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Exhibit 10.5    
  

March 25,
2003 

Thomas
Conforti

5034 Alta Canyada Road

La Canada, CA 91011 

Dear
Tom, 

        On
behalf of IHOP Corp. I am very pleased to confirm our offer of employment as Chief Financial Officer. As you know, the role of Chief Financial Officer is critical not only in leading
our efforts to enhance our basic financial and IT functions, but to contribute to the design and execution of IHOP's future business strategy. I am excited to have the opportunity to partner with
someone of your caliber in this process. Below are the specifics of our offer: 

	•
	Hire Date: Your start date as Chief Financial Officer will be Monday, December 9, 2002.

	•
	Salary: As we discussed, your annual base salary will $325,000 with a performance and salary review on
October 1, 2003.

	•
	Bonus: You will participate in the Company's 2003 Executive Incentive Plan with a target bonus of 35% of your
base salary. As outlined in the plan sent to you last week, bonuses are based on both Company and Individual performance. We will agree on Individual Business Objectives for 2003 once you are on
board. As we discussed, the Board and I will be reviewing IHOP's Executive Compensation package in detail, to include the bonus program, at the board meeting on December 12, 2002. Should it be
determined that an increased bonus % is warranted at that time, the new bonus rate will be awarded to you effective January 1, 2003. You will not be eligible for any bonus payout for the
partial month you have worked in 2002.

	•
	Benefits: You will participate in the Company's health, dental, life and retirement benefit plans, subject to
the terms, conditions, and limitations contained in the applicable plan documents and policies. We
will also secure a separate plan through Exec-U-Care to assist you in covering some of the special medical expenses you incur with your son which are not otherwise covered
through our normal medical insurance. Please see the attached document which summarizes this benefit.

	•
	Stock Options: Upon hire, you will receive a stock option grant of 40,000 shares based on the stock price in
effect on your hire date. Thereafter, you will be eligible to participate in IHOP Corp.'s stock option plans as determined by the Board of Directors.

	•
	Car Allowance: You will receive a car allowance of $700 per month plus reimbursement of all automobile
expenses, such as gasoline, maintenance, insurance, and vehicle registration. This is another area the Board of Directors is reviewing at their meeting on December 12. Any approved increase in
car allowance will be granted to you as directed by the Board.

	•
	Professional Services Allowance: As an executive you are entitled to a reimbursement of up to $10,000
annually for such expenses as unreimbursed medical bills, gym membership, investment, tax, or legal counseling, etc. Please see the attached list for details of the expenses covered under this policy. 

        You
will be required to sign IHOP's standard employment agreement with executives, which provides for an initial employment term of two years. 

        I
look forward to working with you as of your start date on December 9, 2002. If you have any questions before this date, please feel free to contact me. In the meantime, please
acknowledge receipt of this offer by signing an original copy of this letter and returning it to me for our files. I am truly looking forward to a great working partnership! 

Sincerely, 

Julia
Stewart

President & Chief Executive Officer 

This will acknowledge my acceptance of this offer of employment:

	By:	 	 	 	Date:	 	 
	 	 	
 Thomas Conforti	 	 	 	

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Exhibit 10.5EXHIBIT 10.8

 

AREA FRANCHISE AGREEMENT 

 

This Agreement by and
between INTERNATIONAL HOUSE OF PANCAKES, INC., a Delaware corporation,
successor in interest to THE INTERNATIONAL HOUSE OF PANCAKES COMMISSARY,
(hereinafter referred to as “Franchisor”) and FMS MANAGEMENT SYSTEMS, INC., a
Florida corporation, successor in interest to ABE FINKEL and CORINNE FINKEL,
A.J.A. CORPORATION, (hereinafter referred to as “Franchisee”) is made with
reference to the following facts:

 

A. Franchisor has developed and
is continuing to develop certain unique systems, products, methods, techniques
and other trade secrets (hereinafter referred to as the “Systems”) for
operating restaurants selling pancakes and various other food products under
the names “The International House of Pancakes” and “International House of
Pancakes Restaurant” (hereinafter referred to as “IHOP”). The System, conducted
in accordance with the provisions of this Agreement and Franchisor’s Operations
Manual, Operations Bulletins, and all notices, amendments and supplements
relating thereto (collectively referred to herein as “Operations Bulletins”)
will enable such businesses to compete more effectively in their respective
marketplaces;

 

B. Franchisor now owns and
hereafter will develop or purchase valuable trademarks, service marks, trade
names, logotypes and other commercial symbols used to identify the System
(hereinafter referred to as the “Trademarks”); and

 

C. Franchisor or its
predecessor in interest has granted to Franchisee or its predecessor in interest
an exclusive franchise and license to operate and/or subfranchise International
House of Pancakes restaurants within the area hereinafter described pursuant to
an Area Franchise Agreement dated July 1, 1960, (hereinafter referred to as
“Old Agreement”); and

 

D. The parties now desire to
modify the terms of the Old Agreement by terminating same and entering into a
new agreement (hereinafter “Agreement”) to use the System and Trademarks
associated therewith in connection with the operation and/or subfranchising of
IHOP restaurants within the area hereinafter described under the names “The
International House of Pancakes” and “International House of Pancakes
Restaurants” and Franchisor is willing to grant said Area Franchise under the
terms and subject to the conditions hereinafter set forth.

 

1

 

WHEREFORE, IT IS AGREED for
and in consideration of Ten Dollars ($10.00) each to the other in hand paid,
and for the mutual covenants and promises contained herein to the following:

 

I

 

GRANT OF FRANCHISE

 

1.01 Franchised Area.
Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, in
accordance with the provisions of this Agreement and any ancillary documents
pertaining hereto, an exclusive franchise and license to operate and/or to
subfranchise the operation of International House of Pancakes restaurants
within the following area of the United States:

 

All Counties of the State of
Florida and the Counties of Glynn, Wayne, Camden, Charlton, Decatur, Grady,
Miller, Seminole, Thomas, Berrien, Brooks, Cook, Echols, Lanier, Lowndes,
Appling, Atkinson, Bacon, Branskey, Clinch, Coffee, Jeff Davis, Pierce, and
Ware, Georgia.

 

1.02 Exclusive Territory. So
long as Franchisee faithfully performs and observes each and all of the
obligations and conditions to be performed and observed by Franchisee under or
in connection with this Agreement, Franchisor, during the term of this
Agreement, shall not own, operate, franchise or license any “International
House of Pancakes” restaurant within that area described above (hereinafter
“Franchised Area”). Franchisee acknowledges and agrees that Franchisor, or its
direct or indirect parent, subsidiary, or affiliated corporations, may now or
hereafter own, operate, franchise and license both within and without the
Franchised Area other restaurants under different trademarks, and trade names,
or service marks, including without limitation, Copper Penny Family Coffee
Shop, and that such other restaurants offer products similar to those which are
or may be offered by the Franchised Restaurants.

