Document:

LEASE

LEASE

This Lease is made and entered into this 1 day of May, 1999, by and between
Eateries, Inc. "EATS" (together referred to as "Tenant"), and Great Places L.L.C.
"GPLLC"., an Oklahoma Limited Liability Company ("Landlord").

WITNESSETH:

In consideration of the mutual covenants and agreements contained in this Lease and the due and faithful performance of each and all the
terms, covenants and conditions contained herein, Landlord and Tenant agree as follows: 

ARTICLE 1

Leased Premises

Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the
building, the parking lot, driveways, and other
 improvements, more particularly described on attached Exhibit "A," (the
 "Premises") located at 1220 S. Santa Fe, Edmond, Oklahoma. 

ARTICLE 2

Term

(A) Initial Term:  This Lease shall be effective on June
1, 1999, the "Rent Commencement Date," and the initial term of this Lease shall extend to the
date fifteen years from the Rent commencement Date ("Initial Term"), unless sooner terminated or extended as herein provided. The term
"Lease
Year" as used herein shall be defined as twelve months beginning on the Rent Commencement Date. Each successive Lease Year shall be that
twelve-month period following the end of the first Lease Year.(B) Option to Extend: As part of the consideration for the execution of this Lease by
Tenant, and conditioned upon Tenant having performed all of its
obligations hereunder, and provided Tenant is not at the time of exercise of any such option to extend in default
hereunder, Landlord hereby grants to
Tenant one option to extend the Initial Term for a period of five
years, upon the same terms and I I conditions, with rent at the rate as paid in the last
year of the initial fifteen year term plus the cumulative CPI increase or $20 per square foot whichever is greater. If Tenant elects to exercise the
option to extend this Lease, it shall notify Landlord of its intention in writing not less than six months before the expiration of the Initial
Term.  Except as otherwise specifically stated in this Lease, the term of this Lease shall include the Initial Term and any
extension, renewal or holdover
thereof. 

ARTICLE 3

Use

(A) The Premises shall be used only for the purposes of maintaining office space. In connection
therewith, Tenant shall be in compliance at all times with all applicable statutes and ordinances.

(B) Tenant shall, during the term of this Lease, operate its business on the Premises with reasonable due diligence and efficiency in a first-class and professional manner;
provided, however, that this provision shall not apply if the Premises should be closed and the business of Tenant therein be temporarily shut down on account of
strikes, lockouts, acts of God, repairing, cleaning, decorating or remodeling or causes beyond the control of Tenant; and
provided, however, that this shall in no way affect Tenant's other obligations under this
Lease, including but not limited to the payment of Rent.

ARTICLE
 

4 Rent  

 

(A) Tenant agrees to pay to Landlord as rental payments "Rent";
$8,900 per month ($106,800 annually) for years one (1) through three (3), $10,383
per month ($124,600 annually) for years four (4) through year six (6), $11,867 per month
($142,400 annually) for years seven (7) through year ten
(10), and $13,350 per month ($160,200 annually) or the year one rate increased by the cumulative increase in the
CPI, whichever is greater, for years eleven (11) through year fifteen (15) . The
monthly rental shall be paid in advance, without demand, on the first day of each calendar month during the term of this Lease prorated on a per diem basis for a fraction of any month. The prorated rent for the first fractional month of the Initial Term
shall be paid on the execution of this
Lease, if applicable.

As used in this lease, the term "CPI" or "Consumer Price Index" shall mean the average for urban wage earnings and clerical
workers, all items, sub-groups, and special groups of items as promulgated by
the Bureau of Labor Statistics of the United States Department of Labor, using the year 1999 as a base of
100. 

In the event that the Consumer Price Index ceases to incorporate a significant number of
items, or if a substantial change is made in the method of establishing the CPI, then the CPI shall be adjusted to
the figure that would have resulted had no change occurred in the manner of computing the CPI. In the event that the CPI (or a successor or substitute index) is not
available, a reliable governmental or other nonpartisan publication, evaluating the relevant information used in determining the
CPI, shall be used in lieu of the CPI.

Where required in this Lease, the cumulative increase in the CPI will be calculated by determining the percentage increase in the CPI during the period of time from the base year of 1999 through the year next previous to the year in
which the rental amount is to be calculated.

(B) Tenant and Landlord agree that no security deposit will be required.

(C) All sums of money to be paid Landlord by Tenant under this lease will be considered Rent. Any
payment of Rent made more than fifteen days after it is due will earn interest at 15% per annum
("Default Rate").

ARTICLE 5

Indemnity - Insurance by Tenant

(A) Tenant covenants with Landlord that Landlord shall not be liable for any damage or liability of any kind or for any damage or injury to
persons or property during the term of this Lease from any cause whatsoever by reason of the
use, occupancy and enjoyment of the Premises by
Tenant or any person thereon or any person holding under Tenant, and Tenant hereby indemnifies and saves harmless Landlord from all liability
whatsoever on account of any such damage or injury and from all
liens, claims, and demands arising out of the use of the Premises; provided,
however, that Tenant shall not be liable for damage or injury occasioned by reason of the negligent acts or omissions of
Landlord, its agents, servants, employees or contractors and Landlord agrees to hold Tenant harmless
therefrom, including attorneys fees and costs of defense.(B) Tenant further covenants and agrees that it will carry and
maintain, during the entire term hereof, at Tenant's sole cost and expense, Rent, the following types of
insurance, in the amount specified and in the form hereinafter provided for: 

(1) Public Liability and Property Damage: During the term of this
Lease, Tenant
shall procure and maintain in full force and effect, at its sole
cost, bodily injury and property damage
liability insurance with coverage limits of not less than $2,000,000.00
combined, and $500,000.00 each
occurrence, insuring against any and all liability of the insured with respect to the Premises or arising
out of the maintenance, use or occupancy thereof. All such bodily injury liability insurance and
property damage liability insurance may be provided under umbrella-type policies maintained by
Tenant.

(2) Fire and Extended Coverage Insurance: Tenant agrees that it
will, during the term hereof, at its sole expense, keep in full force and effect upon the Premises fire insurance with Special Extended Coverage written by a responsible insurance company authorized to do business in the state where the Premises are
located in an amount not less than one hundred percent of the replacement cost of the
Restaurant, including furniture, fixtures, equipment and any alterations or additions to the Premises whether owned by Tenant or Landlord. All fire and extended coverage insurance which Tenant is obligated to maintain shall be for the benefit of Landlord
and Tenant. In the case of loss or damage by fire or other risks insured
against, such insurance proceeds shall be paid to and become the property of
Landlord, except that Tenant shall be entitled to the replacement cost of Tenant's Property as defined in Article 10 hereof. 

(3) Policy Form: All policies of insurance provided for herein shall be issued by insurance companies with general
policyholder's rating of not less than A and a financial rating of not less than class XII as rated in the most current available
Best's Insurance Reports, and shall be qualified to do business in the state in which the Premises are located. All such policies shall be issued in the name of Tenant and shall name Landlord as an additional insured
thereunder, which policies shall be for the mutual and joint benefit and protection of Landlord and Tenant to the extent of their respective interests in the Premises. Certificates of such insurance shall be delivered to Landlord. As often as any
such policy shall expire or terminate, renewal or additional policies shall be procured and maintained by Tenant in like manner and to like extent. All policies of insurance shall contain a provision that the company writing said
policy will give to Landlord twenty days' notice in writing in advance of any cancellation or lapse or the effective date of any reduction in the amounts of insurance.

(4) Mutual Waiver of Subrogation: Landlord and Tenant,
hereby grant to each other, on behalf of any insurer providing fire and all-risk coverage to either of them covering the Premises or
contents of the Premises, a mutual waiver of any right of subrogation any such insurer of one party may
acquire against the other by virtue of payments of any loss under such
insurance, such a waiver to be
effective so long as each is empowered to grant such waiver under the terms of its insurance
policy or policies involved without payment of additional premium. Each party will notify the other in the event
of cancellation of such provision, and such waiver shall stand mutually terminated as of the date either
Landlord or Tenant ceases to be so empowered.

ARTICLE 6

Not Used

ARTICLE 7

Taxes

(A) Tenant agrees to pay as Rent during the term of this Lease, before any
fine, penalty, interest or cost may be added thereto, or becomes due or is imposed by operation of law for the nonpayment
thereof, all taxes, assessments or impositions, license and permit fees and other governmental
charges, general or special, ordinary or extraordinary, unforeseen and foreseen, of any kind and nature
whatsoever, levied and assessed upon the Premises and personal property therein. Upon request Tenant shall provide Landlord with copies of tax receipts or similar evidence of
Tenant's payments thereof or if requested by Landlord, shall deliver to Landlord a check made payable to the taxing authority within seven days after
Landlord's request but in no event more than thirty days before such payment is due.

Taxes for the first fractional year of the Lease Term and for the last year of the term hereof shall be prorated between Landlord and Tenant so that Tenant shall be responsible for the payment of only those taxes accruing during the term
of this Lease. With respect to any assessments which may be levied against or upon the Premises or which under the laws then in force may be evidenced by improvements or other
bonds, or may be paid in annual installments, only the amount of such annual installment (with appropriate proration for any partial year) and statutory interest shall be included within the computation of the annual taxes and assessments levied against
the premises.

(B) Nothing herein contained shall require Tenant to pay income taxes assessed against
Landlord, or any capital levy, corporation franchise, excess profits, estate,
succession, inheritance or transfer taxes of Landlord.

(C) Landlord agrees that Tenant retains the right, at Tenant's sole cost and
expense, to contest the legality or validity of any of the taxes, assessments, levies or other public charges to be paid by Tenant which are not being contested by
Landlord, and in the event of any such contest, the failure on the part of Tenant to pay any such
tax, assessment, levy or charge promptly when the same becomes due and payable shall not constitute a default
hereunder, and Tenant upon final determination of such contest, shall immediately pay and discharge any judgment rendered against
it, together with all costs and charges incidental thereto.

(D) Tenant shall also pay when due any sales, use, transaction,
rent, excise or other taxes levied or imposed upon, or measured by, amounts payable by Tenant to Landlord under this Lease other than income taxes imposed upon Landlord.

ARTICLE 8

Triple-net Lease

This Lease is a "Triple-net Lease" and requires the Tenant to pay or reimburse
Landlord, should Landlord advance such costs and expenses, all costs associated with the premises including but not limited
to, all utilities, insurance, taxes, and repairs and maintenance as described in Articles
5, 7, and 14 of this Lease respectively.

ARTICLE 9

Changes alterations and Additions/Compliance with Laws

(A) Tenant shall have the right at any time and from time to time during the term of this Lease to make non-structural
changes, alterations and additions to the interior of the Premises; provided,
however, that Tenant shall make no changes or alterations costing more than $100,000.00 without first obtaining the written consent of
Landlord, which consent shall not be unreasonably withheld or delayed, nor shall such changes materially diminish the value of the Premises. 

(B) No such change, alteration or addition shall be undertaken or commenced until Tenant shall have procured and paid for all required permits and licenses of all governmental authorities having jurisdiction. 

(C) All work done in connection with any change, alteration or addition shall be done with 

I reasonable diligence, in good workmanlike manner and in compliance with all applicable laws and regulations of all governmental authorities having jurisdiction. The cost of any such
change, alteration or addition shall be paid or discharged by Tenant so that the Premises at
all tunes shall be free of any and all liens resulting therefrom, and Tenant's all-risk coverage for the Premises shall be accordingly increased to cover such modifications.

ARTICLE 10

Mechanic's Liens

(A) Tenant shall pay or cause to be paid all costs for work done by it or caused to be done by it on the
Premises, and Tenant shall keep the Premises free and clear of all mechanic's liens and other liens due to work done for Tenant or persons claiming under Tenant. Tenant shall indemnify and save Landlord harmless from all
liability, loss, damage, costs, attorneys' fees and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or material or supplies furnished for Tenant or persons claiming under Tenant and Landlord shall
have a similar obligation to Tenant for work or material furnished to Landlord.

(B) Within thirty days after the filing of any mechanic's lien or claim of
lien, Tenant shall either: have discharged the lien from the Premises by payment or by recording a sufficient bond as provided by
law, or have purchased and delivered to Landlord a title insurance policy insuring Landlord against the lien.  If a final judgment establishing the validity or existence of a claim or lien for any amount is
entered, Tenant shall pay and satisfy the same immediately.

 (C) If Tenant shall fail to comply with the requirements of subparagraph (B)
above, Landlord shall have the right, but not the obligation, to pay the lien or claim of
lien, regardless of any dispute over its validity, and the amounts so paid, together with reasonable
attorneys' fees and any other costs or expenses incurred in connection with the
lien, shall be immediately due and payable from Tenant to Landlord. 

 (D) Should any lien claims be filed against the Premises or any action affecting the title to the Premises be
commenced, the party receiving notice of such lien or action shall forthwith give the other party written notice thereof. 

 (E) All references herein to "Lien" or "mechanic's lien" shall refer only to a
mechanic's lien or claim of lien which states that work has been completed on the Premises and payment has not been
forthcoming, and shall not include any statutory notice of record which are for the sole purpose of stating that work has commenced on the Premises. 

 ARTICLE 11 

Signs

 Tenant shall be allowed to affix and maintain building signs and free standing monument signs on the Premises as approved from time to time by any requisite governmental agency. 

 ARTICLE 12 

 Fixtures and Personal Property 

All of Tenant's personal property within the Premises, including
furniture, furnishings, and equipment and except property installed or attached to the Premises at
Tenant's expense, (collectively "Tenant's Property"), shall remain the property of
Tenant, and Tenant shall have the right to remove any and all of Tenant's Property at any time during or upon the termination of the term hereof for purposes of replacement otherwise. Tenant shall maintain adequate equipment to conduct the business
permitted in Article 3 and to conform with regulatory requirements concerning equipment. Tenant shall promptly repair any damage occasioned to the Premises by reason of the removal of
Tenant's Property. Any of Tenant's property not removed from the Premises before thirty days after the expiration of the initial term will become the property of
Landlord, who may dispose of it as Landlord sees fit, but Tenant will pay storage and disposition costs thereof. As required by
Landlord, Tenant will remove any fixtures installed by Tenant at the expiration of
the partial term as the same may be extended, promptly repairing any damage caused by such removal. All remaining fixtures will become
Landlord's property.

ARTICLE 13 

Assigning, Mortgaging. Subletting,

(A) Tenant shall not assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or
Tenant's interest in and to the Premises or any part thereof or sublet all or any portion of the Premises without first procuring the written consent of
Landlord, which consent shall not be unreasonable withheld or delayed, provided that Tenant shall continue to remain liable to Landlord under this Lease. Any attempted
transfer, assignment or subletting without the written consent of Landlord shall be void and confer no rights upon any third person.

(B) Each transfer, assignment or subletting to which there has been consent shall be by an instrument in writing in a form and substance satisfactory in
Landlord's reasonable judgment. The transferee, assignee or sublessee shall agree in writing for the benefit of Landlord herein to
assume, to be bound by and to perform the terms, covenants and conditions of this Lease to be
done, kept and performed by
Tenant.

(C) Notwithstanding the
foregoing, Tenant shall have the right, without Landlord's consent, to assign or transfer this Lease or sublet the Premises or any part thereof to a successor corporation of
Tenant, to any corporation into which or with which Tenant merges or consolidates, or to any parent, subsidiary or affiliated
corporation, including any corporation which controls or is under the control of
Tenant, or to any franchisee of Tenant or of any corporation affiliated with Tenant; provided that any such assignee or subtenant shall deliver to Landlord a copy of a document satisfactory in
Landlord's reasonable judgment under which such assignee or subtenant agrees to assume and perform all of the terms and conditions of this Lease on
Tenant's part to be performed from and after the effective date of the assignment or
sublease, and further provided that Tenant shall guarantee the financial performance of the assignee under this Lease.

 

ARTICLE 14

Repairs and Maintenance

(A) Subject to the provisions of Article 15, Tenant shall at its own cost and
expense, as Rent, keep and maintain the Premises, including the parking area and all grounds surrounding the building on the Premises in good and sanitary
order, condition and repair, and make all necessary repairs and replacements to the
Premises, including the parking areas and such grounds, including but not limited to
roof, pipes, heating, air conditioning and ventilation systems, plumbing system,
windowglass, windows, ceilings, interior walls, floors, skylights, doors,
cabinets, draperies, carpeting and other floorcoverings, electrical wiring, light fixtures and switches and all other fixtures and all the appliances and appurtenances and all
landscaping, lawn maintenance and watering systems belonging thereto. All
maintenance, repairs, and replacements shall be done in a first-class manner at least equal in quality to the original work. In the event Tenant shall default in performing
maintenance, repairs or replacements, Landlord may (but shall not be so required) perform such
maintenance, repairs or replacements for Tenant's account, and the expenses thereof shall constitute and be immediately due and payable as additional rent.

Landlord shall not be obligated to make any repairs, replacements,
alterations, additions or improvements in or to the Premises or grounds of the Premises except for any damage caused by the negligence of Landlord or its
agents, servants, employees or contractors. Tenant may, after having given thirty days prior written notice to
Landlord, repair any such damage caused by the negligence of Landlord or its
agents, servants, employees or contractors and deduct such costs from the next payment of rent due
hereunder, so long as Landlord is not diligently pursuing such repair.

ARTICLE 15

Reconstruction

(A) In the event the Premises shall be destroyed by fire or any other
perils, Tenant shall: 

1.  Within a period of sixty days thereafter, commence
repair, reconstruction and restoration of the Premises and prosecute the same diligently to complete in accordance with plans prepared by Tenant and approved by
Landlord, which approval shall not be unreasonable withheld or delayed, in which event this Lease shall continue in full force and effect and for such purpose Landlord shall make available to Tenant the proceeds of all insurance received by Landlord with
respect to such
destruction, or 

2.  In the event more than 33 1/3 percent of the then replacement value of the Premises is destroyed within the last three years of the Initial Term or during the last three years of any extended
term, either Landlord or Tenant (provided it is not then in default hereunder) may at its option elect to terminate this Lease by giving written notice of such termination to the other parry within thirty days after such
destruction, in which event this Lease shall terminate upon the giving of such
notice, and all insurance proceeds attributable to the Premises (except for that portion attributable to
Tenant's Property) shall be payable to Landlord and neither party shall thereafter have any further rights or obligations hereunder. 

(B) Upon any termination of this Lease under any of the provisions of this
Article, the parties shall be released thereby without further obligations to the other parry coincident with the surrender of possession of the Premises to Landlord except for items which have theretofore accrued and remain unpaid. 

ARTICLE 16 

Bankruptcy - Insolvency 

Tenant agrees that in the event all or substantially all of
Tenant's assets are placed in the hands of a receiver or trustee, and such receivership or trusteeship continues for period of ninety
days, or should Tenant make an assignment for the benefit of creditors or be finally adjudicated a
bankrupt, or should Tenant institute any proceedings under the Bankruptcy Code as the same now exists or under any amendment thereof which may hereafter be
enacted, or under any other act relating to the subject
of bankruptcy wherein Tenant seeks to be adjudicated a bankrupt, or to be discharged of its
debt, or to effect a plan of liquidation, composition or reorganization, or should any involuntary proceeding not be removed within one hundred twenty days
thereafter, then this Lease or any interest in and to the Premises shall not become an asset in any and all rights or remedies of Landlord hereunder or by law
provided, it shall be lawful for Landlord to declare the term hereof ended and to reenter the Premises and take possession thereof and remove all persons
therefrom, and Tenant shall have no further claim thereon or hereunder.

