International Multifoods Corporation and Affiliated Companies - Page 5

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          in Europe, the Middle East, and Latin America.  Mister Donut                
          joined in the filing of petitioner's consolidated returns.                  
          Hereinafter, we will generally refer to Mister Donut's                      
          transactions as petitioner's, since Mister Donut was petitioner's           
          wholly owned subsidiary.                                                    

          Petitioner's Asian and Pacific Mister Donut Operations                      

               As of January 1989, petitioner had registered Mister Donut             
          trademarks in the following countries:  Indonesia, the                      
          Philippines, Taiwan, Thailand, Australia, the People's Republic             
          of China, Hong Kong, Malaysia, New Zealand, Singapore, and South            
          Korea.                                                                      
               Petitioner, as franchisor, had entered into Mister Donut               
          franchise agreements in Indonesia, the Philippines, Thailand, and           
          Taiwan2 (the operating countries).  The franchise agreements in             
          effect on January 31, 1989, were as follows:                                


          Date of                                                                     
          Initial                                              No. of Mister          
          Agreement      Territory          Franchisee          Donut Shops           
          Apr. 30, 1987    Indonesia        PT Naga Puspita             2             
          Bujana                                                                      
          Nov. 16, 1981    Philippines      Naque Franchising Co.      49             
          Mar. 16, 1984    Taiwan           Continental Foods           6             
          May 19, 1978     Thailand         Thai Franchising Co.       21             

               2Although styled a Technical Cooperation Agreement,                    
          petitioner's agreement in Taiwan was, in all material respects,             
          the same as its franchise agreements.                                       




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