Document:

<PAGE>
                                                                    EXHIBIT 10.4

                                PLEDGE AGREEMENT

            PLEDGE AGREEMENT (as amended, modified or supplemented from time to
time, this "Agreement"), dated as of June 18, 2002, made by each of the
undersigned pledgors (each a "Pledgor" and, together with any other entity that
becomes a pledgor hereunder pursuant to Section 25 hereof, the "Pledgors") to
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Agent (together with any
successor Collateral Agent, the "Pledgee"), for the benefit of the Secured
Creditors (as defined below). Certain capitalized terms used herein are defined
in Section 2 hereof. Except as otherwise defined herein, capitalized terms used
herein and defined in the Credit Agreement (as defined below) shall be used
herein as therein defined.

                            W I T N E S S E T H :
                            - - - - - - - - - -

            WHEREAS, Fleming Companies, Inc. (the "Borrower"), the lenders
from time to time party thereto (the "Lenders"), Deutsche Bank Trust Company
Americas, as Administrative Agent (together with any successor Administrative
Agent, the "Administrative Agent"), JP Morgan Chase Bank and Citicorp North
America, Inc., as Syndication Agents, Lehman Commercial Paper Inc. and
Wachovia Bank, National Association, as Documentation Agents, Deutsche Bank
Securities Inc. and J.P. Morgan Securities Inc., as Joint Book Managers, and
Deutsche Bank Securities Inc., J.P. Morgan Securities Inc. and Salomon Smith
Barney Inc., as Joint Lead Arrangers have entered into a Credit Agreement,
dated as of June 18, 2002 (as amended, modified or supplemented from time to
time, the "Credit Agreement"), providing for the making of Loans to, and the
issuance of Letters of Credit for the account of, the Borrower, in each case
as contemplated therein (the Lenders, the Administrative Agent, the
Syndication Agents, the Documentation Agents, each Issuing Lender and the
Pledgee are herein called the "Lender Creditors");

            WHEREAS, the Borrower may on the date hereof be party to, and at any
time and from time to time on or after the date hereof may enter into, one or
more interest rate swap agreements, interest rate cap agreements, interests rate
collar agreements, interest rate hedge agreements, foreign currency exchange or
hedging agreements or other similar agreements or arrangements (each such
agreement or arrangement, an "Interest Rate Protection/Currency Exchange
Agreement" and, collectively, the "Interest Rate Protection/Currency Exchange
Agreements") with one or more Lenders or any affiliate thereof (each such Lender
or affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender's or
affiliate's successors and assigns, if any, collectively, the "Other
Creditors");

            WHEREAS, the Borrower, one or more Wholly-Owned Domestic
Subsidiaries of the Borrower and JPMorgan Chase Bank (or any successor by merger
thereto) and/or one or more of its banking affiliates or another bank reasonably
satisfactory to the Administrative Agent (collectively, the "Treasury Service
Creditors" and, together with the Lender Creditors and the Other Creditors, the
"Secured Creditors") have entered into, or in the future may enter into, a
<PAGE>
credit arrangement (with any written agreement evidencing such credit
arrangement, as amended, modified, supplemented, replaced or refinanced from
time to time, herein called the "Treasury Service Agreement"), providing for
Treasury Services;

            WHEREAS, pursuant to the Guarantee Agreement, each Pledgor that is a
party thereto has jointly and severally guaranteed to the Secured Creditors the
payment when due of all Guaranteed Obligations as described therein;

            WHEREAS, it is a condition precedent to (i) the making of Loans to,
and the issuance of Letters of Credit for the account of, the Borrower under the
Credit Agreement, (ii) the Other Creditors entering into Interest Rate
Protection/Currency Exchange Agreements and (iii) the continued extension of
Treasury Services by the Treasury Service Creditors that each Pledgor shall have
executed and delivered to the Pledgee this Agreement; and

            WHEREAS, each Pledgor will obtain benefits from the incurrence of
Loans by, and the issuance of Letters of Credit for the account of, the Borrower
under the Credit Agreement, the entering into by the Borrower of Interest Rate
Protection/Currency Exchange Agreements and the extension of Treasury Services
to the Borrower and its respective Wholly-Owned Domestic Subsidiaries and,
accordingly, each Pledgor desires to enter into this Agreement in order to
satisfy the condition described in the preceding paragraph;

            NOW, THEREFORE, in consideration of the foregoing and other benefits
accruing to each Pledgor, the receipt and sufficiency of which are hereby
acknowledged, each Pledgor hereby makes the following representations and
warranties to the Pledgee for the benefit of the Secured Creditors and hereby
covenants and agrees with the Pledgee for the benefit of the Secured Creditors
as follows:

            1. SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor
to the Pledgee for the benefit of the Secured Creditors to secure:

                  (i) the full and prompt payment when due (whether at the
      stated maturity, by acceleration or otherwise) of all obligations,
      liabilities and indebtedness (including, without limitation, principal,
      premium, interest (including, without limitation, all interest that
      accrues after the commencement of any case, proceeding or other action
      relating to the bankruptcy, insolvency, reorganization or similar
      proceeding of any Pledgor at the rate provided for in the respective
      documentation, whether or not a claim for post-petition interest is
      allowed in any such proceeding), reimbursement obligations under Letters
      of Credit, Fees, costs and indemnities) of such Pledgor to the Lender
      Creditors, whether now existing or hereafter incurred under, arising out
      of, or in connection with, the Credit Agreement and the other Loan
      Documents to which such Pledgor is a party (including, in the case of each
      Pledgor that is a Guarantor, all such obligations, liabilities and
      indebtedness of such Pledgor under the Guarantee Agreement) and the due
      performance and compliance by such Pledgor with all of the terms,
      conditions and agreements contained in the Credit Agreement and in such
      other Loan Documents (all such obligations, liabilities and indebtedness
      under this clause (i), except to the extent consisting of obligations or
      indebtedness with respect to Interest Rate

                                       2
<PAGE>
      Protection/Currency Exchange Agreements or Treasury Services, being herein
      collectively called the "Loan Document Obligations");

                  (ii) the full and prompt payment when due (whether at the
      stated maturity, by acceleration or otherwise) of all obligations,
      liabilities and indebtedness (including, without limitation, all interest
      that accrues after the commencement of any case, proceeding or other
      action relating to the bankruptcy, insolvency, reorganization or similar
      proceeding of any Pledgor at the rate provided for in the respective
      documentation, whether or not a claim for post-petition interest is
      allowed in any such proceeding) owing by such Pledgor to the Treasury
      Service Creditors under, or with respect to Treasury Services (including,
      in the case of a Pledgor that is a Guarantor, all such obligations,
      liabilities and indebtedness of such Pledgor under the Guarantee
      Agreement) (all such obligations, liabilities and indebtedness described
      in this clause (iii) being herein collectively called the "Treasury
      Service Obligations");

                  (iii) any and all sums advanced by the Pledgee in order to
      preserve the Collateral (as hereinafter defined) or preserve its security
      interest in the Collateral;

                  (iv) in the event of any proceeding for the collection or
      enforcement of any indebtedness, obligations or liabilities of such
      Pledgor referred to in clauses (i), (ii) and (iii) above, after an Event
      of Default shall have occurred and be continuing, the reasonable expenses
      of retaking, holding, preparing for sale or lease, selling or otherwise
      disposing of or realizing on the Collateral, or of any exercise by the
      Pledgee of its rights hereunder, together with reasonable attorneys' fees
      and court costs;

                  (v) all amounts paid by any Secured Creditor as to which such
      Secured Creditor has the right to reimbursement under Section 11 of this
      Agreement; and

                  (vi) all amounts owing to any Agent pursuant to any of the
      Loan Documents in its capacity as such;

all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (vii) of this Section 1 being herein collectively called the
"Obligations," it being acknowledged and agreed that the "Obligations" shall
include extensions of credit of the types described above, whether outstanding
on the date of this Agreement or extended from time to time after the date of
this Agreement.

            2. DEFINITIONS. (a) Unless otherwise defined herein, all capitalized
terms used herein and defined in the Credit Agreement shall be used herein as
therein defined. Reference to singular terms shall include the plural and vice
versa.

            (b) The following capitalized terms used herein shall have the
definitions specified below:

            "Administrative Agent" has the meaning set forth in the Recitals
      hereto.

                                       3
<PAGE>
            "Adverse Claim" has the meaning given such term in Section
8-102(a)(1) of the UCC.

            "Agreement" has the meaning set forth in the first paragraph hereof.

            "Borrower" shall have the meaning provided in the Recitals hereto.

            "Certificated Security" has the meaning given such term in Section
8-102(a)(4) of the UCC but shall exclude securities that do not constitute
Equity Interests or Proceeds thereof.

            "Class" has the meaning set forth in Section 22 hereof.

            "Clearing Corporation" has the meaning given such term in Section
8-102(a)(5) of the UCC.

            "Collateral" has the meaning set forth in Section 3.1 hereof.

            "Collateral Accounts" means any and all accounts established and
maintained by the Pledgee in the name of any Pledgor to which Collateral may be
credited.

            "Credit Agreement" has the meaning set forth in the Recitals hereto.

            "Domestic Corporation" has the meaning set forth in the definition
of "Stock."

            "Equity Interests" of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity of such Person,
including any preferred stock, any limited or general partnership interest and
any limited liability company membership interest.

            "Event of Default" means any Event of Default under, and as defined
in, the Credit Agreement and shall in any event include, without limitation, any
payment default on any of the Obligations after the expiration of any applicable
grace period.

            "Excluded Collateral" at any time, means any property which is
expressly excluded from the requirement that it be pledged pursuant to this
Agreement at such time pursuant to the express provisions of the penultimate
sentence of Section 3.1.

            "Excluded Entity" means, at any time, a Person in which the Pledgors
collectively own 50% or less of the Equity Interests of such Person.

            "Excluded Equity Interests" has the meaning assigned to that term in
the penultimate sentence of Section 3.1.

            "Fees" means all amounts payable pursuant to, or referred to in,
Section 2.13 of the Credit Agreement.

            "Financial Asset" has the meaning given such term in Section
8-102(a)(9) of the UCC but shall exclude Securities and any other share,
participation or other interest or any other property that does not constitute
an Equity Interest or Proceeds thereof.

                                       4
<PAGE>
            "Foreign Corporation" has the meaning set forth in the definition of
"Stock."

            "Indemnitees" has the meaning set forth in Section 11 hereof.

            "Investment Property" has the meaning given such term in Section
9-102(a)(49) of the UCC but shall exclude any Security, and any other share,
participation or other interest or any other property, that does not constitute
an Equity Interest or Proceeds thereof.

            "Lender Creditors" has the meaning set forth in the Recitals hereto.

            "Lenders" has the meaning set forth in the Recitals hereto.

            "Limited Liability Company Assets" means all assets, whether
tangible or intangible and whether real, personal or mixed (including, without
limitation, all limited liability company capital and interest in other limited
liability companies), at any time owned or represented by any Limited Liability
Company Interest.

            "Limited Liability Company Interests" means the entire limited
liability company membership interest at any time owned by any Pledgor in any
limited liability company.

            "Loan Document Obligations" has the meaning set forth in Section 1
hereof.

            "Location" of any Pledgor has the meaning given such term in Section
9-307 of the UCC.

            "Non-Voting Stock" means all capital stock which is not Voting
Stock.

            "Obligations" has the meaning set forth in Section 1 hereof.

            "Other Creditors" has the meaning set forth in the Recitals hereto.

            "Other Obligations" has the meaning set forth in Section 1 hereof.

            "Partnership Assets" means all assets, whether tangible or
intangible and whether real, personal or mixed (including, without limitation,
all partnership capital and interest in other partnerships), at any time owned
or represented by any Partnership Interest.

            "Partnership Interest" means the entire general partnership interest
or limited partnership interest at any time owned by any Pledgor in any general
partnership or limited partnership.

            "Pledgee" has the meaning set forth in the first paragraph hereof.

            "Pledgor" has the meaning set forth in the first paragraph hereof.

            "Proceeds" has the meaning given such term in Section 9-102(a)(64)
of the UCC.

            "Registered Organization" has the meaning given such term in Section
9-102(a)(70) of the UCC.

                                       5
<PAGE>
            "Required Secured Creditors" has the meaning given such term in the
Security Agreement.

            "Secured Creditors" has the meaning set forth in the Recitals
hereto.

            "Secured Debt Agreements" has the meaning set forth in Section 5
hereof.

            "Securities Account" has the meaning given such term in Section
8-501(a) of the UCC.

            "Securities Act" means the Securities Act of 1933, as amended, as in
effect from time to time.

            "Security" and "Securities" has the meaning given such term in
Section 8-102(a)(15) of the UCC and shall in any event also include all Stock
but shall not include any obligation or any share, participation or interest not
constituting an Equity Interest or Proceeds thereof.

            "Security Entitlement" has the meaning given such term in Section
8-102(a)(17) of the UCC but shall not include any right or property interest in,
or arising from, any obligation or any share, participation or interest not
constituting an Equity Interest or Proceeds thereof.

            "Stock" means (x) with respect to corporations incorporated under
the laws of the United States or any State or territory thereof or the District
of Columbia (each a "Domestic Corporation"), all of the issued and outstanding
shares of capital stock of any corporation at any time owned by any Pledgor of
any Domestic Corporation and (y) with respect to corporations not Domestic
Corporations (each a "Foreign Corporation"), all of the issued and outstanding
shares of capital stock at any time owned by any Pledgor of any Foreign
Corporation.

            "Termination Date" has the meaning set forth in Section 20 hereof.

            "Transmitting Utility" has the meaning given such term in Section
9-102(a)(80) of the UCC.

            "Treasury Service Agreement" has the meaning provided in the
recitals of this Agreement.

            "Treasury Service Creditors" has the meaning provided in the
recitals of this Agreement.

            "Treasury Service Obligations" has the meaning set forth in Section
1 hereof.

            "Treasury Services" means treasury, depositary or cash management
services (including, without limitation overnight overdraft services) provided
to the Borrower and its Wholly-Owned Subsidiaries by the Treasury Service
Creditors, and automated clearinghouse transfers of funds to, the Treasury
Service Creditors, in each case pursuant to uncommitted lines of credit.

                                       6
<PAGE>
            "UCC" means the Uniform Commercial Code as in effect in the State of
New York from time to time; provided that all references herein to specific
sections or subsections of the UCC are references to such sections or
subsections, as the case may be, of the Uniform Commercial Code as in effect in
the State of New York on the date hereof.

            "Uncertificated Security" means any Security that is not represented
by a certificate.

            "Voting Stock" means all classes of capital stock of any Foreign
Corporation entitled to vote.

            3. PLEDGE OF SECURITIES, ETC.

            3.1 Pledge. To secure the Obligations now or hereafter owed or to be
performed by such Pledgor, each Pledgor does hereby grant, pledge and assign to
the Pledgee for the benefit of the Secured Creditors, and does hereby create a
continuing security interest in favor of the Pledgee for the benefit of the
Secured Creditors in, all of the right, title and interest in and to the
following, whether now existing or hereafter from time to time acquired
(collectively, the "Collateral"):

            (a) each of the Collateral Accounts, including any and all assets of
whatever type or kind deposited by such Pledgor in such Collateral Account,
whether now owned or hereafter acquired, existing or arising, including, without
limitation, all Financial Assets, Investment Property, Securities or interests
therein of any type or nature deposited or required by the Credit Agreement or
any other Secured Debt Agreement to be deposited in such Collateral Account, and
all investments and all certificates (including depository receipts, if any)
from time to time representing or evidencing the same, and all dividends,
interest, distributions, cash and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the foregoing;

            (b) all Securities owned by such Pledgor from time to time and all
options and warrants owned by such Pledgor from time to time to purchase
Securities;

            (c) all Limited Liability Company Interests owned by such Pledgor
from time to time and all of its right, title and interest in each limited
liability company to which each such interest relates, whether now existing or
hereafter acquired, including, without limitation:

                  (A) all the capital thereof and its interest in all profits,
            losses, Limited Liability Company Assets and other distributions to
            which such Pledgor shall at any time be entitled in respect of such
            Limited Liability Company Interests;

                  (B) all other payments due or to become due to such Pledgor in
            respect of Limited Liability Company Interests, whether under any
            limited liability company agreement or otherwise, whether as
            contractual obligations, damages, insurance proceeds or otherwise;

                                       7
<PAGE>
                  (C) all of its claims, rights, powers, privileges, authority,
            options, security interests, liens and remedies, if any, under any
            limited liability company agreement or operating agreement, or at
            law or otherwise in respect of such Limited Liability Company
            Interests;

                  (D) all of such Pledgor's rights under any limited liability
            company agreement or operating agreement or at law to exercise and
            enforce every right, power, remedy, authority, option and privilege
            of such Pledgor relating to such Limited Liability Company
            Interests, including any power to terminate, cancel or modify any
            limited liability company agreement or operating agreement, to
            execute any instruments and to take any and all other action on
            behalf of and in the name of any of such Pledgor in respect of such
            Limited Liability Company Interests and any such limited liability
            company, to make determinations, to exercise any election
            (including, but not limited to, election of remedies) or option or
            to give or receive any notice, consent, amendment, waiver or
            approval, together with full power and authority to demand, receive,
            enforce, collect or receipt for any of the foregoing or for any
            Limited Liability Company Asset, to enforce or execute any checks,
            or other instruments or orders, to file any claims and to take any
            action in connection with any of the foregoing; and

                  (E) all other property hereafter delivered in substitution for
            or in addition to any of the foregoing, all certificates and
            instruments representing or evidencing such other property and all
            cash, securities, interest, dividends, rights and other property at
            any time and from time to time received, receivable or otherwise
            distributed in respect of or in exchange for any or all thereof;

            (d) all Partnership Interests owned by such Pledgor from time to
time and all of its right, title and interest in each partnership to which each
such interest relates, whether now existing or hereafter acquired, including,
without limitation:

                  (A) all the capital thereof and its interest in all profits,
            losses, Partnership Assets and other distributions to which such
            Pledgor shall at any time be entitled in respect of such Partnership
            Interests;

                  (B) all other payments due or to become due to such Pledgor in
            respect of Partnership Interests, whether under any partnership
            agreement or otherwise, whether as contractual obligations, damages,
            insurance proceeds or otherwise;

                  (C) all of its claims, rights, powers, privileges, authority,
            options, security interests, liens and remedies, if any, under any
            partnership agreement or operating agreement, or at law or otherwise
            in respect of such Partnership Interests;

                  (D) all of such Pledgor's rights under any partnership
            agreement or operating agreement or at law to exercise and enforce
            every right, power, remedy, authority, option and privilege of such
            Pledgor relating to such Partnership Interests, including any power
            to terminate, cancel or modify any partnership

                                       8
<PAGE>
            agreement or operating agreement, to execute any instruments and to
            take any and all other action on behalf of and in the name of any of
            such Pledgor in respect of such Partnership Interests and any such
            partnership, to make determinations, to exercise any election
            (including, but not limited to, election of remedies) or option or
            to give or receive any notice, consent, amendment, waiver or
            approval, together with full power and authority to demand, receive,
            enforce, collect or receipt for any of the foregoing or for any
            Partnership Asset, to enforce or execute any checks, or other
            instruments or orders, to file any claims and to take any action in
            connection with any of the foregoing; and

                  (E) all other property hereafter delivered in substitution for
            or in addition to any of the foregoing, all certificates and
            instruments representing or evidencing such other property and all
            cash, securities, interest, dividends, rights and other property at
            any time and from time to time received, receivable or otherwise
            distributed in respect of or in exchange for any or all thereof;

            (e) all Security Entitlements owned by such Pledgor from time to
time in any and all of the foregoing;

            (f) all Financial Assets and Investment Property owned by such
Pledgor from time to time; and

            (g) all Proceeds of any and all of the foregoing.

