affiliates, at any
      time.  We may do so without notice to you at any
      time.  However, you do not have the right to offset payments owed to
      us for amounts purportedly due to you from us.

    

    
      	
              6.       
                 

            	
              TRAINING
                AND ASSISTANCE.

            

    

     

    6.1.  Initial
      Training.  Before
      the Restaurant opens, we will furnish initial training on the operation of
      an
      EVOS® Restaurant to you and 1 other person (or, if you are a Business Entity, up
      to 2 of your owners—or 1 owner and 1 manager) (“Initial
      Training”).  If space is available at such Initial Training
      session, we will furnish Initial Training for up to 3 additional people at
      no
      additional charge.  The Initial Training lasts for 4 to 6 weeks and
      will be furnished at our designated training facility and/or at an operating
      EVOS® Restaurant, as we specify.  You, or your owners, are required to
      complete the Initial Training to our satisfaction.  We, in our sole
      judgment, may change, modify, amend or designate the content and process of
      Initial Training.  Successful completion of the Initial Training
      program by you, or your owners, is a condition to the opening of the EVOS®
Restaurant to the public.  You also are required to participate in all
      other activities required to operate the Restaurant.  Although we will
      furnish Initial Training to you, or your owners, at no additional fee or other
      charge, you will be responsible for all travel and living expenses which such
      persons incur in connection with Initial Training and any other training we
      require or recommend.  You agree to replace an employee if we
      determine that he or she is not qualified to serve at the
      Restaurant.  If we determine that you, or your owners, are unable to
      complete Initial Training to our satisfaction, we have the right to terminate
      this Agreement.  If this Agreement is terminated for any reason, you
      will sign a general release, in form satisfactory to us, of any and all claims
      against us and our shareholders, officers, directors, employees and
      agents.  If you fail to satisfactorily complete the Initial Training,
      we will terminate the Agreement. As part of your 

     

    
      
        
        

      

      
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      Initial
        Training, we will provide your Restaurant an “opening team” consisting of such
        numbers and types of personnel we designate, for such time period as we may
        designate, to assist you with the operational, administrative, customer service
        and advertising aspects of operating your Restaurant.  We require you,
        at your expense, to provide on-site meals and beverages to the opening team
        while it provides assistance to you.  You must fully cooperate with
        the efforts of the opening team.  However, if you are a transferee of
        an existing EVOS® Restaurant, we are not obligated to provide you an opening
        team or any on-site assistance.

    

    

    6.2.  Periodic
      Training.  We
      may
      require you, or your owners, to attend periodic supplemental, additional or
      refresher training courses or training conferences at such times and locations
      that we designate, and we may charge fees for such courses (collectively,
“Additional Training”).  Currently, we require you or
      your designee (i.e., your manager or 1 other person) to attend up to 4 days
      of
      Additional Training offered on a regional basis, and/or one annual training
      conference of up to 3 days.  You agree to give us reasonable
      assistance in training other EVOS® Restaurant franchise owners.  We
      will reimburse you for your reasonable out-of-pocket expenses in providing
      such
      assistance. All persons attending Additional Training are required to sign
      our
      standard Liability Waiver and Release, a copy of which is attached as Exhibit
      “B.”  All persons attending Initial Training, Additional Training or
      any other training we provide are required to sign our standard Liability Waiver
      and Release, a copy of which is attached as Exhibit “B.”  During any
      training we provide, neither you nor your personnel will be our
      employees.  Therefore, neither you nor your trainees will be covered
      by our workmens compensation insurance.

    

    6.3.  General
      Guidance.  We
      will advise you from time to time regarding the operation of the Restaurant
      based on reports you submit to us or inspections we make.  In
      addition, we will furnish guidance to you with respect to:

    

    (a)  standards,
      specifications and operating procedures and methods utilized by EVOS®
Restaurants;

     

    (b)  purchasing
      required
      fixtures, furnishings, equipment, signs, products, materials and
      supplies;

     

    (c)  recipes,
      food
      preparation methods, and menu items;

     

    (d)  use
      of suppliers,
      approved products, volume buying;

     

    (e)  advertising
      and
      marketing programs;

     

    (f)  employee
      training;
      and

     

    (g)  administrative,
      bookkeeping and accounting procedures.

     

    Such
      guidance will,
      in our sole judgment, be furnished in our Manual, bulletins or other written
      materials and/or during telephone consultations, e-mails, web-based or other
      electronic means and/or consultations at our office or the
      Restaurant.

    

    At
      your request, we will furnish additional
      guidance and assistance and, in such a case, may charge the per diem fees and
      charges we establish from time to time.  If you request or we require
      additional or special training for your employees, all of the expenses that
      we
      incur in connection with such training, including per diem charges and travel
      and living expenses for our personnel, will be your responsibility.

    

    
      
        
        

      

      
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              7.      
                  

            	
              MARKS.

            

    

     

    7.1.  Ownership
      and Goodwill of Marks  and Copyrights.  As
      between you and us, we own all rights, title and interest in and to all
      information capable of being rendered into tangible form (i.e., copyrights)
      created in connection with or used in connection with the System or your
      Restaurant (collectively, the “Copyrights”).  The
      Copyrights include, for example, the Art, written materials, electronic data,
      Software, Manuals, menus, brochures, music, live performances, photography,
      the
      content and compilation of websites, graphics, and the like.  Your
      right to use the Marks and the Copyrights is derived solely from this Agreement
      and limited to your operation of the Restaurant at the Site pursuant to and
      in
      compliance with this Agreement and all System Standards we prescribe from time
      to time during the Term.  Your unauthorized use of the Marks and the
      Copyrights will be a breach of this Agreement and an infringement of our rights
      in and to the Marks and the Copyrights.  You acknowledge and agree
      that your usage of the Marks and the Copyrights and any goodwill established
      by
      such use will be exclusively for our benefit and that this Agreement does not
      confer any goodwill or other interests in the Marks or the Copyrights upon
      you
      (other than the right to operate the Restaurant in compliance with this
      Agreement).  All provisions of this Agreement applicable to the Marks
      and the Copyrights apply to any additional proprietary trade and service marks,
      Copyrights and commercial symbols we authorize you to use.  If you
      commission any Copyrights for your Site or for any use in connection with the
      operation of your Restaurant, you will be responsible for requiring the artist
      and any other person who may claim copyrights, moral rights, privacy rights,
      publicity rights or any other intellectual property rights in or to that
      Copyrights (including any aspect of the content or composition of it), to assign
      to us all rights, title and interest in and to
      the  Copyrights.  To the extent such assignment is not
      possible or obtainable, you must require that such persons failing to grant
      to
      us such assignment grant to us an unconditional, royalty free, world-wide,
      multi-site, multi user, irrevocable, freely assignable license to use, license,
      modify, reproduce, make commercial use of, and make derivative works from or
      of,
      the Copyrights and all attributes of and to it. You acknowledge and agree that
      title to all of the Copyrights is and will at all times remain with and be
      held
      solely by us, and you neither have nor will make any claim with respect the
      ownership of the Copyrights.  You will not (i) make any express
      or implied representations to any person that you own the Copyrights or have
      rights in or to it that are superior to our rights in and to it, (ii) grant
      or purport to grant any security interest or lien in or on any of the Copyrights
      to any other person, or (iii) permit or suffer to exist any lien on any of
      the Copyrights in favor of any other person. You must discharge at your expense
      any lien asserted against the Copyrights (other than liens imposed thereon
      by
      our acts or omissions) and to take such steps as may be necessary, from time
      to
      time, to preserve all of our rights in the Copyrights against third
      parties.

    

    7.2.  Creation
      or Commissioning of Copyrights.
      You agree to,
      prior to commissioning, utilizing, purchasing or licensing any Copyright,
      require all persons who claim intellectual property, privacy, publicity or
      moral
      rights in or to the Copyrights (other than us) sign such assignments or licenses
      as we may designate from time to time.  Between you and us, you agree
      that we will be deemed to own all aspects of the physical embodiment of the
      Copyrights.  We may also hire artists to commission the Copyrights and
      you will be required to pay to us our then current fees for commissioning
      shipment or installation of the Copyrights, which will be due, at our option,
      prior to commencement of the work by the artist, or prior to shipment, upon
      delivery or otherwise in accordance with applicable policies and procedures
      we
      may establish from time to time. Your payment to us of fees for commissioning
      the Copyrights will not be deemed your purchase of the Copyrights and only
      constitutes payment to us to help, in whole or in part, offset our cost to
      commission the Copyrights.

    

    
      
        
        

      

      
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    7.3.  Limitations
      on Your Use of Marks and Copyrights.  You
      agree to use the Marks and Copyrights we designate and in the manner we
      designate as the sole identification of the Restaurant, except that you agree
      to
      identify yourself as the independent owner in the manner we
      prescribe.  You may not use modifying words, terms, designs or symbols
      (other than logos we license to you), or in any modified form, nor may you
      use
      any Mark or Copyright in connection with the performance or sale of any
      unauthorized services or products or in any other manner we have not expressly
      authorized in writing.  No Mark or Copyright may be used in any
      advertising concerning the transfer, sale or other disposition of the Restaurant
      or an ownership interest in you.  You agree to display the Marks and
      Copyrights prominently in the manner we prescribe at the Restaurant, on supplies
      or materials we designate and in connection with forms and advertising and
      marketing materials.  You agree to give such notices of trade and
      service mark registra­tions as we specify and to obtain any fictitious or
      assumed name registrations required under applicable law.

    

    7.4.  Notification
      of Infringements and Claims.  You
      agree to notify us immediately of any apparent infringement or challenge to
      your
      use of any Mark or Copyright, or of any claim by any person of any rights in
      or
      to any Mark or Copyright, and you agree not to communicate with any person
      other
      than us, our attorneys and your attorneys in connection with any such
      infringe­ment, challenge or claim.  We have sole discre­tion
      to take such action as we deem appropriate and the right to control exclusively
      any litigation, U.S. Patent and Trademark Office or U.S. Copyright Office
      proceeding or any other administrative proceeding arising out of any such
      infringement, chal­lenge or claim or otherwise relating to any Mark or
      Copyright.  You agree to sign any and all instruments and documents,
      render such assistance and do such acts and things as, in the opinion of our
      attorneys, may be necessary or advisable to protect and maintain our interests
      in any litigation or Patent and Trademark Office, U.S. Copyright Office or
      other
      proceeding or otherwise to protect and maintain our interests in the Marks
      and
      Copyrights.

    

    7.5.  Discontinuance
      of Use of Marks.  If
      it
      becomes advisable at any time in our sole judgment for us and/or you to modify
      or discontinue the use of any Mark or Copyright and/or use one or more
      additional or substitute trade or service marks, including the complete
      replacement of any Mark or Copyright and usage of other marks or copyrights
      (due
      to merger, acquisition or otherwise), you agree to com­ply with our
      directions within a reasonable time after receiving notice.  We will
      not reimburse you for any loss of revenue attributable to any modified or
      discontinued Mark or Copyright or for any expenditures you make to change Marks
      or Copyrights or to promote or use a modified or substitute trademark or service
      mark.

    

    7.6.  Indemnification.  We
      will indemnify you against and reimburse you for all damages for which you
      are
      held liable to third parties in any proceeding arising out of your authorized
      use of any of our Marks or Copyrights, pursuant to and in compliance with this
      Agreement, resulting from claims by third parties that your use of any of the
      Marks or Copyrights infringes their trademark rights, and for all costs you
      reasonably incur in the defense of any such claim in which you are named as
      a
      party, so long as you have timely notified us of the claim and have otherwise
      complied with the terms of this Agreement.  We will not indemnify you
      against the consequences of your use of the Marks or Copyrights except in
      accordance with the requirements of this Agreement.  You must provide
      written notice to us of any such claim within 10 days of your receipt of such
      notice and you must tender the defense of the claim to us.  We will
      have the right to defend any such claim and if we do so, we will have no
      obligation to indemnify or reimburse you for any fees or disbursements of any
      attorney retained by you.  If we elect to defend the claim, we will
      have the right to manage the defense of the claim including the right to
      compromise, settle or otherwise resolve the claim, and to determine whether
      to
      appeal a final determination of the claim.

    

    
      
        
        

      

      
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              8.      
                  

            	
              CONFIDENTIAL
                INFORMATION.

            

    

     

    8.1.  Types
      of
      Confidential Information.  We
      possess (and will continue to develop and acquire) certain confidential
      information (the “Confidential Information”) relating to the
      development and operation of EVOS® Restaurants, which includes (without
      limitation):

    

    (a)  the
      System and the
      know-how related to its use;

     

    (b)  plans,
      specifications, size and physical characteristics of EVOS®
Restaurants;

     

    (c)  Site
      selection
      criteria and Site development methods;

     

    (d)  methods
      in
      obtaining licensing and meeting regulatory requirements;

     

    (e)  sources
      and design
      of equipment, furniture, forms, materials and supplies;

     

    (f)  marketing,
      advertising and promotional programs for EVOS® Restaurants;

     

    (g)  staffing
      and
      delivery methods and techniques for personal services;

     

    (h)  the
      selection,
      testing and training of personnel for EVOS® Restaurants;

     

    (i)  the
      recruitment,
      qualification and investigation methods to secure employment for employment
      candidates;

     

    (j)  any
      computer
      software we make available or recommend for EVOS® Restaurants;

     

    (k)  methods,
      techniques, formats, specifications, procedures, information and systems related
      to and knowledge of and experience in the development, operation and franchising
      of EVOS® Restaurants;

     

    (l)  knowledge
      of
      specifications for and suppliers of certain products, materials, supplies,
      furniture, furnishings and equipment;

     

    (m)  recipes,
      formulas,
      preparation methods and serving techniques;

     

    (n)  knowledge
      of
      operating results and financial performance of EVOS® Restaurants other than
      those operated by you (or your affiliates); and

     

    (o)  e-commerce
      related
      data (e.g., customer data, click-stream data, cookies, user data, hits and
      the
      like).

     

    (p)  patents
      and
      copyrights secured by us or our affiliates.

     

    8.2.  Disclosure
      and Limitations on Use.  We
      will disclose much of the Confidential Informa­tion to you and personnel of
      the Restaurant by furnishing the Manuals to you and by pro­viding training,
      guidance and assistance to you.  In addition, in the course of the
      opera­tion of your Restaurant, you or your personnel may 

     

    
      
        
        

      

      
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      develop
        ideas, copyrightable works, con­cepts, methods, techniques or improvements
        (“Improvements”) relating to your Restaurant, which you agree
        to disclose to us.  We will be deemed to own the Improvements and may
        use them and authorize you and others to use them in the operation of EVOS®
Restaurants.  Improvements will then also constitute Confidential
        Information.

    

    

    8.3.  Confidentiality
      Obligations.  You
      agree that your rela­tionship with us does not vest in you any interest in
      the Confidential Information other than the right to use it in the development
      and operation of your Restaurant, and that the use or duplication of the
      Confidential Information in any other busi­ness would constitute an unfair
      method of competi­tion.  You acknowledge and agree that the
      Confidential Information is proprietary, includes trade secrets belonging to
      us
      and is dis­closed to you or authorized for your use solely on the condition
      that you agree, and you therefore do agree, that you:

    

    (a)  will
      not use the
      Confidential Information in any other business or capacity;

     

    (b)  will
      maintain the
      absolute confidentiality of the Confidential Infor­mation during and after
      the Term;

     

    (c)  will
      not make
      unauthorized copies of any portion of the Confiden­tial Infor­mation
      disclosed via electronic medium, in written form or in other tangible form,
      including, for example, the Manuals; and

     

    (d)  will
      adopt and
      implement all reasonable procedures we may pre­scribe from time to time to
      prevent unauthorized use or disclosure of the Confi­dential Information,
      including, restrictions on disclosure to your employees and the use of
      nondisclosure and noncompetition agreements we may prescribe for employees
      or
      others who have access to the Confi­dential Information.

     

    8.4.  Exceptions
      to Confidentiality.  The
      restrictions on your disclosure and use of the Confidential Information will
      not
      apply to the following:

    

    (a)  disclosure
      or use
      of information, processes, or techniques which are generally known and used
      in
      the Restaurant business (as long as the availability is not because of a
      disclosure by you), provided that you have first given us written notice of
      your
      intended disclosure and/or use; and

     

    (b)  disclosure
      of the
      Confidential Information in judicial or administrative proceedings when and
      only
      to the extent you are legally compelled to disclose it, pro­vided that you
      have first given us the opportunity to obtain an appropriate protective order
      or
      other assur­ance satisfactory to us that the information required to be
      disclosed will be treated confidentially.

     

    
      	
              9.       
                 

            	
              EXCLUSIVE
                RELATIONSHIP.

