What happens if a Cicis franchisee fails to comply with the Development Schedule?

We may terminate this Agreement, effective upon delivery of written notice to you, if:

• 1. you fail to comply with the Development Schedule or fail to make progress in the development of Restaurants to indicate, in our determination, that you will not be able to satisfy your development obligations under this Agreement for the then-current Development Period;

C. ADDITIONAL REMEDIES

If you or your Affiliates are in default of any provision of this Agreement or any Franchise Agreement executed pursuant hereto, we may, in our sole discretion, instead of terminating this Agreement terminate or modify any territorial rights or protection granted to you in Section 2.B. of this Agreement, reduce the size of your Development Area, reduce the number of Restaurants listed in the Development Schedule, and/or pursue any other remedy we may have at law or in equity. Our exercise of any of our options under this Section will not constitute a waiver by us to exercise our option to terminate this Agreement at any time with respect to a subsequent event of default of a similar or different nature and will not obligate us to refund any portion of the Development Fee.

C. SATISFACTION OF DEVELOPMENT SCHEDULE.

The Development Schedule is not our representation, express or implied, that the Development Area can support, or that there are or will be sufficient sites for, the number of Restaurants specified in the Development Schedule or for any particular Development Period. We are relying on your knowledge of the Development Area and your representation that you have conducted your own independent investigation and have determined that you can satisfy the Development Schedule.

D. LOCATING SITES FOR RESTAURANTS.

Source: Item 23 — RECEIPTS (FDD pages 65–263)