Document:

Exhibit
4.2 

 

 

 

FAT
BRANDS ROYALTY I, LLC,

 

as
Issuer

 

and

 

UMB
BANK, N.A.,

 

as
Trustee

 

 

 

SERIES
2020-2 SUPPLEMENT

 

Dated
as of September 21, 2020

 

to

 

BASE
INDENTURE

 

Dated
as of March 6, 2020

 

 

 

$40,000,000
Series 2020-2 9.75% Fixed Rate Subordinated Secured Notes, Class M-2

 

 

 

    	 

     

    

 

	ARTICLE
    I	DEFINITIONS; RULES OF CONSTRUCTION	1
	 	 	 	 	 
	ARTICLE
    II	AUTHORIZATION AND DETAILS	2
	 	 	 	 	 
	 	Section 2.1	Authorization
    of the Series 2020-2 Class M-2 Notes	2
	 	Section 2.2	Details
    of the Series 2020-2 Class M-2 Notes	2
	 	Section 2.3	Denominations	2
	 	Section 2.4	Monthly
    Allocation Dates	2
	 	 	 	 	 
	ARTICLE
    III	SERIES 2020-2 ALLOCATIONS; PAYMENTS	2
	 	 	 	 	 
	 	Section 3.1	Allocations
    of Net Proceeds with Respect to the Series 2020-2 Class M-2 Notes	2
	 	Section 3.2	Reserved	3
	 	Section 3.3	Certain
    Distributions to the Series 2020-2 Class M-2 Noteholders	3
	 	Section 3.4	Series
    2020-2 Interest	3
	 	Section 3.5	Payment
    of Principal	4
	 	Section 3.6	Manager	8
	 	 	 	 	 
	ARTICLE
    IV	FORM OF SERIES 2020-2 NOTES	8
	 	 	 	 	 
	 	Section 4.1	Issuance
    of Series 2020-2 Class M-2 Notes	8
	 	Section 4.2	Transfer
    Restrictions of Series 2020-2 Class M-2 Notes	9
	 	Section 4.3	Note
    Owner Representations and Warranties	15
	 	Section 4.4	Limitation
    on Liability	17
	 	 	 	 	 
	ARTICLE
    V	GENERAL	17
	 	 	 	 	 
	 	Section 5.1	Information	17
	 	Section 5.2	Exhibits	18
	 	Section 5.3	Ratification
    of Base Indenture	18
	 	Section 5.4	Reserved	18
	 	Section 5.5	Counterparts	18
	 	Section 5.6	Governing
    Law	18
	 	Section 5.7	Amendments	18
	 	Section 5.8	Termination
    of Series 2020-2 Supplement; Defeasance	18
	 	Section 5.9	Limited
    Recourse	19
	 	Section 5.10	Entire
    Agreement	19
	 	Section 5.11	Control
    Party Protections	19

 

    	ii

     

    

 

	ANNEXES	 
	 	 
	Annex
    A	Series
    2020-2 Supplemental Definitions List
	Annex
    B	Schedule
    of Relevant Dates
	 	 
	EXHIBITS	 
	 	 
	Exhibit
    A-1	Form
    of Rule 144A Global Note
	Exhibit
    A-2	Form
    of Temporary Regulation S Global Note
	Exhibit
    A-3	Form
    of Permanent Regulation S Global Note
	Exhibit
    B-1	Transfer
    Certificate (Rule 144A Global Note to Temporary Regulation S Global Note)
	Exhibit
    B-2	Transfer
    Certificate (Rule 144A Global Note to Permanent Regulation S Global Note)
	Exhibit
    B-3	Transfer
    Certificate (Regulation S Global Note to Rule 144A Global Note)
	Exhibit
    C	Form
    of Quarterly Noteholders’ Report

 

    	iii

     

    

 

SERIES
2020-2 SUPPLEMENT, dated as of September 21, 2020 by and among FAT BRANDS ROYALTY I, LLC (the “Issuer”), and
UMB Bank, N.A., as trustee (in such capacity, the “Trustee”), to the Base Indenture, dated as of March 6, 2020
(as amended by that certain Supplement Number One, dated September 21, 2020, by and among the Issuer and the Trustee, as may be
further amended, amended and restated, modified or supplemented from time to time, exclusive of Series Supplements, the “Base
Indenture”), by and among the Issuer and UMB Bank, N.A., as Trustee and as Securities Intermediary.

 

PRELIMINARY
STATEMENT

 

WHEREAS,
Sections 2.2 and 13.1 of the Base Indenture provide, among other things, that the Issuer and the Trustee may at
any time and from time to time enter into a Series Supplement to the Base Indenture for the purpose of authorizing the issuance
of one or more Series of Notes (as defined in Annex A of the Base Indenture) upon satisfaction of the conditions set forth
therein; and

 

WHEREAS,
all such conditions have been met or waived by the Control Party (as directed by the Controlling Class Representative) for the
issuance of the Series of Notes authorized hereunder.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

DESIGNATION

 

There
is hereby created a Series of Notes to be issued pursuant to the Base Indenture and the Series 2020-2 Supplement, and such Series
of Notes shall be designated as the Series 2020-2 Class M-2 Notes. On the Series 2020-2 Closing Date, one (1) Class of Notes of
such Series shall be issued as follows: Series 2020-2 9.75% Fixed Rate Subordinated Secured Notes, Class M-2 (as referred to herein,
such Class or Notes thereof, as the context requires, the “Series 2020-2 Class M-2 Notes”).

 

ARTICLE
I

 

DEFINITIONS;
RULES OF CONSTRUCTION

 

All
capitalized terms used herein (including in the preamble and the recitals hereto) and not otherwise defined herein shall have
the meanings assigned to such terms in the Series 2020-2 Supplemental Definitions List attached hereto as Annex A (the
“Series 2020-2 Supplemental Definitions List”) as such Series 2020-2 Supplemental Definitions List may be amended,
supplemented or otherwise modified from time to time in accordance with the terms hereof. All capitalized terms not otherwise
defined herein or therein, and the term “written” or “in writing”, shall have the meanings assigned thereto
in the Base Indenture or the Base Indenture Definitions List attached to the Base Indenture as Annex A thereto, as such
Base Indenture or Base Indenture Definitions List may be amended, supplemented or otherwise modified from time to time in accordance
with the terms of the Base Indenture. Unless otherwise specified herein, all Article, Exhibit, Section or Subsection references
herein shall refer to Articles, Exhibits, Sections or Subsections of the Series 2020-2 Supplement. Unless otherwise stated herein,
as the context otherwise requires or if such term is otherwise defined in the Base Indenture, each capitalized term used or defined
herein shall relate only to the Series 2020-2 Class M-2 Notes and not to any other Series of Notes issued by the Issuer. The rules
of construction set forth in Section 1.4 of the Base Indenture shall apply for all purposes under the Series 2020-2 Supplement.