            

    

     

    9.1.  Competitive
      Activities.  During
      the term, you and your owners must devote your full attention to the development
      and operation of your EVOSÒ
      Restaurant.  Therefore, during the term, neither you nor any of your
      owners may have a direct or indirect ownership interest (disclosed or
      beneficial) of 5% or greater in any other business in which you have an active
      role as an officer, director, employee manager, partner or member, and that
      you
      will comply with our System Standards for devotion of your full attention and
      efforts to, and your active participation in your EVOSÒ
      Restaurant.  Without our prior written permission, neither you nor any
      of 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

      your
        owners may serve as an officer, director, employee, manager, member, independent
        contractor, partner,  or consultant, for or maintain operational role
        in any other business venture.  You also acknowledge and agree that we
        would be unable to protect Confidential Information against unauthorized
        use or
        disclosure or to encourage a free exchange of ideas and information among
        EVOS®
Restaurants if franchised owners of EVOS® Restaurants were permitted to hold
        interests in or perform services for a Competitive Business (defined
        below).  You also acknowledge that we have granted the Franchise to
        you in consideration of and reliance upon your agreement to deal exclusively
        with us.  You agree that, during the Term, neither you nor any of your
        owners (nor any of your or your owners’ spouses or children)
        will:

    

    

    (a)  have
      any direct or
      indirect interest as a disclosed or beneficial owner in a Competitive Business
      operating at the Site or within 50 miles of the Site;

     

    (b)  have
      any direct or
      indirect controlling interest as a disclosed or beneficial owner in a
      Competitive Business, wherever located;

     

    (c)  have
      any direct or
      indirect interest as a disclosed or beneficial owner in a Competitive Business
      operating within 50 miles of any EVOS® Restaurant other than the
      Restaurant;

     

    (d)  perform
      services as
      a director, officer, manager, employee, consultant, representative, agent or
      otherwise for a Competitive Business, wherever located; or

     

    (e)  recruit
      or hire any
      person who is our employee or the employee of any EVOS® Restaurant without
      obtaining the prior written permission of that person’s employer.

     

    9.2.  Competitive
      Business.  The
      term “Competitive Business” as used in this Agreement means any
      business or facility owning, operating or managing, or granting franchises
      or
      licenses to others to do so, any restaurant or food service facility (other
      than
      an EVOS® Restaurant operated under a franchise agreement with us) that offers
      casual dining, catering, delivery service, kiosk-type or take-out of smoothies,
      shakes, healthier fare or organic or natural type sandwiches, wraps, burgers,
      salads, vegetable burgers, turkey burgers, soy burgers and other soy-based
      foods, lower fat French fries, lower carb foods, specialty ketchup, or any
      type
      of deli or fast foods and beverages which are then offered
      by EVOS® Restaurants.

    

    9.3.  Employee
      Retention.  You
      acknowledge and agree that:  (a) we and our affiliates have expended
      and will expend substantial time and expense in training our and their
      employees; and (b) we and our affiliates (as applicable), will suffer
      substantial injury, with respect to which it is extremely difficult and
      impracticable to calculate actual damages, if you or your affiliates breach
      this
      Agreement with respect to solicitation of our or our affiliates’ or franchise
      owners’ employees.  Accordingly, in an effort to liquidate in advance
      the sum that would represent the damages caused by such solicitation, you agree
      that you will pay to the affected employer an amount equal to the Annualized
      Compensation paid by us or such affiliate or franchise owner to any employee
      of
      ours, our affiliate or our franchise owners who leaves such employment directly
      or indirectly as a result of your breach of this
      Agreement.  “Annualized Compensation” means the
      aggregate compensation (including wages/salary, bonus and other employer’s cost
      of all taxes and benefits) payable to such employee: (i) an amount equal to
      the
      aggregate compensation for such employee for such 12 months; or during the
      12
      month period immediately preceding the date of such employee’s departure from
      the previous employment; or (ii) if not, 

     

    
      
        
        

      

      
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      then
        12
        times the aggregate monthly compensation of such employee.  You
        acknowledge and agree that this amount, which will be due and payable within
        30
        days of your receipt of our invoice, is a fair and reasonable amount to be
        recovered as liquidated damages and will not constitute a penalty or
        forfeiture.  The amount will be paid to the former
        employer.

    

    

    
      	
              10.       

            	
              OPERATION
                AND SYSTEM STANDARDS.

            

    

     

    10.1.  Operations
      Manual.  We
      will loan you, during the Term, one copy of our manuals (the
“Manuals”), consisting of such materials (including, as
      applicable, audiotapes, videotapes, magnetic media, computer software and
      written materials) that we generally furnish to franchise owners from time
      to
      time for use in operating an EVOS® Restaurant.  We, at our option, may
      furnish the Manuals via the Computer System or other electronic (like via
      e-mail, fax, CD, DVD, website or intranet access) or hard copy
      form.  The Manuals contain mandatory and suggested specifications,
      standards, operating procedures and rules (“System Standards”)
      that we prescribe from time to time for the operation of an EVOS® Restaurant and
      information relating to your other obligations under this Agreement and related
      agreements.  You agree to follow the standards, specifications and
      operating procedures we establish periodically for the EVOS® System that are
      described in the Manuals.  You also must comply with all updates and
      amendments to the EVOS® System as described in newsletters or notices we
      distribute, including via computer systems.  You must maintain the
      Manuals as confidential and maintain the information in the Manuals as secret
      and confidential.  The Manuals may be modified, updated and revised
      from time to time to reflect changes in System Standards.  You agree
      to keep your copy of the Manuals current and in a secure location at the
      Restaurant.  In the event of a dispute relating to its contents, the
      master copy of the Manuals we maintain at our principal office will be
      controlling.  You may not at any time copy, duplicate, record or
      otherwise reproduce any part of the Manuals.  If your copy of the
      Manuals is lost, destroyed or significantly damaged, you agree to obtain a
      replacement copy at our then applicable charge.

    

    10.2.  Compliance
      with System Standards.  You
      acknowl­edge and agree that your advertising, operation and maintenance of
      the Restaurant in accordance with System Standards are essential to preserve
      our
      goodwill including the goodwill of the System, Marks, Copyrights and all EVOS®
Restaurants.  Therefore, at all times during the Term, you agree to
      operate and maintain the Restaurant in accordance with each and every System
      Standard, as we periodically modify and supplement them during the
      Term.  System Standards may regulate any one or more of the following
      with respect to the Restaurant:

    

    (a)  design,
      layout,
      décor, appearance and lighting; periodic maintenance, cleaning and sanitation;
      periodic remodeling; replacement of obsolete or worn-out leasehold improvements,
      fixtures, furnishings, media, equipment and signs; periodic painting; and use
      of
      interior and exterior signs, emblems, lettering and logos, and
      illumination;

     

    (b)  types,
      models and
      brands of required fixtures, furnishings, equipment, signs, software, materials
      and supplies;

     

    (c)  required
      or
      authorized products and product categories including for all Other Services
      and
      all food and beverage items, audio or visual media, recipes and portions devoted
      to each supplier of products;

     

    
      
        
        

      

      
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    (d)  designated
      or
      approved suppliers (which may include us) of fixtures, furnishings, audio or
      visual media, Copyrights, equipment, signs, software, products, ingredients,
      materials and supplies including for all food and beverage items;

     

    (e)  terms
      and
      conditions of the sale and delivery of, and terms and methods of payment for,
      products, materials, supplies and services, including direct labor, that you
      obtain from us, unaffiliated suppliers or others;

     

    (f)  sales,
      marketing,
      advertising and promotional programs and materials and media used in such
      programs;

     

    (g)  use
      and display of
      the Marks or Copyrights;

     

    (h)  staffing
      levels for
      the Restaurant and matters relating to managing the Restaurant; communication
      to
      us of the identities of the Restaurant’s personnel; and qualifications,
      training, dress and appearance of employees;

     

    (i)  days
      and hours of
      operation of the Restaurant;

     

    (j)  participation
      in
      market research and testing and product and service development
      programs;

     

    (k)  acceptance
      of
      credit cards, gift certificates, loyalty or gift card programs; coupons, other
      payment systems and check verification services;

     

    (l)  bookkeeping,
      accounting, data processing and record keeping systems, including software,
      and
      forms; methods, formats, content and frequency of reports to us of sales,
      revenue, financial performance and condition; and furnishing tax returns and
      other operating and financial information to us;

     

    (m)  types,
      amounts,
      terms and conditions of insurance coverage required to be carried for the
      Restaurant and standards for underwriters of policies providing required
      insurance coverage; our protection and rights under such policies as an
      additional named insured; required or impermissible insurance contract
      provi­sions; assignment of policy rights to us; periodic verification of
      insurance coverage that must be furnished to us; our right to obtain insurance
      coverage for the Restaurant at your expense if you fail to obtain required
      coverage; our right to defend claims; and similar matters relating to insured
      and uninsured claims;

     

    (n)  the
      maximum prices
      you may charge and advertise for certain menu items;

     

    (o)  complying
      with
      applicable laws; obtaining required licenses and permits; adhering to good
      business practices; observing high standards of hon­esty, integrity, fair
      dealing and ethical business conduct in all dealings with cus­tomers,
      suppliers and us; and notifying us if any action, suit or proceeding is
      commenced against you or the Restaurant;

     

    (p)  your
      purchase, use
      and display of audio or visual media, display devices or furniture for your
      Restaurant’s customers, and the manner of your sale or lending such media to
      them; and

     

    
      
        
        

      

      
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    (q)  regulation
      of such
      other aspects of the operation and maintenance of the Restaurant that we
      determine from time to time to be useful to preserve or enhance the efficient
      operation, image or goodwill of the Marks and EVOS® Restaurants.

     

    You
      agree that
      System Standards prescribed from time to time in the Manual, or otherwise
      communicated to you in writing or other tangible form, constitute provisions
      of
      this Agreement as if fully set forth.  All references to this
      Agreement include all System Standards as periodically modified.

    

    10.3.  Modification
      of System Standards.  We
      may
      periodically modify System Standards, which may accommo­date regional or
      local variations as we determine, and any such modifications may obligate you
      to
      invest additional capital in the Restaurant (“Capital
      Modifications”) and/or incur higher operating costs; provided, however,
      that such Capital Modifications will not alter your fundamental status and
      rights under this Agreement.  You are obligated to comply with all
      modifications to System Standards within the time period we
      specify.  Capital Modifications are in addition to the costs you will
      incur to repair, replace or refurbish your equipment and fixtures from time
      to
      time.  Capital Modifications do no include any expenditures you must,
      or choose to make solely in order to comply with applicable laws, or
      governmental rules or  regulations (e.g. ADA compliance).

    

    10.4.  Interior
      and Exterior Upkeep.  You
      must at all times maintain the Restaurant’s interior and exterior and the
      surrounding area in the highest degree of cleanliness, orderliness and
      sanitation and comply with the requirements regarding the upkeep of the
      Restaurant established in the Manuals and by federal, state and local
      laws.

    

    10.5.  Hours
      of
      Operation.  You
      must operate the Restaurant during the hours and on the days prescribed by
      us in
      the Manuals or otherwise approved in advance in writing by us.

    

    10.6.  Accounting,
      Computers and Records.  You
      must provide your own internet service provider, with access via IDSL or other
      medium we designate.  You must use in developing and operating the
      Restaurant the MIS System, including computer equipment and operating and
      accounting software (the “Computer System”) that we
      periodically specify.  We may require you to obtain specified computer
      hardware or software and may modify specifications for any components of the
      Computer System from time to time.  Our modifications and
      specifications for components of the Computer System may require you to incur
      costs to purchase, lease or license new or modified computer hardware or
      software to obtain service and support for the Computer System during the
      term.  You agree to incur such costs in connection with obtaining the
      computer hardware and software comprising the Computer System (or additions
      or
      modifications)  as long as the Computer System we specify for use is
      the same Computer System that we, or our affiliates, then currently use in
      EVOS®
Restaurants that we, or they, own and operate.  Within 30 days after
      you receive notice from us, you must obtain the components  of the
      Computer System that we designate and require.  The Computer System
      must be capable of connecting your computers with our computer system so that
      we
      can daily review the results of your Restaurant’s operations.  We also
      have the right to require you to purchase, lease or license modifications of
      and
      enhancements made to any proprietary software that we license to you and other
      maintenance and support services that we, or our affiliates, furnish to you
      related to the Computer System or your access to and use of the EVOS® intranet
      system.  You must: (a) supply us with any and all codes, passwords,
      and information necessary to have access to your Computer System and not change
      any of them without first notifying us; and (b) not load or utilize any software
      on the Computer System that we have not specified or approved for
      use.  You agree to comply with the terms of any terms of use, privacy
      policies, or user rules we may designate in our sole discretion relating to
      the
      Computer System and any website we designate.

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    10.7.  Trade
      Accounts and Taxes.  You
      must: (a) maintain your trade accounts in a current status and seek to resolve
      any disputes with trade suppliers promptly; and (b) timely pay all taxes
      incurred in connection with your Restaurant’s operations.  Your
      failure to do so is a material breach of this Agreement.  If you fail
      to maintain your trade accounts in a current status, timely pay such taxes
      or
      any other amounts owing to any third parties or perform any non-monetary
      obligations to third parties, we may, but are not required to, pay any and
      all
      such amounts and perform such obligations on your behalf.  If we elect
      to do so, then you must reimburse us for such amounts.  You agree to
      repay us immediately upon receipt of our invoice.  We may also set-off
      the amount of any such reimbursement obligations against all amounts which
      we
      may owe you.

    

    10.8.  Proprietary
      Materials.  You
      must purchase from us, or approved manufacturers, or suppliers, all articles
      used in operating the Restaurant and bearing any of the Marks or utilizing
      any
      of our proprietary recipes of food service preparation methods.  These
      items may include certain feeds, ingredients, condiments, paper goods, employee
      clothing (such as shirts, hats and aprons) and menus (collectively, the
“Proprietary Materials”), at then prevailing prices, plus
      freight, taxes and delivery costs.

    

    10.9.  Approved
      Products.  You
      must not sell any food or beverage products or other items at the Restaurant
      that we have not previously approved for sale.  You must only use and
      display menus that have been prescribed or approved (except for prices) in
      advance by us.  You must sell all the food and beverage products that
      are included on the prescribed or approved menus, and no others.  We
      may negotiate group or volume purchasing arrangements with approved suppliers
      and you must participate in the arrangements.  We will be entitled to
      all rebates, bonuses and promotional benefits associated with those
      programs.  You must strictly follow all of our recipes for all menu
      items as such recipes are specified from time to time in the Manuals or
      otherwise.  You must not, without our prior written consent, sell,
      dispense, give away or otherwise provide food or beverage products or other
      items except by means of retail sales or complimentary meals to employees or
      customers at the Restaurant, or a program of charitable giving.  You
      must immediately implement changes to the products, food, service or other
      items
      requested by us, including menu changes.  You must maintain an
      inventory of food and beverage products sufficient to meet the daily demands
      of
      the Restaurant for all items specified in the menus.  Any and all
      recipes or menu changes submitted by you for inclusion on the menus will become
      our property and you agree to sign all documents necessary to convey all rights
      and title, including all rights in such recipes to us.

    

    10.10.  Management.  Unless
      we agree otherwise, you, or one of your owners, must assume responsibility
      for
      the Restaurant’s day-to-day management and operation and supervise the
      Restaurant’s personnel.  The Restaurant must at all times be under
      your, or your owner’s, direct supervision and control, but recognizing that you
      will employ agents (trained management personnel) on-site who will act at your
      direction.  Unless we approve otherwise, one of your original
      principal owners must have and retain at least 51% ownership of the
      Restaurant.

    

    10.11.  Personnel.  You
      must hire, train and supervise Restaurant personnel in accordance with the
      specifications set forth in the Manuals.  All personnel must meet
      every requirement imposed by applicable federal, state and local law and those
      required by us as a condition to their employment.  All persons you
      employ that have access to any of the Confidential Information must sign a
      Confidentiality and Noncompetition Agreement in a form satisfactory to
      us.  You are responsible to have such 

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

      Confidentiality
        and
        Noncompetition Agreement signed and sent to us before you are granted any
        access
        to Confidential Information.  You are liable to us for any
        unauthorized disclosure of such information by any of your Owners, directors,
        employees, representatives or agents.

