What is the role of BALC in the Chick Fil A Food Truck Lease agreement?

pursuant to the terms and conditions of this Agreement and the Franchise Agreement, including the limited License and the Food Truck License Summary (the "Licensed Use"). The Operator will use the Food Truck solely for the Licensed Use and for no other purpose.

• 1. Food Truck Lease; Sublease. During the Term, and subject to the terms of this Agreement, Chickfil-A grants to Operator a sublease for the use and occupancy of the Food Truck. The Operator's use of the Food Truck is subject to all applicable laws, rules and regulations and the lease attached as Exhibit "B" to this Agreement and any other exhibits to the attached lease (the "Food Truck Lease"), made a part of this Agreement by this reference. The Operator agrees to use and operate the Food Truck in accordance with the Food Truck Lease and otherwise comply in all respects with the terms and conditions of the Food Truck Lease, as the same may be amended or changed by Chick-fil-A (as prime lessee) and Banc of America Leasing & Capital or its permitted assignee (as prime lessor) ("BALC"), from time to time:
  • a. Compliance with Agreements. Neither the Operator nor its employees, agents, contractors or invitees will perform any act, neglect to perform any duty or fail to comply with any standard

• of conduct that would constitute a violation of the Food Truck Lease, this Agreement or the Franchise Agreement;

• b. No Further Subleases; No Amendments. Operator will not enter into any lease agreements or other agreements allowing parties other than Operator or Chick-fil-A rights concerning possession, use, operation, or control of the Food Truck without the prior written approval of Chick-fil-A and, as determined by Chick-fil-A, BALC, and Chick-fil-A and will not modify amend or extend the time for payment or performance in any material respect of its obligations under any agreement relating to Operator's use of the Food Truck without the express prior written consent of BALC;

• c. Subordination. The rights of the Operator in and to the Food Truck will be subject and subordinate to the rights of BALC under the Food Truck Lease as provided in the Food Truck Lease, and the Operator will not assert or claim any right, title or interest as the owner or holder of legal or equitable title to the Food Truck, including any of its equipment, furnishing and fixtures (except proprietary equipment and equipment installed to customize the Food Truck for operation as an extension of a franchised Chick-fil-A restaurant business, subject to the rights of Chick-fil-A);

• d. Payments. Subject to the terms of Section 7(c) of this Agreement, Chick-fil-A will pay the lease rental payment described in the Food Truck Lease directly to BALC per the terms of the Food Truck Lease;

• e. Termination. The Food Truck Lease and all of the Operator's rights in and to the use and possession of the Food Truck will terminate, at the option of BALC, upon the expiration or earlier termination of the Food Truck Lease by reason of the occurrence of an Event of Default under the Food Truck Lease or otherwise, and the Operator will thereupon return the Food Truck to Chick-fil-A or at Chick-fil-A's election and direction to BALC in accordance with all of the terms and provisions of the Food Truck Lease and of this Agreement;

• f. Cost of Performance. If the Operator fails to perform any of its obligations under this Agreement, including under the attached Food Truck Lease, Chick-fil-A, at its option, may (but is not required to) do the same or cause the same to be done, in addition to any and all other rights and remedies of Chick-fil-A. The cost incurred by Chick-fil-A in connection with performance by Chick-fil-A will be an additional charge due from the Operator to Chick-fil-A, together with interest pursuant to Section 14.11 of the Franchise Agreement.

Source: Item 23 — Receipts (FDD pages 103–600)