ARTICLE 17 

 
Defaults/Remedies 

 Tenant's Default; Landlord's Remedies and Lien 

(A) Tenant's Default. This Lease is made upon the condition that Tenant shall punctually and faithfully perform all of the
covenants, conditions and agreements to be performed by Tenant as set forth in this Lease. The following shall each be deemed to be an event of default (an
"Event of Default"): 

    (a) The failure of Tenant to pay the Rent, or any installment
thereof, if such failure continues for ten (10) days after such payment is due, without the necessity of Landlord giving Tenant notice of any such
failure, which notice Tenant hereby waives: 

    (b) Repetition or continuation of any failure to timely pay any
Rent, where such failure shall continue or be repeated for two (2) consecutive
months, or more than four (4) times in any period of twelve (12) consecutive months (As used in this subsection (b)
"timely" shall mean when due, without regard to any grace period as provided in subsection (a) above); 

    (c) The failure of Tenant to observe or perform any of the
covenants, terms or conditions set forth in Article 13 relating to assignments,
mortgaging, and subletting) or when such failure continues for a period of fifteen
(15)' days, without the necessity of Landlord giving Tenant notice of any such
failure, which notice Tenant hereby waives; 

    (d) The failure of Tenant to observe or perform any other
covenant, term or condition set forth in this Lease when said failure continues for a period of fifteen (15) days after written notice thereof from Landlord to
Tenant, or if such failure cannot reasonably be cured within fifteen (15) days, when said failure continues for a period of sixty (60) days after written notice thereof from Landlord to Tenant provided that Tenant commences to cure said failure within
such fifteen (15) day period and continues diligently to pursue the curing of the same until completed. 

    (e) The commencement of levy, execution, attachment or other process of law
upon, on or against the estate created in Tenant hereby; the appointment of a
liquidator, receiver, custodian, sequestrator, conservator, examiner, trustee or other similar officer for
Tenant, and the continuation of such appointment for a period of thirty (30)
days, or the insolvency of Tenant or any assignment by Tenant for the benefit of creditors; 

    (f) The commencement of a case by or against Tenant under any
insolvency, bankruptcy, creditor adjustment or debtor rehabilitation laws, whether state or
federal, or the determination by Tenant to request relief under any insolvency
proceeding, including any insolvency bankruptcy, creditor adjustment or debtor rehabilitation
laws, whether state or federal. Such commencement or determination by Tenant shall terminate the estate created in Tenant hereby and neither this Lease nor the premises shall become as asset in any such proceeding; 

    (g) Tenant's failure to pay when due and
payable, all taxes, assessments and government charges imposed upon it or which it is required to withhold and pay
over, without the necessity of Landlord giving Tenant notice of any such failure, which notice Tenant hereby waives; 

    (h) The enactment of any rent control law or ordinance which requires reductions in any Rent payable hereunder or which
prohibits, or reduces the amount of, any increase of Rent provided for in this Lease; and 

    (i) The repetition of any failure to observe or perform any one or more of the
covenants, terms or conditions hereof (whether or not any such failure is specified in subsections (a) through (i) above) more than four (4)
times, in the aggregate, in any period of twelve (12) consecutive months, without regard to any required notice and/or grace period which may be provided herein. Notwithstanding the
foregoing, Landlord shall not be required to give Tenant any notice or period to cure any failure or other circumstance described above before exercising
Landlord's remedies hereunder if Landlord in good faith reasonable believes that emergency action is necessary to prevent loss of or injury to persons or property or to prevent the incurrence of a cost or expense which Landlord reasonable believes Tenant
will be unable or unwilling to pay. In such event Landlord may exercise such remedies and take such other action as it deems reasonable appropriate and shall promptly thereafter give Tenant notice thereof. 

(B) No Waiver; Remedies.  Landlord's failure to
insist upon strict
performance of any covenant, term or condition of this Lease or to exercise any right or remedy shall not be deemed (i ) a waiver of any default or breach hereunder so long as the same shall continue to
exist, or (ii) a waiver or relinquishment for the future of such performance, right or remedy. Upon an Event of Default
above, have the following remedies in addition to all other rights and remedies specified elsewhere in this Lease and which may now or hereafter provided by law or
equity, to which Landlord may resort cumulatively, successively or in the alternative:

Landlord may decline to retake possession of the Leased Premises and may sue for the Rent as such Rent becomes due or sue for the present value of the Rent to accrue under this Lease and other damages or remedies to which Landlord may be
entitled.

Landlord may elect to retake possession of the Leased Premises
and, without initially reletting the Leased Premises, sue for damages in an amount equal to the present value of the Rent to accrue under this Lease and other damages or remedies to which Landlord may be entitled.

Landlord may retake possession of the Premises, relet the Premises and sue for damages. During the period of time that Landlord is trying to relet the
Premises, Tenant will be liable for damages in an amount equal to the full Rent. Landlord may sue from time to time for the rent and/or damages which accrue under this
Lease, or may sue for the present value of the total rent and /or damages which will be due or which may be sustained throughout the remaining term in accordance with the measure of damages set forth below. The election to sue either periodically or for
the total amount shall be at the sole option and discretion of Landlord. In any action brought by Landlord to recover rent and/or
damages, Tenant waives to the fullest extent permitted by law any applicable statute of limitations.

Landlord may elect to seek declaratory relief, specific performance and/or injunctive relief (prohibitive or mandatory) with respect to any
covenant, term or condition set forth in this Lease. 

Landlord may terminate this Lease, re-enter the Property and take possession
thereof, remove all persons and property therefrom, and sue for damages, in which event Tenant shall have no further claim or right hereunder. 

( C ) Provisions Regarding Landlord's Remedies. The following provisions shall apply with respect to
Landlord's remedies: 

Landlord's re-entry or taking of possession of the Leased Premises shall not be construed as an election to terminate this Lease unless Landlord gives written notice of such termination. Notwithstanding any reletting without
termination, Landlord may, at any time after a reletting and subject to the provisions
herein, elect to deem this Lease terminated for any then uncured default. Any re-entry or taking of possession by Landlord shall not affect or diminish the ongoing obligation or liability of Tenant for all Rent and other obligations due and owing under
this Lease. Re-entry by the Landlord will not obligate the Landlord to mitigate damages by
reletting, unless otherwise provided by applicable law. Wherever in this Lease Landlord has reserved or is
granted the right of re-entry into the
Premises, the use of such word is not intended, nor shall it be construed to be limited to its technical legal meaning. 

If Landlord re-enters, it may take possession of the Premises, remove all persons and property from the Premises and store such property at
Tenant's expense or resort to legal process without being deemed guilty of trespass or becoming liable for any loss or damage occasioned thereby. Tenant agrees that if Landlord stores such
property, Landlord shall have a lien thereon pursuant to 42 Okla. Stat. 91. 

Landlord may relet the Premises or any part thereof for such term or terms (which may extend beyond the
Term), and at such rentals and upon such other terms and conditions as Landlord in its sole discretion deems advisable and such reletting shall not in any way relieve Tenant from the obligations and liabilities under this Lease. Any and all amounts
received upon such reletting and all rentals received by Landlord therefrom shall be applied first to any indebtedness owed by Tenant to Landlord other than Rend due
hereunder, then to pay any cost and expense of reletting, including brokers' and
attorneys' fees and costs of alterations and repairs, then to the Rend due hereunder. If there is any
residue, it shall be applied ( i ) to any other damage incurred by Landlord as a result of
Tenant's default, or (ii) if this Lease is not terminated, to any deficiencies between the rentals received and the Rent that may become due hereunder. In such latter
event, any funds due Tenant shall be paid at the expiration of the Term. It is understood that said funds shall not draw interest while held by Landlord as security for
Tenant's obligations hereunder. 

To the extent permitted by law, Tenant waives any right of
redemption, re-entry or repossession and any defense of merger. 

Landlord may pursue one or more remedies against Tenant and need not elect its remedy until such time as findings of fact have been made by a judge or
jury, whichever is applicable, in a trial court of competent jurisdiction. 

The covenant to pay Rent and other amounts hereunder and to perform all obligations hereunder are independent covenants from the other terms and provisions of this Lease and Tenant shall have no right to hold
back, offset or fail to pay any such amounts for any alleged default by Landlord or for any other reason whatsoever. 

After any default under this Lease, Landlord may accept any partial payment of the sums then due under this Lease without prejudice to its rights to collect the balance of the sums then due and without prejudice to any other right or
remedy Landlord may have. 

(D) Damages Upon Termination. If Landlord elects to terminate this
Lease, Landlord may recover from Tenant the following damages, in addition to its other remedies: 

    (i) Any unpaid Rent which has been earned as of the time of such
termination, including interest thereon at the Default Rate; plus 

    (ii) The amount by which any unpaid Rent which would have been earned after termination through the date of judgment exceeds the greater of (A) the amount of rent that Tenant proves could have been reasonable obtained
by Landlord upon a reletting of the Leased Premises for such
period, or (B) the amount of rent actually received by Landlord for such period, together with interest thereon at the Default Rate; plus 

    (iii) The amount by which the Rent which would have accrued for the balance of the Term after the date of judgment exceeds the amount of rent that tenant proves could be reasonably obtained by Landlord for such
period, reduced to present value at the Default Rate; plus 

    (iv) Any other amount necessary to compensate Landlord for all the detriment proximately caused by
Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom
including, without limitation, the cost of repairing the Premises, the cost of reletting the Premises
(including, without limitation, the cost of remodeling and brokers' fees), and reasonable
attorneys' fees; plus 

    (v) At Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable state law. Damages shall be due and payable from the date of termination.

(E) Landlord's Self-Help. In addition to
Landlord's rights of self-help set forth elsewhere in this Lease, if Tenant at any time fails to perform any of its obligations under this Lease in a manner reasonable satisfactory to
Landlord, Landlord shall have the right, but not the obligation, upon giving Tenant at least three (3)
days' prior notice of its election to do so (but in the event of any emergency, no prior notice shall be
required), to perform such obligations on behalf of and for the account of Tenant and to take all such action to perform such obligations. In such
event, Tenant shall reimburse Landlord on demand the costs and expenses incurred by Landlord in connection therewith as additional
Rent, with interest thereon from the dates) such costs and expenses are incurred until paid at the Default Rate. The performance by Landlord of any such obligation shall not constitute a waiver of any default by Tenant or a release of Tenant
therefrom.

(F) Landlord's Agents. In exercising any rights hereunder or taking any actions provided for
herein, Landlord may act through its employees, agents or independent contractors as authorized by Lender. 

(G) Landlord's Lien. Tenant hereby grants to Landlord a lien and security interest on all property of Tenant now or hereafter placed in or upon Premises
including, but not limited to, all fixtures, machinery, equipment, furnishings and other articles of personal property now or
hereafter  placed in or upon the Leased Premises by or on behalf of
Tenant, and all proceeds of the sale or other disposition of such property
(collectively, the "Collateral") and such property shall be and remain subject to such lien and security interest of Landlord to secure the payment of all Rent and other sums agreed to be paid by Tenant herein. Said lien and security interest shall be in
addition to and cumulative of any
Landlord's lien provided by law. This Lease shall constitute a security agreement under the Oklahoma Uniform Commercial Code (the
"UCC") so that Landlord shall have and may enforce a security interest in the Collateral. Tenant agrees to execute as debtor such financing statements and continuation statements and any further documents as Landlord may now or hereafter reasonably
request in order that such security
interest(s) may be and remain perfected pursuant to the UCC. Landlord may at its election at any time file a copy of this Lease as a financing statement.
Landlord, as secured party, shall be entitled to all of the rights and remedies afforded a secured parry under the
UCC, which rights and remedies shall be in addition to and cumulative of any
Landlord's liens and rights provided by law or by the other terms and provisions of this Lease.

ARTICLE 18 

Condemnation 

If any portion of the Premises is taken by appropriation for public use under right of eminent
domain, or if a voluntary conveyance is made to the condemning authority in lieu of eminent domain
proceedings, Landlord and Tenant agree that their respective rights shall be governed as follows:

(A) In the event that a taking occurs which, in the reasonable judgment of Landlord does not substantially impair
Tenant's use of the Premises, Landlord shall be entitled to retain the entire proceeds from the eminent domain proceeding (except for any portion attributable to
Tenant's Property as defined in Article 12 hereof or damage to or interruption of
Tenant's business), but it shall be obligated to repair or restore the Premises required by any alteration or damage resulting from such
taking, and Rent
will not abate.

(B) In the event a taking occurs which, in the reasonable judgment of Landlord substantially impairs
Tenant's use of the Premises, Tenant shall have the right to terminate this Lease upon thirty days notice to Landlord but notice shall be given no later than the date title vests in the condemning authority.

In no event shall Tenant have any claim against Landlord for any portion of the award paid by the condemning
authority, whether for the fee or the leasehold, as a result of such taking or conveyance under threat of
condemnation, and Tenant does hereby assign to Landlord all of Tenant's right, title and interest in and to any and all amounts so paid or awarded except for any award made specifically to Tenant by the condemning authority for loss or interruption of
Tenant's business or Tenant's Property as defined in Article 12 hereof or for the cost of moving all of the
same, or for the unamortized cost of Tenant's leasehold improvements paid for by Tenant and depreciated on a straight-line basis over the term of this Lease.

ARTICLE 19

Quiet Enjoyment - Covenants

Tenant, upon payment of all rent and observing and keeping all the
covenants, agreements and conditions of this Lease on its part to be kept, shall quietly have and enjoy the Premises during the term of this
Lease, without hindrance or molestation by anyone claiming by, from, through or under
Landlord, subject and subordinate, however, to the exceptions, reservations and conditions of this Lease.

ARTICLE 20

Notices and Payment of Rent

Whenever in this Lease it shall be required or permitted that notice or demand be given or served by either parry to this Lease to or on the other
parry, such notice or demand shall be given or served by personal delivery or by certified or registered
mail, return receipt requested, postage prepaid, addressed as follows:

TO LANDLORD: 

Great Places, L.L.C.

2001 Cambridge Way

Edmond, Oklahoma 73013

WITH COPY TO: 

Max C. Tuepker, Esq.

204 N. Robinson, 25'h Floor

Oklahoma City, Oklahoma 73102

TO TENANT: 

Eateries, Inc.

1220 S. Santa Fe

Edmond, Oklahoma

WITH COPY TO: 

Tom Golden

Hall, Estill, Gable, Golden & Nelson

320 S. Boston Avenue, Suite 400

Tulsa, Oklahoma 74103-3708

Every notice, demand, request or communication hereunder which is given by personal delivery shall be deemed given as of the date and time of such personal
delivery, and every notice, demand, request or communication hereunder sent by mail in the manner described above shall be deemed to have been given or served upon mailing. All rent and other payments shall be either delivered or sent by first-class mail
and paid by Tenant to Landlord at the address above provided. Either party may change its address by giving written notice to the other parties in the manner described in this Article.

ARTICLE 21

Obligations of Successors

The parties hereto agree that all the provisions hereof are to be construed as covenants and agreements as though the words importing such covenants and agreements were used in each separate paragraph
hereof, and that all of the provisions hereof shall bind and inure to the benefits of the parties hereto and their respective legal
representatives, successors and assigns.

ARTICLE 22

Force Majeure

Any prevention, delay or stoppage due to strikes, lockouts, labor
disputes, acts of God, inability to obtain labor or materials or reasonable substitutes
therefor, governmental restrictions, governmental regulations, governmental
controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other
casualty, and other causes beyond the reasonable control of the party obligated to
perform, shall excuse the performance by such parry for a period equal to any such
prevention, delay or stoppage, except the obligations imposed with regard to Minimum Annual Rental
and other charges to be paid by Tenant pursuant to this Lease. It is expressly agreed that any other time limit provision contained in this Lease shall be extended for the same period of time lost by causes hereinabove set forth.

ARTICLE 23

Holding Over

It is hereby agreed that in the event of Tenant holding over after termination of this Lease with the consent of
Landlord, the tenancy thereafter shall be from month to month in the absence of a written agreement to the
contrary, and such month-to-month tenancy shall be terminable on thirty days written notice given by either Landlord or Tenant. During such month-to-month
tenancy, Tenant shall pay to Landlord rent equal to 110 percent of the monthly payment of Minimum Annual Rental paid in the previous lease year.

ARTICLE 24

Estoppel Certificates / Subordination / Non-Disturbance

At any time and from time to time, Landlord on at least seven days prior notice by
tenant, and Tenant, on at least seven days prior request by landlord, will deliver to the party making such request a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there shall have been
modifications, that the same is in full force and effect as modified and stating the
modifications), any other statements typically found in such estoppel certificates which Landlord or Tenant may reasonably request and the date to which the rent and any other deposits or charges have been paid and stating whether or not to the best
knowledge of the party executing such
certificate, the party requesting such statement is in default in the performance of nay
covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which the executing party may ha This Lease Agreement shall be subordinate to any mortgage or other hypothecation for security now or in the future
placed on the real property of which the Premises are a
part, and to all advances made on such security, and on all renewals,
modifications, consolidations, replacements, and extensions of such mortgage or other hypothecation. In spite of such
subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease
Agreement, unless this Lease Agreement is otherwise terminated pursuant to its terms.

Tenant also agrees to execute any documents required to effectuate such
subordination, and failure to do so within ten (10) days after written demand, does
make, constitute, and irrevocably appoint Landlord as Tenant's attorney-in-fact, and in
Tenant's name, place, and stead, to do so.

Upon a foreclosure of any mortgage or execution of any deed in lieu of
foreclosure, or declaration of Landlord's default under any hypothecation for security
and demand by
Landlord's successor, Tenant shall attorn to and recognize such successor as Landlord under this Lease Agreement.

ARTICLE 25

Memorandum of Lease

Landlord and Tenant agree that this Lease shall not be recorded but that a Memorandum of Lease describing the Premises
and stating the term of this
Lease, Tenant's rights of renewal and the addresses of Landlord and Tenant may be executed if desired by either
parry, and the same may thereafter be recorded by either Landlord or Tenant. The form of Memorandum is attached hereto as Exhibit
"B".

ARTICLE 26

Representations and Warranties

The Landlord makes no representations or warranties regarding the condition and/or fitness for a particular use of the Premises or personal property located on the Premises. Tenant has inspected the Premises and such personal
property, and accepts the Premises and all such property in "as is condition." Tenant further agrees to make whatever improvements or alterations at
it's own expense to the Premises that would be required to operate in compliance with all Federal and state regulatory requirements. Landlord makes no representations or warranties concerning the ADA or any environmental issues.

ARTICLE 27

Waiver

No waiver of any condition or any legal right or remedy shall be implied by the failure to declare a forfeiture or for any other
reason, and no waiver of any condition or covenant shall be valid unless it is in writing and signed by the waiving party. No waiver by either parry of any covenant or condition herein shall constitute a waiver of any further breach or continuance of the
same condition or covenant or any other condition or covenant.

ARTICLE 28

Not Used

ARTICLE 29

Not Used

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease on the day and year first above written.

LANDLORD:

GREAT PLACES, L.L.C.

660:
James Burke, Managing Member

TENANT:

EATERIES, INC.

