Document:

Exhibit
      10.1

    

    SHARE
      PURCHASE AGREEMENT

     

    This
      Share Purchase Agreement (this "Agreement")
      is
      dated as of April 22, 2008, among SECURED DIGITAL STORAGE CORPORATION., a New
      Mexico corporation (the "Company"),
      and
      the investors identified on the signature pages hereto (each, an "Investor"
      and
      collectively, the "Investors").

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      Section 4(2) of the Securities Act, the Company desires to issue and sell to
      each Investor, and each Investor, severally and not jointly, desires to purchase
      from the Company certain securities of the Company, as more fully described
      in
      this Agreement.

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
      and for other good and valuable consideration the receipt and adequacy of which
      are hereby acknowledged, the Company and the Investors agree as
      follows:

     

    ARTICLE
      I.

    DEFINITIONS

     

    1.1 Definitions.
      In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms shall have the meanings indicated in this
      Section 1.1:

     

    "Action"
      means
      any action, claim, suit, inquiry, notice of violation, proceeding or
      investigation pending or threatened in writing against or affecting the Company
      or any of its properties before or by any court, arbitrator, governmental or
      administrative agency, regulatory authority (federal, state, county, local
      or
      foreign), stock market, stock exchange or trading facility.

     

    "Affiliate"
      means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person, as such
      terms are used in and construed under Rule 144.

     

    "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday or a day on which banking institutions in the State of Illinois are
      authorized or required by law or other governmental action to
      close.

     

    "Closing"
      means
      the closing of the purchase and sale of the Shares pursuant to Article
      II.

     

    "Closing
      Date"
      means
      the date of the Closing.

     

    "Commission"
      means
      the Securities and Exchange Commission.

     

    "Common
      Stock"
      means
      the Common Stock of the Company, no par value per share. 

     

    "Common
      Stock Equivalents"
      means
      any options, warrants, rights to subscribe to, calls or commitments of any
      character whatsoever relating to, or securities (debt or equity), rights or
      obligations convertible into or exchangeable for, or giving any Person any
      right
      to subscribe for or acquire, directly or indirectly, any shares of Common Stock,
      or contracts, commitments, understandings or arrangements by which the Company
      is or may become bound to issue additional shares of Common Stock at any time.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

     

    "Investment
      Amount"
      means,
      with respect to each Investor, the investment amount indicated below such
      Investor's name on the signature page of this Agreement.

     

    "Lien"
      means
      any lien, charge, encumbrance, security interest, right of first refusal or
      other restrictions of any kind.

     

    "Per
      Share Purchase Price"
      equals
      $.80 and applies to each Share. 

     

    "Person"
      means an
      individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

    "Rule
      144"
      means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

     

    "Shares"
      means
      the shares of Common Stock issued or issuable to the Investors pursuant to
      this
      Agreement.

     

    "Subsidiary"
      means,
      with respect to any Person, any corporation, association or other business
      entity of which more than 50% of the total voting power of shares of stock
      or
      other equity interest entitled (without regard to the occurrence of any
      contingency) to vote in the election of directors, managers or trustees thereto
      is at the time owned or controlled, directly or indirectly, by that Person
      or
      one or more of the other Subsidiaries of that Person or a combination
      thereof.

     

    "Trading
      Day"
      means
      (i) a day on which the Common Stock is traded on a Trading Market, or (ii)
      if
      the Common Stock is not listed on a Trading Market, a day on which the Common
      Stock is traded in the over-the-counter market is quoted in the over-the-counter
      market as reported by the National Quotation Bureau Incorporated (or any similar
      organization or agency succeeding to its functions of reporting prices);
      provided, that in the event that the Common Stock is not listed or quoted as
      set
      forth in (i) or (ii) hereof, then Trading Day shall mean a Business
      Day.

     

    "Trading
      Market"
      means
      whichever of the New York Stock Exchange, the American Stock Exchange, the
      NASDAQ National Market, the NASDAQ SmallCap Market or OTC Bulletin Board on
      which the Common Stock is listed or quoted for trading on the date in
      question.

     

    "Transaction
      Documents"
      means
      this Agreement and any other documents or agreements executed in connection
      with
      the transactions contemplated hereunder.

     

    ARTICLE
      II.

    PURCHASE
      AND SALE

     

    2.1 Closing.
      Subject
      to the terms and conditions set forth in this Agreement, at the Closing the
      Company shall issue and sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company, the Closing Shares (as
      defined below), at the Per Share Purchase Price, representing such Investor's
      Investment Amount. The Closing shall take place at the offices of the Company,
      as soon as practicable after the date this Agreement is executed and delivered
      by the parties or at such other location or time as the parties may agree.
      In
      order to facilitate a timely Closing, each Investor hereby agrees to deliver
      its
      Investment Amount, in U.S. dollars and immediately available funds, to an escrow
      account designated by the Company promptly following its execution of this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.2 Closing
      Deliveries.
      

     

    (a) At
      the
      Closing, the Company shall deliver or cause to be delivered to each Investor
      a
      certificate evidencing a number of Shares (the "Closing Shares") equal to such
      Investor's Investment Amount divided by the Per Share Purchase Price, registered
      in the name of such Investor (or an instruction letter to the Company’s transfer
      agent to promptly issue such certificates).

     

    (b) At
      the
      Closing, each Investor shall deliver or cause to be delivered to the Company
      its
      Investment Amount, in United States dollars and in immediately available funds,
      by wire transfer to an account designated in writing by the Company for such
      purpose or by check.

     

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1 Representations
      and Warranties of the Company.
      The
      Company hereby makes the following representations and warranties to each
      Investor, except in each instance as otherwise disclosed in any reports filed
      by
      the Company with the Commission under the Securities Act and the Exchange
      Act:

     

    (a) Organization;
      Subsidiaries.
      The
      Company is an entity duly incorporated or otherwise organized, validly existing
      and in good standing under the laws of the jurisdiction of its incorporation
      or
      organization (as applicable), with the requisite power and authority to own
      and
      use its properties and assets and to carry on its business as currently
      conducted. The Company has no Subsidiaries. 

     

    (b) Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action is required by the Company in connection therewith. Each Transaction
      Document has been (or upon delivery will have been) duly executed by the Company
      and, when delivered in accordance with the terms hereof, will constitute the
      valid and binding obligation of the Company enforceable against the Company
      in
      accordance with its terms. 

     

    (c) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company,
      the issuance and sale of the Shares and the consummation by the Company of
      the
      transactions contemplated thereby do not and will not (i) conflict with or
      violate any provision of the Company's certificate or articles of incorporation,
      bylaws or other organizational or charter documents, or (ii) conflict with,
      or
      constitute a default (or an event that with notice or lapse of time or both
      would become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation (with or without notice, lapse of time
      or both) of, any material agreement, credit facility, debt or other instrument
      (evidencing a Company debt or otherwise) or by which any property or asset
      of
      the Company is bound or affected, or (iii) result in a violation of any law,
      rule, regulation, order, judgment, injunction, decree or other restriction
      of
      any court or governmental authority to which the Company is subject, or by
      which
      any property or asset of the Company is bound or affected; except in the case
      of
      each of clauses (ii) and (iii), such as could not, individually or in the
      aggregate, have a material adverse effect on the Company.

     

    (d) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) the filings required in accordance with
      Section 4.2, and (ii) those that have been made or obtained prior to the date
      of
      this Agreement.

     

    (e) Issuance
      of the Shares.
      The
      Shares have been duly authorized and, when issued and paid for in accordance
      with the Transaction Documents, will be duly and validly issued, and the Shares
      will be fully paid and nonassessable, free and clear of all Liens. The issuance
      of the Shares is not subject to any preemptive or similar rights to subscribe
      for or purchase securities. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (f) Capitalization.
      The
      number of shares and type of all authorized, issued and outstanding capital
      stock of the Company, and all shares of Common Stock reserved for issuance
      under
      the Company's various option and incentive plans, is set forth in the disclosure
      materials (a set of which is attached to this Agreement as Exhibit A). Except
      as
      set forth in the disclosure materials (a set of which is attached to this
      Agreement as Exhibit A), no securities of the Company are entitled to preemptive
      or similar rights, and no Person has any right of first refusal, preemptive
      right, right of participation, or any similar right to participate in the
      transactions contemplated by the Transaction Documents. 

     

    (g) Litigation.
      There
      is no Action which (i) adversely affects or challenges the legality, validity
      or
      enforceability of any of the Transaction Documents or the Shares or (ii) if
      there were an unfavorable decision, individually or in the aggregate, have
      a
      material adverse effect on the Company. 

     

    3.2 Representations
      and Warranties of the Investors.
      Each
      Investor hereby, for itself and for no other Investor, represents and warrants
      to the Company as follows:

     

    (a) Organization;
      Authority.
      Such
      Investor has the power and authority to enter into and to consummate the
      transactions contemplated by the applicable Transaction Documents and otherwise
      to carry out its obligations thereunder. The execution, delivery and performance
      by such Investor of the transactions contemplated by this Agreement has been
      duly authorized by all necessary action, if required, on the part of such
      Investor. This Agreement has been (or upon delivery will have been) duly
      executed by such Investor, and when delivered by such Investor in accordance
      with terms hereof, will constitute the valid and legally binding obligation
      of
      such Investor, enforceable against it in accordance with its terms.

     

    (b) Investment
      Intent.
      Such
      Investor is acquiring the Shares as principal for its own account for investment
      purposes only and not with a view to or for distributing or reselling such
      Shares or any part thereof. Such Investor is acquiring the Shares hereunder
      in
      the ordinary course of its business. Such Investor does not have any agreement
      or understanding, directly or indirectly, with any Person to distribute any
      of
      the Shares. Such Investor does not have any agreement or understanding, directly
      or indirectly, with any other Investor with respect to (i) the acquisition
      of
      the Shares, (ii) the holding of the Shares, (iii) the disposition of the Shares,
      or (iv) the voting of the Shares. 

     

    (c)
       Investor
      Status.
      At the
      time such Investor was offered the Shares, it was, and at the date hereof it
      is,
      an "accredited investor" as defined in Rule 501(a) under the Shares Act. Such
      Investor is not a registered broker-dealer under Section 15 of the Exchange
      Act.
      To such Investor's knowledge, neither such Investor nor any officer or director
      of such Investor, in his or her capacity as such, is subject to any
      investigation or order by the Commission or any administrative organization
      with
      oversight over any Trading Market that relates to the acquisition, disposition,
      voting or holding of any securities. 

     

    (d) General
      Solicitation.
      Such
      Investor is not purchasing the Shares as a result of any advertisement, article,
      notice or other communication regarding the Shares published in any newspaper,
      magazine or similar media or broadcast over television or radio or presented
      at
      any seminar or any other general solicitation or general
      advertisement.

     

    (e) Access
      to Information.
      Such
      Investor acknowledges that it has reviewed the disclosure materials made
      available by the Company (as set of which has been attached to this Agreement)
      and has been afforded (i) the opportunity to ask such questions as it has deemed
      necessary of, and to receive answers from, representatives of the Company
      concerning the terms and conditions of the offering of the Shares and the merits
      and risks of investing in the Shares; (ii) access to information about the
      Company and its financial condition, results of operations, business,
      properties, management and prospects sufficient to enable it to evaluate its
      investment; and (iii) the opportunity to obtain such additional information
      that
      the Company possesses or can acquire without unreasonable effort or expense
      that
      is necessary to make an informed investment decision with respect to the Shares.
      Neither such inquiries nor any other investigation conducted by or on behalf
      of
      such Investor or its representatives or counsel shall modify, amend or affect
      such Investor's right to rely on the truth, accuracy and completeness of the
      disclosure materials (a set of which is attached to this Agreement as Exhibit
      A)
      and the Company's representations and warranties contained in the Transaction
      Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (f) Independent
      Investment Decision.
      Such
      Investor has independently evaluated the merits of its decision to purchase
      Shares pursuant to this Agreement, such decision has been independently made
      by
      such Investor and such Investor confirms that it has only relied on the advice
      of its own business and/or legal counsel and not on the advice of any other
      Investor's business and/or legal counsel in making such decision.

     

    Article
      IV. 

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1 (a) The
      Shares may only be disposed of in compliance with state and federal securities
      laws. In connection with any transfer of the Shares other than pursuant to
      an
      effective registration statement, or to the Company, the Company may require
      the
      transferor thereof to provide to the Company an opinion of counsel selected
      by
      the transferor, the form and substance of which opinion shall be reasonably
      satisfactory to the Company, to the effect that such transfer does not require
      registration of such transferred Shares under the Securities Act. 

     

     

    (b) Certificates
      evidencing the Shares will contain the following legend, until such time as
      they
      are not required under Section 4.1(c):

    

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "SECURITIES ACT"), AND IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION OR
      QUALIFICATION REQUIREMENTS OF ALL APPLICABLE STATE SECURITIES LAWS, AND
      ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. 

     

    (c) Certificates
      evidencing the Shares shall not contain any legend (including the legend set
      forth in Section 4.1(b)): (i) following a sale of such Shares pursuant to an
      effective registration statement, or (ii) following a sale of such Shares
      pursuant to Rule 144, or (iii) while such Shares are eligible for sale under
      Rule 144(k), or (iv) if such legend is not required under applicable
      requirements of the Securities Act. 

    

    4.2
      Securities
      Laws Disclosure; Publicity.
      The
      Company shall issue a press release in its reasonable discretion disclosing
      the
      transactions contemplated hereby and file a current report on Form 8-K
      disclosing the material terms of the transactions contemplated hereby. In
      addition, the Company will make such other filings and notices in the manner
      and
      time required by the Commission and the Trading Market on which the Common
      Stock
      is listed, if any. 

     

    4.3 Indemnification.
      Each of
      the parties hereto indemnify and hold each other and their respective directors,
      officers, shareholders, partners, employees and agents (each, a "Party")
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys' fees and costs of
      investigation (collectively, "Losses") that any such indemnified Party may
      suffer or incur as a result of or relating to any misrepresentation, breach
      or
      inaccuracy of any representation, warranty, covenant or agreement made by the
      indemnifying Party in any Transaction Document. 

     

    4.4 Use
      of
      Proceeds.
      The
      Company shall use the net proceeds from the sale of the Shares hereunder for
      working capital or other general corporate purposes, including, without
      limitation, acquisitions.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    ARTICLE
      V.

    MISCELLANEOUS

     

    5.1 Fees
      and Expenses.
      Each
      Investor and the Company shall pay the fees and expenses of its advisers,
      counsel, accountants and other experts, if any, and all other expenses incurred
      by such party incident to the negotiation, preparation, execution, delivery
      and
      performance of the Transaction Documents. 

     

    5.2 Entire
      Agreement.
      The
      Transaction Documents, together with the Exhibits and Schedules thereto, contain
      the entire understanding of the parties with respect to the subject matter
      hereof and supersede all prior agreements and understandings, oral or written,
      with respect to such matters, which the parties acknowledge have been merged
      into such documents, exhibits and schedules. 

