(Dallas Nov.

1)
In 1996, MultiRestaurant Concepts, Ltd. and related entities (MRC) contracted with the
DFW Airport Board (Board) for the operation of food and beverage concessions at the
Airport. The lease excluded from rent the alcoholic beverage taxes collected by
concessionaires from the retail sale of alcoholic beverages and paid to the State of Texas.
When the lease was re-written in 2004, it apparently left out the exclusion. But Pat
Gleason, former Vice President of Airport Concessions and Vice President of Revenue
Management who had supervisory control over the administration of the concessionaires’
leases, says that was a mistake and it was never his or the Airport’s intent to collect the
tax as rent - the new language merely was a simplification of the language. From 2004
until March 2010, the Airport did not seek to collect the alcohol tax as rent from
concessionaires and did not change any of its billings or accounting forms. MRC was
first made aware of the Board’s intent to collect what basically amounts to collecting
“rent” on excise taxes during April, 2010.

On May 12, 2010, a representative of the Airport, met with Gilbert Aranza, representative
of MRC, to discuss the tax/rent issue. At that meeting, Mr. Aranza was told by the
representative that he had personally researched the issue with TABC officials, the Texas
Comptroller’s office, other Texas airports, and other Texas State officials and concluded
that the Airport was incorrect in its position that the additional “rent” was owed. It turns
out that no other airport in Texas or the United States collects rent on such amounts.
Nevertheless, the Board was not persuaded and continued to press concessionaires to pay
the taxes as part of the rent. Although other concessionaires eventually paid the tax as
rent to the Airport, some paid under protest and others negotiated a payout.

The Board has stated that the rent for the new concessions leases at terminal A will NOT
include the taxes in the calculation of rent. The RFP’s for Terminal A went out in
September and are due in December. The RFP’s disqualify any concessionaire that is in
a dispute with the Board from submitting an RFP. However, the lease states any
concessionaire that has a dispute with the Board over the payment of rent shall not be
prejudiced by its failure to pay the disputed amount during the pendency of the dispute.
MRC takes the position that it should be entitled to submit proposals for Terminal A
while they work with the Board on the tax as rent issue. As one of the top concessionaires
at the Airport, MRC has made several offers to resolve the dispute.

“The Airport Board and virtually all similar bodies express public support for creating
opportunities for local companies and for minority-owned companies,” said Gilbert
Aranza, President of MRC. “These actions would literally obliterate an investment of
millions of dollars and over a decade of commitment to DFW Airport. We are one of the
few truly minority owned and local enterprises with a track record of superior
performance that benefits every traveler coming through DFW Airport.”

MultiRestaurant Concepts, Ltd. and related entities are among the top food and beverage
concessionaires at DFW by the Airport’s own independent third party conducted
customer surveys. MRC and its affiliates operate sixteen food and beverage locations at
DFW, thirteen of which are in the top 35 percent of all concessions in terms of customer
service and seven of which are in the top 10 out of 111. MRC was Concessionaire of the
Year at DFW in 2009 and several of the previous years, and pays the Airport over
$300,000 per month in rent.