NATHAN'S FAMOUS, INC.
                              1400 Old Country Road
                            Westbury, New York 11590




                                              July 12, 2005



Donald L. Perlyn
2798 N.W. 27th Terrace
Boca Raton, Fl. 33434

           Re: Employment Agreement with Miami Subs Corporation dated as of
               ------------------------------------------------------------
               January 15, 2005 ("Employment Agreement")
               ------------------------------------------------------------

Dear Mr. Perlyn,


     This letter will  confirm our  agreement  that,  in  consideration  of your
execution and delivery of Amendment No. 1 to Employment  Agreement between Miami
Subs Corporation and you, upon any sale by Nathan's Famous, Inc. of the stock of
Miami Subs Corporation and any termination of the Employment  Agreement upon the
consummation  of such  sale,  the  undersigned  will  enter  into an  employment
agreement  with you on  substantially  the same  terms and  conditions  as those
currently contained in such Employment Agreement.


                                              Very truly yours,

                                              NATHAN'S FAMOUS, INC.


                                              By:  /s/Wayne Norbitz
                                                 ------------------------
                                                 Title:President

ACCEPTED AND AGREED

By: /s/Donald Perlyn
   --------------------
    Donald Perlyn