     

    5.3 Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or
      communication is
      delivered via facsimile at the facsimile number specified in this Section prior
      to 3:30 p.m. (Chicago time) on a Trading Day, (b) the next Trading Day after
      the
      date of transmission, if such notice or communication is delivered via facsimile
      at the facsimile number specified in this Section on a day that is not a Trading
      Day or later than 3:30 p.m. (Chicago time) on any Trading Day, (c) the Trading
      Day following the date of mailing, if sent by U.S. nationally recognized
      overnight courier service, or (d) upon actual receipt by the party to whom
      such
      notice is required to be given. The address for such notices and communications
      shall be as follows:

     

    
      	If
              to Company, to:	
              Secured
                Digital Storage Corporation

            

    

    2001
      Butterfield Road, Suite 1050

    Downers
      Grove, IL 60515

    Facsimile:
      (630) 271-1203

    

    If
      to an
      Investor: To the address set forth under such Investor's name on the signature
      pages hereof;

    

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

    

    5.4 Amendments;
      Waivers.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investor or Investors against whom
      such
      waiver or amendment is to be enforced. No waiver of any default with respect
      to
      any provision, condition or requirement of this Agreement shall be deemed to
      be
      a continuing waiver in the future or a waiver of any subsequent default or
      a
      waiver of any other provision, condition or requirement hereof, nor shall any
      delay or omission of either party to exercise any right hereunder in any manner
      impair the exercise of any such right.

     

    5.5 Construction.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party. This Agreement shall be
      construed as if drafted jointly by the parties, and no presumption or burden
      of
      proof shall arise favoring or disfavoring any party by virtue of the authorship
      of any provisions of
      this
      Agreement or any of the Transaction Documents.

     

    5.6 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may assign this Agreement.
      Any Investor may assign any or all of its rights under this Agreement to any
      Person to whom such Investor assigns or transfers any Shares upon written
      consent of the Company

     

    5.7 No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    5.8 Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of Illinois, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Actions
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement and any other Transaction Documents (whether
      brought against a party hereto or its respective Affiliates, employees or
      agents) shall be commenced exclusively in the state and federal courts sitting
      in Cook County, Illinois (the "Illinois Courts"). Each party hereto hereby
      irrevocably submits to the exclusive jurisdiction of the Illinois Courts for
      the
      adjudication of any dispute hereunder or in connection herewith or with any
      transaction contemplated hereby or discussed herein (including with respect
      to
      the enforcement of the any of the Transaction Documents), and hereby irrevocably
      waives, and agrees not to assert in any Action, any claim that it is not
      personally subject to the jurisdiction of any such Illinois Court, or that
      such
      Action has been commenced in an improper or inconvenient forum. Each party
      hereto hereby irrevocably waives personal service of process and consents to
      process being served in any such Action by mailing a copy thereof via registered
      or certified mail or overnight delivery (with evidence of delivery) to such
      party at the address in effect for notices to it under this Agreement and agrees
      that such service shall constitute good and sufficient service of process and
      notice thereof. Nothing contained herein shall be deemed to limit in any way
      any
      right to serve process in any manner permitted by law. Each party hereto hereby
      irrevocably waives, to the fullest extent permitted by applicable law, any
      and
      all right to trial by jury in any legal proceeding arising out of or relating
      to
      this Agreement or the transactions contemplated hereby. 

     

    5.9 Survival.
      The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and the delivery of the Shares.

     

    5.10 Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) with the same
      force and effect as if such facsimile signature page were an original
      thereof.

     

    5.11 Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

     

    5.12 Remedies.
      In
      addition to being entitled to exercise all rights provided herein or granted
      by
      law, including recovery of damages, each of the Investors and the Company will
      be entitled to specific performance under the Transaction Documents. The parties
      agree that monetary damages may not be adequate compensation for any loss
      incurred by reason of any breach of obligations described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be
      adequate.

     

    5.13 Independent
      Nature of Investors' Obligations and Rights.
      The
      obligations of each Investor under any Transaction Document are several and
      not
      joint with the obligations of any other Investor, and no Investor shall be
      responsible in any way for the performance of the obligations of any other
      Investor under any Transaction Document. The decision of each
      Investor to purchase Shares pursuant to the Transaction Documents has been
      made
      by such Investor independently of any other Investor. Nothing contained herein
      or in any Transaction Document, and no action taken by any Investor pursuant
      thereto, shall be deemed to constitute the Investors as a partnership, an
      association, a joint venture or any other kind of entity,
      or
      create
      a presumption that the Investors are in any way acting in concert or as a group
      with respect to such obligations or the transactions contemplated by the
      Transaction Document. Each Investor acknowledges that no other Investor has
      acted as agent for such Investor in connection with making its investment
      hereunder and that no Investor will be acting as agent of such Investor in
      connection with monitoring its investment in the Shares or enforcing its rights
      under the Transaction Documents. Each Investor shall be entitled to
      independently protect and enforce its rights, including without limitation
      the
      rights arising out of this Agreement or out of the other Transaction Documents,
      and it shall not be necessary for any other Investor to be joined as an
      additional party in any proceeding for such purpose.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOLLOW]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Share Purchase Agreement
      to
      be duly executed by their respective authorized signatories as of the date
      first
      indicated above.

     

    SECURED
      DIGITAL STORAGE CORP.

     

    /s/
      William M.
      Lynes                                                            

    Name:
      William M. Lynes 

    Title:
      Chief Executive Officer 

     

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR INVESTORS FOLLOW]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    By:
      /s/
      Don
      Hauschild                                                            

    Name:
      Don
      Hauschild

    

    Investment
      Amount: $50,000

     

    
 

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Dave
      Beamish                                                            

    Name:
      Dave Beamish

    

    Investment
      Amount: $44,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Paul
      Hauschild                                                            

    Name:
      Paul Hauschild

    

    Investment
      Amount: $50,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    Norman
      F.
      Siegel Living Trust dated July 26th,
      2005

    

    By:
      /s/
      Norman F.
      Siegel                                                            

    Name:
      Norman F. Siegel

    Title:
      Trustee

    

    Investment
      Amount: $300,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Albert Pick
      III                                                            

    Name:
      Albert Pick III

     

    Investment
      Amount: $20,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Mark A.
      Bublick                                                            

    Name:
      Mark A. Bublick

    

    Investment
      Amount: $40,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Scott R.
      Shaffer                                                            

    Name:
      Scott R. Shaffer

     

    Investment
      Amount: $120,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Robert J.
      Pierce                                                            

    Name:
      Robert J. Pierce

     

    

    Investment
      Amount: $80,000

    

 

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Mark D.
      Shoup                                                            

    Name:
      Mark D. Shoup

    

    Investment
      Amount: $5,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Michael
      McShane                                                            

    Name:
      Michael McShane

     

    Investment
      Amount: $40,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Mark
      Moran                                                            

    Name:
      Mark Moran

    

    Investment
      Amount: $160,000

     

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

     

    [INVESTOR]

    

    

    By:/s/ Jeff
      Stone Properties,
      Inc.                                       

    Name:
      

    Title:
      

    

    Investment
      Amount: $140,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Donald B.
      Saunders                                                            

    Name:
      Donald B. Saunders

    

    Investment
      Amount: $40,000

     

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Aileen
      Daly                                                            

    Name:
      Aileen Daly

    

    Investment
      Amount: $50,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Robert E. Hord,
      Jr.                                                            

    Name:
      Robert E. Hord, Jr.

     

    Investment
      Amount: $50,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Davin
      Jeziorski                                                            

    Name:
      Davin Jeziorski

    

    Investment
      Amount: $10,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Allan
      Jeziorski                                                            

    Name:
      Allan Jeziorski

    

    Investment
      Amount: $10,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Patrick
      McShane                                                            

    Name:
      Patrick McShane

    

    Investment
      Amount: $25,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Timothy
      Branigan                                                            

    Name:
      Timothy Branigan

    

    Investment
      Amount: $20,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Richard
      Chase                                                            

    Name:
      Richard Chase

    

    Investment
      Amount: $10,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Eric A.
      Nawracaj                                                            

    Name:
      Eric A. Nawracaj

    

    Investment
      Amount: $10,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Steven H.
      Decker                                                            

    Name:
      Steven H. Decker

    

    Investment
      Amount: $15,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Brian T.
      LeClercq                                                            

    Name:
      Brian T. LeClercq

    

    Investment
      Amount: $24,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      James J.
      Digiovanni                                                            

    Name:
      James J. Digiovanni

    

    Investment
      Amount: $15,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Stephen A.
      Kubinski                                                            

    Name:
      Stephen A. Kubinski

    

    Investment
      Amount: $32,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Sandra
      Santerelli                                                            

    Name:
      Sandra Santerelli

    

    Investment
      Amount: $50,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Scott
      Santerelli                                                            

    Name:
      Scott Santerelli

    

    Investment
      Amount: $10,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Dennis D.
      Santerelli                                                            

    Name:
      Dennis D. Santerelli

     

    Investment
      Amount: $25,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Kevin
      Dolan                                                            

    Name:
      Kevin Dolan

    Investment
      Amount: $24,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Richard
      Dolan                                                            

    Name:
      Richard Dolan

     

    Investment
      Amount: $24,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Joseph M.
      Lyon                                                            

    Name:
      Joseph M. Lyon

    

    Investment
      Amount: $1,600

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Kenneth
      Gillie                                                            

    Name:
      Kenneth Gillie

    

    Investment
      Amount: $4,000

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Timothy A.
      Giglio                                                            

    Name:
      Timothy A. Giglio

    

    Investment
      Amount: $4,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Cathy A.
      Guerra                                                            

    Name:
      Cathy A. Guerra

    

    Investment
      Amount: $2,500

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Michael L.
      Bittenbender                                                            

    Name:
      Michael L. Bittenbender

    

    Investment
      Amount: $2,500

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Scott A.
      Ferry                                                            

    Name:
      Scott A. Ferry

    

    Investment
      Amount: $2,500

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      JoMarie
      Zander                                                            

    Name:
      JoMarie Zander

     

    Investment
      Amount: $5,000

     

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

     

    [INVESTOR]

    

     

    By:
      /s/ Jeff
      Stone Properties,
      Inc.                                       

    Name:
      

    Title: 

    

    Investment
      Amount: $15,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Karl R.
      Ottosen                                                            

    Name:
      Karl R. Ottosen

     

    

    By:
      /s/
      Wendy J.
      Ottosen                                                            

    Name:
      Wendy J. Ottosen

    

    Investment
      Amount: $8,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Jeff
      Ragsdale                                                            

    Name:
      Jeff Ragsdale

    

    Investment
      Amount: $21,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Andrew
      Montgomery                                                            

    Name:
      Andrew Montgomery

    

    Investment
      Amount: $10,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Stephen
      Axelson                                                            

    Name:
      Stephen Axelson

    

    Investment
      Amount: $160,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Richard P.
      Hyland                                                            

    Name:
      Richard P. Hyland

    

    Investment
      Amount: $96,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      David
      Lies                                                            

    Name:
      David Lies

     

    Investment
      Amount: $200,000

     

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Robert Gillespie,
      M.D.                                                            

    Name:
      Robert Gillespie, M.D.

    Investment
      Amount: $20,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    [INVESTOR]

    

    

    By:
      /s/
      Rahul
      Agarwal                                                            

    Name:
      Rahul Agarwal

    

    Investment
      Amount: $100,000

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SHARE
      ISSUANCES

    

    
      	
              Purchaser

            	 	
              No.
                of Shares

            
	
              Don
                Hauschild

            	 	
              62,500
                

            
	
              Dave
                Beamish

            	 	
              55,000
                

            
	
              Paul
                Hauschild

            	 	
              62,500
                

            
	
              Norman
                F. Siegel Living Trust Dated July 26th, 2005

            	
              375,000
                

            
	
              Albert
                Pick III

            	 	
              25,000
                

            
	
              Mark
                A. Bublick

            	 	
              50,000
                

            
	
              Scott
                R. Shaffer

            	 	
              150,000
                

            
	
              Robert
                J. Pierce

            	 	
              100,000
                

            
	
              Mark
                D. Shoup

            	 	
              6,250
                

            
	
              Michael
                McShane

            	 	
              50,000
                

            
	
              Mark
                Moran

            	 	
              200,000
                

            
	
              Jeff
                Stone Properties, Inc.

            	 	
              175,000
                

            
	
              Donald
                B. Saunders

            	 	
              50,000
                

            
	
              Aileen
                Daly

            	 	
              62,500
                

            
	
              Robert
                E. Hord Jr.

            	 	
              62,500
                

            
	
              Davin
                Jeziorski

            	 	
              12,500
                

            
	
              Allan
                Jeziorski

            	 	
              12,500
                

            
	
              Patrick
                McShane

            	 	
              31,250
                

            
	
              Timothy
                Branigan

            	 	
              25,000
                

            
	
              Richard
                Chase

            	 	
              12,500
                

            
	
              Eric
                A. Nawracaj

            	 	
              12,500
                

            
	
              Steven
                H. Decker

            	 	
              18,750
                

            
	
              Brian
                T. LeClercq

            	 	
              30,000
                

            
	
              James
                J. Digiovanni

            	 	
              18,750
                

            
	
              Stephen
                A. Kubinski

            	 	
              40,000
                

            
	
              Sandra
                Santerelli

            	 	
              62,500
                

            
	
              Scott
                Santerelli

            	 	
              12,500
                

            
	
              Dennis
                D. Santerelli

            	 	
              31,250
                

            
	
              Kevin
                Dolan

            	 	
              30,000
                

            
	
              Richard
                Dolan

            	 	
              30,000
                

            
	
              Joseph
                M. Lyon

            	 	
              2,000
                

            
	
              Kenneth
                Gillie

            	 	
              5,000
                

            
	
              Timothy
                A. Giglio

            	 	
              5,000
                

            
	
              Cathy
                A. Guerra

            	 	
              3,125
                

            
	
              Michael
                L. Bittenbender

            	 	
              3,125
                

            
	
              Scott
                A. Ferry

            	 	
              3,125
                

            
	
              JoMarie
                Zander

            	 	
              6,250
                

            
	
              Jeff
                Stone Properties, Inc.

            	 	
              18,750
                

            
	
              Karl
                R. & Wendy J. Ottosen

            	 	
              10,000
                

            
	
              Jeff
                Ragsdale

            	 	
              26,250
                

            
	
              Andrew
                Montgomery

            	 	
              12,500
                

            
	
              Stephen
                Axelson

            	 	
              200,000
                

            
	
              Richard
                P. Hyland

            	 	
              120,000
                

            
	
              David
                Lies

            	 	
              250,000
                

            
	
              Robert
                Gillespie, MD

            	 	
              25,000

            
	
              Rahul
                Agarwal

            	 	
              125,000Exhibit
      10.1

     

    STOCK
      PURCHASE AGREEMENT

     

    This
      STOCK PURCHASE AGREEMENT (this
      “Agreement”)
      is
      entered into as of April 23, 2008 by and among ROASTERS
      ASIA PACIFIC (CAYMAN) LIMITED,
      a Cayman
      Island corporation (“Purchaser”),
      NF ROASTERS
      CORP.,
      a
      Delaware corporation (the “Company”),
      and
NATHAN’S
      FAMOUS, INC.,
      a
      Delaware corporation (“Seller”).
      Purchaser and Seller are referred to collectively as the “Parties”
and
      each individually as a “Party.”

     

    RECITALS

     

    WHEREAS,
      Seller
      owns all of the issued and outstanding common stock of the Company;
      and

     

    WHEREAS,
      Seller
      wishes to sell the Company, and Purchaser wishes to purchase from Seller, all
      of
      the shares of common stock of the Company on the terms and conditions
      hereinafter set forth.