 

    	1

     

    

 

ARTICLE
II

 

AUTHORIZATION
AND DETAILS

 

Section
2.1 Authorization of the Series 2020-2 Class M-2 Notes. The Series 2020-2 Class M-2 Notes in the aggregate principal amount
of $40,000,000.00 are hereby authorized to be issued in the form of typewritten Notes representing Book-Entry Notes.

 

Section
2.2 Details of the Series 2020-2 Class M-2 Notes. The Series 2020-2 Class M-2 Notes shall be subject to the terms of the
Base Indenture applicable to the Notes as described therein, as modified herein, and shall bear interest as set forth in Section
3.4 of this Series 2020-2 Supplement. The Series 2020-2 Class M-2 Notes shall be issued at a purchase price equal to 92.00%
of the principal amount of such Notes.

 

Section
2.3 Denominations. The Series 2020-2 Class M-2 Notes shall be issued in minimum denominations of $1,000,000.00 and integral
multiples of $1,000 in excess thereof.

 

Section
2.4 Monthly Allocation Dates. For the avoidance of doubt, the Monthly Allocation Dates and the date of delivery of the
Monthly Manager’s Certificate through the Series 2020-2 Class M-2 Legal Final Maturity Date are as set forth in Annex
B of this Series 2020-2 Supplement.

 

ARTICLE
III

 

SERIES
2020-2 ALLOCATIONS; PAYMENTS

 

With
respect to the Series 2020-2 Class M-2 Notes only, the following shall apply:

 

Section
3.1 Allocations of Net Proceeds with Respect to the Series 2020-2 Class M-2 Notes.

 

(a)
On the Series 2020-2 Closing Date, the net proceeds from the issuance and sale of the Series 2020-2 Class M-2 Notes to the purchasers
of the Series 2020-2 Class M-2 Notes shall be deposited into the Collection Account and disbursed by the Trustee in accordance
with the instructions of the Issuer set forth in the Flow of Funds Memorandum of the Issuer dated as of September 21, 2020.

 

(b)
On and after the Series 2020-2 Closing Date, proceeds of the Series 2020-2 Class M-2 Notes may be used for general corporate purposes
of the Issuer and FAT Brands Inc., including the making of distributions and the stock acquisition of Johnny Rockets Holding Co.
by FAT Brands Inc., all subject to the terms of the Base Indenture, including Section 8.18 thereof, and for the disbursements
described in Section 3.1(a).

 

    	2

     

    

 

Section
3.2 Reserved.

 

Section
3.3 Certain Distributions to the Series 2020-2 Class M-2 Noteholders. On each Quarterly Payment Date, based solely upon
the most recent Quarterly Noteholders’ Report in the form attached hereto as Exhibit C and as required under Section
4.1(c) of the Base Indenture, the Trustee shall, in accordance with Section 6.1 of the Base Indenture, remit to the
Series 2020-2 Class M-2 Noteholders the amounts withdrawn from the Subordinated Notes Interest Payment Account, Subordinated Notes
Principal Payment Account or otherwise, as applicable, pursuant to Section 5.11 of the Base Indenture or otherwise, for
the payment of interest and fees and, to the extent applicable, principal or other amounts in respect of the Series 2020-2 Class
M-2 Notes on such Quarterly Payment Date.

 

Section
3.4 Series 2020-2 Interest.

 

(a)
Series 2020-2 Class M-2 Notes Interest. From the Series 2020-2 Closing Date until the Outstanding Principal Amount of the
Series 2020-2 Class M-2 Notes has been paid in full, the Outstanding Principal Amount of the Series 2020-2 Class M-2 Notes will
accrue interest for each Interest Accrual Period (after giving effect to all payments of principal made to the Series 2020-2 Class
M-2 Noteholders as of the first day of such Interest Accrual Period, and also giving effect to prepayments, repurchases and cancellations
of Series 2020-2 Class M-2 Notes during such Interest Accrual Period) at the Series 2020-2 Class M-2 Note Rate. Such accrued interest
will be due and payable in arrears on each Quarterly Payment Date, from amounts that are made available for payment thereof: (i)
on any related Monthly Allocation Date in accordance with the Priority of Payments and (ii) on such Quarterly Payment Date in
accordance with Section 5.11 of the Base Indenture, commencing on the Initial Quarterly Payment Date; provided that
in any event, all accrued but unpaid interest shall be due and payable in full on the Series 2020-2 Class M-2 Legal Final Maturity
Date or on any other day on which all of the Series 2020-2 Class M-2 Outstanding Principal Amount is required to be paid in full.
To the extent any interest accruing at the applicable Series 2020-2 Class M-2 Note Rate is not paid when due, such unpaid interest
will accrue interest at the Series 2020-2 Class M-2 Note Rate. All computations of interest at the Series 2020-2 Class M-2 Note
Rate shall be made on a 30/360 Day Basis.

 

(b)
Series 2020-2 Post-ARD Additional Interest.

 

(i)
Series 2020-2 Class M-2 Quarterly Post-ARD Additional Interest. From and after the Series 2020-2 Class M-2 Anticipated
Repayment Date, if the Series 2020-2 Final Payment of the Class M-2 Notes has not been made, then additional interest will accrue
on the Series 2020-2 Class M-2 Outstanding Principal Amount at a per annum rate (the “Series 2020-2 Class M-2 Quarterly
Post-ARD Additional Interest Rate”) equal to the greater of (as determined by the Manager): (A) 5.0% and (B) the amount,
if any, by which the sum of the following exceeds the applicable Series 2020-2 Class M-2 Note Rate: (x) the yield to maturity
(adjusted to a quarterly bond-equivalent basis) on the Series 2020-2 Class M-2 Anticipated Repayment Date of the United States
Treasury security having a term closest to 5 years plus (y) 5.0%, plus (z) 9.48% (such additional interest, the “Series
2020-2 Class M-2 Quarterly Post-ARD Additional Interest”). All computations of Series 2020-2 Class M-2 Quarterly Post-ARD
Additional Interest shall be made on a 30/360 Day Basis and will be due and payable on any Quarterly Payment Date to the extent
allocated in accordance with the Priority of Payments.