    

    

    10.12.  Other
      Services.  We
      may, at our option, permit you to or require you to offer new or additional
      products or services through your Business, like catering, Delivery Service,
      Drive-Thru Service and any other products and services we may designate from
      time to time (collectively, the “Other
      Services”).  For example, if we designate a “Delivery
      Area,” we may permit or require you to provide catering, delivery or
      other similar services from your Restaurant or at locations other than your
      Restaurant (e.g., fairs, concerts, or other public or private events)
      (collectively, “Delivery Service”) and if so, you must you
      comply with all the terms and conditions of this Agreement and all of our System
      Standards applicable to your provision of Delivery Service.  You must
      provide us at least 90 days written notice prior to your election to provide
      Delivery Service and you must not establish another outlet or property (other
      than the Site) for use in connection with your provision of Delivery
      Service.  The Delivery Area in which you will be permitted to provide
      Delivery Service, if any, may be designated on Exhibit C to this
      Agreement.  We will not be deemed to have granted any Delivery Area to
      you unless we designate it on Exhibit C and both you and we initial such
      designation.   Also, for example, we may also require you to
      offer drive-thru or curbside type service (collectively, “Drive-Thru
      Service”) as part of your Other Services.  If we require you
      to offer Drive Thru Service, we will provide you a period of time we designate,
      but not less than 30 days, to, at your expense and in accordance with our System
      Standards for Drive-Thru Service, reconfigure your EVOS Restaurant to add one
      or
      more drive through lanes, and one or more service windows.  If we
      determine that your Site cannot support Drive-Thru Service or any Other Services
      we deem mandatory, we may require you to relocate your Site in accordance with
      our System Standards.  If you provide any Other Services, you must
      provide that (1) you ensure that your customers receive at all times high
      quality service, and food and beverage products prepared and maintained in
      accordance with our System Standards; and (2) you will not provide any Other
      Services to any location outside of the areas we designate for your providing
      such Other Services.  You must maintain the condition appearance of
      and perform maintenance with respect to all vehicles, serve where and equipment
      used in connection with your providing Other Services in accordance with our
      System Standards.  Your providing Other Services will be governed by
      this Agreement, unless otherwise agreed to in writing between us and you, and
      you must ensure that all Other Services and all off-Site, on-Site, catering,
      delivery drivers or any other personnel engaged in any aspect of Other Services
      strictly adhere to and comply with all applicable laws, rules and regulations
      (e.g., those relating to providing catering and delivery
      services).  You must maintain adequate motor vehicle liability and
      other insurance of the types and in the amounts that we may designate from
      time
      to time for such Other Services.  If you fail to comply with any of
      your obligations in connection with providing Other Services, then, in addition
      to any other rights or any remedies that we may have (including the right to
      terminate this Agreement), we may temporarily suspend or permanently terminate
      your rights to provide any particular or all Other Services or restrict the
      geographic area in which you may provide any or all Other Services.

    

    
      	
              11.    
                  

            	
              ADVERTISING
                AND PROMOTION.

            

    

     

    11.1.  Establishment
      of System Fund.  We
      may
      establish a System Fund (the “System Fund”) for such
      advertising, marketing and public relations programs and materials on a
      System-wide basis that we deem necessary or appropriate in our sole
      judgment.  You agree to, upon notice from us, contribute to the System
      Fund such amounts that we prescribe from time to time (the “System
      Contributions”), not to exceed 2% of your Gross Sales per Accounting
      Period (except as described 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

      below),
        payable in the same manner as the Royalty.  We reserve the right to
        defer or reduce System Contributions of an EVOS® Restaurant franchise owner and,
        upon 30 days’ prior written notice to you, to reduce or suspend System
        Contributions to and operations of the System Fund for one or more periods
        of
        any length and to terminate (and, if terminated, to reinstate) the System
        Fund.  If the System Fund is terminated, all unspent monies, less any
        outstanding accounts payable and other obligations, on the date of termination
        will be distributed to our franchise owners in proportion to their respective
        System Contributions to the System Fund during the preceding 12 Accounting
        Periods.  Our affiliates will contribute to the System Fund on the
        same basis as franchise owners for any EVOS® Restaurants they own and
        operate.

    

    

    11.2.  Use
      of
      the Funds.  We
      will direct all programs financed by the System Fund, with sole discretion
      over
      all fit activities, including without limitation, the creative concepts,
      materials and endorsements, and the geographic, market and media placement
      and
      allocation.  You agree that the System Fund may be used to pay the
      costs of, without limitations, preparing and producing video, audio and written
      advertising materials; administering regional and multi-regional advertising
      programs, including, without limitation, purchasing direct mail and other media
      advertising and employing advertising, promotion and marketing agencies;
      marketing and advertising training programs and materials; and supporting public
      relations, market research and other advertising, promotion and marketing
      activities.  The System Fund periodically will furnish you with
      samples of advertising, marketing and promotional formats and materials at
      no
      cost.  Multiple copies of such materials will be furnished to you at
      our direct cost of producing them, plus any related shipping, handling and
      storage charges.

    

    11.3.  Accounting
      for the Fund.  The
      System Fund will be accounted for separately from our other funds and will
      not
      be used to defray any of our general operating expenses, except for such
      reasonable salaries, administrative costs, travel expenses and overhead,
      including rent and utilities, as we may incur in activities related to the
      development and administration of the System Fund and its programs, including,
      without limitation, conducting market research, recipe, product and menu
      development, preparing advertising, promotion and marketing materials and
      collecting and accounting for contributions to the System Fund. All interest
      earned on monies contributed to the System Fund will be used to pay advertising
      costs before other assets of the System Fund are expended.  We may
      spend, on behalf of the System Fund, in any fiscal year an amount greater or
      less than the aggregate contribution of all EVOS® Restaurants to the System Fund
      in that year.  The System Fund may borrow from us or others to cover
      deficits or invest any surplus for future use.  If we lend money to
      the System Fund, we may charge interest at an annual rate 1% greater than the
      rates we pay our lenders.  We will prepare an annual statement of
      monies collected and costs incurred by the System Fund and furnish the statement
      to you upon written request.  We have the right to cause the System
      Fund to be incorporated or operated through a separate entity at such time
      as we
      deem appropriate, and such successor entity will have all of the rights and
      duties specified in this Agreement.

    

    11.4.  System
      Fund Limitations.  You
      acknowledge that the System Fund is intended to maximize recognition of the
      Marks and patronage of EVOS® Restaurants.  Although we will endeavor
      to utilize the System Fund to, among its activities, develop advertising and
      marketing materials and programs and to place advertising that will benefit
      all
      EVOS® Restaurants, we undertake no obligation to ensure that expenditures by the
      System Fund in or affecting any geographic area are proportionate or equivalent
      to the contributions to the System Fund by EVOS® Restaurants operating in that
      geographic area or that any EVOS® Restaurant will benefit directly or in
      proportion to its contribution to the System Fund from the development of
      advertising and marketing materials or the placement of
      adver­tising.  Except as 

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

      expressly
        provided
        in this section, we assume no direct or indirect liability or obligation
        to you
        with respect to maintaining, directing, administering or collecting amounts
        due
        to the System Fund.

    

    

    11.5.  Local
      Advertising and Promotion.  You
      agree that any advertising, promotion and marketing you conduct will be
      completely clear and factual and not misleading and conform to the highest
      standards of ethical marketing and the promotion policies which we prescribe
      from time to time.  Samples of all advertising, pro­motional and
      marketing materials which we have not prepared or previously approved must
      be
      submitted to us for approval before you use them.  If you do not
      receive writ­ten approval within 15 days after our receipt of such
      materi­als, we will be deemed to have disapproved the
      materials.  You may not use any advertising or promo­tional
      materials that we have not approved.  You must spend a minimum of 2%
      of your Gross Sales on approved forms of local advertising and promotion,
      measured over continuing 6 Financial Statement Periods.

    

    11.6.  Co-op
      Participation and Contributions.  If
      a
      group of EVOS® Restaurant Franchise Owners is established in a geographic area
      in which your Restaurant is located to do joint advertising, marketing and
      promotion (the “Co-op”), you must join and actively participate
      in it.  You also must contribute to the Co-op such amounts as are
      determined from time to time by us, not greater than 2% of your Gross
      Sales.  Your contribution to the fund will not exceed 2% of Gross
      Sales unless such higher sum is determined in accordance with the rules,
      regulations and procedures of the Co-op.  Your local advertising
      requirement will be reduced by the amount that you contribute to any
      Co-op.  We will set the amount of those contributions.  The
      Co-op will adopt its own rules, regulations and procedures, which you must
      follow.  However, the rules, regulations and procedures of the Co-op
      must be approved by us.  All advertising utilized by the Co-op must
      not be used unless and until we have reviewed and approved it.  The
      Co-op will, at its expense, use our mandated accounting system and any MIS
      System we designate.  We also have the right to participate in any
      meetings of the Co-op and its members.  Your failure to timely
      contribute the amounts required by the Co-op constitutes a material breach
      of
      the provisions of this Agreement and we may offset against any amounts we
      otherwise owe to you the amount of your Co-op contributions and pay such
      contributions for you.

    

    11.7.  Websites.  We
      have the right to control or designate the manner of your use of all URLs,
      domain names, website addresses, metatags, links, key words, e-mail addresses
      and any other means of electronic identification or origin
      (“e-names”).  We also have the right to designate,
      approve, control or limit all aspects of your use of the Internet, Intranet,
      World Wide Web, wireless technology, digital cable, use of e-names, e-mail,
      home
      pages, bulletin boards, chatrooms, linking, framing, on-line purchasing
      cooperatives, marketplaces, barter exchanges, and related technologies, methods,
      techniques, registrations, networking, and any electronic communication,
      commerce, computations, or any means of interactive electronic documents
      contained in a network of computers or similar devices linked by communications
      software or hardware (collectively,
“e-commerce”).  You must follow all of our policies
      and procedures for the use and regulation of e-commerce.  We may
      require that you provide graphical, photographic, written or other forms of
      artistic or literary content to us for use in e-commerce activities associated
      with the Marks or the System which we may designate.  We may restrict
      your use of e-commerce to a centralized website, portal or network or other
      form
      of e-commerce that we designate or operate.  We may require that you
      provide information to us via e-commerce.  You agree to be bound by
      any terms of use, privacy policy and copyright notice and takedown policies
      and
      the like that we establish from time to time.  We may require you to,
      at your expense, coordinate your e-commerce activities with us, other EVOS®
Restaurants, suppliers and affiliates.  We may require you to utilize
      the computers we designate and participate in any internet or intranet networks
      

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

       

      (collectively,
        the
“MIS System”) we establish and obtain the services of and pay
        the then current fees for ISP and ASP, data polling services and the
        like.  You recognize and agree that we own all rights, title and
        interest in and to any and all websites and any e-names we commission or
        utilize, or require or permit you to utilize, in connection with the System
        which bear our Marks or any derivative of our Marks. You also recognize and
        agree that we own all rights, title and interest in and to any and all data
        or
        other information collected via e-commerce related to the System or the Marks,
        including any customer data, click-stream data, cookies, user data, hits
        and the
        like.  Such data or other information also constitutes our
        Confidential Information.

    

    

    11.8.  Promotion
      of the Franchise System.  You
      agree to place and display at the Site and on any vehicles your Business
      operates, any and all materials promoting the Franchise System that we from
      time
      to time provide to you or designate.  You will place and display all
      such materials in the manner in which we designate.  We may require
      you, at your expense, to obtain vanity phone numbers and e-names we
      designate.

    

    
      	
              12.     
                 

            	
              RECORDS,
                REPORTS AND FINANCIAL
                STATEMENTS.

            

    

     

    12.1.  Accounting
      System.
      You must obtain
      your accounting services and any required hardware or software related to
      them.  You must at all times maintain the records reasonably specified
      in the Manuals, including, without limitation, sales, inventory and expense
      information. You must report gross sales and other business information to
      us
      using the format, reporting system and accounting system (the
“AccountingSystem”) that we require from time
      to time, including your use of a uniform chart of accounts we
      specify.  We may require that:  the Accounting System reside
      on our computer system and we will provide you access to the Accounting System
      through the Internet; the Accounting Systems reside at a location designated
      by
      us, and you must establish access to the Accounting System via the Internet
      at
      your cost.  You must deliver to us the financial and operating reports
      in the form, manner, content and time we specify from time to time, including
      via access to the Accounting System.  You will update all information
      in the Accounting System at least weekly, including but not limited to revenues,
      expenditures and other pertinent data.  We may periodically change the
      Accounting System and the suppliers of accounting services.  You will
      make available for our review and inspection during normal business hours all
      original books and records that we want to ascertain and verify financial
      statements or reports.  You will maintain all of your books and
      records in accordance with generally accepted accounting
      principles.  You will maintain and preserve such records during the
      entire Term and for 10 years following expiration or termination of this
      Agreement.  Such records include deposit reports and receipts, cash
      receipts journal, general ledgers, cash disbursement journals, weekly payroll
      registers, monthly bank statements, supplier invoices (paid and unpaid),
      accounts payable journals, balance sheets, profit and loss statements, inventory
      records, records of wholesale accounts and such other records as we may
      require.  We may use the information obtained as we deem appropriate,
      except that information you designate as confidential will not be disclosed
      to
      third parties in a manner that identifies you as the subject or source except:
      (i) with your permission, (ii) as may be required by law,
      (iii) in connection with audits or collections under this Agreement; or
      shared within the EVOS® Restaurant System (you understand that we disseminate
      operational and financial data throughout the System and to
      prospects).  We may require you to use approved computer hardware and
      software in order to maintain the Accounting System and other communication
      processes.

    

    12.2.  Reports.  You
      agree to furnish to us on such forms that we prescribe from time to
      time:

    

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (a)  on
      the Report Day,
      a report on your Restaurant’s Gross Sales during the preceding Accounting
      Period;

     

    (b)  within
      20 days
      after the end of each Accounting Period, a profit and loss statement for the
      Restaurant for the immediately preceding Accounting Period and year-to-date
      and
      a balance sheet as of the end of such Accounting Period;

     

    (c)  within
      60 days
      after the end of the Restaurant’s fiscal year, annual profit and loss and source
      and use of funds statements and a balance sheet for the Restaurant as of the
      end
      of such fiscal year; and

     

    (d)  on
      the Report Days
      we specify, a uniform chart of accounts.

     

    12.3.  Access
      to Information.  You
      agree to verify and sign each report and financial statement in the manner
      we
      prescribe.  We have the right to disclose data derived from such
      reports.  We also have the right to require you to have reviewed or
      audited financial statements prepared on an annual basis if you have been late
      in making payments or sending us reports or we determine that you have
      understated Gross Sales by over 2% twice or more during any 18-month
      period.  You will provide us copies of any reviewed or audited
      financial statements (if any) promptly after you receive
      them.  Moreover, we have the right as often as we deem appropriate
      (including on a daily basis) to access all computer registers and other computer
      systems that you are required to maintain in connection with the operation
      of
      the Restaurant and to retrieve all information relating to the Restaurant’s
      operations.  At our request, you will promptly send us true and
      correct copies of all federal and state income, sales, excise and other tax
      returns.

    

    
      	
              13.    
                  

            	
              INSPECTIONS
                AND AUDITS.

            

    

     

    13.1.  Our
      Right to Inspect the Restaurant.  To
      determine whether you and the Restaurant are complying with this Agreement
      and
      all System Standards, we and our designated agents have the right at any time
      during your regular business hours, and without prior notice to you,
      to:

    

    (a)  inspect
      the
      Restaurant;

     

    (b)  observe,
      photograph
      and videotape the operations of the Restaurant for such consecutive or
      intermittent periods as we deem necessary;

     

    (c)  remove
      samples of
      any products, materials or supplies for testing and analysis;

     

    (d)  interview
      personnel
      and customers of the Restaurant; and

     

    (e)  inspect
      and copy
      any books, records, tax returns and documents relating to your operation of
      the
      Restaurant.

     

    You
      agree to
      cooperate with us fully in connection with any such inspections, observations,
      photographing, videotaping, product removal and interviews.  You agree
      to present to your customers such evaluation forms that we periodically
      prescribe and to participate and/or request your customers to participate in
      any
      surveys performed by us or on our behalf.  You must immediately
      correct or repair any unsatisfactory conditions we specify.

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    13.2.  Our
      Right to Audit.  We
      have the right at any time during your business hours, and without prior notice
      to you, to inspect and audit, or cause to be inspected and audited, your (if
      you
      are a Business Entity) and the Restaurant’s business, bookkeeping and accounting
      records, sales and income tax records and returns and other
      records.  You agree to cooperate fully with our repre­sentatives
      and independent accountants we hire to conduct any such inspection or
      audit.  You must immediately pay us any shortfall in the amounts you
      owe us (regardless of the degree), including late fees and
      interest.  You agree to reimburse us for the cost of such inspection
      or audit, including, without limitation, the charges of attorneys and
      independent accountants and the travel expenses, room and board and compensation
      of our employees if:

    

    (a)  our
      inspection or
      audit is made necessary by your failure to furnish reports, supporting records
      or other information we require, or to furnish such items on a timely basis;
      and/or

     

    (b)  our
      audit or
      inspection reveals that you understated Gross Sales by
      over 2%.