By:_______________________

Vincent F. Orza, Jr. President

State of Oklahoma           
)

                                       
) ss:

County of Oklahoma         )

This instrument was acknowledged before me on May 1, 1999, by James
Burke, as Managing Member of GREAT PLACES, L.L.C., an Oklahoma limited liability
company, on behalf of said limited liability company, as Landlord.

Notary Public

My Commission Expires:

Seal

 

State of Oklahoma           
)

                                       
)ss:

County of Oklahoma        )

This instrument was acknowledged before me on May 1, 1999, by Vincent F.
Orza, Jr., as President of EATERIES, INC., an Oklahoma corporation, on behalf of said
corporation, as Tenant.

Notary Public

My Commission. Expires:
 

SealSTANDARD FORM

STANDARD FORM

 

 

GARFIELD'S RESTAURANT & PUB

 

 

FRANCHISE AGREEMENT

 

between

 

Eateries, Inc.

and

_________________________

(Franchisee Name)

FOR

_________________________

(Restaurant Location)

FRANCHISE AGREEMENT

TABLE OF CONTENTS

Page

ARTICLE I FRANCHISE GRANT; TERM AND RENEWAL1

1.1Franchise Grant.*

1.2Initial Term.*

1.3Renewal.*
1.3.1*

1.3.2*

1.3.3*

1.3.4*

1.3.5*

1.3.6*

ARTICLE II FRANCHISE AND ADVERTISING FEES*

2.1Franchise Fees.*
2.1.1Initial Fee.*

2.1.2Continuing Royalty Fee.*

2.2Advertising Fees.*

2.3Form of Payment.*

ARTICLE III DUTIES OF FRANCHISOR*

3.1Assist Franchisee.*

3.2Training.*
3.2.1*

3.2.2*

3.3Informational Material.*

3.4Plans and Specifications.*

3.5Promotional Material.*

3.6Garfield's Operations Manual.*

3.7Quarterly Inspections.*

3.8No Third Party Reliance.*

ARTICLE IV DUTIES OF FRANCHISEE*

4.1Attendance at Training Programs.*

4.2Lease of Premises.*
4.2.1*

4.2.2*

4.2.3*

4.2.4*

4.2.5*

4.2.6*

4.3Construction of Restaurant.*
4.3.1*

4.3.2*

4.3.3*

4.3.4*

4.4Use of Premises.*

4.5Maintenance of Restaurant.*

4.6Improvements and Modifications*

4.7Remodeling of Restaurant.*

4.8Operation of Restaurant.*
4.8.1*

4.8.2*

4.8.3*

4.8.4*

4.8.5*

4.8.6*

4.8.7*

4.8.8*

4.8.9*

4.9Purchase of Ingredients, Supplies, and Materials.*
4.9.1*

4.9.2*

4.9.3*

4.9.4*

4.9.5*

4.9.6*

4.9.7*

4.10Right to Set-Off.*

4.11Right to Enter.*

4.12Accounting and Records.*
4.12.1Maintenance of Records.*

4.12.2Financial Reports.*

4.12.3Other Reports.*

4.12.4Recordation.*

4.12.5Examinations.*

4.13Liquor License.*

4.14No Waiver.*

ARTICLE V PROPRIETARY MARKS*

5.1Representations of Franchisor.*
5.1.1*

5.1.2*

5.1.3*

5.2Agreement of Franchisee.*
5.2.1*

5.2.2*

5.2.3*

5.2.4*

5.2.5*

5.2.6*

5.2.7*

5.2.8*

5.2.9*

5.2.10*

5.3Acknowledgments of Franchisee.*
5.3.1*

5.3.2*

5.3.3*

5.3.4*

5.3.5*

ARTICLE VI CONFIDENTIAL OPERATIONS*

6.1Compliance with Manual Standards.*

6.2Confidentiality of Manual.*

6.3Property of Franchisor.*

6.4Maintenance of Manual at Restaurants.*

ARTICLE VII CONFIDENTIAL INFORMATION*

7.1Proprietary Information.*
7.1.1*

7.1.2*

7.1.3*

7.2Injunctive Relief.*

7.3Investments in Publicly Traded Companies.*

7.4Reforming Provisions.*

7.5Confidentiality Agreements.*

ARTICLE VIII USE OF NAME; ADVERTISING*

8.1Advertising Under Trade Name.*

8.2National Advertising and Marketing Program.*
8.2.1*

8.2.2*

8.2.3*

8.2.4*

8.2.5*

8.3Local Advertising.*

8.4Cooperative Advertising Campaigns.*

8.5Opening Promotions.*

8.6Prior Approval of Franchisor.*

ARTICLE IX INSURANCE*

9.1Procurement of Policies.*

9.2Coverage and Amounts.*

9.3Additional Coverage.*

9.4Obligation Not Limited.*

9.5Evidence of Insurance.*

9.6Authority of Franchisor to Procure Insurance.*

ARTICLE X TRANSFERS OF INTEREST*

10.1Transfer by Franchisor.*

10.2Transfer by Franchisee.*
10.2.1Conditions on Transfer.*

10.2.2Consent.*

10.2.3No Security Interest.*

10.3Right of First Refusal.*
10.3.1Right.*

10.3.2Consideration.*

10.4Transfer Upon Death or Mental Incompetency.*

10.5Non-Waiver of Claims.*

10.6Permitted Assignments.*

ARTICLE XI DEFAULT AND TERMINATION*

11.1Termination by Franchisor Without Notice.*

11.2Termination by Franchisor with Notice.*
11.2.1*

11.2.2*

11.2.3*

11.2.4*

11.2.5*

11.2.6*

11.2.7*

11.2.8*

11.3Termination by Franchisor with Notice and Opportunity to Cure.*

11.4Termination by Franchisee.*

ARTICLE XII OBLIGATIONS UPON TERMINATION OR EXPIRATION*

12.1General Obligations.*
12.1.1*

12.1.2*

12.1.3*

12.1.4*

12.1.5*

12.1.6*

12.1.7*

12.1.8*

12.1.9*

12.1.10*

12.1.11*

12.2Obligations Upon Termination by Franchisee.*

12.3Refund of Initial Fee Upon Termination.*

ARTICLE XIII AGREEMENTS*

13.1Best Efforts.*

13.2Franchisee and Principal Shareholders Agreement 

Not to Compete.*

13.3Franchisor Agreement Not to Compete.*
13.3.1*

13.3.2*

13.3.3*

13.4Interference with Employment Relations.*

13.5Reduction of Scope of Agreement.*

13.6Reforming Provisions.*

ARTICLE XIV TAXES, PERMITS AND INDEBTEDNESS*

14.1Prompt Payment of Taxes.*

14.2Bona Fide Dispute.*

14.3Compliance with Laws.*

14.4Notification of Legal Proceedings.*

ARTICLE XV FRANCHISEE ORGANIZATION, AUTHORITY,

AND FINANCIAL CONDITION*

15.1Entity Representations & Warranties.*

15.2Covenants.*

15.3Financial Statements.*

15.4Ownership.*

15.5Guarantees.*

ARTICLE XVI RELATIONSHIP AND INDEMNIFICATION*

16.1Relationship.*

16.2Indemnification.*

ARTICLE XVII GENERAL PROVISIONS*

17.1Request for Approval.*

17.2No Liability Assumed.*

17.3No Waiver.*

17.4Notices.*

17.5Entire Agreement.*

17.6Severability and Construction.*
17.6.1*

17.6.2*

17.6.3*

17.6.4*

17.6.5*

17.6.6*

17.7Remedies.*

17.8Force Majeure.*

17.9Applicable Law.*

17.10Final and Binding Arbitration.*

17.11Injunctive Relief; Venue.*

17.12Legal Fees.*

17.13Acknowledgments.*
17.13.1*

17.13.2*

17.13.3*

17.13.4*

SCHEDULE A*

SCHEDULE 15.4*

SCHEDULE 17.4*

APPENDIX A*

APPENDIX B AUTHORIZATION AGREEMENT FOR PRE-ARRANGED     PAYMENTS*

GARFIELD'S RESTAURANT & PUB

FRANCHISE AGREEMENT

THIS FRANCHISE AGREEMENT (this "Agreement") made and entered into as of this ____ day of ____________, ______ (the "Effective Date"), by and between EATERIES, INC., an Oklahoma corporation ("Franchisor
"); ____________________, a ___________________ corporation ("Franchisee"); and ________________________ (collectively the "Principal Shareholders" and individually, a "Principal Shareholder" of Franchisee):

WHEREAS, Franchisor is the owner of certain service marks and trademarks relating to "Garfield's Restaurant & Pub" restaurants, in particular the two federally registered marks "Garfield's" (Registration No. 1,539,694) and "Casey
Garfield's" (Registration No. 1,543,014) (the "Proprietary Marks"); and

WHEREAS, Franchisor is engaged in the business of owning, operating and licensing or franchising restaurant/bars utilizing the Proprietary Marks (collectively, the "System"); and, in connection therewith, using and licensing or
franchising the use of the Proprietary Marks; and

WHEREAS, Franchisor owns valuable goodwill connected with the System and has formulated and developed methods, trade secrets, designs, processes, technical and operational information, know- how, and other intellectual property
relating to the operation and implementation of "Garfield's Restaurant & Pub"  (the "Concept"); and

WHEREAS, Franchisor, Franchisee and the Principal Shareholders have entered into a Development Agreement dated ___________, ______ ("Development Agreement"), relating to the development by Franchisee of additional franchises for
Garfield's Restaurant & Pub restaurants and/or other franchises offered by Franchisor;  within the "Territory" as defined therein; and

WHEREAS, Franchisee desires to be franchised to operate "Garfield's Restaurant & Pub" pursuant to the provisions hereof and the Development Agreement, and at the location of the Restaurant as specified on Schedule A
hereof, and Franchisee acknowledges that it has had a full and adequate opportunity to be thoroughly advised of the terms and conditions of this Agreement, and to have its legal counsel review this Agreement.

NOW, THEREFORE, in consideration of the undertakings, commitments and mutual covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, covenant and
agree as follows:

ARTICLE I

FRANCHISE GRANT; TERM AND RENEWAL
1.1Franchise Grant.

  Subject to the terms and conditions of this Agreement, Franchisor hereby grants to Franchisee, and Franchisee accepts, the right and license to construct, open and operate a "Garfield's Restaurant & Pub" (the "Restaurant")
at the location defined in Schedule A, in accordance with the Concept, as it may be changed, improved and further developed from time to time, and the Proprietary Marks and such other trade secrets, marks and know-how as may be designated from time to time.  Franchisee shall
have no right under this Agreement to license or grant franchises to others. During the term of this Agreement until its expiration or earlier termination, Franchisor shall not establish a restaurant utilizing the mark "Garfield's Restaurant & Pub" or
the Proprietary Marks or license another franchisee to establish such a restaurant, at any location, other than airports, state and federally owned properties, and sports complexes, within the lesser of (i) a three mile radius of the Restaurant or (ii) a
radius from the Restaurant which includes a daytime or residential population of 40,000 or more people.  Notwithstanding the foregoing, Franchisor may establish a restaurant or may license a restaurant to a third party within the geographic area set forth
in the preceding sentence, provided that such restaurant does not utilize the System or  the service mark "Garfield's Restaurant & Pub" or the Proprietary Marks.  The area consisting of the lesser of (i) or (ii) above is hereinafter referred to as the "Protected Territory").
1.2Initial Term. 

  Except as otherwise provided in this Agreement, the initial term of this Agreement shall be for a period of twenty years from the date of execution of this Agreement.
1.3Renewal

.  Franchisee may, at its option, renew the right and license to operate its Restaurant for four additional five-year periods; provided, however, that prior to the end of the applicable term:
1.3.1

Franchisee has given Franchisor written notice of its election to renew not less than twelve months nor more than eighteen months prior to the end of the initial term and each five-year renewal term, as applicable; and Franchisee has
made or provided for renovation of the premises of the Restaurant (the "Premises"), as Franchisor may reasonably require, including, without limitation, upgrading of equipment, renovation and modernization of the restaurant building, the premises, signs, fixtures and equipment so as to reflect the then-current design,
decor, specifications and standards of the System and the Concept; 
1.3.2

Franchisee and the Principal Shareholders are not in default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee, Franchisor and the Principal Shareholders, or their
subsidiaries and affiliates, and have substantially complied with all of the terms and conditions of such agreements and have exercised all prior renewals during the term and renewal term(s) hereof;
1.3.3

Franchisee and the Principal Shareholders have satisfied all monetary obligations owed by Franchisee to Franchisor and its subsidiaries and affiliates and have timely met these obligations throughout the term of this Agreement; and
Franchisee shall present satisfactory evidence that Franchisee has the right to remain in possession of the Premises for the renewal term, or has obtained Franchisor's approval of a new location for the Restaurant;
1.3.4

Franchisee and the Principal Shareholders have executed Franchisor's then-current form of franchise agreement (with appropriate modifications to reflect the granting of a renewal) for the renewal term described in this Section 1.
3, which agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher Continuing Royalty Fee as defined below in subsection 2.1.2;
1.3.5

Franchisee and the Principal Shareholders have executed a general release, in a form prescribed by Franchisor, of any and all claims against Franchisor and its subsidiaries and affiliates, and their respective officers, directors,
agents and employees; and
1.3.6

Franchisee has complied with Franchisor's then-current qualification and training requirements.

ARTICLE II

FRANCHISE AND ADVERTISING FEES

2.1Franchise Fees.

  Franchisee shall pay Franchisor the following franchise fees:
2.1.1Initial Fee.

  Upon execution of this Agreement or earlier if required by the Development Agreement, Franchisee shall pay Franchisor a nonrefundable, initial fee of Thirty Thousand Dollars ($30,000) for the Restaurant (the "Initial Fee").
Franchisee shall be given credit towards the Initial Fee for any amounts paid as a Franchise Fee Deposit and/or application fee as allocable to the Restaurant pursuant to the Development Agreement. 
2.1.2Continuing Royalty Fee.

  Commencing with the opening of the Restaurant for business to the public, Franchisee shall pay to Franchisor, without set-off, credit, or deduction of any kind, a monthly "Continuing Royalty Fee" of the greater of $3,000.00
per month or 4% of the monthly Gross Receipts (as defined herein) of the Restaurant (prorated during any partial month), due and payable ten business days after month end.  The term "Gross Receipts" shall mean the total of all sales of food products, beverages and other merchandise and products to customers of Franchisee, sold at, from and by reason of the Restaurant, including without limitation all vending machines, video
game machines and juke box sales, less sales, use or service taxes collected and paid to the appropriate taxing authority and customer refunds made in the ordinary course of business.

2.2Advertising Fees.

  Franchisee shall pay Franchisor the monthly and/or quarterly advertising fees as Franchisor may require pursuant to Article VIII hereof.
2.3Form of Payment.

  The Initial Fee shall be paid by Franchisee or the Principal Shareholders to Franchisor by electronic or wire transfer in U.S. Dollars.  All other payments required by this Article II shall be paid by means of an
Electronic Depository Transfer Account ("Electronic Depository Transfer Account") pursuant to that certain Authorization Agreement for Pre-Arranged Payments in the form attached hereto as Appendix B, which shall be executed by Franchisee simultaneously with the execution of this
Agreement.  Immediately following the execution of this Agreement, Franchisee shall set up an Electronic Depository Transfer Account, and Franchisor shall have access to such account for the purpose of receiving payment for any payments required under
this Agreement and any other amounts which Franchisee owes to Franchisor (with the exception of the Initial Fee).  At least twenty-four hours prior to the date any applicable payment is owed to Franchisor by Franchisee under this Agreement, Franchisee
shall make deposits to the Electronic Depository Transfer Account in an amount sufficient to cover the applicable payments owed to Franchisor hereunder.  Deposits for any other amounts owned to Franchisor shall be in accordance with the procedures set
forth in the Manual.  

Any payment not actually received by Franchisor on or before the date due shall be deemed overdue.  If any such payment is overdue, Franchisee shall pay Franchisor, in addition to the overdue amount, interest on such amount from the
due date until paid at the rate of 18% per annum, provided that the rate shall not in any event exceed the maximum rate permitted by law.  Entitlement to such interest shall be in addition to any other remedies Franchisor may have or possess.

ARTICLE III

DUTIES OF FRANCHISOR
3.1Assist Franchisee.

  Franchisor shall assist Franchisee in establishing and maintaining the Restaurant and in familiarizing Franchisee with the proper operation of the Restaurant.
3.2Training. 
3.2.1

Franchisor shall provide, at a location designated by Franchisor, training for Franchisee and/or Franchisee's general manager and all other managers for the Restaurant.  The training program will commence at least ten weeks prior to
opening of the Restaurant, and will last for eight weeks.  The training program syllabus shall be as described in the Garfield's Operations Manual (the "Manual").  Transportation, room and board, compensation and any other expense incurred by Franchisee and its managers in connection with attending the training school will be borne solely by Franchisee.
Franchisor will bear the costs relating to its instructors, the training materials and administrative overhead.
3.2.2

Franchisor shall provide to Franchisee during the opening of the Restaurant a kitchen trainer, floor trainer, manager and supervisor.  The kitchen trainer will be available for up to four weeks, and all others will be available for up
to two weeks.  Longer periods are negotiable.  Franchisee will bear the expense of transportation, room and board, visas, work permits and local fees and income taxes of such persons.  Franchisor will bear the expense of their compensation.

3.3Informational Material.

  Franchisor shall provide Franchisee with such periodic newsletters, bulletins and additional informational material as Franchisor deems advisable.  Such additional information will include new recipes and menu items to be added to,
or substituted for, recipes and menu items previously furnished to Franchisee.
3.4Plans and Specifications.

  Franchisor shall make available at no charge to Franchisee a preliminary floor plan and design elements for the construction of a typical franchised restaurant and for the exterior and interior design and layout, fixtures,
furnishings, and signs.  Franchisee will obtain architectural and engineering services independently and at its own expense.  Franchisee shall advise Franchisor of, and be responsible for, architectural plans and specifications for the Restaurant, as well
as any alterations to the preliminary floor plan and design elements and specifications that may be  required to comply with local laws.  Franchisor shall have the right to review all such architectural and/or engineering plans which Franchisee obtains
and to prohibit the implementation of a plan, or part thereof, which Franchisor, in its sole and absolute discretion, believes is not consistent with the best interests of the System.  In the event that Franchisor desires to prohibit the implementation of
such plan, or part thereof, Franchisor shall so notify Franchisee within thirty business days of receiving such architectural and/or engineering plans for review.  Failure of Franchisor to so notify Franchisee within such thirty  business day period shall
be deemed to be an approval of such plans.  In the event Franchisor does object to any such plan, Franchisor shall provide Franchisee with a reasonable detailed list of changes necessary to make such plans acceptable to Franchisor.  Franchisor shall, upon
Franchisee's resubmission of such plans with such changes as Franchisee has prepared, notify Franchisee within fifteen business days of receiving such plans whether they are acceptable.  Failure to so notify Franchisee within such fifteen business day
period shall be deemed to be an approval of such amended plans.
3.5Promotional Material.

  Franchisor shall make available from time to time promotional materials for in store marketing by Franchisee for which Franchisee shall pay the reasonable value thereof, if used.  Franchisor must review and approve all advertising
and promotional material which Franchisee proposes to use.
3.6Garfield's Operations Manual.

