How does the Extreme Art Rider relate to the main franchise agreement for Extreme Art Studio?

Prior to opening the second and each subsequent Extreme Art Studio Business under a Standard Franchise, you and we will execute the then-current form of Extreme Art Rider ("Extreme Art Rider"), the current form of which is attached to this Franchise Agreement in Attachment E but which may vary materially and substantially from the form attached to this Franchise Agreement.

If you operate multiple Extreme Art Studio Businesses, each reference to the "Franchised Business" herein shall refer to each individual Extreme Art Studio Business that you operate under this Franchise Agreement, unless otherwise specified.

All obligations under this Franchise Agreement shall apply individually to each Extreme Art Studio Business you operate.

• 1. Franchise Agreement and Extreme Art Riders. Franchisee shall exercise the rights under this Addendum only by entering into a separate Extreme Art Rider with Franchisor for each Additional Franchise. Franchisee shall sign the current form of Extreme Art Rider then being used by Franchisor for an Extreme Art franchise for each Additional Franchise. Franchisee acknowledges that the then-current form of Extreme Art Rider may differ from the Extreme Art Rider found in the Franchise Agreement. Franchisee will not be required to pay a separate initial franchise fee.
• 1. Limited Rights. This Addendum does not grant Franchisee the right to franchise, license, sub-franchise, or sublicense others to operate Franchised Businesses. Only Franchisee (and/or Franchisee affiliated entities Franchisor approves) may develop, open, and operate Additional Franchises pursuant to this Addendum and Extreme Art Riders. This Addendum only grants Franchisee the right to enter into Extreme Art Riders to open Additional Franchises subject to the terms of the franchise agreement for such Additional Franchises. Franchisee is not granted any territorial rights or other rights except those granted under the franchise agreement pursuant to the Extreme Art Riders for the Additional Franchises. Except for the initial franchise fee, Franchisee shall be liable for all costs and expenses incurred in opening the Additional Franchises.
• 1. Term. This Addendum and Franchisee's right to open Additional Franchises shall terminate as of the date of termination or expiration of the Franchise Agreement.

Once you have received approval of the site location for the initial Extreme Art Studio Business that satisfies the demographics and location requirements minimally necessary for an Extreme Art Studio Business and that meets our minimum current standards and specifications for the build out, interior design, layout, floor plan, signs, designs, color and décor, we will complete Attachment E-1 attached hereto, to specify the Approved Location for your initial Extreme Art Studio Business as provided in Section 1.4 of the Agreement.

• 6. Territory. Once you and we have mutually agreed upon a Territory in conformance with the territory guidelines stated in Item 12 of the Franchise Disclosure Document, we will complete Attachment E-1 to specify the Territory.
• 8. Termination, Expiration and Renewal.This Extreme Art Rider and Franchisee's right to operate the Rider Business hereunder shall terminate as of the date of termination or expiration of the Franchise Agreement, or upon a transfer of the Rider Business in compliance with the provisions of the Franchise Agreement, regardless of when this Extreme Art Rider is executed, and shall be subject to the renewal provisions of Section 13 of the Franchise Agreement.

Source: Item 22 — CONTRACTS (FDD page 49)