Under what condition is the Addendum mentioned in this section of the Hardees FDD executed?

ADDENDUM TO THE HARDEE'S RESTAURANT FRANCHISE AGREEMENT REQUIRED FOR CALIFORNIA FRANCHISEES

This Addendum to the Hardee's Restaurant Franchise Agreement dated between Hardee's Restaurants LLC ("HR") and ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. 1. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of the franchise to Franchisee was made in the State of California; (B) Franchisee is a resident of the State of California; and/or (C) the Restaurant will be located or operated in the State of California. 2. The following sentences are added immediately before the last sentence of Section 16: Franchisee (on behalf of all Releasors) and all guarantors also expressly agree that, with respect to this release, any and all rights granted under Section 1542 of the California Civil Code are expressly waived. That Section reads as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor." 3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement. 4. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect. HR: HARDEE'S RESTAURANTS LLC Print Name: Danell Caron Vice President, Legal Print Name: Date:

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–84)