  Franchisor shall loan Franchisee one copy of Franchisor's Manual for use at the Restaurant, subject to the conditions set forth in Article VI hereof.  The use of additional copies shall be controlled by Franchisor at fees set
by it.
3.7Quarterly Inspections.

  Franchisor seeks to maintain the standards of quality, professionalism, appearance and service of the System and the Concept, and to that end may conduct each calendar quarter an inspection of the Premises and such other periodic
inspections as may be desirable, subject to two days prior notice to Franchisee.  The cost of such quarterly inspections will be borne by Franchisor; provided, to the extent that Franchisee requests the assistance of Franchisor personnel at times other
than the regular quarterly inspections, costs incurred by Franchisor in furnishing such personnel and assistance will be borne by Franchisee.
3.8No Third Party Reliance.

  All of the obligations of Franchisor arising under this Agreement are to Franchisee, and no other party is entitled to rely upon, enforce, or obtain relief for any breach thereof, either directly or by subrogation.

ARTICLE IV

DUTIES OF FRANCHISEE
4.1Attendance at Training Programs.

  Franchisee, the Principal Shareholders and Franchisee's general manager and all other managers must attend training sessions conducted by Franchisor, until, in the judgment of Franchisor, they are sufficiently trained in Franchisor's
operating requirements and procedures, including the Concept.  The operation and manner of conducting such training school shall be in the manner determined by Franchisor.  Transportation, room and board, compensation and any other expense incurred by
Franchisee and its managers in connection with attending the training school will be borne solely by Franchisee.  Franchisor will bear the costs relating to its instructors, the training materials and administrative overhead.
4.2Lease of Premises.

  In the event Franchisee will occupy the Premises under a lease, sublease, or other contract of tenancy with a third party (the "Lease"), Franchisee shall, at least thirty days prior to the execution of the Lease, submit the
Lease in the English language to Franchisor for its written approval, which Lease shall be for a term at least as long as the initial term of this Agreement and shall include such terms and conditions as Franchisor may reasonably request to protect its
interest in the Restaurant, the System and the Concept including, without limitation, the following provisos:
4.2.1

A provision reserving to Franchisor the right, at Franchisor's election, to receive an assignment of the leasehold interest upon termination or expiration of the franchise grant;
4.2.2

A provision that expressly permits the lessor of the Premises to provide Franchisor all sales and other information it may have related to the operation of the Restaurant, as Franchisor may request; 
4.2.3

A provision that requires the lessor of the Premises concurrently to provide Franchisor with a copy of any written notice of deficiency under the Lease sent to Franchisee and that grants to Franchisor, in its sole discretion and sole
option, the right (but not the duty) to cure any deficiency under the Lease, should Franchisee fail to do so within fifteen days after the expiration of the period in which Franchisee may cure the default; 
4.2.4

A provision that evidences the right of Franchisee to display the Proprietary Marks in accordance with the specifications required by the Manual, subject only to the provisions of applicable law; 
4.2.5

A provision that the Premises shall be used only for the operation of the Restaurant; and
4.2.6

A provision that expressly states that any default under the Lease shall constitute a default under the Franchise Agreement, and a provision that Franchisor shall have the option to require an assignment of the Lease of the Premises
from Franchisee to Franchisor, without the lessor of the Lease having any right to impose conditions on such an assignment or to obtain any payment in connection therewith in the event of any default or termination of Franchisee under the Franchise
Agreement or Development Agreement or the termination of any such agreement.

Franchisee shall furnish Franchisor with a fully executed copy of the Lease within ten days after execution of the Lease.
4.3Construction of Restaurant.

  Prior to the commencement of any construction (including leasehold improvements) on the Premises, Franchisee, at its expense, shall comply, to Franchisor's satisfaction, with all of the following requirements:
4.3.1

Franchisee shall employ a qualified architect, or construction consultant, approved in advance by Franchisor, to review and adapt plans and specifications provided by Franchisor for construction of the Restaurant on the Premises;
4.3.2

Franchisee shall submit to  Franchisor, for Franchisor's approval, detailed plans and specifications adapting Franchisor's then-current standard floor plans and design elements and specifications to Franchisee's location and to local
and state laws, regulations and ordinances.  When approved by Franchisor, such plans and specifications shall not thereafter be materially changed or modified without the prior written consent of Franchisor;
4.3.3

Franchisee shall employ a qualified general contractor, approved in advance by Franchisor, to supervise construction of the building on the Premises, including completion of all improvements; and
4.3.4

Franchisee shall obtain all permits and certifications required for lawful construction and operation of the Restaurant, including, without limitation, zoning, access, sign and fire requirements, and provide to Franchisor such evidence
as Franchisor may reasonably request that all such permits and certifications have been obtained.

4.4Use of Premises.

  Franchisee shall use the Premises solely for the operation of the Restaurant; shall keep the Restaurant open and in normal operation for such minimum hours and days as Franchisor may from time to time specify in the Manual or as
Franchisor may otherwise approve in writing; and shall refrain from using or permitting the use of the Premises for any other purpose or activity at any time without first obtaining the written consent of Franchisor.
4.5Maintenance of Restaurant.

  Franchisee shall maintain the Restaurant in a high degree of sanitation, repair and condition, and in connection therewith shall make such additions, alterations, repairs and replacements thereto (but no others without Franchisor's
prior written consent) as may be required for that purpose.
4.6Improvements and Modifications

.  Franchisee agrees that from time to time Franchisor may change or modify the System and/or the Concept, including without limitation changes in the kinds or preparations of foods or beverages offered for sale, improvements or
alterations in the decor of the Restaurant, or modifications in the operating procedures or requirements of the Restaurant.  Franchisee shall accept such changes and modifications, as if they were part of this Agreement at the time of its execution, and
shall promptly undertake and complete the changes and modifications; provided that Franchisee need not accept a Material Change as defined herein unless such change is or will be made throughout the System.  A "Material Change" as defined herein is an improvement or modification that requires out-of-pocket expenditures by Franchisee in excess of $5,000.  Franchisee shall not change, modify or alter in any way the System or the Concept.
4.7Remodeling of Restaurant.

  In order to assure the continued success of the Restaurant, Franchisee shall, any time from time to time after five years from the date of this Agreement as reasonably required by Franchisor (taking into consideration the cost and
then-remaining term of this Agreement), modernize the Premises, equipment, signs, interior and exterior decor items, fixtures, furnishings, supplies and other products and materials required for the operation of the Restaurant to Franchisor's then-current
design, decor, specifications and standards of the Concept; provided that, at the time Franchisor requires Franchisee to so modernize the Premise at least 25% of Franchisor-owned and operated restaurants meet such standards and specifications.
Franchisee's obligations under this section are in addition to, and shall not relieve Franchisee from, any of its other obligations under this Agreement, including those contained in the Manual.
4.8Operation of Restaurant.

  Franchisee shall operate the Restaurant in strict conformity with such uniform methods, standards and specifications as Franchisor may from time to time prescribe in the Manual to insure that the highest degree of quality, timeliness
and service is uniformly maintained.  Franchisee agrees:
4.8.1

To maintain in sufficient supply and use at all times, only such food, beverages, furnishings, supplies, menus, fixtures and equipment as conform with Franchisor's standards and specifications, and to refrain from deviating therefrom
by using nonconforming items without Franchisor's prior written consent;
4.8.2

To sell or offer for sale only such food, beverages and other products as have been expressly approved for sale in writing by Franchisor; to sell or offer for sale all approved food, beverages and other products; and to discontinue
selling and offering for sale any food, beverages and other products as Franchisor may, in its discretion, disapprove in writing at any time.  With respect to the offer and sale by Franchisee of all food, beverages and other products, Franchisee shall
have sole discretion as to the prices to be charged to its customers and as to product brands conforming to Franchisor's standards and specifications.  Franchisee shall honor any gift certificates issued pursuant to a System-wide gift certificate program;
4.8.3

To insure that the approved food products sold by Franchisee hereunder shall be of the highest quality, and the method of preparing and serving and the nature, quality, ingredients and composition of the food products sold hereunder
shall comply with the instructions and recipes provided by Franchisor or contained in the Manual, and with the further written requirements of Franchisor as Franchisee may be advised from time to time.  All recipes and requirements shall remain the
property of Franchisor and shall be returned to it by Franchisee upon the expiration, termination or assignment by Franchisee of this Agreement; provided, Franchisee may, from time to time, request Franchisor to amend its instructions, recipes and
requirements, which requests, upon a demonstration of good cause and a determination that such amendment would not conflict with, or cause damage or injury to, the Concept or the System, shall be approved by Franchisor;
4.8.4

To permit Franchisor or its agents, at any reasonable time, to remove from Franchisee's inventory, or from the Restaurant, at Franchisor's option, samples of items without payment therefor, in amounts reasonably necessary for testing
by Franchisor or an independent laboratory to determine whether said samples meet Franchisor's then current standards and specifications.  In addition to any other remedies it may have under this Agreement, Franchisor may require Franchisee to bear the
cost of such testing if the supplier of the items has not previously been approved by Franchisor or if the sample fails to conform to Franchisor's specifications;
4.8.5

To purchase and install, at Franchisee's expense, all fixtures, furnishings, signs and equipment as Franchisor may reasonably direct from time to time in the Manual or otherwise in writing; and to refrain from installing or permitting
to be installed on or about the Premises, without Franchisor's prior written consent, any equipment or other improvements not previously approved as meeting Franchisor's standards and specifications; provided, the purchase and installation of any such
fixtures, furnishings, signs and equipment shall be subject to, and in compliance with, the terms of all local laws and the Lease, if any, for the Premises;
4.8.6

To maintain all equipment in a condition that meets operational standards specified in the Manual and, as equipment becomes obsolete or inoperable, to replace such equipment with the types and kinds of equipment as are then approved
for use in the System.  Franchisee shall also purchase and install new equipment within such reasonable times as are specified by Franchisor in the event Franchisor determines that Franchisee needs additional or substitute equipment to operate under the
Concept;
4.8.7

To establish and utilize a point-of-sale system, including without limitation the acceptance of credit cards, that is compatible with a system specified by Eateries, as may change from time to time, and in accordance with the
procedures of Franchisor and as contained in the Manual, as amended from time to time;
4.8.8

The Restaurant shall at all times be under the direct, on-premises supervision of Franchisee, a Principal Shareholder or a trained and competent employee acting as full-time manager.  Within six months from the Effective Date,
Franchisee shall notify Franchisor in writing of the person(s) selected to be manager(s) of the Restaurant.  Thereafter, Franchisee shall keep Franchisor informed at all times of the identity of any employee(s) acting as manager(s) of the Restaurant.
Franchisee and the Principal Shareholders agree that they will at all times faithfully, honestly and diligently perform their obligations hereunder and that they will not engage in any business or other activities that will conflict with their obligations
hereunder; and
4.8.9

To employ the minimum number of employees, and to implement a training program for such employees, as may be prescribed by Franchisor, and to comply with all applicable federal, state and local laws, rules and regulations with respect
to such employees.

4.9Purchase of Ingredients, Supplies, and Materials.

  Franchisee agrees that:
4.9.1

Franchisee shall purchase all food supplies and ingredients used in the composition of all menu items and other approved auxiliary products from approved suppliers which are in conformity with Franchisor's standards, as the same may be
modified from time to time.  Franchisor shall notify Franchisee of approved suppliers in its market area.  If Franchisee desires to purchase food supplies, ingredients or auxiliary products from other than approved suppliers, Franchisee shall submit a
written request for the same to Franchisor.  If Franchisor determines that such proposed supplier or auxiliary products meet the quality standards of Franchisor, then Franchisor shall so notify Franchisee, and in such event Franchisee may then purchase
food supplies and ingredients from such approved supplier, or purchase such auxiliary products.  In the event Franchisor does not disapprove such request within forty-five days after receipt, such request shall be deemed to have been approved.  Upon
request, Franchisor shall furnish Franchisee with a list of any contracts entered into by Franchisor with national or regional suppliers used in the restaurant operations;
4.9.2

Franchisee agrees to comply with and honor any and all rebate and/or purchasing programs that Franchisor establishes for the System.  Franchisor shall use commercially reasonable efforts to negotiate with suppliers for the lowest
possible price for food and beverages for all franchisees in the System.  In conjunction with such efforts, if Franchisor agrees to a rebate program with a supplier, all such rebates will be payable to Franchisor who shall distribute to Franchisee its
pro-rata share of its rebates, less a 15% handling charge.
4.9.3

The parties hereto agree that Franchisor's method of cooking and preparing its food is a highly confidential trade secret and that because of the importance of quality and uniformity of product, it is to the mutual benefit of both
parties hereto that Franchisor closely control the method of cooking and preparing such food;
4.9.4

Franchisee may purchase from Franchisor or its subsidiaries, upon such terms as Franchisor shall determine, such items and supplies as Franchisor offers for sale to its Franchisees;
4.9.5

Franchisee shall require all of its employees to dress in conformity with the styles that have been approved by Franchisor;
4.9.6

Franchisee shall make all payments to third parties, when due for obligations resulting from or incurred in the operation, or by virtue of the existence of the Restaurant, whether for services, goods, supplies, rent or otherwise; and

4.9.7

Franchisor, in its sole discretion, shall have the right to make, on behalf of Franchisee, any payment specified in this Agreement or the Lease of the Premises, or due and owed by Franchisee to any third party and which Franchisee
shall have failed to pay when due, whether directly or through Franchisee.  Franchisor shall bill Franchisee for any amount so paid by Franchisor, together with a delinquency charge of 18% per annum, provided that the rate of interest shall not in any
event exceed the maximum rate permitted by law.  Imposition of any such delinquency charge shall not constitute a waiver of the right of Franchisor to treat said failure of payment by Franchisee as a default under this Agreement or any other agreement, or
to seek other available legal remedies.

4.10Right to Set-Off.

  In the event that any of the obligations owing under this Agreement shall be due and payable, yet remain unpaid for thirty days or more, Franchisor is hereby authorized by Franchisee at any time and from time to time, without prior
notice, any such notice being expressly waived, to set off and appropriate and apply any funds held or owing by Franchisor (in any capacity) to or for the credit or the account of Franchisee against and on account of obligations and liabilities of
Franchisee under this Agreement and claims of every nature and description of Franchisor against Franchisee, whether arising under this Agreement or otherwise, regardless of whether Franchisor has made demand for payment, and although such obligations,
liabilities or claims are contingent or unmatured.  Franchisor agrees to notify Franchisee of any such set-off and the application made by Franchisor, provided that the failure to give notice shall not affect the validity of the set-off and application.
The right of set-off provided by this section is in addition to other rights and remedies that Franchisor may have.
4.11Right to Enter.

  Franchisee shall grant Franchisor and its agents the right to enter upon the Premises at any reasonable time for the purpose of conducting inspections; cooperate with Franchisor's representatives in such inspections by rendering such
assistance as they may reasonably request; and, upon notice from Franchisor or its agents, and without limiting Franchisor's other rights under this Agreement, take such steps as may be necessary immediately to correct the deficiencies detected during any
such inspection, including, without limitation, immediately desisting from the further use of any food, beverages, equipment, advertising materials, products or supplies that do not conform with Franchisor's then-current specifications, standards or
requirements.
4.12Accounting and Records.
4.12.1Maintenance of Records.

  Franchisee shall maintain and preserve, during the term of this Agreement, full, complete, and accurate books, records and accounts in accordance with the standard accounting system prescribed by Franchisor in the Manual or otherwise
in writing.  Franchisee shall retain during the term of this Agreement and for three years thereafter all books and records related to the Restaurant, including without limitation, sales checks, purchase orders, invoices, payroll records, customer lists,
check stubs, sales and all other tax records and returns, cash receipts and disbursement journals, and general ledgers.  [CHECKING WITH TAX ATTORNEY ON THIS ONE.]
4.12.2Financial Reports.

  In the form and manner as may be required by the Manual, Franchisee shall submit financial reports to Franchisor as required by this Section 4.12.  Franchisee shall complete and submit to Franchisor weekly reports of the Gross
Receipts for the Restaurant on or before 11:00 a.m. central time on the Monday following the calendar week to which the report relates.  Franchisee shall also supply to Franchisor on or before the tenth  day of each month an activity report for the last
preceding month for the Restaurant, including without limitation, a report of the Restaurant's Gross Receipts for such month.  Additionally, Franchisee shall, at its expense, submit to Franchisor the following financial statements for the Restaurant:  (i)
within thirty days of the end of each calendar quarter during the term of this Agreement, a profit and loss statement for the preceding quarter and a balance sheet as of the last day of the preceding quarter and (ii) no later than seventy-five days after
the Franchisee's fiscal period during the term of this Agreement, a profit and loss statement for the prior fiscal period and a balance sheet as of the last day of such fiscal period, prepared on an accrual basis including all adjustments necessary for
fair presentation of the financial statements.  All such financial statements shall be prepared in accordance with generally accepted accounting principles and shall be certified to be true and correct by Franchisee.  Franchisor reserves the right to
require annual financial statements reviewed or audited by an independent certified public accountant chosen by Franchisee and acceptable to Franchisor; such review or audit shall be at the expense of Franchisee.  Franchisor also reserves the right to
require that all financial statements be prepared in accordance with specimen forms provided to Franchisee by Franchisor.
4.12.3Other Reports. 

Franchisee shall submit to Franchisor such other periodic reports, forms and records as specified, and in the manner and at the time as specified in the Manual or otherwise in writing.
4.12.4Recordation.

  Franchisee shall record all sales on point of sale systems approved by Franchisor or on such other types of point of sale systems as may be designated by Franchisor in the Manual or otherwise in writing.  Franchisee agrees that
Franchisor shall have the right to require Franchisee to utilize point-of-sale systems that are fully compatible with any program or system which Franchisor, in its discretion, may employ.  Franchisor shall have full access to all of Franchisee's data,
system and related information by means of direct access, whether in person or by telephone/modem.
4.12.5Examinations.

  Franchisor or its designated agents shall have the right at all reasonable times to examine and copy, at its expense, the books, records and tax returns of Franchisee.  Franchisor shall also have the right, at any time, to have an
independent audit made of the books of Franchisee at Franchisor's expense.  If an inspection should reveal that any payments to Franchisor have been understated in any report to Franchisor, then Franchisee shall immediately pay to Franchisor the amount
understated upon demand, in addition to interest from the date such amount was due until paid, at 18% per annum, provided that the rate of interest shall not exceed the maximum rate permitted by law.  If an inspection discloses an understatement in any
report of 2% or more, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection (including, without limitation, reasonable accounting and attorneys' fees).  The foregoing remedies shall be in
addition to any other remedies Franchisor may have.

4.13Liquor License.