            Notwithstanding anything to the contrary contained in this
Agreement, (w) unless there has been a Change of Law as a result of which the
granting of the pledge of more than 66 2/3% of the Voting Stock of any Foreign
Corporation will not give rise to adverse "deemed dividend" tax consequences to
the Borrower under Section 956 of the Code, no Pledgor shall be required to
pledge hereunder more than 65% of the Voting Stock of any Foreign Corporation
(and such Voting Stock in excess of 65% shall not constitute "Collateral,") (x)
each Pledgor shall be required to pledge hereunder 100% of any Non-Voting Stock
at any time and from time to time acquired by such Pledgor of any Foreign
Corporation, (y) the Pledgors shall not be required to pledge Equity Interests
of any Excluded Entities (and such Equity Interests shall not constitute
"Collateral") unless the aggregate fair market value (as determined in good
faith by the Borrower) of any and all such Equity Interests not pledged pursuant
to this clause (y) exceeds $10,000,000, in which case the Pledgors shall cause
an amount of such Equity Interests otherwise excluded from the pledge pursuant
to this Agreement by operation of this clause (y) to be pledged hereunder so
that the aforementioned threshold is not exceeded (with all Equity Interests not
required to be pledged hereunder at any time pursuant to the provisions of this
clause (y) being herein called the "Excluded Equity Interests") and (z) the
Borrower and its Subsidiaries shall not be required to pledge any of the Equity
Interests of Chouteau so long as Chouteau is not treated as a Subsidiary
pursuant to the proviso contained in the first sentence of the definition of
Subsidiary contained in the Credit Agreement. If any property is not pledged
hereunder, in accordance with the provisions of the immediately preceding
sentence, but is at any time after the date of this Agreement required to be
pledged hereunder (whether because of a Change of Law, the aggregate value of
Equity Interests of Excluded Entities exceeding the threshold amount described
above, Chouteau ceasing to meet the requirements described above

                                       9

<PAGE>
or otherwise), then the security interests created under this agreement shall
automatically and immediately attach and apply to, and cover, all such property
which is required to be pledged hereunder, without the necessity of the taking
of any further action by any Pledgor, although the Pledgors shall not be excused
from following the procedures, and taking the actions, otherwise required with
respect to such property or assets pursuant to the other provisions of this
Agreement.

            3.2 Procedures. (a) To the extent that any Pledgor at any time or
from time to time owns, acquires or obtains any right, title or interest in any
Collateral, such Collateral shall automatically (and without the taking of any
action by the respective Pledgor) be pledged pursuant to Section 3.1 of this
Agreement and, in addition thereto, such Pledgor shall (to the extent provided
below) take the following actions as set forth below (as promptly as practicable
and, in any event, within 10 Business Days after it obtains such Collateral) for
the benefit of the Pledgee and the other Secured Creditors:

                  (i) with respect to a Certificated Security (other than a
      Certificated Security credited on the books of a Clearing Corporation),
      the respective Pledgor shall deliver such Certificated Security to the
      Pledgee, indorsed to the Pledgee or indorsed in blank;

                  (ii) with respect to an Uncertificated Security (other than an
      Uncertificated Security credited on the books of a Clearing Corporation),
      the respective Pledgor shall cause the issuer of such Uncertificated
      Security (or, in the case of an issuer that is not a Subsidiary of such
      Pledgor, will use its commercially reasonable efforts (which shall not
      include the payment of any amount other than nominal amounts) to cause
      such issuer) to duly authorize and execute, and deliver to the Pledgee, an
      agreement for the benefit of the Pledgee and the other Secured Creditors
      substantially in the form of Annex G hereto (appropriately completed to
      the satisfaction of the Pledgee and with such modifications, if any, as
      shall be satisfactory to the Pledgee) pursuant to which such issuer agrees
      to comply with any and all instructions originated by the Pledgee without
      further consent by the registered owner and not to comply with
      instructions regarding such Uncertificated Security (and any Partnership
      Interests and Limited Liability Company Interests issued by such issuer)
      originated by any other Person other than a court of competent
      jurisdiction;

                  (iii) with respect to a Certificated Security, Uncertificated
      Security, Partnership Interest or Limited Liability Company Interest
      credited on the books of a Clearing Corporation (including a Federal
      Reserve Bank, Participants Trust Company or The Depository Trust Company),
      the respective Pledgor shall promptly notify the Pledgee thereof and shall
      promptly take all actions required (i) to comply with the applicable rules
      of such Clearing Corporation and (ii) to perfect the security interest of
      the Pledgee under applicable law (including, in any event, under Sections
      9-314(a) and (b), 9-106 and 8-106 (d) of the UCC). Each such Pledgor
      further agrees to take such actions as the Pledgee deems necessary or
      desirable to effect the foregoing;

                  (iv) with respect to a Partnership Interest or a Limited
      Liability Company Interest (other than a Partnership Interest or Limited
      Liability Interest credited

                                       10
<PAGE>
      on the books of a Clearing Corporation), (1) if such Partnership Interest
      or Limited Liability Company Interest is represented by a certificate and
      is a Security for purposes of the UCC, the procedure set forth in Section
      3.2(a)(i) hereof, and (2) if such Partnership Interest or Limited
      Liability Company Interest is not represented by a certificate or is not a
      Security for purposes of the UCC, the procedure set forth in Section
      3.2(a)(ii) hereof; and

                  (v) with respect to cash Proceeds, (i) to the extent requested
      by the Pledgee after a Specified Default has occurred and is continuing,
      establishment by the Pledgee of a cash account in the name of such Pledgor
      over which the Pledgee shall have exclusive and absolute control and
      dominion (and no withdrawals or transfers may be made therefrom by any
      Person except with the prior written consent of the Pledgee) and (ii)
      deposit of such cash in such cash account.

            (b) In addition to the actions required to be taken pursuant to
preceding Section 3.2(a) hereof, each Pledgor shall take the following
additional actions with respect to the Securities and Collateral:

                  (i) with respect to all Collateral of such Pledgor whereby or
      with respect to which the Pledgee may obtain "control" thereof within the
      meaning of Section 8-106 of the UCC (or under any provision of the UCC as
      same may be amended or supplemented from time to time, or under the laws
      of any relevant State other than the State of New York), the respective
      Pledgor shall take all actions as may be requested from time to time by
      the Pledgee so that "control" of such Collateral is obtained and at all
      times held by the Pledgee; and

                  (ii) each Pledgor shall from time to time cause appropriate
      financing statements (on Form UCC-1 or other appropriate form) under the
      Uniform Commercial Code as in effect in the various relevant States, on
      form covering all Collateral hereunder (with the form of such financing
      statements to be satisfactory to the Pledgee), to be filed in the relevant
      filing offices so that at all times the Pledgee has a security interest in
      all Investment Property and other Collateral which is perfected by the
      filing of such financing statements (in each case to the maximum extent
      perfection by filing may be obtained under the laws of the relevant
      States, including, without limitation, Section 9-312(a) of the UCC).

            3.3 Subsequently Acquired Collateral. If any Pledgor shall acquire
(by purchase, stock dividend or otherwise) any additional Collateral at any time
or from time to time after the date hereof, such Collateral shall automatically
(and without any further action being required to be taken) be subject to the
pledge and security interests created pursuant to Section 3.1 hereof and,
furthermore, the Pledgor will promptly thereafter take (or cause to be taken)
all action with respect to such Collateral in accordance with the procedures set
forth in Section 3.2 hereof, and will promptly thereafter deliver to the Pledgee
(i) a certificate executed by a Financial Officer describing such Collateral and
certifying that the same has been duly pledged in favor of the Pledgee (for the
benefit of the Secured Creditors) hereunder and (ii) supplements to Annexes B
through G hereto as are necessary to cause such annexes to be complete and
accurate at such time.

                                       11
<PAGE>
            3.4 Transfer Taxes. Each pledge of Collateral under Section 3.1 or
Section 3.3 hereof shall be accompanied by any transfer tax stamps required in
connection with the pledge of such Collateral.

            3.5 Certain Representations and Warranties Regarding the Collateral.
Each Pledgor represents and warrants that on the date hereof: (i) the exact
legal name of such Pledgor, the type of organization of such Pledgor, the
jurisdiction of organization of such Pledgor, such Pledgor's Location, and such
Pledgor's organizational identification number, is listed on Annex A hereto;
(ii) each Subsidiary of such Pledgor, and the direct ownership thereof, is
listed in Annex B hereto; (iii) the Stock held by such Pledgor (exclusive of any
Excluded Collateral) consists of the number and type of shares of the stock of
the corporations as described in Annex C hereto; (iv) such Stock constitutes
that percentage of the issued and outstanding capital stock of the issuing
corporation as is set forth in Annex C hereto; (v) the Limited Liability Company
Interests held by such Pledgor (exclusive of any Excluded Collateral) consist of
the number and type of interests of the Persons described in Annex D hereto;
(vi) each such Limited Liability Company Interest constitutes that percentage of
the issued and outstanding equity interest of the issuing Person as set forth in
Annex D hereto; (vii) the Partnership Interests held by such Pledgor (exclusive
of any Excluded Collateral) consist of the number and type of interests of the
Persons described in Annex E hereto; (viii) each such Partnership Interest
constitutes that percentage or portion of the entire partnership interest of the
Partnership as set forth in Annex E hereto; (ix) the exact address of each chief
executive office of such Pledgor is listed on Annex F hereto; (x) the Pledgor
has complied with the respective procedure set forth in Section 3.2(a) with
respect to each item of Collateral described in Annexes C through E hereto; (xi)
the Borrower in good faith believes that the aggregate value of all Equity
Interests of all Excluded Entities owned by the Borrower and its Subsidiaries
does not exceed $10,000,000; and (xii) such Pledgor owns no other Securities,
Limited Liability Company Interests or Partnership Interests (exclusive of any
Excluded Collateral).

            4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. If and to the
extent necessary to enable the Pledgee to perfect its security interest in any
of the Collateral or to exercise any of its remedies hereunder, the Pledgee
shall have the right to appoint one or more sub-agents for the purpose of
retaining physical possession of the Collateral, which may be held (in the
discretion of the Pledgee) in the name of the relevant Pledgor, endorsed or
assigned in blank or in favor of the Pledgee or any nominee or nominees of the
Pledgee or a sub-agent appointed by the Pledgee.

            5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until there
shall have occurred and be continuing an Event of Default, each Pledgor shall be
entitled to exercise any and all voting and other consensual rights pertaining
to the Collateral owned by it, and to give consents, waivers or ratifications in
respect thereof; provided that, in each case, no vote shall be cast or any
consent, waiver or ratification given or any action taken or omitted to be taken
which would violate or be inconsistent with any of the terms of this Agreement,
the Credit Agreement, any other Loan Document, any Interest Rate
Protection/Currency Exchange Agreement or any Treasury Service Agreement
(collectively, the "Secured Debt Agreements"), or which would have the effect of
impairing the value of the Collateral or any part thereof or the position or
interests of the Pledgee or any other Secured Creditor in the Collateral. All
such

                                       12
<PAGE>
rights of each Pledgor to vote and to give consents, waivers and ratifications
shall cease in case an Event of Default has occurred and is continuing, and
Section 7 hereof shall become applicable.

            6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until there shall
have occurred and be continuing a Specified Default, all cash dividends, cash
distributions, cash Proceeds and other cash amounts payable in respect of the
Collateral shall be paid to the respective Pledgor, and such Pledgor shall be
entitled to receive, retain and utilize such cash amounts free and clear of the
Lien created by this Agreement. The Pledgee shall be entitled to receive
directly, and to retain as part of the Collateral:

                  (i) all other or additional stock, limited liability company
      interests, partnership interests, instruments or other securities or
      property (including, but not limited to, cash dividends other than as set
      forth above) paid or distributed by way of dividend or otherwise in
      respect of the Collateral;

                  (ii) all other or additional stock, limited liability company
      interests, partnership interests, instruments or other securities or
      property (including, but not limited to, cash) paid or distributed in
      respect of the Collateral by way of stock-split, spin-off, split-up,
      reclassification, combination of shares or similar rearrangement; and

                  (iii) all other or additional stock, limited liability company
      interests, partnership interests, instruments or other securities or
      property (including, but not limited to, cash) which may be paid in
      respect of the Collateral by reason of any consolidation, merger, exchange
      of stock, conveyance of assets, liquidation or similar corporate
      reorganization.

      Nothing contained in this Section 6 shall limit or restrict in any way the
Pledgee's right to receive proceeds of the Collateral in any form in accordance
with Section 3 of this Agreement. All dividends, distributions or other payments
which are received by any Pledgor contrary to the provisions of this Section 6
and Section 7 hereof shall be received in trust for the benefit of the Pledgee,
shall be segregated from other property or funds of such Pledgor and shall be
forthwith paid over to the Pledgee as Collateral in the same form as so received
(with any necessary endorsement).

            7. REMEDIES IN CASE OF EVENT OF DEFAULT. If there shall have
occurred and be continuing an Event of Default (or in the case of following
clause (i), in the case any Specified Default shall have occurred and be
continuing), then and in every such case, the Pledgee shall be entitled to
exercise all of the rights, powers and remedies (whether vested in it by this
Agreement, any other Secured Debt Agreement or by law) for the protection and
enforcement of its rights in respect of the Collateral, and the Pledgee shall be
entitled to exercise all the rights and remedies of a secured party under the
Uniform Commercial Code as in effect in any relevant jurisdiction and also shall
be entitled, without limitation, to exercise the following rights, which each
Pledgor hereby agrees to be commercially reasonable:

                  (i) to receive all amounts payable in respect of the
      Collateral otherwise payable under Section 6 hereof to the respective
      Pledgor;

                                       13
<PAGE>
                  (ii) to transfer all or any part of the Collateral into the
      Pledgee's name or the name of its nominee or nominees;

                  (iii) to vote all or any part of the Collateral (whether or
      not transferred into the name of the Pledgee) and give all consents,
      waivers and ratifications in respect of the Collateral and otherwise act
      with respect thereto as though it were the outright owner thereof (each
      Pledgor hereby irrevocably constituting and appointing the Pledgee the
      proxy and attorney-in-fact of such Pledgor, with full power of
      substitution to do so);

                  (iv) at any time and from time to time to sell, assign and
      deliver, or grant options to purchase, all or any part of the Collateral,
      or any interest therein, at any public or private sale, without demand of
      performance, advertisement or notice of intention to sell or of the time
      or place of sale or adjournment thereof or to redeem or otherwise (all of
      which are hereby waived by each Pledgor), for cash, on credit or for other
      property, for immediate or future delivery without any assumption of
      credit risk, and for such price or prices and on such terms as the Pledgee
      in its absolute discretion may determine, provided that at least 10 days'
      written notice of the time and place of any such sale shall be given to
      the respective Pledgor. The Pledgee shall not be obligated to make any
      such sale of Collateral regardless of whether any such notice of sale has
      theretofore been given. Each Pledgor hereby waives and releases to the
      fullest extent permitted by law any right or equity of redemption with
      respect to the Collateral, after sale hereunder, and all rights, if any,
      of marshalling the Collateral and any other security for the Obligations
      or otherwise. At any such sale, unless prohibited by applicable law, the
      Pledgee on behalf of the Secured Creditors may bid for and purchase all or
      any part of the Collateral so sold free from any such right or equity of
      redemption. Neither the Pledgee nor any other Secured Creditor shall be
      liable for failure to collect or realize upon any or all of the Collateral
      or for any delay in so doing nor shall any of them be under any obligation
      to take any action whatsoever with regard thereto; and

                  (v) to set-off any and all Collateral against any and all
      Obligations, and to withdraw any and all cash or other Collateral from any
      and all Collateral Accounts and to apply such cash and other Collateral to
      the payment of any and all Obligations.

