For Auntie Annes franchises, what is included in the definition of 'Net Sales'?

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• 4. Recital A: "Approved Products" means hand-rolled soft pretzels prepared in accordance with a unique recipe, specialty products featuring soft pretzel dough, lemonade and other frozen and non-frozen drink products, and other related food products, beverage products, and related services we approve.
• 5. Recital A: The "Primary Mark" is: AUNTIE ANNE'S®
• 6. Section 1.1 (Accepted Location): The Accepted Location means: «location_name», «store_street_address», «store_city», «store_state» «store_zip». [OR] a location to be determined and added to this Agreement located in the following Site Selection Area: _____________________________________________.
• 7. Section 1.4.A. (Owners of Equity): Below is a complete list of your Owners and breakdown of your ownership structure:
• 8. Section 3.1 (Initial Franchise Fee): The Initial Franchise Fee shall be equal to $_______________.
• 9. Section 3.2.A. (Royalty Fee):

[For Cinnabon Co-Branded Shops in Other Locations:] The Royalty Fee shall be (a) 6% of Net Sales that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Cinnabon® side of the Franchised Business (which will be collected by the Co-Branded Franchisor) and (b) 7% of Net Sales that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Auntie Anne's® side of the Franchised Business ("AA Products"), which may be increased by us, in our sole discretion, at any time during the Term up to a maximum of 8% of the Net Sales that are attributable to AA Products (which will be collected by us). The Royalty Fee will be payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you).

[For Cinnabon Co-Branded Shops in Streetside Locations:] The Royalty Fee shall be 6% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the

Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We and the Co-Branded Franchisor will jointly collect the Royalty Fee from you based on the Net Sales of the entire Co-Branded Franchise.

[For Jamba Co-Branded Shops in Other Locations:] The Royalty Fee shall be (a) 6% of Net Sales that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Jamba® side of the Franchised Business ("Jamba Products"), which may be increased by the Co-Branded Franchisor, in its sole discretion, at any time during the Term up to a maximum of 7% of the Net Sales that are attributable to Jamba Products (which will be collected by the Co-Branded Franchisor) and (b) 7% of Net Sales that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Auntie Anne's® side of the Franchised Business ("AA Products"), which may be increased by us, in our sole discretion, at any time during the Term up to a maximum of 8% of the Net Sales that are attributable to AA Products (which will be collected by us). The Royalty Fee will be payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you).

[For Jamba Co-Branded Shops in Streetside Locations:] The Royalty Fee shall be 6% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We may, in our sole discretion, increase the Royalty Fee at any time during the Term up to a maximum of 7% of the Net Sales of the Franchised Business. We and the Co-Branded Franchisor will jointly collect the Royalty Fee from you based on the Net Sales of the entire Co-Branded Franchise.

10. Section 3.2.B. (Advertising Contribution):

The Advertising Contribution shall be in an amount we determine, in our sole discretion, which when combined with the Local Marketing Obligation (as specified in Section 10.1.E. (Local Marketing Obligation)) shall not exceed 5% of the Net Sales of the Franchised Business, payable each week on the Net Sales of the Franchised Business for the preceding week (or on any other basis stated in the Manuals or in our written notice to you). We will collect the Advertising Contribution from you based on the portion of the Net Sales of the Franchised Business that are attributable to products that we and the Co-Branded Franchisor mutually agree, in our and its sole discretion, to credit towards the Auntie Anne's® side of the Franchised Business.

Source: Item 22 — CONTRACTS (FDD page 106)