  The grant of the rights which are the subject of this Agreement is expressly conditioned upon the ability of Franchisee to obtain and maintain any and all required state and/or local licenses permitting the sale of liquor by the
drink on the Premises, and Franchisee agrees to use its best efforts to obtain such licenses.  In the event Franchisee fails, after a good faith effort, to obtain any and all such required liquor licenses prior to or simultaneous with the opening of the
Restaurant, then, at the option of Franchisor, this Agreement may be terminated  immediately by Franchisor upon written notice to Franchisee, in which event, Franchisor shall refund to Franchisee, without interest, the Initial Fee, less (i) any
application fees and/or franchise fee deposit allocated to the Initial Fee and (ii) any expenses incurred and damages sustained by Franchisor in connection with its performance hereunder prior to the date of such termination.  After obtaining the
necessary state and/or local liquor licenses, Franchisee shall thereafter comply with all applicable laws and regulations relating to the sale of liquor on the Premises.  If, during any twelve-month period during the term of this Agreement, Franchisee is
prohibited for any reason from selling liquor on the Premises for more than thirty days because of a violation or violations of state or local liquor laws, then, at the option of Franchisor, this Agreement may be terminated immediately by Franchisor upon
written notice to Franchisee.
4.14No Waiver.

  Franchisee and the Principal Shareholders acknowledge that nothing contained herein constitutes Franchisor's agreement to accept any payments after same are due or a commitment by Franchisor to extend credit to or otherwise finance
Franchisee's operation of the Restaurant.  Further, Franchisee and the Principal Shareholders acknowledge that Franchisee's or the Principal Shareholders' failure to pay all amounts when due shall constitute grounds for termination of this Agreement, as
herein provided.

ARTICLE V

PROPRIETARY MARKS
5.1Representations of Franchisor.

  Franchisor represents with respect to the Proprietary Marks that:
5.1.1

Franchisor has the full and exclusive right to the use of the Proprietary Marks, within the Protected Territory for restaurant and bar services and will take all reasonable steps to preserve and protect its ownership and validity in
and to the Proprietary Marks in the Protected Territory; 
5.1.2

Franchisor will use and permit Franchisee and other franchisees of Franchisor to use the Proprietary Marks only in accordance with the Concept in order to protect the goodwill associated with and symbolized by the Proprietary Marks; and

5.1.3

In the event that Franchisee is precluded from operating the Restaurant within the Protected Territory because Franchisor determines that a third person has acquired rights under the law of any state in such mark, which so precludes
Franchisee, Franchisor agrees to assist Franchisee, at Franchisee's request, in locating an alternative site for the Restaurant.  In the event that an alternative site cannot be located within ninety days of Franchisee's request, Franchisor shall repay
the Initial Fee to Franchisee.  Franchisee and the Principal Shareholders agree that the remedies set forth in this subsection and in Subsection 5.2.5 below, shall constitute their sole remedies against Franchisor in such event.

5.2Agreement of Franchisee.

  With respect to Franchisee's use of the Proprietary Marks pursuant to this Agreement, Franchisee agrees that:
5.2.1

Franchisee shall use only the Proprietary Marks designated by Franchisor and only in the manner authorized and permitted by Franchisor.  Franchisee shall use the Proprietary Marks only in connection with the operation of the Restaurant;

5.2.2

During the term of this Agreement, Franchisee shall identify itself as the owner of the Restaurant in conjunction with any use of the Proprietary Marks, including, but not limited to, on invoices, order forms, receipts and contracts,
as well as at such conspicuous locations on the Premises as Franchisor shall designate in writing.  Any identification which specifies Franchisee's name shall be followed by the term "A Franchisee of Garfield's Restaurant & Pub" or such other
identification as shall be approved by Franchisor, if used in connection with the Restaurant;
5.2.3

Franchisee's right to use the Proprietary Marks is limited to such uses as are authorized under this Agreement, and any unauthorized use thereof shall constitute an infringement of Franchisor's rights in the Proprietary Marks or
otherwise;
5.2.4

Franchisee shall not use the Proprietary Marks to incur any obligation or indebtedness on behalf of Franchisor;
5.2.5

In the event that litigation involving the Proprietary Marks is instituted or threatened against Franchisee, Franchisee shall promptly notify Franchisor and shall cooperate fully in defending or settling such litigation.  Franchisee
agrees that Franchisor, upon notification to Franchisee, may elect to assume control over, and responsibility for, any litigation instituted against Franchisee involving the Proprietary Marks.  In the event of any such litigation, Franchisor shall bear
all costs of such litigation and should Franchisee be found liable for damages or penalties in connection with any such litigation, Franchisor shall indemnify and hold Franchisee harmless from such damages or penalties to the extent such actions or
omissions for which Franchisee was held liable were conducted or performed in good faith and not in a manner negligently or recklessly giving rise to such liability.  Furthermore, Franchisee shall execute any documents deemed necessary by Franchisor or
its counsel to obtain protection for the Proprietary Marks or to maintain their continued validity and enforceability.  Should Franchisee be forced to remove, replace or alter any signs, menus, advertising, paper goods or other items by reason of
litigation in connection with the Proprietary Marks, Franchisor agrees to reimburse Franchisee for the reasonable costs of such removal, replacement or alteration;
5.2.6

Franchisee shall require all advertising and promotional materials, signs, decorations, paper goods (including forms, business cards, labels, boxes, envelopes and stationery), and other items designated by Franchisor to bear the
Proprietary Marks in the form, color, location and manner required by Franchisor;
5.2.7

No item of merchandise, equipment, supplies, furnishings or utensils bearing the Proprietary Marks shall be used or sold in, upon, or on behalf of the Restaurant unless the same shall have been first submitted to and approved in
writing by Franchisor as meeting Franchisor's existing standards of quality and utility;
5.2.8

Any Proprietary Marks subsequently provided to Franchisee for use within the Concept or the System shall enjoy the same protection as the Proprietary Marks herein used; 
5.2.9

Franchisor is party to an agreement with United Feature Syndicate, Inc. ("UFS"), the trademark owner of the GARFIELD THE CAT cartoon strip characters.  This agreement delineates the respective rights of Franchisor and UFS in the
name GARFIELD.  Under such agreement, Franchisor has agreed that neither Franchisor nor its franchisees will make any use of the GARFIELD THE CAT character or other characters from that comic strip in connection with the restaurant and/or bar services
rendered by Franchisor and its franchisees.  Franchisee and the Principal Shareholders acknowledge their understanding that such prior agreement between Franchisor and UFS is binding upon Franchisee and the Principal Shareholders, and Franchisee and the
Principal Shareholders agree to comply with the restrictions contained in such agreement; particularly the restriction prohibiting usage by franchisees of Franchisor of the GARFIELD THE CAT character or any other characters from that comic strip in
connection with any franchised restaurant of Franchisor; and 
5.2.10

Franchisee shall not use any of the Proprietary Marks as part of an electronic mail address, or on any sites on the Internet or World Wide Web and shall not use or register any of the Proprietary Marks as a domain name on the Internet.

5.3Acknowledgments of Franchisee.

  Franchisee expressly understands and acknowledges that:
5.3.1

Franchisor has the exclusive right and interest in and to the Proprietary Marks and the goodwill associated with and symbolized by the Proprietary Marks, and the Proprietary Marks will serve to identify the Concept and those
restaurants within the System;
5.3.2

Franchisee shall not directly or indirectly contest or conflict with the validity of Franchisor's ownership of the Proprietary Marks.  Franchisee's use of the Proprietary Marks pursuant to this Agreement does not give Franchisee any
ownership interest or other interest in or to the Proprietary Marks, except the franchise granted herein;
5.3.3

Any and all goodwill arising from Franchisee's use of the Proprietary Marks in the Restaurant under the Concept shall inure solely and exclusively to Franchisor's benefit, and upon expiration or termination of this Agreement and the
franchise herein granted, no monetary amount shall be assigned as attributable to any goodwill associated with Franchisee's use of the Concept or the Proprietary Marks;
5.3.4

The right and license of the Proprietary Marks granted hereunder to Franchisee is nonexclusive (with the exception of Franchisee's rights in the Protected Territory), and Franchisor thus has and retains the rights among others:
(i)To grant additional franchises for Proprietary Marks, and to use the Proprietary Marks in connection with selling food and other products;

(ii)To develop and establish other systems for the same Proprietary Marks or similar proprietary marks, and grant licenses or franchises thereto without providing any rights therein to Franchisee; and
5.3.5

Franchisor reserves the right to substitute different Proprietary Marks for use in identifying the Concept, the System and the business operating thereunder, if Franchisor can no longer use, license or franchise the use of the
Proprietary Marks.

ARTICLE VI

CONFIDENTIAL OPERATIONS
6.1Compliance with Manual Standards.

  In order to protect the reputation and goodwill of Franchisor and to maintain uniform standards of operation, Franchisee shall conduct its business in accordance with the Manual.  Franchisee will receive on loan from Franchisor one
copy of the Manual for the Restaurant.  Franchisee shall return to Franchisor the Manual and any other manuals created or approved for use in the operation of the Restaurant, as well as any unauthorized copies of the foregoing materials, upon termination
of this Agreement.
6.2Confidentiality of Manual.

  Franchisee shall at all times treat the Manual, any other manuals created or approved for use in the operation of the Restaurant, and the information contained therein, as confidential, and shall use all reasonable efforts to
maintain such information as secret and confidential.  Franchisee shall not at any time copy, duplicate, record, or otherwise reproduce the foregoing materials, in whole or in part, nor otherwise make the same available to any unauthorized person.
6.3Property of Franchisor.

  The Manual shall at all times remain the sole property of Franchisor.  Franchisor may from time to time revise the contents of the Manual, and Franchisee and the Principal Shareholders expressly agree to comply with each new or
changed standard.
6.4Maintenance of Manual at Restaurants.

  Franchisee shall, at all times, maintain the copy of the Manual at the Restaurant and insure that the Manual is kept current and up-to-date, and in the event of any dispute as to the contents of the Manual, the terms of the master
copy of the Manual maintained by Franchisor at Franchisor's home office shall be controlling.

ARTICLE VII

CONFIDENTIAL INFORMATION
7.1Proprietary Information.

  Franchisee and the Principal Shareholders acknowledge that, over the term of this Agreement, they are to receive proprietary information which Franchisor has developed over time at great expense, including, but not limited to,
information regarding the System, the Concept, methods of site selection, marketing and public relations methods, product analysis and selection, recipes for preparing, cooking and serving food and beverages, and service methods and skills relating to the
development and operation of Restaurants.  They further acknowledge that this information, which includes, but is not necessarily limited to, that contained in the Manual, is not generally known in the industry and is beyond their own present skills and
experience, and that to develop it themselves would be expensive, time consuming and difficult.  Franchisee and the Principal Shareholders further acknowledge that Franchisor's information provides a competitive advantage and will be valuable to them in
the development of their business, and that gaining access to it is therefore a primary reason why they are entering into this Agreement.  Accordingly, Franchisee and the Principal Shareholders agree that Franchisor's information, as described above,
which may or may not be "trade secrets" under prevailing judicial interpretations or statutes, is private and valuable, and constitutes trade secrets belonging to Franchisor; and in consideration of Franchisor's confidential disclosure to them of these
trade secrets, Franchisee and the Principal Shareholders agree as follows (subject to the provisions of the Development Agreement and any other franchise agreement between Franchisor, Franchisee, and the Principal Shareholders):
7.1.1

During the term of this Agreement, neither Franchisee nor any Principal Shareholder, for so long as such Principal Shareholder owns an interest in Franchisee, may, without the prior written consent of Franchisor, directly or indirectly
engage in, or acquire any financial or beneficial interest (including any interest in corporations, partnerships, limited liability companies, trusts, unincorporated associations or joint ventures) in, advise, help, guarantee loans or make loans to, any
restaurant business whose menu or method of operation is similar, in the reasonable opinion of Franchisor, to that employed by restaurant units within the System which is either (i) located in the "Territory" as defined in the Development Agreement, (ii)
located in the Designated Market Area (as defined and established by Nielsen Media Research Company in its 1998-1999 map, a copy of which will be maintained by the Franchisor at the address set forth in Section 17.4) of any restaurant developed pursuant to the Development Agreement, (iii) located within a five-mile radius of any restaurant unit (whether owned by Franchisor or operated by a franchisee of Franchisor) within the System, or (iv)
determined by Franchisor, exercising reasonable good faith judgment, to be a direct competitor of the System;
7.1.2

Neither Franchisee, for two years following the termination of this Agreement, nor any Principal Shareholder, for two years following the termination of all of his interest in Franchisee or the termination of this Agreement, whichever
occurs first, may directly or indirectly engage in, or acquire any financial or beneficial interest (including any interest in corporations, partnerships, limited liability companies, trusts, unincorporated associations or joint ventures) in, advise,
help, guarantee loans or make loans to, any restaurant business whose menu or method of operation is similar, in the reasonable opinion of Franchisor, to that employed by restaurant units within the System which is located either (i) in the "Territory" as
defined in the Development Agreement, or if there is no Development Agreement, then in the Protected Territory (ii) in the Designated Market Area (as defined and established by Nielsen Media Research Company in its 1998-1999 map, a copy of which will be
maintained by the Franchisor at the address set forth in Section 17.4) of any restaurant developed pursuant to the Development Agreement, (iii) within a five-mile radius of any restaurant unit (whether owned by Franchisor or operated by a franchisee of Franchisor) within the System, or (iv) within any
area for which an active, currently binding development agreement has been granted by Franchisor to another franchisee as of the date of the termination; and
7.1.3

Neither Franchisee nor any Principal Shareholder shall at any time (i) appropriate or use the Concept, or any portion thereof, in any restaurant business which is not within the System, (ii) disclose or reveal any portion of the
Concept or the System to any person, other than to Franchisee's employees at the Restaurant as an incident of their training, (iii) acquire any right to use the Proprietary Marks, except in connection with the operation of the Restaurant, or (iv)
communicate, divulge or use for the benefit of any other person or entity any confidential information, knowledge or know-how concerning the methods of development or operation of a restaurant utilizing the Concept and the System, which may be
communicated by Franchisor in connection with the Restaurant.

7.2Injunctive Relief.

  Franchisee and Principal Shareholders agree that the provisions of this Article VII are and have been a primary inducement to Franchisor to enter into this Agreement, and that, in the event of breach thereof, Franchisor would
be irreparably injured and would be without adequate remedy at law.  Therefore, in the event of a breach, or a threatened or attempted breach, of any of such provisions, Franchisor shall be entitled, in addition to any other remedies which it may have
hereunder or in law or in equity (including without limitation the right to terminate this Agreement), to a preliminary and/or permanent injunction and a decree for specific performance of the terms hereof without the necessity of showing actual or
threatened damage, and without being required to furnish a bond or other security.
7.3Investments in Publicly Traded Companies.

  The restrictions contained in Subsections 7.1.1 and 7.1.2 above shall not apply to ownership of less than 2% of the shares of a company whose shares are listed and traded on a national securities exchange, if such
shares are owned for investment only and are not owned as an officer, director, employee, or consultant of such publicly traded company.
7.4Reforming Provisions.

  If any court or other tribunal having jurisdiction to determine the validity or enforceability of this Article VII determines that it would be invalid or unenforceable as written, then the provisions hereof shall be deemed to be
modified or limited to such extent or in such manner as necessary for such provisions to be valid and enforceable to the greatest extent possible.
7.5Confidentiality Agreements.

  Franchisee shall require its general manager and each of its managers to execute a confidentiality agreement in the form attached hereto as Appendix A.  Franchisee shall be responsible for compliance of its employees with the
agreements identified in this Article VII.  Furthermore, at the request of Franchisor, Franchisee shall provide Franchisor with executed confidentiality agreements from all executive officers, directors and holders of a beneficial interest of 10% or more in Franchisee.  With
respect to each person who becomes associated with Franchisee in one of the capacities enumerated above subsequent to execution of this Agreement, Franchisee, at the request of Franchisor, shall require and obtain executed confidentiality agreements from
such persons and promptly provide Franchisor with copies of such agreements.  In no event shall any person enumerated be granted access to any confidential aspect of the Concept, the System, the Manual or the Restaurant prior to execution of a
confidentiality agreement.

ARTICLE VIII

USE OF NAME; ADVERTISING
8.1Advertising Under Trade Name.

  During the term of this Agreement, Franchisee agrees to advertise under the trade name "Garfield's Restaurant & Pub" or similar variations thereof, and to diligently promote and make every reasonable effort to steadily increase
the business of the Restaurant by proper use of advertising media.  
8.2National Advertising and Marketing Program.

  Franchisee shall  monthly remit 0.5% of the monthly Gross Receipts for the Restaurant to the Garfield's National Advertising and Marketing Program (the "Program"), due and payable with the Continuing Royalty Fee.  "Gross
Receipts" shall be as defined in Subsection 2.1.2 of this Agreement.  The Program will be maintained and administered as follows:
8.2.1

Franchisor shall direct all advertising and marketing programs with sole discretion over the materials and media used in such programs and the placement and allocation thereof.  Franchisor may delegate such authority in writing to one
or more of its franchisees, and may terminate the delegation at any time in its sole discretion.  Franchisee agrees and acknowledges that the Program is intended to maximize general public recognition and acceptance of the Proprietary Marks for the
benefit of those employing the Concept within the advertising coverage area and that Franchisor and its delegate(s) undertake no obligation in administering the Program to make expenditures for Franchisee which are equivalent or proportionate to its
remittance, or to ensure that any particular franchisee benefits directly or pro rata from the placement of advertising;
8.2.2

Franchisee agrees that the funds may be used to meet any and all costs of maintaining, administering, directing and implementing advertising (including, without limitation, the cost of preparing and conducting television, radio,
magazine and newspaper advertising campaigns, promotional and merchandising programs and other public relations and marketing research activities; employing advertising agencies, which may be affiliated with Franchisor, to assist therein).  All sums paid
by Franchisee to the Program shall be maintained in a separate account from the other funds of Franchisor and shall not be used to defray any of Franchisor's general operating expenses, except for administrative costs and overhead, as Franchisor may incur
in activities reasonably related to the administration or direction of the Program and advertising programs;
8.2.3

It is anticipated that most contributions to the Program shall be incurred for advertising, market research and promotional purposes during Franchisor's fiscal year within which contributions are made.  If, however, excess amounts
remain in the Program at the end of such fiscal year, all expenditures in the following fiscal year(s) shall be made first out of any current interest or other earnings of the Program, next out of any accumulated earnings, and finally from principal.
Franchisor may issue to its franchisees credit memo while excess amounts are outstanding;
8.2.4

Although Franchisor intends to maintain the Program continually, Franchisor maintains the right to terminate the Program.  The Program shall not be terminated, however, until all monies in the Program have been expended for advertising
and promotional purposes or refunded to its franchisees without interest; and
8.2.5

An accounting of the operation of the Program shall be prepared annually and shall be made available to Franchisee upon request.  Franchisor reserves the right, at its option, to require that such annual accounting include an audit of
the operation of the Program prepared by an independent certified public accountant selected by Franchisor and prepared at the expense of the Program.

8.3Local Advertising.

  Franchisee shall incur and pay monthly for electronic and print media (or such other promotional campaign materials as Franchisor may approve) an amount equal to 3.0% of its Gross Receipts for the preceding month (or such shorter
period as it has been open).  Upon written request of Franchisee, Franchisor may, at its discretion, reduce this requirement for a particular calendar year.  Franchisee acknowledges that it has primary responsibility for the promotion, advertising and
marketing of the Restaurant, and that, unless otherwise agreed in writing, such responsibility is neither altered nor diminished by required contributions to a fund or funds established by Franchisor for the promotion of the Concept and the System.
8.4Cooperative Advertising Campaigns.