 

    	3

     

    

 

(ii)
Payment of Series 2020-2 Class M-2 Quarterly Post-ARD Additional Interest. Any Series 2020-2 Class M-2 Quarterly Post-ARD
Additional Interest will be due and payable on each applicable Quarterly Payment Date from amounts that are made available for
payment thereof: (A) on any related Monthly Allocation Date in accordance with the Priority of Payments and (B) on such Quarterly
Payment Date in accordance with the Priority of Payments and Section 5.11 of the Base Indenture, in the amount so made
available. The failure to pay any Series 2020-2 Class M-2 Quarterly Post-ARD Additional Interest in excess of available amounts
in accordance with the foregoing (including on the Series 2020-2 Legal Final Maturity Date) will not be an Event of Default and
interest will not accrue on any unpaid portion thereof; provided that in any event all accrued but unpaid Series 2020-2
Class M-2 Quarterly Post-ARD Additional Interest shall be due and payable in full on the Series 2020-2 Legal Final Maturity Date,
on any Series 2020-2 Class M-2 Prepayment Date with respect to a prepayment in full of the Series 2020-2 Class M-2 Notes or otherwise
as part of any Series 2020-2 Final Payment.

 

(c)
Initial Interest Accrual Period. The initial Interest Accrual Period for the Series 2020-2 Class M-2 Notes shall commence
on (and include) the Series 2020-2 Closing Date and end on (but exclude) October 5, 2020.

 

Section
3.5 Payment of Principal.

 

(a)
Payment of Series 2020-2 Class M-2 Note Principal.

 

(i)
Principal Payment at Legal Maturity. The Series 2020-2 Class M-2 Outstanding Principal Amount shall be due and payable
in full on the Series 2020-2 Class M-2 Legal Final Maturity Date. The Series 2020-2 Class M-2 Outstanding Principal Amount is
not prepayable, in whole or in part, except as set forth in the Base Indenture and this Section 3.5.

 

(ii)
Series 2020-2 Anticipated Repayment Date. The Series 2020-2 Class M-2 Final Payment Date is anticipated to occur on the
Quarterly Payment Date occurring on April 27, 2026 (such date, the “Series 2020-2 Class M-2 Anticipated Repayment Date”).

 

(iii)
Payment of Series 2020-2 Class M-2 Notes Scheduled Principal Payment Amounts. Series 2020-2 Class M-2 Notes Scheduled Principal
Payment Amounts will be due and payable on each applicable Quarterly Payment Date, commencing with the Quarterly Payment Date
occurring in July 2021 (the “Series 2020-2 Class M-2 Amortization Date”) and prior to the Series 2020-2 Class
M-2 Anticipated Repayment Date, in accordance with Section 5.11 of the Base Indenture.

 

(b)
Rapid Amortization of Series 2020-2 Class M-2 Notes.

 

During
any Rapid Amortization Period, principal payments shall be due and payable on each Quarterly Payment Date on the Series 2020-2
Class M-2 Notes as and when amounts are made available for payment thereof: (i) on any related Monthly Allocation Date, in accordance
with the Priority of Payments and (ii) on such Quarterly Payment Date in accordance with Section 5.11 of the Base Indenture.
Such payments shall be ratably allocated among the Series 2020-2 Class M-2 Noteholders within the Class based on their respective
portion of the Series 2020-2 Outstanding Principal Amount of such Class.

 

    	4

     

    

 

(c)
Optional Prepayment of Series 2020-2 Class M-2 Notes.

 

Subject
to Section 3.5(f), the Issuer shall have the option to prepay (including with the proceeds of equity contributions) the
Outstanding Principal Amount of the Series 2020-2 Class M-2 Notes in whole or in part (each such prepayment, a “Series
2020-2 Class M-2 Prepayment”) on any Quarterly Payment Date that is specified as the Series 2020-2 Class M-2 Prepayment
Date in the applicable Prepayment Notice (each, an “Class M-2 Optional Prepayment Date”); provided that
no such optional prepayment of the Series 2020-2 Class M-2 Notes may be made (i) prior to the Series 2020-2 Class M-2 Amortization
Date and (ii) unless (a) the Series 2020-1 Class A-2 Notes (as defined in the Series 2020-1 Supplement) and the Class B-2 Notes
(as defined in the Series 2020-1 Supplement) are each a Defeased Class (as defined in the Series 2020-1 Supplement) or (b) the
Issuer simultaneously makes an optional prepayment of a principal amount of Series 2020-1 Class A-2 Notes and Series 2020-1 Class
B-2 Notes in accordance with Section 5.12(c) of the Base Indenture and Section 3.5(d) of the Series 2020-1 Supplement at least
equal to the lesser of: (A) with respect to the Series 2020-1 Class A-2 Notes, (x) the outstanding principal amount of
the Series 2020-1 Class A-2 Notes and (y) principal amount of Series 2020-2 Class M-2 Notes that the Issuer has elected
to prepay; and (B) with respect to the Series 2020-1 Class B-2 Notes, (x) the outstanding principal amount of the Series
2020-1 Class B-2 Notes and (y) principal amount of Series 2020-2 Class M-2 Notes that the Issuer has elected to prepay,
provided further that following a Series Anticipated Repayment Date for any Series of Notes that remains Outstanding, all optional
prepayments must be applied first, to Senior Notes, second, to Senior Subordinated Notes and third, to Subordinated Notes; and
provided further that the following conditions shall be satisfied:

 

(i)
subject to Section 5.12(c) of the Base Indenture, in the case of a prepayment of the Series 2020-2 Class M-2 Notes in part:

 

(A)
the amounts on deposit in the Indenture Trust Accounts, the Subordinated Notes Interest Payment Account, the Subordinated Notes
Principal Payment Account or other available amounts, in each case allocable to the Series 2020-2 Class M-2 Notes, are sufficient
to pay the amount of such prepayment as of Quarterly Payment Date of such prepayment, and

 

(B)
the amounts on deposit in, or allocable to the Subordinated Notes Interest Payment Account and the Subordinated Notes Principal
Payment Account and other available amounts to be distributed on the Quarterly Payment Date which coincides with such Class M-2
Optional Prepayment Date are sufficient to pay the Prepayment Condition Amounts on such Quarterly Payment Date; and

 

(ii)
subject to Section 5.12(c) of the Base Indenture, in the case of an optional prepayment of the Series 2020-2 Class M-2 Notes in
whole:

 