     

    The
      foregoing
      remedies are in addition to our other remedies and rights under this Agreement
      and applicable law.

    

    
      	
              14.    
                  

            	
              TRANSFER.

            

    

     

    14.1.  By
      Us.  This
      Agreement is fully transferable by us and will inure to the benefit of any
      transferee or other legal suc­cessor to our interests.

    

    14.2.  By
      You.  You
      understand and acknowledge that the rights and duties created by this Agreement
      are personal to you (or, if you are a Business Entity, to your owners) and
      that
      we have granted the Franchise to you in reliance upon our perceptions of your
      (or your owners’) indi­vidual or collective character, skill, aptitude,
      attitude, busi­ness ability and financial capacity.  Accordingly,
      neither this Agreement (nor any interest in it) nor any ownership or other
      interest in you or the Restaurant may be transferred without our prior written
      approval.  Any transfer without such approval constitutes a breach of
      this Agreement and is void and of no effect.  As used in this
      Agreement, the term “transfer” includes your (or your owners’)
      volun­tary, involuntary, direct or indirect assignment, sale, gift or other
      disposition of any interest in: (a) this Agreement; (b) you; or (c) the
      Restaurant.

    

    An
      assignment, sale, gift or other disposition
      includes the following events:

    

    
      	
              (i)  

            	
              transfer
                of
                ownership of 10% or more of any capital stock or a partnership interest
                or
                any other interest that affects control over the Business
                Entity;

            

    

     

    
      	
              (ii)  

            	
              merger
                or
                consolidation or issuance of additional securities or interests
                representing an ownership interest in
                you;

            

    

     

    
      	
              (iii)  

            	
              any
                issuance
                or sale of your stock or any security convertible to your
                stock;

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    
      	
              (iv)  

            	
              transfer
                of
                an interest in you, this Agreement or the Restaurant in a divorce,
                insolvency or corporate or partnership dissolution proceed­ing or
                otherwise by operation of law;

            

    

     

    
      	
              (v)  

            	
              transfer
                of
                an interest in you, this Agreement or the Restaurant, in the event
                of your
                death or the death of one of your owners, by will, declaration of
                or
                transfer in trust or under the laws of intestate succession;
                or

            

    

     

    
      	
              (vi)  

            	
              pledge
                of
                this Agreement (to someone other than us) or of an ownership interest
                in
                you as security, foreclosure upon the Restaurant or your transfer,
                surrender or loss of possession, control or management of the
                Restaurant.

            

    

     

    14.3.  Conditions
      for Approval of Transfer.  If
      you
      (and your owners) are in full compliance with this Agreement, then subject
      to
      the other provisions of this section , we will approve a transfer that
      meets all the applicable requirements of this section.  The proposed
      transferee and its direct and indirect owners must be individuals of good
      character and otherwise meet our then applicable standards for EVOS® Restaurant
      franchise owners.  A transfer of ownership, possession or control of
      the Restaurant may be made only in con­junction with a transfer of this
      Agreement.  If the transfer is of this Agreement or a controlling
      interest in you, or is one of a series of transfers which in the aggregate
      constitute the transfer of this Agreement or a controlling interest in you,
      all
      of the following conditions must be met prior to or concurrently with the
      effective date of the transfer:

    

    (a)  the
      transferee has
      sufficient business experience, character, aptitude and financial resources
      to
      operate the Restaurant;

     

    (b)  you
      have paid all
      Royalties, System Fund contributions, Co-op fund contributions, amounts owed
      for
      purchases from us and all other amounts owed to us or to third-party creditors
      and have submitted all required reports and statements;

     

    (c)  the
      transferee (or
      its owners) have agreed to complete our standard train­ing program, at their
      expense;

     

    (d)  the
      transferee has
      agreed to be bound by all of the terms and conditions of this
      Agreement;

     

    (e)  the
      transferee has
      entered into our then-current form of Franchise Agreement;

     

    (f)  the
      transferee
      agrees to upgrade the Restaurant to conform to our then-current standards and
      specifications;

     

    (g)  you
      or the
      transferee pay us a transfer fee equal to $7,000 to defray expenses we incur
      in
      connection with the transfer, including the costs of training the transferee
      (or
      its owners) and other personnel.  If the proposed transfer is among
      your owners, the transfer fee will be equal to $1,500 (However, in addition
      to
      such fees you will remain responsible for any lodging and meal expenses
      associated with our on-site training of your personnel, if any);

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    (h)  you
      (and your
      transferring owners) have signed a general release, in form satisfactory to
      us,
      of any and all claims against us and our shareholders, officers, directors,
      employees and agents;

     

    (i)  we
      have approved
      the material terms and conditions of such transfer and determined that the
      price
      and terms of payment will not adversely affect the transferee’s operation of the
      Restaurant;

     

    (j)  if
      you or your
      owners finance any part of the sale price of the transferred interest, you
      and/or your owners have agreed that all of the transferee’s obligations pursuant
      to any promissory notes, agreements or security interests that you or your
      owners have reserved in the Restaurant are subordinate to the transferee’s
      obligation to pay Royalties, System Fund contributions, Co-op fund contributions
      and other amounts due to us and otherwise to comply with this
      Agreement;

     

    (k)  you
      and your
      transferring owners (and your and your owners’ spouses and children) have signed
      a non-competition covenant in favor of us and the trans­feree agreeing to be
      bound, commencing on the effective date of the transfer, by the restrictions
      contained in this Agreement; and

     

    (l)  you
      and your
      transferring owners have agreed that you and they will not directly or
      indirectly at any time or in any manner (except with respect to other EVOS®
Restaurants you own and operate) identify yourself or themselves or any business
      as a current or former EVOS® Restaurant, or as one of our licensees or franchise
      owners, use any Mark, any colorable imitation of a Mark, or other indicia of
      an
      EVOS® Restaurant in any manner or for any purpose or utilize for any purpose any
      trade name, trade or service mark or other commercial symbol that suggests
      or
      indicates a connection or association with us.

     

    We
      are not
      obligated to provide transferees on-site pre-opening or grand opening
      assistance.

    

    14.4.  Transfer
      to a Business Entity.  If
      you
      are in full compliance with this Agreement, you may transfer this Agreement
      to a
      Business Entity that con­ducts no busi­ness other than the Restaurant
      and, if applicable, other EVOS® Restaurants so long as you own, control and have
      the right to vote 51% or more of its issued and out­standing ownership
      interests (like stock or partnership interests) and you guarantee its
      performance under this Agreement.  All other owners are subject to our
      approval.  The organizational or governing documents of the Business
      Entity must recite that the issuance and transfer of any ownership interests
      in
      the Business Entity are restricted by the terms of this Agreement, are subject
      to our approval, and all certificates or other documents representing ownership
      interests in the Business Entity must bear a legend referring to the
      restrictions of this Agree­ment.  As a condition of our approval
      of the issuance or transfer of ownership interests to any person other than
      you,
      we may require (in addition to the other requirements we have the right to
      impose) that the proposed owner sign an agreement, in a form provided or
      approved by us, agreeing to be bound jointly and severally by, to comply with,
      and to guarantee the performance of, all of the your obligations under this
      Agreement.

    

    14.5.  Transfer
      Upon Death or Disability.  Upon
      your death or disability or, if you are a Business Entity, the death or
      disability of the owner of a controlling interest in you, we may require you
      (or
      such owner’s executor, administrator, conservator, guardian or other personal
      representative) to transfer your interest in this Agreement (or such owner’s
      interest in you) to a third party.  Such disposition (including,
      without limitation, transfer by bequest or inheritance) must be completed within
      

     

    
      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      the
        time
        we designate, not less than 1 month but not more than 6 months from the
        date of death or disability.  Such disposition will be subject to all
        of the terms and conditions applicable to transfers contained in this
        section.  A failure to transfer your interest in this Agreement or the
        ownership interest in you within this period of time constitutes a breach
        of
        this Agreement.  For purposes of this Agreement, the term
“disability” means a mental or physical disability, impairment
        or condition that is reasonably expected to prevent or actually does prevent
        you
        or an owner of a controlling interest in you from managing and operating
        the
        Restaurant.

    

    

    14.6.  Operation
      Upon Death or Disability.  If,
      upon your death or disability or the death or disability of the owner of a
      controlling interest in you, the Restaurant is not being managed by a trained
      manager, your or such owner’s executor, administrator, conservator, guardian or
      other personal representative must within a reasonable time, not to exceed
      15
      days from the date of death or disability, appoint a manager to operate the
      Restaurant.  Such manager will be required to complete training at
      your expense.  Pending the appointment of a manager as provided above
      or if, in our judgment, the Restaurant is not being managed properly any time
      after your death or disability or after the death or disability of the owner
      of
      a controlling interest in you, we have the right, but not the obligation, to
      appoint a manager for the Restaurant.  All funds from the operation of
      the Restaurant during the management by our appointed manager will be kept
      in a
      separate account, and all expenses of the Restaurant, including compensation,
      other costs and travel and living expenses of our manager, will be charged
      to
      this account.  We also have the right to charge a reasonable
      management fee (in addition to the Royalty, System Fund contributions and Co-op
      fund contributions payable under this Agreement) during the period that our
      appointed manager manages the Restaurant.  Operation of the Restaurant
      during any such period will be on your behalf, provided that we only have a
      duty
      to utilize our best efforts and will not be liable to you or your owners for
      any
      debts, losses or obligations incurred by the Restaurant or to any of your
      creditors for any products, materials, supplies or services the Restaurant
      purchases during any period it is managed by our appointed manager.

    

    14.7.  Effect
      of Consent to Transfer.  Our
      consent to a transfer of this Agreement and the Restaurant or any interest
      in
      you does not constitute a representation as to the fairness of the terms of
      any
      contract between you and the transferee, a guarantee of the prospects of success
      of the Restaurant or transferee or a waiver of any claims we may have against
      you (or your owners) or of our right to demand the transferee’s exact compliance
      with any of the terms or conditions of this Agreement.

    

    14.8.  Our
      Right of First Refusal.  If
      you
      (or any of your owners) at any time determine to sell, assign or transfer for
      consideration an interest in this Agreement and the Restaurant or an ownership
      interest in you, you (or such owner) agree to obtain a bona fide, executed
      written offer and earnest money deposit (in the amount of 5% or more of the
      offering price) from a responsible and fully disclosed offeror (including lists
      of the owners of record and all beneficial owners of any corporate or limited
      liability company offeror and all general and limited partners of any
      partnership offeror and, in the case of a publicly-held corporation or limited
      partnership, copies of the most current annual and quarterly reports and
      Form 10K) and within 5 days of receipt submit to us a true and complete
      copy of such offer, which includes details of the payment terms of the proposed
      sale and the sources and terms of any financing for the proposed purchase
      price.  To be a valid, bona fide offer, the proposed purchase price
      must be denominated in a dollar amount.  The offer must apply only to
      an interest in you or in this Agreement and the Restaurant and may not include
      an offer to purchase any of your (or your owners’) other property or
      rights.  However, if the offeror proposes to buy any other property or
      rights from you (or your owners) under a separate, contemporaneous offer, such
      separate, contemporaneous offer must be disclosed to us, and the price and
      terms
      of purchase offered to you (or your owners) for the interest in you or in this
      Agreement and the Restaurant must reflect the bona fide price offered and not
      reflect any value for any other property or rights.

    

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    We
      have the right, exercisable by written
      notice delivered to you or your selling owner(s) within 30 days from the
      date of the delivery to us of both an exact copy of such offer and all other
      information we request, to purchase such interest for the price and on the
      terms
      and conditions contained in such offer, provided that:

    

    (a)  we
      may substitute
      cash for any form of payment proposed in such offer (with a discounted amount
      if
      an interest rate will be charged on any deferred payments);

     

    (b)  our
      credit will be
      deemed equal to the credit of any proposed purchaser;

     

    (c)  we
      will have not
      less than 30 days after giving notice of our election to purchase to prepare
      for
      closing; and

     

    (d)  we
      are entitled to
      receive, and you and your owners agree to make, all customary representations
      and warranties given by the seller of the assets of a business or the capital
      stock of an incorporated business, as applicable, including, without limitation,
      representations and warranties as to:

     

    (e)  ownership
      and
      condition of and title to stock or other forms of ownership interest and/or
      assets;

     

    (f)  liens
      and
      encumbrances relating to the stock or other ownership interest and/or assets;
      and

     

    (g)  validity
      of
      contracts and the liabilities, contingent or otherwise, of the corporation
      whose
      stock is being purchased.

     

    If
      we exercise our
      right of first refusal, you and your selling owner(s) agree that, for a period
      of 2 years commencing on the date of the closing, you and they will be
      bound by the non-competition covenant contained within this
      Agreement.  You and your selling owner(s) further agree that you and
      they will, during this same time period, abide by the restrictions of this
      Agreement.

    

    If
      we do not exercise our right of first
      refusal, you or your owners may complete the sale to such purchaser pursuant
      to
      and on the exact terms of such offer, subject to our approval of the transfer,
      provided that, if the sale to such purchaser is not completed within
      120 days after delivery of such offer to us, or if there is a material
      change in the terms of the sale (which you agree promptly to communicate to
      us),
      we will have an additional right of first refusal during the 30 day period
      following either the expiration of such 120 day period or notice to us of
      the material change(s) in the terms of the sale, either on the terms originally
      offered or the modified terms, at our option.

    

    
      	
              15.    
                  

            	
              SUCCESSOR
                TERMS.

            

    

     

    15.1.  Acquisition.  Upon
      expiration of this Agreement, subject to the conditions of this section, you
      will have the right to acquire a successor franchise to operate an EVOS®
Restaurant for 2 additional 5-year periods on the terms and conditions of the
      franchise agreement we are then using in granting franchises for EVOS®
Restaurants, if you (and each of your owners) have substantially complied with
      this Agreement during its Term, and either:

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    (a)  you
      maintain
      possession of and agree to remodel and/or expand the Restaurant, add or replace
      improvements, equipment and signs and otherwise modify the Restaurant as we
      require to bring it into compliance with specifications and standards then
      applicable for EVOS® Restaurants; or

     

    (b)  if
      you are unable
      to maintain possession of the Site, or if in our judgment the Restaurant should
      be relocated, you secure substitute premises we approve, develop such premises
      in compliance with specifications and standards then applicable for EVOS®
Restaurants and continue to operate the Restaurant at the Site until operations
      are transferred to the substitute premises.

     

    15.2.  Grant.  You
      must give us written notice of your election to acquire a successor franchise
      during the last year of the Term, but no later than 180 days before
      expiration.  We will respond (“Response Notice”),
      within 90 days after we receive your notice, of our decision,
      either:

    

    (a)  to
      grant you a
      successor franchise;

     

    (b)  to
      grant you a
      successor franchise on the condition that deficiencies of the Restaurant, or
      in
      your operation of the Restaurant, are corrected; or

     

    (c)  not
      to grant you a
      successor franchise based on our determination that you and your owners have
      not
      substantially complied with this Agreement during its Term.

     

    If
      applicable, our
      Response Notice will:

    

    (a)           describe
      the remodeling and/or expansion of the Restaurant and other improvements or
      modifications required to bring the Restaurant into compliance with then
      applicable specifications and standards for EVOS® Restaurants; and

     

    (b)           state
      the actions you must take to correct operating deficiencies and the time period
      in which such deficiencies must be corrected.

     

    If
      we elect not to
      grant a successor franchise, the Response Notice will describe the reasons
      for
      our decision.  Your right to acquire a successor franchise is subject
      to your continued compliance with all of the terms and conditions of this
      Agreement through the date of its expiration, in addition to your compliance
      with the obligations described in the Response Notice.

    

    In
      our discretion, we may extend the Term for
      such period of time as we deem necessary in order to provide you with either
      reasonable time to correct deficiencies or 90 days notice of our refusal to
      grant a successor franchise.

    

    15.3.  Agreements/Releases.  If
      you
      satisfy all of the other conditions to the grant of a successor franchise,
      you
      and your owners agree to sign the form of franchise agreement and any ancillary
      agreements we are then customarily using in connection with the grant of
      successor franchises for EVOS® Restaurants.  You and your owners
      further agree to sign general releases, in form satisfactory to us, of any
      and
      all claims against us and our shareholders, officers, directors, employees,
      agents, successors and assigns.  Failure by you or your owners to sign
      such agreements and releases and deliver them to us for acceptance and signature
      within 60 days after their delivery to you will be deemed an election not to
      acquire a successor franchise.

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    15.4.  Training
      and Refresher Programs.  Our
      grant of a successor franchise is also conditioned on the satisfactory
      completion by you (or a your owners) of any new training and refresher
      pro­grams as we may reasonably require.

