What specific section of the Cinnabon Franchise Agreement is amended by the additional terms outlined in Section 22.11?

per employee and $1,000,000 per accident;

• 1. Cyber Liability insurance with limits not less than $1,000,000; and
• 1. Other insurance required by an applicable state or local authority.

If you obtain a claims made policy, you must provide a tail coverage policy for no less than one year after the expiration or termination of this Agreement or the closure of the Franchised Business, whichever occurs first. The tail coverage limits must be equal to, or greater than, the limits provided in the prior policy.

If you operate an Express Bakery located in a Host Facility, the insurance required under this Section may be the same insurance that is carried for the Host Facility, provided that it complies with this Section.

18. Section 15.4 (Restrictive Covenants):

A "Competing Product" includes any cinnamon rolls or cinnamon-based products.

19. Section 20.5 (Notices):

The notice address for the Franchisor shall be:

Cinnabon LLC, 5620 Glenridge Drive NE, Atlanta, Georgia 30342, Attention: Legal Department

The notice address for the Franchisee shall be: «C1_contact_street», «C1_contact_city», «C1_contact_state» «C1_contact_zip».

• 20. Section 22.11 (Additional Terms; Inconsistent Terms): The following additional terms amend the applicable Sections of the Agreement:
  • A. Section 1.1 (Grant of Franchise) is amended to add the following sentence:

Your Franchised Business shall operate as a Cinnabon® express bakery, which shall sell a limited selection of Approved Products designated by us from within a facility operated by a third party (an "Express Bakery"). The Express Bakery may be located in another facility, which shall be referred to as the "Host Facility."

• B. Section 2.2.B(i) (Conditions for Renewal Term) is deleted in its entirety and replaced with the following:
  • (i) Agree in writing that, before the Renewal Term begins, the Franchised Business will reflect our then-current Standards.
• C. Section 2.2.B(ii) (Conditions for Renewal Term) is revised to replace "thencurrent Initial Franchise Fee" with "then-current Initial Franchise Fee for Express Bakeries."
• D. Section 5.4.C (Preferred Lease Terms) is amended by adding the following:

This Section 5.4.C. (Preferred Lease Terms) shall not apply if the Franchised Business is an Express Bakery located in a Host Facility.

• E. Section 5.5 (Relocation of the Franchised Business) is deleted in its entirety.
• F. Section 7.2 (Approved Products) shall be supplemented with the following sentences at the end of Section 7.2:

In addition, we may, from time to time, permit supplementary Proprietary Products ("Supplemental Products") to be offered at Express Bakeries, which shall be included within the definition of Proprietary Goods. You may only offer and sell the Supplemental Products that we approve during the periods we authorize such Supplemental Products for sale at Express Bakeries. Supplemental Products may be offered for a limited time only and prices for Supplemental Products may vary from Proprietary Goods. Supplemental Products offered may change from time to time during the Term and nothing in this Agreement grants you continued rights to offer Supplemental Products.

• G. Section 7.6 (Test Marketing) is deleted in its entirety.
• H. Section 10.3 (Advertising Fund) and Section 10.4 (Advertising Cooperatives) are deleted in their entirety.
• I. Section 10.5 (Our Advertising Materials) is amended by adding the following:

You agree that we undertake no obligation to make expenditures on your behalf, to ensure that any particular franchisee benefits directly or pro rata from the placement of advertising, or to ensure that any advertising impacts or penetrates your market area.

J. Section 12.7 (Your Participation; Manager):

If the Franchised Business is an Express Bakery located in a Host Facility, your Managers may be the same managers as the Host Facility in which the Franchised Business will operate.

• K. Section 12.6 (Refreshes and Remodels) is deleted in its entirety.
• L. Section 12.8 (Computer System) will not apply if your Franchised Business is located in a Host Facility.
• M. Section 14.2 (Discrepancies) is deleted in its entirety.
• N. Section 14 (Right to Access; Records; Reporting) is amended by adding the following section as Section 14.8:
  • 14.8 Inclusion of Net Sales in Host Facility Reporting. To the extent that your Host Facility is a franchise and the franchisor of the Host Facility requires, you acknowledge and agree that your Net Sales of Approved Products will be included in the sales reported under the franchise agreement for the Host Facility.
• O. Section 16.2 (No Transfer Without Our Consent) is amended by adding the following sentence:

In addition, if you operate an Express Bakery located in a Host Facility and your Host Facility is a franchise, you may not Transfer any of your rights or obligations under this Agreement unless you also transfer the Host Facility in compliance with any franchise agreement for the Host Facility.

• P. Sections 16.3.K. (Control Transfer), 16.4 (Non-Control Transfers), 16.5 (Related Party Transfers), and 18.2.D. (Reinstatement Fee) are revised to replace each instance of "then-current initial franchise fee" with "then-current initial franchise fee for an Express Bakery."
• Q. Section 16.8 (Right of First Refusal) is deleted in its entirety.
• R. Section 17.2 (Our Termination; No Opportunity to Cure) is amended by adding the following Section 17.2.M. and 17.2.N.:
  • 17.2.M. If you operate an Express Bakery located in a Host Facility and you fail to comply with any of the terms of the franchise agreement for the Host Facility or your franchise agreement for the Host Facility is terminated or expires.
  • 17.2.N. If you operate an Express Bakery located in a Host Facility and the Host Facility's brand deteriorates in quality or reputation such that, in our sole judgment, our association with the Host Facility's brand is damaging or may damage the Cinnabon brand or the Marks.
• S. Section 18.1.F (General Obligations) is amended to add the following sentence:

If you operate an Express Bakery located in a Host Facility, you are not required to transfer the Franchised Business' telephone number to us if the telephone number is the telephone number for the Host Facility.

T. Section 18.3.A (Amount) is deleted in its entirety and replaced with the following:

Any termination of this Agreement before the expiration of the Term will deprive us of the benefit of the bargain we are entitled to receive under this Agreement. As a result, if this Agreement is terminated after the Opening Date, you will pay us, as liquidated damages for the loss of the benefit of the bargain we are entitled to receive, and not as a penalty, a lump-sum payment equal to the average amount you paid per month to purchase Proprietary Goods during the 36 months before the termination date times the lesser of the remainder of the Term or 36 months. If less than 36 months have lapsed between the Opening Date and the termination date, the liquidated damages will be the average amount you paid per month to purchase Proprietary Goods during the time between the Opening Date and the termination date, multiplied by 36. If the termination occurs before the Opening Date, you will forfeit the Initial Franchise Fee paid and will not owe us any liquidated damages.

U. Section 18.4 (Additional Obligations) is deleted in its entirety.

[SCHEDULE A SIGNATURE PAGE FOLLOWS]

Signature Page for Schedule A (Franchise Specific Terms)

Source: Item 23 — Receipts (FDD pages 114–399)