RB 5/2007 Development Agreement with Burger King
08-03-2007

The Management Board of AmRest Holdings N.V. informs about the signing of the Development Agreement with Burger King Europe GmbH.
 
Date of agreement:
 
8th March 2007
 
Parties
 
American Restaurants Sp. z o.o. (Developer), headquartered in Wrocław, Poland
Burger King Europe GmbH (BKE) headquartered in Zug, Switzerland.
 
Subject
 
The Developer is granted the non-exclusive right to develop and to be franchised to operate Burger King restaurants within territory of Poland (“Development Area”).
 
Right of first refusal
 
The Developer has the right of first refusal in case BKE itself or through another party wants to develop Burger King restaurants everywhere within the Development Area with the exception of certain institutional locations.
 
Guaranty
 
AmRest Holdings N.V. (Guarantor) guarantees to BKE fulfillment of all obligations on the part of the Developer under the Development Agreement.  
 
Term
 
The term of the Development Agreement shall be for a period of 5 years from the date of this Agreement. 
 
Significant conditions
 
Development Agreement provides, among other things, that:
 
a) During the 2 years after the first opening of a Burger King restaurant by Developer, BKE shall contribute an amount of 2.5% of the calendar monthly Gross Sales of all Burger King restaurants operated by Developer to the advertising and sales promotion fund mentioned in the Franchise Agreement. During the third year after the first opening of a Burger King restaurant by Developer, BKE shall contribute an amount of 2% of the calendar monthly Gross Sales of all Burger King Restaurants operated by Developer to the advertising and sales promotion fund.
 
b) During the initial 5 years term the initial franchise fee payable by Developer shall be $25,000 for each Burger King restaurant with a franchise agreement providing for a term of 10 years (plus a further renewal franchise fee of $ 25,000 in case of a 10 years renewal of the franchise agreement at the Developer’s option). The initial franchise fee shall be reduced by 50 % for the development of each Burger King restaurant which exceeds the number of Burger King restaurants to be developed and opened by Developer according to the development schedule.
 
c) The Developer agrees to open and operate Burger King restaurants in strict accordance with the development schedule which includes the minimal numbers of openings in each development year as defined in the Development Agreement.
 
d) The Developer oblige to comply with the development procedures and requirements as set forth in the Development Agreement. The development procedures includes, among other things, the franchise approval and the site approval.
 
e) The Developer and the Guarantor shall at all times maintain in strict confidence BKE's operational manuals, marketing information and methods, and all information and knowledge relating to the methods of operating and the functional know-how relating to Burger King restaurants revealed by BKE to the Developer.
 
f) Developer is responsible for all losses, damages and/or contractual liabilities to third parties arising out of or relating to any of the obligations, undertakings, promises and representations of Developer under this agreement, and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom. 
 
 
 
Legal Act:
§ 5.1.3 of Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities, dated October 19th 2005

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