     

    NOW
      THEREFORE, in
      consideration of the mutual promises, covenants, representations, warranties,
      conditions and agreements contained herein, the Parties agree as
      follows:

     

     

    ARTICLE
      I

    PURCHASE
      AND SALE OF SHARES

     

    1.1 Purchase
      and Sale of Shares.

     

    (a) Purchase
      of Shares.
      Subject
      to the terms and conditions hereinafter set forth, on the Closing Date, Seller
      agrees to sell to Purchaser, and Purchaser agrees to purchase from Seller,
      all
      of the issued and outstanding shares (consisting of 100 shares of common stock,
      $0.01 par value) of the Company (the “Shares”),
      for
      an aggregate price of Four Million Dollars ($4,000,000), plus the amount
      calculated in accordance with Section 1(b)(i)(y), below (the “Purchase
      Price).

     

    (b) Purchase
      Price.
      (i) As payment in full for the Shares, Purchaser shall, against delivery of
      a certificate or certificates evidencing the Shares, deliver to Seller
a
      cash
      payment of (x) Three Million Seven Hundred Thousand Dollars ($3,700,000)
      plus (y) Three Hundred Ninety-Six and 44/100 Dollars ($396.44) for each day
      in the period commencing January 1, 2008, and ending on the Closing Date,
      which aggregate amount shall be paid by wire transfer of immediately available
      funds to such account as Seller has designated on Schedule 1.1(b) and
      (ii) Purchaser and Seller shall jointly instruct Farrell Fritz, P.C., in
      its capacity as escrow agent under the Escrow Agreement among Seller, Berjaya
      Group Berhad and Farrell Fritz, P.C. dated November 26, 2007, as amended to
      date, to deliver to Seller the Escrow Fund (as such term is defined therein).
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.2 Closing.

     

    The
      closing (the “Closing”)
      of the
      transactions contemplated herein shall be held simultaneously with the execution
      and delivery of this Agreement at the offices of Farrell Fritz, P.C.,
      1320 RexCorp Plaza, Uniondale, NY 11556, or such other time and/or place as
      the Parties otherwise agree (the “Closing
      Date”).

     

    ARTICLE
      II

    REPRESENTATIONS
      AND WARRANTIES OF SELLER

     

    Seller
      represents and warrants to Purchaser as follows:

     

    2.1 Organization;
      Qualification; Subsidiaries.

     

    (a) The
      Company.
      The
      Company is a corporation, duly organized, validly existing and in good standing
      under the laws of the State of Delaware with full corporate power and authority
      to carry on its business as it is now being conducted and to own, operate and
      lease its properties and assets. The Company is duly qualified or licensed
      to do
      business and is in good standing in every jurisdiction in which the conduct
      of
      its business or the ownership or lease of its properties, require it to be
      so
      qualified or licensed except where the failure to be so qualified or licensed
      would not have a Material Adverse Effect.

     

    (b) Subsidiaries.
      Set
      forth on Schedule 2.1(b)
      is a
      list of all Subsidiaries of the Company, including its jurisdiction of
      incorporation and any jurisdictions in which such Subsidiary is qualified to
      do
      business. Each such Subsidiary is a corporation, duly organized, validly
      existing and in good standing under the laws of its jurisdiction of formation
      with full corporate power and authority to carry on its business as it is now
      being conducted and to own, operate and lease its properties and assets. Each
      Subsidiary is duly qualified or licensed to do business and is in good standing
      in every jurisdiction in which the conduct of its business or the ownership
      or
      lease of its properties, require it to be so qualified or licensed, except
      where
      the failure be so qualified or licensed would not have a Material Adverse
      Effect.

     

    2.2 Authorization
      of Transaction.
      The
      Seller has full corporate power and authority to execute and deliver this
      Agreement, the other Transaction Documents and to perform its obligations
      hereunder and thereunder. This Agreement and each other document, instrument
      or
      agreement executed and delivered by Seller in connection with the transactions
      contemplated hereunder has been duly executed and delivered by Seller and
      constitutes the valid and legally binding obligation of Seller, enforceable
      against it in accordance with its terms and conditions, except
      as
      the enforceability thereof may be limited by bankruptcy, insolvency or other
      laws relating to or affecting creditors’ rights.

     

    2.3 No
      Conflict or Violation.
      Except
      as set forth on Schedule 2.3,
      neither
      the execution and delivery of this Agreement and any of the other Transaction
      Documents, nor the consummation of the transactions contemplated hereby and
      thereby, will:

     

    (a) result
      in
      a violation of or a conflict with any provision of the organizational documents
      of Seller, the Company or any of its Subsidiaries;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) result
      in
      a breach of, a default under, or give any third party the right to modify,
      terminate or accelerate any obligation under, any term or provision of any
      Contract to which Seller, the Company or any of its Subsidiaries is a party
      or
      by which any of their assets are bound; or

     

    (c) result
      in
      a violation by Seller, the Company or any of its Subsidiaries of, or require
      any
      authorization, consent, approval, exemption, notice, filing or other action
      due
      to or required from, or filing with, any Authority pursuant to any Regulation
      or
      Order except, in the case of clauses (b) and (c), where the occurrence
      of such event or failure to obtain such authorization, consent, or similar
      approval will not result in a Material Adverse Effect.

     

    2.4 Consents
      and Approvals.
      No
      consent, approval or authorization of, or declaration, filing or registration
      with, any Authority is required to be made or obtained by Seller, the Company
      or
      any of its Subsidiaries in connection with the execution, delivery and
      performance of this Agreement and the consummation of the transactions
      contemplated hereby, except where the failure to obtain such consents, approvals
      or authorizations, or make such declarations, filings or registrations, would
      not in the aggregate impair the ability of Seller to perform its obligations
      hereunder or result in a Material Adverse Effect.

     

    2.5 Capitalization.There
      are
      100 Shares of the Company issued and outstanding on a fully diluted basis and
      all such Shares are owned beneficially and of record by Seller. All of the
      Shares are duly authorized, validly issued, fully paid and non-assessable,
      and
      have been issued in compliance with all applicable securities Regulations.
      Neither Seller nor the Company has any Contracts containing any profit
      participation features, stock appreciation rights or phantom stock options,
      or
      similar Contracts that allow any Person to participate in the equity or profits
      of the Company. No Shares of the Company are reserved for issuance and there
      are
      no outstanding preemptive rights, Options, Claims, Contracts, convertible or
      exchangeable securities or other commitments, contingent or otherwise, relating
      to the Shares of the Company or pursuant to which the Company is or may become
      obligated to issue or exchange any of its Shares. There are no Contracts between
      or among the Company’s equity holder and any other Persons that are binding upon
      Seller or the Company with respect to the voting, transfer, encumbrance of
      any
      Shares of the Company or Options or with respect to any aspect of the Company’s
      governance or dividends or distributions.

     

    2.6 Title
      to Personal Property.
      The
      Company has no personal property except for those properties and assets listed
      on Schedule 2.6,
      all of
      which are owned by the Company free and clear of all Encumbrances.

     

    2.7 Real
      Property.The
      Company does not currently own or lease any real property.
      Schedule 2.7
      contains
      a true and complete list of all real property with respect to which the Company
      or any Subsidiary was a lessee, sublessee, licensee or other occupant or user
      (the “Real Property”) since the Purchase Date. Any lease, sublease or
      other occupancy agreement (including any amendments and renewal letters)
      relating to the Real Property (collectively, the “Real Property Leases”)
      has expired or been terminated and the Company has no obligations under the
      Real
      Property Leases.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    2.8 Financial
      Statements; No Undisclosed Liabilities.

     

    (a) Financial
      Statements.
      Attached
      hereto as Schedule 2.8(a)
      to the
      Disclosure Schedule are the following financial statements (collectively the
      “Financial
      Statements”):
      Balance Sheets and Statements of Income, Cash Flows and Stockholders Equity
      for
      the Company for each of the fiscal years ended March 30, 2008
      (“Most
      Recent Fiscal Year End”)
      and
      March 25, 2007 (collectively, the “Most
      Recent Financial Statements”).
      The
      Financial Statements are unaudited, have been prepared from the books and
      records of the Company, have been prepared using GAAP applied on a consistent
      basis throughout the periods covered thereby and present fairly the assets
      and
      liabilities of the Company as of such dates and the results of operations of
      the
      Company for such periods.

     

    (b) Absence
      of Undisclosed Liabilities.
      To the
      Knowledge of Seller, the Company has no material obligation or liability
      (whether accrued, absolute, contingent, unliquidated or otherwise, whether
      due
      or to become due arising out of any transaction entered at or prior to the
      date
      hereof, or any action or inaction at or prior to the date hereof, or any state
      of facts existing at or prior to the date hereof, other than:
      (a) liabilities reflected on the Most Recent Financial Statements;
      (b) liabilities and obligations which have arisen after the date of the
      Most Recent Financial Statements in the Ordinary Course of Business which would
      not result, individually or in the aggregate, in a Material Adverse Effect;
      (c) obligations under Contracts described on Schedule 2.14
      or under
      Contracts entered into in the Ordinary Course of Business consistent with past
      practice which are not required to be disclosed on such Section (but not
      liabilities for any breach of any such Contract occurring on or prior to the
      Closing Date); and (d) other liabilities and obligations expressly
      disclosed in the Disclosure Schedule.

     

    2.9 Subsequent
      Events.
      Except
      as listed on Schedule 2.9,
      since
      March 30, 2008, there has not been any change in the business or financial
      condition of the Company which has or is reasonably likely to result in a
      Material Adverse Effect with respect to the Company. Without limiting the
      generality of the foregoing and except as listed on Schedule 2.9,
      since
      March 30, 2008 the Company has not:

     

    (a) sold,
      leased, transferred, licensed, or assigned any material assets, tangible or
      intangible, outside the Ordinary Course of Business;

     

    (b) entered
      into any Contracts (or series of related Contracts) involving expenditures
      of
      more than $50,000 per annum, nor modified any such existing Contracts, outside
      the Ordinary Course of Business;

     

    (c) accelerated,
      terminated, made material modifications to, or canceled any material Contract
      to
      which the Company is a party or by which it is bound (nor has any other party
      thereto done the same);

     

    (d) imposed
      any Encumbrance upon any of its assets, tangible or intangible;

     

    (e) made
      or
      authorized any change in the organizational documents of the
      Company;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (f) experienced
      any material damage, destruction, or loss (whether or not covered by insurance)
      to its property;

     

    (g) made
      or
      been subject to any change in its accounting practices, procedures or
      methods;

     

    (h) discharged
      or satisfied any Lien or paid any obligation or liability, other than current
      liabilities paid in the Ordinary Course of Business;

     

    (i) declared,
      set aside or made any payment or distribution of cash or other property to
      its
      equity holder or its other Affiliates with respect to such equity holder’s
      equity securities or otherwise, or purchased, redeemed or otherwise acquired
      any
      equity securities (including any Options to acquire its equity
      securities);

     

    (j) made
      capital expenditures or commitments therefor that amount in the aggregate to
      more than $50,000 (other than capital expenditures that are fully funded prior
      to the Closing);

     

    (k) except
      as
      otherwise contemplated by this Agreement, delayed or postponed the payment
      of
      any accounts payable or commissions or any other liability or obligation or
      agreed or negotiated with any party to extend the payment date of any accounts
      payable or commissions or any other material liability or obligation or
      accelerated the collection of (or discounted) any accounts or notes receivable
      outside the Ordinary Course of Business;

     

    (l) made
      any
      charitable pledges exceeding in the aggregate $5,000;

     

    (m) entered
      into any synthetic lease or similar arrangement or any off-balance sheet
      financing arrangement;

     

    (n) lost
      any
      franchisee or received written notice from any franchisee that it intends to
      (i) amend the material terms of any agreement between such franchisee and
      the Company or any Subsidiary, or (ii) terminate or not renew any agreement
      it may have with the Company or any Subsidiary;

     

    (o) lost
      any
      supplier or received written notice from any material supplier that it intends
      to (i) reduce the level of business that it does with the Company or any
      Subsidiary, (ii) amend the material terms of any agreement between such
      supplier and the Company or any Subsidiary, or (iii) terminate or not renew
      any agreement it may have with the Company or any Subsidiary;

     

    (p) taken
      any
      action or failed to take any action that has had or would reasonably have been
      expected to have the effect of accelerating to the Pre-Closing Period royalties
      or other revenues that would otherwise be expected to be paid or incurred after
      the Closing; or

     

    (q) committed
      to do any of the foregoing (except to the extent that any such actions relate
      to
      the transfer of assets or liabilities to Seller as disclosed in the Disclosure
      Schedules).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    2.10 Legal
      Compliance.

     

    (a) To
      the
      Knowledge of Seller, the Company is and has been for the two years preceding
      the
      date hereof in material compliance with all Regulations and Orders of any
      Authority applicable to it. To the Knowledge of Seller, for the two years
      preceding the date hereof no written notice has been received by and no written
      claims have been filed against the Company or any of its Subsidiaries alleging
      a
      material violation of any Regulation or Order.

     

    (b) To
      the
      Knowledge of Seller, the Company holds, and is in material compliance with,
      all
      Permits of any Authority required for the conduct of its business and the
      ownership of its properties except where the failure to so comply would not
      have
      a Material Adverse Effect. To the Knowledge of Seller, no written notices have
      been received by the Company or any of its Subsidiaries alleging the failure
      to
      hold any of the foregoing. To the Knowledge of Seller, all of such Permits
      will
      be available for use by the Company or such Subsidiary immediately after the
      Closing.

     

    2.11 Tax
      Matters.

     

    (a) The
      Affiliated Group has filed all Tax Returns that it was required to file for
      each
      tax-period during which the Company was a member of the group, complete in
      all
      material respects, and has either paid all income Taxes shown thereon as owing
      or provided a reserve for such amounts on its Most Recent Financial Statement,
      except where the failure to file such Tax Returns or to pay such Taxes would
      not
      have a Material Adverse Effect.

     

    (b) No
      federal income Tax Return that includes the Company is currently the subject
      of
      audit. The Seller has delivered or made available to
      Purchaser correct and complete copies of all federal income Tax Returns that
      include the Company, examination reports, and statements of deficiencies
      assessed against, or agreed to affecting the Company since December 31,
      2005. The Seller has not waived any statute of limitations in respect of federal
      income Taxes or agreed to any extension of time with respect to any federal
      income Tax assessment or deficiency. The Company currently recognizes no sales
      and is therefore not currently required to file any sales Tax
      Returns.

     

    (c) The
      Company has no liability for the income Taxes of any Person other than the
      Company under Treasury Regulation Section 1.1502-6 (or similar provision of
      state, local or foreign law).

     

    (d) The
      Company has not been a member of an Affiliated Group filing a consolidated
      federal income tax return other than a group the common parent of which is
      the
      Seller.

     

    2.12 Intellectual
      Property.

     

    (a) The
      Company’s registered Intellectual Property Rights are set forth on Schedule 2.12(a).
      All of
      the Company’s Intellectual Property Rights are subject to the Bankruptcy Plan
      and Bankruptcy Assignment and Assumption and the terms and limitations of any
      agreements assumed thereunder. Except as disclosed on Schedule 2.12(a),
      all
      registrations of the trademarks that comprise the Company’s Intellectual
      Property Rights are owned of record by the Company, have been duly maintained
      and are in full force and effect. No filing or payment of any kind was or is
      required to be made with respect to any of the filings for any of the Company’s
      Intellectual Property Rights at any time prior to the Closing Date which has
      not
      been made or paid in a timely manner or will not be made or paid in a timely
      manner, as applicable.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (b) Subject
      to the Bankruptcy Plan, the Bankruptcy Assignment and Assumption and the terms
      of any agreement assumed thereunder, to the Knowledge of Seller, (i) except
      as disclosed on Schedule 2.12(b),
      no
      other Person has any rights to any of the Intellectual Property Rights owned
      or
      used by the Company that is material to the operation of the Company as it
      is
      presently operated in the United States except pursuant to Contracts or licenses
      or as otherwise specified on Schedule 2.12(b),
      (ii) no other Person is infringing, misappropriating or otherwise violating
      any such material Intellectual Property Rights in the United States that the
      Company owns or uses, (iii) no material Intellectual Property Rights of the
      Company are subject to any outstanding Order or Claim, and (iv) neither the
      Company nor any of its licensees is infringing, misappropriating or otherwise
      violating any third party Intellectual Property, nor has any such Claim been
      made against any of them in writing.