 

1.03 Use of System. The
franchise granted hereby is a license to use and/or license others to use
Franchisor’s trade name, goodwill, and trade secrets in the operation of
pancake specialty restaurants solely within the area specified herein and in
strict compliance with the terms hereof. Nothing herein contained shall be
construed so as to require Franchisor to divulge any secret processes,
formulas, or ingredients, except pursuant to this Agreement. It is expressly
agreed that the ownership of all right, title and interest in and to

 

2

 

said trade name, goodwill,
and trade secrets is and shall remain vested solely in Franchisor.

 

II

 

TERM OF FRANCHISE

 

2.01 Term. The term of this
Agreement shall commence on the date hereof and shall terminate on June 30,
2010, unless otherwise terminated pursuant to the provisions of this Agreement,
but shall be subject to extension or reduction of the term as provided in
Section IV hereinbelow.

 

III

 

SERVICES OF FRANCHISOR

 

3.01 Disclosure of
Procedures. Franchisor will disclose to Franchisee its standard operating
procedures and, in connection therewith, will furnish copies of all manuals,
bulletins, instruction sheets, forms, etc.

 

3.02 Training. Franchisee
acknowledges that it has previously undergone training conducted by Franchisor
for the operation of an IHOP restaurant. If Franchisee shall require additional
training for any of its personnel, Franchisor shall provide said training to be
given at an IHOP restaurant or a training center designated from time to time
by Franchisor. Franchisor will pay no compensation for any services performed
by trainee during such training period and all expenses incurred by Franchisee
or said trainee in connection with such training, including, but not limited
to, air fare and other transportation costs, meals, lodging and other living
expenses, shall be at the sole expense of the Franchisee, and Franchisee shall
also pay Franchisor’s then applicable training fee, which as of this date is
Five Thousand Dollars ($5,000.00).

 

3.03 Additional Assistance.
In addition to the foregoing, Franchisor shall provide Franchisee with
additional assistance from the staff of Franchisor or its corporate affiliates
upon Franchisee’s request and subject to staff availability, at the then
prevailing price per person, per day, as shall be specified from time to time
in the Operations Bulletins, plus reasonable transportation and living expenses.

 

3.04 Sale of Food Products
and Supplies. Franchisor shall either sell to Franchisee or make available to
Franchisee through an authorized supplier, at standard prices and terms which
shall be no higher nor more onerous

 

3

 

than the prices and terms
granted to any other area franchisee, for authorized distributor (but subject
to Section 5.07 (a) below) all dry pancake mixes, and IHOP logo items including
but not limited to imprinted paper goods, and custom patterned china, that
Franchisee shall need for use in its own operations and for resale to or use by
subfranchisees.

 

3.05 Improvements. All
improvements made by Franchisor in its products, procedures or designs will be
made available to Franchisee.

 

3.06 Indemnification. In the
event that any third party makes any claim, by suit or otherwise, against the
Franchisee because of the Franchisee’s use in accordance with this Agreement of
the Trademarks, the Franchisee shall immediately notify the Franchisor in writing.
After receipt of said notice, Franchisor shall promptly take such action as may
be necessary to protect and defend Franchisee against any such claim, suit or
demand, and Franchisor shall protect, indemnify and save Franchisee harmless
from any loss, costs or expenses arising out of or relating to any such claim,
demand, or suit. Franchisee shall have no right to settle, compromise, or
litigate any such claim except in strict compliance with any specific
directives provided by Franchisor relating to such specific claim. Franchisor
shall have the right to defend, compromise or settle any such claim at
Franchisor’s sole cost and expense, using attorneys of its own choosing, and
Franchisee agrees to cooperate fully with Franchisor in connection with the defense
of any such claim.

 

IV

 

FEES AND EXTENSIONS OR REDUCTIONS OF TERM

 

4.01 Continuing Royalty. For
and in consideration of Franchisor’s execution and performance of this
Agreement, Franchisee shall pay in United States Do1lars to Franchisor a
Continuing Royalty equal to one percent (1%) of all Franchisee’s monthly Gross
Sales as hereinafter defined. Should the annual Continuing Royalty paid to
Franchisor by Franchisee under this Agreement in respect of any fiscal year of
Franchisee (commencing with Franchisee’s fiscal year beginning October 1, 1987)
be less than Three Hundred Thousand Dollars ($300,000.00) (“minimum Continuing
Royalty”) in respect of eighty-eight (88) International House of Pancakes
Restaurants operated or subfranchised by Franchisee as of December 31, 1987,
(“existing units”), Franchisee will lose one (1) year of any extension of the
term hereof earned by Franchisee pursuant to

 

4

 

Section 4.06 below;
provided, however:

 

(a) Franchisee can avoid any
such loss of extension(s) earned pursuant to Section 4.06 below by paying to
Franchisor within ninety (90) days of the end of its fiscal year the difference
between Three Hundred Thousand Dollars ($300,000.00) and the amount of
Continuing Royalty actually paid in respect of such fiscal year; and

 

(b) the Three Hundred
Thousand Dollar ($300,000.00) per annum minimum Continuing Royalty as stated
above shall be reduced by the amount of the last full year’s royalty paid in
respect of any existing unit(s) lost as a result of condemnation, eminent
domain, any government action, or unforeseeable “Acts of God;” and

 

(c) there shall be no
minimum Continuing Royalty whatsoever from and after October 1, 1997.

 

4.02 Advertising Fee. In
addition to Franchisee’s obligation to pay a Continuing Royalty as set forth
above, Franchisee shall pay to Franchisor, for national advertising and for the
preservation, promotion and enhancement of the value of all franchises and
goodwill attached thereto, a sum equal to one- quarter of one percent (.25%) of
Franchisee’s monthly Gross Sales as hereinafter defined.

 

4.03 Payments. Payments of
said Continuing Royalty and the Advertising Fee for each monthly period shall
be due no later than forty-five (45) days after the day ending the month in
which such Gross Sales were earned. All such payments shall be accompanied by a
statement in such form and detail as shall be from time to time required by
Franchisor from its Franchisees, showing how such Continuing Royalty was
computed for such month, and accompanied by a copy of Franchisee’s monthly
sales tax reports. All payments measured by Gross Sales shall be accompanied
above by a statement of Gross Sales, itemized by restaurant location, certified
to be correct by Franchisee.