    

    15.5.  Fees
      and
      Expenses.  Our
      grant of a successor franchise is contingent on your payment to us of a
      successor franchise fee in the amount of $7,000.  We must receive the
      fee from you at the time of your election, but not later than 180 days prior
      to
      the expiration date of this Agreement.  In addition, we have the right
      to charge you for ser­vices we render to you and expenses we incur in
      con­junction with the grant of the successor franchise.  Payment
      of those charges is due upon your receipt of our invoice.

    

    15.6.  Subsequent
      Successor Franchises.  The
      fees and other conditions for any later granting of subsequent successor
      franchises will be governed by the successor fran­chise agreement (as
      described above); except that the first 5-year successor franchise will also
      be
      for 5 years.

    

    
      	
              16.     
                 

            	
              TERMINATION
                OF AGREEMENT.

            

    

     

    16.1.  Termination
      of Service.  If
      we
      are entitled to terminate this Agreement in accordance with any of its
      provisions, we will have the option to terminate or suspend any one or more
      of
      any of the services we provide or rights we offer, instead of terminating this
      Agreement, including:

    

    (a)  your
      right to
      participate in any convention offered by us from time to time;

     

    (b)  your
      right to
      provide Delivery Services, provide or participate in any call center, order
      fulfillment services we develop or provide, or your right to provide live music
      or other entertainment at your Restaurant;

     

    (c)  your
      right to
      participate in any services that we provide in connection with any website
      or
      marketing services, the System Fund or the like; and any exclusivity for the
      trade area granted to you under this Agreement; or

     

    (d)  your
      right to
      participate in Preferred Vendor Programs.

     

    If
      we terminate or
      suspend any of your rights under this Agreement in accordance with this section,
      we will provide you five days prior written notice of such suspension or
      termination.  If any such rights, options or arrangements are
      terminated or suspended in accordance with this section, such termination or
      suspension will be without prejudice to and will not be a waiver or release
      of
      any of our rights to terminate this Agreement in accordance with its terms,
      or
      to terminate any other rights, options or arrangements under this Agreement
      or
      any other agreement between you and us at any time thereafter, for the same
      default or as a result of any additional defaults of the terms of this Agreement
      or other agreements between you and us.

     

    16.2.  On
      Notice.  We
      have the right to terminate this Agreement, effective upon delivery of written
      notice of termination to you, if:

    

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    (a)  you
      (or any of your
      owners) have made any material misrepresentation or omission in connection
      with
      your purchase of the Franchise;

     

    (b)  you
      fail to begin
      operating the Restaurant within 9 months of the Agreement Date;

     

    (c)  you
      or your owners
      fail to successfully complete initial or any other training to our
      satisfaction;

     

    (d)  you
      abandon the
      Restaurant or fail to actively operate the Restaurant for 1 or more consecutive
      business days, unless the Restaurant has been closed for a purpose we have
      approved or because of casualty or government order;

     

    (e)  you
      surrender or
      transfer control of the operation of the Restaurant without our prior written
      consent;

     

    (f)  you
      (or any of your
      owners) are or have been convicted by a trial court of, or plead or have pleaded
      no contest, or guilty, to, a felony or other serious crime or
      offense;

     

    (g)  you
      (or any of your
      owners) engage in any dishonest or unethical conduct which may adversely affect
      the reputation of the Restaurant or another EVOS® Restaurants or the goodwill
      associated with the Marks;

     

    (h)  you
      understate
      Gross Sales by 3% or more, or our audits or investigations show that you
      understated Gross Sales by 2% or more 2 or more times during any 18-month
      period;

     

    (i)  you
      (or any of your
      owners) make an unauthorized assignment of this Agreement or of an ownership
      interest in you, the Restaurant or the Art;

     

    (j)  in
      the event of
      your death or disability or the death or disability of the owner of a
      controlling interest in you, this Agreement or such owner’s interest in you is
      not assigned as required under this Agreement;

     

    (k)  you
      lose the right
      to possession of the Site;

     

    (l)  you
      (or any of your
      owners) make any unauthorized use or disclosure of any Confidential Information
      or use, duplicate or disclose any portion of the Manual in violation of this
      Agreement;

     

    (m)  you
      violate any
      health, safety or sanitation law, ordinance or regulation and do not cure the
      violation within 24 hours to both our satisfaction and that of the governmental
      authority;

     

    (n)  you
      fail to make
      payments of any amounts due to us and do not correct such failure within 30
      days
      after written notice of such failure is delivered to you;

     

    (o)  you
      fail to pay
      when due any federal or state income, service, sales or other taxes due on
      the
      operations of the Restaurant, unless you are in good faith contesting your
      liability for such taxes;

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    (p)  you
      (or any of your
      owners) fail to comply with any other provision of this Agreement or any System
      Standard and do not correct such failure within 30 days after written notice
      of
      such failure to comply is delivered to you;

     

    (q)  you
      (or any of your
      owners) fail on 3 or more separate occasions within any period of 12 consecutive
      Accounting Periods or on 5 occasions during the Term to submit when due reports
      or other data, information or supporting records, to pay when due any amounts
      due to us or otherwise to comply with this Agreement, whether or not such
      failures to comply were corrected after written notice of such failure was
      delivered to you; or

     

    (r)  you
      make an
      assignment for the benefit of creditors or admit in writing your insolvency
      or
      inability to pay your debts generally as they become due; you consent to the
      appointment of a receiver, trustee or liquidator of all or the substantial
      part
      of your property; the Restaurant is attached, seized, subjected to a writ or
      distress warrant or levied upon, unless such attachment, seizure, writ, warrant
      or levy is vacated within 30 days; or any order appointing a receiver, trustee
      or liquidator of you or the Restaurant is not vacated within 30 days following
      the entry of such order.

     

    16.3.  After
      Notice.
      We may also
      terminate this Agreement after we notify you of our intention to do so because
      of the occurrence of any of the following events and your failure to cure it
      within 30 days of our notice:

    

    (a)  you
      or a trained
      manager is not present at the Restaurant during all open hours;

     

    (b)  failure
      to keep the
      Restaurant open during the required hours;

     

    (c)  purchasing
      or
      leasing any product or service from an
      unapproved  supplier;

     

    (d)  failure
      to
      participate in a Co-op;

     

    (e)  failure
      to pay
      taxes and assessments;

     

    (f)  failure
      to obtain
      and maintain required permits

     

    (g)  if
      you are a
      Business Entity, failure to maintain active status in your state of
      organization;

     

    (h)  failure
      to promptly
      pay any amounts due us or your suppliers;

     

    (i)  failure
      to timely
      make required reports;

     

    (j)  failure
      to maintain
      sufficient liquid funds to pay amounts to us via electronic
      transfer;

     

    (k)  you
      violate any
      other provision of this Agreement;

     

    (l)  failure
      to maintain
      any standards or procedures contained in the Operations Manual;

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    (m)  continued
      violation
      of any law, ordinance, rule or regulation of a governmental agency;

     

    (n)  failure
      to obtain
      any approvals or consents required by this Agreement;

     

    (o)  you
      violate the
      Lease;

     

    (p)  the
      Lease
      terminates or expires;

     

    (q)  you
      do not pay
      approved suppliers or vendors; or

     

    (r)  you
      lose the right
      to possession of the Restaurant.

     

    
      	
              17.    
                  

            	
              RIGHTS
                AND OBLIGATIONS UPON
                TERMINATION.

            

    

     

    17.1.  Payment
      of Amounts Owed To Us.  You
      agree to pay us within 15 days after the effective date of termination or
      expiration of this Agreement, or on such later date that the amounts due to
      us
      are determined, such Royalties, System Fund contributions, amounts owed for
      purchases from us, interest due on any of the foregoing and all other amounts
      owed to us which are then unpaid.

    

    17.2.  Marks.  Upon
      the termination or expiration of this Agreement:

    

    (a)  you
      may not
      directly or indirectly at any time or in any manner (except with respect to
      other EVOS® Restaurants you own and operate) identify yourself or any business
      as a current or former EVOS® Restaurant, or as one of our licensees or franchise
      owners, use any Mark, any colorable imitation of a Mark or other indicia of
      an
      EVOS® Restaurant in any manner or for any purpose or utilize for any purpose any
      trade name, trade or service mark or other commercial symbol that indicates
      or
      suggests a connection or association with us;

     

    (b)  you
      agree to take
      such action as may be required to cancel all fictitious or assumed name or
      equivalent registrations relating to your use of any Mark;

     

    (c)  if
      we do not have
      or do not exercise an option to purchase the Restaurant, you agree to deliver
      to
      us within 30 days after, as applicable, the effective date of expiration of
      this
      Agreement or the Notification Date all signs, sign-faces, sign-cabinets,
      marketing materials, forms and other materials containing any Mark or otherwise
      identifying or relating to an EVOS® Restaurant and allow us, without liability
      to you or third parties, to remove all such items from the
      Restaurant;

     

    (d)  if
      we do not have
      or do not exercise an option to purchase the Restaurant, you agree that, after,
      as applicable, the effective date of expiration of this Agreement or the
      Notification Date, you will promptly and at your own expense make such
      alterations we specify to distinguish the Restaurant clearly from its former
      appearance and from other EVOS® Restaurants so as to prevent confusion by the
      public;

     

    (e)  if
      we do not have
      or do not exercise an option to purchase the Restaurant, you agree that, after,
      as applicable, the effective date of expiration of this Agreement or the
      Notification Date, you will notify the telephone company and all telephone
      directory publishers of the termination or expiration 

     

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        
of
        your right to
        use any telephone, telecopy or other numbers and any regular, classified
        or
        other telephone directory listings associated with
        any Mark, authorize        
the transfer of such numbers and directory listings to us or at our direction
        and/or instruct the telephone company to forward all calls made to your
        telephone numbers to numbers we specify; and

    

     

    (f)  you
      agree to
      furnish us, within 30 days after, as applicable, the effective date of
      expiration of this Agreement or the Notification Date, with evidence
      satisfactory to us of your compliance with the foregoing
      obligations.

     

    17.3.  Confidential
      Information.  You
      agree that, upon termination or expiration of this Agreement, you will
      immediately cease to use any of our Confidential Information in any business
      or
      otherwise and return to us all copies of the Manual and any other confidential
      materials that we have loaned to you.

    

    17.4.  Competitive
      Restrictions.  Upon
      our termination of this Agreement in accordance with its terms and conditions,
      or expiration of this Agreement (if we offer, but you elect not to acquire,
      a
      successor franchise),

    

    (a)  you
      and your owners
      agree that, for a period of 2 years commencing on the effective date of
      termination or expiration or the date on which a person restricted by this
      section begins to comply with this section, whichever is later, neither you
      nor
      any of your owners will have any direct or indirect interest (e.g., through
      a
      spouse or child) as a disclosed or beneficial owner, investor, partner,
      director, officer, employee, consultant, representative or agent or in any
      other
      capacity in any Competitive Business operating:

     

    
      	
              (i)  

            	
              at
                the
                Site;

            

    

     

    
      	
              (ii)  

            	
              within
                50
                miles of the Site; or

            

    

     

    
      	
              (iii)  

            	
              within
                50
                miles of any other EVOS® Restaurant in operation or under construction on
                the later of the effective date of the termination or expiration
                or the
                date on which a person restricted by this section complies with this
                section.

            

    

     

    If
      any person restricted by this section
      refuses voluntarily to comply with the foregoing obligations, the 2-year period
      will commence with the entry of an order of an arbitrator, or court if
      necessary, enforcing this provision.  You and your owners expressly
      acknowledge that you possess skills and abilities of a general nature and have
      other opportunities for exploiting such skills.  Consequently,
      enforcement of the covenants made in this section will not deprive you of your
      personal goodwill or ability to earn a living.

    

    17.5.  Our
      Right to Purchase.

     

    (a)  ExerciseofOption.  We
      have the option, exercisable by giving written notice to you within 60 days
      from
      the date of such termination or Triggering Event, to purchase the Restaurant
      from you, including the leasehold rights to the Site.  Upon
      either:  (i) our termination of this Agreement in accordance with
      its terms and conditions or your termination of this Agreement without cause;
      or
      (ii) the occurrence of a “Triggering
      Event.”  (The date on which we notify you whether or not we
      are exercising our option is referred to in this Agreement as the
“Notification Date”). We have the unre­stricted right to
      assign this option to purchase the Restaurant.  We will be
      enti­tled to all customary warranties and representations in connection with
      our asset pur­chase, 

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        
including,
        without
        limitation, representations and warranties as to ownership and condition
        of and
        title to assets; liens and encumbrances on assets; validity of con­tracts
        and agreements; and liabilities affecting the assets, contingent or
        otherwise.

    

     

    (b)  LeaseholdRights.  You
      agree at our election:

     

    
      	
              (i)  

            	
              to
                assign
                your leasehold interest in the Site to us;
                or

            

    

     

    
      	
              (ii)  

            	
              to
                enter into
                a sublease for the remainder of the lease term on the same terms
                (including renewal options) as the prime
                lease.

            

    

     

    (c)  Purchase
      Price.  The “purchase price” for the Restaurant will be its
      fair market value, determined in a manner consistent with reasonable
      depreciation of the Restaurant’s equipment, signs, inventory, materials and
      supplies, provided that the Restaurant will be valued as an independent business
      and its value will not include any value for:

     

    
      	
              (i)  

            	
              the
                Franchise
                or any rights granted by this
                Agreement;

            

    

     

    
      	
              (ii)  

            	
              the
                Marks;
                or

            

    

     

    
      	
              (iii)  

            	
              participation
                in the network of EVOS®
Restaurants.

            

    

     

    When
      determining
      the purchase price, the Restaurant’s fair market value will include the goodwill
      you developed in the market of the Restaurant that exists independent of the
      goodwill of the Marks and the System.  The length of the remaining
      term of the lease for the Site will also be considered in determining the
      Restaurant’s fair market value.  We may exclude from the assets
      purchased cash or its equivalent and any equipment, signs, inventory, materials
      and supplies that are not reasonably necessary (in function or quality) to
      the
      Restaurant’s operation or that we have not approved as meeting standards for
      EVOS® Restaurant, and the purchase price will reflect such
      exclusions.

    

    (d)  Appraisal.  If
      we and you are unable to agree on the Restaurant’s fair market value, its fair
      mar­ket value will be determined by 3 independent appraisers who
      collectively will conduct 1 appraisal.  We will appoint one appraiser,
      you will appoint one appraiser and the two party-appointed appraisers will
      appoint the third appraiser.  You and we agree to select our
      respective appraisers within 15 days after we notify you that we are exercising
      our option to purchase the Restaurant, and the two appraisers so chosen are
      obligated to appoint the third appraiser within 15 days after the date on which
      the last of the two party-appointed appraisers was appointed.  You and
      we will bear the cost of our own appraisers and share equally the fees and
      expenses of the third appraiser chosen by the two party-appointed
      appraisers.  The appraisers are obligated to complete their appraisal
      within 30 days after the third appraiser’s appointment.

     

    The
      purchase price will be paid in 2
      installments. The first installment consisting of $30,000 (the “First
      Installment”) will be paid within 15 days of our notifying you of our
      election to purchase your Business.  The second installment of the
      purchase price (the “Second Installment”) will equal the total
      purchase price agreed to among the parties or determined by the appraisal
      process described in this section less the First Installment. The Second
      Installment will be paid at a time of our choosing, not later than 90 days
      after
      determination of the pur­chase price.  We have the right to set
      off against the purchase price, and thereby 

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    reduce
      the purchase
      price by, any and all amounts you or your owners owe to us or any amounts of
      rent you owe the landlord of the Site, or supplies or your creditors that we
      pay
      on your behalf in order to obtain lawful possession of the Site, any of your
      assets or to cover amounts you owe suppliers we do business with.  You
      agree not to take any actions detrimental to the operations of your Restaurant
      prior to closing.  At the closing, which will occur at our option, on
      or within 15 days of our payment of the First Installment, you agree to deliver
      instruments transferring to us:

    

    
      	
              (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), with all sales and other transfer taxes paid by you;
                and

            

    

     

    
      	
              (ii)  

            	
              all
                licenses
                and permits of the Restaurant which may be assigned or transferred;
                and

            

    

     

    
      	
              (iii)  

            	
              the
                leasehold
                interest and improvements in the
                Site.

            

    

     

    If
      you cannot
      deliver clear title to all of the purchased assets, or if there are other
      unresolved issues, the closing of the sale will be accomplished through an
      escrow.  You and your owners further agree to execute general
      releases, in form satisfactory to us, of any and all claims against us and
      our
      shareholders, officers, directors, employees, agents, successors and
      assigns.

