What is the relationship between the Successor Franchise Rider and the Fat Shack Inc. Franchise Agreement?

SUCCESSOR FRANCHISE RIDER TO FAT SHACK INC. FRANCHISE AGREEMENT

EXHIBIT VI TO FRANCHISE AGREEMENT

RIDERS TO FRANCHISE AGREEMENT FOR SPECIFIC STATES AND PROVINCES

If any one of the following Riders to the Franchise Agreement for Specific States and Provinces ("Riders") is checked as an "Applicable Rider" below, then that Rider shall be incorporated into the Franchise Agreement entered into by FAT SHACK INC. and the undersigned Franchisee. To the extent any terms of an Applicable Rider conflict with the terms of the Franchise Agreement, the terms of the Applicable Rider shall supersede the terms of the Franchise Agreement.

Applicable Rider:

18.4. Prerequisites for Successor Franchise Rights

Franchisee shall only be entitled to exercise its successor franchise rights if Franchisee:

• d. Executes a successor franchise rider in the form then in use by FSI which (unless prohibited by law) includes a general release of any and all claims against FSI, its affiliates and their respective officers, directors, employees and agents;
• e. Pays a successor franchise fee ("Successor Franchise Fee") in the amount of $6,000.00 upon each exercise of the successor franchise rights and any other fees set forth in the successor franchise rider to cover FSI's expenses related to reviewing Franchisee's operations and approving the option. The Successor Franchise Fee will be due and payable upon execution of FSI's then current Franchise Agreement and will be nonrefundable under all circumstances once paid. The Successor Franchise Fee is paid in lieu of an additional initial franchise fee;

Source: Item 23 — Receipts (FDD pages 53–223)