     

    (c) Reasonable
      precautions have been taken to protect the secrecy and value of all trade
      secrets forming a material part of the Company’s Intellectual Property Rights,
      including, without limitation, all material proprietary and confidential
      business methods, techniques and practices, such precautions including, without
      limitation, implementation and enforcement of confidentiality policies and
      practices and requiring all employees and contractors having access to any
      confidential and proprietary information used in the business to execute and
      deliver written confidentiality agreements obligating them to maintain the
      confidentiality of same.

     

    (d) Notwithstanding
      anything in this Agreement to the contrary, the Company makes no representation
      or warranty regarding the rights, if any, of Mr. Kenny Rogers with respect
      to the image, persona, endorsement, name and likeness of Mr. Rogers or any
      intellectual property rights, rights of publicity or rights of privacy he may
      have.

     

    2.13 Franchise
      Operations and Co-Branding.

     

    (a) Domestic
      Franchise Agreements. Schedule 2.13(a)
      accurately identifies all Franchise Agreements (collectively “Domestic
      Franchise Agreements”)
      which
      the Company is or has been party to which grant or purport to grant to a third
      party the right to operate or to develop “Kenny Rogers Roasters” restaurants
      within the United States, by location, the name of Franchisee, and the date
      of
      agreement. Except for the Domestic Franchise Agreement between Company and
      Host
      International Inc. concerning the restaurant located at the Ontario Mills Mall
      in Ontario, California (the “Existing
      Domestic Franchise Agreement”
and
      the
“Existing
      Domestic Franchised Restaurant”
(as
      applicable)), all of the restaurant locations covered by the Domestic Franchise
      Agreements have ceased operations and all related Domestic Franchise Agreements
      have expired or been terminated.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (i) There
      are
      no existing defaults by the Company, and no event has occurred which, with
      notice or lapse of time, or both, would constitute a default by the Company
      under any such Domestic Franchisee Agreement, which default could reasonably
      be
      expected to have a Material Adverse Effect upon the business of the Company
      when
      taken as a whole.

     

    (ii) To
      the
      Knowledge of Seller, the material terms of the Existing Domestic Franchise
      Agreement is enforceable, except as enforcement may be limited by applicable
      laws, including but not limited to franchise relationship laws and bankruptcy,
      insolvency, reorganization, moratorium and other laws and case precedents
      affecting franchisor-franchisee relations and/or creditors rights generally,
      and
      except insofar as the availability of equitable remedies may be limited by
      applicable law.

     

    (iii) To
      the
      Knowledge of Seller, the Franchisee of the Existing Domestic Franchised
      Restaurant is in compliance with the material terms of the Existing Domestic
      Franchise Agreement.

     

    (iv) The
      Company has not granted a waiver, forbearance or consent with respect to any
      provision of the Existing Domestic Franchise Agreement regarding the
      Franchisee’s obligation to make payments of royalty fees, it being expressly
      acknowledged by Purchaser that no advertising or other marketing fund
      contributions were ever required to be paid by Host International Inc. pursuant
      to the Existing Domestic Franchise Agreement.

     

    (b) International
      Franchise Agreements.
      Schedule
      2.13(b)
      accurately identifies all Franchise Agreements (collectively “International
      Franchise Agreements”)
      which
      the Company is or has been party which grant or purports to grant to a third
      party the right to operate or to develop “Kenny Rogers Roasters” restaurants
      outside of the United States, by territory, the name of the Franchisee and
      the
      date of the Agreement. 

     

    (i) To
      the
      Knowledge of Seller, there are no existing defaults by the Company, and no
      event
      has occurred which, with notice or lapse of time, or both, would constitute
      a
      default by the Company under any such International Franchise Agreement, which
      default could reasonably be expected to have a Material Adverse Effect upon
      the
      business of the Company when taken as a whole.

     

    (ii) To
      the
      Knowledge of Seller, the material terms of the International Franchise
      Agreements are enforceable, except as enforcement may be limited by applicable
      laws, including but not limited to franchise relationship laws and bankruptcy,
      insolvency, reorganization, moratorium and other laws and case precedents
      affecting franchisor-franchisee relations and/or creditors rights generally,
      and
      except insofar as the availability of equitable remedies may be limited by
      applicable law.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (iii) Notwithstanding
      the foregoing, except as provided in the last clause of this Section 2.13
      (b)(iii), no representations are made with respect to (A) the Master Development
      Agreement dated July 22, 1993 between the Company, on the one hand, and Roasters
      Asia Pacific (Cayman) Limited and Roasters Asia Pacific (HK) Limited
      (individually and collectively “Developer”), as heretofore amended, including
      without limitation, by the Third Amendment to the Master Development Agreement
      dated July 15, 1999 and by the Fourth Amendment to the Master Development
      Agreement dated September 2003 (the “Existing RAP Agreement”), as well as any
      and all subfranchise and/or sublicense agreements entered into by Developer
      or
      its Affiliates pursuant to the Existing RAP Agreement or (B) the Master
      Development Agreement between the Company and Toronto Foods International
      (“TFI”) dated March 2003 (the “TFI Agreement”); provided that Seller hereby
      represents and warrants to Purchaser that the TFI Agreement represents the
      entire agreement of the parties with respect to the subject matter
      thereof.

     

    (iv) Except
      as
      provided in Sections 2.13(b)(i) and (ii) above, Company makes no warranties
      or
      representations concerning the International Franchise Agreements, including,
      without limitation, any representation or warranty regarding the current status
      of the term of any International Franchise Agreement, the current status of
      any
      restaurants developed pursuant to any International Franchise Agreement, and/or
      whether or not any Franchisee is currently in compliance with its obligations
      pursuant to any International Franchise Agreement.

     

    (c) Co-Branding.
      Schedule 2.13(c)
      accurately identifies all Co-Branding Agreements (collectively, “Co-Branding
      Agreements”)
      which
      grant or purport to grant to a third party the right to sell “Kenny Rogers
      Roasters” menu items within a Nathan’s Famous or Miami Subs restaurant that are
      currently in effect, by location of restaurant(s) (the “Existing
      Co-Branded Locations”).
      The
      Co-Branding agreements will be assigned by Purchaser to Seller (or its
      affiliate) pursuant to the KRR Co-Brand License Agreement described in
      Section 4.4 below.

    

    (d) Pending
      Sales.
      There
      are no offers by the Company of Franchise Agreements and/or International
      Franchise Agreement which are pending or in progress as of the date of this
      Agreement and which, to the Knowledge of Seller, are likely to mature into
      opportunities to sign a Franchise Agreement and/or an International Franchise
      Agreement.

    

    (e) Pending
      Franchisee Claims.
      There
      are no arbitrations, mediations or civil actions pending between the Company
      and
      any of the Franchisees as of the date of this Agreement and the Company is
      not
      engaged in any formal written dispute with any Franchisee (or other party
      claiming to be a Franchisee of the Company) or any party related thereto as
      of
      the date of this Agreement which could reasonably be expected to have a Material
      Adverse Effect.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (f) Notices
      of Breach, Default or Termination.
      There
      are no unresolved written assertions or claims by the Company against any
      current Franchisee for any breach of any of the Domestic Franchise Agreements
      that remain uncured.

    

    2.14 Contracts.
      Except
      for the Contracts disclosed pursuant to Section 2.13, Schedule 2.14
      lists
      the following Contracts to which the Company is currently a party or is subject
      to and which have not, as of the date hereof, been fully performed:

     

    (a) any
      agreement (or group of related agreements) for the purchase of inventory,
      products, machinery, equipment or other personal property or real property,
      or
      for the furnishing or receipt of services requiring payments in excess of
      $50,000 per year;

     

    (b) any
      Contract (or group of related Contracts) for the consignment or lease of
      machinery, equipment or other personal property or real property to or from
      any
      Person requiring payments in excess of $50,000 per year;

     

    (c) any
      capitalized lease, pledge, conditional sale or title retention
      agreement;

     

    (d) any
      agreement concerning a partnership, joint venture or investment or relating
      to
      any distributorship or franchise;

     

    (e) any
      agreement (or group of related agreements) under which it has created, incurred,
      assumed, or guaranteed any Indebtedness for borrowed money or any other
      obligation, or any capitalized lease obligation, or under which there is imposed
      an Encumbrance on any of its assets, tangible or intangible;

     

    (f) any
      agreement concerning confidentiality or noncompetition or otherwise prohibiting
      the Company from freely engaging in any business or requiring it to exclusively
      sell or purchase to or from any Person;

     

    (g) any
      Contract with any of its Affiliates (including Seller), officer or director
      or
      any family member of an Affiliate (including Seller), officer or
      director;

     

    (h) any
      agreement containing commitments of suretyship, guarantee or
      indemnification;

     

    (i) any
      mortgage, indenture, note, bond or other agreement relating to Indebtedness
      provided by the Company or any of its Subsidiaries;

     

    (j) any
      agreement involving an Authority;

     

    (k) any
      collective bargaining agreement;

     

    (l) any
      agreement for the employment of any individual on a full-time, part-time,
      consulting or other basis providing for payments in excess of $100,000 per
      year;

     

    (m) any
      agreement providing severance benefits or payments upon the sale of the Company
      or any of its Subsidiaries;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (n) any
      agreement under which the consequences of a default or termination could
      reasonably be expected to have a Material Adverse Effect;

     

    (o) any
      advertising or marketing Contracts or similar agreements;

     

    (p) Contracts
      providing for “take
      or pay”
or
      similar unconditional purchase or payment obligations;

     

    (q) Contracts
      relating to the acquisition of any business (whether by merger, sale of stock,
      sale of assets or otherwise) entered into since December 31,
      2003;

     

    (r) any
      other
      agreement (or group of related agreements) the performance of which involves
      consideration in excess of $50,000 per year; or

     

    (s) any
      commitment to do any of the foregoing.

     

    Seller
      has delivered, or made available, to
      Purchaser a correct and complete copy of each written agreement listed in
Schedule 2.14
      (as
      amended to date). With respect to each agreement listed or required to be listed
      in Schedule 2.14:
      (A) the agreement is, with respect to the Company, legal, valid, binding,
      enforceable, and in full force and effect in all material respects;
      (B) neither the Company nor, to the Knowledge of Seller, any other party
      thereto is in material breach or default, and no event has occurred which with
      notice or lapse of time would constitute a material breach or default by the
      Company, or permit termination, modification, or acceleration under the
      Contract; and (C) neither the Company nor, to the Knowledge of Seller, any
      other party has repudiated any material provision of the Contract.

     

    2.15 Accounts
      Receivable and Payable. 
      Schedule 2.15 contains an accounts receivable and accounts payable
      aging as of March 30, 2008. The accounts receivable of the Company listed in
      Schedule 2.15 have been generated in the Ordinary Course of
      Business, reflect valid obligations due to the Company for the payment of goods
      or services provided by the business and, except as otherwise noted in
Schedule 2.15 and, to the Knowledge of Seller, subject to allowances
      for doubtful accounts as reflected on the Most Recent Financial Statements
      which
      are determined in accordance with GAAP, are collectible in the ordinary course
      of business consistent with past practice. Except as set forth on
Schedule 2.15,
      all
      accounts payable of the business were incurred in the Ordinary Course of
      Business consistent with past custom and practice and are valid payables for
      products or services purchased by the Company.

     

    2.16 Insurance.
      All insurance policies (including policies providing property, casualty,
      liability, and workers’ compensation coverage and bond and surety arrangements)
      with respect to which the Company is a party, a named insured, or otherwise
      the
      beneficiary of coverage are issued in the name of Seller. There are no pending
      claims by the Company under any such policies.

     

    2.17 Litigation.
      To the Knowledge of Seller there are no (and, during the two years preceding
      the
      date hereof, there have not been any) Claims pending or threatened against
      or
      affecting the Company, any of its officers, directors, managers or employees
      of
      the Company with respect to the business or the Company’s proposed business
      activities which (i) involve a claim for money damages in excess of
      $100,000, (ii) would be reasonably expected to have a Material Adverse
      Effect or (iii) question the validity of this Agreement or impair the
      ability of Seller or the Company to consummate the transactions contemplated
      hereby.

     

    
      
        
        

      

      
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    2.18 Books
      and Records.
      The stock records of the Company fairly and accurately reflect in all material
      respects the record ownership of all of the outstanding Shares. The financial
      records and books of account of the Company are complete and accurate in all
      material respects and have been maintained in accordance with GAAP. The minute
      books of the Company are complete and accurate in all material
      respects.

     

    2.19 Employment
      Matters.
      The Company has no employees. The Company has no independent contractors who
      have provided services to the Company for a period of six consecutive months
      or
      longer.

     

    2.20 Employee
      BenefitsThe
      Company does not sponsor, maintain, contribute or is obligated to contribute,
      to
      any Employee Benefit Plans.
      The
      Company has never maintained or contributed to or been required to contribute
      to
      a Multiemployer Plan nor any defined benefit plan subject to Title IV of
      ERISA and Section 412 of the Code.

     

    2.21 Environmental,
      Health, and Safety Regulations.

     

    (a) To
      the
      Knowledge of Seller, each of the Company and its Subsidiaries (i) has
      complied, and is in compliance, with all Environmental, Health, and Safety
      Regulations in all material respects (and no Claim has been filed or commenced
      against the Company and its Subsidiaries alleging any such failure to comply),
      (ii) has obtained and been in material compliance with all of the terms and
      conditions of all material Permits which are required under the Environmental,
      Health, and Safety Regulations, and (iii) has complied in all material
      respects with all other limitations, restrictions, conditions, standards,
      prohibitions, requirements, obligations, schedules, and timetables which are
      contained in the Environmental, Health, and Safety Regulations.

     

    (b) To
      the
      Knowledge of Seller neither this Agreement nor the consummation of the
      transactions contemplated hereby will result in any obligations for site
      investigation or cleanup, or notification to or consent of government agencies
      or third parties, pursuant to any so-called “transaction-triggered”
or
      “responsible
      transfer”
      Environmental, Health, and Safety Regulations.

     

    (c) To
      the
      Knowledge of Seller none of the Company or any of its Subsidiaries has received
      any notice of violation of any Environmental, Health, and Safety Regulations
      from Authority or other third party and has not been named as a potentially
      responsible party with respect to any release of any Hazardous
      Substance.

     

    2.22 Transaction
      With Affiliates.
      None of the Company’s or its shareholders, directors or officers nor any of
      their respective Affiliates is involved in any business arrangement or
      relationship with the Company (whether written or oral), except on arms-length
      terms no less favorable to the Company than those which could be obtained with
      a
      third party which is not an Affiliate, and none of the Company’s shareholders,
      directors or officers nor any of their respective Affiliates owns any property
      or right, tangible or intangible, which is used by the Company. 