    

    17.6.  Continuing
      Obligations.  All
      of
      our and your (and your owners’ and affiliates’) obligations which 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 in full or by their
      nature expire.  Examples include indemnification, payment,
      de-identification and dispute resolution provisions.

    

    17.7.  Buyout
      Option.

     

    (a)  Triggering
      Event:  We, or our designee, may purchase all of the rights
      and interests you have under this Agreement, at our option, if we experience
      a
      Triggering Event.  A “Triggering Event” means the
      sale of all or substantially all of our assets to an unaffiliated third party,
      the sale or exchange of more than 50% of our total issued and outstanding equity
      securities to an unaffiliated third party, a merger or consolidation of us
      with
      or into an unaffiliated third party in which neither we nor our affiliates
      obtain or maintain a controlling voting interest, or the effectiveness of a
      registration statement for the initial public offering of our equity
      securities.

     

    (b)  Purchase
      Price Form:  If we exercise our option pursuant to a
      Triggering Event other than an initial public offering, the purchase price
      will
      be paid to you in the same form or type of consideration, and upon the same
      terms, as we or our shareholders receive in the Triggering Event
      transaction.  If the Triggering Event is an initial public offering,
      at our option the purchase price will be paid to you either in cash or stock
      valued at the initial public offering price.

     

    (c)  Purchase
      Price Amount: The purchase price will be
      determined in accordance with the appraisal procedures of Section
      17.5.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    (d)  Procedural
      Aspects: We must notify you of our intention to
      exercise our purchase option not later than 60 days following our entering
      into
      the definitive purchase and sale agreement or the underwriting agreement
      relating to the Triggering Event.  Unless the Triggering Event is not
      completed or closed, in which case our notice and election to exercise our
      purchase option will not be effective, the closing for such acquisition will
      take place at the completion or closing of the Triggering Event or, at our
      option, within 180 days thereafter.  You will have all of your rights
      and benefits, and all of your obligations, under this Agreement until we (or
      our
      designee) have consummated the acquisition pursuant to our purchase
      option.  The acquisition will be in the form of an assignment and
      relinquishment of your rights under this Agreement and we will not be obligated
      to assume any of your obligations or liabilities whatsoever other than those
      we,
      at our option, expressly agree, in writing, to assume.  If we do so,
      we will notify you at least 3 days prior to closing of such obligations we
      wish
      to assume.  Moreover, your rights must be transferred to us free and
      clear of all liens, pledges, security interests and encumbrances.  We
      will be entitled to all customary representations and warranties in that regard,
      in such form and content as we reasonably require.  You will cooperate
      with us in preparing for the sale of such rights, any transition in ownership,
      and to accurately calculate the purchase price.  You will not,
      however, be required to transfer any assets other than your contract rights
      in
      this Agreement, unless we elect, as provided in subsection (f) immediately
      following this subsection, to acquire as part of the transaction any or all
      of
      the franchises owned or controlled by you or your affiliates.

     

    (e)  Option
      to
      Include Franchises: If we exercise our option pursuant to a Triggering
      Event to acquire your rights under this Agreement, we may also at the time
      we
      notify you of our election also elect to include as part of the acquisition
      any
      or all franchise(s) owned or controlled by you or your affiliates, including
      all
      of your or their rights and obligations under any related Franchise Agreement
      and property lease and including all assets used in connection with the
      operation of the EVOS® Restaurant covered by this Agreement.

     

    
      	
              18.    
                  

            	
              RELATIONSHIP
                OF THE
                PARTIES/INDEMNIFICATION.

            

    

     

    18.1.  Independent
      Contractors.  You
      and we understand and agree that this Agreement does not create a fiduciary
      relationship between you and us, that we and you are and will be independent
      contractors and that nothing in this Agreement is intended to make either you
      or
      us a general or special agent, joint venturer, partner or employee of the other
      for any purpose. You agree to conspicuously identify yourself in all dealings
      with customers, suppliers, public officials, Restaurant personnel and others
      as
      the owner of the Restaurant under a franchise we have granted and to place
      such
      notices of independent ownership on such forms, business cards, stationery
      and
      advertising and other materials as we may require from time to
      time.

    

    18.2.  No
      Liability for Acts of Other Party.  You
      agree not to employ any of the Marks in signing any contract or applying for
      any
      license or permit, or in a manner that may result in our liability for any
      of
      your indebtedness or obligations, and that you will not use the Marks in any
      way
      we have not expressly authorized.  Neither we nor you will make any
      express or implied agreements, warranties, guarantees or representations or
      incur any debt in the name or on behalf of the other, represent that our
      respective relationship is other than franchisor and franchisee or be obligated
      by or have any liability under any agreements or representations made by the
      other that are not expressly authorized in writing.  We will not be
      obligated for any damages to any person or property directly or indirectly
      arising out of the Restaurant’s operation or the business you conduct pursuant
      to this Agreement.

    

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    18.3.  Taxes.  We
      will have no liability for any sales, use, alcohol surcharge, service,
      occupation, excise, gross receipts, income, payroll, property or other taxes,
      whether levied upon you or the Restaurant, in connection with the business
      you
      conduct (except any taxes we are required by law to collect from you with
      respect to purchases from us).  Payment of all such taxes are your
      responsibility.

    

    18.4.  Indemnification.  You
      agree to indemnify, defend and hold harmless us, our affiliates and our
      respective shareholders, directors, officers, employees, agents, successors
      and
      assignees (the “Indemnified Parties”) against and to reimburse
      any one or more of the Indemnified Parties for all claims, obligations and
      damages described in this section, any and all taxes described in this Agreement
      and any and all claims and liabilities directly or indirectly arising out of
      the
      Restaurant’s operation (even if our negligence is alleged) or your breach of
      this Agreement.  For purposes of this indemnification,
“claims” includes all obligations, damages (actual,
      consequential or otherwise) and costs reasonably incurred in the defense of
      any
      claim against any of the Indemnified Parties, including, without limitation,
      reasonable accountants’, arbitrators’, attorneys’ and expert witness fees, costs
      of investigation and proof of facts, court costs, other expenses of litigation,
      arbitration or alternative dispute resolution and travel and living expenses.
      We
      have the right to defend any such claim against us. This indemnity will continue
      in full force and effect subsequent to and notwithstanding the expiration or
      termination of this Agreement. Under no circumstances will we or any other
      Indemnified Party be required to seek recovery from any insurer or other third
      party, or otherwise to mitigate our, their or your losses and expenses, in
      order
      to maintain and recover fully a claim against you. You agree that a failure
      to
      pursue such recovery or mitigate a loss will in no way reduce or alter the
      amounts we or another Indemnified Party may recover from you. If, for any
      reason, you are not permitted by law to indemnify us for a particular claim,
      then you and we will each contribute our proportionate amount necessary to
      satisfy the claim. The contribution ratio will be based on the proportion of
      revenues you and we receive from the operation of your Restaurant; which you
      and
      we agree is approximately a 95:05 ratio from you to us. (So if a claim is for
      $100, you contribute $95 and we contribute $5.)

    

    
      	
              19.     
                 

            	
              ENFORCEMENT.

            

    

     

    19.1.  Severability;
      Substitution of Valid Provisions.  Except
      as otherwise stated in this Agreement, each term of this Agreement, and any
      portion of any term, are severable.  The remainder of this Agreement
      will continue in full force and effect.  To the extent that any
      provision restricting your competitive activities is deemed unenforceable,
      you
      and we agree that such provisions will be enforced to the fullest extent
      permissible under governing law.  This Agreement will be deemed
      automatically modified to comply with such governing law if any applicable
      law
      requires:  (a) a greater prior notice of the termination of or
      refusal to renew this Agreement; or (b) the taking of some other action not
      described in this Agreement; or (c) if any EVOS® System Standard is invalid
      or unenforceable.  We may modify such invalid or unenforceable
      provision to the extent required to be valid and enforceable.  In such
      event, you will be bound by the modified provisions.

    

    19.2.  Waivers.  We
      will not be deemed to have waived our right to demand exact compliance with
      any
      of the Terms, even if at any time:  (a) we do not exercise a
      right or power available to us under this Agreement; or (b) we do
      not insist on your strict compliance with the terms of this Agreement; or
      (c) if there develops a custom or practice which is at variance with the
      terms of this Agreement; or (d) if we accept payments which are otherwise
      due to us under this Agreement.  Similarly, our waiver of any
      particular breach or series of breaches under this Agreement or of any similar
      term in any other agreement between you and us or between us and any other
      franchise owner, will not affect our rights with respect to any later breach
      by
      you or anyone else.

    

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    19.3.  Limitation
      of Liability.  Neither
      of the parties will be liable for loss or dam­age or deemed to be in breach
      of this Agreement if failure to perform obliga­tions results
      from:

    

    (a)  compliance
      with any
      law, ruling, order, regulation, re­quirement or in­struc­tion of any
      federal, state or municipal government or any department or agency
      thereof;

     

    (b)  acts
      of God, war,
      terror or similar like;

     

    (c)  acts
      or omissions
      of a similar event or cause.

     

    However,
      such
      delays or events do not excuse payments of amounts owed at any
      time.

    

    19.4.  Approval
      and Consents.  Whenever
      this Agreement requires our advance appro­val, agreement or consent, you
      agree to make a timely written request for it.  Our approval or
      consent will not be valid unless it is in writing.  Except where
      expressly stated otherwise in this Agreement, we have the abso­lute right to
      refuse any request by you or to withhold our appro­val of any action or
      omission by you.  If we provide to you any waiver, approval, consent,
      or suggestion, or if we neglect or delay our response or deny any request for
      any of those, we will not be deemed to have made any warranties or guarantees
      which you may rely on, and will not assume any liability or obligation to
      you.

    

    19.5.  Waiver
      of Punitive Damages.
      EXCEPT
      FOR YOUR OBLI­GATIONS TO INDEMNIFY US AND CLAIMS FOR UNAUTHORIZED USE OF THE
      MARKS OR CONFIDENTIAL INFORMATION, YOU AND WE EACH WAIVE TO THE FULL EXTENT
      PERMITTED BY LAW ANY RIGHT TO, OR CLAIM FOR, ANY PUNITIVE OR EXEMPLARY DAMAGES
      AGAINST THE OTHER. YOU AND WE ALSO AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN
      YOU AND US, THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND
      RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS.

    

    19.6.  Limitations
      of Claims.
      ANY AND
      ALL CLAIMS ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP AMONG YOU AND
      US
      MUST BE MADE BY WRITTEN NOTICE TO THE OTHER PARTY WITHIN 1 YEAR FROM THE
      OCCUR­RENCE OF THE FACTS GIVING RISE TO SUCH CLAIM (REGARDLESS OF WHEN IT
      BECOMES KNOWN); EXCEPT FOR CLAIMS ARISING FROM: (A) UNDER-REPORTING OF
      GROSS SALES; (B) UNDER-PAYMENT OF AMOUNTS OWED TO US OR OUR AFFILIATES;
      (C) CLAIMS FOR INDEMNIFI­CATION; AND/OR (D) UNAUTHORIZED USE OF
      THE MARKS.  HOWEVER, THIS PROVISION DOES NOT LIMIT THE RIGHT TO
      TERMINATE THIS AGREEMENT IN ANY WAY.

    

    19.7.  Governing
      Law.  EXCEPT
      TO THE EXTENT THIS AGREE­MENT OR ANY PARTICULAR DISPUTE IS GOVERNED BY THE
      U.S. TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. §1051 AND THE SECTIONS
      FOLLOWING IT) OR OTHER FEDERAL LAW, THIS AGREEMENT AND THE FRANCHISE ARE
      GOV­ERNED BY THE LAW OF THE STATE IN WHICH OUR PRINCIPAL BUSINESS OFFICE IS
      LOCATED, EXCLUDING ANY LAW REGULATING THE SALE OF FRANCHISES OR GOVERNING THE
      RELATIONSHIP BETWEEN A FRANCHI­SOR AND FRAN­CHISE OWNER, UNLESS THE
      JURISDICTIONAL REQUIREMENTS OF SUCH LAWS ARE MET INDEPENDENTLY WITHOUT REFERENCE
      TO THIS SECTION.  ALL MATTERS RELATING TO ARBITRATION ARE GOVERNED BY

     

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

       

      THE
        FEDER­AL ARBITRATION ACT.  References to any law or
        regulation also refer to any successor laws or regulations and any implementing
        regulations for any statute, as in effect at the relevant
        time.  References to a governmental agency also refer to any successor
        regulatory body that succeeds to the function of such agency.

    

    

    19.8.  Jurisdiction.  YOU
      AND WE CONSENT AND IRREVOCABLY SUBMIT TO THE JURISDICTION AND VENUE OF ANY
      STATE
      OR FEDERAL COURT OF COMPE­TENT JURIS­DICTION LOCATED IN HILLSBOROUGH
      COUNTY, FLORIDA, AND WAIVE ANY OBJECTION TO THE JURISDICTION AND VENUE OF SUCH
      COURTS.  THE EXCLUSIVE CHOICE OF JURISDICTION DOES NOT PRECLUDE THE
      BRINGING OF ANY ACTION BY THE PARTIES OR THE ENFORCEMENT BY THE PARTIES IN
      ANY
      JUDGMENT OBTAINED IN ANY SUCH JURISDICTION, IN ANY OTHER APPROPRIATE
      JURISDICTION OR THE RIGHT OF THE PARTIES TO CONFIRM OR ENFORCE ANY ARBITRATION
      AWARD IN ANY APPROPRIATE JURISDICTION.

    

    19.9.  Waiver
      of Jury Trial.  YOU
      AND WE EACH IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
      COUNTERCLAIM, WHETH­ER AT LAW OR IN EQUITY, BROUGHT BY EITHER YOU OR
      US.

    

    19.10.  Cumulative
      Remedies.  The
      rights and remedies provided in this Agreement are cumulative and neither you
      nor we will be prohibited from exer­cising any other right or remedy
      provided under this Agreement or permitted by law or equity.

    

    19.11.  Costs
      and Attorneys Fees.  If
      a
      claim for amounts owed by you to us or any of our affiliates is asserted in
      any
      legal or arbitration proceeding or if either you or we are required to enforce
      this Agreement in a judicial or arbitration proceeding, the party prevailing
      in
      such proceeding will be entitled to reim­bursement of its costs and
      expenses, including rea­son­able accounting and attorneys fees.
      Attorneys fees will include, without limitation, rea­sonable legal fees
      charged by attorneys, paralegal fees, and costs and disbursements, whether
      incurred prior to, or in preparation for, or con­templation of, the filing
      of written demand or claim, action, hearing, or proceeding to enforce the
      obligations of the parties under this Agreement.

    

    19.12.  Binding
      Effect.  This
      Agreement is binding on and will inure to the benefit of our successors and
      assigns.  Except as otherwise provided in this Agreement, this
      Agreement will also be binding on your  successors and assigns, and
      your heirs, executors and administra­tors.

    

    19.13.  Entire
      Agreement.  This
      Agreement, including the introduction, addenda and exhib­its to it,
      constitutes the entire agree­ment between you and us.  There are
      no other oral or written understandings or agreements between you and us
      concerning the sub­ject matter of this Agreement.  Except as
      expressly provided otherwise in this Agree­ment, this Agreement may be
      modified only by written agreement signed by both you and us.

    

    19.14.  No
      Liability to Others; No Other Beneficiaries.  We
      will not, because of this Agreement or by virtue of any approv­als, advice
      or services provided to you, be liable to any person or legal entity who is
      not
      a party to this Agreement.  Except as specifically described in this
      Agreement, no other party has any rights because of this Agreement.

    

    19.15.  Construction.  The
      headings of the sections are for convenience only.  If two or more
      persons are at any time franchise owners hereunder, whether or not as partners
      or joint venturers, their obligations and liabilities to us are joint and
      several.  This Agree­ment may be signed in multiple copies, each
      of which will be an original.  “A or B” means
“A” or “B” or both.

    

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    19.16.  Certain
      Definitions.  The
      term “family member” refers to parents, spouses, off­spring
      and siblings, and the parents and siblings of spouses.  The term
“affiliate” means any Business Entity directly or
      indi­rectly owned or controlled by a person, under common control with a
      person or controlled by a person.  The terms “franchisee,
      franchise owner, you and your” are applicable to one or more persons, a
      Business Entity, as the case may be.  The singular use of any pronoun
      also includes the plural and the mas­culine and neuter usages
      in­clude the other and the feminine.  The
      term “per­son” includes individuals or Business
      Entities.  The term “section” refers to a section or
      subsection of this Agreement. The word “control” means the
      power to direct or cause the direction of management and
      policies.  The word “owner” means any person holding
      a direct or indirect, legal or beneficial ownership interest or voting rights
      in
      another person (or a transferee of this Agreement or an interest in you),
      including any person who has a direct or indirect interest in you or this
      Agreement and any person who has any other legal or equitable interest, or
      the
      power to vest in himself any legal or equitable interest, in the revenue,
      profits, rights or assets.