  From time to time, Franchisor may designate a local, regional or national advertising coverage area in which at least two or more franchised restaurants of Franchisor or Franchisor-owned restaurants are located for purposes of
developing short-term, cooperative advertising campaigns.  Franchisee agrees to participate in and contribute its share to such campaigns.  The cost of the campaign shall be allocated among such franchised restaurants of Franchisor and Franchisor-owned
restaurants within the advertising coverage area.  Each franchisee's share shall be in proportion to the ratio of its sales to aggregate sales of all such franchised restaurants of Franchisor and Franchisor-owned restaurants within the advertising
coverage area during the quarter preceding the commencement of the campaign; provided, that the contributions shall not exceed 3.5% of Franchisee's Gross Receipts for such quarter.  Contributions to such campaigns will be credited towards the advertising
expenditures required under Section 8.2, and then towards the advertising fee required under Section 8.3.  At the time a campaign is submitted, Franchisor shall submit a list to Franchisee of all franchised restaurants and Franchisor-owned restaurants within the
advertising coverage area.
8.5Opening Promotions.

  Franchisee shall submit to Franchisor, for Franchisor's approval, an advertising campaign plan relating to the promotion of the opening of the Restaurant which is sufficient to meet the needs of the relevant market.  The Manual
contains a Press Release kit to assist Franchisee in this regard.  Franchisee shall conduct the approved advertising campaign and make all expenditures for advertising to promote the opening of the Restaurant no later than sixty days after the Restaurant
opens for business.  Franchisor will reimburse 50% of Franchisee's out-of-pocket opening advertising expenditures up to a maximum of Two Thousand Five Hundred Dollars ($2,500), if Franchisee meets the following criteria: 
(i)Franchisee's opening advertising expenditures are made within sixty days after the opening of the Restaurant;

(ii)Franchisee submits to Franchisor within one hundred twenty days after the opening of the Restaurant documentation for the opening advertising expenditures, such as paid invoices from suppliers of goods or services evidencing
expenditure on the opening advertising promotion; and

(iii)Franchisee's opening advertising expenditures are made pursuant to the approved advertising campaign plan and in accordance with the "Grand Opening Reimbursement Program Policy Guidelines" set forth in the Manual.

8.6Prior Approval of Franchisor.

  No coupon, promotional campaign, design, advertisement, sign, or form of publicity, including the form, color, number, location and size of the same, shall be used by Franchisee unless such is first submitted to, and approved by,
Franchisor in writing.  Without limiting the generality of the foregoing sentence, such advertising materials shall include without limitation the use of the Internet and Websites established and maintained by the Franchisee.  Upon written notice by
Franchisor, Franchisee agrees to remove, shut down or modify, at the discretion of Franchisor, any advertising materials (including without limitation Websites) found to be objectionable by Franchisor.  If said materials are not removed, shut down or
modified within five days after such notice, Franchisor, or its authorized agents, may at any time enter the Restaurant or upon the Premises or elsewhere, remove such objectionable signs or advertising media, or take any other action required to remove
such advertising, and may keep or destroy such signs or other media without paying therefor, and without incurring liability to Franchisee for trespass or other tort.

ARTICLE IX

INSURANCE
9.1Procurement of Policies.

  Franchisee shall procure, at Franchisee's expense, prior to the commencement of any operations under this Agreement, and maintain in full force and effect during the term of this Agreement, an insurance policy or policies protecting
Franchisee and Franchisor, and their respective officers, directors, partners and employees, against any loss, liability, personal injury, death, property damage, or expense whatsoever arising or occurring upon or in connection with the Restaurant and the
Premises, as well as such other insurance applicable to such other special risks as Franchisor may reasonably require for its own and Franchisee's protection.
9.2Coverage and Amounts.

  Such policy or policies shall be written by an insurance company satisfactory to Franchisor in accordance with standards and specifications set forth in the Manual or otherwise in writing, and shall include, at a minimum, the following
:

	
KIND OF INSURANCE
	
MINIMUM LIMITS OF LIABILITY

	
Worker's Compensation
	
Statutory

	
Employer's Liability
	
$500,000 bodily injury by accident

$500,000 bodily injury by disease

	
Employment Practices Liability
	
$500,000 each occurrence

	
Comprehensive General Public

Liability, including Product

Liability, Injury and

Liquor Liability

	
$1,000,000 each person

$1,000,000 each occurrence

$2,000,000 aggregate

	
Fire, Vandalism and Extended

  Coverage

	
Full replacement value

	
Umbrella Liability Insurance

	
$10,000,000

	
Other Required by Law
	
Lawful Limits

Except for worker's compensation, Franchisor shall be named as an additional insured in all such policies.  Franchisor may require such additional coverage (in either kinds or amounts) as it determines to be reasonable under the
circumstances.
9.3Additional Coverage.

  Franchisee must also carry business interruption insurance written by an insurance company satisfactory to Franchisor.  In connection with any construction, renovation, refurbishing, or remodeling of the Restaurant, Franchisee shall
require the general contractor to maintain, with a reputable insurer, comprehensive general liability insurance (with builder's risk, product liability, completed operations and independent contractors' coverage) in at least the amount of Five Hundred
Thousand Dollars ($500,000), with Franchisor named as an additional insured, as well as worker's compensation, employer's liability insurance and such other insurance as may be required by law.   Except for worker's compensation, Franchisor shall be named
as an additional insured in all such policies.
9.4Obligation Not Limited.

  Franchisee's obligation to obtain and maintain the foregoing policy or policies in the amounts specified shall not be limited in any way by reason of any insurance which may be maintained by Franchisor, nor shall Franchisee's
performance of that obligation relieve it of liability under the indemnity provisions set forth in Section 16.2 of this Agreement.
9.5Evidence of Insurance.

  Upon obtaining the insurance required by this Agreement, and on each policy renewal date thereafter, Franchisee shall promptly submit evidence of satisfactory insurance and proof of payment therefor to Franchisor together with, upon
request, copies of all policies and policy amendments.  The evidence of insurance shall include a statement by the insurer that the policy or policies will not be canceled or materially altered without at least thirty days' prior written notice to
Franchisor.
9.6Authority of Franchisor to Procure Insurance.

  Should Franchisee, for any reason, fail to procure or maintain the insurance required by this Agreement, as revised from time to time by the Manual or otherwise in writing by Franchisor for all franchisees, Franchisor shall have the
right and authority (without, however, any obligation to do so) immediately to procure such insurance and to charge same to Franchisee, which charges, together with a reasonable fee for Franchisor's expenses in so acting, shall be payable by Franchisee
immediately upon notice.

ARTICLE X

TRANSFERS OF INTEREST
10.1Transfer by Franchisor.

  Franchisor shall have the right to transfer or assign all or any part of its rights or obligations herein to any person or legal entity.
10.2Transfer by Franchisee.
10.2.1Conditions on Transfer.

  Franchisee understands and acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and the Principal Shareholders, and Franchisor has granted this franchise in reliance on Franchisee's and
Principal Shareholders' business skills, financial capacity, and personal character.  Accordingly, Franchisee shall neither sell, assign, transfer, pledge, mortgage or otherwise encumber this franchise, the Restaurant, the Premises, or this Agreement or
any right or interest herein, nor permit any such assignment, transfer or encumbrance to occur by operation of law without the prior written consent of Franchisor.  Franchisee may not, without the prior written consent of Franchisor, fractionalize any of
the rights of Franchisee granted pursuant to this Agreement.  Franchisee shall not permit any person or persons (if acting as a group) owning an equity interest in excess of 20% in Franchisee to sell, assign, transfer, fractionalize, pledge, mortgage or
otherwise encumber his or their equity interest in Franchisee, nor permit any such assignment, transfer or encumbrance to occur by operation of law without the prior written consent of Franchisor.  For purposes of this Agreement, a merger, consolidation,
conveyance of the properties and assets of Franchisee substantially as an entirety to any person, any sale (or series of sales) of Franchisee's equity that reduces the equity ownership of the prior, remaining shareholders by 20% or more during the term of
this Agreement, or any reorganization of Franchisee shall be deemed to be a transfer subject to the provisions of this Section 10.2.  The assignment of any interest, other than as provided in this Agreement, any purported assignment or transfer, by operation of law or otherwise, not having the written consent of Franchisor required by this Section 10.2 shall
be null and void and shall constitute a material breach of this Agreement, for which Franchisor may then terminate without opportunity to cure pursuant to Section 11.2 of this Agreement.
10.2.2Consent.

  Franchisor shall not unreasonably withhold its consent to a transfer of any interest in this Agreement, the Restaurant, the Premises or Franchisee; provided, however, that if a transfer, alone or together with other previous,
simultaneous, or proposed transfers, would have the effect of transferring Franchisee's interest in this Agreement, the Restaurant, the Premises or a controlling interest in Franchisee, Franchisor may, in its sole discretion, require as a condition of its
approval the satisfaction of any or all of the following conditions set forth below.  As the term is used in this Section 10.2, "Transferor" shall include Franchisee and all Principal Shareholders in case of a transfer by Franchisee, and in case of a transfer by one or more Principal Shareholders, the term shall include such Principal Shareholders and
Franchisee:
(i)All of Transferor's accrued monetary obligations to Franchisor and all other outstanding obligations related to the Restaurant or any other franchised restaurant granted to Franchisee from Franchisor shall have been satisfied;

(ii)Transferor is not in default of any provisions of this Agreement, any amendment hereof or successor hereto, or the Development Agreement, if applicable, or any other agreement between Transferor and Franchisor or its
subsidiaries and affiliates;

(iii)Transferor shall have executed a general release in a form satisfactory to Franchisor, of any and all claims against Franchisor and its officers, directors, shareholders and employees, in their corporate and individual
capacities, including, without limitation, claims arising under all applicable laws, rules and ordinances;

(iv)The transferee shall enter into a written agreement, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Transferor's obligations under this Agreement, or if the obligation of Franchisee were
guaranteed by the transferor, the transferee shall guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;

(v)The transferee shall demonstrate to Franchisor's satisfaction that transferee and its owners and employees meet Franchisor's managerial and business standards; possess a good moral character, business reputation and credit
rating; have the aptitude and ability to conduct the Restaurant (as may be evidenced by prior related business experience or otherwise); and have adequate financial resources and capital to operate the Restaurant;

(vi)At Franchisor's option, Franchisee or the transferee, as the case may be, shall execute (and/or, upon Franchisor's request, shall cause all interested parties to execute), for a term ending on the expiration date of this
Agreement, the standard form franchise agreement then being offered to new System franchisees and other ancillary agreements as Franchisor may require for a franchised restaurant of Franchisor, which agreements shall supersede this Agreement in all
respects and the terms of which agreements may differ from the terms of this Agreement;

(vii)At its own expense, the transferee shall upgrade, or cause to be upgraded, the Restaurant to conform to the then-current standards and specifications of System restaurants, and shall complete the upgrading and other
requirements within the time specified by Franchisor;

(viii)Transferor shall remain liable for all obligations of the Restaurant prior to the effective date of transfer and shall execute any and all instruments reasonably requested by Franchisor to evidence such liability; and

(ix)Transferee shall have paid to Franchisor a transfer fee equal to 20% of the then current initial fee charged to franchisees of Franchisor for the training, supervision, administrative costs, overhead and other Franchisor
expenses incurred in connection with the transfer.
10.2.3No Security Interest. 

  In addition to the requirement to obtain Franchisor's consent as required by Subsection 10.2.1 above, Franchisee shall not grant a mortgage, security interest or other encumbrance in the Restaurant, the Premises or in any of
its assets unless the mortgagee, secured party or similar party agrees that in the event of any default by Franchisee under any documents related to the encumbrance, Franchisor shall have the right and option to purchase the rights of the mortgagee,
secured party or similar party upon payment of all sums then due to such party.

10.3Right of First Refusal.
10.3.1Right.

  If Franchisee or the Principal Shareholders (collectively the "Seller"), desires to accept any bona fide offer from a third party to purchase an interest in this Agreement, the Restaurant, the Premises or an equity interest in
Franchisee, as the case may be, the Seller shall notify Franchisor in writing of each such offer by a full and complete statement of the terms and conditions including the considerations therefor.  Franchisor shall have the right and option, exercisable
within thirty days after receipt of such written notification, to send written notice to the Seller that Franchisor or its assignee intends to purchase the Seller's interest on the same terms and conditions offered by the third party.  Seller shall
promptly notify Franchisor of any modification of the aforementioned terms and conditions, which modification shall constitute a modification of Franchisor's option subject to the provision of Subsection 10.3.2 and shall commence a new thirty day option period.  In the event that Franchisor or its assignee elects to purchase the Seller's interest, the closing on such purchase must occur within sixty days from the date of notice to the
Seller of the election to purchase by Franchisor.  Failure of Franchisor to exercise the option afforded by this subsection shall not constitute a waiver of any other provision of this Agreement, including all of the requirements of this Article X, with respect to a proposed transfer.
10.3.2Consideration.

  In the event the consideration, terms and/or conditions offered by the Seller are such that Franchisor may not reasonably be required to furnish the same consideration, terms and/or conditions, then Franchisor or its assignee may
purchase such interest proposed to be sold for the reasonable equivalent in cash.  If the parties hereto cannot agree within a reasonable time on the reasonable equivalent in cash of the consideration, terms and/or conditions offered by the Seller,
Franchisor and Franchisee shall select an independent appraiser whose determination of a reasonable equivalent in cash shall be binding.  If Franchisor and Franchisee cannot agree on an independent appraiser in a reasonable time, an independent appraiser
shall be designated by Franchisor and Franchisee, and the two independent appraisers so designated shall select a third independent appraiser.  The determination of a reasonable equivalent in cash by a majority of the appraisers so chosen shall be
binding.  Franchisor and Franchisee shall bear the costs of the appraisals on an equal basis.

10.4Transfer Upon Death or Mental Incompetency.

  Upon the death or mental incompetency of Franchisee or a Principal Shareholder, the personal representative of such Principal Shareholder shall transfer his or her interest to a third party approved by Franchisor within six months
after such death or mental incompetency.  Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to the same conditions as any inter vivos transfer as set forth in this Article X.  However, in the case of transfer by devise or inheritance, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Article X, the personal
representative of the deceased shall have six months to dispose of the deceased's interest in this Agreement, the Restaurant, the Premises or Franchisee, which disposition shall be subject to all the terms and conditions for transfers contained in this Article X.  If the interest is not disposed of within such time, Franchisor may terminate this Agreement.
10.5Non-Waiver of Claims.

  Franchisor's consent to a transfer of any interest in the franchise granted herein, this Agreement, the Restaurant, the Premises, or any equity interest in Franchisee shall not constitute a waiver of any claims it may have against
the transferring party, nor shall it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of this Agreement or the agreement(s) executed by any transferee.
10.6Permitted Assignments.

  Notwithstanding anything to the contrary contained herein, Franchisee or any Principal Shareholders may assign its or their interest in this Agreement the Restaurant, the Premises, or in Franchisee to other existing shareholders of
Franchisee or to such person's spouse, child or parent; provided, however, that in each case, any such assignments, individually or in the aggregate, will not result in a change in "control" of Franchisee.  For purpose of this section, "control" shall
mean possession of the power, directly or indirectly, through stock ownership or otherwise, to direct the management and policies of Franchisee.  A Principal Shareholder may also transfer any interests in Franchisee to a revocable living trust created by
such Principal Shareholder, to a family limited partnership (or similar family entity), so long as the Principal Shareholder or his or her spouse is the general partner of such partnership, and/or to an irrevocable trust solely for the benefit of the
Principal Shareholder's lineal descendants.  Any such permitted assignments shall be subject to all terms and conditions of this Agreement, including, without limitation, restrictions on subsequent assignment or sale of ownership.

ARTICLE XI

DEFAULT AND TERMINATION
11.1Termination by Franchisor Without Notice.

  Franchisee and the Principal Shareholders shall be deemed to be in default under this Agreement, and all rights granted herein shall automatically terminate without notice to Franchisee, if Franchisee or any Principal Shareholder
become insolvent or generally fails to pay, or admits in writing its inability to pay, debts as they become due, or Franchisee or any Principal Shareholder applies for, consents to, or acquiesces in the appointment of, a trustee, receiver or other
custodian for Franchisee or any Principal Shareholder or any of its or their property or makes a general assignment for the benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for Franchisee or any Principal Shareholder, or for a substantial part of its or their property and is not discharged within thirty days; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or
insolvency law, or any dissolution or liquidation proceeding, is commenced in respect of Franchisee or any Principal Shareholders and, if such case or proceeding is not commenced by Franchisee or any Principal Shareholder, it is consented to or acquiesced
in by Franchisee or any Principal Shareholder or remains for thirty days undismissed; or Franchisee or any Principal Shareholder take any action to authorize, or in furtherance of, any of the foregoing; or Franchisee's Gross Receipts for any rolling
period of twelve calendar months are less than $600,000.00.
11.2Termination by Franchisor with Notice.

  Franchisee and the Principal Shareholders shall be deemed to be in default, and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder without affording Franchisee or the Principal Shareholders any
opportunity to cure the default, effective immediately upon receipt of notice by Franchisee, upon the occurrence of any of the following events:
11.2.1

If Franchisee at any time ceases to operate or otherwise abandons the Restaurant; provided, however, that if  Franchisee ceases to operate the Restaurant due to a casualty loss for a period of less than six consecutive months,
Franchisee will not be presumed to have abandoned the Restaurant;
11.2.2

If Franchisee, any Principal Shareholder, or any officer, director, or manager of Franchisee is convicted of or pleads nolo contendere to a felony, a crime involving moral turpitude, or any other crime or offense that is reasonably
likely, in the sole opinion of Franchisor, to adversely affect the System, the Concept, the Proprietary Marks, the goodwill associated therewith, or Franchisor's interest therein;
11.2.3

If Franchisee or any Principal Shareholder purports to transfer any rights or obligations under this Agreement, the Restaurant, the Premises or any interest in Franchisee to any third party without Franchisor's prior written consent,
contrary to the terms of Article X of this Agreement;
11.2.4

If Franchisee or a Principal Shareholder fails to comply in any respect with the non-competition agreements in Article XIII hereof as to any person or if Franchisee discloses or divulges, contrary to Articles VI or VII
 hereof, the contents of the Manual or other trade secret or confidential information provided to Franchisee or to the Principal Shareholder by Franchisor;
11.2.5

If an approved transfer is not effected within a reasonable time following a death or mental incompetency as required by Section 10.4 hereof;
11.2.6

If Franchisor discovers that Franchisee or any Principal Shareholder made a material misrepresentation or omitted any material fact in the information that was furnished to Franchisor in connection with this Agreement;
11.2.7

If any part of this Agreement relating to the payment of fees to Franchisor, or the preservation of any of Franchisor's Proprietary Marks or other trade names, service marks, trademarks, trade secrets or secret formulae licensed or
disclosed hereunder is declared invalid or unenforceable for any reason; or
11.2.8

If Franchisee or a Principal Shareholder, after curing a default under Section 11.3, engages in the same default whether or not such default is cured after notice, or Franchisee or Principal Shareholder is repeatedly in default
under Section 11.3 hereof for failure substantially to comply with any of the requirements imposed by this Agreement, whether or not cured after notice. 

11.3Termination by Franchisor with Notice and Opportunity to Cure.