     

    
      
        
        

      

      
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    2.23 FIRPTA.
      Seller is not a foreign corporation for the purposes of the Code
      Sections 871, 882 or 1445.

     

    2.24 Brokers’
      Fees.
      Neither Seller nor the Company has any liability or obligation to pay any fees
      or commissions to any broker, finder or agent with respect to the transactions
      contemplated by this Agreement based on any arrangement made by or on behalf
      of
      the Seller or the Company.

     

    2.25 Disclosures.
      The representations and warranties of the Seller contained in this Agreement
      (including any exhibit or schedule hereto) do not contain any untrue statement
      of a material fact or omit to state a material fact necessary in order to make
      the statements contained herein or therein, in light of the circumstances under
      which they were made and taking into account the express limitations set forth
      in each such representation and warranty, not misleading.

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER

     

    Purchaser
      hereby represents and warrants to Seller as follows:

     

    3.1 Organization
      of Purchaser.
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware, and has all requisite power and
      authority to conduct its business as it is presently being conducted and to
      own
      and lease its properties and assets.

     

    3.2 Authorization;
      Validity.
      Purchaser has all necessary power and authority to enter into this Agreement
      and
      the other Transaction Documents and has taken all action necessary to consummate
      the transactions contemplated hereby and thereby and to perform its obligations
      hereunder and thereunder. This Agreement has been duly executed and delivered
      by
      Purchaser and is a legal, valid and binding obligation of Purchaser enforceable
      against Purchaser in accordance with its terms, except
      as
      the enforceability thereof may be limited by bankruptcy, insolvency or other
      laws relating to or affecting creditors’ rights.

     

    3.3 No
      Conflict or Violation.
      Neither the execution and delivery of this Agreement nor the other Transaction
      Documents, nor the consummation of the transactions contemplated hereby and
      thereby, will result in:

     

    (a) a
      violation of or a conflict with any provision of the organizational documents
      of
      Purchaser;

     

    (b) a
      breach
      of, a default under, giving any third party the right to modify, terminate
      or
      accelerate any obligation under, any term or provision of any material Contract
      to which Purchaser is a party or by which its assets are bound; or

     

    
      
        
        

      

      
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    (c) a
      violation by Purchaser in any material respect of, or require any authorization,
      consent, approval, exemption, notice, filing or other action due to or required
      from, or filing with, any Authority pursuant to any Regulation or
      Order.

     

    except,
      in the case of clauses (b) and (c), where the occurrence of such event
      or failure to obtain such authorization, consent, or similar approval will
      not
      result in a Material Adverse Effect.

     

    3.4 Consents
      and Approvals.
      No consent, approval or authorization of, or declaration, filing or registration
      with, any Authority, or any other Person, is required to be made or obtained
      by
      Purchaser in connection with the execution, delivery and performance of this
      Agreement and the consummation of the transactions contemplated hereby, except
      where the failure to obtain such consents, approvals or authorizations, or
      make
      such declarations, filings or registrations, would not in the aggregate impair
      the ability of Purchaser to perform its obligations hereunder or result in
      a
      Material Adverse Effect.

     

    3.5 Certain
      Litigation.
      There is no action, proceeding or investigation pending to which Purchaser
      is a
      party or, to Purchaser’s knowledge, threatened, against Purchaser, which
      questions the validity of this Agreement or impairs the ability of Purchaser
      to
      consummate the transactions contemplated hereby.

     

    3.6 Brokers’
      Fees.
      The Purchaser has no liability or obligation to pay any fees or commissions
      to
      any broker, finder or agent with respect to the transactions contemplated by
      this Agreement based on any arrangement made by or on behalf of the
      Purchaser.

     

    3.7 Disclosures.The
      representations and warranties of the Purchaser contained in this Agreement
      (including any exhibit or schedule hereto) do not contain any untrue statement
      of a material fact or omit to state a material fact necessary in order to make
      the statements contained herein or therein, in light of the circumstances under
      which they were made and taking into account the express limitations set forth
      in each such representation and warranty, not misleading.

     

    ARTICLE
      IV

    COVENANTS

     

    4.1 Further
      Assurances.
      On and after the Closing Date, Seller and Purchaser will take all appropriate
      action and execute (or cause to be executed) all documents, instruments or
      conveyances of any kind which may be reasonably necessary or advisable to carry
      out any of the provisions hereof.

     

    
      
        
        

      

      
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    4.2 Tax
      Matters.

     

    (a) Elections,
      Amendments and Refunds.
      (i) Except as otherwise provided in this Agreement, the Purchaser shall not
      make, revoke or change any tax elections with regard to the Company which may
      impact any indemnity agreement of the Seller herein or the Company’s Taxes with
      respect to tax periods (or portions thereof) ending on or prior to the Closing
      Date, or the tax treatment of the transactions contemplated by this Agreement,
      including, without limitation, a change in the Company’s method of accounting,
      without the express written consent of the Seller. The Purchaser agrees to
      indemnify and defend the Seller and hold the Seller harmless from and against
      any and all Taxes (including without limitation any Taxes with respect to any
      taxable period, or portion thereof, ending on or prior to the Closing Date)
      that
      are imposed upon the Company as a result of such election. (ii) The
      Purchaser shall not, and shall not cause the Company to amend any Tax Return
      for
      any tax period (or portion thereof) ending on or before the Closing Date without
      the express written consent of the Seller. (iii) Any Tax refunds that are
      received by the Purchaser or the Company and any amounts credited against Taxes
      to which the Purchaser or the Company become entitled, that relate to tax
      periods, or portions thereof, ending on or before the Closing Date shall be
      for
      the account of the Seller, and the Purchaser shall pay over to the Seller any
      such refund or the amount of any such credit within ten (10) days after
      receipt or entitlement thereto. (iv) Purchaser shall not, and shall cause
      Company not to, take any action with respect to Taxes, which would increase,
      directly or indirectly, the amount of Taxes for which the Seller would have
      an
      obligation to indemnify the Purchaser pursuant to this Section 4.2, or
      which would increase the Seller’s Tax liability with respect to the transactions
      contemplated herein.

     

    (b) Subject
      to Section 5.2(b), Seller shall indemnify and hold Purchaser Indemnitees
      harmless from and against and shall reimburse each Purchaser Indemnitee for,
      any
      and all federal income Taxes of Company for any taxable period (or portion
      thereof) ending on or before the Closing Date (excluding any Taxes attributable
      to any action taken by the Purchaser at any time after the Closing, including
      without limitation, on the Closing Date) but only to the extent that the amount
      of such Taxes exceeds the reserve for Taxes shown on the Company’s Most Recent
      Financial Statements.

     

    (c) Without
      limiting the foregoing, neither Purchaser nor the Company shall make any
      election under Section 338 of the Code with respect to the transaction
      contemplated by this Agreement.

     

    (d) To
      the
      extent relevant, for all taxable periods ending on or before the Closing Date,
      Seller shall cause the Company to join in Seller's consolidated federal income
      Tax Returns. Seller shall be responsible for all federal income Taxes of the
      Company shown in such returns. The income of the Company shall be apportioned
      to
      the period up to and including the Closing Date, and the period after the
      Closing Date by closing the books of the Company as of the end of the Closing
      Date. In this regard, the parties hereto will, to the extent permitted by
      applicable law, elect with the relevant taxing authorities to treat for all
      purposes the Closing Date as the last day of the taxable period of
      Company.

     

    (e) In
      the
      case of income Taxes that are payable with respect to a Straddle Period, the
      Purchaser shall cause the Company to file Tax Returns for all periods other
      than
      periods ending on or before the Closing Date. As described in subparagraph
      (d)
      immediately above, the income of the Company shall be apportioned to the period
      up to and including the Closing Date, and the period after the Closing Date
      by
      closing the books of the Company as of the end of the Closing Date. If any
      Taxes
      shown as due on such Tax Returns are indemnifiable by the Seller in accordance
      with Section 4.2(b) hereof, (A) such Tax Returns shall be prepared in
      a manner consistent with prior practice of the Company unless otherwise required
      by applicable laws; (B) the Purchaser shall provide the Seller with copies
      of each such Tax Return at least 45 days prior to the due date for filing
      such Tax Return; and (C) the Seller shall have the right to review and
      comment on each such Tax Return for 30 days following the receipt thereof
      and the Purchaser shall accept any changes reasonably requested by the
      Seller.

     

    
      
        
        

      

      
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    (f) All
      transfer, documentary, sales, use, stamp, registration and any other such taxes
      and all conveyance fees, recording charges and other fees and charges (including
      any penalties and interest) incurred in connection with the consummation of
      the
      transactions contemplated by this Agreement shall be the responsibility of
      Purchaser and be paid when due. Purchaser will, at its own expense, file all
      necessary returns and other documentation as may be required with respect to
      all
      such taxes, fees and charges.

     

    (g) The
      Parties hereto agree to treat any indemnity payment as an adjustment to the
      Purchase Price or as a capital contribution, except as otherwise required by
      Regulation.

     

    (h) Cooperation
      on Tax Matters.
      Seller
      and Purchaser shall cooperate fully, as and to the extent reasonably requested
      by the other Party, in connection with the filing of Tax Returns and any audit,
      litigation or other proceeding with respect to Taxes; provided, however, that
      to
      the extent that such audit, litigation or other proceeding relates to periods
      ending on or before the Closing Date or could result in an indemnification
      obligation of the Seller, then notwithstanding any other provision of this
      Agreement, the Seller shall have the right to control the defense or settlement
      of such audit, litigation or proceeding. Such cooperation shall include (without
      limitation) signing any Tax Return, amended Tax Returns, Claims or other
      documents necessary to settle any Tax controversy, the retention and (upon
      the
      other party’s request) the provision of records and information which are
      reasonably relevant to any such Claim and making employees available on a
      mutually convenient basis to provide additional information and explanation
      of
      any material provided hereunder. The Company and the Seller agree (A) to
      retain all books and records with respect to Tax matters pertinent to Company
      and the Affiliated Group relating to any taxable period beginning before the
      Closing Date until the expiration of the statute of limitations (and, to the
      extent notified by the Purchaser or the Seller, any extensions thereof) of the
      respective taxable periods, and to abide by all record retention agreements
      entered into with any Taxing Authority, and (B) to give the other party
      reasonable written notice prior to transferring, destroying or discarding any
      such books and records and, if the other party so requests, the Company or
      the
      Seller, as the case may be, shall allow the other party to take possession
      of
      such books and records.

     

    (i) Tax
      Sharing Agreements.
      Any tax
      sharing agreement between Seller and the Company shall be terminated as of
      the
      Closing Date and shall have no further force and effect for any taxable year
      (whether the current year, a future year or a past year).

     

    (j) The
      Purchaser and the Seller further agree, upon request, to use their reasonable
      efforts to obtain any certificate or other document from any governmental
      authority or any other Person as may be necessary to mitigate, reduce or
      eliminate any Tax that could be imposed (including, but not limited to, with
      respect to the transactions contemplated hereby).

     

    
      
        
        

      

      
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    (k) Indemnification
      Limitations:
      (i) If the amount with respect to which any claim for indemnity is made
      under this Agreement (an “Indemnity
      Claim”)
      gives
      rise to a Tax Benefit to the party making the claim (or would give rise to
      such
      a benefit if the party making the claim were a taxable entity), the indemnity
      payment shall be reduced by the amount of the Tax Benefit available to the
      party
      making the claim. To the extent such Indemnity Claim does not give rise to
      a
      currently realizable Tax Benefit, if the amount with respect to which any
      Indemnity Claim is made gives rise to a subsequently realized Tax Benefit to
      the
      party that made the claim, such party shall refund to the indemnifying party
      the
      amount of such Tax Benefit when, as and if realized. For the purposes of this
      Agreement, any subsequently realized Tax Benefit shall be treated as though
      it
      were a reduction in the amount of the initial Indemnity Claim, and the
      liabilities of the parties shall be redetermined as though both occurred at
      or
      prior to the time of the indemnity payment. For purposes of this paragraph,
      a
“Tax
      Benefit”
means
      an amount by which the Tax liability of the party (or group of corporations
      including the party) is reduced (including, without limitation, by deduction,
      reduction of income by virtue of increased tax basis or otherwise, entitlement
      to refund, credit or otherwise) plus any related interest received from the
      relevant taxing authority.

     

    (l) Notwithstanding
      any other provision to the contrary, Purchaser agrees to include on its tax
      returns and to indemnify Seller for any additional Taxes owed by Seller
      (including Taxes owed by Seller due to this indemnification payment) resulting
      from any transactions engaged in by the Company not in the ordinary course
      of
      business occurring on the Closing Date after Purchaser’s purchase of the
      Company’s stock. Purchaser and the Seller agree to report all transactions not
      in the ordinary course of business occurring on the Closing Date after
      Purchaser’s purchase of the Company’s stock on the Purchaser’s federal income
      Tax return to the extent permitted by Reg.
      Section 1.1502-76(b)(1)(ii)(B).

     

    4.3 Use
      of
      Name.
      Seller agrees that from and after the Closing they will not use the name “Kenny
      Rogers Roasters” or any derivations thereof or any name deceptively similar to
      such names in any business enterprise or in any commercial relationship, other
      than in connection with the operation of the KRR Co-Branded Locations (as
      defined herein).

     

    4.4 Co-Branding. 
      Schedule 4.4 sets forth the Existing Co-Branded Locations and any
      new “Nathan’s Famous” or “Miami Subs” restaurant locations under development as
      of the Closing Date which are intended to contain “Kenny Rogers Roasters”
co-branded menu-line extensions and intended to commence operations within
      120 days after the Closing Date (such locations set forth on
Schedule 4.4 are referred to as the “KRR Co-Branded
      Locations”). Simultaneously with the execution of this Agreement, the
      Parties will enter into a license agreement (the “KRR Co-Brand License
      Agreement”) containing the following terms:

     

    (a) Purchaser
      will assign to Seller (or an affiliate of Seller) (the “NF Licensee”)
      all of
      its right, title and interest in and to the Co-Branding Agreements;

    

    (b) Purchaser
      will license back to the NF Licensee all of the Intellectual Property Rights
      which are necessary for Seller to continue to operate and/or authorize the
      operation of the KRR Co-Branded Locations.

    

    (c) The
      KRR
      Co-Branded Locations will be operated by the NF Licensee and/or the “Nathan’s
      Famous” and “Miami Subs” franchisees in substantially the same manner (i.e.,
      type and extent of use of trademarks, logos, marketing materials, menu items
      served, procedures used, etc.) as they are being operated as of the Closing
      Date
      (the “Existing
      Standards”).
      The
      KRR Co-Branded Locations will not be permitted to make any substantial changes
      to the Existing Standards without Purchaser’s prior written consent (which will
      not be unreasonably withheld or delayed). However, no KRR Co-Branded Locations
      shall have any obligation to comply with any changes to the Existing Standards
      proposed or suggested by Purchaser;

    

    
      
        
        

      

      
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    (d) The
      NF
      Licensee shall be solely responsible for all franchise support owed to the
      operators of the KRR Co-Branded Locations, and Purchaser shall have no liability
      in connection therewith.

    

    (e) The
      rights granted back to the NF Licensee shall be perpetual; provided that nothing
      shall obligate any particular KRR Co-Branded Location to continue to use the
      “Kenny Rogers Roasters” intellectual property.

    

    (f) No
      franchise fees, royalties, product rebates or any other monies shall be due
      from
      the NF Licensee (or its operators and suppliers) to Purchaser in connection
      with
      the continued operation of the Existing KRR Co-Branded Locations.