            8. REMEDIES, CUMULATIVE, ETC. Each and every right, power and remedy
of the Pledgee provided for in this Agreement or in any other Secured Debt
Agreement, or now or hereafter existing at law or in equity or by statute shall
be cumulative and concurrent and shall be in addition to every other such right,
power or remedy. The exercise or beginning of the exercise by the Pledgee or any
other Secured Creditor of any one or more of the rights, powers or remedies
provided for in this Agreement or any other Secured Debt Agreement or now or
hereafter existing at law or in equity or by statute or otherwise shall not
preclude the simultaneous or later exercise by the Pledgee or any other Secured
Creditor of all such other rights, powers or remedies, and no failure or delay
on the part of the Pledgee or any other Secured Creditor to exercise any such
right, power or remedy shall operate as a waiver thereof. No notice to or demand
on any Pledgor in any case shall entitle it to any other or further notice or
demand in similar or other circumstances or constitute a waiver of any of the
rights of the Pledgee or any other Secured Creditor to any other or further
action in any circumstances without notice or demand. The Secured Creditors
agree that this Agreement may be enforced

                                       14
<PAGE>
only by the action of the Pledgee, in each case acting upon the instructions of
the Required Secured Creditors, and that no other Secured Creditor shall have
any right individually to seek to enforce or to enforce this Agreement or to
realize upon the security to be granted hereby, it being understood and agreed
that such rights and remedies may be exercised by the Pledgee for the benefit of
the Secured Creditors upon the terms of this Agreement.

            9. APPLICATION OF PROCEEDS. (a) All monies collected by the Pledgee
upon any sale or other disposition of the Collateral pursuant to the terms of
this Agreement, together with all other monies received by the Pledgee
hereunder, shall be applied in the manner provided in Section 5.4 of the
Security Agreement.

            (b) It is understood and agreed that the Pledgors shall remain
jointly and severally liable to the extent of any deficiency between the amount
of the proceeds of the Collateral hereunder and the aggregate amount of the
Obligations.

            10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the
Pledgee hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial process or otherwise), the receipt of the Pledgee or the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid
over to the Pledgee or such officer or be answerable in any way for the
misapplication or nonapplication thereof.

            11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to
indemnify and hold harmless the Pledgee in such capacity and each other Secured
Creditor and their respective successors, assigns, employees, agents and
affiliates (individually an "Indemnitee," and collectively the "Indemnitees")
from and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and (ii) to
reimburse each Indemnitee for all costs and expenses, including reasonable
attorneys' fees, in each case growing out of or resulting from this Agreement or
the exercise by any Indemnitee of any right or remedy granted to it hereunder or
under any other Secured Debt Agreement (but excluding, in each case, any claims,
demands, losses, judgments and liabilities or expenses to the extent incurred by
reason of gross negligence or willful misconduct of such Indemnitee (as
determined by a court of competent jurisdiction in a final and non-appealable
decision)). In no event shall the Pledgee be liable, in the absence of gross
negligence or willful misconduct on its part (as determined by a court of
competent jurisdiction in a final and non-appealable decision), for any matter
or thing in connection with this Agreement other than to account for monies
actually received by it in accordance with the terms hereof. If and to the
extent that the obligations of any Pledgor under this Section 11 are
unenforceable for any reason, such Pledgor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

            12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER. (a)
Nothing herein shall be construed to make the Pledgee or any other Secured
Creditor liable as a member of any limited liability company or as a partner of
any partnership

                                       15
<PAGE>
and neither the Pledgee nor any other Secured Creditor by virtue of this
Agreement or otherwise (except as referred to in the following sentence) shall
have any of the duties, obligations or liabilities of a member of any limited
liability company or partnership. The parties hereto expressly agree that,
unless the Pledgee shall become the absolute owner of Collateral consisting of a
Limited Liability Company Interest or Partnership Interest pursuant hereto, this
Agreement shall not be construed as creating a partnership or joint venture
among the Pledgee, any other Secured Creditor, any Pledgor and/or any other
Person.

            (b) Except as provided in the last sentence of paragraph (a) of this
Section 12, the Pledgee, by accepting this Agreement, did not intend to become a
member of any limited liability company or a partner of any partnership or
otherwise be deemed to be a co-venturer with respect to any Pledgor, any limited
liability company, partnership and/or any other Person either before or after an
Event of Default shall have occurred. The Pledgee shall have only those powers
set forth herein and in Annex E to the Security Agreement, and the Secured
Creditors shall assume none of the duties, obligations or liabilities of a
member of any limited liability company or as a partner of any partnership or
any Pledgor except as provided in the last sentence of paragraph (a) of this
Section 12.

            (c) The Pledgee and the other Secured Creditors shall not be
obligated to perform or discharge any obligation of any Pledgor as a result of
the pledge hereby effected.

            (d) The acceptance by the Pledgee of this Agreement, with all the
rights, powers, privileges and authority so created, shall not at any time or in
any event obligate the Pledgee or any other Secured Creditor to appear in or
defend any action or proceeding relating to the Collateral to which it is not a
party, or to take any action hereunder or thereunder, or to expend any money or
incur any expenses or perform or discharge any obligation, duty or liability
under the Collateral.

            13. FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Each Pledgor agrees
to execute and deliver to the Pledgee such financing statements, in form
reasonably acceptable to the Pledgee as the Pledgee may from time to time
reasonably request or as are reasonably necessary or desirable in the opinion of
the Pledgee to establish and maintain a valid, enforceable, perfected security
interest in the Collateral as provided herein and the other rights, powers and
security contemplated hereby. Each Pledgor will pay any applicable filing fees,
recordation taxes and related expenses relating to its Collateral. Each Pledgor
hereby authorizes the Pledgee to file any such financing statements covering the
Collateral without the signature of such Pledgor.

            (b) Each Pledgor hereby constitutes and appoints the Pledgee its
true and lawful attorney, irrevocably, with full power after the occurrence of
and during the continuance of an Event of Default (in the name of such Pledgor
or otherwise) to act, require, demand, receive, compound and give acquaintance
for any and all monies and claims for monies due or to become due to such
Pledgor under or arising out of the Collateral, to endorse any checks or other
instruments or orders in connection therewith and to file any claims or take any
action or institute any proceedings which the Pledgee may deem to be necessary
or advisable to protect the interests of the Secured Creditors, which
appointment as attorney is coupled with an interest.

                                       16
<PAGE>
            14. THE PLEDGEE AS AGENT. The Pledgee will hold in accordance with
this Agreement all items of the Collateral at any time received under this
Agreement. It is expressly understood and agreed by each Secured Creditor that
by accepting the benefits of this Agreement each such Secured Creditor
acknowledges and agrees that the obligations of the Pledgee as holder of the
Collateral and interests therein and with respect to the disposition thereof,
and otherwise under this Agreement, are only those expressly set forth in this
Agreement and in Annex E to the Security Agreement. The Pledgee shall act
hereunder on the terms and conditions set forth herein and in Annex E to the
Security Agreement.

            15. TRANSFER BY THE PLEDGORS. No Pledgor will sell or otherwise
dispose of, grant any option with respect to, or mortgage, pledge or otherwise
encumber any of the Collateral or any interest therein (except as may be
permitted in accordance with the terms of the Credit Agreement).

            16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS. (a)
Each Pledgor represents, warrants and covenants that:

                  (i) it is the legal, beneficial and record owner of, and has
      good and marketable title to, all Collateral consisting of one or more
      Securities and that it has sufficient interest in all Collateral in which
      a security interest is purported to be created hereunder for such security
      interest to attach (subject, in each case, to no pledge, lien, mortgage,
      hypothecation, security interest, charge, option, Adverse Claim or other
      encumbrance whatsoever, except the liens and security interests created by
      this Agreement);

                  (ii) it has full power, authority and legal right to pledge
      all the Collateral pledged by it pursuant to this Agreement;

                  (iii) each Pledgor has duly executed and delivered this
      Agreement and this Agreement constitutes each such Pledgor's legal, valid
      and binding obligation enforceable in accordance with its terms;

                  (iv) except to the extent already obtained or made, no consent
      of any other party (including, without limitation, any stockholder,
      partner, member or creditor of such Pledgor or any of its Subsidiaries)
      and no consent, license, permit, approval or authorization of, exemption
      by, notice or report to, or registration, filing or declaration with, any
      governmental authority is required to be obtained by such Pledgor in
      connection with (a) the execution, delivery or performance of this
      Agreement, (b) the validity or enforceability of this Agreement, (c) the
      perfection or enforceability of the Pledgee's security interest in the
      Collateral or (d) except for compliance with or as may be required by
      applicable securities laws, the exercise by the Pledgee of any of its
      rights or remedies provided herein;

                  (v) the execution, delivery and performance of this Agreement
      will not violate any provision of any applicable law or regulation or of
      any order, judgment, writ, award or decree of any court, arbitrator or
      governmental authority, domestic or foreign, applicable to such Pledgor,
      or of the certificate of incorporation, operating agreement,

                                       17
<PAGE>
      limited liability company agreement, partnership agreement or by-laws of
      such Pledgor or of any securities issued by such Pledgor or any of its
      Subsidiaries, or of any mortgage, deed of trust, indenture, lease, loan
      agreement, credit agreement or other material contract, agreement or
      instrument or undertaking to which such Pledgor or any of its Subsidiaries
      is a party or which purports to be binding upon such Pledgor or any of its
      Subsidiaries or upon any of their respective assets and will not result in
      the creation or imposition of (or the obligation to create or impose) any
      lien or encumbrance on any of the assets of such Pledgor or any of its
      Subsidiaries except as contemplated by this Agreement;

                  (vi) all of the Collateral consisting of Securities, Limited
      Liability Company Interests or Partnership Interests in Subsidiaries has
      been duly and validly issued and acquired, is fully paid and
      non-assessable (except as required by applicable law) and is subject to no
      options to purchase or similar rights;

                  (vii) the pledge and collateral assignment to, and possession
      by, the Pledgee of the Collateral consisting of Certificated Securities
      pursuant to this Agreement creates a valid and perfected first priority
      security interest in such Certificated Securities, and the proceeds
      thereof, subject to no prior Lien or encumbrance or to any agreement
      purporting to grant to any third party a Lien or encumbrance on the
      property or assets of such Pledgor which would include the Securities and
      the Pledgee is entitled to all the rights, priorities and benefits
      afforded by the UCC or other relevant law as enacted in any relevant
      jurisdiction to perfect security interests in respect of such Collateral;
      and

                  (viii) "control" (as defined in Section 8-106 of the UCC) has
      been obtained by the Pledgee over all Collateral consisting of Securities
      with respect to which such "control" may be obtained pursuant to Section
      8-106 of the UCC; provided that in the case of the Pledgee obtaining
      "control" over Collateral consisting of a Security Entitlement, such
      Pledgor shall have taken all steps in its control so that the Pledgee
      obtains "control" over such Security Entitlement.

            (b) Each Pledgor covenants and agrees that it will defend the
Pledgee's right, title and security interest in and to the Securities and the
proceeds thereof against the claims and demands of all persons whomsoever; and
each Pledgor covenants and agrees that it will have like title to and right to
pledge any other property at any time hereafter pledged to the Pledgee as
Collateral hereunder and will likewise defend the right thereto and security
interest therein of the Pledgee and the other Secured Creditors.

            (c) If at any time any Pledgor acquires additional Equity Interests
of any Excluded Entity, the Borrower shall determine whether or not all Equity
Interests of the Pledgors in Excluded Entities constitute Excluded Equity
Interests and shall deliver a written notice to the Pledgee if, and to the
extent, any such Equity Interests do not constitute Excluded Equity Interests
(which written notice shall describe in reasonable detail the Equity Interests
of all Excluded Entities being pledged hereunder as a result thereof and any
related actions being taken as required by this Agreement as a result thereof).
Furthermore, in connection with each certificate provided by the Borrower
pursuant to Section 5.01(c) of the Credit Agreement, the Borrower shall
determine whether (x) any Equity Interests which theretofore constitute Excluded

                                       18
<PAGE>
Equity Interests no longer constitute same and (y) whether any changes to the
Annexes to this Pledge Agreement are required (whether as a result of
circumstances described in preceding clause (x) or otherwise), and together with
the respective such certificate delivered pursuant to Section 5.01(c) of the
Credit Agreement, the Borrower shall deliver to the Pledgee (i) if it determines
that any Equity Interests which theretofore constitute an Excluded Equity
Interests no longer constitute same, a written notice to such effect (which
written notice shall describe in reasonable detail the Equity Interests of all
Excluded Entities being pledged hereunder as a result thereof and any related
actions being taken as required by this Agreement as a result thereof) and (ii)
any updated Annexes required as a result of any change as described in preceding
clauses (x) and (y).

            (d) Each Pledgor covenants and agrees that it will take no action
which would violate any of the terms of any Secured Debt Agreement; it being
understood that a violation of the terms of an Interest Rate Protection/Currency
Exchange Agreement or the Treasury Service Agreement shall not, in and of
itself, constitute a Default under paragraph (e) of Article VII of the Credit
Agreement.

            17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED
ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION;
LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO; ETC. The exact
legal name of each Pledgor, the type of organization of such Pledgor, whether or
not such Pledgor is a Registered Organization, the jurisdiction of organization
of such Pledgor, such Pledgor's Location, the organizational identification
number (if any) of each Pledgor, and whether or not such Pledgor is a
Transmitting Utility, is listed on Annex A hereto for such Pledgor. No Pledgor
shall change its legal name, its type of organization, its status as a
Registered Organization (in the case of a Registered Organization), its status
as a Transmitting Utility or as a Person which is not a Transmitting Utility, as
the case may be, its jurisdiction of organization, its Location, or its
organizational identification number (if any), except that any such changes
shall be permitted (so long as not in violation of the applicable requirements
of the Secured Debt Agreements and so long as same do not involve (x) a
Registered Organization ceasing to constitute same or (y) any Pledgor changing
its jurisdiction of organization or Location from the United States or a State
thereof to a jurisdiction of organization or Location, as the case may be,
outside the United States or a State thereof) if (i) it shall have given to the
Collateral Agent not less than 10 days' prior written notice of each change to
the information listed on Annex A (as adjusted for any subsequent changes
thereto previously made in accordance with this sentence), together with a
supplement to Annex A which shall correct all information contained therein for
the respective Pledgor, and (ii) in connection with the respective such change
or changes, it shall have taken all action reasonably requested by the
Collateral Agent to maintain the security interests of the Collateral Agent in
the Collateral intended to be granted hereby at all times fully perfected and in
full force and effect. In addition, to the extent that any Pledgor does not have
an organizational identification number on the date hereof and later obtains
one, such Pledgor shall promptly thereafter notify the Collateral Agent of such
organizational identification number and shall take all actions reasonably
satisfactory to the Collateral Agent to the extent necessary to maintain the
security interest of the Collateral Agent in the Collateral intended to be
granted hereby fully perfected and in full force and effect.

                                       19
<PAGE>
            18. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC. The obligations of each
Pledgor under this Agreement shall be absolute and unconditional and shall
remain in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation: (i) any renewal,
extension, amendment or modification of or addition or supplement to or deletion
from any Secured Debt Agreement or any other instrument or agreement referred to
therein, or any assignment or transfer of any thereof; (ii) any waiver, consent,
extension, indulgence or other action or inaction under or in respect of any
such agreement or instrument including, without limitation, this Agreement;
(iii) any furnishing of any additional security to the Pledgee or its assignee
or any acceptance thereof or any release of any security by the Pledgee or its
assignee; (iv) any limitation on any party's liability or obligations under any
such instrument or agreement or any invalidity or unenforceability, in part, of
any such instrument or agreement or any term thereof; or (v) any bankruptcy,
insolvency, reorganization, composition, adjustment, dissolution, liquidation or
other like proceeding relating to any other Pledgor or any Subsidiary of any
other Pledgor, or any action taken with respect to this Agreement by any trustee
or receiver, or by any court, in any such proceeding, whether or not such other
Pledgor shall have notice or knowledge of any of the foregoing.

            19. REGISTRATION, ETC. (a) If there shall have occurred and be
continuing an Event of Default then, and in every such case, upon receipt by any
Pledgor from the Pledgee of a written request or requests that such Pledgor
cause any registration, qualification or compliance under any Federal or state
securities law or laws to be effected with respect to all or any part of the
Collateral consisting of Securities, Limited Liability Company Interests or
Partnership Interests, such Pledgor as soon as practicable and at its expense
will cause such registration to be effected (and be kept effective) and will
cause such qualification and compliance to be declared effected (and be kept
effective) as may be so requested and as would permit or facilitate the sale and
distribution of such Collateral, including, without limitation, registration
under the Securities Act, as then in effect (or any similar statute then in
effect), appropriate qualifications under applicable blue sky or other state
securities laws and appropriate compliance with any other government
requirements, provided that the Pledgee shall furnish to such Pledgor such
information regarding the Pledgee as such Pledgor may reasonably request in
writing and as shall be required in connection with any such registration,
qualification or compliance. Such Pledgor will cause the Pledgee to be kept
advised in writing as to the progress of each such registration, qualification
or compliance and as to the completion thereof, will furnish to the Pledgee such
number of prospectuses, offering circulars or other documents incident thereto
as the Pledgee from time to time may reasonably request, and will indemnify the
Pledgee, each other Secured Creditor and all others participating in the
distribution of such Collateral against all claims, losses, damages and
liabilities caused by any untrue statement (or alleged untrue statement) of a
material fact contained therein (or in any related registration statement,
notification or the like) or by any omission (or alleged omission) to state
therein (or in any related registration statement, notification or the like) a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same may have been caused by an
untrue statement or omission based upon information furnished in writing to such
Pledgor by the Pledgee or such other Secured Creditor expressly for use therein.

                                       20
<PAGE>
            (b) If at any time when the Pledgee shall determine to exercise its
right to sell all or any part of the Collateral consisting of Securities,
Limited Liability Company Interests or Partnership Interests pursuant to Section
7 hereof, and the Collateral or the part thereof to be sold shall not, for any
reason whatsoever, be effectively registered under the Securities Act, as then
in effect, the Pledgee may, in its sole and absolute discretion, sell such
Collateral, as the case may be, or part thereof by private sale in such manner
and under such circumstances as the Pledgee may deem necessary or advisable in
order that such sale may legally be effected without such registration. Without
limiting the generality of the foregoing, in any such event the Pledgee, in its
sole and absolute discretion (i) may proceed to make such private sale
notwithstanding that a registration statement for the purpose of registering
such Collateral or part thereof shall have been filed under such Securities Act,
(ii) may approach and negotiate with a single possible purchaser to effect such
sale, and (iii) may restrict such sale to a purchaser who will represent and
agree that such purchaser is purchasing for its own account, for investment, and
not with a view to the distribution or sale of such Collateral or part thereof.
In the event of any such sale, the Pledgee shall incur no responsibility or
liability for selling all or any part of the Collateral at a price which the
Pledgee, in its sole and absolute discretion, in good faith deems reasonable
under the circumstances, notwithstanding the possibility that a substantially
higher price might be realized if the sale were deferred until after
registration as aforesaid.