(A)
the amounts on deposit in the Indenture Trust Accounts, the Subordinated Notes Interest Payment Account, the Subordinated Notes
Principal Payment Account or other available amounts, in each case allocable to the Series 2020-2 Class M-2 Notes, are sufficient
to pay all outstanding monetary Obligations (including unreimbursed Advances with interest thereon at the Advance Interest Rate)
in respect of the Series 2020-2 Class M-2 Notes set forth in the Priority of Payments after giving effect to the applicable allocations
set forth therein on such Class M-2 Optional Prepayment Date, including unpaid interest accrued in respect of the period prior
to such Class M-2 Optional Prepayment Date and the Prepayment Condition Amounts on such Quarterly Payment Date, and

 

    	5

     

    

 

(B)
the amounts on deposit in the Collection Account, the Indenture Trust Accounts or otherwise available are reasonably expected
by the Manager to be sufficient to pay the Prepayment Condition Amounts, other than with respect to the Series 2020-2 Class M-2
Notes, on such Class M-2 Optional Prepayment Date, if such date is a Quarterly Payment Date,

 

or,
in each case, any shortfalls in such amounts (in (A) or (B) above) have been deposited to the applicable accounts.

 

(d)
Notices of Prepayments.

 

(i)
The Issuer shall give prior written notice (each, a “Prepayment Notice”) at least fifteen (15) Business Days
but not more than twenty (20) Business Days prior to any Series 2020-2 Class M-2 Prepayment with respect to any Class pursuant
to Section 3.5(e) to each Series 2020-2 Class M-2 Noteholder affected by such Series 2020-2 Class M-2 Prepayment, the Trustee
and the Control Party; provided that at the request of the Issuer, such notice to the affected Series 2020-2 Class M-2
Noteholders shall be given by the Trustee in the name and at the expense of the Issuer.

 

(ii)
With respect to each such Series 2020-2 Class M-2 Prepayment, the related Prepayment Notice shall, in each case, specify: (A)
the Series 2020-2 Class M-2 Prepayment Date on which such prepayment will be made, which in all cases shall be a Business Day,
and (B) the Series 2020-2 Class M-2 Prepayment Amount.

 

(iii)
Any such optional prepayment and Prepayment Notice may, in the Issuer’s discretion, be subject to the satisfaction of one
or more conditions precedent, including but not limited to the occurrence of a Change of Control. The Issuer shall have the option
to provide in any Prepayment Notice that the payment of the amounts set forth in Section 3.5(e) and the performance of
the Issuer’s obligations with respect to such optional prepayment may be performed by another Person.

 

(iv)
The Issuer shall have the option, by written notice to the Trustee, the Control Party and the affected Series 2020-2 Class M-2
Noteholders, to revoke, or amend the Series 2020-2 Class M-2 Prepayment Date set forth in, any Prepayment Notice relating to an
optional prepayment at any time up to the fifth (5th) Business Day before the Series 2020-2 Class M-2 Prepayment Date
set forth in such Prepayment Notice; provided that at the request of the Issuer, such notice to the affected Series 2020-2
Class M-2 Noteholders shall be given by the Trustee in the name and at the expense of the Issuer.

 

(e)
Series 2020-2 Class M-2 Prepayments. Subject to Section 3.5(f), on each Series 2020-2 Class M-2 Prepayment Date
with respect to any Series 2020-2 Class M-2 Prepayment, the Series 2020-2 Class M-2 Prepayment Amount shall be due and payable.

 

    	6

     

    

 

(f)
Distributions of Optional Prepayments

 

(i)
Distributions of Optional Prepayments of Series 2020-2 Class M-2 Notes.

 

(A)
No later than five (5) Business Days prior to the Series 2020-2 Class M-2 Prepayment Date for each Series 2020-2 Class M-2 Prepayment
to be made pursuant to Section 3.5(e), the Issuer shall provide the Trustee with a written report instructing the Trustee
to deposit the amounts set forth in such report, which shall include such amounts set forth in Section 3.5(c)(ii)(A) due
and payable to the applicable Series 2020-2 Class M-2 Noteholders on such Series 2020-2 Class M-2 Prepayment Date. Such written
report may be consolidated with additional payment instructions as necessary to effect other distributions occurring on, or substantially
concurrently with, such Series 2020-2 Class M-2 Prepayment Date.

 

(B)
On the Series 2020-2 Class M-2 Prepayment Date for each Series 2020-2 Class M-2 Prepayment to be made pursuant to Section 3.5(c),
the Trustee shall, in accordance with Section 6.1 of the Base Indenture (except that, notwithstanding anything to the contrary
therein, references to the distributions being made on a Quarterly Payment Date shall be deemed to be references to distributions
made on such Series 2020-2 Class M-2 Prepayment Date and references to the Record Date shall be deemed to be references to the
Prepayment Record Date), distribute to the Series 2020-2 Class M-2 Noteholders of record of the applicable Class on the preceding
Prepayment Record Date on a pro rata basis, based on their respective portion of the Outstanding Principal Amount of the
applicable Class of Notes the amount specified in the written report delivered in accordance with Section 3.5(f)(i)(A)
in order to pay (without duplication): (A) the applicable portion of such Outstanding Principal Amount, and (B) in the case of
an optional prepayment in whole, the outstanding monetary Obligations described in Section 3.5(c)(ii)(A) due and payable
on such Series 2020-2 Class M-2 Prepayment Date.

 

(g)
Series 2020-2 Notices of Final Payment. The Issuer shall notify the Trustee and the Manager of the Series 2020-2 Final
Payment Date of a Class of Notes on or before the Prepayment Record Date preceding such Series 2020-2 Class M-2 Prepayment Date;
provided, however, that with respect to any Series 2020-2 Final Payment that is made in connection with any mandatory
or optional prepayment in full, the Issuer shall not be obligated to provide any additional notice to the Trustee of such Series
2020-2 Final Payment beyond the notice required to be given in connection with such prepayment pursuant to Section 3.5(d).
The Trustee shall provide any written notice required under this Section 3.5(g) to each Person in whose name such Series
2020-2 Class M-2 Notes are registered at the close of business on such Prepayment Record Date of the Series 2020-2 Class M-2 Prepayment
Date that will be the Series 2020-2 Final Payment Date for such Class of Notes. Such written notice to be sent to the Series 2020-2
Class M-2 Noteholders shall be made at the expense of the Issuer and shall be mailed by the Trustee within five (5) Business Days
of receipt of notice from the Issuer indicating that the Series 2020-2 Final Payment will be made and shall specify that such
Series 2020-2 Final Payment will be payable only upon presentation and surrender of the related Series 2020-2 Class M-2 Notes,
which such surrender shall also constitute a general release by the applicable Series 2020-2 Class M-2 Noteholder from any claims
against the Issuer, the Manager, the Trustee and their affiliates, and shall specify the place where the related Series 2020-2
Class M-2 Notes may be presented and surrendered for such Series 2020-2 Final Payment.