    

    4.5 Contract
      Ratification.
      Purchaser acknowledges that Company is a party to a beverage supply agreement
      with Coca Cola USA Fountain (“Coke”) dated February 25, 2000 (the
“Coke Agreement”). Purchaser and Company (i) hereby ratify the Coke
      Agreement and assume obligations thereunder in accordance with the terms of
      Section 13(i) of the Coke Agreement, (ii) agree that they will pay and be
      solely responsible for any sums required to be paid or re-paid to Coke pursuant
      to the Coke Agreement and (iii) shall indemnify Seller, in accordance with
      Section 5.3 hereof, for any liability arising as a result of Company failing
      to
      perform under the Coke Agreement.

     

    4.6 Post-Closing
      Checks Received by Seller; Post-Closing Payments Under the Existing Domestic
      Franchise Agreement.
      Seller shall promptly forward to Purchaser any checks made payable to the
      Company or one of its Subsidiaries received by Seller after the Closing Date;
      provided,
      that
      Seller shall be entitled to retain the royalty payment made by Host
      International Inc. under the Existing Domestic Franchise Agreement for the
      period ended April 18, 2008. With respect to the royalty payment to be made
      by
      Host International Inc. under the Existing Domestic Franchise Agreement for
      the
      period ending May 16, 2008, Purchaser and Seller hereby agree that (i) in the
      event that Seller receives such payment, Seller shall pay to Purchaser,
      Purchaser’s pro rata portion of such payment and (ii) in the event that
      Purchaser receives such payment, Purchaser shall pay to Seller an amount equal
      to Seller’s pro rata portion thereof.

     

    4.7 Post-Closing
      Rebates.
      Any rebates received by the Seller after the Closing Date which are derived
      from
      the purchase of “Kenny Rogers Roasters” products by the Existing Domestic
      Franchise Location shall be paid to Company. It is expressly understood that
      Company and Purchaser shall have no right to any rebates derived from the
      purchase of any “Kenny Rogers Roasters” products by restaurants in the “Nathan's
      Famous” and/or “Miami Subs” restaurant systems, and that to the extent that
      Company and/or Purchaser shall receive the same, Company and/or Purchaser shall
      promptly pay such amounts to Seller.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    4.8 Contract
      Termination. The parties agree that simultaneously with the execution of
      this Agreement, the Company will deliver to TFI a notice of termination of
      the
      TFI Agreement, in the form annexed hereto as Exhibit A (the “TFI Termination
      Notice”). Purchaser hereby releases Seller from, and agrees not to assert, any
      claim against Seller arising out of or relating to the TFI Agreement and
      delivery of the TFI Termination Notice.

     

    4.9 Press
      Releases and Public Announcements. Neither Party shall issue any press
      release or make any public announcement relating to the subject matter of this
      Agreement without the prior written approval of the other Party (such approval
      not to be unreasonably withheld), except to the extent that disclosure may
      be
      required by applicable law, rule or regulation. The Parties shall jointly
      prepare any press release or other public announcement to be issued upon the
      execution of this Agreement and/or at Closing. 

     

     

    ARTICLE
      V

    INDEMNIFICATION

     

    5.1 Survival,
      Representations and Warranties,
      Exclusive Remedy.
      The respective representations and warranties of Seller and Purchaser contained
      herein or in any certificates or other documents delivered at the Closing shall
      not be deemed waived or otherwise affected by any investigation made by any
      Party hereto or any Party’s officers, directors, managers, stockholders,
      employees or agents. The representations and warranties provided for in this
      Agreement shall survive for eighteen (18) months beyond the Closing Date,
      except that the representations and warranties set forth in:
      Section 2.11
      (Tax
      Matters) shall survive for a period of six (6) years. The provisions of
      this Section 5.1
      shall
      not limit any covenant or agreement of the Parties hereto which, by its terms,
      contemplates performance after the Closing Date and any breach of such covenant
      or agreement shall not be subject to the Loss Threshold or Cap (as such terms
      are hereinafter defined) or be counted towards the Cap. Notwithstanding the
      foregoing, any representation or warranty in respect of which indemnity may
      be
      sought under Sections 5.2
      and 5.3
      below,
      and the indemnity with respect thereto, shall survive the time at which it
      would
      otherwise terminate pursuant to this Section 5.1
      if
      notice of the inaccuracy or breach thereof giving rise to such right of
      indemnity shall have been given to the Party against whom such indemnity may
      be
      sought prior to such time (regardless of when the Losses in respect thereof
      may
      actually be incurred) in good faith and such extension of the survival period
      shall be limited solely to the items expressly specified in such notice. The
      Parties agree that the indemnification provided in this Article V shall be
      the
      exclusive remedy of the Parties with respect to any and all matters covered
      by
      this Agreement.

     

    5.2 Indemnification
      Obligations of Seller.

     

    (a) Seller
      agrees to indemnify Purchaser and its Affiliates (including the Company after
      the Closing Date), stockholders, officers, directors, employees, agents,
      representatives and successors and assigns (collectively, the “Purchaser
      Indemnitees”)
      in
      respect of, and save and hold each Purchaser Indemnitee harmless against and
      pay
      on behalf of or reimburse each Purchaser Indemnitee as and when incurred, any
      Losses which any Purchaser Indemnitee suffers, sustains or becomes subject
      to as
      a result of or by virtue of:

     

    
      
        
        

      

      
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    (i) any
      facts
      or circumstances which constitute a misrepresentation or breach by Seller of
      any
      representation or warranty set forth in this Agreement (including any Schedule),
      or any certificate delivered by Seller pursuant to this Agreement; provided
      however, that Seller is given written notice of such Loss during the applicable
      survival period in Section 5.1 above;

     

    (ii) any
      and
      all claims against Purchaser (and/or its affiliates) arising out of the
      operation of the Existing KRR Co-Branded Units, including any third-party claims
      arising under any Co-Branding Agreement, and the time limitations pertaining
      to
      survivorship of representations and warranties set forth in Section 5.1 shall
      not apply; and

     

    (iii) any
      nonfulfillment or breach of any covenant of Seller set forth in this
      Agreement.

     

    (b) Notwithstanding
      the foregoing, Seller shall not be required to indemnify Purchaser Indemnitees
      in respect of any Losses any Purchaser Indemnitee suffers, sustains or becomes
      subject to as a result of or by virtue of any of the occurrences referred to
      in
      Section 5.2(a)
      or
      elsewhere in this Agreement unless the aggregate amount of all such Losses
      exceeds $100,000 (the “Loss
      Threshold”);
      provided,
      however,
      that in
      such event, Seller shall be responsible for the full amount of all such Losses
      from the first dollar of Losses suffered; provided
      further that
      no
      Purchaser Indemnitee shall have the right to indemnification with respect to
      any
      claim where the Losses with respect thereto are less than $10,000 and no such
      Losses shall be taken into account in determining whether or the extent to
      which
      the Loss Threshold has been met or exceeded; provided
      further, that
      in
      no event shall Seller be obligated to indemnify Purchaser Indemnitees for such
      Losses in excess of $600,000 (the “Cap”);
      and
provided,
      further, however,
      that any
      claims for indemnification arising under Section 5.2(a)(ii) shall not be subject
      to the Loss Threshold, the Cap or be counted towards the Cap.

     

    (c) Notwithstanding
      anything to the contrary set forth in this Agreement, nothing in this Agreement
      shall limit or restrict any of Purchaser Indemnitees’ right to maintain or
      recover any amounts in connection with any action or claim based upon fraud
      or
      intentional misrepresentation.

     

    5.3 Indemnification
      Obligation of Purchaser.

     

    (a) Purchaser
      agrees to indemnify Seller and each of its Affiliates, stockholders, officers,
      directors, employees, agents, representatives and successors and assigns
      (collectively, the “Seller
      Indemnitees”)
      in
      respect of, and save and hold Seller Indemnitee harmless against and pay on
      behalf of or reimburse each Seller Indemnitee as and when incurred, any Losses
      which Seller Indemnitee suffers, sustains or becomes subject to as a result
      of
      or by virtue of:

     

    (i) any
      facts
      or circumstances which constitute a misrepresentation or breach by Purchaser
      of
      any representation or warranty set forth in this Agreement or any certificate
      delivered by Purchaser pursuant to this Agreement; provided,
      however,
      that
      Purchaser is given written notice of such Loss during the applicable survival
      period specified in Section 5.1
      above;

     

    
      
        
        

      

      
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    (ii) any
      and
      all claims against Seller (and/or its Affiliates) arising out of Purchaser’s use
      of all “Kenny Rogers Roasters” intellectual property and/or the operation of any
“Kenny Rogers Roasters” established by Purchaser of its franchisees/licensees,
      and the time limitations pertaining to survivorship of representations and
      warranties set forth in Section 5.1 shall not apply; 

     

    (iii) any
      and
      all third-party claims against Seller (and/ or its Affiliates) arising out
      of
      the TFI Agreement or the delivery to TFI of the TFI Termination Notice, or
      any
      breach by the Purchaser of the provisions of Section 4.8 hereof, and the time
      limitations pertaining to survivorship of representations and warranties set
      forth in Section 5.1 shall not apply; and 

     

    (iv) any
      nonfulfillment or breach of any covenant or agreement of Purchaser set forth
      in
      this Agreement.

     

    (b) Notwithstanding
      the foregoing, Purchaser shall not be required to indemnify Seller Indemnitees
      in respect of any Losses any of Seller Indemnitees suffers, sustains or becomes
      subject to as a result of or by virtue of any of the occurrences referred to
      in
      Section 5.3(a)
      above
      unless the aggregate amount of all such Losses exceeds the Loss Threshold;
      provided,
      however,
      that in
      such event, Purchaser shall be responsible for the full amount of all such
      Losses from the first dollar of Losses suffered; provided,
      further
      that
      except for Losses arising from a breach by Purchaser or the Company of their
      obligations pursuant to Section 4.5 of this Agreement, no Seller Indemnitee
      shall have the right to indemnification with respect to any claim where the
      Losses with respect thereto are less than $10,000 and no such Losses shall
      be
      taken into account in determining whether or the extent to which the Loss
      Threshold has been met or exceeded; provided
      further, that
      in
      no event shall Purchaser be obligated to indemnify Seller Indemnitees for such
      Losses in excess of the Cap;
      provided, further, however,
      that any
      claims for indemnification arising under Section 5.3(a)(ii) or (iii) shall
      not
      be subject to the Loss Threshold, the Cap or be counted towards the
      Cap.

     

    5.4 Indemnification
      Procedures.

     

    (a) Except
      as
      provided in subsection (e) below, any Person making a claim for indemnification
      pursuant to Section 5.2
      or
5.3
      above
      (each, an “Indemnified
      Party”)
      must
      give the Party from whom indemnification is sought (an “Indemnifying
      Party”)
      written notice of such claim promptly after the Indemnified Party receives
      any
      written notice of any Claim against or involving the Indemnified Party by any
      Person or otherwise discovers the liability, obligation or facts giving rise
      to
      such claim for indemnification; provided,
      however,
      that the
      failure to notify or delay in notifying an Indemnifying Party will not relieve
      the Indemnifying Party of its obligations pursuant to Section 5.2
      or 5.3
      above,
      as applicable, except where such failure actually and materially harms the
      Indemnifying Party.

     

    
      
        
        

      

      
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    (b) With
      respect to the defense of any Claim against or involving an Indemnified Party
      in
      which any Person in question seeks only the recovery of a sum of money for
      which
      indemnification is provided in Section 5.2
      or 5.3
      above
      and subject to Section 4.2(h) hereof (that shall apply with respect to claims
      for Taxes), at its option an Indemnifying Party may appoint as lead counsel
      of
      such defense any nationally recognized and reputable legal counsel selected
      by
      the Indemnifying Party. The Indemnifying Party shall not be entitled to assume
      control of such defense (unless otherwise agreed to in writing by the
      Indemnified Party), and shall pay the fees and expenses of counsel retained
      by
      the Indemnified Party, if: (i) the claim does not only seek the recovery of
      a sum of money; (ii) the Indemnified Party has been advised by counsel that
      a reasonable likelihood exists of a conflict of interest between the
      Indemnifying Party and the Indemnified Party; (iii) the claim involves
      environmental matters in which case the Indemnified Party shall have sole
      control and management authority over the resolution of such claim (including
      hiring legal counsel and environmental consultants, conducting environmental
      investigations and cleanups, negotiating with governmental agencies and third
      parties and defending or settling claims and actions); provided,
      however,
      that the
      Indemnified Party shall keep the Indemnifying Party apprised of any major
      developments relating to any environmental claim; or (iv) the Indemnifying
      Party has not promptly acknowledged and admitted in writing to the Indemnified
      Party that all damages, losses, claims, liabilities, charges, suits, penalties,
      costs and expenses relating to such Claim are Losses for which the Indemnifying
      Party is solely liable pursuant hereto.

     

    (c) If
      the
      Indemnifying Party is controlling the defense, the Indemnified Party will be
      entitled to participate in the defense of such claim and to employ counsel
      of
      its choice for such purpose at its own expense (other than any fees and expenses
      of such separate counsel that are incurred prior to the date the Indemnifying
      Party effectively assumes control of such defense which, notwithstanding the
      foregoing, shall be borne by the Indemnifying Party; provided,
      however,
      that the
      Indemnifying Party shall pay all of the fees and expenses of such separate
      counsel if: (i) the Indemnified Party has been advised by counsel that a
      reasonable likelihood exists of a conflict of interest between the Indemnifying
      Party and the Indemnified Party; (ii) the Indemnifying Party shall have
      authorized in writing the hiring of such separate counsel by the Indemnified
      Party; or (iii) the Indemnifying Party shall not have employed counsel
      reasonably satisfactory to the Indemnified Party).

     

    (d) The
      Indemnifying Party must obtain the prior written consent of the Indemnified
      Party (which the Indemnified Party will not unreasonably withhold) prior to
      entering into any settlement of such Claim or ceasing to defend such Claim,
      provided,
      however,
      that any
      such settlement shall provide for the full and final release of all claims
      against each Indemnified Party.

     

    5.5 Payment.
      Upon the determination of liability under Article
      V
      or
      otherwise between the Parties or by final judicial proceeding, the appropriate
      Party shall pay to the other, as the case may be, within ten (10) days
      after such determination, the amount of any claim for indemnification made
      hereunder. Any such indemnification payments shall include interest at the
      Applicable Rate calculated on the basis of the actual number of days elapsed
      over 360, from the date any such Loss is suffered or sustained to the date
      of
      payment. In the event that the Indemnified Party is not paid in full for any
      such claim pursuant to the foregoing provisions promptly after the other Party’s
      obligation to indemnify has been determined in accordance herewith, it shall
      have the right, notwithstanding any other rights that it may have against any
      other Person, to setoff the unpaid amount of any such claim against any amounts
      owed by it under any instrument or agreement entered into pursuant to this
      Agreement or otherwise or, if Seller is the Indemnifying Party, by setoff
      against amounts owed with respect to the Shares owned by Seller. Upon the
      payment in full of any claim, either by setoff or otherwise, the entity making
      payment shall be subrogated to the rights of the Indemnified Party against
      any
      Person with respect to the subject matter of such claim.

     

    
      
        
        

      

      
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    5.6 Indemnity
      Calculations.