 

4.04 Definition of Gross
Sales. The term “Gross Sales,” as used in this Agreement, shall mean the total
revenues derived by Franchisee in and from all IHOP restaurants in the
Franchised Area, operated by virtue of this Agreement whether operated by
Franchisee or a subfranchisee (which restaurants are hereinafter referred to as
“Franchised Restaurants”), whether for cash sales of food and other merchandise
or otherwise (whether or not payment is received

 

5

 

therefor), or charge sales
thereof, or revenues from any source arising out of the operation of the
Franchised Restaurants, deducting therefrom: (a) all refunds and allowances, if
any; (b) any sales or excise taxes which are separately stated and which the Franchisee
or its subfranchisees collects from customers and pays to any federal, state or
local taxing authority; and (c) any amounts deposits in any vending machines or
pay telephones which are located in or about the Franchised Restaurants.

 

4.05 Records.

 

(a) Franchisee or its
subfranchisees shall record all sales on individual machine serial numbered
guest checks and shall keep and maintain accurate records thereof. Franchisee
shall cause all such sales to be registered upon a nonresettable cash register
of the type specified by Franchisor, having a lock-in running total, and shall,
at any time, at Franchisor’s sole discretion, provide to Franchisor or its
authorized representatives, a key to permit reading of the running total of the
cash register.

 

(b) Franchisee shall keep
and preserve for a period of not less than thirty-six (36) months after the end
of each calendar year or any longer period as may be required by applicable
law, all business records, including, but not limited to, cash register tape readings,
standardized numbered guest checks, sales tax or other tax returns, bank books,
and other evidence of Gross Sales and business transactions for such year.
Franchisor shall have the right at any time, notwithstanding the terms
contained in Paragraph 5.04, to enter Franchisee’s or its subfranchisees’
premises to inspect, audit and make or request copies of books of account, bank
statements, documents, records, tax returns, papers and files of Franchisee
relating to Gross Sales and business transacted and, upon request by
Franchisor, Franchisee shall make any such materials available for inspection
at Franchisee’s premises. If Franchisor should cause an audit to be made and
the Gross Sales and business transacted as shown by Franchisee’s statements should
be found to be understated by any amount, Franchisee shall immediately pay to
Franchisor the additional amount payable as shown by such audit, plus interest
thereon at the highest rate of interest allowed by law, and if they are found
to be understated by two percent (2%) or more, Franchisee shall also
immediately pay to Franchisor the cost of such audit; otherwise, the cost of
the audit shall be paid by Franchisor. If

 

6

 

Franchisee should at any
time cause an audit of Franchisee’s business or any IHOP restaurant operated by
Franchisee or any subfranchisee of Franchisee to be made by a public
accountant, Franchisee shall furnish the Franchisor with a copy of said audit,
without any cost or expense to the Franchisor.

 

(c) Franchisee agrees to
allow Franchisor access to the state, federal and local income tax returns of
the Franchisee and Franchisee hereby waives any privilege pertaining thereto.

 

(d) Within forty-five (45)
days after the expiration of each three (3) month period, franchisee shall
furnish Franchisor with Franchisee’s unaudited profit and loss statement for
such quarter and within one hundred eighty (180) days after the end of each
fiscal year, Franchisee shall furnish Franchisor with an audited profit and
loss statement and balance sheet of Franchisee for such fiscal year. All such
financial statements shall be prepared in accordance with Generally Accepted
Accounting Principles (“GAAP”) consistently applied from applicable period to
period and shall be certified by Franchisee’s Chief Executive Officer or Chief
Financial Officer, as being true and correct, and as being prepared in
accordance with GAAP consistently applied from applicable period to period. All
such financial statements shall all comply with any specific requirements as
Franchisor may from time to time designate. Franchisee hereby irrevocably
consents to Franchisor’s use of said financial statements, at Franchisor’s
election, in Franchisor’s offering circular for the offer and sale of
franchises.

 

4.06 Extensions of Term: For
each International House of Pancakes Restaurant (in excess of the eighty-eight
(88) International House of Pancakes Restaurants operated or subfranchised by
Franchisee as of December 31, 1987,) opened for operation, directly or through
a subfranchisee, by Franchisee from and after the date of execution hereof
through June 30, 1993, two (2) years shall be added to the term hereof. For
each such restaurant opened for operation, directly by Franchisee or through a
subfranchisee, by Franchisee for the period beginning July 1, 1993, and ending
June 30, 2003, a period of one (l} year shall be added to the term hereof. For
each such unit opened for operation, directly or through a subfranchisee, by
Franchisee from and after July 1, 2003, a period of six (6) months shall be
added to the term hereof. Additionally, in respect of a net of five (5) units
which were added to the

 

7

 

International House of
Pancakes Restaurants operated or subfranchised by Franchisee for the period
from January 1, 1987, through December 31, 1987, a period of five (5) years
shall be and is hereby added to the term hereof.

 

V

 

DUTIES OF FRANCHISEE

 

5.01 Compliance with Laws
and Operations Bulletins. Franchisee shall, and shall cause its subfranchisees
to, operate the Franchised Restaurants in strict compliance with all applicable
laws, rules and regulations of duly constituted governmental authorities and in
strict compliance with the standard procedures, policies, rules and regulations
established by Franchisor and incorporated herein, or in Franchisor’s
Operations Bulletins. Such standard procedures, policies, rules and regulations
established by Franchisor may be revised from time to time as circumstances
warrant, and may exist from time to time as though they were specifically set
forth in this Agreement, and when incorporated in Franchisor’s Operations
Bulletins, the same shall be deemed incorporated herein by reference. By way of
illustration and without limitation, such standard procedures, policies, rules
and regulations may or will specify accounting records and information, payment
procedures, specifications for required supplies and purchases, including
Trademarked Products, hours of operation (which may vary from location to
location), advertising and promotion, cooperative programs, specifications
regarding required insurance, minimum standards and qualifications for
employees, design and color of uniforms, menu items, methods of production and
food presentation, including the size and serving thereof, standards of
sanitation, maintenance and repair requirements, specifications of furniture,
fixtures and equipment, flue cleaning, and fire prevention service, appearance
and cleanliness of premises, accounting and inventory methods and controls,
forms and reports, and in general will govern all matters that, in Franchisor’s
judgment, require standardization and uniformity in all IHOP restaurants.
Franchisor will furnish Franchisee with Franchisor’s current Operations
Bulletins upon the execution of this Agreement. Said Operations Bulletins and
all notices, amendments and supplements relating thereto shall at all times
remain the property of Franchisor. Upon termination or expiration of this Agreement,
Franchisee shall deliver all copies of said Operations Bulletins to Franchisor.
Franchisee further acknowledges that said

 

8

 

Operations Bulletins contain
trade secrets of Franchisor and Franchisee shall, and shall cause its
subfranchisees to, at all times maintain as confidential the contents of said
Operations Bulletins. Franchisee shall not, and shall not permit subfranchisees
to, vary any of such standard procedures without Franchisor’s prior written consent.
If a variance is required, on account of local conditions or otherwise, such
consent will not be unreasonably withheld.