 

    	7

     

    

 

Section
3.6 Manager. Pursuant to the Management Agreement, the Manager has agreed to provide certain reports, notices, instructions
and other services on behalf of the Issuer. The Series 2020-2 Class M-2 Noteholders, by their acceptance of the Series 2020-2
Class M-2 Notes, consent to the provision of such reports and notices to the Trustee by the Manager in lieu of the Issuer.

 

ARTICLE
IV

FORM
OF SERIES 2020-2 NOTES

 

Section
4.1 Issuance of Series 2020-2 Class M-2 Notes.

 

(a)
The Series 2020-2 Class M-2 Notes may be offered and sold in the applicable Series 2020-2 Class M-2 Initial Principal Amount on
the Series 2020-2 Closing Date by the Issuer. The Series 2020-2 Class M-2 Notes will be “restricted securities” issued
pursuant to the provisions of Rule 506 (b) of Regulation D under Section 4(a)(2) of the 1933 Act sold only to QIBs purchasing
for their own account or the account of one or more Persons, each of which is a QIB. The Series 2020-2 Class M-2 Notes will be
resold only to the Issuer or its Affiliates or (A) in the United States, to Persons who are not Competitors and who are QIBs purchasing
for their own account or the account of one or more other Persons, each of which is a QIB, in reliance on Rule 144A, and (B) outside
the United States, to Persons who are not Competitors and who are not a U.S. person (as defined in Regulation S) (a “U.S.
Person”) in reliance on Regulation S, purchasing for their own account or the account of one or more other Persons,
each of which is a non-U.S. Person, all in accordance with the procedure described herein. The Series 2020-2 Class M-2 Notes will
be Book-Entry Notes and DTC will be the Depository for the Series 2020-2 Class M-2 Notes. The Applicable Procedures shall be applicable
to transfers of beneficial interests in the Series 2020-2 Class M-2 Notes.

 

(b)
Global Notes.

 

(i)
Rule 144A Global Notes. The Series 2020-2 Class M-2 Notes offered and sold in their initial distribution in reliance upon
Rule 144A will be issued in the form of one or more global notes in fully registered form, without coupons, substantially in the
form set forth in Exhibit A-1 hereto, registered in the name of Cede & Co. (“Cede”), as nominee
of DTC, and deposited with the Trustee, as custodian for DTC (collectively, for purposes of this Section 4.1 and Section
4.2, the “Rule 144A Global Notes”). The aggregate initial principal amount of the Rule 144A Global Notes
of the Series 2020-2 Class M-2 Notes may from time to time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for DTC, in connection with a corresponding decrease or increase in the aggregate initial principal amount
of the corresponding Class of Temporary Regulation S Global Notes or Permanent Regulation S Global Notes, as hereinafter provided.

 

    	8

     

    

 

(ii)
Regulation S Global Notes. Any Series 2020-2 Class M-2 Notes offered and sold on the Series 2020-2 Closing Date in reliance
upon Regulation S will be issued in the form of one or more global notes in fully registered form, without coupons, substantially
in the form set forth in Exhibit A-2 hereto, registered in the name of Cede, as nominee of DTC, and deposited with the
Trustee, as custodian for DTC, for credit to the respective accounts at DTC of the designated agents holding on behalf of Euroclear
or Clearstream. Until such time as the Restricted Period shall have terminated with respect to any Series 2020-2 Class M-2 Note,
such Series 2020-2 Class M-2 Notes shall be referred to herein collectively, for purposes of this Section 4.1 and Section
4.2, as the “Temporary Regulation S Global Notes.” After such time as the Restricted Period shall have
terminated, the Temporary Regulation S Global Notes shall be exchangeable, in whole or in part, for interests in one or more permanent
global notes in registered form without interest coupons, substantially in the form set forth in Exhibit A-3 hereto, as
hereinafter provided (collectively, for purposes of this Section 4.1 and Section 4.2, the “Permanent Regulation
S Global Notes”). The aggregate principal amount of the Temporary Regulation S Global Notes or the Permanent Regulation
S Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian
for DTC, in connection with a corresponding decrease or increase of aggregate principal amount of the corresponding Rule 144A
Global Notes, as hereinafter provided.

 

(c)
Definitive Notes. The Series 2020-2 Class M-2 Global Notes shall be exchangeable in their entirety for one or more definitive
notes in registered form, without interest coupons (collectively, for purposes of this Section 4.1 and Section 4.2,
the “Definitive Notes”) pursuant to Section 2.13 of the Base Indenture and this Section 4.1(c)
in accordance with their terms and, upon complete exchange thereof, such Series 2020-2 Class M-2 Global Notes shall be surrendered
for cancellation at the applicable Corporate Trust Office.

 

Section
4.2 Transfer Restrictions of Series 2020-2 Class M-2 Notes.

 

(a)
A Series 2020-2 Class M-2 Global Note may not be transferred, in whole or in part, to any Person other than DTC or a nominee thereof,
or to a successor Depository or to a nominee of a successor Depository, and no such transfer to any such other Person may be registered;
provided, however, that this Section 4.2(a) shall not prohibit any transfer of a Series 2020-2 Class M-2
Note that is issued in exchange for a Series 2020-2 Class M-2 Global Note in accordance with Section 2.8 of the Base Indenture
and shall not prohibit any transfer of a beneficial interest in a Series 2020-2 Class M-2 Global Note effected in accordance with
the other provisions of this Section 4.2.