     

    The
      amount of indemnity payable under Section 5.2
      or
      Section 5.3
      shall be
      treated by Purchaser and Seller as an adjustment to the Purchase Price, and
      shall be calculated giving effect to any proceeds actually received from
      insurance policies covering the Loss that is the subject of the claim for
      indemnity, net of any increase in premium as a result of such
      claim.

     

    ARTICLE
      VI

    MISCELLANEOUS

     

    6.1 Definitions.
      Capitalized terms used in this Agreement shall have the meanings set forth
      below:

     

    “Affiliate”
means,
      with respect to any Person, any other Person who directly or indirectly, through
      one or more intermediaries, controls, is controlled by, or is under common
      control with, such Person. The term “control” means the possession, directly or
      indirectly, of the power to direct or cause the direction of the management
      and
      policies of a Person, whether through the ownership of voting securities, by
      Contract or otherwise, and the terms “controlled” and “controlling” have
      meanings correlative thereto.

     

    “Affiliated
      Group”
means
      any affiliated group within the meaning of Code Section 1504 (or any
      similar group defined under a similar provision of state, local or foreign
      law).

     

    “Agreement”
has
      the
      meaning specified in the preamble to this Agreement.

     

    “Applicable
      Rate”
means
      the prime rate of interest reported from time to time in The Wall
      Street Journal.

     

    “Authority”
means
      any governmental or administrative body, agency, commission, board, arbitrator
      or authority, any court or judicial authority, whether international, national,
      federal, state or local or any third party accreditation
      organization.

     

    “Bankruptcy
      Assignment and Assumption”
shall
      mean the March 31, 1999 Assignment and Assumption Agreement of “Kenny Rogers
      Roasters” Franchise Agreements, Master Development Agreements, Intellectual
      Property Rights and Kenny Rogers License Agreement executed by the Company
      and
      the debtors’ trustee pursuant to the Bankruptcy Plan.

     

    
      
        
        

      

      
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    “Bankruptcy
      Plan”
shall
      mean the First Amended Franchisee Plan of Reorganization, as amended, as
      confirmed in the Bankruptcy Proceedings on March 3, 1999.

     

    “Bankruptcy
      Proceedings”
shall
      mean Case No. 98-80707 (filed March 24, 1998) and Case
      No. 98-81049 (filed May 6, 1998), which were jointly administered in
      the U.S. Bankruptcy Court for the Middle District of North Carolina, Durham
      Division.

     

    “Benefit
      Arrangement”
means
      any employment, consulting, severance or other similar Contract, arrangement
      or
      policy and each plan, arrangement, program, agreement or commitment providing
      for insurance coverage (including any self-insured arrangements), workers’
compensation, disability benefits, retirement benefits, life, health, disability
      or accident benefits (including, without limitation, any “voluntary employees’
beneficiary association” as defined in the Code), compensation, profit-sharing,
      bonuses, stock options, stock appreciation rights, stock purchases or other
      forms of incentive compensation or post-retirement insurance, compensation
      or
      benefits which (A) is not an Employee Welfare Benefit Plan, an Employee
      Pension Benefit Plan or Multiemployer Plan, (B) is maintained or
      contributed to by or required to be maintained or contributed to by the Company,
      or (C) covers any current or former employee of the Company.

     

    “Cap”
has
      the
      meaning specified in Section 5.2(b)
      of this
      Agreement.

     

    “Claim”
means
      any action (at law or in equity), claim, charge, audit, lawsuit, demand, suit,
      inquiry, hearing, investigation, Authority review, litigation, proceeding,
      arbitration, appeals or other dispute, whether civil, criminal, administrative
      or otherwise.

     

    “Closing”
has
      the
      meaning specified in Section 1.2
      of this
      Agreement.

     

    “Closing
      Date”
has
      the
      meaning specified in Section 1.2
      of this
      Agreement.

     

    “Co-Branding
      Agreements”
has
      the
      meaning specified in Section 2.13(b) of this Agreement.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended from time to time.

     

    “Company”
has
      the
      meaning specified in the preamble to this Agreement.

     

    “Confidential
      Information”
means
      all information of a confidential or proprietary nature (whether or not
      specifically labeled or identified as “confidential”), in any form or medium,
      that relates to the business, products, financial condition, services or
      research or development of the Company, or its suppliers, distributors,
      customers, independent contractors or other business relations. Confidential
      Information includes, but is not limited to, the following: (i) internal
      business and financial information (including information relating to strategic
      and staffing plans and practices, business, operational results, finances,
      training, marketing, promotional and sales plans and practices, customer
      proposals, referral sources, cost, rate and pricing structures, and accounting
      and business methods); (ii) identities of, individual requirements of,
      specific contractual arrangements with, and information about, the Company’s
      suppliers, distributors, customers, prospective customers, independent
      contractors or other business relations and their confidential information;
      (iii) trade secrets, know-how, compilations of data and analyses,
      techniques, systems, formulae, recipes, research, records, reports, manuals,
      documentation, models, data and data bases relating thereto;
      (iv) inventions, innovations, improvements, developments, methods, designs,
      analyses, drawings, reports and all similar or related information (whether
      or
      not patentable); and (v) other Intellectual Property Rights of the
      Company.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    “Contract”
means
      any agreement, contract, instrument, commitment, lease, guaranty, indenture,
      license, or other arrangement or understanding between parties or by one party
      in favor of another party, whether written or oral.

     

    “Disclosure
      Schedule”
means
      the disclosure schedule delivered by Seller to Purchaser on the date hereof.
      The
      Disclosure Schedule will be arranged in paragraphs corresponding to the lettered
      and numbered paragraphs contained in this Agreement.

     

    “Employee
      Benefit Plans”
means
      all Benefit Arrangements (other than Multiemployer Plans), Employee Pension
      Benefit Plans and Employee Welfare Benefit Plans.

     

    “Employee
      Pension Benefit Plan”
means
      any “employee pension benefit plan” as defined in Section 3(2) of ERISA
      (A) which the Company maintains or contributes to or with respect to which
      the Company has any liability, or (B) which covers any current or former
      employee of the Company.

     

    “Employee
      Welfare Benefit Plan”
means
      any “employee welfare benefit plan” as defined in Section 3(1) of ERISA
      (other than a Multiemployer Plan), (A) which the Company maintains or
      contributes to or with respect to which the Company has any liability, or
      (B) which covers any current or former employee of the
      Company.

     

    “Encumbrance”
means
      any mortgage, pledge, Lien, encumbrance, charge, or other security interest,
      other than (a) mechanic’s, materialmen’s, and similar liens, (b) liens
      for Taxes not yet due and payable or for Taxes that the taxpayer is contesting
      in good faith through appropriate proceedings and for which adequate reserves
      have been established on the Most Recent Financial Statements, and
      (c) liens arising from zoning ordinances.

     

    “Environmental,
      Health, and Safety Regulations”
means
      all Regulations, Orders and all common law concerning public health and safety,
      worker health and safety, and pollution or protection of the environment,
      including without limitation all those relating to the presence, use,
      production, generations, handling, transportation, treatment, storage, disposal,
      distribution, labeling, testing, processing, discharge, release, threatened
      release, control, or cleanup of any hazardous materials, substances or wastes,
      chemical substances or mixtures, pesticides, pollutants, contaminants, noise
      or
      radiation, each as now in effect.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended.

     

    “Existing
      Co-Branded Locations”
has
      the
      meaning specified in Section 2.13(b).

     

    “Financial
      Statements”
has
      the
      meaning specified in Section 2.8
      of this
      Agreement.

     

    
      
        
        

      

      
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    “Franchisee”
means
      a
      franchisee, licensee or other operator of a franchised “Kenny Rogers Roasters”
location.

     

    “Franchise
      Agreements”
means
      any agreement between the Company and a Franchisee for the development and/or
      operation of one or more traditional “Kenny Rogers Roasters” locations,
      excluding Co-Branding Agreements related to any Co-Branded
      Locations.

     

    “FTC
      Rule”
has
      the
      meaning specified in Section 2.13
      of this
      Agreement.

     

    “GAAP”
means
      generally accepted accounting principles as in effect in the United States
      on
      the date of this Agreement, applied on a consistent basis.

     

    “Hazardous
      Substances”
means
      any pollutants, contaminants, toxic substances, hazardous waste or hazardous
      substances defined in or regulated by any Environmental, Health and Safety
      Regulation.

     

    “Indebtedness”
means,
      with respect to the Company at any date, without duplication: (i) all
      obligations for borrowed money or in respect of loans or advances, (ii) all
      obligations evidenced by bonds, debentures, notes, interest rate swap agreements
      or other similar instruments or debt securities, (iii) all obligations in
      respect of letters of credit and bankers’ acceptances issued for the account of
      the Company, (iv) all obligations arising from cash/book overdrafts or
      negative cash balances, (v) all obligations arising from deferred
      compensation arrangements, employee bonuses (whether accrued or not),
      (vi) all obligations of the Company secured by a Lien, (vii) all
      accrued but unpaid franchise, income and excise taxes, (viii) all overdue
      trade payables, (ix) all capital lease obligations determined in accordance
      with GAAP, (x) all notes and accounts payable to any Affiliates of Seller
      or any officers or employees of such Persons, (xi) all obligations (fixed
      or contingent) outside the Ordinary Course of Business, (xii) all
      Guaranties of such Person in connection with any of the foregoing and
      (xiii) all accrued interest, prepayment premiums or penalties related to
      any of the foregoing; provided,
      however,
      that
      Indebtedness shall not include other accrued trade payables or other accrued
      expenses incurred in the Ordinary Course of Business.

     

    “Indemnified
      Party”
has
      the
      meaning specified in Section 5.4
      of this
      Agreement.

     

    “Indemnifying
      Party”
has
      the
      meaning specified in Section 5.4(a)
      of this
      Agreement.

     

    “Intellectual
      Property”
means
      all (i) patents, patent applications, patent disclosures, registrations and
      applications for registrations, (ii) trademarks, service marks, trade
      dress, logos, trade names and domain names, including common law rights, the
      goodwill associated therewith and registrations and applications for
      registration thereof, (iii) works of authorship, copyrights and
      registrations and applications for registration thereof, (iv) copies and
      tangible embodiments thereof, (v) confidential and proprietary information,
      including trade secrets and know-how, (vi) technology, processes,
      algorithms, computer software programs and applications (in both source code
      and
      object code form), (vii) moral rights and similar rights of attribution and
      integrity, and (viii) rights to sue and recover any damages, profits and
      other remedies for any past, present or future infringement, misappropriation
      or
      other violation of any of the foregoing.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    “Intellectual
      Property Rights”
means
      any Intellectual Property obtained by the Company pursuant to and under the
      Bankruptcy Plan and the Bankruptcy Assignment, subject to the limitations of
      such plan and assignment and only to the extent such rights actually vested
      in
      the Company under such plan and assignment. The definition of Intellectual
      Property Rights also includes any trademark registrations and applications
      of
      the Company which are disclosed on Schedule 2.12(a) and were obtained after
      the date the Bankruptcy Plan was confirmed and excludes any trademark
      registrations and applications of Seller which lapsed or were withdrawn or
      abandoned after the date the Bankruptcy Plan was confirmed.

     

    “Knowledge
      of Seller”
means
      (i) the actual knowledge of any of Eric Gatoff, Wayne Norbitz, Donald
      Perlyn and Ron DeVos and (ii) that knowledge which could have been acquired
      by any of Eric Gatoff, Wayne Norbitz, Donald Perlyn and Ron DeVos after making
      a
      reasonable and diligent inquiry concerning the subject matter at issue as a
      prudent businessperson would have made or exercised in the management of his
      business affairs in light of all the circumstances applicable thereto and,
      when
      reference is made to actual knowledge, the actual knowledge of the persons
      listed in clause (i) without such inquiry.

     

    “Leased
      Property”
has
      the
      meaning specified in Section 2.7
      of this
      Agreement.

     

    “Lien”
means
      any claim, lien, pledge, option, charge, security interest, mortgage,
      right-of-way, easement, covenant, Encumbrance or other right of any third
      party.

     

    “Loss
      Threshold”
has
      the
      meaning specified in Section 5.2(b)
      of this
      Agreement.

     

    “Losses”
means
      any Claims, liabilities, losses, damages (including consequential damages),
      fees, deficiencies, assessments, judgments, obligations, demands, commitments,
      actions, imposed tax, penalties, fines, remediations and other costs or expenses
      (any one such item being called a “Loss”
and
      all
      such items collectively called “Losses”),
      including all interest, penalties, reasonable attorneys’ fees and other expenses
      arising from, or in connection with, any Loss by a Party seeking
      indemnification.

     

    “Material
      Adverse Effect”
means
      any circumstance, change in, or effect on a Party that is, or could reasonably
      be expected in the foreseeable future to be, materially adverse to the Party’s
      business, assets, liabilities, financial condition, earnings or results of
      operation, prospects, customer or supplier relations, employee relations, cash
      flow or net worth or its ability to consummate the transactions contemplated
      by
      this Agreement; provided, that the foregoing excludes the effects of changes
      that are generally applicable to (i) the industries and markets in which
      the Party operates, (ii) the United States or world economy or securities
      markets or (iii) result from the outbreak of war, other hostilities or
      terrorist activities.

     

    “Most
      Recent Financial Statements”
has
      the
      meaning specified in Section 2.8.

     

    “Most
      Recent Fiscal Year End”
has
      the
      meaning specified in Section 2.8
      of this
      Agreement.

     

    
      
        
        

      

      
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    “Multiemployer
      Plan”
means
      any “multiemployer plan,” as defined in Section 4001(a)(3) of
      ERISA.

     

    “Option”
means
      any subscription, option, warrant, right, security, Contract, commitment, or
      stock appreciation, phantom stock option, or arrangement by which the Company
      is
      bound to issue any additional shares of its capital stock or rights pursuant
      to
      which any Person has a right to acquire shares of the Company’s or a
      Subsidiary’s capital stock (as the case may be).

     

    “Order”
means
      any decree, order, judgment, writ, injunction (temporary or permanent), rule,
      ruling, legal restraint, award, formal or informal directive or notice,
      prohibition or consent of or by or from an Authority.

     

    “Ordinary
      Course of Business”
means
      the ordinary course of normal day-to-day business consistent with past custom
      and practice (including with respect to quantity quality and frequency), other
      than any “like-kind” exchanges whereby an franchisee/operator pays less
      royalties to Company than it is otherwise obligated to pay to
      Company.

     

    “Parties”
has
      the
      meaning specified in the preamble to this Agreement.

     

    “Permits”
means
      all permits, licenses, registrations, agreements, certificates, approvals,
      accreditation, orders, and other consents and authorizations from any Authority
      or other Person (including without limitation those relating to the occupancy
      or
      use of Real Property) issued to or held by the Company and necessary or required
      for the Company to be in compliance with all Regulations and Orders as of the
      date hereof.

     

    “Person”
means
      an individual, partnership, corporation, limited liability company, joint stock
      company, unincorporated organization or association, trust, firm, joint venture,
      association, government, body or other organization, whether or not a legal
      entity, or Authority.

     

    “Pre-Closing
      Period”
means
      any taxable period ending on or before the Closing Date.

     

    “Purchase
      Date”
shall
      mean April 1, 1999.

     

    “Purchase
      Price”
has
      the
      meaning specified in Section 1.1(a)
      of this
      Agreement.

     

    “Purchaser”
has
      the
      meaning specified in the preamble to this Agreement.

     

    “Purchaser
      Indemnitees”
has
      the
      meaning specified in Section 5.2(a)
      of this
      Agreement.