            20. TERMINATION; RELEASE. (a) On the Termination Date, this
Agreement and the security interest created hereby shall terminate (provided
that all indemnities set forth herein including, without limitation, in Section
11 hereof shall survive any such termination), and the Pledgee, at the request
and expense of any Pledgor, will execute and deliver to such Pledgor a proper
instrument or instruments acknowledging the satisfaction and termination of this
Agreement, and will duly assign, transfer and deliver to such Pledgor (without
recourse and without any representation or warranty) such of the Collateral as
has not theretofore been sold or otherwise applied or released pursuant to this
Agreement, together with any monies at the time held by the Pledgee or any of
its sub-agents hereunder. As used in this Agreement, "Termination Date" shall
mean the date upon which the total Commitments and all Interest Rate
Protection/Currency Exchange Agreements have been terminated (and no further
Commitments may be provided), all Loans under the Credit Agreement have been
repaid in full, all Letters of Credit have been terminated, all Treasury
Services have been terminated and all outstanding obligations thereunder and
under the Treasury Service Agreement have been repaid in full and all
Obligations then due and payable have been paid in full.

            (b) In the event that any part of the Collateral is sold in
connection with a sale permitted by Section 6.02 of the Credit Agreement (other
than a sale to any Pledgor or any Subsidiary thereof) or is otherwise released
at the direction of the Required Secured Creditors and the proceeds of such sale
or sales or from such release are applied in accordance with the provisions of
the Credit Agreement, to the extent required to be so applied, the Pledgee, at
the request and expense of any Pledgor, will duly assign, transfer and deliver
to such Pledgor (without recourse and without any representation or warranty)
such of the Collateral (and releases therefor) as is then being (or has been) so
sold or released and has not theretofore been released pursuant to this
Agreement.

                                       21
<PAGE>
            (c) At any time that a Pledgor desires that the Pledgee assign,
transfer and deliver Collateral (and releases therefor) as provided in Section
20(a) or (b) hereof, it shall deliver to the Pledgee a certificate signed by a
Financial Officer of the Borrower stating that the release of the respective
Collateral is permitted pursuant to such Section 20(a) or (b).

            (d) The Pledgee shall have no liability whatsoever to any other
Secured Creditor as the result of any release of Collateral by it in accordance
with this Section 20.

            21. NOTICES, ETC. Except as otherwise specified herein, all notices
and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

            (a) if to any Pledgor, at:

                  Fleming Companies, Inc.
                  1945 Lakepointe Drive
                  Lewisville, Texas  75057
                  Attention:  Treasurer
                  Telephone No.:    (972) 906-8000
                  Telecopier No.:   (972) 906-1530;

            (b) if to the Pledgee, at:

                  Deutsche Bank Trust Company Americas
                  31 West 52nd Street
                  New York, New York  10019
                  Attention:  Marguerite Sutton
                  Telephone No.:    (646) 324-2206
                  Telecopier No.:   (646) 324-7456;

            (c) if to any Lender Creditor, either (x) to the Administrative
Agent, at the address of the Administrative Agent specified in the Credit
Agreement, or (y) at such address as such Lender Creditor shall have specified
in the Credit Agreement;

            (d) if to any Other Creditor, at such address as such Other Creditor
shall have specified in writing to the Pledgors and the Pledgee;

            (e) if to any Treasury Service Creditor, at such address as such
Treasury Service Creditor shall have specified in writing to each Pledgor and
the Collateral Agent;

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder. All notices and
other communication given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

            22. WAIVER; AMENDMENT. None of the terms and conditions of this
Agreement may be changed, waived, modified or varied in any manner whatsoever,
except in

                                       22
<PAGE>
accordance with the terms of the Security Agreement or as otherwise contemplated
in Section 25 hereof.

            23. MISCELLANEOUS. This Agreement shall be binding upon the parties
hereto and their respective successors and assigns and shall inure to the
benefit of and be enforceable by each of the parties hereto and its successors
and assigns, provided that no Pledgor may assign any of its rights or
obligations under this Agreement without the prior consent of the Collateral
Agent. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF
THE STATE OF NEW YORK. EACH PLEDGOR IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. The headings in this
Agreement are for purposes of reference only and shall not limit or define the
meaning hereof. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which shall constitute one
instrument. In the event that any provision of this Agreement shall prove to be
invalid or unenforceable, such provision shall be deemed to be severable from
the other provisions of this Agreement which shall remain binding on all parties
hereto.

            24. RECOURSE. This Agreement is made with full recourse to the
Pledgors and pursuant to and upon all the representations, warranties, covenants
and agreements on the part of the Pledgors contained herein and in the other
Secured Debt Agreements and otherwise in writing in connection herewith or
therewith.

            25. ADDITIONAL PLEDGORS. It is understood and agreed that any
Guarantor that desires to become a Pledgor hereunder, or is required to execute
a counterpart of this Agreement after the date hereof pursuant to the
requirements of the Credit Agreement or any other Loan Document, shall become a
Pledgor hereunder by (x) executing (i) a counterpart hereof and delivering same
to the Collateral Agent, or (ii) a joinder agreement in form and substance
satisfactory to the Collateral Agent, (y) delivering supplements to Annexes A
through F, inclusive, hereto as are necessary to cause such Annexes to be
complete and accurate with respect to such additional Pledgor on such date and
(z) taking all actions as specified in this Agreement as would have been taken
by such Pledgor had it been an original party to this Agreement, in each case
with all documents required above to be delivered to the Collateral Agent and
with all documents and actions required above to be taken to the reasonable
satisfaction of the Collateral Agent.

                                    * * * *

                                       23

<PAGE>
IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this Agreement to
be executed by their duly elected officers duly authorized as of the date first
above written.

                                       FLEMING COMPANIES, INC., as a Pledgor

                                       By: /s/ Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Senior Vice President and
                                                  Secretary

                                       ABCO FOOD GROUP, INC., as a Pledgor

                                       By: /s/James R. Vaughan
                                           --------------------------------
                                           Name:  James R. Vaughan
                                           Title: President

                                       ABCO MARKETS INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       ABCO REALTY CORP., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

<PAGE>
                                       AG, L.L.C., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       2

<PAGE>
                                       AMERICAN LOGISTICS GROUP, INC., as a
                                          Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       BAKER'S FOOD GROUP, INC., as a Pledgor

                                       By: /s/James R. Vaughan
                                           --------------------------------
                                           Name:  James R. Vaughan
                                           Title: President

                                       CARDINAL WHOLESALE, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       3

<PAGE>
                                       DUNIGAN FUELS, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FAVAR CONCEPTS, LTD., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FLEMING FOODS MANAGEMENT CO., L.L.C.,
                                          as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FLEMING FOODS OF TEXAS, L.P., as a
                                          Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FLEMING INTERNATIONAL LTD., as a
                                          Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       4

<PAGE>
                                       FLEMING SUPERMARKETS OF FLORIDA, INC.,
                                          as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FLEMING TRANSPORTATION SERVICE, INC.,
                                          as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FLEMING WHOLESALE, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       FOOD 4 LESS BEVERAGE COMPANY, INC., as
                                          a Pledgor

                                       By: /s/Charles Hall
                                           --------------------------------
                                           Name:  Charles Hall
                                           Title: President

                                       FUELSERV, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       5

<PAGE>
                                       GATEWAY INSURANCE AGENCY, INC., as a
                                           Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       HEAD DISTRIBUTING COMPANY, as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       LAS, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       MINTER-WEISMAN CO., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       PIGGLY WIGGLY COMPANY, as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       6

<PAGE>
                                       PROGRESSIVE REALTY, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       RAINBOW FOOD GROUP, INC., as a Pledgor

                                       By: /s/James R. Vaughan
                                           --------------------------------
                                           Name:  James R. Vaughan
                                           Title: President

                                       RETAIL INVESTMENTS, INC., as a Pledgor

                                       By: /s/James R. Vaughan
                                           --------------------------------
                                           Name:  James R. Vaughan
                                           Title: President

                                       RETAIL SUPERMARKETS, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       7

<PAGE>
                                       RFS MARKETING SERVICES, INC., as a
                                          Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       RICHMAR FOODS, INC., as a Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       SCRIVNER TRANSPORTATION, INC., as a
                                          Pledgor

                                       By: /s/Carlos M. Hernandez
                                           --------------------------------
                                           Name:  Carlos M. Hernandez
                                           Title: Secretary

                                       8

<PAGE>
                                       CORE-MARK INTERNATIONAL, INC., as a
                                          Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       CORE-MARK INTERRELATED COMPANIES,
                                          INC., as a Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       CORE-MARK MIDCONTINENT, INC., as a
                                          Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       C/M PRODUCTS, INC., as a Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       9

<PAGE>
                                       ASI OFFICE AUTOMATION, INC., as a
                                          Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       EA MORRIS DISTRIBUTORS, LTD., as a
                                          Pledgor

                                       By: /s/Bill Prokop
                                           --------------------------------
                                           Name:  Bill Prokop
                                           Title: President

                                       GENERAL ACCEPTANCE CORPORATION, as a
                                          Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       MARQUISE VENTURES COMPANY, INC., as a
                                          Pledgor

                                       By: /s/Leo F. Korman
                                           --------------------------------
                                           Name:  Leo F. Korman
                                           Title: Senior Vice President, Chief
                                                  Financial Officer and
                                                  Secretary

                                       10

<PAGE>
Agreed and accepted by:

DEUTSCHE BANK TRUST COMPANY AMERICAS,
   as Administrative Agent

By: /s/ Marguerite Sutton
    --------------------------------------
    Name:   Marguerite Sutton
    Title:  Vice President

                                       11<PAGE>

                                                                    EXHIBIT 10.8

                          FORM OF FRANCHISE AGREEMENT

                                     BETWEEN

                            PIZZA WORLD SUPREME, INC.

                                       AND

                       -----------------------------------

<PAGE>

                            PIZZA WORLD SUPREME, INC.

                               FRANCHISE AGREEMENT
                                TABLE OF CONTENTS

<Table>
<Caption>
PARAGRAPH                                                              PAGE NO.

<S>                                                                    <C>
1.       GRANT OF FRANCHISE..................................................1

2.       RELOCATION..........................................................2

3.       PROTECTED TERRITORY.................................................2

4.       OFF-SITE DELIVERY...................................................2

5.       TERM OF AGREEMENT...................................................5

6.       RENEWAL OF FRANCHISE................................................5

7.       FEES................................................................6

8.       DUTIES OF FRANCHISOR................................................7

9.       DUTIES OF FRANCHISEE...............................................10

10.      NON-COMPETITION....................................................18

11.      RIGHT OF FIRST REFUSAL.............................................19

12.      TRANSFER AND ASSIGNMENT............................................19

13.      OPERATION IN THE EVENT OF ABSENCE, DISABILITY OR DEATH.............22

14.      DEFAULT AND TERMINATION............................................23
</Table>

                                       i
<PAGE>

<Table>
<S>                                                                        <C>
15.      UNAVOIDABLE DELAYS.................................................25

16.      SEVERABILITY AND CONSTRUCTION......................................25

17.      RELATIONSHIP BETWEEN PARTIES.......................................26

18.      WAIVER.............................................................26

19.      NOTICES............................................................26

20.      APPLICABLE LAW AND JURISDICTION....................................27

21.      TERMINOLOGY........................................................27

22.      STATUS OF AGREEMENT................................................27

23.      AMENDMENT OF AGREEMENT.............................................27

24.      COSTS AND EXPENSES OF ENFORCEMENT..................................27

25.      CAPTIONS...........................................................28

26.      CONSENT AND APPROVAL...............................................28

27.      REPRESENTATIONS....................................................28

28.      EFFECTIVE DATE.....................................................29
</Table>

                                       ii
<PAGE>

                               ME-N-ED'S PIZZERIA

                               FRANCHISE AGREEMENT

                  THIS AGREEMENT is entered into at Fresno, California, by and
between PIZZA WORLD SUPREME, INC. ("PWS"), a Nevada corporation with
headquarters located at 5701 North West Avenue, Fresno, California 93711, and
______________________________________________________________________________
(the "Franchisee"), whose address is: ________________________________________
_____________________________________________________________________________.

                  This Agreement is for the establishment of one Me-N-Ed's
Pizzeria or Slices Pizza Bar (the "Me-N-Ed's Pizzeria" or the "Pizzeria") to be
located at:___________________________________________________________________,
with the specific opening date to be determined in accordance with the terms of
this Agreement.

                                    RECITALS

       A. PWS has established a method and system (the "System") for the
development and operation of Me-N-Ed's Pizzerias and Me-N-Ed's Slices Pizza Bars
(collectively "Me-N-Ed's Pizzerias" or "Pizzerias") which includes, without
limitation: The marks "Me-N-Ed's," "Me-N-Ed's Pizza Parlor & Pizza Design,"
"Me-N-Ed's Guys With Pizza Design," "Me-N-Ed's Slices," "Me-N-Ed's Pizzeria,"
and all related names, trademarks, service marks, logos, copyrights and
associated goodwill (the "Proprietary Marks"); distinctive building designs,
decor, color schemes and trade dress and signage; an operating manual
incorporating required standards, procedures, policies, and techniques; secret
food formulae; and advertising, marketing and promotional programs.

       B. Pursuant to PWS's continuing efforts to develop its chain of
pizzerias, PWS desires to grant to the Franchisee, and the Franchisee desires to
obtain from PWS, the right to establish and operate the Pizzeria in accordance
with and under the System.

       C. This Agreement is for the establishment of a single Me-N-Ed's Pizzeria
at a specific location. It does not grant to the Franchisee any rights to
develop or operate any other Me-N-Ed's Pizzeria at any other locations other
than the single location designated on page 1 of this Agreement.

IN CONSIDERATION OF THE COVENANTS CONTAINED HEREIN, IT IS AGREED AS FOLLOWS:

                  1. GRANT OF FRANCHISE

                  Subject to all the terms and conditions of this Agreement, PWS
grants to the Franchisee the nonexclusive right to use the System to establish
and operate the Pizzeria. The Franchisee acknowledges that adherence to the
standards and policies of the System, as changed

                                        1
<PAGE>
from time to time, is absolutely essential for the continued operation of the
franchise granted by this Agreement.

                  2. RELOCATION

                  The Franchisee shall have the right to establish and operate
the Pizzeria only at the single location designated above. Any relocation of the
Pizzeria shall require PWS's prior written consent. Such consent may be withheld
in PWS's sole discretion unless the lease for the site of its Pizzeria expires
or terminates without fault of the Franchisee, or if the site is destroyed,
condemned or otherwise rendered unusable, in which case PWS will grant
permission for relocation of the Pizzeria to a location and site meeting PWS's
then-current standards. PWS has the right, but is not required, to charge the
Franchisee a Relocation Fee to cover PWS's costs in approving and processing the
request for relocation. Such fee is payable upon approval by PWS at such
location. Any relocation will be at the Franchisee's sole expense.

                  3. PROTECTED TERRITORY

                        (a) Trade Area: While this Agreement is in force, the
Franchisee shall have the exclusive right to operate the Pizzeria within a two
mile radius of the location of the Pizzeria, except that if the Franchisee's
Pizzeria is located in a mall or within certain areas as may be designated from
time to time by PWS, no such exclusive right shall be granted. The radius around
the location of each Pizzeria in which PWS agrees not to grant any other
franchises is referred to as the "trade area" of the applicable Pizzeria.
Neither PWS nor an affiliate will operate or grant a franchise for the operation
of a sit down, carry-out or delivery pizza restaurant business whose trade area
overlaps the Pizzeria's trade area; except nothing in this Agreement shall
prohibit PWS from operating or franchising a Pizzeria in a mall that overlaps
trade areas with the trade area of the Pizzeria.

                        (b) Alteration of Trade Area: From time to time, PWS may
designate certain areas within which PWS will not grant exclusive rights, but
the Franchisee's trade area may not be altered except by the mutual written
agreement of the Franchisee and PWS.

                        (c) Shopping Center: For purposes of this Agreement, a
mall means a shopping center of not less than 250,000 square feet of gross
leasable area where stores front on both sides of a pedestrian walkway which may
be enclosed or open. Any trade area granted to the Franchisee herein is with
respect to the establishment of other Pizzeria locations only, and shall not be
deemed to grant to the Franchisee any exclusive market area or territory.

                  4. OFF-SITE DELIVERY

                  The Franchisee must offer delivery services a minimum of six
hours each day, from 4:00 p.m. to 10:00 p.m. and may offer such services during
lunch hours, subject to PWS's approval, except that the Franchisee will not have
any delivery obligations whatsoever if its Pizzeria is located in a mall,
although the Franchisee may offer delivery services in accordance with this
Agreement if its Pizzeria is located in a mall. The scope of the delivery area
will be congruent with the scope of the trade area (as discussed in Paragraph
3(a) of this Agreement).

                                        2
<PAGE>

Due to fluctuations in population density and vehicular traffic patterns over
time, PWS may, in its sole discretion, extend the radius in which the Pizzeria
must offer delivery services. PWS may subsequently reduce this delivery area due
to further changes in population density, vehicular traffic patterns or the
opening of another Pizzeria in a proximate location, although such delivery area
may not be reduced to less than an area having a two mile radius. The Franchisee
acknowledges that the size of the delivery area is based on quality control and
related operational considerations and is not related to any protected territory
granted the Franchisee with respect to the establishment of Pizzeria locations.

                        (a) Certain Standards and Requirements:

                              (i) The Franchisee shall ensure that any and all
vehicles utilized for off-site delivery: (a) are maintained in good condition
and repair and comply with all requirements for the safe and lawful operation of
such vehicles on the streets and highways of all applicable localities; and (b)
are operated, at all times, by employees of the Franchisee, who shall be duly
qualified, authorized and licensed to operate such vehicles and who shall
maintain insurance covering liability as a driver as required by this Paragraph
of this Agreement. The Franchisee shall further undertake all necessary action
to assure that employees operate delivery vehicles safely and lawfully.
Subcontracting of or for off-site delivery services is prohibited.