 

(b)
The transfer by a Series 2020-2 Class M-2 Note Owner holding a beneficial interest in a Series 2020-2 Class M-2 Note in the form
of a Rule 144A Global Note to a Person who wishes to take delivery thereof in the form of a beneficial interest in the Rule 144A
Global Note of such Class shall be made upon the deemed representation of the transferee that it is purchasing for its own account
or an account with respect to which it exercises sole investment discretion and that it and any such account is a QIB and not
a Competitor, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Issuer as such transferee has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

 

    	9

     

    

 

(c)
If a Series 2020-2 Class M-2 Note Owner holding a beneficial interest in a Series 2020-2 Class M-2 Note in the form of a Rule
144A Global Note wishes at any time to exchange its interest in such Rule 144A Global Note for an interest in the Temporary Regulation
S Global Note of such Class, or to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial
interest in the Temporary Regulation S Global Note of such Class, such exchange or transfer may be effected, subject to the Applicable
Procedures, only in accordance with the provisions of this Section 4.2(c). Upon receipt by the Note Registrar, at the applicable
Corporate Trust Office, of (i) written instructions given in accordance with the Applicable Procedures from a Clearing Agency
Participant directing the Note Registrar to credit or cause to be credited to a specified Clearing Agency Participant’s
account a beneficial interest in the Temporary Regulation S Global Note, in a principal amount equal to that of the beneficial
interest in such Rule 144A Global Note to be so exchanged or transferred, (ii) a written order given in accordance with the Applicable
Procedures containing information regarding the account of the Clearing Agency Participant (and the Euroclear or Clearstream account,
as the case may be) to be credited with, and the account of the Clearing Agency Participant to be debited for, such beneficial
interest and (iii) a certificate in substantially the form set forth in Exhibit B-1 hereto given by the Series 2020-2 Class
M-2 Note Owner holding such beneficial interest in such Rule 144A Global Note, the Note Registrar shall instruct the Trustee,
as custodian of DTC, to reduce the principal amount of the Rule 144A Global Note, and to increase the principal amount of the
Temporary Regulation S Global Note, by the principal amount of the beneficial interest in such Rule 144A Global Note to be so
exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions (which
shall be the Clearing Agency Participant for Euroclear or Clearstream or both, as the case may be) a beneficial interest in the
Temporary Regulation S Global Note having a principal amount equal to the amount by which the principal amount of such Rule 144A
Global Note was reduced upon such exchange or transfer.

 

(d)
If a Series 2020-2 Class M-2 Note Owner holding a beneficial interest in a Rule 144A Global Note wishes at any time to exchange
its interest in such Rule 144A Global Note for an interest in the Permanent Regulation S Global Note of such Class, or to transfer
such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in the Permanent Regulation
S Global Note of such Class, such exchange or transfer may be effected, subject to the Applicable Procedures, only in accordance
with the provisions of this Section 4.2(d). Upon receipt by the Note Registrar, at the applicable Corporate Trust Office,
of (i) written instructions given in accordance with the Applicable Procedures from a Clearing Agency Participant directing the
Note Registrar to credit or cause to be credited to a specified Clearing Agency Participant’s account a beneficial interest
in the Permanent Regulation S Global Note in a principal amount equal to that of the beneficial interest in such Rule 144A Global
Note to be so exchanged or transferred, (ii) a written order given in accordance with the Applicable Procedures containing information
regarding the account of the Clearing Agency Participant (and the Euroclear or Clearstream account, as the case may be) to be
credited with, and the account of the Clearing Agency Participant to be debited for, such beneficial interest and (iii) a certificate
in substantially the form of Exhibit B-2 hereto given by the Series 2020-2 Class M-2 Note Owner holding such beneficial
interest in such Rule 144A Global Note, the Note Registrar shall instruct the Trustee, as custodian of DTC, to reduce the principal
amount of such Rule 144A Global Note, and to increase the principal amount of the Permanent Regulation S Global Note, by the principal
amount of the beneficial interest in such Rule 144A Global Note to be so exchanged or transferred, and to credit or cause to be
credited to the account of the Person specified in such instructions (which shall be the Clearing Agency Participant for Euroclear
or Clearstream or both, as the case may be) a beneficial interest in the Permanent Regulation S Global Note having a principal
amount equal to the amount by which the principal amount of such Rule 144A Global Note was reduced upon such exchange or transfer.

 

    	10

     

    

 

(e)
If a Series 2020-2 Class M-2 Note Owner holding a beneficial interest in a Temporary Regulation S Global Note or a Permanent Regulation
S Global Note wishes at any time to exchange its interest in such Temporary Regulation S Global Note or such Permanent Regulation
S Global Note for an interest in the Rule 144A Global Note, or to transfer such interest to a Person who wishes to take delivery
thereof in the form of a beneficial interest in the Rule 144A Global Note, such exchange or transfer may be effected, subject
to the Applicable Procedures, only in accordance with the provisions of this Section 4.2(e). Upon receipt by the Note Registrar,
at the applicable Corporate Trust Office, of (i) written instructions given in accordance with the Applicable Procedures from
a Clearing Agency Participant directing the Note Registrar to credit or cause to be credited to a specified Clearing Agency Participant’s
account a beneficial interest in the Rule 144A Global Note of the applicable Class in a principal amount equal to that of the
beneficial interest in such Temporary Regulation S Global Note or such Permanent Regulation S Global Note, as the case may be,
to be so exchanged or transferred, (ii) a written order given in accordance with the Applicable Procedures containing information
regarding the account of the Clearing Agency Participant (and the Euroclear or Clearstream account, as the case may be) to be
credited with, and the account of the Clearing Agency Participant to be debited for, such beneficial interest, and (iii) with
respect to a transfer of a beneficial interest in such Temporary Regulation S Global Note (but not such Permanent Regulation S
Global Note), a certificate in substantially the form set forth in Exhibit B-3 hereto given by such Series 2020-2 Class
M-2 Note Owner holding such beneficial interest in such Temporary Regulation S Global Note, the Note Registrar shall instruct
the Trustee, as custodian of DTC, to reduce the principal amount of such Temporary Regulation S Global Note or such Permanent
Regulation S Global Note, as the case may be, and to increase the principal amount of such Rule 144A Global Note, by the principal
amount of the beneficial interest in such Temporary Regulation S Global Note or such Permanent Regulation S Global Note to be
so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions
(which shall be the Clearing Agency Participant for DTC) a beneficial interest in such Rule 144A Global Note having a principal
amount equal to the amount by which the principal amount of such Temporary Regulation S Global Note or such Permanent Regulation
S Global Note, as the case may be, was reduced upon such exchange or transfer.

 

(f)
In the event that a Series 2020-2 Class M-2 Global Note or any portion thereof is exchanged for Series 2020-2 Class M-2 Notes
other than Series 2020-2 Class M-2 Global Notes, such other Series 2020-2 Class M-2 Notes may in turn be exchanged (upon transfer
or otherwise) for Series 2020-2 Class M-2 Notes that are not Series 2020-2 Class M-2 Global Notes or for a beneficial interest
in a Series 2020-2 Class M-2 Global Note (if any is then outstanding) only in accordance with such procedures as may be adopted
from time to time by the Issuer and the Note Registrar, which shall be substantially consistent with the provisions of Section
4.2(a) through Section 4.2(e) and Section 4.2(g) (including the certification requirement intended to ensure
that transfers and exchanges of beneficial interests in a Series 2020-2 Class M-2 Global Note comply with Rule 144A or Regulation
S under the 1933 Act, as the case may be) and any Applicable Procedures.