 Except as provided in Sections 11.1 and 11.2 of this Agreement, Franchisee and/or a Principal Shareholder shall be deemed to be in default hereunder for any failure to comply with any of the requirements imposed by this
Agreement, as it may from time to time reasonably be supplemented by the Manual, or to carry out the terms of this Agreement in good faith.  After receipt from Franchisor of a written notice of termination, Franchisee and the Principal Shareholders shall
have either ten days (for defaults Franchisor considers to relate to the financial obligations of the Franchisee or the operation of the Restaurant) or sixty days (for all other situations) within which to remedy any default under this Agreement and to
provide evidence thereof to Franchisor.  Franchisor shall specify in the notice the applicable cure period.  If any such default is not cured within the cure period, or such longer period as applicable law may require or as agreed to in writing by the
Franchisor, this Agreement shall terminate without further notice to Franchisee or the Principal Shareholder(s) effective immediately upon the expiration of the applicable cure period.
11.4Termination by Franchisee.

  In the event of any material breach by Franchisor of this Agreement, Franchisor shall have sixty days after its receipt from Franchisee of a written notice of intent to terminate within which to remedy such default and to provide
evidence thereof to Franchisee.  If such default is not cured within that time, or such longer period as applicable law may require, this Agreement shall terminate without further notice to Franchisor effective immediately upon the expiration of the
sixty-day period or such longer period as applicable law may require.

Furthermore, this Agreement may be terminated by Franchisee, upon thirty days' notice to Franchisor, in the event any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law,
or any dissolution or insolvency proceeding, is commenced in respect of Franchisor; provided, should such case or proceeding not be commenced by Franchisor, this Agreement may be terminated only upon thirty days' notice to Franchisor following any consent
or acquiescence by Franchisor to the case or proceeding or upon thirty days' notice to Franchisor should Franchisor not consent or acquiesce thereto and the case or proceeding has not been dismissed sixty days from the commencement thereof.

ARTICLE XII

OBLIGATIONS UPON TERMINATION OR EXPIRATION
12.1General Obligations.

  Except in the event of a termination of this Agreement pursuant to Section 11.4, upon the termination or expiration of this Agreement all rights granted hereunder to Franchisee and the Principal Shareholders shall immediately
terminate, and:
12.1.1

Franchisee and the Principal Shareholders shall immediately cease to operate the Restaurant and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee or Franchisor;

12.1.2

Upon demand by Franchisor, Franchisee and the Principal Shareholders shall assign to Franchisor all of their right, title and interest in any lease then in effect for the Restaurant or the Premises, and Franchisee and the Principal
Shareholders shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty days after termination or expiration of this Agreement;
12.1.3

Franchisee and the Principal Shareholders shall immediately and permanently cease to use, by advertising or in any other manner whatsoever, any confidential methods, procedures and techniques associated with the Concept and the System;
the mark "Garfield's Restaurant & Pub"; and all other Proprietary Marks and distinctive slogans, signs, symbols, or devices associated with the Concept and the System.  In particular, Franchisee and the Principal Shareholders shall cease to use,
without limitation, all signs, equipment, advertising materials, stationery and any other articles which display the Proprietary Marks associated with the Concept and the System;
12.1.4

Franchisee and the Principal Shareholders shall take such action as may be necessary to cancel any assumed name or equivalent registration which contains the mark "Garfield's Restaurant & Pub," the Proprietary Marks or any other
service mark or trademark of Franchisor, and, if applicable, Franchisee and the Principal Shareholders will change its corporate name so as to delete therefrom the words "Garfield's Restaurant & Pub," the Proprietary Marks or any other similar
combination, and Franchisee and the Principal Shareholders shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within ten days after termination or expiration of this Agreement;
12.1.5

If Franchisor does not demand an assignment of the Lease under Subsection 12.1.2, Franchisee and the Principal Shareholders shall make such modifications or alterations to the Premises operated hereunder (including, without
limitation, the changing of the telephone number) immediately upon termination or expiration of this Agreement as may be necessary to prevent any association between Franchisor or the System and any business subsequently operated by Franchisee, the
Principal Shareholders or others, and shall make such specific additional changes thereto as Franchisor may reasonably request for that purpose including, without limitation, the removal of all distinctive physical and structural features identifying the
Concept.  In the event Franchisee or the Principal Shareholders fail or refuse to comply with the requirements of this section, Franchisor shall have the right to enter upon the Premises where the Restaurant was operated, without being guilty of trespass
or any other tort, for the purpose of making or causing to be made such changes as may be required at the expense of Franchisee and the Principal Shareholders, which expense Franchisee and the Principal Shareholders agree to pay upon demand;
12.1.6

Franchisee and the Principal Shareholders agree, in the event it or they continue to operate or subsequently begins to operate any other business, not to use any reproduction, counterfeit, copy, or colorable imitation of the
Proprietary Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake, or deception, or which is likely to dilute Franchisor's rights in and to the Proprietary Marks, and further agree not to
utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with Franchisor so as to constitute unfair competition;
12.1.7

Franchisee and the Principal Shareholders shall promptly pay all sums owing to Franchisor and its subsidiaries and affiliates.  In the event of termination for any default of Franchisee or the Principal Shareholders, such sums shall
include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default, which obligation shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the
personal property, equipment, inventory and fixtures owned by Franchisee and the Principal Shareholders and on the Premises operated hereunder at the time of default;
12.1.8

Franchisee and the Principal Shareholders shall pay Franchisor all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration or other relief for the
enforcement of any provisions of this Section 12.1;
12.1.9

Franchisee and the Principal Shareholders shall immediately turn over to Franchisor all material, including, without limitation, all manuals (including the Manual) and all records, instructions, correspondence, brochures, agreements
and any and all other materials and all copies thereof in Franchisee's possession relating to the operation of the Restaurant (all of which are acknowledged to be Franchisor's property), and shall retain no copy or record of any of the foregoing,
excepting only Franchisee's copy of this Agreement and of any correspondence between the parties hereto, and any other documents which Franchisee or the Principal Shareholders reasonably need for proper business purposes or compliance with any provision
of law;
12.1.10

Franchisee shall not remove any property from the Restaurant Premises for a period of thirty days after the termination of this Agreement.  At the option of Franchisor, within ten days after the date of termination or expiration of
this Agreement, Franchisee and Franchisor shall arrange for an inventory to be made, at Franchisee's cost of all the personal property, fixtures, equipment and inventory of Franchisee related to the operation of the Restaurant.  As to items that could be
considered exclusively for use in a Garfield's Restaurant & Pub Restaurant, Franchisor shall have the option to purchase from Franchisee any or all of such items at fair market value.  The determination of items deemed to be exclusively used in a
Garfield's Restaurant & Pub Restaurant shall be reasonably made by Franchisor.  If the parties hereto cannot agree on fair market value within a reasonable time, the parties hereto shall select an appraiser whose determination of fair market value
shall be binding.  If the parties cannot agree on an appraiser within a reasonable time, one independent appraiser shall be designated by Franchisor and another by Franchisee, and the two independent appraisers so designated shall select a third
independent appraiser.  The determination of fair market value of a majority of appraisers so chosen shall be binding.  Franchisee and Franchisor shall bear the costs of the appraisal on an equal basis.  If Franchisor elects to exercise the option to
purchase herein provided, it shall have ten days after determination of fair market value to notify Franchisee of its exercise of the option to purchase and shall have the right to set 

off all amounts due from Franchisee and the Principal Shareholders under this Agreement against any payment therefor.

As to the remaining items of personal property, fixtures, equipment and inventory, Franchisee and the Principal Shareholders hereby grant Franchisor a right of first refusal to purchase such items on the same terms and conditions that
a bona fide third party has made an offer to Franchisee or the Principal Shareholders for the purchase of any or all of such items.  Franchisee shall promptly notify Franchisor of the receipt of an offer to purchase any or all of such items, and if
Franchisor elects to exercise its right of first refusal provided herein, it shall have ten days to notify Franchisee of its election to exercise the right.  Furthermore, Franchisor shall have the right to set off all amounts due from Franchisee and the
Principal Shareholders under this Agreement against any payment therefor; and
12.1.11

Franchisee and the Principal Shareholders shall comply with the agreements contained in Section 13.4 of this Agreement.

12.2Obligations Upon Termination by Franchisee.  

Upon termination of this Agreement pursuant to Section 11.4, all rights granted hereunder to Franchisee and the Principal Shareholders shall immediately  terminate, and Franchisee and the Principal Shareholders shall be subject
to all the terms of Section 12.1.
12.3Refund of Initial Fee Upon Termination.  

In the event of termination by reason of Franchisee's failure after a good faith effort to obtain the necessary state or local liquor licenses as required in Section 4.13, Franchisor shall refund to Franchisee, without interest,
the Initial Fee referred to in Subsection 2.1.1, less any expenses incurred and damages sustained by Franchisor in connection with its performance hereunder prior to the date of such termination.  Franchisor shall also repay the Initial Fee under the circumstances described in 
Subsection 5.1.3 hereof.  In the event of termination for any other reason, Franchisor shall have no obligation to refund any amount previously paid by Franchisee or the Principal Shareholders, and Franchisee and the Principal Shareholders shall be obligated to
promptly pay all sums which are then due Franchisor.

ARTICLE XIII

AGREEMENTS
13.1Best Efforts.  

Franchisee agrees that, during the term of this Agreement, except as otherwise approved in writing by Franchisor, Franchisee, the Principal Shareholders or Franchisee's general manager, shall devote full time, energy and best efforts
to the management and operation of the Restaurant.
13.2Franchisee and Principal Shareholders Agreement Not to Compete.  

Franchisee and the Principal Shareholders agree that, during the term of this Agreement, except as otherwise approved in writing by Franchisor, Franchisee and the Principal Shareholder shall not, either directly or indirectly, for
itself or themselves, or through, on behalf of, or in conjunction with, any person, persons, partnership, or corporation, divert or attempt to divert any business or customer of any Garfield's Restaurant & Pub Restaurant or any other franchise or
company-owned business of Franchisor to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's Proprietary Marks, the
Concept and the System.
13.3Franchisor Agreement Not to Compete.  

Franchisor agrees that during the term of this Agreement, except as otherwise approved in writing by Franchisee, Franchisor shall not intentionally or maliciously:
13.3.1

Divert or attempt to divert any material business from the Restaurant to any competitor; provided, this Subsection 13.3.1 shall not apply to any present or future Garfield's Restaurant & Pub Restaurants, or any other
franchise or company-owned business of Franchisor;
13.3.2

Employ or seek to employ any person who is at that time employed by Franchisee or otherwise induce such person to leave his or her employment; or
13.3.3

Nothing in this Agreement shall prohibit Franchisor's ownership or operation of any business which sells food and beverages.

13.4Interference with Employment Relations.  

During the term of this Agreement, neither Franchisor, Franchisee, nor the Principal Shareholders shall employ or seek to employ in a managerial position (i.e., in a position at a pay grade at or above that of an assistant restaurant
manager or kitchen manager), directly or indirectly, any person who is at the time or was at any time during the prior six months employed by the other party or any of its subsidiaries or affiliates, or by any franchisee in the System.  This section shall
not be violated if, at the time Franchisor or Franchisee/Principal Shareholders employs or seeks to employ such person, such former employer has given its written consent.  Notwithstanding any other provision of this Agreement, the parties hereto
acknowledge that if this section is violated, such former employer shall be entitled to liquidated damages equal to three times the annual salary of the employee involved, plus reimbursement of all costs and attorneys' fees incurred.  In addition to the
rights granted to the parties hereto, the parties hereto acknowledge and agree that any franchisee from which an employee was hired by a party to this Agreement in violation of the terms of this section shall be deemed to be a third-party beneficiary of
this provision and may sue and recover against the offending party the liquidated damages herein set forth; provided, however, the failure by Franchisee to enforce this section shall not be deemed to be a violation of this section.
13.5Reduction of Scope of Agreement.  

Franchisee and the Principal Shareholders understand and acknowledge that Franchisor shall have the right, in its sole discretion, to reduce the scope of any agreement set forth in Sections 13.2 and 7.1 of this Agreement,
or any portion thereof, without consent, effective immediately upon receipt by Franchisee of written notice thereof, and Franchisee and the Principal Shareholders agree that they shall comply with any agreement as so modified, which shall be fully
enforceable notwithstanding the provisions of Article XVI hereof.
13.6Reforming Provisions.  

If any court or other tribunal having jurisdiction to determine the validity or enforceability of this Article XIII determines that it would be invalid or unenforceable as written, then the provisions hereof shall be deemed to
be modified or limited to such extent or in such manner as necessary for such provisions to be valid and enforceable to the greatest extent possible.

ARTICLE XIV

TAXES, PERMITS AND INDEBTEDNESS
14.1Prompt Payment of Taxes.  

Franchisee or the Principal Shareholders shall promptly pay when due all taxes levied or assessed, including, without limitation, VAT (value added taxes), unemployment and sales taxes and all accounts and other indebtedness of every
kind incurred by Franchisee in the conduct of the Restaurant.  Franchisee or the Principal Shareholders shall pay to Franchisor an amount equal to any sales tax, withholding of tax, gross receipts tax, or similar tax imposed on Franchisor with respect to
any payments to Franchisor required under this Agreement.
14.2Bona Fide Dispute.  

In the event of any bona fide dispute as to liability for taxes assessed or other indebtedness, Franchisee or the Principal Shareholders may contest the validity or the amount of the tax or indebtedness in accordance with procedures of
the taxing authority or applicable law; however, in no event shall Franchisee or the Principal Shareholders permit a tax sale or seizure by levy of execution or similar writ or warrant, or attachment by a creditor, to occur against the Premises, the
Restaurant or any improvements thereon.
14.3Compliance with Laws.  

Franchisee and the Principal Shareholders shall comply with all federal, state and local laws, rules and regulations, and shall timely obtain any and all permits, certificates, or licenses necessary for the full and proper conduct of
the Restaurant under this Agreement, including, without limitation, licenses to do business, fictitious name registration, sales tax permits, liquor licenses and fire clearances.
14.4Notification of Legal Proceedings.  

Franchisee or the Principal Shareholders shall notify Franchisor in writing within ten days of the commencement of any action, suit or proceeding, and of the issuance of any order,  writ,  injunction,  award or decree of any court,
agency or other governmental instrumentality, which may adversely affect the operation or financial condition of the Restaurant.

ARTICLE XV

FRANCHISEE ORGANIZATION, AUTHORITY, 

AND FINANCIAL CONDITION

15.1Entity Representations & Warranties. 

Franchisee and each Principal Shareholder represent and warrant that: (a) Franchisee is a corporation duly incorporated, validly existing and in good standing under the laws of the state of its incorporation; (b) Franchisee is duly
qualified and is authorized to do business and is in good standing as a foreign corporation in each jurisdiction in which its business activities or the nature of the properties owned by it requires such qualification; (c) the execution and delivery of
this Agreement and the transactions contemplated hereby are within Franchisee's corporate power; (d) the execution and delivery of this Agreement has been duly authorized by Franchisee; (e) the articles of incorporation and by-laws of Franchisee delivered
to Franchisor are true, complete and correct, and there have been no changes therein since the date thereof; (f) the certified copies of the minutes electing the officers of Franchisee and authorizing the execution and delivery of this Agreement are true,
correct and complete, and there have been no changes therein since the date(s) thereof; (g) the specimen stock certificate delivered to Franchisor is a true specimen of Franchisee's stock certificate; (h) the balance sheet of Franchisee as of ____________
___, _______ and the balance sheets of the Principal Shareholders as of _____________ ___, _______, ("Balance Sheets") heretofore delivered to Franchisor, are true, complete and correct, and fairly present the financial positions of Franchisee and each Principal Shareholder, respectively, as of the dates thereof; (i) the Balance Sheets have been
prepared in accordance with generally accepted accounting principles; and (j) there have been no materially adverse changes in the condition, assets or liabilities of Franchisee or the Principal Shareholders since the date or dates thereof.
15.2Covenants.  

Franchisee and each Principal Shareholder covenant and agree that during the term of this Agreement:  (a) Franchisee shall do or cause to be done all things necessary to preserve and keep in full force its corporate existence and shall
be in good standing as a foreign corporation in each jurisdiction in which its business activities or the nature of the properties owned by it requires such qualification; (b) Franchisee shall have the corporate authority to carry out the terms of this
Agreement; and (c) Franchisee shall print, in a conspicuous fashion on all certificates representing shares of its stock when issued, a legend referring to this Agreement and the restrictions on and obligations of Franchisee and the Principal Shareholders
hereunder, including the restrictions in this Agreement on transfer of Franchisee's shares.
15.3Financial Statements.  

In addition to the financial information which Franchisee is required to provide to Franchisor under Subsection 4.12.2 and Section 15.1 hereof, Franchisee and the Principal Shareholders shall provide Franchisor with such
other financial information as Franchisor may reasonably request from time to time, including, on an annual basis, copies of the then-most current financial statements of Franchisee and each Principal Shareholder, dated as of the end of the last preceding
fiscal year of Franchisee or Principal Shareholder, said statements to be delivered to Franchisor no later than April 15 of each year, which financial statements shall be prepared in accordance with generally accepted accounting principles.
15.4Ownership.  

Franchisee shall maintain a current list of all owners of record and all beneficial owners of any class of equity security of Franchisee and shall furnish the list to Franchisor upon request.  Schedule 15.4 attached to this
Agreement and made a part hereof is a complete and correct listing of the directors, officers, managers and equity holders of Franchisee. Franchisee and each Principal Shareholder represent, warrant and covenant that all equity interests in Franchisee are
owned as set forth on Schedule 15.4, that no such interest has been pledged or hypothecated (except in accordance with Article X, and that no change will be made in the ownership of any such interest other than as permitted by this Agreement, or otherwise
consented to in writing by Franchisor.  Franchisee and Principal Shareholders agree to furnish Franchisor with such evidence as Franchisor may request, from time to time, for the purpose of assuring Franchisor that the interests of Franchisee and
Principal Shareholders remain as represented herein.
15.5Guarantees.  

Each Principal Shareholder, jointly and severally, hereby personally and unconditionally guarantees each of Franchisee's financial obligations to Franchisor (including, but not limited to, all obligations relating to the payment of
fees by Franchisee to Franchisor).  Each Principal Shareholder agrees that Franchisor may resort to such Principal Shareholder (or any of them) for payment of any such financial obligation, whether or not Franchisor shall have proceeded against
Franchisee, any other Principal Shareholder or any other obligor primarily or secondarily obligated to Franchisor with respect to such financial obligation.  Each Principal Shareholder hereby expressly waives presentment, demand, notice of dishonor,
protest and all other notices whatsoever  with respect to Franchisor's enforcement of this guaranty.  In addition, each Principal Shareholder agrees that, if the performance or observance by Franchisee of any term or provision hereof is waived or the time
of performance thereof extended by Franchisor, or payment of any such financial obligation is accelerated in accordance with any agreement between Franchisor and any party hereto liable in respect thereof or extended or renewed, in whole or in part, all
as Franchisor may determine, whether or not notice to or consent by any Principal Shareholder or any other party liable in respect to such financial obligations is given or obtained, such actions shall not affect or alter the guaranty of each Principal
Shareholder described in this section.

ARTICLE XVI

RELATIONSHIP AND INDEMNIFICATION
16.1Relationship.  