    

    19.17.  Timing
      is of the Essence.  It
      will be a material breach of this Agreement to fail to perform any obligation
      within the time required or permitted by this Agreement.  In computing
      time periods from one date to a later date, the words “from”
and “commencing on” (and the like) mean “from and
      including”; and the words “to,”
“until” and “ending on” (and the like)
      mean
“to but excluding.”  Indications of time of day mean
      Jacksonville, Florida time.

    

    
      	
              20.     
                 

            	
              DISPUTE
                RESOLUTION.

            

    

     

    20.1.  Mediation.  During
      the Term, certain disputes may arise between you and us that may be resolvable
      through mediation.  To facilitate such resolution, you and we agree
      that each party must, before commencing any arbitration proceeding, submit
      the
      dispute for non-binding arbitration at a mutually agreeable location (if you
      and
      we cannot agree on a location, the mediation will be conducted at our
      headquarters) to 1 mediator, appointed under the American Arbitration
      Association’s Commercial Mediation Rules.  The mediator will conduct a
      mediation in accordance with such rules.  You and we agree that any
      statements made by either you or us in any such mediation proceeding will not
      be
      admissible in any subsequent arbitration or other legal
      proceeding.  Each party will bear its own costs and expenses of
      conducting the mediation and share equally the costs of any third parties who
      are required to participate.  Nevertheless, both you and we have the
      right in a proper case to obtain temporary restraining orders and temporary
      or
      preliminary injunctive relief from a court of competent
      jurisdiction.  However, the parties must immediately and
      contemporaneously submit the dispute for non-binding mediation.  If
      any dispute between the parties cannot be resolved through mediation within
      60
      days following the appointment of a mediator, the parties must submit the
      dispute to arbitration subject to the following terms and
      conditions.

    

    20.2.  Agreement
      to Arbitrate.  Except
      for claims (as defined below) related to or based on the marks (which at our
      sole option may be sub­mitted to any court of competent jurisdiction) and
      except as other­wise expressly provided by section 20.4 of this
      Agreement, any liti­ga­tion, claim, dispute, suit, action, controversy,
      proceeding or otherwise (“Dispute”) between or involving you
      and us (and/or involving you and/or any claim against or involving any of our
      or
      our affiliates’ shareholders, directors, partners, officers, employees, agents,
      attorneys, accountants, affiliates, guarantors or otherwise), which are not
      resolved within 45 days of notice from either you or we to the other, will
      be
      submitted to arbitration to the office of the American Arbitration Association
      closest to our then existing principal business address.  The
      arbitration will be conducted by the American Arbitration Association pursuant
      to its commercial arbitration rules.  All matters relating to
      arbitration will be governed by the 

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        
federal
        arbitration
        act (9 U.S.C. §§1 etseq.) And not by any state arbitration
        law.  The parties to any arbitration will execute an appropriate
        confidentiality agreement, excepting only such disclosures and filings as
        are
        required by law.  Sections 19.5 – 19.8 and 19.10 - 19.11 of this
        Agreement are incorporated as rules that the arbitrators must follow in making
        its determination.

    

    

    20.3.  Place
      and Procedure.  The
      arbitration proceedings will be conducted at our headquarters in Tampa,
      Florida.  Any dispute and any arbitration will be conducted and
      resolved on an individual basis only and not a class-wide, multiple plaintiff
      or
      similar basis.  Any such arbitration proceeding will not be
      consolidated with any other arbitration proceeding involving any other person,
      except for disputes involving affiliates of the parties to such
      arbitration.  The parties agree that, in connection with any such
      arbi­tration proceeding, each must submit or file any claim which would
      constitute a com­pulsory counterclaim (as defined by rule 13 of the federal
      rules of civil procedure) within the same proceeding as the dispute to which
      it
      relates.  Any such dispute which is not submitted or filed in such
      proceeding will be barred.

    

    20.4.  Awards
      and Decisions.  The
      proceedings will be heard by 1 arbitrator.  The arbitrator will have
      the right to award any relief which he deems proper in the circumstances,
      including, for example, money damages (with interest on unpaid amounts from
      their due date(s)), specific performance, temporary and/or permanent injunctive
      relief, and reimbursement of attorneys’ fees and related costs to the prevailing
      party.  The arbitrator will not have the authority to award exemplary
      or punitive damages except as otherwise permitted by this Agreement, nor the
      right to declare any mark generic or otherwise invalid.  You and we
      agree to be bound by the provisions of any limitations or the time on which
      claims must be brought under applicable law or under this Agreement, whichever
      expires earlier.  The award and decision of the arbitrator will be
      conclusive and binding and judgment on the award may be entered in any court
      of
      competent jurisdiction.  The parties acknowledge and agree that any
      arbitration award may be enforced against either or both of them in a court
      of
      competent jurisdiction and each waives any right to contest the validity or
      enforceability of such award.  Without limiting the forego­ing,
      the parties will be entitled in any such arbi­tration proceeding to the
      entry of an order by a court of competent jurisdiction pursuant to an opinion
      of
      the arbitrator for specific perfor­mance of any of the requirements of this
      Agreement.  Judgment upon an arbitration award may be entered in any
      court having jurisdiction and will be binding, final and
      non-appealable.

    

    20.5.  Specific
      Performance.  Nothing
      in this Agreement will prevent either you or we from obtaining temporary
      restraining orders and temporary or preliminary injunctive relief in a court
      of
      competent jurisdiction.  However, you and we must contemporaneously
      submit the dispute for arbitration on the merits.

    

    20.6.  Third
      Parties.  The
      arbitration provisions of this Agreement are intended to benefit and bind
      certain third party non-signatories, and all of yours and our principal owners
      and affiliates.

    

    20.7.  Survival.  This
      provision continues in full force and effect subsequent to and notwithstanding
      the expiration or termination of this Agreement for any reason.

    

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    
      	
              21.    
                  

            	
              NOTICES
                AND PAYMENTS.

            

    

     

    All
      notices and
      reports permitted or required under this Agreement or by the Manuals must be
      in
      writing and will be deemed deliv­ered:

    

    (a)  at
      the time
      delivered by hand;

     

    (b)  1
      business day
      after transmission by facsimile, telecopy, e-mail, or other electronic
      system;

     

    (c)  2
      business days
      after being placed in the hands of a commercial airborne courier service for
      next business day delivery; or

     

    (d)  3
      business days
      after placement in the United States mail by registered or certified mail,
      return receipt requested, postage prepaid.

     

    Delivery
      by
      facsimile, e-mailed and electronic means constitutes a writing.  All
      such notices must be addressed to the parties as follows:

    

    If
      to
      Us:             EVOS
      USA, INC.

    609
      South Howard Avenue

    Tampa,
      Florida 33606

    Attention:  Michael
      Jeffers

    

    If
      to
      You:           HEALTHY
      FAST FOOD, INC.

    1075
      American Pacific - Suite C

    Henderson,
      NV  89074

    Attention:  Mr.
      Terry
      Cartwright

    

    Either
      you or we may change the address for
      delivery of all notices and reports and any such notice will be effective within
      10 business days of any change in address.  Any required payment or
      report not actually received by us during regular business hours on the date
      due
      (or postmarked by postal authorities at least 2 days prior to such date, or
      in
      which the receipt from the commercial courier service is not dated prior to
      2
      days prior to such date) will be deemed delinquent.

    

    Intending
      to be bound, you and we sign and
      deliver this Agreement in 2 counterparts on the Agreement Date.

    

     

    
      	 "US"	 	 	 "YOU"	 
	 	 	 	 	 
	 EVOS
              USA, INC.	 	 	 HEALTHY
              FAST FOOD, INC.	 
	 	 	 	 	 
	
              By: 
                

            	 	 	
              By:
                /s/ Gregory
                R. Janson

            	 
	
              Name:

            	 	 	
              Name: 
                Gregory R. Janson

            	 
	
              Title: 

            	 	 	
              Title: 
                President

            	 
	 Date:	 	 	 Date: 
              12/14/05	 

    

    
      
        
          51

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “A”

    TO
      THE

    EVOS
      USA,
      INC.

    FRANCHISE
      AGREEMENT

    DATED
      DECEMBER 14th,
      2005

    WITH

    

    HEALTHY
      FAST FOOD, INC.

    (Name
      of
      Franchise Owner)

    

    GLOSSARY

    

    This
      Glossary is
      intended as a general guideline to assist you in reading the Franchise
      Agreement.  You must review the Franchise Agreement to get an exact
      definition of a term.

    

    
      	
              Term

            	
              Definition

            
	
              Account

              Section
                5.3

            	
              The
                Restaurant’s bank operating account from which you may be required to
                authorize us to initiate debit entries or credit correction entries
                to for
                payments of Royalties and other amounts due under this Agreement,
                including any applicable interest charges.

            
	
              Accounting
                Period

              Section
                5.2

            	
              That
                period
                we designate in the Manual (currently a 7-day accounting period for
                Royalty and Marketing Calculations that runs from Monday through
                Sunday
                and a 4, 4, 5-week accounting period for financial statement
                purposes).

            
	
              Accounting
                System

              Section
                12.1

            	
              The
                format,
                reporting system and accounting system that we require from time
                to
                time.

            
	
              Affiliate

              Section
                19.16

            	
              Any
                Business
                Entity directly or indirectly owned or controlled by a person, under
                common control with a person controlled by a person.

            
	
              Agreement

              Introductory
                Paragraph

            	
              The
                Franchise
                Agreement between EVOS USA, INC. and you.

            
	
              Agreement
                Date

              Introductory
                Paragraph

            	
              Date
                of this
                Agreement.

            
	
              Annualized
                Compensation

              Section
                9.3

            	
              The
                aggregate
                compensation (including wages/salary, bonus and other employers’ costs of
                all taxes and benefits) payable to an employee (i) during the 12-month
                period immediately preceding the date of such employee’s employment with
                us, our affiliate or our franchise owners (if employed during an
                entire
                12-month period); or (ii) during the period of such employee’s employment
                with us prorated on the basis of a 365 day year.

            
	
              Anti-Terrorism

              Section
                1.3

            	
              Executive
                Order 13224 issued by the President of the United States, the USA
                PATRIOT
                Act, and all other present and future federal, state and local laws,
                ordinances, regulations, policies, lists and any other requirements
                of any
                governmental authority addressing or in any way relating to terrorist
                acts
                and acts of war.

            
	
              Art

              Section
                4.2

            	
              The
                paintings, pictures, photographs, murals, drawings, sculptures and
                other
                forms of art we designate, commission, loan or lease, or require
                you to
                commission, borrow, lease or possess for display at your
                Site.

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
               Term

            	
              Definition

            
	
              Assignment
                Notice

              Section
                3.3(c)(iii)

            	
              The
                written
                notice from us in the event of your default of the lease or the Franchise
                Agreement that the lease will be assigned to us.

            
	
              Business
                Entity

              Section
                1.5

            	
              A
                business
                organization like a corporation, limited liability company or
                partnership.

            
	
              Capital
                Modifications

              Section
                10.3

            	
              Additional
                capital that you may be obligated to invest in the Restaurant because
                of
                System Standards modifications that we may make from time to
                time.

            
	
              Claims

              Section
                18.4

            	
              All
                obligations, damages (actual, consequential or otherwise) and costs
                reasonably incurred in the defense of any claim against any of the
                Indemnified Parties, including, without limitation, reasonable
                accountants’, arbitrators’, attorneys’ and expert witness fees, costs of
                investigation and proof of facts, court costs, other expenses of
                litigation, arbitration or alternative dispute resolution and travel
                and
                living expenses.

            
	
              Competitive
                Business

              Section
                9.2

            	
              Any
                business
                or facility owning, operating or managing, or granting franchises
                or
                licenses to others to do so, any restaurant or food service facility
                (other than an EVOS® Restaurant operated under a franchise agreement with
                us) that offers casual dining, catering, delivery service, kiosk-type
                or
                take-out of smoothies, shakes, healthier fare or organic or natural
                type
                sandwiches, wraps, burgers, salads, vegetable burgers, turkey burgers,
                soy
                burgers and other soy-based foods, lower fat French fries, lower
                carb
                foods, specialty ketchup, or any type of deli or fast foods and
                beverages which are then offered by EVOS®
                Restaurants.

            
	
              Computer
                System

              Section
                10.6

            	
              The
                computer
                equipment and operating software that we periodically specify and
                that you
                must use in developing and operating the
                Restaurant.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
               Term

            	
               Definition

            
	
              Confidential
                Information

              Section
                8.1

            	
              Certain
                confidential information that we have developed relating to the
                development and operation of EVOS® Restaurants, which includes (a) the
                System and the know-how related to its use; (b) plans, specifications,
                size and physical characteristics of EVOS® Restaurants; (c) Site selection
                criteria, land use and zoning techniques and criteria; (d) methods
                in
                obtaining licensing and meeting regulatory requirements; (e) sources
                and
                design of equipment, furniture, forms, materials and supplies; (f)
                marketing, advertising and promotional programs for EVOS® Restaurants; (g)
                staffing and delivery methods and techniques for personal services;
                (h)
                the selection, testing and training of personnel for EVOS® Restaurants;
                (i) the recruitment, qualification and investigation methods to secure
                employment for employment candidates; (i) any computer software we
                make
                available or recommend for EVOS® Restaurants; (j) methods, techniques,
                formats, specifications, procedures, information and systems related
                to
                and knowledge of and experience in the development, operation and
                franchising of EVOS® Restaurants; (k) knowledge of specifications for and
                suppliers of certain products, materials, supplies, furniture, furnishings
                and equipment; (l) recipes, formulas, preparation methods and serving
                techniques; and (m) knowledge of operating results and financial
                performance of EVOS® Restaurants other than those operated by you (or your
                affiliates); (o) e-commerce related data.

            
	
              Construction

              Section
                4.1(c)

            	
              Construction
                of all required improvements to the Site.

            
	
              Construction
                Plans

              Section
                4.1

            	
              Those
                preliminary layouts, construction plans, space plans and specifications
                which you are obligated, at your expense, have an architect prepare
                to
                suit the shape and dimensions of the Site in connection with its
                construction.

            
	
              Control

              Section
                19.16

            	
              The
                power to
                direct or cause the direction of management and
                policies.

            
	
              Co-Op

              Section
                11.6

            	
              An
                association of EVOS® Restaurant owners that may be established in the
                geographic area in which your Restaurant is located.

            
	
              Copyrights

              Section
                7.1

            	
              All
                information capable of being rendered into tangible form created
                by you or
                others in connection with or used in connection with the System or
                your
                Restaurant, including, for example, Art, written materials, electronic
                data, Software, Manuals, menus, brochures, music, live performances,
                photography, the content compilation of website’s graphics and the
                like.

            
	
              Delivery
                Area

              Section
                10.12

            	
              The
                area, if
                any, indicated in Exhibit C in which you are permitted or required
                to
                provide Delivery Services if we permit or require you to do
                so.

            
	
              Delivery
                Services

              Section
                10.12

            	
              Those
                delivery, catering or Other Services that we designate or
                approve.

            
	
              Designs

              Section
                4.1

            	
              Those
                sets of
                design plans for the Restaurant which we or our affiliates provide
                to
                you.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
               Term

            	
               Definition

            
	
              Disability

              Section
                14.5

            	
              A
                mental or
                physical disability, impairment or condition that is reasonably expected
                to prevent or actually does prevent you or an owner of a controlling
                interest in you from managing and operating the
                Restaurant.

            
	
              Dispute

              Section
                20.2

            	
              Any
                litigation, claim, dispute, suit, action, controversy, proceeding
                or
                otherwise between or involving you and us (and/or involving you and/or
                any
                claim against or involving any of our or our affiliates’ shareholders,
                directors, partners, officers, employees, agents, attorneys, accountants,
                affiliates, guarantors or otherwise).

            
	
              Drive
                Through Service

              Section
                10.12

            	
              Curbside
                or a
                drive through lane service we designate or approve.

            
	
              e-commerce

              Section
                11.7

            	
              Internet,
                Intranet, World Wide Web, wireless technology, digital cable, use
                of
                e-names, e-mail, home pages, bulletin boards, chatrooms, linking,
                framing,
                on-line purchasing cooperatives, marketplaces, barter exchanges,
                and
                related technologies, methods, techniques, registrations, networking,
                and
                any electronic communication, commerce, computations, or any means
                of
                interactive electronic documents contained in a network of computers
                or
                similar devices linked by communications software or
                hardware.