 

5.02 Subfranchisees. From
and after the date of execution hereof, all agreements between Franchisee and
its subfranchisees shall be made expressly subject to the provisions of this
Agreement, including the right of Franchisor to terminate for cause. Franchisee
shall deliver to Franchisor a true copy of each such agreements when it is
executed. In addition, Franchisee shall deliver to Franchisor a true copy of
each Franchise Offering Circular prepared by Franchisee for its prospective
subfranchisees.

 

5.03 Location. Franchisee
shall keep Franchisor currently informed as to the location of each restaurant
operated or subfranchised.

 

5.04 Inspection. Franchisee
expressly authorizes Franchisor and its authorized agents and representatives
to enter any IHOP restaurant in the Franchised Area, to inspect the premises,
fixtures, furnishings, equipment, books, and records of any restaurant operated
by Franchisee or any of its subfranchisees at any time said restaurant is open
for business, without notice, and to examine and inspect the operations in all
respects to determine compliance with this Agreement and with Franchisor’s
Standard Operating Procedures, rules, policies, and regulations. All records,
including cash register readings, relating to Gross Sales shall be preserved
for at least three (3) years.

 

Franchisee shall inspect the
operations of its subfranchisees at frequent intervals, and shall take such
action, including legal proceedings, as may be necessary to correct any breach
or nonconformity with Franchisor’s standard procedures, policies, rules or
regulations.

 

5.05 Indemnification of
Franchisor. Franchisee shall indemnify Franchisor and hold it harmless from any
claims, demands, causes of action, costs or expenses of any kind arising out of
any act or omission of Franchisee or of any of its subfranchisees.

 

5.06 Sales and Service of
Food Products. Franchisee and its subfranchisees shall sell, serve and dispense
only those items and products as

 

9

 

shall be designated by
Franchisor in the Operations Bulletins. In connection therewith, the parties
agree that Franchisor may, from time to time, recommend or suggest the prices
to be charged by Franchisee or its subfranchisees for each menu item sold or
offered at IHOP restaurants; and, for purposes of economy and cost saving to
those Franchisees who elect to follow such recommendations, may cause the
production of prepriced menus and standardized numbered guest checks which
Franchisor shall offer for sale to Franchisee. Such recommended or suggested
prices are not binding in any respect upon Franchisee or its subfranchisees,
and Franchisee and its subfranchisees are and shall be at all times, free to
charge prices entirely of its or their own choosing, regardless of whether the
same do or do not conform to the recommended or suggested prices. Franchisee
and its subfranchisees shall not be required to use or to purchase any
prepriced menus or prepriced standardized number guest checks, and shall be
entirely free to procure menus and standardized numbered guest checks with
prices of its or their own choosing; provided, however, that such menus and
standardized numbered guest checks shall, in all respects except as to prices,
strictly comply with the specifications therefor contained in the Operations
Bulletins.

 

5.07 Required Purchases of
Proprietary Products.

 

(a) Franchisee and its
subfranchisees shall purchase only from Franchisor (if offered directly to
Franchisees by Franchisor) or from Franchisor approved distributors who have
purchased such products from Franchisor, all of their requirements for
buckwheat flour, waffle mix, egg batter, buttermilk mix, and such other future
products as may then be required by Franchisor, all of which embody and shall
embody secret formulas owned by the Franchisor (collectively referred to as
“Required Products”). Franchisor shall not charge Franchisee a price (exclusive
of freight charges) in excess of that charged approved distributors for
required products, provided that geographic price differences cannot be invoked
to reduce Franchisor’s net profit in respect of required products.

 

(b) For purposes of insuring
consistency and uniformity of product, Franchisee and its subfranchisees shall
purchase only from Franchisor (if offered directly to Franchisees by
Franchisor) or from Franchisor designated suppliers, all of their requirements
for coffee. Further, Franchisee or its

 

10

 

subfranchisees shall
purchase only such blends of coffee as Franchisor shall from time to time
designate.

 

(c) Except as provided in
Paragraphs 5.07(a) and (b), Franchisee and its subfranchisees shall purchase
for use in the operation of the Franchised Restaurants certain products which
bear IHOP Trademarks that may include, as provided in the Operations Bulletins,
dishware, silverware, napkins, placemats, coasters and other items (herein
referred to as “Trademarked Products”). All such required Trademarked Products
shall comply with the specifications set forth in the Operations Bulletins.
Franchisee or its subfranchisees may purchase Trademarked Products from
Franchisor, if made available by Franchisor, suppliers designated by
Franchisor, or suppliers chosen by Franchisee as provided in Paragraph 5.08
below, provided such suppliers execute a royalty free trademark license in a
form reasonably satisfactory to the Franchisor.

 

5.08 Compliance with
Franchisor’s Specifications.

 

(a) All food products,
services, supplies, equipment, and materials, including standardized numbered
guest checks and menus, permitted or required to be used in the operation of
the Franchised Restaurants shall be in full compliance with the specifications
set forth in the Operations Bulletins and, excepting only those items referred
to in Paragraphs 5.07 (a) and (b), shall be purchased and procured by
Franchisee and its subfranchisees from Franchisor (if offered by Franchisor),
or from suppliers designated by Franchisor, or from suppliers selected by
Franchisee and not disapproved in writing by Franchisor. With respect to each
supplier designated by Franchisor, such suppliers shall only be those who have
demonstrated, to the reasonable satisfaction of Franchisor, (i) the ability to
supply a product meeting the specifications of Franchisor, (ii) reliability
with respect to the quality of product or service, and (iii) willingness and
agreement to permit Franchisor to make periodic inspections, reasonable in
respect of frequency, time and manner of inspection, to assure continued
conformity to specifications.