     

    “Real
      Property”
has
      the
      meaning specified in Section 2.7
      of this
      Agreement.

     

    “Real
      Property Leases”
has
      the
      meaning specified in Section 2.7
      of this
      Agreement.

     

    
      
        
        

      

      
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    “Regulation”
means
      any applicable rule, law, code, statute, regulation, ordinance or other binding
      action of or by an Authority.

     

    “Securities
      Act”
means
      the United States Securities Act of 1933, as amended.

     

    “Seller”
has
      the
      meaning specified in the preamble to this Agreement.

     

    “Seller
      Indemnitees”
has
      the
      meaning specified in Section 5.3(a)
      of this
      Agreement.

     

    “Shares”
has
      the
      meaning specified in Section 1.1(a).

     

    “Straddle
      Period”
means
      a
      taxable period that commences before the Closing Date and ends after the Closing
      Date.

     

    “Subsidiary”
means,
      with respect to any Person, any corporation, partnership, limited liability
      company, association or other business entity of which: (i) if a
      corporation, a majority of the total voting power of shares of stock entitled
      (irrespective of whether, at the time, stock of any other class or classes
      of
      such corporation shall have or might have voting power by reason of the
      happening of any contingency) to vote in the election of directors, managers
      or
      trustees thereof is at the time owned or controlled, directly or indirectly,
      by
      that Person or one or more of the other Subsidiaries of that Person or a
      combination thereof; or (ii) if a partnership, limited liability company,
      association or other business entity, either (A) a majority of the
      partnership or other similar ownership interest thereof is at the time owned
      or
      controlled, directly or indirectly, by that Person or one or more Subsidiaries
      of that Person or a combination thereof, or (B) such Person is a general
      partner, managing member or managing director of such partnership, limited
      liability company, association or other entity.

     

    “Tax”
means
      (i) any federal, state, local, or foreign income, gross receipts, license,
      payroll, employment, excise, severance, stamp, occupation, premium, windfall
      profits, environmental (including taxes under Section 59A of the Code),
      custom duties, capital stock, franchise, profits, withholding, social security
      (or similar), unemployment, disability, real property, personal property, sales,
      use, transfer, registration, value added, alternative or add-on minimum,
      estimated, or other tax of any kind whatsoever, including any interest, penalty,
      or addition thereto, whether disputed or not, and any amounts payable pursuant
      to the determination or settlement of an audit; (ii) liability of the
      Company for the payment of any amounts of the type described in clause (i)
      above arising as a result of being (or ceasing to be) a member of any Affiliated
      Group (or being included (or required to be included) in any Tax Return relating
      thereto); and (iii) liability of the Company for the payment of any amounts
      of the type described in clause (i) above as a result of any express or
      implied obligation to indemnify or otherwise assume or succeed to the liability
      of any other Person.

     

    “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto,
      and
      including any amendment thereof.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    “Taxing
      Authority”
means
      the Internal Revenue Service and any other Federal, state, local or foreign
      Authority which has the right to impose Taxes on the Company.

     

    “Transaction
      Documents”
means
      this Agreement, and the Corporate Headquarters Lease.

     

    6.2 Construction.
      As used in this Agreement, (i) each term defined in this Agreement has the
      meaning assigned to it, (ii) each accounting term not otherwise defined in
      this Agreement has the meaning assigned to it in accordance with U.S. Treasury
      Regulations, (iii) as the context may require, words in the singular
      include the plural and words in the plural include the singular, (iv) as
      the context may require, words in the masculine or neuter gender include the
      masculine, feminine and neuter genders, (v) except as the context may
      require, all references to Schedules or Exhibits refer to the Disclosure
      Schedules or Exhibits delivered herewith or attached hereto (each of which
      is
      deemed to be a part of this Agreement), (vi) all references to Sections or
      Articles refer to Sections or Articles of this Agreement, (vii) all
      references to “$” or “dollars” refer to U.S. dollars, (viii) all references
      to “including” shall mean “including without limitation”, (ix) any amount to be
      paid in “$” or “dollars” shall be paid in U.S. dollars, and (x) the terms
“herein”, “hereunder”, “hereby”, “hereto” and terms of similar import refer to
      this Agreement in its entirety, and not to any particular Article, Section,
      paragraph or subparagraph. No provision of this Agreement will be construed
      in
      favor of, or against, any of the Parties hereto by reason of the extent to
      which
      such Party or its counsel participated in its drafting or by reason of the
      extent to which this Agreement or any provision hereof is inconsistent with
      any
      prior draft hereof or thereof.

     

    6.3 Assignment.
      Neither this Agreement nor any of the rights or obligations hereunder may be
      assigned by Seller without the prior written consent of Purchaser, or by
      Purchaser without the prior written consent of Seller. Such consent shall not
      be
      unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing,
      Purchaser may assign its rights and obligations hereunder, in whole or in part,
      to any of its Affiliates; provided,
      however,
      that in
      connection with such assignment Purchaser shall agree to guarantee such
      assignee’s obligations under the Transaction Documents; provided
      further, however,
      that
      such assignment shall be subject to Seller’s approval of Purchaser’s financial
      condition, such approval not to be unreasonably withheld. In addition, Purchaser
      may assign any or all of its rights pursuant to this Agreement, including its
      rights to indemnification, to a lender as collateral security. Subject to the
      foregoing, this Agreement shall be binding upon and inure to the benefit of
      the
      Parties hereto and their successors and permitted assigns. This Agreement shall
      be for the sole benefit of the Parties hereto and their respective permitted
      assigns and is not intended, nor shall be construed, to give any Person, other
      than the Parties hereto and their respective successors and assigns any legal
      or
      equitable right, remedy or claim hereunder.

     

    6.4 Notices.
      Any notice, request, demand, waiver, consent, approval or other communication
      which is required or permitted hereunder shall be in writing. All such notices
      shall be delivered: personally; by telecopier receipt confirmed; by certified
      mail, return receipt requested; or by reputable overnight courier (costs
      prepaid). All such notices are to be given or made to the Parties at the
      following addresses (or to such other address as any Party may designate by
      a
      notice given in accordance with the provisions of this Section):

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    If
      to
      Purchaser (or the Company after the Closing):

     

    Roasters
      Asia Pacific (Cayman) Limited 

    c/o
      Berjaya Corporation Berhad

    Lot
      1.35
      C&D, 1st
      floor

    Podium
      Block, Plaza Berjaya

    No.
      12
      Jalan lmbi, 55100 Kuala Lumpur

    West
      Malaysia

    Facsimile
      No. 603-2143-4085

     

    Copy
      to
      (which shall not constitute notice):

     

    Abelman
      Frayne & Schwab

    666
      Third
      Avenue

    New
      York,
      NY 10017-5621

    Attn:
      Mel
      Ortner, Esq.

    

    If
      to
      Seller (or Company prior to the Closing):

     

    Nathan’s
      Famous, Inc.

    1400
      Old
      Country Road

    Westbury,
      New York 11501

    Attn: Eric
      Gatoff, Chief Executive Officer

    Facsimile
      No.: (516) 338-7220 

     

    Copy
      to
      (which shall not constitute notice):

     

    Farrell
      Fritz, P.C.

    1320
      RexCorp Plaza

    Uniondale,
      New York 11556

    Attn: Nancy
      D.
      Lieberman, Esq.

    Facsimile
      No.: 516-336-2778

     

    Any
      of
      the above addresses may be changed at any time by notice given as provided
      above; provided,
      however,
      that any
      such notice of change of address will be effective only upon receipt. All
      notices, requests or instructions given in accordance herewith will be deemed
      given (a) on the date of delivery, if hand delivered, (b) on the date
      of receipt, if sent by facsimile or other electronic means (including PDF
      format), (c) three business days after the date of mailing, if mailed by
      registered or certified mail, return receipt requested, and (d) one
      business day after the date of sending, if sent by Federal Express or other
      recognized overnight courier.

     

    6.5 Choice
      of Law.
      This Agreement shall be governed by, and construed in accordance with, the
      internal laws of the State of New York, without reference to the choice of
      law or conflicts of law principles thereof.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    6.6 Entire
      Agreement; Amendments and Waivers.
      This Agreement, together with all exhibits and schedules hereto, constitute
      the
      entire agreement among the Parties pertaining to the subject matter hereof
      and
      supersedes all prior agreements, understandings, negotiations and discussions,
      whether oral or written, of the Parties, including that certain Letter
      Agreement, dated September 6, 2007 by and between Nathan’s Famous, Inc. and
      Berjaya Group Berhad. This Agreement may not be amended or modified except
      by an
      instrument in writing signed on behalf of all of the Parties. No waiver of
      any
      of the provisions of this Agreement shall be deemed or shall constitute a waiver
      of any other provision hereof (whether or not similar), nor shall such waiver
      constitute a continuing waiver unless otherwise expressly provided.

     

    6.7 Counterparts.
      This Agreement may be executed in one or more counterparts, each of which shall
      be deemed an original, but all of which together shall constitute one and the
      same instrument. This Agreement may be executed and delivered by facsimile
      or
      other electronic means (including PDF format) with the same force and effect
      as
      if the same were a fully executed and delivered manual counterpart.

     

    6.8 Invalidity.
      In the event that any one or more of the provisions contained in this Agreement
      or in any other instrument referred to herein, shall, for any reason, be held
      to
      be invalid, illegal or unenforceable in any respect, such invalidity, illegality
      or unenforceability shall not affect any other provision of this Agreement
      or
      any other such instrument.

     

    6.9 Headings.
      The headings of the Articles and Sections herein are inserted for convenience
      of
      reference only and are not intended to be a part of or to affect the meaning
      or
      interpretation of this Agreement.

     

    6.10 Expenses.
      Except as otherwise provided herein, each Party will each be liable for their
      respective costs and expenses incurred in connection with the negotiation,
      preparation, execution and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby (including fees, costs and expenses of
      legal counsel, investment advisors, brokers and other representatives and
      consultants).

     

    6.11 Confidentiality
      Agreement.
      Neither Party will utilize or disclose any Confidential Information of the
      other
      Party and each Party will continue to abide by the Confidentiality Agreement
      between the Parties dated October 19, 2006 and the terms of Section 7 of the
      Letter of Intent between the Parties dated September 6, 2007.

     

    6.12 WAIVER
      OF JURY TRIAL.
      EACH OF THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES
      ANY
      RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON,
      OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY SCHEDULE
      OR EXHIBIT HERETO, OR ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENTS
      (WHETHER VERBAL OR WRITTEN) RELATING TO THE FOREGOING. THIS PROVISION IS A
      MATERIAL INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS
      AGREEMENT.

     

    6.13 Consent
      To Jurisdiction; Service Of Process.
      Seller and Purchaser hereby irrevocably submit to the jurisdiction of the state
      or Federal courts located in Nassau County, New York in connection with any
      suit, action or other proceeding arising out of or relating to this agreement
      and the transactions contemplated hereby (including any claim for injunctive
      relief), and hereby agree not to assert, by way of motion, as a defense, or
      otherwise in any such suit, action or proceeding that the suit, action or
      proceeding is brought in an inconvenient forum, that the venue of the suit,
      action or proceeding is improper or that this agreement or the subject matter
      hereof may not be enforced by such courts.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    6.14 Attorneys’
      Fees.
      If any Party hereto brings an action against another Party hereto to enforce
      its
      rights under this Agreement, the prevailing Party shall be entitled to recover
      its reasonable costs and expenses, including reasonable attorneys’ fees and
      costs and including, but not limited to, expert witness fees and expenses,
      incurred in connection with such action and any appeal thereof.

     

    6.15 Incorporation
      of Exhibits and Schedules.
      The exhibits and schedules identified in this Agreement are incorporated herein
      by reference and made a part hereof. Any exception to representations or
      warranties disclosed on one Disclosure Schedule shall constitute disclosure
      for
      the purposes of all other applicable representations or warranties made in
      this
      Agreement and any related Disclosure Schedule; provided such application is
      readily apparent on its face.

     

    6.16 No
      Third-Party Beneficiaries.
      Nothing herein expressed or implied is intended or shall be construed to confer
      upon or give to any Person other than the Parties hereto and their respective
      permitted successors and assigns, any rights or remedies under or by reason
      of
      this Agreement, such third parties specifically including employees and
      creditors of the Company.

     

    6.17 Business
      Days.
      Whenever the last day for the exercise of any privilege or the discharge of
      any
      duty hereunder shall fall upon any day which is not a business day, the Party
      having such privilege or duty may exercise such privilege or discharge such
      duty
      on the next succeeding business day.

     

    6.18 Legal
      Representation.
      Each Party has varying rights and interests under this Agreement and has been
      advised by, or has had the opportunity to obtain the advice of, its own
      independent legal counsel in connection the preparation and execution of this
      agreement. 

     

    * * * * *

    
 

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Parties have executed and delivered this Agreement as of the date first written
      above.

     

    
      	 	
              NATHAN’S
                FAMOUS, INC.

            
	 	 	 
	 	
              By:

            	
              /s/Eric
                Gatoff

            
	 	
              Name:

            	
              ERIC
                GATOFF

            
	 	
              Title:

            	
              CEO

            
	 	 	 
	 	 	 
	 	
              NF
                ROASTERS CORPORATION

            
	 	 	 
	 	
              By:

            	
              /s/Wayne
                Norbitz

            
	 	
              Name:

            	
              WAYNE
                NORBITZ

            
	 	
              Title:

            	
              PRESIDENT

            
	 	 	 
	 	 	 
	 	
              ROASTERS
                ASIA PACIFIC (CAYMAN) LIMITED 

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/Francis
                Lee Kok Chuan

            
	 	
              Name:

            	
              FRANCIS
                LEE KOK CHUAN

            
	 	
              Title:

            	
              DIRECTOR

            
	 	 	 

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

     

    VIA
      OVERNIGHT MAIL

     

    

    

    April
      __,
      2008

    

    Toronto
      Foods International

    Sheikh
      Zayed Road

    Al
      Attar
      Tower, 1st
      Floor,
      Suite 106

    Dubai,
      United Arab Emirates

    Attn:
      Pooneh Babaki

    

    
      	
            	Re:	
              Kenny
                Rogers Roasters Master Development Agreement for
                the

            

    

    United
      Arab Emirates, Bahrain, Jordan, Oman, Qatar and Yemen

    

    Gentlepersons:

    

    Reference
      is made to the Master Development Agreement between NF Roasters Corporation
      (“we”, “us” and the like) and Toronto Foods International (“TFI”) dated March
      2003 concerning the development, operation and franchising by TFI of “Kenny
      Rogers Roasters” restaurants in the United Arab Emirates, Bahrain, Jordan, Oman,
      Qatar and Yemen (the “Master Franchise Agreement”).

    

    In
      the
      normal course of reviewing our files, it has come to our attention that, despite
      TFI’s cessation of business activities under the Master Franchise Agreement, the
      Master Franchise Agreement has never been formally terminated. 

    

    Accordingly,
      so that we may close our files, this letter shall serve as formal notice of
      TFI’s default under Section 15.2.1 of the Master Franchise Agreement, as well as
      our election to terminate the Master Franchise Agreement effective upon your
      receipt hereof. 

    

    This
      letter is written without prejudice, waiver or limitation of any of our rights
      or remedies, at law or in equity, all of which are hereby expressly
      reserved.

    

    Sincerely,

    

    NF
      Roasters Corporation

    

    

    By:________________________

    Authorized
      Signatory

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