                              (ii) In the discretion of the Franchisee, vehicles
used for off-site delivery services may bear signage indicating that the vehicle
is delivering Me-N-Ed's pizza products; provided, however, such signage must be
professionally manufactured or produced and shall be subject to approval by PWS
prior to any public display or use by the Franchisee. If requested by PWS, the
Franchisee shall exhibit on all delivery vehicles (or on car top signs on all
delivery vehicles) signs of sufficient prominence and wording as PWS may
prescribe from time to time so as to advise the public that the Pizzeria is
owned, operated and maintained by the Franchisee and that each such delivery
vehicle is owned, operated and maintained by the Franchisee or the driver of the
vehicle, as the case may be. The Franchisee shall at all times carry insurance,
in accordance with Paragraph 4(b) of this Agreement, covering any and all
vehicles used for off-site delivery services.

                              (iii) PWS reserves the right, in its discretion,
to designate those food and beverage products which may be offered by the
Franchisee for off-site delivery. UNDER NO CIRCUMSTANCES MAY ALCOHOLIC BEVERAGES
BE OFFERED FOR OFF-SITE DELIVERY. Moreover, the Franchisee will take all steps
necessary to ensure that alcoholic beverages are not available to employees
operating delivery vehicles.

                              (iv) All pizza and other food and beverage
products approved for off-site delivery sales shall be prepared at the Pizzeria,
in full compliance with all specifications, standards, operating procedures and
rules relating to the quality, taste, ingredients and uniformity, and manner of
preparation, of pizza, food and beverage items sold at the Pizzeria.

                              (v) The Franchisee shall employ all efforts
necessary to assure that pizza and other food products offered for sale and sold
by off-site delivery are delivered to

                                        3
<PAGE>
customers fresh and hot, and are of uniform high quality. Such efforts shall
include, but are not limited to, the use of PWS-approved packaging and
containers for all off-site delivery sales.

                              (vi) PWS has the right in its sole discretion, to
approve or disapprove any and all advertising in any way related to off-site
delivery sales.

                        (b) Indemnification and Insurance: The Franchisee shall
indemnify, defend and hold PWS and its affiliates and successors, and their
respective officers, directors, shareholders, employees and agents, harmless
from and against any and all claims, costs, damages or liability of any nature
whatsoever, arising out of or in any way related to off-site delivery services
by the Franchisee. At all times that the Franchisee conducts off-site delivery
services, it shall maintain in full force and effect, in addition to all
insurance coverage required by this Agreement, automobile liability insurance
including, but not limited to, contractual liability coverage, liability
coverage for vehicles owned, hired or borrowed by the Franchisee ("owned auto"
and "hired auto" coverage, respectively), and liability coverage for vehicles
owned by others ("non-owned auto" coverage), with limits of not less than
$1,000,000 per occurrence of bodily injury and property damage combined,
together with an umbrella liability policy with minimum limits of $3,000,000,
and together with any other or increased amounts of insurance which PWS may from
time to time require.

                        (c) Insurance: The Franchisee shall provide PWS with
certificates of insurance evidencing the required coverage, which certificates
shall be renewed and provided annually and shall contain such detailed
information as PWS may from time to time request, and the Franchisee shall also
provide PWS with full and complete copies of any and all of the above policies,
including copies of any renewals or modifications thereto upon request by PWS.
All insurance policies must be (i) issued by an insurance company licensed to do
business in the state where the Pizzeria is located and (ii) rated A or better
by A.M. Best & Company, Inc. or approved in writing by PWS, in PWS's sole
discretion. The Franchisee shall also cause the companies to agree by
endorsement or separate written document that PWS shall be given at least 30
days prior written notice of termination, expiration, cancellation, modification
or reduction in coverage limits of any such policy. Upon failure of the
Franchisee to maintain in effect any of the insurance required, or to furnish to
PWS satisfactory evidence of such insurance, PWS may, in its discretion, obtain
insurance coverage on behalf of the Franchisee, and the Franchisee agrees to
promptly execute any applications or instruments required to obtain any such
insurance and to pay to PWS, on demand, any costs and premiums incurred by PWS.
The Franchisee shall additionally require each of its employees who at any time
operates a vehicle in connection with off-site delivery services which is owned
by a person other than the Franchisee to maintain insurance covering the
employee's liability as driver of the vehicle in an amount no less than the
minimum amount required by law, and the Franchisee shall require and maintain at
the Pizzeria evidence of such insurance coverage, which evidence the Franchisee
shall provide to PWS upon request. The Franchisee expressly waives and releases
PWS and its affiliates and successors, and the respective officers, directors,
shareholders, employees and agents, from any obligation or responsibility with
respect to any claim asserted, or which may be asserted, by a third party or
parties, arising out of or relating to the Franchisee's conduct of off-site
delivery services.

                                        4
<PAGE>

                        (d) Fees and Reports: All receipts of any kind or nature
derived from off-site delivery sales shall be included for purposes of computing
all fees payable to PWS under this Agreement; specifically, but without
limitation, any additional charges to customers the Franchisee may choose to
make for off-site delivery services are included within the definition of
"Adjusted Gross Sales" (see Paragraph 7(e) of this Agreement) without limitation
or offset for cost incurred by the Franchisee in connection with providing such
services to the customer. Off-site delivery sales shall be recorded by the
Franchisee and reported to PWS at the same time or times, and in the same
manner, as all other sales from the Franchisee's Pizzeria operation, provided,
further, the Franchisee shall report off-site delivery sales as a separate
subtotal of total reported sales for each reporting period. In addition, the
Franchisee shall provide PWS with such further information relating to off-site
delivery sales as PWS may from time to time request, including separate reports
of costs of operation for off-site delivery services and the like.

                  5. TERM OF AGREEMENT

                        (a) Term: The term of this Agreement shall commence on
the date of execution of this Agreement by PWS, and shall expire 10 years after
the date the Pizzeria opens for business or the length of the lease, whichever
occurs first. The Franchisee may request that the term of this Agreement be
lengthened to be congruent with the term of the lease for the Pizzeria premises.
PWS may grant or withhold consent to such request, in PWS's sole discretion.
Once the Pizzeria opens for business, PWS shall insert the exact opening or
transfer date in Exhibit "A" attached hereto and incorporated herein by
reference.

                        (b) Termination: In the event that (i) the Franchisee
fails to obtain an on-sale beer and wine license for the Pizzeria prior to the
date the Franchisee opens the Pizzeria for business, unless otherwise agreed to
in writing by PWS, (ii) the Franchisee fails to open the Pizzeria within 12
months after PWS's execution of this Agreement, or (iii) the Franchisee fails to
complete or achieve a passing grade in the customary training course concerning
the operation of the Pizzeria by the earlier of (a) three months prior to the
opening of the Pizzeria or (b) 180 days after the date a final location of the
Pizzeria is obtained, then this Agreement shall terminate, and PWS shall refund
to the Franchisee the Initial Franchise Fee paid by the Franchisee to PWS, less
expenses incurred by PWS in connection with this Agreement, as determined in
PWS's sole discretion.

                  6. RENEWAL OF FRANCHISE

                        (a) Renewal Conditions: The Franchisee, at its option,
shall have the right to renew the franchise granted herein for the term and upon
conditions contained in the then-current standard Franchise Agreement in use by
PWS on the date of renewal, provided that:

                              (i) The Franchisee is not in default of any
provision of this Agreement or any other agreement with PWS or its subsidiaries
or affiliates or any other creditor or supplier of the Pizzeria, and has
substantially complied with all the terms and conditions of these agreements
substantially in accordance with their terms and has satisfied all monetary
obligations owed to these parties;

                                        5
<PAGE>

                              (ii) The Franchisee is able to maintain possession
of the site of its Pizzeria or to secure and develop a suitable alternative site
approved by PWS;

                              (iii) The Franchisee agrees to refurbish the site
in accordance with Paragraph 9 of this Agreement;

                              (iv) The Franchisee executes a general release, in
a form satisfactory to PWS, of any and all claims it may have against PWS and
its officers, directors, shareholders, agents, and employees, in their corporate
and individual capacities; and

                              (v) The Franchisee, or a representative approved
by PWS, attends and satisfactorily completes any retraining or refresher
training program that PWS may require, in its sole discretion.

                        (b) Renewal Fee: In connection with this renewal, the
Franchisee must execute PWS's then-current standard Franchise Agreement and all
other agreements customarily used by PWS in the renewal of franchises, which may
provide for higher Royalty Fees and for greater expenditures for advertising and
promotion than were provided for under this Agreement, and may contain other
fees and terms materially different from the terms of this Agreement. The trade
area of the Pizzeria will not be modified unless such modification is consistent
with criteria then in effect for comparable market areas. There will be no
Initial Franchise Fee upon the renewal of the franchise, but the Franchisee
shall pay PWS the sum of $1,500 to offset expenses incurred in connection with
the renewal.

                        (c) Other Obligations: PWS will send all agreements
relating to renewal of the franchise for the Franchisee's review and execution
not less than 12 months prior to the expiration of this Agreement along with a
notification of the expiration of this Agreement. PWS's notice will also state
what actions, if any, the Franchisee must take to correct the deficiencies in
the operation of the Pizzeria and will specify the time period in which these
deficiencies must be corrected. Renewal of the franchise will be conditioned
upon the Franchisee's continued compliance with all the terms and conditions of
this Agreement and all other agreements with PWS and its affiliates and
subsidiaries and all other creditors and suppliers of the Pizzeria up to the
date of expiration. Failure by the Franchisee to return these agreements to PWS
within 30 days after receipt will be deemed an election not to renew the
franchise. The Franchisee will have no right to renew the franchise upon the
expiration of the first additional term.

                  7. FEES

                        (a) Initial Franchise Fee: In consideration of the
franchise granted herein, the Franchisee opening a new Pizzeria at its first
franchise location shall pay to PWS an Initial Franchise Fee of $______, payable
upon the execution of this Agreement. For each subsequent franchise which may be
granted, the Franchisee shall pay one-half of the Initial Franchise Fee then
required by PWS for new the Franchisees.

                        (b) Initial Advertising Fee: Upon execution of this
Agreement, the Franchisee shall pay to PWS's advertising fund (the "Advertising
Fund") a nonrefundable Initial

                                        6
<PAGE>
Advertising Fee of $_____, which shall be disbursed by the Advertising Fund at
PWS's sole discretion (see Paragraph 8(h) of this Agreement).

                        (c) Royalty Fee: In consideration of the franchise
granted herein and the continuing right to use the System, the Franchisee agrees
to pay to PWS, commencing from the date the Pizzeria opens, a Royalty Fee of 5%
of the Adjusted Gross Sales generated monthly by the Pizzeria, or the sum of
$_____, whichever is greater. Payment of the Royalty Fee shall be made on or
before the fifth day of each month for the preceding calendar month.

                        (d) Periodic Advertising Fee: Commencing from the date
the Pizzeria opens, the Franchisee shall pay to the Advertising Fund an
Advertising Fee of 4% of the Adjusted Gross Sales generated monthly by the
Pizzeria. Such fee shall be paid at the same time as the Royalty Fee with a late
charge computed and assessed in the same manner as may be imposed for any late
payment of a Royalty Fee. The Advertising Fund shall be administered by PWS in
accordance with Paragraph 8(h) below. PWS may, in its sole discretion, from time
to time credit against the obligation of the Franchisee to contribute to the
Advertising Fund up to an amount equal to the Franchisee's obligation to
contribute to the Advertising Fund for amounts expended by the Franchisee in the
applicable period on local advertising and promotional campaigns. Such local
advertising and promotions shall be subject to PWS's prior written consent.

                        (e) Adjusted Gross Sales: The term "Adjusted Gross
Sales" as used herein means the total gross receipts from all sales by the
Pizzeria of all pizza and other food, beverages, coin operated games, juke
boxes, and vending machines and other products or services authorized for sale
at the Pizzeria, including off-site delivery, without reserve or deduction for
inability or failure to collect, and exclusive of sales and equivalent taxes and
coupon and similar discounts approved by PWS (but in no event will coupons and
similar discounts reduce Adjusted Gross Sales by more than ___%).

                        (f) Late Payment Charges: If the Franchisee is late in
paying the Royalty Fee, periodic Advertising Fee, or the amount owed for the
special spice blend, the special flour blend and related food products delivered
pursuant to this Agreement, a late charge at the maximum rate permitted by state
law shall be payable on the unpaid fees from the date such payments were due,
and PWS may require the Franchisee to pay both the Royalty Fee and periodic
Advertising Fee on a weekly basis. If PWS requires the Franchisee to make weekly
payments, such payments shall be based on the Adjusted Gross Sales generated
weekly by the Pizzeria and shall be made on or before Wednesday of each week for
the preceding week.

                  8. DUTIES OF FRANCHISOR

                        (a) Location: Unless noted otherwise in writing by PWS,
the Franchisee shall have received PWS's evaluation of a site for the Pizzeria
prior to PWS's execution of this Agreement. The Franchisee may not execute a
lease or a purchase agreement for the Pizzeria which has not been reviewed by
PWS. The Franchisee shall provide PWS with any and all documents relating to a
site under consideration and the lease or purchase agreement for such site when
seeking PWS's review of such site. While it is the Franchisee's obligation to
find a suitable location for the Pizzeria which meets PWS's criteria, PWS may
have assisted the

                                        7
<PAGE>
Franchisee with the search for a suitable location by advising and consulting
with the Franchisee, if requested to do so by the Franchisee. The Franchisee
acknowledges that PWS's review of a location does not constitute a
representation or guaranty by PWS that the location will be a successful
location for the Pizzeria.

                        (b) Training: Prior to the public opening of the
Pizzeria, PWS will make available to the Franchisee and two designated persons
approved by PWS, PWS's customary training and indoctrination course concerning
the operation of the Pizzeria, as described in Paragraph 9(h) of this Agreement.
At its discretion, PWS may also offer additional training programs and refresher
courses to the Franchisee during the term of this Agreement, at the Franchisee's
expense.

                        (c) Operating Manual and Other Manuals: PWS shall loan
to the Franchisee during the term of the franchise one or more copies of an
operating manual or operational bulletins or similar materials containing
mandatory and suggested specifications, standards and operating procedures and
rules prescribed from time to time by PWS and information relative to other
obligations of the Franchisee under this Agreement and the operation of its
Pizzeria and copies of other manuals that may be developed by PWS (collectively,
the "Manuals"). PWS has the right to add to and otherwise modify the Manuals
from time to time, if deemed necessary to improve the standards of service or
product quality or the efficient operation of the Pizzeria, to protect or
maintain the goodwill associated with the Proprietary Marks or to meet
competition. However, no such addition or modification will alter the
Franchisee's fundamental status and rights under this Agreement. The provisions
of the Manuals, as modified from time to time, and mandatory specifications,
standards and operating procedures and rules prescribed from time to time by PWS
and communicated to the Franchisee in writing, will constitute provisions of
this Agreement.

                        (d) Design: PWS shall designate the standard design,
color scheme, trade dress and motif for the Pizzeria.

                        (e) Fixture, Sign, Equipment, Inventory and Supply
Specifications: PWS shall designate standard fixtures, signs, equipment, and
initial and continuing inventory and supplies for placement in and use at the
Pizzeria.

                        (f) Advice and Consultation:

                              (i) PWS shall advise and consult with the
Franchisee periodically in connection with the development and operation of the
Pizzeria. The Franchisee shall submit to PWS within six months prior to the
opening of the Pizzeria, a business plan setting forth the proposed prices,
expenses and other operational items reasonably requested by PWS so that PWS may
provide guidance to the Franchisee in the initial operation of the Pizzeria. PWS
shall communicate to the Franchisee its know-how, new developments, techniques,
and improvements in restaurant management, food preparation, and services which
are pertinent to the operation of the Pizzeria in accordance with the System,
all subject to the Franchisee's obligation to maintain in confidence such
information as would not ordinarily be disclosed during operation of the
Pizzeria.

                                        8
<PAGE>

                              (ii) PWS will advise the Franchisee from time to
time of operating problems of its Pizzeria disclosed by reports submitted to or
inspections made by PWS. PWS will make no separate charge to the Franchisee for
such operating or marketing assistance, except that PWS may make reasonable
charges for forms and other materials supplied to the Franchisee and for
operating assistance made necessary in its judgment as a result of the
Franchisee's failure to comply with any provision of this Agreement or for
operating assistance requested by the Franchisee in excess of that normally
provided by PWS.

                              (iii) PWS will make available to the Franchisee
from time to time, the services of certain principals, employees,
representatives or agents of PWS on a consulting basis. Such individuals will
provide, at the Franchisee's request and at such individual's then-current rates
and charges, extraordinary services above and beyond the operational assistance
customarily provided by PWS.

                        (g) Independent Status of Franchisee: PWS shall not
establish requirements regarding: (i) the Franchisee's employment policies,
assignment or direction of the Franchisee's employees, wages or hours of labor
(except to the extent specified in Paragraphs 9(m) and 9(n) of this Agreement);
(ii) the prices charged by the Franchisee for products sold at the Pizzeria;
(iii) the customers to whom such products may be sold; or (iv) the sources from
which the Franchisee obtains any item or services used in the Pizzeria (except
as provided in Paragraph 9(g) of this Agreement). PWS shall not be involved to
any extent in the management or day-to-day operation of the Pizzeria.

                        (h) Advertising:

                              (i) PWS shall administer the Advertising Fund
referred to in Paragraphs 7(b) and (d). The Advertising Fund exists for the
primary purpose of promoting the System through advertising, promotional
programs and materials, and various marketing techniques. The Franchisee
acknowledges that the Advertising Fund, which may hire employees, agents and
firms to carry out its purpose, shall be used to meet any and all costs, direct
and indirect, incident to marketing the System including, without limitation,
those incurred in administering the Advertising Fund, developing advertising and
promotional programs and materials, conducting market and consumer research,
employing individuals, and implementing other marketing activities. In its sole
discretion, PWS shall determine the media, markets, and content of all
advertising programs. PWS is not obligated to account to the Franchisee for any
expenditures of the Advertising Fund.