 

(b) In the event that
Franchisee or any of its subfranchisees should desire to procure any food
product other than those described in Paragraphs 5.07(a) and (b), service,
supply, equipment, or material from any supplier other than Franchisor or a
supplier designated by Franchisor, Franchisor shall, upon request of
Franchisee, furnish to Franchisee specifications, by established brand name
wherever possible, for all such times. Franchisee shall deliver

 

11

 

written notice to Franchisor
of its desire to do so, which notice shall identify the name and address of
such supplier and the items desired to be purchased from such supplier. Should
Franchisor not deliver to Franchisee, within ten (10) days after its receipt of
such notice, a written statement of disapproval with respect to such supplier,
it shall be deemed that such supplier is approved by Franchisor as a supplier
of the goods described in the notice until such time as Franchisor may
subsequently withdraw such approval. Franchisor shall be entitled to disapprove
or to subsequently withdraw its approval of any supplier selected by Franchisee
only upon the ground that such supplier has failed to meet one or more of the
requirements hereinabove set forth. Once Franchisee has delivered a notice of
its desire to purchase the specified items from any such supplier, it shall be
entitled to purchase same from such supplier until it shall have received a
timely statement of disapproval from Franchisor; provided, however, that should
Franchisee designate a supplier in any such notice who shall previously have
been disapproved by Franchisor, it shall not be permitted to purchase from such
supplier unless and until the ten (10) day period from delivery of such notice
shall have expired without delivery from Franchisor of a statement of
disapproval.

 

(c) In some instances, the
Franchisor’s specifications may be such that only a single supplier or a
limited number of suppliers can meet such specifications. With respect to such
products, Franchisee shall purchase such products only from the source or
sources designated by Franchisor.

 

5.09 Insurance.

 

(a) Franchisee agrees to
procure and maintain at Franchisee’s or its subfranchisees’ expense during the
term hereof, policies of liability insurance meeting minimum standards,
coverages, and limits and insuring Franchisee or its subfranchisees against the
insurable risks prescribed in Franchisor’s Operations Bulletins. All such
policies of liability insurance shall name Franchisor and such other nominees
of Franchisor as it may designate as additional insureds, as their interests
may appear.

 

(b) If Franchisee fails or
refuses to purchase insurance conforming to the requirements prescribed by the
Operations Bulletins, Franchisor may but shall not be obligated to obtain,
through agents and insurance companies of its own choosing, such insurance as
is necessary to meet

 

12

 

such requirements. Payments
for such insurance shall be borne by Franchisee. Nothing herein shall be
construed or deemed to impose any duty or obligation on Franchisor to obtain
such insurance or as an undertaking or representation by Franchisor that such
insurance as may be obtained by Franchisee or by Franchisor for Franchisee will
insure Franchisee against any or all insurable risks of loss which may or can
arise out of, or in connection with the Franchised Restaurants. Franchisee may
obtain such other or additional insurance as Franchisee deems proper in
connection with the operation of its business.

 

5.10 Taxes. Franchisee
agrees to pay and to cause its subfranchisees to pay in full any and all city,
county, state and federal taxes arising in connection with or levied or
assessed by any of said governmental bodies in connection with all or any part
of this Agreement, or the operation of any IHOP restaurant in the Franchised Area,
or all or any of the merchandise and assets being sold hereunder, promptly when
due, and prior to any delinquency.

 

VI

 

TRADEMARKS

 

6.01 Nature of Grant.
Franchisor hereby grants to Franchisee and its subfranchisees, and Franchisee
hereby accepts, the right, during the term hereof, upon the terms and
conditions contained herein, to use and display IHOP service marks, Trademarks,
trade names and insignia and the labels and designs pertaining thereto (herein
called the “Trademarks”), and to use Franchisor’s trade secrets, formulae,
processes, methods of operation and goodwill, but only in connection with the
retail sale at IHOP restaurants in the Franchised Area of those items contained
on the standard menu of IHOP restaurants as established in the Operations
Bulletins from time to time. Nothing herein shall give Franchisee or its
subfranchisees any right, title or interest in or to said service marks,
Trademarks, trade names, insignia, labels or designs, trade secrets, formulae,
processes, methods of operation or goodwill, or any of the same except a mere
privilege and license, during the term hereof, to display and use the same
according to the foregoing limitations and upon the terms, covenants and
conditions contained herein. Upon the expiration or termination of this
Agreement for any reason, Franchisee and its subfranchisees shall deliver and
surrender up to Franchisor each and all manuals, bulletins, instruction sheets,
forms, marks, devices, and Trademarks, and shall not

 

13

 

thereafter use any of the
same or any such trade secrets, formulae, processes, methods of operation,
goodwill, or any of them; provided Franchisor shall purchase from Franchisee
and its subfranchisees at a price equal to Franchisee’s book value, consisting
of Franchisee’s cost therefor less depreciation computed in accordance with
GAAP, paper goods, dishes, and other similar, small items of personal property
purchased by Franchisee and its subfranchisees in the ordinary course of their
business which are, in Franchisor’s reasonable judgment, in good, usable
condition, and which bear any Trademarks of Franchisor. Franchisee acknowledges
that the material and information now and hereafter provided or revealed to it
pursuant to this Agreement are revealed in confidence and Franchisee expressly
agrees to keep and respect the confidence so reposed. Nothing herein contained
shall be construed so as to require Franchisor to divulge any secret processes,
formulae or ingredients. Franchisor expressly reserves all rights with respect
to IHOP’s goods, products, Trademarks, trade secrets, formulae, processes,
ingredients and methods of operation, except as may be expressly granted to
Franchisee herein.

 

6.02 Acts in Derogation of
Franchisor’s Trademark.

 

(a) Franchisee agrees that,
as between Franchisor and Franchisee, the Trademarks of Franchisor are the sole
and exclusive property of Franchisor and Franchisee now asserts no claim and
will hereafter assert no claim to any goodwill, reputation or ownership thereof
by virtue of Franchisee’s licensed use thereof. Franchisee agrees that it will
not do or permit any act or thing to be done in derogation of any of the
Franchisor’s rights in connection with the same, either during the term of this
Agreement or thereafter, and that it will use same only for the uses and in the
manner licensed hereunder and as herein provided.

 

(b) From and after the date
of execution hereof, Franchisee shall not use, or permit the use by
subfranchisees, as part of the name of any Franchisee or subfranchisee
corporation, the phrases “IHOP,” “International House of Pancakes,” “House of
Pancakes,” or any phrase or combination of words confusingly similar thereto.