            
	
              e-names

              Section
                11.7

            	
              URLs,
                domain
                names, website addresses, metatags, links, key words, e-mail addresses
                and
                any other means of electronic identification or origin.

            
	
              EVOS®
                Restaurants

              Section
                1.1

            	
              A
                restaurant
                specializing in serving healthier fast food in a fast-casual environment,
                operating under the Marks and our System.

            
	
              Family
                Member

              Section
                19.16

            	
              Parents,
                spouses, off­spring and siblings, and the parents and siblings of
                spouses.

            
	
              First
                Installment

              Section
                17.5

            	
              The
                first
                portion of the purchase price which is paid at Closing.

            
	
              Franchise
                Owner

              Introduction

            	
              You;
                one or
                more persons, a Business Entity, as the case may be.

            
	
              Franchise

              Section
                2.1

            	
              The
                franchise
                we grant to you to operate an EVOS® Restaurant

            
	
              Franchisee

              Section
                19.16

            	
              You;
                one or
                more persons, a Business Entity, as the case may be: Franchise
                Owner

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
               Term

            	
               Definition

            
	
              Gross
                Sales

              Section
                5.4

               

            	
              The
                total
                actual gross charges for all products (food and non-food) and services
                sold to customers of the Restaurant for cash or credit, whether these
                sales are made at or from the Restaurant premises, or any other
                location.  However, any amounts that you collect and transmit to
                state or local authorities as sales, use or other similar taxes are
                excluded from the definition of Gross Sales.

            
	
              Improvements

              Section
                8.2

            	
              Ideas,
                con­cepts, methods, techniques or improvements relating to your
                Restaurant that you or your personnel may develop in the course of
                the
                opera­tion of your Restaurant.

            
	
              Indemnified
                Parties

              Section
                18.4

            	
              Us,
                our
                affiliates and our respective shareholders, directors, officers,
                employees, agents, successors and assignees that you must agree to
                indemnify, defend and hold harmless against and to reimburse any
                one or
                more of for all claims, obligations and damages and any and all taxes
                and
                any and all claims and liabilities directly or indirectly arising
                out of
                the Restaurant’s operation (even if our negligence is alleged) or your
                breach of this Agreement.

            
	
              Lease

              Section
                3.3(b)

            	
              The
                lease for
                your Site.

            
	
              Lease
                Assignment

              Section
                3.3(a)

            	
              Our
                then-current form of Lease Assignment of Lease Agreement that you
                and any
                lessor must sign before entering into a lease for the
                Site.

            
	
              Manuals

              Section
                10.1

            	
              Our
                Manuals
                consisting of such materials (including, as applicable, audiotapes,
                videotapes, magnetic media, computer software and written materials)
                that
                we generally furnish to franchise owners from time to time for use
                in
                operating an EVOS® Restaurant

            
	
              Marks

              Section
                1.1

            	
              Certain
                trademarks, trade names, service marks, and other commercial symbols
                used
                in the operation of the Restaurants including the trade and service
                mark,
                “EVOS® (typed
                drawing),”“EVOSTM”
                (word mark), and associated logos, Art, copyrighted works, designs,
                artwork and trade dress, trademarks, service marks, commercial symbols
                and
                e-names that we create, commission, use, promote and license or may
                create, commission, use and license.

            
	
              MIS
                System

              Section
                11.7

            	
              The
                reporting
                and accounting systems we specify that you must utilize to report
                gross
                sales and other business information to us including internet and
                intranet
                networks we establish.

            
	
              Notification
                Date

              Section
                17.5(a)

               

            	
              The
                date on
                which we notify you whether or not we are exercising our option upon
                termination of this Agreement to purchase the Restaurant from you,
                including the leasehold rights to the Site.

            
	
              Opening
                Date

              Section
                2.2

            	
              The
                date your
                Restaurant opens for business.

            
	
              Operating
                Assets

              Section
                4.3

            	
              All
                fixtures,
                furnishings, equipment (signs, including cash registers, telecopiers
                and
                computer hardware and software) used in connection with your
                Restaurant.

            
	
              Other
                Services

              Section
                10.4

            	
              New
                or
                additional products or services through your Business, like catering,
                Delivery Service, Drive-Thru service and any other products and services
                we may designate from time to time.

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
               Term

            	
               Definition

            
	
              Owner

              Section
                19.16

            	
              Any
                person
                holding a direct or indirect, legal or beneficial ownership interest
                or
                voting rights in another person (or a transferee of this Agreement
                or an
                interest in you), including any person who has a direct or indirect
                interest in you or this Agreement and any person who has any other
                legal
                or equitable interest, or the power to vest in himself any legal
                or
                equitable interest, in the revenue, profits, rights or
                assets.

            
	
              Payment
                Day

              Section
                5.2

            	
              3rd
                business day
                following the end of the Accounting Period when Royalty payments
                must be
                made.

            
	
              Person

              Section
                19.16

            	
              Any
                individual or Business Entity.

            
	
              Preferred
                Vendor Agreements

              Section
                4.5

            	
              The
                agreements we may require you to enter into with Preferred Vendors
                in
                order to participate in the Preferred Vendor Programs.

            
	
              Preferred
                Vendors

              Section
                4.5

            	
              Those
                approved suppliers which we designate for participation in Approved
                Vendor
                Programs.

            
	
              Preferred
                Vendor Programs

              Section
                4.5

            	
              Those
                programs and terms which we or our affiliates develop in connection with
                our, our affiliates’ or our franchise owners’ receipt of benefits or
                certain negotiated terms from approved suppliers.

            
	
              Program
                Rules

              Section
                4.5

            	
              The
                rules we
                designate for Preferred Vendor Programs.

            
	
              Proprietary
                Materials

              Section
                10.8

            	
              All
                articles
                that you must purchase from manufacturers or us or our approved suppliers
                that are used in operating the Restaurant and bearing any of the
                Marks or
                which utilize any of our proprietary recipes, or food service preparation
                methods, including certain foods, ingredients, condiments, paper
                goods,
                employee clothing (such as shirts, hats and aprons) and
                menus.

            
	
              Report
                Day

              Section
                5.2

            	
              3rd
                day of each
                Accounting Period when you must report your Gross Sales to us for
                the
                preceding Accounting Period.

            
	
              Response
                Notice

              Section
                15.2

            	
              Written
                notice given to you not more than 90 days after you give us notice
                of your
                election to acquire a successor franchise of our decision: (1) to
                grant
                you a successor franchise; (2) to grant you a successor franchise
                on the
                condition that deficiencies of the Restaurant, or in your operation
                of the
                Restaurant, are corrected; or (3) not to grant you a successor franchise
                based on our determination that you and your owners have not substantially
                complied with this Agreement during its term.

            
	
              Restaurant
                Materials

              Section
                4.3

            	
              All
                supplies,
                materials, food and beverage products and magazines, reading materials
                and
                the like for use in connection with your Restaurant.

            
	
              Restaurant

              Section
                1.1

            	
              The
                EVOS®
                Restaurants that you operate under this Agreement.

            
	
              Royalty

              Section
                5.2

            	
              A
                royalty in
                the amount of 5.5% of your Gross Sales for each Accounting
                Period.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
               Term

            	
               Definition

            
	
              Second
                Installment

              Section
                17.5

            	
              The
                second
                portion of the purchase price less the First Installment which is
                paid
                after Closing.

            
	
              Section

              Section
                19.16

            	
              A
                section or
                subsection of this Agreement.

            
	
              Site

              Section
                2.1

            	
              Location
                that
                we have approved for your Restaurant.

            
	
              System

              Section
                1.1

            	
              The
                distinctive business formats, employee selection and training programs,
                methods, procedures, designs, layouts, signs, equipment, menus, use
                of
                certain soy-based products, recipes, trade dress, standards and
                specifications and the Marks under which the Restaurants operate,
                all of
                which we (or our affiliates) may improve, further develop or otherwise
                modify from time to time.

            
	
              System
                Contributions

              Section
                11.1

            	
              Contributions
                not to exceed 2% of your Gross Sales per to the System
                Fund.

            
	
              System
                Fund

              Section
                11.1

            	
              A
                fund used
                to develop advertising, marketing and public relations programs and
                materials that we deem necessary or appropriate for the goodwill
                and
                public image of EVOS® Restaurants on a system-wide
                basis.

            
	
              System
                Standards

              Section
                10.1

            	
              The
                mandatory
                and suggested specifications, standards, operating procedures and
                rules
                that we prescribe from time to time for the operation of EVOS® Restaurants
                and information relating to your other obligations under this Agreement
                and related agreements.

            
	
              Term

              Section
                2.2

            	
              Begins
                on the
                Agreement Date and expires 10 years after the Opening
                Date.

            
	
              Trade
                Area

              Section
                2.3

            	
              The
                Site and
                the area designated in Exhibit C as the Trade Area.

            
	
              Transfer

              Section
                14.2

            	
              Your
                (or your
                owners’) volun­tary, involuntary, direct or indirect assignment, sale,
                gift or other disposition of any interest in: (1) this Agreement;
                (2) you;
                or (3) the Restaurant.

            

    

     

     

     

     

     

    7exh10-2_telephone.htm

     

     

    
      

      

    

     

     

     

     

     

     

     

     

     

     

     

     

    EXHIBIT
      10.2

     

    CONDITIONAL
      ASSIGNMENT OF TELEPHONE NUMBERS AND LISTINGS

    TO
      EVOS USA, INC. DATED DECEMBER 14, 2005

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CONDITIONAL
      ASSIGNMENT OF TELEPHONE NUMBERS AND LISTINGS

    

    THIS
      CONDITIONAL ASSIGNMENT OF
      TELEPHONE NUMBERS AND LISTINGS (this “Assignment”) is
      effective as of December 14, 2005, between EVOS USA, INC., a
      Florida corporation with its principal place of business at 609 South Howard
      Avenue, Tampa, Florida 33606
      (“we,” “us” or “our”)
      and HEALTHY FAST FOOD, INC., whose current place of business is 1075 American
      Pacific – Suite C, Henderson, NV  89074 (“you” or
“your”).  You and we are sometimes referred to
      collectively as the “parties” or individually as a
“party”.

    

    BACKGROUND
      INFORMATION

    

    We
      have simultaneously entered into the certain
      Franchise Agreement (the “Franchise Agreement”) dated as of
      December 14, 2005 with you, pursuant to which you plan to own and operate an
      EVOS® Restaurant (the “Restaurant”).  The EVOS®
Restaurant uses certain proprietary knowledge, procedures,
      formats, systems,
      forms, printed materials, applications, methods, specifications, standards
      and
      techniques authorized or developed by us (collectively the
“System”).  We identify EVOS® Restaurants and various
      components of the System by certain trademarks, trade names, service marks,
      trade dress and other commercial symbols (collectively the
“Marks”).  In order to protect our interest in the
      System and the Marks, we will have the right to control the telephone numbers
      and listings of the Restaurant if the Franchise Agreement is
      terminated.

    

    OPERATIVE
      TERMS:

    

    You
      and we agree as follows:

    

    1.           Background
      Information:  The background information is true and
      correct.  This Assignment will be interpreted by reference to the
      background information. Terms not otherwise defined in this Assignment will
      have
      the meanings as defined in the Franchise Agreement.

    

    2.           Conditional
      Assignment.  You assign to us, all of your right, title
      and interest in and to those certain telephone numbers and regular, classified
      or other telephone directory listings (collectively, the “Numbers and
      Listings”) associated with the Marks and used from time to time in
      connection with the operation of the Restaurant.  This Assignment is
      for collateral purposes only.  We will have no liability or obligation
      of any kind whatsoever arising from or in connection with this Assignment,
      unless we notify the telephone company and/or the listing agencies with which
      you have placed telephone directory listings (collectively, the
“Telephone Company”) to effectuate the assignment of the
      Numbers and Listings to us.  Upon termination or expiration of the
      Franchise Agreement we will have the right and authority to ownership of the
      Numbers and Listings.  In such event, you will have no further right,
      title or interest in the Numbers and Listings and will remain liable to the
      Telephone Company for all past due fees owing to the Telephone Company on or
      before the date on which the assignment is effective.  As between us
      and you, upon termination or expiration of the Franchise Agreement, we will
      have
      the sole right to and interest in the Numbers and Listings.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    3.           Power
      of Attorney:  You irrevocably appoint us as your true and
      lawful attorney-in-fact to:  (a) direct the Telephone Company to
      effectuate the assignment of the Numbers and Listings to us: and (b) sign on
      your behalf such documents and take such actions as may be necessary to
      effectuate the assignment.  Notwithstanding anything else in the
      Assignment, however, you will immediately notify and instruct the Telephone
      Company to effectuate the assignment described in this Assignment to us when,
      and only when:  (i) the Franchise Agreement is terminated or expires;
and (ii) we instruct you to so notify the Telephone
      Company.  If you fail to promptly direct the Telephone Company to
      effectuate the assignment of the Numbers and Listings to us, we will direct
      the
      Telephone Company to do so.  The Telephone Company may accept our
      written direction, the Franchise Agreement or this Assignment as conclusive
      proof of our exclusive rights in and to the Numbers and Listings upon such
      termination or expiration.  The assignment will become immediately and
      automatically effective upon Telephone Company’s receipt of such notice from you
      or us.  If the Telephone Company requires that you and/or we sign the
      Telephone Company’s assignment forms or other documentation at the time of
      termination or expiration of the Franchise Agreement, our signature On such
      forms or documentation on your behalf will effectuate your consent and agreement
      to the assignment.  At any time, you and we will perform such acts and
      sign and deliver such documents as may be necessary to assist in or accomplish
      the assignment described herein upon termination or expiration of the Franchise
      Agreement.  The power of attorney conferred upon us pursuant to the
      provisions set forth in this Assignment is a power coupled with an interest
      and
      cannot be revoked, modified or altered without our consent.

    

    4.           Indemnification:  You
      will indemnify and hold us and our affiliates, stockholders, directors, officers
      and representatives (collectively, the “Indemnified Parties”)
      harmless from and against any and all losses, liabilities, claims, proceedings,
      demands, damages, judgments, injuries, attorneys’ fees, costs and expenses that
      any of the Indemnified Parties incur as a result of any claim brought against
      any of the Indemnified Parties or any action which any of the Indemnified
      Parties are named as a party or which any of the Indemnified Parties may suffer,
      sustain or incur by reason of, or arising out of, your breach of any of the
      terms of any agreement or contract or the nonpayment of any debt you have with
      the Telephone Company.

    

    5.           Binding
      Effect:  This Assignment is binding upon and inures to
      the benefit of the parties and their respective successors-in-interest, heirs,
      and successors and assigns.

    

    6.           Assignment
      to Control:  This Assignment will govern and control over
      any conflicting provision in any agreement or contract which you may have with
      the Telephone Company.

    

    7.           Attorney’s
      Fees, Etc.:  In any action or dispute, at law or in
      equity, that may arise under or otherwise relate to this Assignment or the
      enforcement thereof, the prevailing party will be entitled to reimbursement
      of
      its attorneys’ fees, costs and expenses from the non-prevailing
      party.  The term “attorneys’ fees” means any and all
      charges levied by an attorney for his or her services including time charges
      and
      other reasonable fees including paralegal fees and legal assistant fees and
      includes fees earned in settlement, at trial, appeal or in bankruptcy
      proceedings and/or in arbitration proceedings.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Assignment
      or any
      such section or subsection will not be affected, and will remain in full force
      and effect in accordance with its terms.

    

    9.           Governing
      Law and Forum:  This Assignment is governed by Florida
      law.  The parties will not institute any action against any of the
      other parties to this Assignment except in the state or federal courts of
      general jurisdiction in Hillsborough County, Florida, and they irrevocably
      submit to the jurisdiction of such courts and waive any objection they may
      have
      to either the jurisdiction or venue of such court.

    

    
      	ASSIGNOR:	 	 	ASSIGNEE:	 
	 	 	 	 	 
	HEALTHY
              FAST FOOD, INC.	 	 	EVOS
              USA, INC.	 
	 	 	 	 	 
	
              By:
                /s/   Gregory R. Janson

            	 	 	
              By:
                /s/
                

            	 
	
              Name: 
                Gregory R. Janson

            	 	 	
              Name: 

            	 
	
              Title: 
                President

            	 	 	
              Title:

            	 
	Date: 
              12/14/05	 	 	Date:	 

     

    

    THIS
      CONDITIONAL ASSIGNMENT OF TELEPHONE NUMBERS AND LISTINGS IS accepted and agreed
      by:

    

    

    
      	 	 	 
	 	 	 	 
	
               

            	
               

            	 	 
	 	 	(TELEPHONE
              COMPANY 	 
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Its:	 
	 	 	Date:

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