It is understood and agreed by the parties hereto that this Agreement does not create a fiduciary relationship between them, and that nothing in this Agreement is intended to constitute any party an agent, legal representative,
subsidiary, joint venturer, partner, employee, or servant of the other for any purpose whatsoever.  Franchisee and the Principal  Shareholders are independent contractors and are not authorized to make any contract, agreement, warranty, or representation
on behalf of Franchisor, or to incur any debt or obligation, express or implied, on behalf of Franchisor.  Furthermore, except as expressly provided in Section 5.2.5, Franchisor 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 Franchisee or the Principal Shareholders in the conduct of the Restaurant or any
claim or judgment arising therefrom against Franchisor.  During the term of this Agreement, Franchisee shall hold itself out to the public as operating the Restaurant  pursuant to a franchise from Franchisor.  Franchisee agrees to take such affirmative
action as may be necessary to do so, including, without limitation, exhibiting a notice of that fact in a conspicuous place in the Restaurant, the content of which Franchisor reserves the right to specify.
16.2Indemnification.  

Franchisee and the Principal Shareholders shall indemnify and hold harmless Franchisor and its officers, directors, employees, agents, affiliates, successors and assigns from and against (a) any and all claims based upon, arising out
of, or in any way related to the operation or condition of any part of the Restaurant or the Premises, the conduct of business thereat, the ownership or possession of real or personal property, and any negligent act, misfeasance or nonfeasance by
Franchisee, the Principal Shareholders of any of their agents, contractors, servants, employees or licensees (including, without limitation, the performance by Franchisee or the Principal Shareholders of any act required by, or performed pursuant to, any
provision of this Agreement), and (b) any and all fees (including reasonable attorneys' fees), costs and other expenses incurred by or on behalf of Franchisor in the investigation of or defense against any and all such claims.

ARTICLE XVII

GENERAL PROVISIONS
17.1Request for Approval.  

Whenever this Agreement requires the prior approval or consent of Franchisor, Franchisee or the Principal Shareholder  shall make a timely written request to Franchisor therefor, and such approval or consent shall be obtained in writing.

17.2No Liability Assumed.  

Franchisor makes no warranties or guarantees upon which Franchisee or any Principal Shareholder may rely, and assumes no liability or obligation to Franchisee or any Principal Shareholder, by providing any waiver, approval, consent or
suggestion to Franchisee or any Principal Shareholder in connection with this Agreement, or by reason of any neglect, delay, or denial of any request therefor.
17.3No Waiver.  

No delay, waiver, omission or forbearance on the part of Franchisor to exercise any right, option, duty, or power arising out of any breach or default by Franchisee or any Principal Shareholder, or by any other franchisee or developer
of Franchisor, of any of the terms, provisions, or conditions hereof, shall constitute a waiver by Franchisor to enforce any such right, option, duty or power as against Franchisee or any Principal Shareholder, or as to any subsequent breach or default by
Franchisee or any Principal Shareholder.  Subsequent acceptance by Franchisor of any payments due to it hereunder shall not be deemed to be a waiver by Franchisor of any preceding breach by Franchisee or the Principal Shareholders of any terms, provisions
or conditions of this Agreement.
17.4Notices.  

Any and all notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered in person, by overnight courier service, facsimile transmission or mailed by certified or registered mail,
return receipt requested, to the respective parties hereto at the addresses set forth below, unless and until a different address has been designated by written notice to the others.

Franchisor:Eateries, Inc.

1220 S. Santa Fe 

Edmond, Oklahoma  73003

Attention.:  Larry Bader, 

Vice President of Franchising

Facsimile:  (405) 705-5001

Franchisee:

Facsimile:  _____________________

Principal Shareholder:See Schedule 17.4
17.5Entire Agreement.  

This Agreement, the documents referred to herein, and the schedules, appendices, and/or exhibits or other attachments hereto, constitute the entire, full and complete agreement between Franchisor, Franchisee and the Principal
Shareholders concerning the subject matter hereof, and supersede all prior agreements, no other representations having induced Franchisee to execute this Agreement.  Except for changes or modifications of the System made from time to time by Franchisor,
which shall be set forth in the Manual or in writing, no amendment, change, or variance from this Agreement shall be binding on the parties hereto unless mutually agreed to by the parties hereto and executed by their authorized officers or agents in writing
 .
17.6Severability and Construction.  

The parties hereto agree that:
17.6.1

Except as expressly provided to the contrary herein, each section, subsection, part, term and/or provision of this Agreement shall be considered severable; and if, for any reason, any section, subsection, 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 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 said invalid sections, subsections, parts, terms and/or provisions
shall be deemed not to be a part of this Agreement;
17.6.2

Unless otherwise specified in this Agreement, nothing in this Agreement is intended, nor shall be deemed, to confer upon any person or legal entity other than Franchisor or Franchisee and such of their respective successors and assigns
as may be contemplated by Article X hereof, any rights or remedies under or by reason of this Agreement;

17.6.3    

Franchisee and Principal Shareholders expressly agree 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 Franchisor is a party, or
from reducing the scope of any promise or covenant to the extent required to comply with such a court order;
17.6.4

All captions in this Agreement are intended solely for the convenience of the parties hereto, and none shall be deemed to affect the meaning or construction of any provision hereof;
17.6.5

All references herein to the masculine, neuter, or singular shall be construed to include the masculine, feminine, neuter, or plural, where applicable, and all acknowledgments, covenants, agreements and obligations herein made or
undertaken by Franchisee shall be deemed jointly and severally undertaken by all the Principal Shareholders on behalf of Franchisee; and
17.6.6

This Agreement may be executed in several counterparts, and each copy so executed shall be deemed an original.

17.7Remedies.  

All rights and remedies of Franchisor shall be cumulative and not alternative, in addition to and not exclusive of any other rights or remedies which are provided for herein or which may be available at law or in equity in case of any
breach, failure or default or threatened breach, failure or default of any term, provision or condition of this Agreement.  Franchisor's rights and remedies shall be continuing and shall not be exhausted by any one or more uses thereof, and may be
exercised at any time or from time to time as often as may be expedient; and any option or election to enforce any such right or remedy may be exercised or taken at any time and from time to time.  The expiration or earlier termination of this Agreement
shall not discharge or release Franchisee or any Principal Shareholder from any liability or obligation then accrued, or any liability or obligation continuing beyond, or arising out of, the expiration or earlier termination of this Agreement.
17.8Force Majeure.  

As used in this section, the term "Force Majeure" shall mean any act of God, strike, lock-out or other industrial disturbance, war (declared or undeclared), riot, epidemic, fire or other catastrophe, act or inaction of any
government and any other similar cause not within the control of the party hereto affected thereby.  If the performance of any obligation by any party hereto under this Agreement is prevented or delayed by reason of Force Majeure, which cannot be overcome
by use of normal commercial measures, the parties hereto shall be relieved of their respective obligations to the extent such parties are respectively necessarily prevented or delayed in such performance during the period of such Force Majeure.  The party
whose performance is affected by an event of Force Majeure shall give prompt notice of such Force Majeure event to the other parties by facsimile, telephone or telegram (in each case to be confirmed in writing), setting forth the nature thereof and an
estimate as to its duration, and shall be liable for failure to give such timely notice only to the extent of damage actually caused.
17.9Applicable Law.  

This Agreement takes effect upon its acceptance and execution by Franchisor in Oklahoma and shall be interpreted and construed under the laws thereof, which laws shall prevail in the event of any conflict of laws, except to the extent
governed by the United States Trademark Act of 1946, as amended.
17.10Final and Binding Arbitration.  

Except as provided in Section 17.11, any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity of it, shall be settled by arbitration to be held in Oklahoma City,
Oklahoma, in accordance with and through the AAA Commercial Arbitration Rules in effect as of the Effective Date, or such other rules to which the parties hereto may agree or the law may require.  The arbitration shall be conducted by a single arbitrator
selected by the American Arbitration Association.  All proceedings of the arbitration, including arguments and briefs, shall be conducted in English.  The arbitrator shall take evidence directly from witnesses and documents as presented by the parties;
all witnesses shall be made available for cross examination.  The arbitrator shall render a written award within three months of the request for arbitration, and such award shall be final and binding upon the parties hereto, non-appealable and without
recourse.  Judgment upon the award may be entered in any court of record of competent jurisdiction, or application may be made to such court for judicial confirmation of the award and an order of enforcement, as the law of such jurisdiction may require or
allow.  The prevailing party or parties (as determined by the arbitrator) shall be entitled to reimbursement from the other party(ies) of the costs of the prevailing party's own experts, evidence and legal counsel in any arbitration held under this
provision and in any action filed for judicial confirmation of the award.  The non-prevailing party(ies) shall also bear the expenses of arbitration.  
17.11Injunctive Relief; Venue.  

Notwithstanding the provisions of Section 17.10, nothing herein contained shall bar Franchisor's right to obtain injunctive relief against threatened conduct that will cause it loss or damages, under the usual equity rules,
including the applicable rules for obtaining restraining orders and preliminary injunctions.  In that event, such action may be brought by Franchisor in the federal or state judicial district in which Franchisor's principal place of business is located or
in any other court of competent jurisdiction.

Franchisor, Franchisee and the Principal Shareholders irrevocably consent to the arbitration and venue provisions of Sections 17.10 and 17.11 and each submits to the jurisdiction and venue in such arbitration and court(s)
and waives any defenses thereto.  Each party hereto agrees to service of process in any such proceeding by either personal delivery against receipt, telegram, telex, facsimile, or registered mail (with postage prepaid and return receipt requested) to the
addresses set forth Section 17.4 and the attached Schedule 17.4, or any substitute addresses indicated by notice.  A consent, notice or waiver transmitted by telegram, telex, or facsimile will be deemed to have been delivered two days after transmission and if
mailed, seven days after mailing.
17.12Legal Fees.  

In the event that any party to this Agreement initiates any legal proceeding to construe or enforce any of the terms, conditions and/or provisions of this Agreement, including, but not limited to, its termination provisions, or to
obtain damages or other relief to which any party may be entitled by virtue of this Agreement, the prevailing party or parties shall be paid its reasonable attorneys' fees and expenses by other party or parties.
17.13Acknowledgments.  

Franchisee and the Principal Shareholders acknowledge, and represent and warrant to Franchisor, that:
17.13.1

Franchisee and the Principal Shareholders have conducted an independent investigation into the ownership and operation of the Restaurant, and recognize that the business venture contemplated by this Agreement involves business risks
and that its success will be largely dependent upon the ability of Franchisee and the Principal Shareholders as independent business operators and their active participation in the daily affairs of the Restaurant.  Franchisor expressly disclaims the
making of, and Franchisee and the Principal Shareholders acknowledge that they have not received, any warranty or guarantee, express or implied, as to the potential volume, profits, or success of the business venture contemplated by this Agreement;
17.13.2

Franchisee has received a copy of this complete Agreement, the attachments, schedules and/or exhibits hereto, and all agreements relating hereto, if any, and the Development Agreement and all agreements relating thereto, at least five
business days prior to the date on which this Agreement was executed.  Franchisor further acknowledges that it has received the disclosure document required by the Federal Trade Commission at the earliest of (1) the first personal meeting held for the
purpose of discussing the sale or possible sale of a franchise; or (2) ten business days prior to the date on which this Agreement was executed; or (3) ten  business days before the payment of any consideration in connection with the sale of the franchise
contemplated hereunder;
17.13.3

Franchisee and the Principal Shareholders have read and understood this Agreement, the attachments, schedules, and/or exhibits hereto, and any other agreements related to this Agreement, including, without limitation, the Development
Agreement and all agreements relating thereto, if any, and that Franchisor has accorded Franchisee and the Principal Shareholders ample time and opportunity to consult with advisors of their own choosing about the potential benefits and risks of entering
into this Agreement; and
17.13.4

Franchisee and the Principal Shareholders understand that every detail of the business franchised hereunder is important to Franchisee, Franchisor, the Principal Shareholders and other franchisees in order to develop and maintain high
and uniform operating standards for the System and the Concept, to increase the demand for the services and products sold by Franchisor and all franchisees of Franchisor, and to protect Franchisor's reputation and goodwill.

IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this Agreement on the day and year first above written.

FRANCHISOR:EATERIES, INC.

 

By:
      Laurence Bader

                  Vice President of Franchising

 

FRANCHISEE:

 

By:

PRINCIPAL SHAREHOLDER(S):

Name:  

Name:  

SCHEDULE A

[Street address for the Restaurant; for single franchise agreement]

SCHEDULE 15.4

to the Franchise Agreement between

Eateries, Inc. and

The directors, officers, managers and equity holders of Franchisee are:

Name of Director/Officer/ManagerTitle

 

 

 

 

 
Class and Number 

of Shares or Other

Name of Equity-holderUnits of Ownership

 

 

SCHEDULE 17.4

to the Franchise Agreement between

Eateries, Inc. and _________________

Name of Principal ShareholderAddress and Telephone Number

 

APPENDIX A

CONFIDENTIALITY AGREEMENT

THIS AGREEMENT is made this ___ day of __________, _____, by and between _____________________________, a ______________ corporation ("Franchisee") and __________________, an individual employed by Franchisee ("Employee
").

WITNESSETH:

WHEREAS, EATERIES, INC. ("Franchisor") is the owner of all rights in and to a unique system for the development and operation of restaurants (the "System"), which includes proprietary rights in valuable trade names,
service marks and trademarks, including the service mark Garfield's Restaurant & Pub and variations of such mark, designs and color schemes for restaurant premises, signs, equipment, procedures and formulae for preparing food and beverage products,
specifications for certain food and beverage products, inventory methods, operating methods, financial control concepts, a training facility and teaching techniques; and

WHEREAS, Franchisee is the owner of the exclusive right to develop restaurants franchised by Franchisor which utilize the System ("Restaurants") for the period and in the territory described in the Development Agreement between
Franchisor and Franchisee (the "Development Agreement"); and

WHEREAS, Franchisee has entered into a Franchise Agreement with Franchisor covering the franchised restaurant (the "Restaurant") at which Employee is employed; and

WHEREAS, Franchisee and Employee acknowledge that Franchisor' information as described above was developed over time at great expense, is not generally known in the industry and is beyond Franchisee's own present skills and experience,
and that to develop it itself would be expensive, time-consuming and difficult, that it provides a competitive advantage and will be valuable to Franchisee in the development of its business, and that gaining access to it was therefore a primary reason
why Franchisee entered into the Development Agreement; and

WHEREAS, in consideration of Franchisor's confidential disclosure to Franchisee of these trade secrets, Franchisee has agreed to be obligated by the terms of Franchise Agreement and/or the Development Agreement to execute, with each
employee of Franchisee who will have supervisory authority over the development or operation of the Restaurant and/or other Restaurants in the Territory described in the Development Agreement, a written agreement protecting Franchisor' trade secrets and
confidential information entrusted to Employee;

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, covenant and agree as follows:

(1)The parties hereto acknowledge and agree that Employee is or will be employed in a supervisory or managerial capacity and in such capacity will have access to information and materials which constitute trade secrets and
confidential and proprietary information. The parties further acknowledge and agree that any actual or potential direct or indirect competitor of Franchisor, or of any of its Franchisees, shall not have access to such trade secrets and confidential
information.

(2)The parties hereto acknowledge and agree that the System includes trade secrets and confidential information which Franchisor has revealed to Franchisee in confidence, and that protection of said trade secrets and
confidential information and protection of Franchisor against unfair competition from others who enjoy or who have had access to said trade secrets and confidential information are essential for the maintenance of goodwill and special value of the System.

(3)Employee agrees that he or she shall not at any time (i) appropriate or use the trade secrets incorporated in the System, or any portion thereof, for use in any business which is not within the System; (ii) disclose or
reveal any portion of the System to any person, other than to Franchisee's employees as an incident of their training; (iii) acquire any right to use, or to license or franchise the use of any name, mark or other intellectual property right which is or
may be granted by any franchise agreement between Franchisor and Franchisee; or (iv) communicate, divulge or use for the benefit of any other person or entity any confidential information, knowledge or know-how concerning the methods of development or
operation of the Restaurant or other Restaurants which may be communicated to Employee or of which Employee may be apprised by virtue of Employee's employment by Franchisee. Employee shall divulge such confidential information only to such of Franchisee's
other employees as must have access to that information in order to operate the Restaurant or other  Restaurants or to develop a prospective site for the Restaurant or other Restaurants. Any and information, knowledge and know-how, including, without
limitation, drawings, materials, equipment, specifications, techniques and other data, which Franchisor designates as confidential, shall be deemed confidential for purposes of this Agreement.

(4)Employee further acknowledges and agrees that the Garfield's Operations Manual and any other materials or manuals provided or made available to Franchisee by Franchisor (collectively, the "Manuals") are loaned by
Franchisor to Franchisee for limited purposes only, remain the property of Franchisor, and may not be reproduced, in whole or in part, without the written consent of Franchisor.

(5)Employee agrees to surrender to Franchisee or to Franchisor each and every copy of the Manuals and any other information or material in his/her possession or control upon request, upon termination of employment or upon
completion of the use for which said Manuals or other information or material may have been furnished to Employee.

(6)The parties hereto agree that in the event of a breach of this Agreement, Franchisor would be irreparably injured and would be without an adequate remedy at law. Therefore, in the event of a breach or a threatened or
attempted breach of any of the provisions hereof, Franchisor shall be entitled to enforce the provisions of this Agreement as a third-party beneficiary hereof and shall be entitled, in addition to any other remedies which it may have hereunder at law or
in equity (including the right to terminate the Development Agreement), to a temporary and/or permanent injunction and a decree for specific performance of the terms hereof without the necessity of showing actual or threatened damage, and without being
required to furnish a bond or other security.

(7)If any court or other tribunal having jurisdiction to determine the validity or enforceability of this Agreement determines that it would be invalid or unenforceable as written, the provisions hereof shall be deemed to be
modified or limited to such extent or in such manner necessary for such provisions to be valid and enforceable to the greatest extent possible.

IN WITNESS WHEREOF, the undersigned have entered into this Agreement as of the date first above written.

FRANCHISEE EMPLOYEE

By:By:

Name:Name:

Title:

APPENDIX B

AUTHORIZATION AGREEMENT FOR PRE-ARRANGED PAYMENTS

COMPANY NAME 

COMPANY I.D. NO. 

I (WE) HEREBY AUTHORIZE EATERIES, INC., HEREINAFTER CALLED COMPANY, TO INITIATE DEBIT ENTRIES TO OUR CHECKING ACCOUNT INDICATED BELOW AND THE DEPOSITORY NAMED BELOW, HEREINAFTER CALLED DEPOSITORY, TO DEBIT THE SAME TO SUCH
ACCOUNT.

DEPOSITORY NAME 

BRANCH 

CITY ______________________________STATE_________ZIP

TRANSIT/ABA NO.____________________ACCT. NO. 

THIS AUTHORITY IS TO REMAIN IN FULL FORCE AND EFFECT UNTIL COMPANY AND DEPOSITORY HAS RECEIVED WRITTEN NOTIFICATION FROM ME (OR EITHER OF US) OF ITS TERMINATION IN SUCH TIME AND IN SUCH MANNER AS TO AFFORD COMPANY AND
DEPOSITORY A REASONABLE OPPORTUNITY TO ACT ON IT.

NAME_______________________________________ ID# 

DATE___________________ SIGNED 

 SIGNED

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