 

6.03 Prohibition Against
Disputing Franchisor’s Rights. Franchisee agrees that it will not, during or
after the term of this Agreement, in any way, dispute or impugn the validity of
the Trademarks licensed hereunder, or the rights of Franchisor thereto, or the
right of Franchisor and other franchisees

 

14

 

of Franchisor to use the
same both during the term of this Agreement and thereafter.

 

6.04 Use of Franchisor’s
Name. Franchisee agrees that the restaurants herein franchised shall be named
the “International House of Pancakes” or “International House of Pancakes
Restaurant,” as specified by Franchisor, without any suffix or prefix attached
thereto and all signs, advertising and slogans will only bear the name
“International House of Pancakes,” or “International House of Pancakes
Restaurant,” or such other Trademarks as Franchisor may hereafter specify in
its Operations Bulletins. Franchisee shall and shall cause its subfranchisees
to use Franchisee’s or its subfranchisees’ correct name on all invoices,
orders, vouchers, checks, letterheads, and other similar materials, identifying
the franchise as being a franchise of Franchisor which is independently owned
and operated by Franchisee or its subfranchisee(s).

 

6.05 Relationship of
Franchisee to Franchisor. It is expressly agreed that the parties intend by
this Agreement to establish between Franchisor and Franchisee the relationship
of Franchisor and Franchisee, and that it is not the intention of either party
to undertake a joint venture or to make Franchisee or any of its subfranchisees
in any sense an agent, partner, employee or affiliate of Franchisor. It is
further agreed that Franchisee has no authority to create or assume in
Franchisor’s name or on behalf of Franchisor any obligation, express or
implied, or to act or purport to act as agent or representative on behalf of
Franchisor for any purpose whatsoever.

 

VII

 

ASSIGNMENT

 

7.01 Assignment by
Franchisee. Franchisee shall have the right to assign this Agreement, entirely
or partially, to any party only with the prior written consent of Franchisor,
which shall not be unreasonably withheld. Any sale, assignment or other
transfer in the aggregate of more than forty-nine percent (49%) of the stock of
Franchisee shall be deemed an assignment hereunder, except that transfers among
CORINNE FINKEL, LESLIE FREEDMAN, NATHAN FINKEL and MARTIN B. FREEDMAN and their
children shall not be prohibited.

 

15

 

VIII

 

REMEDIES FOR BREACH

 

8.01 Strict Performance.
Franchisee acknowledges that strict performance of all of the terms of this
Agreement is necessary not only for the protection of Franchisor but also for
the protection of all operators of International House of Pancakes Restaurants.
It is therefore agreed that strict and exact performance by Franchisee of each
of its promises, covenants, and obligations hereunder is a condition precedent
to the continuance of this franchise.

 

8.02 Right of Termination
After Notice of Default. If Franchisee shall be in default in the performance
of any of the terms of this Agreement, and such default shall not be cured
within thirty (30) days after it shall be determined that there is a default as
hereinafter provided, or if bankruptcy, debtor, or insolvency proceedings are
commenced by or against Franchisee, or if Franchisee makes an assignment for
benefit of creditors, or if a receiver is appointed to take possession of the
business of Franchisee, or if Franchisee transfers a substantial part of its
business voluntarily without Franchisor’s consent or involuntarily, then in any
such event, in addition to all other remedies it may have at law or in equity,
Franchisor may terminate this Agreement.

 

8.03 Franchisee’s
Obligations Upon Termination. Upon termination of this Agreement, whether by
lapse of time, default, or other cause, Franchisee shall immediately
discontinue all use of Franchisor’s trade name, trade secrets, and procedures,
shall assign to Franchisor all rights (excluding those in equipment, tangible
personal property and real estate holdings) it may have in or to its Agreements
with its subfranchisees, shall remove from its own restaurants, at its sole
cost and expense, all signs, decor and decoration characteristic of
Franchisor’s operations, and shall not thereafter operate or do business under
any name or in any manner that might tend to give the general public the
impression that it is dispensing, selling, or serving any of Franchisor’s
products, or that it is operating a restaurant similar to an “International
House of Pancakes.” Franchisee expressly recognizes and acknowledges the right
of Franchisor at its election and in addition to all other remedies, to obtain
a permanent injunction to enforce the foregoing

 

16

 

provisions.

 

Expiration or termination of
this Agreement shall be without prejudice to the rights of Franchisor against
Franchisee, nor shall such expiration or termination relieve Franchisee of any
of its obligations to Franchisor existing at the time of expiration or termination.

 

8.04 Form of Notice. A
default by Franchisee shall be determined in the following manner: Franchisor
shall give notice, in writing, to Franchisee of any claimed default in the
performance of this Agreement. Franchisee shall perform the work required or
otherwise comply with Franchisor’s demands within thirty (30) days after the
mailing of such written notice. If the default shall be other than in the
payment of money, and if it shall be of such a nature that it cannot reasonably
be cured within said thirty (30) day period, then Franchisee shall commence to
cure said default within said thirty (30) day period and shall diligently
proceed to do such acts as may be necessary to cure said default. If Franchisee
shall in good faith believe that it is not in default as claimed by Franchisor,
it shall within said thirty (30) day period proceed to initiate an arbitration
proceeding as provided in Article IX hereof. If Franchisee shall neither cure
the default nor initiate arbitration within the period aforementioned, then the
existence of the default shall be deemed conclusively determined. If Franchisee
shall initiate arbitration, the default shall not be deemed determined until
the arbitration shall have been completed and the Franchisee shall have failed
to perform the arbitrator’s award in the time specified by the arbitrator.

 

8.05 Conformity With Laws.
If any law or regulation by any competent authority with jurisdiction over this
Agreement shall limit Franchisor’s rights of termination or require a longer or
different notice than that specified in this Article VIII, same shall be deemed
amended to conform with the minimum requirements of such law or regulation.

 

IX

 

ARBITRATION AND REMEDIES

 

9.01 Arbitration. Any
controversy or claim arising out of or relating to this Agreement, or any
agreement relating thereto, or any breach of this Agreement including without
limitation any claim that this Agreement or any portion thereof is invalid,
illegal or otherwise voidable, shall be submitted to

 

17

 

arbitration before and in
accordance with the rules of the American Arbitration Association provided that
the jurisdiction of the arbitrators shall be limited to a decision rendered
pursuant to California common and statutory law and judgment upon the award may
be entered in any court having jurisdiction thereof; provided, however, that
this clause shall not limit Franchisor’s right to obtain any provisional
remedy, including without limitation injunctive relief or similar relief, from
any court of competent jurisdiction, as Franchisor deems to be necessary or
appropriate in Franchisor’s sole subjective judgment, to compel Franchisee to
comply, or to prohibit Franchisee’s noncompliance, with its obligations
hereunder, or to protect the Trademarks or other property rights of Franchisor.
Franchisor may, as part of such action or proceeding, seek damages, costs and
expenses caused to or incurred by it by reason of the act or action or
nonaction of Franchisee which caused Franchisor to institute such action or
proceeding. The institution of any such action or proceeding by Franchisor
shall not be deemed a waiver on its part to institution of an arbitration
proceeding pursuant to the provisions of this Article.

