If Aw requires the lease to be collaterally assigned, what document outlines the terms of the Collateral Assignment of Lease?

obligation) to terminate this Agreement upon notice to you if you have not signed a lease for a site approved by us for your Papa Ray's Pizza Restaurant within one hundred eighty (180) from the date of this Agreement.

• 4.2 Lease of Premises. Any lease or sublease of the Premises must be approved by us before it is executed by you and we can require that certain terms and provisions be included in the lease or sublease. At our option, we may require that the lease: (i) have a term, with initial and renewal terms, at least equal to the initial term of this Agreement; (ii) be collaterally assigned to us (with the consent of the lessor, if required), by execution of the Collateral Assignment of Lease attached hereto as Exhibit 3 (the assignment may be exercised only upon your default under the lease or this Agreement or the expiration or termination of this Agreement); (iii) provides that the lessor shall give written notice to us (concurrently with you) of any default by you under the lease, and will give us an additional fifteen (15) days to cure any default not cured by you during the cure period and assign the lease to us if defaults are cured by us; (iv) permits the use on the Premises of all signs required by the us for Papa Ray's Pizza Restaurants, subject to applicable local laws, codes and ordinances; (v) provides that on expiration or termination of your Franchise Agreement, we may enter the leased

premises and remove all signs, sign-faces and other items identifying Marks; (vi) provides that the Premises will only be used for the operation of a Papa Ray's Pizza Restaurant; and (vii) provides that the lessor will not lease other premises in the same shopping center to a competing business.

• 4.3 Construction Specifications. We will furnish specifications reflecting our requirements for interior and exterior design, decoration, fixtures, furniture, layout, equipment, and signs for Papa Ray's Pizza Restaurants. It will then be your responsibility to comply with all ordinances, building codes, permit requirements, and lease requirements and restrictions applicable to the Premises. You must advise us of any variation from the specifications that are necessary to meet local requirements. You must submit final construction plans and specifications to us for our approval before you begin construction at the Premises, and must construct the Papa Ray's Pizza Restaurant in accordance with those approved plans.
• 4.4 Development of the Papa Ray's Pizza Restaurant. You agree at your own expense to do the following: (1) secure all financing required to fully develop the Papa Ray's Pizza Restaurant; (2) obtain all required building, utility, sign, and business permits and licenses and any other required permits and licenses; (3) construct the Papa Ray's Pizza Restaurant according to the construction plans and specifications we have approved; (4) decorate the Papa Ray's Pizza Restaurant in compliance with plans and specifications we have approved; (5) purchase and install all required fixtures, furniture, equipment, and signs; and (6) purchase an opening inventory of required products, and supplies.
• 4.5 Fixtures, Furniture, Equipment and Signs. You agree to purchase and install, at your expense, all fixtures, furniture, equipment (including required point of sale and/or computer systems) and signs we may direct from time to time and to purchase and use in the development and operation of the Papa Ray's Pizza Restaurant only fixtures, furniture and equipment from approved suppliers and/or that meet our standards and specifications.
• 4.6 Papa Ray's Pizza Restaurant Opening. You agree not to open the Papa Ray's Pizza Restaurant for business until: (1) all of your obligations under Paragraphs 4.1 through 4.5 of this Section 4 have been fulfilled; (2) we determine that the Papa Ray's Pizza Restaurant has been constructed, decorated, furnished, equipped, and stocked, with furniture, fixtures, equipment, inventory, materials and supplies in accordance with plans and specifications we have approved; (3) you and your Owners and any Operating Manager complete all initial training required by this Agreement and have provided pre-opening training to all of your employees to our satisfaction; (4) the initial franchise fee has been paid in full; and (5) you have furnished us with copies of all insurance policies required by Paragraph 11.12 of this Agreement. You must have met the foregoing requirements and opened your Papa Ray's Pizza Restaurant within twelve (12) months of the Agreement Date.
• 4.7 Grand Opening Advertising, Marketing and Promotional Program. You agree to conduct a grand opening advertising, marketing and promotional program for the Papa Ray's Pizza Restaurant during the first ninety (90) days after the opening of the Papa Ray's Pizza Restaurant and to spend no less than Fifteen Thousand Dollars ($15,000.00).

Source: Item 22 — CONTRACTS (FDD pages 39–40)