                              (ii) The Franchisee acknowledges the need for
uniformity in the Me-N-Ed's Pizzeria image; therefore, except for all
advertising and/or promotional materials prepared or previously approved by PWS,
no advertising and/or promotional materials shall be used by the Franchisee
until such time as the Franchisee has submitted the materials to PWS and the use
of such materials has not been disapproved by PWS within a period of 10 days
after the date of PWS's receipt of the materials.

                                        9
<PAGE>

                  9. DUTIES OF FRANCHISEE

                  In addition to its duties as set forth elsewhere in this
Agreement, the Franchisee agrees to perform the following:

                        (a) Preparation of Location: Within 12 months after
PWS's execution of this Agreement, the Franchisee shall totally equip and ready
the location of the Pizzeria for occupancy. Immediately upon receipt of written
acknowledgment from PWS that the Pizzeria complies with the System's
specifications and requirements, the Franchisee shall commence operation of the
Pizzeria.

                        (b) Lease and Purchase Agreement Responsibilities:
Except as otherwise provided herein, the Franchisee shall be responsible for all
terms and conditions of the lease or purchase agreement covering the Pizzeria
location, including any required security deposit and prepaid rent. The
Franchisee shall provide to PWS a copy of the fully executed lease (and any
assignments and/or subleases thereto) or purchase agreement within 15 days after
PWS's execution of this Agreement.

                        (c) Beer and Wine License: Within five days after PWS's
execution of this Agreement, the Franchisee shall apply to the appropriate state
and/or local authorities for an on-sale beer and wine license for the Pizzeria.
The Franchisee shall be solely responsible for obtaining such license prior to
the opening of the Pizzeria for business. In the event of regulatory delays,
which could not reasonably have been avoided by the Franchisee, PWS may, in its
sole discretion, and upon terms and conditions it may require, authorize the
Franchisee to open the Pizzeria for business prior to timely obtaining such
license. Written application for such exemption from this licensing requirement
must be made to PWS no later than 45 days prior to the opening of the Pizzeria
and must be accompanied by a copy of the completed license application, as
filed.

                        (d) Construction Standards: The Franchisee shall be
responsible for the establishment and completion of the Pizzeria, including
construction or remodeling and equipment installation. The Franchisee agrees
that in constructing or remodeling the Pizzeria, it shall secure all necessary
permits and adhere to the plan, design, color scheme and motif as specified by
PWS, provided that the Franchisee may make minor changes to the standard plans
and specifications, if necessary, to meet the requirements of local codes and
regulations. The Franchisee shall submit all building plans and specifications
to PWS and shall not proceed with construction until PWS's written approval has
been obtained. In the event the Franchisee commences construction, remodeling,
installation, or other work on the premises without the prior written approval
of PWS, or contrary to the specifications and directions of PWS, the Franchisee
shall upon notice from PWS and solely at the Franchisee's expense, promptly
remove or appropriately modify all objectionable items so as to comply with
PWS's specifications and directions. The Franchisee shall also obtain all
required zoning changes, all required building, driveway, utility, health,
sanitation and sign permits and any other required permits and shall obtain all
customary contractor's sworn statements and partial and final waivers of lien
for construction, remodeling, decorating and installation services, and other
materials or labor liens.

                                       10
<PAGE>

                        (e) Fixture and Equipment Standards: The Franchisee
shall lease and/or purchase all fixtures and equipment designated by PWS and
shall install, or have installed, in the Pizzeria all such fixtures and
equipment. The Franchisee has the right to lease and/or purchase the fixtures
and equipment from any source; provided, however, all fixtures, furnishings,
color schemes, machinery, equipment, and accessories shall conform to
specifications of design, color, quality, performance, and utility designated
and approved by PWS.

                        (f) Sign Standard: The Franchisee shall prominently
display and maintain in good appearance and condition on the land and building
comprising the Pizzeria all signs of such nature, form, color, illumination, and
size, and containing such legends and symbols as PWS shall require. The
Franchisee shall not display at the Pizzeria any signs to which PWS objects.

                        (g) Inventory and Supply Specifications:

                              (i) The Franchisee shall purchase spice blend,
flour blend and such other proprietary products as may be designated by PWS that
are made in accordance with PWS's special and trade secret recipe only from
suppliers designated by PWS to sell such spice blend, flour blend or other
products. PWS reserves the right to be either the sole source of supply or the
sole designator of suppliers who will provide the spice blend, the flour blend
and any other designated products. The Franchisee shall not maintain inventories
of the spice blend or flour blend in excess of any amount necessary to conduct
pizza sales operations for 60 days. This inventory shall be based on the average
requirements of the Franchisee's past six months' operation or, if the
Franchisee has not been in business for six months, on a reasonable estimate of
the inventory required for sales over such a period of time. Except as noted
above, the Franchisee is not required to purchase or lease from PWS or its
designee goods, services, supplies, fixtures, equipment, inventory or real
estate as a condition of establishing or operating the franchised business. All
pizza ingredients, beverage products, cooking materials, containers, packaging
materials, other paper and plastic products, utensils, required clothing and
color scheme, menus, forms, cleaning and sanitation materials and other supplies
and materials used in the operation of the Pizzeria must conform to the
specifications and quality standards established by PWS from time to time.

                              (ii) The Franchisee must use in the operation of
its Pizzeria boxes, containers and other paper or plastic products imprinted
with the Proprietary Marks as prescribed by PWS from time to time. Any
ingredient, supply or material not previously approved by PWS as conforming to
its specifications and quality standards must be submitted for examination
and/or testing prior to use. PWS has the right to examine the facilities of any
approved supplier or distributor and to test or inspect the ingredients,
materials or supplies to determine whether they meet PWS's standards and
specifications. PWS has the right to charge fees for testing and evaluating any
new equipment, fixture, furniture, or sign proposed for use by the Franchisee as
well as for testing and evaluating proposed and approved suppliers or
distributors. PWS also may impose reasonable limitations on the number of
approved suppliers or distributors of any product. PWS will notify the
Franchisee within a reasonable time (generally not to exceed 30 days) whether
any ingredients, supplies, materials, suppliers or distributors submitted or
proposed by the Franchisee meet with its approval. PWS also may

                                       11
<PAGE>
revoke for any reason its previous approval of any ingredient, supply, material,
supplier or distributor, and such revocation becomes effective when the
Franchisee is put on notice thereof. The Franchisee shall have certain other
limited additional rights to advertise on the boxes constituting the packaging
for the pizza and related food items, upon PWS's prior consent. Such
advertisement may be in the form of "trade-outs" and other advertising benefits.

                        (h) Training: The Franchisee (or the controlling
shareholder or partner if the Franchisee is a corporation or partnership) must
enroll in, complete and achieve a passing grade in all training programs and
classes which PWS requires for the operation of a Me-N-Ed's Pizzeria by the
earlier of (i) three months prior to the opening of the Pizzeria or (ii) 180
days after the date that a location for the Pizzeria is obtained. All classes
will be held at such times and places as PWS designates. PWS will not charge a
training fee for the initial training class. The initial training class required
of the Franchisee is for up to three persons (the Franchisee and two managers).
In addition, PWS may require that the Franchisee attend and achieve a passing
grade in supplemental or additional training classes which may be offered from
time to time during the term of the franchise. The fee for such additional
training will range from $___ to $_____ per training class which fee will
include all training materials. The Franchisee will be responsible for all
travel, living expenses, compensation, benefits and other costs incurred by all
persons attending any training programs and classes on the Franchisee's behalf.

                        (i) Confidential Information and Manuals: The Franchisee
and its owners are obligated to maintain the absolute confidentiality of the
Manuals and all other information concerning the PWS's System during and after
the term of the franchise, disclosing this information to the other employees of
the Pizzeria only to the extent necessary for the operation of the Pizzeria in
accordance with this Agreement. The Franchisee and its owners may not use any
such information in any other business or in any manner not specifically
authorized or approved in writing by PWS. The customer lists and all historical
data relating to the sale of all pizza and beverage products at or from the
Pizzeria (the "Customer Lists") also are confidential. The Franchisee: (i)
acknowledges that the Customer Lists are a valuable asset of PWS; (ii) may not
use the Customer Lists in any other business or capacity; and (iii) must
maintain the absolute secrecy and confidentiality of the Customer Lists.

                        (j) Operation of Pizzeria: The Franchisee, the
controlling shareholder or partner of the Franchisee or, if the Franchisee has
also entered into a development agreement with PWS, an operator who satisfies
the requirements set forth in such development agreement, must devote his or her
full time and efforts in managing the general business matters and operations of
the Pizzeria or other Pizzerias (or other related activities approved by PWS).
Further, the Franchisee, its owners and its operator, if any, may not, during
the term of this Agreement, engage in any conflicting enterprises or any
business activity which would be detrimental or interfere with the operation or
management of the Pizzeria. In addition, the Pizzeria must be at all times under
the direct, on-premises supervision of the Franchisee or the Franchisee shall
employ a manager for such purpose, who shall have met the following
requirements: (i) he or she has been properly trained by the Franchisee; (ii)
his or her identity has been disclosed in writing to PWS; and (iii) he or she
has executed, at PWS's request, an agreement in the form provided by PWS
agreeing not to divulge any trade secret or confidential or proprietary
information, including the contents of the Manuals, or to engage in or have any

                                       12
<PAGE>

interest in any other sit-down, carry-out or delivery pizza business. The
Franchisee must offer for final consumption, and not for resale, except in
certain retail markets that are authorized in writing by PWS, all pizza and
beverage products which PWS from time to time authorizes. PWS may change the
types of authorized and required goods and services at any time and for any
reason, and the Franchisee is required to comply with these changes within 60
days after receiving notice of such and must offer the carry-out services and
the delivery services described in Paragraph 4 of this Agreement. The Franchisee
is prohibited from offering or selling any products or services not authorized
by PWS and from using the premises of the Pizzeria for any purpose other than
the operation of the Pizzeria (or other related activities approved by PWS). The
Franchisee shall conspicuously post at the Pizzeria a notice to the effect that
the Pizzeria is a franchised business operated independently of Pizza World
Supreme, Inc., the franchisor of Me-N-Ed's Pizzerias.

                        (k) Sanitation and Maintenance Standards: At its sole
expense, the Franchisee shall at all times maintain the interior and exterior of
the Pizzeria premises, including all of the fixtures, signs, and equipment, in a
good, clean, attractive, and safe condition and repair.

                        (l) Improvements: The Franchisee shall refurbish its
Pizzeria (in addition to regular maintenance and repair) within six months after
receipt of written notice from PWS, as PWS from time to time requires to
maintain or improve the appearance and efficient operation of the Pizzeria, to
increase the sales potential or to comply with PWS's standards and identity.
Refurbishing may include: (i) replacement of worn out or obsolete equipment,
fixtures, furniture and signs; (ii) the substitution or addition of new or
improved equipment, including computer hardware and software, and safes,
fixtures, furniture and signs; (iii) redecorating; (iv) repair of the interior
and exterior of the premises and repair and resurfacing of parking facilities;
and (v) structural modifications and remodeling of the premises. The Franchisee
will not be required to make aggregate expenditures for refurbishing in excess
of $______ or, except in connection with a renewal of the franchise, to effect
any refurbishing of the Pizzeria during the last 12 months of the term of the
franchise.

                        (m) Dress and Grooming Standards: The Franchisee shall
maintain an adequate number of neat, clean, competent, and courteous employees
at the Pizzeria to insure maximum customer satisfaction and consistent service.
The Franchisee shall require all employees to wear Appropriate Clothing, as
defined below, of such color, design, and other specifications as PWS may
designate from time to time. "Appropriate Clothing," as used in this Agreement,
means everyday clothing that can be worn outside of the establishment and does
not constitute a uniform of any kind.

                        (n) Hours of Operation: The Franchisee shall operate the
Pizzeria at such minimum hours and on such days as may from time to time be
prescribed by PWS (except when the Pizzeria is untenable as a result of fire or
other casualty) and shall maintain sufficient supplies of goods and products so
as to operate the Pizzeria at maximum capacity and efficiency.

                        (o) Sales Records and Financial Statements: The
Franchisee is required to use PWS's designated PIZZAnet System to record sales
and to track inventory and other related expenses. The PIZZAnet System shall be
linked to PWS's corporate office as a

                                       13
<PAGE>
means of evaluating and monitoring individual Pizzeria performance. The
Franchisee will maintain, repair, upgrade, and update the PIZZAnet System as
required by PWS during the term of this Agreement. The Franchisee agrees to
furnish PWS with a report of Adjusted Gross Sales for the prior month, including
a tabulation of daily cash register tape or computer totals, certified to be
true and correct by the Franchisee, on or before the 5th day following the end
of each month during the term of this Agreement. The Franchisee agrees to
maintain its accounting records in accordance with the accounting system
employed by PWS which system reflects the costs of all saleable products and
services. The Franchisee shall also furnish PWS on or before the 20th day
following the end of each month with an updated profit and loss or operating
statement prepared by a licensed public accountant or certified public
accountant, which will provide PWS with current results of the Franchisee's
operations. All financial statements shall be supported by actual physical
inventories of supplies and products on hand at the beginning and end of each
monthly or other reporting period. All financial statements shall be prepared
following the format used by the PWS presently or as changed from time to time.
If requested by PWS, the Franchisee shall furnish more frequent reports of
Adjusted Gross Sales by telephone or as otherwise specified by PWS. The
Franchisee shall, upon request of PWS, deliver to PWS copies of all sales tax
reports and tax returns. In addition, the Franchisee shall keep all such records
for at least five consecutive years. PWS reserves the right to audit or cause to
be audited the sales reports, financial statements and tax returns which the
Franchisee is required to submit to PWS. In the event any audit discloses an
understatement of the Adjusted Gross Sales of the Franchisee's Pizzeria for any
period or periods, the Franchisee must immediately pay to PWS the due and unpaid
fees, all advertising contributions due under this Agreement and the amount, if
any, required to be paid to the Advertising Fund, plus interest due on these
amounts. Further, in the event such understatement for any period or periods is
2% or more of the Adjusted Gross Sales of the Pizzeria or such inspection or
audit is made necessary by the Franchisee's failure to furnish reports,
supporting records, financial statements or other information required by this
Agreement, or to furnish these reports, records, information or financial
statements on a timely basis, the Franchisee is obligated to reimburse PWS for
the cost of such audit, including the charges of any independent certified
public accountant and the travel expenses, room and board and compensation of
PWS's employees incurred in conducting such audit.

                        (p) Entertainment and Vending Machines: Unless first
approved in writing by PWS, the Franchisee shall neither allow any product,
vending machine or entertainment device to be sold, displayed, situated, or used
at the Pizzeria, nor permit any live entertainment, musicians, motion pictures,
television, or other entertainment, including dancing, at the Pizzeria. Under no
circumstances will pool tables or gaming machines be allowed on Pizzeria
premises.

                        (q) Trade Name and Proprietary Marks:

                              (i) PWS's trade name, and the service marks and
trademarks licensed hereunder are the sole and exclusive property of PWS. The
Franchisee shall acquire no right to use, or to license the use of, any name,
mark, or other intangible property right granted or to be granted herein, or any
name or mark confusingly similar thereto, except in connection with the
operation of the Pizzeria. The Franchisee shall not incorporate or form a
partnership or joint

                                       14
<PAGE>
venture under any names, in whole or in part, referred to in this Agreement or
otherwise belonging to PWS or any name or mark confusingly similar thereto. The
Franchisee shall use its best efforts to promote and protect the Franchisee's
and PWS's business interests and protect the goodwill and trade name of
Me-N-Ed's Pizzerias and the Proprietary Marks. The Franchisee also shall
immediately notify PWS of any infringement of or challenge to the Franchisee's
use of PWS's trademarks, service marks, trade names, logo types or other
commercial symbols. PWS, though, is not obligated to protect the Franchisee's
right to the use of PWS's trademarks, service marks, trade names, logo types or
other commercial symbols and further, is not obligated to protect the Franchisee
against any claim of infringement or unfair competition with respect to the
names, marks and symbols. PWS is not obligated to indemnify the Franchisee
against nor to reimburse the Franchisee for any damages for which the Franchisee
is held liable in any proceeding arising out of the Franchisee's use of PWS's
trademarks, service marks, or other commercial symbols under this Agreement.

                              (ii) The Franchisee agrees to consistently use the
mark "Me-N-Ed's" and/or such other name(s) as designated by PWS on all signs,
decorations, advertising, menus, letterhead, telephone listings, and other
printed and decorative materials used in or on the premises or with which the
Pizzeria is identified. The Franchisee shall not use the "Me-N-Ed's" name,
service mark, and/or trademark on any automobile or truck or otherwise, except
as expressly authorized by this Agreement. As used in this Paragraph and
throughout this Agreement, "Proprietary Marks" shall be deemed to refer to and
include "Me-N-Ed's," "Me-N-Ed's Pizza Parlor & Pizza Design," "Me-N-Ed's Guys
With Pizza Design," "Me-N-Ed's Slices," "Me-N-Ed's Pizzeria" and any other
"Me-N-Ed's"-based marks, and (for the sake of convenience), shall further
include all marks of PWS which the Franchisee has or shall be authorized to use
which are not based upon the words "Me-N-Ed's."

                              (iii) If there should be asserted a claim of prior
use of any of the trade names, trademarks, service marks, slogans or visual
indicia used in the Pizzeria, the Franchisee, at its expense, shall use such
name or marks as may then be provided by PWS, or if no such substitutes are
provided by PWS, the Franchisee's own name and such marks or words as shall
clearly avoid any possible confusion between the business of the Pizzeria and
the business of the claimant, and the Franchisee shall have no claim against PWS
for any damages due to the change in names or marks.

                              (iv) If it becomes advisable at any time in PWS's
sole discretion for the Franchisee to modify or discontinue use of any
Proprietary Mark, the Franchisee must do so. PWS's sole obligation in such an
event is to reimburse the Franchisee for its actual, out-of-pocket costs
incurred in complying with this obligation, unless PWS shall have given the
Franchisee six months prior written notice of such requirement, in which case
PWS shall have no obligation to reimburse the Franchisee.