 

X

 

RIGHT TO CURE DEFAULTS

 

10.01 General. In addition
to all other remedies herein granted, if Franchisee shall default in the
performance of any of its obligations or breach any term or condition of this
Agreement or any related agreement, Franchisor may, at its election, immediately
or at anytime thereafter, without waiving any claim for breach hereunder and
without notice to Franchisee cure such default for the account and on behalf of
Franchisee, and the cost to Franchisor thereof shall be due and payable on
demand and shall be deemed to be additional compensation due to Franchisor
hereunder and shall be added to the amount of compensation next accruing
hereunder, at the election of Franchisor.

 

XI

 

SERVICE OF PROCESS

 

11.01 General. Franchisee,
by the execution and delivery hereof, hereby irrevocably authorizes and confers
power on The Prentice Hall Corporation System, Inc., at Los Angeles,
California, to accept in the name and on behalf of Franchisee service of
process issued in any action or proceeding instituted

 

18

 

against Franchisee by
Franchisor pertaining directly or indirectly to this Agreement or any matter
arising therefrom. A copy of any such process shall be mailed to Franchisee by
registered mail. Time to answer shall be according to California law.

 

XII

 

OBLIGATIONS UPON TERMINATION

 

12.01 General. In the event
of the termination or expiration of this Agreement for whatever reason, the
Franchisee and its subfranchisees shall forthwith discontinue the use of the Franchisor’s
Trademarks and shall not thereafter operate or do business under any name or in
any manner that might tend to give the general public the impression that they
are either directly or indirectly associated, affiliated, franchised or
licensed by or related to, the IHOP restaurant system, and shall not, either
directly or indirectly, use any name, logotype, symbol or format confusing
similar to the IHOP Trademarks or formats. In addition, since Franchisor’s
restaurants have a distinctive color scheme, Franchisee shall promptly upon
demand by Franchisor repaint or cause its subfranchisees to repaint the IHOP
restaurants, if Franchisee retains control thereof, in a different color
scheme. Further, upon such expiration or termination, the Franchisee and its
subfranchisees shall not, either directly or indirectly, for any purpose
whatsoever, use any of the Franchisor’s trade secrets, procedures, techniques,
or materials acquired by the Franchisee by virtue of the relationship created
by this Franchise Agreement, including, but without limitation, (a) recipes,
formulae and descriptions of food products; (b) the Operations Bulletins and
all manuals, bulletins, instruction sheets, and supplements thereto; (c) all
forms, advertising matter, marks, devises, insignias, slogans and designs used
from time to time in connection with IHOP restaurauts; and (d) all copyrights,
Trademarks and patents now or hereafter applied for or granted in connection
with the operation of IHOP restaurants.

 

XIII

 

NON-COMPETITION

 

13.01 General. Franchisee
shall not during the term of this Agreement, or any extension or renewal
thereof, directly or indirectly, own, operate, control or have any financial
interest in any pancake house or coffee shop with more than three (3) varieties
of pancakes and shall devote its best efforts to the International House of
Pancakes restaurant system. The foregoing prohibition

 

19

 

shall not apply to ownership
by Franchisee of less than three percent (3%) of the issued and outstanding
stock of any company whose shares are listed for trading over any public
exchange or over-the-counter market and whose business includes the owning,
operating, or franchising of pancake houses, or coffee shops, with more than three
(3) varieties of pancakes, provided Franchisee does not control any such
company. Franchisee also agrees that it will not at any time communicate,
divulge, or use for the benefit of itself or any other person or entity, other
than in the course of conduct of the restaurant franchised hereunder, any
information or knowledge which it may have acquired in connection with the
operation of the Franchised Restaurants, and that it will not do any act
prejudicial or injurious to the business or goodwill of Franchisor, or any
other IHOP franchisee.

 

XIV

 

INDEMNITY BY FRANCHISEE

 

14.01 General. Franchisee
agrees to defend, indemnify and hold Franchisor harmless from and against any
and all claims, demands, losses, damages, costs, liabilities and expenses
(including, but not limited to, attorneys’ fees and costs of suit) of whatever
kind or character, on account of any actual or alleged loss, injury or damage
to any person, firm or corporation or to any property arising out of or in
connection with the operation of the Franchised Restaurants.

 

XV

 

ENTIRE AGREEMENT

 

15.01 General. This
Agreement contains all of the terms and conditions agreed upon by the parties
hereto with reference to the specific subject matter hereof; provided, however,
that for purposes of default, with respect to any other agreements relating
hereto, which were entered into prior to, contemporaneously with, or subsequent
to the date hereof between Franchisee and Franchisor, or between Franchisee and
third parties, any material default thereof shall also be a material breach of
this Agreement. No officer or employee or agent of Franchisor has any authority
to make any representation or promise not contained in this Agreement, and
Franchisee agrees that it has executed this Agreement without reliance upon any
such representation or

 

20

 

promise. This Agreement
cannot be modified or changed except by written instrument expressly referring
to this Agreement, signed by all of the parties hereto.

 

XV

 

SEVERABILITY

 

16.01 General. Nothing
contained in this Agreement shall be construed as requiring the commission of
any act contrary to law. Whenever there is any conflict between any provisions
of this Agreement or the Operations Bulletins and any present or future
statute, law, ordinance, regulation, or judicial decision, contrary to which
the parties have no legal right to contract, the latter shall prevail, but in
such event the provision of this Agreement or the Operations Bulletins thus
affected shall be curtailed and limited only to the extent necessary to bring
it within the requirements of the law. In the event that any part, Article,
paragraph, sentence or clause of this Agreement or the Operations Bulletins
shall be held to be indefinite, invalid or otherwise unenforceable, the
indefinite, invalid or unenforceable provision shall be deemed deleted, and the
remaining part of the Agreement shall continue in full force and effect, unless
said provision pertains to the payment of fees, pursuant to Article IV hereof,
in which case this Agreement shall, at Franchisor’s option, terminate.

