Martin Ice Cream Company - Page 16

                                                - 16 -                                                  
                  On June 14, 1988, Beth L. Bronner, vice president for                                 
            strategic and business development for H�agen-Dazs, replied to                              
            Mr. Hewit’s letter of June 6, stating that H�agen-Dazs had                                  
            “incorporated, where possible, the suggested changes in your                                
            redraft and letter of June 6.  However, many of the points in                               
            your letter reflected a transaction materially different from                               
            the one we believed we had negotiated with your clients”.                                   
            Ms. Bronner’s letter stated that H�agen-Dazs had incorporated                               
            “your proposed exclusion of Martin Strassberg and * * * [MIC]                               
            from the Purchase Agreement,” although it created “an important                             
            issue with which we must deal” in light of H�agen-Dazs’ main                                
            objective of obtaining “any and all distribution rights” of both                            
            Arnold and Martin and their respective companies.  Ms. Bronner                              
            proposed to resolve this issue through a separate “side                                     
            agreement” in which Martin and MIC “would clearly acknowledge”                              
            that all rights to distribute “H�agen-Dazs products have been                               
            transferred to * * * [SIC] and that he * * * [Martin] claims no                             
            rights to distribute H�agen-Dazs.”6                                                         


                  6 The record includes an “Agreement”, signed by Martin and                            
            Ms. Bronner on behalf of MIC and H�agen-Dazs, respectively, on                              
            July 8, 1988, that appears to be the contemplated “side                                     
            agreement” referred to by Ms. Bronner in her June 14 letter.                                
            This agreement states that H�agen-Dazs and MIC would enter into                             
            three distribution agreements upon the closing of the H�agen-Dazs                           
            agreement with Arnold and SIC.  The three distribution                                      
            agreements, which were signed July 22, 1988, provide MIC with                               
            various rights to distribute certain H�agen-Dazs ice cream                                  
            products in specified convenience stores, delis, places where ice                           
            cream is consumed on the premises, and other small independent                              
            grocery stores in New Jersey and parts of New York.                                         



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