                              (v) PWS retains and reserves the right in its sole
discretion to manufacture and distribute anywhere in the world, including the
Franchisee's trade area, products under PWS's Proprietary Marks or other
products through retail food stores and other channels of distribution, without
limitation, regardless of whether such products are authorized for sale in
Me-N-Ed's Pizzerias.

                                       15
<PAGE>

                        (r) Legal Compliance: At its sole expense, the
Franchisee shall secure and maintain in force all required licenses, permits and
certificates and shall operate its Pizzeria in full compliance with all
applicable federal, state and local laws, ordinances and regulations. In
addition, the Franchisee shall require each delivery driver to submit proof of
insurance not less frequently than once every 90 days, or as required by the
Franchisee's insurance company, if it requires more frequent showing of such
proof. PWS also shall not provide customers of the Pizzeria with a guarantee of
time within which a delivery will be made.

                        (s) Right of Inspection: PWS has the right, at any time
during business hours and without prior notice to the Franchisee, to conduct
reasonable inspections of the Pizzeria and its business records wherever
located. Inspections of the Pizzeria will be made at PWS's expense, unless PWS
is required to make any additional inspections in connection with the
Franchisee's failure to comply with this Agreement. In such event, PWS has the
right to charge the Franchisee for the costs of making all additional
inspections in connection with such failure to comply including, without
limitation, travel expenses, room and board, compensation of its employees, and
the total cost of having a representative of PWS stay in the Pizzeria until PWS
shall determine that there is compliance.

                        (t) Insurance: The Franchisee must at all times during
the term of this Agreement maintain in force at its sole expense: (i) property
insurance on a replacement cost basis at a minimum limit based on the total
value of the Franchisee's assets (including, but not limited to, fire, extended
coverage, vandalism and malicious mischief); (ii) commercial general liability
insurance, including contractual liability, products-completed operations,
personal and advertising injury and liquor liability with minimum limits of
liability for each type of insurance of $1,000,000 general aggregate, $1,000,000
products-completed operations aggregate, $1,000,000 personal and advertising
injury, $1,000,000 each occurrence, $50,000 fire damage, $1,000 medical expense
and $1,000,000 liquor liability; (iii) primary automobile liability insurance as
described in Paragraph 4(b) of this Agreement; (iv) workers' compensation
insurance (in the Franchisee's name) as required by applicable law; and (v)
business interruption insurance of at least $1,000 per day. In addition, the
Franchisee is required to carry an umbrella policy for excess coverage on the
policies described above up to $3,000,000 of coverage. The Franchisee may not
self-insure nor participate in any self-insurance program. All insurance
policies must be issued by an insurance carrier rated A or better by Alfred M.
Best & Company, Inc. or an alternative company approved in writing by PWS, in
PWS's sole discretion. All liability insurance policies must name PWS and the
subsidiaries and affiliates which it designates, as additional insureds entitled
to the coverage afforded to all named insureds, without regard to any other
insurance or self-insured program which PWS may have in effect, and must also
provide that PWS receive 30 days prior written notice of termination,
expiration, cancellation, modification, or reduction in coverage or limits of
any such policy. PWS may also reasonably increase the minimum liability
protection requirement annually and require different or additional kinds of
insurance to reflect inflation, changes in standards of liability, higher damage
awards in public, product or motor vehicle litigation or other relevant changes
in circumstances. The Franchisee must submit to PWS annually a copy of the
certificate of or evidence of the renewal or extension of each such insurance
policy or any modifications to any such insurance policy. If the Franchisee at
any time fails or refuses to maintain in effect any insurance coverage required
by PWS, or to furnish satisfactory evidence of such insurance, PWS

                                       16
<PAGE>
may, at its option and in addition to PWS's other rights and remedies under this
Agreement, obtain such insurance coverage, on behalf of the Franchisee, and the
Franchisee must promptly execute any applications or other forms or instruments
required to obtain any such insurance. The Franchisee shall also promptly pay to
PWS on demand any costs and premiums incurred by PWS, together with an amount
equal to ___% of the premium charged, as a fee to PWS. The Franchisee's
obligation to obtain and maintain the insurance described in this Agreement will
not be limited in any way by reason of any insurance maintained by PWS.

                        (u) Notification of Legal Proceedings: The Franchisee
shall notify PWS in writing within 10 days after the commencement of any action,
suit or proceeding, or of the issuance of any order, writ, injunction, award, or
decree of any court or government agency which may adversely affect the
Franchisee's financial condition or ability to perform its duties or meet its
obligations hereunder.

                        (v) Indemnity: The Franchisee shall pay all bills,
debts, obligations and liabilities incurred in the operation of the Pizzeria and
in the performance of off-site delivery services and shall indemnify and hold
each Indemnified Party (as defined below) harmless therefrom. If an Indemnified
Party is subjected to any claim demand or liability or becomes a party to any
suit or other judicial or administrative proceeding by reason of any claimed act
or omission of the Franchisee, its employees or agents, or by reason of any act
or omissions occurring on the Pizzeria premises or otherwise relating to the
business or operation of the Pizzeria, including acts or omissions relating to
off-site delivery services, the Franchisee shall indemnify each Indemnified
Party and hold each Indemnified Party harmless from and against all judgments,
settlements, penalties and expenses, including attorneys' fees, court costs and
other expenses of litigation or administrative proceeding, incurred by or
imposed on any Indemnified Party in connection with the investigation or defense
related to such claim or litigation or administrative proceeding. The defense of
such claim, litigation or administrative proceeding by an Indemnified Party, or
by the Franchisee on an Indemnified Party's behalf, shall be at the sole cost
and expense of the Franchisee, who shall hold each Indemnified Party free and
harmless from all such obligations and liabilities and shall reimburse the
Indemnified Party for all expenses incurred therein, including attorneys' fees.
Further, the Indemnified Party shall have the right independently to take any
action it may deem necessary, in its sole discretion, to protect and defend
itself against any threatened action subject to indemnification hereunder,
without regard to expense, forum or other parties that may be involved. As used
in this Agreement, the term "Indemnified Party" means PWS and any subsidiary or
affiliated company of PWS, including any officer, director, shareholder,
employee or agent of PWS or of any such subsidiary or affiliated company. The
Franchisee's indemnification obligations described above will continue in full
force and effect after the expiration or termination of this Agreement.

                        (w) Copyrights: PWS owns rights under the Copyright Act
in various creative works. PWS shall have the right, in its sole discretion, to
grant to the Franchisee a revocable, non-exclusive, royalty-free license to
reproduce, copy, and distribute copyrighted works selected and made available to
the Franchisee (except confidential and trade secret information) by PWS from
time to time, but any such license shall not include the right to make
adaptations or derivative works based upon the licensed works. PWS and the
Franchisee have

                                       17
<PAGE>
the same rights and obligations in relation to copyrights as they do,
respectively, in relation to PWS's Proprietary Marks under Paragraph 9(q) of
this Agreement.

                        (x) Home Page: The Franchisee will not establish a
website or home page on the Internet (the "Home Page") to advertise or promote
its Pizzeria without the prior written consent of PWS. All features of any
proposed Home Page, including its domain name, content, format, and links to
other websites, must be approved by PWS prior to activation of the Home Page.
The Franchisee's Home Page must advertise only the Franchisee's Pizzeria, and
all content and information maintained by the Franchisee on the Home Page will
at all times be subject to the provisions of this Agreement including, without
limitation, provisions of this Agreement relating to trademark usage, conditions
on the business to be conducted by the Franchisee pursuant to this Agreement,
advertising approval, confidentiality, and product and service limitations. The
Franchisee will not link its Home Page to any Internet site without PWS's prior
written approval.

                  10. NON-COMPETITION

                        (a) Covenant Not to Compete: Neither the Franchisee nor
its owners may, either directly or indirectly, for the benefit of the Franchisee
or its owners or through or on behalf of or in conjunction with any other
person, partnership or corporation, own, engage in, be employed by, advise,
assist, invest in, franchise, make loans to, or have any interest, whether
financial or otherwise, in any other sit-down, carry-out or delivery pizza
restaurant business or any other fast service restaurant business which is
located within a radius of __ miles of the Pizzeria and is substantially similar
to the Pizzerias operated by PWS or by other the Franchisees under active
franchises granted by PWS (except for other Pizzerias operated under Franchise
Agreements entered into by the Franchisee with PWS or other Pizzerias in which
the Franchisee or its owners have an ownership interest). This covenant not to
compete shall be effective during the term of this Agreement and any renewal of
the franchise, and for a period of three years thereafter where the franchise is
terminated by PWS for cause or by the Franchisee without cause, or if the
franchise has been sold, assigned, or transferred by the Franchisee.

                        (b) Damages: The Franchisee acknowledges that the
damages to PWS arising from a violation of this covenant by the Franchisee are
difficult to ascertain and agrees that, for each month that the Franchisee
operates a business in violation of this Paragraph 10, PWS shall be entitled to
liquidated damages, in addition to its other remedies under law or equity, equal
to the average Royalty Fee paid or owed to PWS during the most recent six months
of full operation of the Pizzeria that the Franchisee operates or operated
pursuant to this Agreement. If the Franchisee has not operated the Pizzeria for
six months or more, the Franchisee shall have to pay to PWS the average Royalty
Fee paid or owed to PWS during the actual period that the Franchisee operated
the Pizzeria pursuant to this Agreement.

                        (c) Other Activities: Neither the Franchisee nor any of
its owners, if the Franchisee is a corporation or partnership may, without PWS's
prior written consent, engage in any other active business activity during the
term of this Agreement, except passive investments as permitted by PWS.

                                       18
<PAGE>

                        (d) Employees: Neither the Franchisee nor its owners
may, during the term of this Agreement, directly or indirectly solicit or employ
any person who is employed by PWS, by any entity controlled by PWS or by any
other of its the Franchisees, nor may the Franchisee or its owners induce or
attempt to induce any of these people to leave their employment without PWS's
prior written consent and the consent of their employers. PWS will not induce or
attempt to induce the Franchisee's employees to leave their employment with the
Franchisee and become employed by PWS or its subsidiaries or affiliates without
the Franchisee's consent.

                        (e) Public Companies: These covenants will not apply to
ownership by the Franchisee or its owners of less than a 5% beneficial interest
in the outstanding equity securities of any corporation whose stock is publicly
traded.

                  11. RIGHT OF FIRST REFUSAL

                  If the Franchisee or its owners propose to sell the Pizzeria
(or its assets) or if the Franchisee is a corporation or partnership, any
ownership interest in the corporation or partnership, and the Franchisee or its
owners obtain a bona fide executed written offer to purchase this interest, the
Franchisee or its owners must deliver a copy of the bona fide offer to PWS along
with all documents to be executed by the Franchisee or its owners and the
proposed assignee or transferee. PWS will, for a period of 30 days after the
date of delivery of such offer to it, have the right, exercisable by written
notice to the Franchisee or its owners, to purchase the Pizzeria (or its assets)
or such ownership interest for the price and on the terms and conditions
contained in such offer. If the offer is to purchase the interest of a
controlling shareholder or partner and is for less than all of the outstanding
interests of the corporation or partnership, PWS also has the right, during the
30 day period upon written notice to the other owners, to purchase the remaining
shares of capital stock or partnership interest at a per share or per unit or
interest price equivalent to the price being offered under the bona fide offer
to the controlling shareholder or partner. If PWS does not exercise this right
of first refusal, the offer may be accepted by the Franchisee or its owners,
subject to PWS's prior written approval. If the offer is not accepted within 60
days, PWS will again have the right of first refusal described in this
Paragraph.

                  12. TRANSFER AND ASSIGNMENT

                        (a) Transfer by Franchisee: This Agreement is personal
to the Franchisee and its owners. Accordingly, neither this Agreement, nor any
interest in this Agreement or if the Franchisee is a corporation or partnership,
any interest in the corporation or partnership, may be assigned or transferred
except as specifically authorized under this Agreement. A transfer of ownership
of the Pizzeria (or its assets) may only be made in conjunction with a transfer
of this Agreement. Any such assignment, transfer or encumbrance without PWS's
approval will have no effect and will constitute a breach of this Agreement. PWS
will permit sales, transfers or assignments of this Agreement or an ownership
interest of an owner, if the Franchisee is a corporation or partnership, to
others provided:

                              (i) The Franchisee (or any of its owners) is not
in default under this Agreement or any other agreement with PWS or its
subsidiaries or affiliates or any other creditor or supplier of the Pizzeria;

                                       19
<PAGE>

                              (ii) All obligations of the Franchisee created by
this Agreement and all other related franchise documents, and the relationship
created hereunder are assumed by the proposed transferee or assignee (and its
controlling shareholder or partner and all other owners if it is a corporation
or partnership);

                              (iii) All debts of the Franchisee to PWS are paid
in full prior to such transfer;

                              (iv) The Franchisee executes a general release, in
a form satisfactory to PWS, of any and all claims against PWS and its past and
present officers, directors, shareholders, employees and agents, in their
corporate and individual capacities including, without limitation, claims
arising under federal, state, and local laws, rules, and ordinances;

                              (v) The proposed transferee or assignee (and its
controlling shareholder or partner and all other owners if it is a corporation
or partnership) meets PWS's standards for the Franchisees or owners including,
but not limited to, good reputation and character, business experience,
operational ability, financial strength and other business considerations;

                              (vi) The proposed transferee or assignee (and its
owners) is not operating, franchising or licensing the operation of any
sit-down, carry-out or delivery pizza business except other Me-N-Ed's Pizzerias;

                              (vii) The proposed transferee or assignee (and its
owners) agrees to sign PWS's then-current standard Franchise Agreement for a
term equal to, at PWS's election, the remaining term of this Agreement, the
remaining term of the existing lease for the Pizzeria premises, or the term set
forth in the then-current standard Franchise Agreement;

                              (viii) The proposed transferee or assignee (or the
person designated by PWS) completes all required training to the extent required
by PWS;

                              (ix) At PWS's request, the proposed transferee or
assignee refurbishes the Pizzeria in the manner and subject to the provisions
prescribed in Paragraph 9(l) of this Agreement;

                              (x) The proposed transferee or assignee pays a
Transfer Fee of $2,500 to cover PWS's costs in approving and processing the
assignment; and

                              (xi) The proposed transferee qualifies as a
transferee of the alcohol beverage license application to the Pizzeria premises.

                  The provisions of Paragraph 12(a)(vi), (vii) and (ix) above
will not apply to an approved sale, transfer or assignment by a shareholder or
partner owning a 30% or less interest in the corporation or partnership, except
that the proposed transferee or assignee must guarantee the performance by the
Franchisee of its obligations under this Agreement and agree to be bound by all
of the provisions of this Agreement in the form prescribed by PWS. In connection
with

                                       20
<PAGE>
any assignment permitted under this Agreement, the Franchisee must provide PWS
with all documents to be executed by the Franchisee and the proposed assignee or
transferee at least 30 days prior to signing.

                  The Franchisee acknowledges that PWS may, in its sole
discretion and as it may deem necessary in particular circumstances, vary and/or
waive conditions or requirements which PWS deems necessary for the operation of
the franchised business in connection with its approval of a transfer.

                        (b) Transfer to Corporation: PWS will allow the
Franchisee to assign this Agreement and the Pizzeria (and its assets) to a
corporation or partnership, for convenience of ownership of the Pizzeria,
provided:

                              (i) The partnership or corporation conducts no
business other than the Pizzeria (or other related businesses authorized by
PWS);

                              (ii) The corporation or partnership is actively
managed by the Franchisee;

                              (iii) The person designated as the controlling
shareholder or partner owns and controls not less than 70% of the general
partnership interest or the equity and voting power of all issued and
outstanding capital stock of the corporation; and

                              (iv) All other shareholders and partners meet the
requirements established by PWS from time to time in its sole discretion and
agree to guarantee the obligations of the Franchisee under this Agreement and be
bound by the terms of this Agreement in the manner prescribed by PWS. The
articles of incorporation or the organization documents of any partnership or
corporation must recite that they are subject to all restrictions contained in
this Agreement. PWS also has the right to require, as a condition of any
assignment of this Agreement to a corporation or partnership or the operation of
a franchise by a corporation or partnership, that the shareholders or partners
enter into a buy/sell agreement among themselves in a form and containing such
terms as PWS prescribes for transfers of ownership interests in such corporation
or partnership.

                        (c) No Subfranchise Rights: The Franchisee does not have
the right to grant a subfranchise or similar rights.

                        (d) Offerings by Franchisee: Securities or partnership
interests in the Franchisee may be offered by private offering or otherwise,
only with the prior written consent of PWS. All materials required for such
offering by federal or state law shall be submitted to PWS for review 30 days
prior to their use or filing with any government agency, and any materials to be
used in any offering exempt from federal or state securities laws shall be
submitted to PWS for review 30 days prior to their use. No offering by the
Franchisee shall imply by use of the Proprietary Marks or otherwise that PWS is
participating in underwriting, issuing, or offering securities of the Franchisee
or PWS. PWS's review of any offering materials shall be limited solely to
matters deemed relevant by PWS, and PWS's failure to comment on any items shall
not be deemed approval. The Franchisee and the other participants in the

                                       21
<PAGE>

offering must fully indemnify PWS in connection with the offering. For each
proposed offering, the Franchisee shall pay to PWS a non-refundable fee not to
exceed PWS's reasonable costs and expenses associated with reviewing the
proposed offering including, without limitation, legal and accounting fees.

                        (e) Transfer by PWS: PWS shall have the right to sell,
assign, or transfer all or any part of its interests herein to any person or
entity without prior notice to or consent of the Franchisee. Except as otherwise
expressly provided herein, this Agreement shall inure to the benefit of and
shall bind the heirs, executors, personal representatives, administrators,
successors, and assigns of PWS and the Franchisee.