 

XVII

 

WAIVER AND DELAY

 

17.01 General. No waiver by
Franchisor of any breach or series of breaches or defaults in performance by
Franchisee and no failure, refusal or negiect of Franchisor either to exercise
any right, power or option given to it hereunder or to insist upon strict
compliance with or performance of Franchisee’s obligations under this Agreement
or the Operations Bulletins, shall constitute a waiver of the provisions of
this Agreement or the Operations Bulletins with respect to any prior,
concurrent or subsequent breach thereof or a waiver by Franchisor of its rights
at any time thereafter to require exact and strict compliance with the
provisions thereof.

 

21

 

XVIII

 

SURVIVAL OF COVENANTS

 

18.01 General. The covenants
contained in this Agreement which by their terms require performance by the
parties after the expiration or termination of this Agreement shall be enforceable
notwithstanding said expiration or other termination of this Agreement for any
reason whatsoever.

 

XIX

 

SUCCESSORS AND ASSIGNS

 

19.01 General. This
Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Franchisor and shall be binding upon and inure to the benefit of
the Franchisee and its or their respective heirs, executors, administrators,
successors and assigns, subject to the restrictions on assignment contained
herein.

 

XX

 

JOINT AND SEVERAL LIABILITY

 

20.01 General. If the
Franchisee consists of more than one person or entity, or a combination
thereof, the obligations and liabilities of each such person or entity to the
Franchisor are joint and several.

 

XXI

 

GOVERNING LAW

 

21.01 General. This Agreement
and the legal relations among the parties hereto shall be governed by and
construed in accordance with the laws of the State of California without giving
effect to conflict of laws.

 

XXII

 

COUNTERPARTS

 

22.01 General. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which together shall be deemed to be one
and the same instrument.

 

XXIII

 

FEES AND EXPENSES

 

23.01 General. Should any
party hereto commence any action or proceeding for the purpose of enforcing, or
preventing the breach of, any

 

22

 

provision hereof, whether by
arbitration, judicial or quasi-judicial action or otherwise, or for damages for
any alleged breach of any provision hereof, or for a declaration of such
party’s rights or obligations hereunder, or commence any appeal therefrom, then
the prevailing party shall be reimbursed by the losing party for all costs and
expenses incurred in connection herewith, including, but not limited to,
reasonable attorneys’ fees for the services rendered to such prevailing party.

 

XXIV

 

NOTICES

 

24.01 General. All notices
which Franchisor is required or may desire to give to Franchisee under or in
connection with this Agreement may be delivered to Franchisee or may be sent by
certified or registered mail, postage prepaid, addressed to Franchisee at 2655
N. E. 189th Street, North Miami Beach, Florida 33180, Attention: Chief
Operating Officer.

 

All notices which Franchisee
is required or may desire to give to Franchisor under or in connection with
this Agreement, must be sent by certified or registered mail, postage prepaid,
addressed to Franchisor as follows:

 

General Counsel

International House of
Pancakes, Inc.

 

6837
Lankershim Boulevard

North
Hollywood, California 91605

 

The addresses herein given
for notice may be changed at any time by either party by written notice given
to the other party as herein provided. Notices shall be deemed effective five
(5) days after deposit in the United States mails.

 

XXV

 

SUBMISSION OF AGREEMENT

 

25.01 General. The
submission of this Agreement does not constitute an offer, and this Agreement
shall become effective only upon the execution thereof by the Franchisor and
the Franchisee. THIS AGREEMENT SHALL NOT BE BINDING ON THE FRANCHISOR UNLESS
AND UNTIL IT SHALL HAVE BEEN ACCEPTED AND SIGNED BY AN AUTHORIZED OFFICER OF
THE FRANCHISOR. THIS AGREEMENT SHALL NOT BECOME EFFECTIVE UNTIL AND UNLESS THE
FRANCHISEE SHALL HAVE RECEIVED A FRANCHISE OFFERING CIRCULAR IN SUCH FORM AND
MANNER AS MAY BE REQUIRED UNDER OR PURSUANT

 

23

 

TO
APPLICABLE LAW.

 

IN WITNESS WHEREOF, the
Franchisor and the Franchisee have caused this Agreement to be executed as of
the day and year written below.

 

 

	
  WITNESSES:

  	
  FRANCHISOR

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL HOUSE OF PANCAKES, INC.

  
	
  /s/ Catherine P. Celano

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Richard K. Herzer

  	
   

  
	
  /s/ Joseph J. London

  	
   

  	
   

  	
  RICHARD K. HERZER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its: 
  President    Date: 4-27-88

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ATTEST:

  	
  /s/ Larry Kay

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LARRY KAY, SECRETARY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (CORPORATE SEAL)

  
							

 

 

I HEREBY ACKNOWLEDGE THAT AT
MY FIRST PERSONAL MEETING WITH FRANCHISOR, AT LEAST TEN (10) BUSINESS DAYS
PRIOR TO THE DATE THAT I HAVE EXECUTED THIS AGREEMENT, OR HAVE PAID ANY
CONSIDERATION THEREFOR, I RECEIVED, AND HAVE SINCE READ, THE FRANCHISOR’S
UNIFORM FRANCHISE OFFERING CIRCULAR; I HEREBY ALSO ACKNOWLEDGE THAT I RECEIVED
A COMPLETELY PREPARED COPY OF THIS AGREEMENT MORE ThAN FIVE (5) BUSINESS DAYS
PRIOR TO THE DATE I HAVE EXECUTED SAME.

 

	
  WITNESSES:

  	
  FRANCHISEE

  
	
   

  	
   

  
	
   

  	
  FMS MANAGEMENT SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Charlene A. Kirsch

  	
   

  	
  BY:

  	
   /s/ Nathan Finkel

  	
   

  
	
   

  	
   

  	
  NATHAN FINKEL

  
	
   

  	
   

  
	
  /s/ Valerie A. Slaughter

  	
   

  	
  Its:  Vice
  President    Date: May 5, 1988

  
	
  (As to NATHAN FINKEL)

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   /s/ Martin B. Freedman

  	
   

  
	
   

  	
   

  	
  MARTIN B. FREEDMAN

  
	
   

  	
   

  
	
   

  	
  Its:  Vice
  President  Date: May 5, 1988

  
	
   

  	
   

  
	
  /s/ Charlene A. Kirsch

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Valerie A. Slaughter

  	
   

  	
  ATTEST:

  	
   /s/ Mary DeJesus

  	
   

  
	
  (As to Martin B. Freedman)

  	
   

  	
  MARY DEJESUS, Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (CORPORATE SEAL)

  
							

 

24

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