Under the Security Agreement for Big Apple Bagels, what does the term 'Collateral' refer to?

action which might be brought by any depositor or any other persons because of your actions taken pursuant to the foregoing request, or in any manner arising by reason of your participation.

NOTICE TO OWNER

• 1. ATTACH ONE VOIDED CHECK HERE.
• 1. BE SURE ALL 7 ITEMS SHOWN ABOVE ARE COMPLETED.
• 1. SIGN YOUR NAME WHERE INDICATED.

Rider E

TO THE BAB SYSTEMS, INC. FRANCHISE AGREEMENT

SECURITY AGREEMENT

| | This Security Agreement dated is by and between | | |------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | BAB Systems, Inc., an Illinois corporation, of 500 Lake Cook Road, Suite 475, Deerfield, Illinois | | | 60015 | ("Secured Party") and | | | | , whose principal place of business is ("Debtor"). RECITALS | | | A. | Debtor is a franchisee under a Franchise Agreement dated ("Franchise Agreement") with Secured Party as Franchisor, pursuant to which Franchise Agreement Debtor has ongoing monetary and non-monetary obligations to Secured Party. | | | B. | Debtor has locations at which Debtor operates businesses known as "Big Apple Bagels" ("BAGELS Stores"), pursuant to the Franchise Agreement; the addresses of the locations are listed on Schedule "A" attached hereto and incorporated herein by reference. | | | C. | Debtor is giving Secured Party a security interest in the collateral described in this | | | Agreement. | NOW THEREFORE, in consideration of the several and mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: | | | 1. | The Recitals set forth above shall be incorporated into this part of the Agreement as though they were fully set forth herein. | | | 2. | Description of Collateral: the following property located at or relating to the BAGELS Stores noted on Schedule A: all equipment, furniture, fixtures, inventory, personal property, supplies, general intangibles, accounts receivable, accounts, contract rights, chattel paper and instruments, now owned or hereafter acquired by the Debtor, and all additions and accessions to, and all proceeds and products of the foregoing ("Collateral"). | | | 3. | Debtor hereby grants to Secured Party a security interest in the Collateral described in | | paragraph 2 above, to secure all debts, obligations and liabilities of Debtor to Secured Party arising

out of the Franchise Agreement described in Paragraph A of the Recitals.

• 1. The Collateral will be located at the addresses noted on Schedule A hereto. Debtor will not, without Secured Party's consent, remove the Collateral from the locations noted on Schedule A
• 1. Debtor will not, without Secured Party's consent: (i) allow the Collateral to become an accession to other goods;

Source: Item 22 — CONTRACTS (FDD pages 86–87)