                  13. OPERATION IN THE EVENT OF ABSENCE, DISABILITY OR DEATH

                        (a) Death of Franchisee: Upon the death or permanent
disability of the Franchisee or the death or permanent disability of the
controlling shareholder or partner, this Agreement or the ownership interest of
the deceased or permanently disabled shareholder or partner must be transferred
to a party approved by PWS. Any transfer including, without limitation,
transfers by devise or inheritance or trust provisions, will be subject to the
same conditions for transfers which are contained in this Agreement. Except as
otherwise prescribed in writing by PWS, the Franchisee's personal representative
or the personal representative of such shareholder or partner must submit to PWS
a proposal meeting the requirements for transfer of this Agreement or such
ownership interest within 120 days after the Franchisee's death or permanent
disability or the death or permanent disability of such shareholder or partner.
PWS will communicate its approval or disapproval of any such proposal within 15
days after receipt. PWS will not unreasonably withhold its consent to the
transfer of this Agreement or such ownership interest to the Franchisee's
spouse, heirs or relatives or the spouse, heirs or relatives of such deceased or
permanently disabled shareholder or partner, provided the requirements of
Paragraph 12 of this Agreement are satisfied. PWS, during such 120 day period,
will evaluate any proposal regarding transfer of this Agreement or such
ownership interest, including any request that PWS consider purchasing the
franchise or such ownership interest. The Franchisee's personal representative
or the personal representative of such deceased or permanently disabled
shareholder or partner must complete the transfer of this Agreement or such
ownership interest within 60 days after the date of PWS's approval of any such
proposal. Upon the death of any other owner, the interest of such owner must be
transferred within a reasonable time to a person meeting PWS's requirements. All
such transfers must also comply with Paragraph 12 of this Agreement, including
qualification as transferee of the alcoholic beverage license applicable to the
Pizzeria premises. The Franchisee's or any of its owner's failure to transfer
the interest in accordance with the provisions of this Paragraph will be
considered a breach of this Agreement.

                        (b) Permanent Disability: The Franchisee will be deemed
to have a "permanent disability" if the Franchisee's or its owners' usual,
active participation in the Pizzeria as contemplated by this Agreement is for
any reason curtailed for a continuous period of six months.

                        (c) Appointment of Manager: PWS has the right to appoint
a manager for the Pizzeria if in PWS's judgment the Pizzeria is not being
managed properly after the

                                       22
<PAGE>
Franchisee's death or permanent disability (or the death or permanent disability
of an owner if the Franchisee is a corporation or partnership). The manager
appointed by PWS may be PWS, in its capacity as a restaurant management
business. In no event will PWS charge more to the Franchisee's Pizzeria in
management fees than it charges its own affiliated entities. All funds from the
operation of the Pizzeria during the management by PWS's appointed manager will
be kept in a separate fund, and all expenses of the Pizzeria, including
compensation, other costs and travel and living expenses of PWS's manager will
be charged to this fund. In managing the Pizzeria, PWS's obligation will be to
use its reasonable efforts and PWS will not be liable for any debts or
obligations of the Pizzeria, or to any of the Franchisee's creditors for any
products, materials, supplies or services purchased by the Pizzeria prior to or
during PWS's management.

                  14. DEFAULT AND TERMINATION

                        (a) Grounds for Termination: PWS has the right to
terminate this Agreement and the franchise effective upon delivery of notice of
termination to the Franchisee, if:

                              (i) The Franchisee or any of its owners have made
any material misrepresentations on its application for the franchise or has made
any representation or warranty or provided PWS with any information which is
untrue or inaccurate in any material respect;

                              (ii) The Franchisee does not open the Pizzeria
within 12 months after the date of execution of this Agreement;

                              (iii) The Franchisee fails to apply for an on-sale
beer and wine license for the Pizzeria on or before the expiration of five days
after the execution of the lease for the Pizzeria premises;

                              (iv) The Franchisee fails to attend, complete
and/or achieve a passing grade in any required course given by PWS subsequent to
the opening of the Pizzeria;

                              (v) The Franchisee's on-sale beer and wine license
is suspended for a period in excess of 65 days, or is revoked;

                              (vi) The Franchisee or any of its owners is judged
a bankrupt, becomes insolvent, makes an assignment for the benefit of creditors,
is unable to pay its debts as they become due, a petition under any bankruptcy
law is filed against the Franchisee or any of its owners or a receiver or other
custodian is appointed for all or substantially all of the assets of the
Pizzeria;

                              (vii) The Franchisee abandons or fails to
continuously and actively operate the Pizzeria;

                              (viii) The lease or sublease for the Pizzeria is
terminated or cancelled or the Franchisee is unable to renew or extend the lease
or sublease or the Franchisee

                                       23
<PAGE>
fails to maintain possession of the Pizzeria premises (unless the Franchisee is
permitted to relocate the Pizzeria as provided in this Agreement);

                              (ix) The Franchisee or any of its owners is
convicted of a felony or other crime which substantially impairs the goodwill
associated with the Proprietary Marks or engages in any misconduct which, in
PWS's judgment, adversely affects the reputation of the Pizzeria or the goodwill
associated with the Proprietary Marks;

                              (x) The Franchisee intentionally underreports the
Adjusted Gross Sales of the Pizzeria for any period or periods;

                              (xi) Any other Franchise Agreement between the
Franchisee or any of its owners and PWS is terminated by PWS for cause;

                              (xii) The Franchisee fails to obtain or maintain
insurance required by PWS and does not correct such failure within 48 hours
after written notice is delivered to the Franchisee; provided, however, that PWS
will not exercise its right to terminate this Agreement if the Franchisee
immediately ceases operating the Pizzeria and obtains all such insurance within
10 days after written notice is delivered to the Franchisee;

                              (xiii) The Franchisee fails to comply with any
provision of this Agreement or any specification, standard or operating
procedure or rule prescribed by PWS relating to the use of any Proprietary Mark
or the quality of pizza or any beverage sold or the cleanliness or sanitation of
the Pizzeria and does not correct such failure within seven calendar days after
written notice is delivered to the Franchisee;

                              (xiv) The Franchisee or any of its owners fails to
comply with any other provision of this Agreement or any specification, standard
or operating procedure and fails to correct this failure within 30 calendar days
after written notice is delivered to the Franchisee;

                              (xv) The Franchisee fails to pay any amount owed
to PWS, its affiliates or subsidiaries, or any creditor or supplier of the
Franchisee or the Pizzeria or any taxing authority for federal, state or local
taxes (other than amounts being bona fide disputed through appropriate
proceedings) and does not correct such failure within 10 calendar days after
written notice is delivered to the Franchisee; or

                              (xvi) The Franchisee or any of its owners on three
or more occasions within any one year period fails to comply with any one or
more provisions of this Agreement including, without limitation, the obligation
to submit when due, sales reports or financial statements, to pay when due the
Royalty Fees, Advertising Fees, or other payments to PWS or its affiliates or
subsidiaries or any other creditors or suppliers of the Franchisee or the
Pizzeria, whether or not such failure to comply is corrected after notice is
delivered to the Franchisee.

                        (b) Obligations upon Termination: Upon termination or
expiration of the franchise, the Franchisee is required to immediately pay PWS
all Royalty Fees, Advertising

                                       24
<PAGE>
Fees and other charges which are due and owing under this Agreement. The
Franchisee must also immediately return to PWS all copies of the Manuals and
take such action as may be required to cancel all assumed name or equivalent
registrations relating to the use of any Proprietary Mark, notify the telephone
company and all listing agencies of the termination or expiration of the
Franchisee's right to use all telephone numbers and all classified and other
directory listings of the Pizzeria, and authorize transfer of these to PWS or
its the Franchisee or designee; and make the Pizzeria accessible and available
for PWS to operate if PWS elects to do so. If the Franchisee fails to take any
of these measures, it shall pay to PWS a fee of $2,500 for the expense of
handling these matters which PWS requires the Franchisee to specifically perform
with respect to its obligations under this Paragraph. Upon termination or
expiration of this Agreement, the Franchisee must, at its own expense, and
within 45 days of termination or expiration of this Agreement, make such
reasonable modifications in the exterior and interior decor of the Pizzeria as
PWS requires to eliminate its identification as a Me-N-Ed's Pizzeria and cease
identifying the Pizzeria as a Me-N-Ed's Pizzeria or as being associated with PWS
and the Proprietary Marks.

                        (c) Purchase of Pizzeria Assets: Upon the termination or
expiration of the franchise, except termination by the Franchisee for cause, PWS
has the option, but not the obligation, exercisable for 30 days, to purchase the
assets of the Pizzeria. The formula purchase price for such acquisition will be
an amount calculated by determining the net after tax earnings of the Pizzeria
during the immediately preceding three years, multiplied by five, and divided by
three.

                  15. UNAVOIDABLE DELAYS

                  In the event of failure to perform or delays in the
performance of any duties hereunder caused by forces not within the reasonable
preventive control of the party due to perform, for example (without
limitation), government regulations, fire, flood, labor disputes, natural
disasters, acts of God, civil disorders, riots, insurrections, work stoppages,
slowdowns or disputes, or other similar events, such failures or delays shall
not cause a default in performance, but, in the event of delay, the parties
shall extend the time of performance for a period of time equivalent to the
length of delay, or for such other reasonable period of time as agreed to
between the parties, provided that such extension shall not enlarge or extend
the term of this Agreement set forth in Paragraph 5 of this Agreement.

                  16. SEVERABILITY AND CONSTRUCTION

                        (a) Severability: Except as expressly provided to the
contrary herein, each portion, section, part, term, and/or provision of this
Agreement shall be considered severable, and if, for any reason, any section,
part, term, and/or provision herein is determined to be invalid and contrary to,
or in conflict with, any existing or future law or regulation by a court or
agency having valid jurisdiction, such shall not impair the operation of, or
have any other effect upon, such other portions, sections, parts, terms, and/or
provisions of this Agreement as may remain otherwise intelligible, and the
latter shall continue to be given full force and effect and bind the parties
hereto; and the invalid portions, sections, parts, terms, and/or provisions
shall be deemed not to be part of this Agreement.

                                       25
<PAGE>

                        (b) No Rights to Others: Except as expressly provided to
the contrary herein, nothing in this Agreement is intended, nor shall be deemed,
to confer upon any person or legal entity other than the Franchisee, PWS, PWS's
officers, directors, and employees, and such of the Franchisee's and PWS's
respective successors and assigns any rights or remedies under or by reason of
this Agreement.

                        (c) Court Decisions: The Franchisee expressly agrees to
be bound by any promise or covenant imposing the maximum duty permitted by law
which is subsumed within the terms of any provision hereof, as though it were
separately articulated in and made a part of this Agreement, that may result
from striking from any of the provisions hereof any portion or portions which a
court may hold to be unreasonable and unenforceable in a final decision to which
PWS is a party, or from reducing the scope of any promise or covenant to the
extent required to comply with such a court order.

                  17. RELATIONSHIP BETWEEN PARTIES

                        (a) No Fiduciary Relationship: It is understood and
agreed by the parties hereto that this Agreement does not create a fiduciary
relationship between them, that the Franchisee is an independent contractor, and
that nothing in this Agreement is intended to constitute either party an agent,
legal representative, subsidiary, joint venturer, partner, employee, or servant
of the other for any purpose whatsoever.

                        (b) Independent Contractors: The Franchisee shall hold
itself out to the public to be an independent contractor operating pursuant to
this Agreement. The Franchisee agrees to take such actions as shall be necessary
to that end.

                        (c) Indemnification: The Franchisee understands and
agrees that nothing in this Agreement authorizes the Franchisee to make any
contract, agreement, warranty, or representation on PWS's behalf, or to incur
any debt or other obligations in PWS's name, and that PWS shall in no event
assume liability for, or be deemed liable hereunder as a result of, any such
action, or by reason of any act or omission of the Franchisee or any claim or
judgment arising therefrom. The Franchisee shall indemnify and hold PWS, its
subsidiaries and affiliates, and their respective officers, directors,
shareholders, employees and agents harmless against any and all such claims
arising directly or indirectly from, as a result of, or in connection with the
Franchisee's activities hereunder, as well as the costs, including attorneys'
fees, of defending against them.

                  18. WAIVER

                  No failure of PWS to exercise any power given to it hereunder,
or to insist on strict compliance by the Franchisee with any obligation or
condition hereunder, and no custom or practice of the parties at variance with
the terms hereof shall constitute a waiver of PWS's right to demand exact
compliance with the terms hereof. Waiver by PWS of any particular default by the
Franchisee shall not affect or impair PWS's rights with respect to any
subsequent default of the same or of a different nature; nor shall any delay or
omission of PWS to exercise any rights arising from a default affect or impair
PWS's rights as to the default or any subsequent default.

                                       26
<PAGE>

                  19. NOTICES

                  All notices hereunder shall be hand delivered or sent by
express mail or air courier or by registered or certified mail to PWS and the
Franchisee at the respective addresses set forth on the first page of this
Agreement, unless PWS and/or the Franchisee shall from time to time change the
addresses by written notice to the other as provided herein. Notice may also be
given to the Franchisee at the Pizzeria location specified herein after the date
the Pizzeria is first open for business. Any notice given by registered or
certified mall shall be deemed received by the party to whom it is addressed on
the third day after such notice is deposited in the United States mail with
postage thereon fully prepaid, return receipt requested.

                  20. APPLICABLE LAW AND JURISDICTION

                  This Agreement shall be governed in all respects and aspects
by the laws of the state in which the Pizzeria is located, and the parties
hereby agree that any legal action concerning this Agreement shall be brought in
a court of competent jurisdiction.

                  21. TERMINOLOGY

                  All terms and words used in this Agreement, regardless of the
number and gender in which they are used, shall be deemed and construed to
include any other number, singular or plural, and any other gender, masculine,
feminine, or neuter, as the context or sense of this Agreement or any section,
paragraph, or clause herein may require, as if such word had been fully and
property written in the appropriate number and gender.

                  22. STATUS OF AGREEMENT

                        (a) Entire Agreement: This Agreement and the exhibits
attached hereto and incorporated herein, if any, contain the entire agreement of
the parties and there are no representations, inducements, promises, agreements,
arrangements or undertakings, oral or written, between the parties hereto other
than those set forth and duly executed in writing in this Agreement.

                        (b) Other Agreements: Upon execution of this Agreement
by PWS, all previous agreements, contracts, arrangements or undertakings of any
kind relative to the franchise granted herein are cancelled, and as between the
parties hereto, all claims and demands are fully satisfied; provided, however,
that this subparagraph shall have no effect upon written agreement(s) signed by
both parties, whenever executed, except to the extent that such written
agreement specifically refers to and modifies or cancels this Agreement.

                  23. AMENDMENT OF AGREEMENT

                  This Agreement shall not be modified or amended except by
written agreement executed by both parties hereto.

                                       27
<PAGE>

                  24. COSTS AND EXPENSES OF ENFORCEMENT

                  The prevailing party shall recover the reasonable costs and
expenses, including reasonable attorneys' fees, incurred by such party in
connection with any legal proceeding involving the enforcement of any of the
provisions of this Agreement.

                  25. CAPTIONS

                  The Paragraph headings throughout this Agreement are for
convenience and reference only, and the words contained therein shall not be
held to expand, modify, amplify, or aid in the interpretation or construction of
this Agreement.

                  26. CONSENT AND APPROVAL

                  Whenever either of the parties is required herein to obtain
the consent or approval of the other party, such consent or approval shall not
be unreasonably withheld.

                  27. REPRESENTATIONS

NO REPRESENTATION, PROMISE, GUARANTY OR WARRANTY WAS MADE TO INDUCE THE
EXECUTION HEREOF OR IN CONNECTION HEREWITH WHICH IS NOT EXPRESSLY CONTAINED
HEREIN. THE FRANCHISEE RECOGNIZES THAT NEITHER PWS NOR ANY OTHER PERSON CAN
GUARANTEE THE FRANCHISEE'S SUCCESS IN THE FRANCHISED BUSINESS. BY THE EXECUTION
AND ACCEPTANCE OF THIS AGREEMENT, THE PARTIES HERETO ACKNOWLEDGE THAT THEY HAVE
READ THE SAME AND UNDERSTAND EACH PROVISION HEREOF. THIS AGREEMENT, ALTHOUGH
DRAWN BY PWS, SHALL BE CONSTRUED FAIRLY AND REASONABLY, AND NOT MORE STRICTLY
AGAINST ONE PARTY THAN AGAINST THE OTHER PARTY HERETO.

                        (a) Business Risks: The Franchisee acknowledges that the
success of the business venture contemplated by this Agreement involves
substantial business risks and will be largely dependent upon the ability of the
Franchisee as an independent business person. PWS expressly disclaims the making
of, and the Franchisee acknowledges not having received, any warranty or
guaranty, express or implied, as to the potential volume, profits, or success of
the business venture contemplated by this Agreement.

                        (b) Review of Agreement: The Franchisee acknowledges
that the Franchisee has received and read, and understands, this Agreement, the
exhibits attached hereto, and agreements relating hereto, if any; and that PWS
has accorded the Franchisee ample time and opportunity to consult with advisors
of the Franchisee's own choosing about the potential benefits and risks of
entering into this Agreement.

                        (c) Receipt of Offering Circular: The Franchisee
acknowledges that it received a complete copy of this Agreement, the exhibits
hereto, and agreements relating hereto, if any, at least five business days
prior to the date on which this Agreement was executed. The Franchisee further
acknowledges that it has received the disclosure statement required by law

                                       28
<PAGE>
and entitled "Me-N-Ed's Pizzerias Franchise Offering Circular" at least 10
business days prior to the date on which this Agreement was executed.

                  28. EFFECTIVE DATE

                  This Agreement shall become effective and binding on the
date of execution by PWS as set forth below.

                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement.

DATED:
                                           Franchisee (Print Name)

                                           By:

                                           Title:

DATED:                                     PIZZA WORLD SUPREME, INC.
        ----------------------------

                                           By:

                                           Title:

                                       29
<PAGE>

                                    EXHIBIT A

                  On _______________, _____, __________________________ opened
                                                 (Name of Franchisee)

a Me-N-Ed's Pizzeria pursuant to the Franchise Agreement, dated ______________,
_____, and located at ________________________________________________________.

DATED:
                                           Franchisee (Print Name)

                                           By:

                                           Title:

DATED:                                     PIZZA WORLD SUPREME, INC.
        ----------------------------

                                           By:

                                           Title:

                                       30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]