 

(g)
Until the termination of the Restricted Period with respect to any Series 2020-2 Class M-2 Note, interests in the Temporary Regulation
S Global Notes representing such Series 2020-2 Class M-2 Note may be held only through Clearing Agency Participants acting for
and on behalf of Euroclear and Clearstream; provided that this Section 4.2(g) shall not prohibit any transfer in
accordance with Section 4.2(d). After the expiration of the applicable Restricted Period, interests in the Permanent Regulation
S Global Notes may be transferred without requiring any certifications other than those set forth in this Section 4.2.

 

    	11

     

    

 

(h)
The Series 2020-2 Class M-2 Notes Rule 144A Global Notes, the Series 2020-2 Class M-2 Notes Temporary Regulation S Global Notes
and the Series 2020-2 Class M-2 Notes Permanent Regulation S Global Notes shall bear the following legend:

 

THE
ISSUANCE AND SALE OF THIS [RULE 144A] [TEMPORARY REGULATION S] [PERMANENT REGULATION S] SERIES 2020-2 CLASS M-2 NOTE HAVE NOT
BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR WITH
ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER RELEVANT JURISDICTION, AND FAT BRANDS ROYALTY I, LLC (THE “ISSUER”)
HAVE NOT BEEN REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”). THIS NOTE OR ANY INTEREST
HEREIN MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER OR AN AFFILIATE THEREOF, (B) IN THE UNITED
STATES, TO A PERSON WHO IS NOT A COMPETITOR AND IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER
THE 1933 ACT (“RULE 144A”), ACTING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH PERSON EXERCISES
SOLE INVESTMENT DISCRETION OR (C) OUTSIDE THE UNITED STATES, TO A PERSON WHO IS NOT A COMPETITOR AND IS NOT A “U.S. PERSON”
AS DEFINED IN REGULATION S UNDER THE 1933 ACT (“REGULATION S”), ACTING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS
WITH RESPECT TO WHICH SUCH PERSON EXERCISES SOLE INVESTMENT DISCRETION, NONE OF WHICH ARE A U.S. PERSON, IN OFFSHORE TRANSACTIONS
IN RELIANCE ON REGULATION S, AND, IN EACH CASE, IN COMPLIANCE WITH THE CERTIFICATIONS AND OTHER REQUIREMENTS SPECIFIED IN THE
INDENTURE REFERRED TO HEREIN AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION.

 

BY
ITS ACQUISITION OR ACCEPTANCE HEREOF, THE HOLDER (IF NOT THE ISSUER OR AN AFFILIATE OF THE ISSUER) REPRESENTS THAT (A) IT IS NOT
A COMPETITOR AND IS (X) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A OR (Y) NOT A U.S. PERSON AND IS
ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION, AS APPLICABLE, (B) IT IS NOT A COMPETITOR AND IS ACTING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF ANOTHER PERSON WHICH IS EITHER (X) A QUALIFIED INSTITUTIONAL BUYER OR (Y) NOT A U.S. PERSON, AND IN EACH CASE
WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT DISCRETION, (C) IT AND EACH ACCOUNT FOR WHICH IT IS PURCHASING WILL HOLD AND
TRANSFER AT LEAST THE MINIMUM DENOMINATION OF NOTES, (D) IT UNDERSTANDS THAT THE ISSUER MAY RECEIVE A LIST OF PARTICIPANTS HOLDING
POSITIONS IN ITS NOTES FROM ONE OR MORE BOOK-ENTRY DEPOSITORIES AND (E) IT WILL PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS TO
ANY SUBSEQUENT TRANSFEREES.

 

    	12

     

    

 

EACH
PERSON (IF NOT THE ISSUER OR AN AFFILIATE OF THE ISSUER) TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE WILL BE DEEMED
TO HAVE MADE THE APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE. EACH PERSON TAKING DELIVERY OF THIS NOTE
OR AN INTEREST IN THIS NOTE IN THE FORM OF AN INTEREST IN A [TEMPORARY REGULATION S GLOBAL NOTE] [RULE 144A GLOBAL NOTE] OR [PERMANENT
REGULATION S GLOBAL NOTE] WILL BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE FORM REQUIRED BY THE INDENTURE AND WILL BE
REQUIRED TO MAKE THE APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE.

 

ANY
TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE
TO TRANSFER ANY RIGHTS TO ANY PERSON CAUSING SUCH VIOLATION, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE
TRUSTEE OR ANY INTERMEDIARY; PROVIDED, HOWEVER, THAT THE PRECEDING PORTION OF THIS SENTENCE SHALL NOT OPERATE TO INVALIDATE ANY
OTHERWISE BONA FIDE TRANSFER TO AN ELIGIBLE TRANSFEREE WHERE A PREVIOUS ERRONEOUSLY REGISTERED TRANSFEROR IN THE CHAIN OF TITLE
OF SUCH TRANSFEREE WOULD HAVE BEEN INELIGIBLE SOLELY ON ACCOUNT OF BEING A COMPETITOR.

 

IF
THIS NOTE WAS ACQUIRED IN THE UNITED STATES, AND THE HOLDER IS DETERMINED TO BE A COMPETITOR OR NOT TO HAVE BEEN A QUALIFIED INSTITUTIONAL
BUYER AT THE TIME OF ACQUISITION OF THIS NOTE, THE ISSUER HAS THE RIGHT TO REQUIRE SUCH HOLDER TO SELL THIS NOTE TO A PURCHASER
WHO IS NOT A COMPETITOR AND IS A QUALIFIED INSTITUTIONAL BUYER. THE ISSUER ALSO HAS THE RIGHT TO REFUSE TO HONOR A TRANSFER TO
A PERSON WHO IS NOT A QUALIFIED INSTITUTIONAL BUYER OR WHO IS A COMPETITOR.

 

IF
THIS NOTE WAS ACQUIRED OUTSIDE THE UNITED STATES, AND THE HOLDER IS DETERMINED TO BE A COMPETITOR OR TO HAVE BEEN A “U.S.
PERSON” AT THE TIME OF ACQUISITION OF THIS NOTE, THE ISSUER HAS THE RIGHT TO REQUIRE SUCH HOLDER TO SELL THIS NOTE TO A
PURCHASER WHO IS NOT A COMPETITOR AND IS NOT A “U.S. PERSON.” THE ISSUER ALSO HAS THE RIGHT TO REFUSE TO HONOR A TRANSFER
TO A PERSON WHO IS A “U.S. PERSON” OR WHO IS A COMPETITOR.

 

BY
ACCEPTING THIS NOTE, EACH HOLDER COVENANTS THAT IT WILL NOT AT ANY TIME PRIOR TO THE DATE WHICH IS ONE (1) YEAR AND ONE (1) DAY
AFTER THE PAYMENT IN FULL OF THE LATEST MATURING NOTE, INSTITUTE AGAINST, OR JOIN WITH ANY OTHER PERSON IN INSTITUTING AGAINST,
ANY SECURITIZATION ENTITY ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS,
UNDER ANY FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

 

    	13

     

    

 

THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY
TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10041, OR A NOMINEE THEREOF. THIS
NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE NOTE REGISTRAR, AND ANY
NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC,
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER,
CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS
[RULE 144A][TEMPORARY REGULATION S] [PERMANENT REGULATION S] GLOBAL SERIES 2020-2 CLASS M-2 NOTE WAS ISSUED WITH “ORIGINAL
ISSUE DISCOUNT” AS DEFINED IN SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY OBTAIN INFORMATION
REGARDING THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE PRICE, THE ISSUE DATE AND THE YIELD TO MATURITY BY CONTACTING THE MANAGER
AT FAT BRANDS INC., 9720 WILSHIRE BLVD., SUITE 500, BEVERLY HILLS, CA 90212, ATTN: ANDREW A. WIEDERHORN.

 

THE
PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. ANY PERSON ACQUIRING THIS NOTE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT
BY INQUIRY OF THE TRUSTEE.

 

(i)
The Series 2020-2 Temporary Regulation S Global Notes shall also bear the following legend:

 

UNTIL
FORTY (40) DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED PERIOD”) IN CONNECTION WITH THE OFFERING
OF THE NOTES IN THE UNITED STATES FROM OUTSIDE OF THE UNITED STATES, THE SALE, PLEDGE OR TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN
CONDITIONS AND RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES THAT SUCH HOLDER
IS EITHER NOT A “U.S. PERSON” OR THE ISSUER OR AN AFFILIATE OF THE ISSUER, AND THAT THIS NOTE HAS NOT BEEN REGISTERED
UNDER THE 1933 ACT, AND AGREES FOR THE BENEFIT OF THE ISSUER THAT THIS NOTE MAY BE TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY TO A HOLDER THAT IS NOT A “U.S. PERSON” OR TO THE ISSUER OR AN AFFILIATE OF THE ISSUER AND IN COMPLIANCE WITH
THE 1933 ACT AND OTHER APPLICABLE LAWS OF THE STATES, TERRITORIES AND POSSESSIONS OF THE UNITED STATES GOVERNING THE OFFER AND
SALE OF SECURITIES, AND PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD, ONLY (I) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH
REGULATION S UNDER THE 1933 ACT OR (II) PURSUANT TO AND IN ACCORDANCE WITH RULE 144A UNDER THE 1933 ACT.

 

    	14

     

    

 

(j)
The required legends set forth above shall not be removed from the applicable Series 2020-2 Class M-2 Notes except as provided
herein. The legend required for a Series 2020-2 Rule 144A Global Note may be removed from such Series 2020-2 Class M-2 Notes Rule
144A Global Note if there is delivered to the Issuer and the Note Registrar such satisfactory evidence, which may include an Opinion
of Counsel, as may be reasonably required by the Issuer that neither such legend nor the restrictions on transfer set forth therein
are required to ensure that transfers of such Series 2020-2 Class M-2 Notes Rule 144A Global Note will not violate the registration
requirements of the 1933 Act. Upon provision of such satisfactory evidence, the Trustee at the direction of the Issuer (or the
Manager, on its behalf), shall authenticate and deliver in exchange for such Series 2020-2 Rule 144A Global Note a Series 2020-2
Class M-2 Note or Series 2020-2 Class M-2 Notes having an equal aggregate principal amount that does not bear such legend. If
such a legend required for a Series 2020-2 Rule 144A Global Note has been removed from a Series 2020-2 Class M-2 Note as provided
above, no other Series 2020-2 Class M-2 Note issued in exchange for all or any part of such Series 2020-2 Class M-2 Note shall
bear such legend, unless the Issuer have reasonable cause to believe that such other Series 2020-2 Class M-2 Note is a “restricted
security” within the meaning of Rule 144 under the 1933 Act and instructs the Trustee to cause a legend to appear thereon.

 

Section
4.3 Note Owner Representations and Warranties. Each Person who becomes a Note Owner of a beneficial interest in a Series
2020-2 Class M-2 Note pursuant to the Offering Memorandum will be deemed to represent, warrant and agree on the date such Person
acquires any interest in any Series 2020-2 Class M-2 Note as follows:

 

(a)
With respect to any sale of Series 2020-2 Class M-2 Notes pursuant to Rule 144A, it is a QIB pursuant to Rule 144A, and is aware
that any sale of Series 2020-2 Class M-2 Notes to it will be made in reliance on Rule 144A. Its acquisition of Series 2020-2 Class
M-2 Notes in any such sale will be for its own account or for the account of another QIB.

 

(b)
With respect to any sale of Series 2020-2 Class M-2 Notes pursuant to Regulation S, at the time the buy order for such Series
2020-2 Class M-2 Notes was originated, it was outside the United States and the offer was made to a Person who is not a U.S. Person,
and was not purchasing for the account or benefit of a U.S. Person.

 

    	15

     

    

 

(c)
It will, and each account for which it is purchasing will, hold and transfer at least the minimum denomination of Series 2020-2
Class M-2 Notes set forth in Section 2.3 of this Series 2020-2 Supplement.

 

(d)
It understands that the Issuer and the Manager may receive a list of participants holding positions in the Series 2020-2 Class
M-2 Notes from one or more book-entry depositories.

 

(e)
It understands that the Manager and the Issuer may receive: (i) a list of Note Owners that have requested access to the Trustee’s
password-protected website or that have voluntarily registered as a Note Owner with the Trustee, and (ii) copies of Noteholder
confirmations of representations and warranties executed to obtain access to the Trustee’s password-protected website.

 

(f)
It will provide to each person to whom it transfers Series 2020-2 Class M-2 Notes notices of any restrictions on transfer of such
Series 2020-2 Class M-2 Notes.

 

(g)
It understands that: (i) the Series 2020-2 Class M-2 Notes are being offered in a transaction not involving any public offering
in the United States within the meaning of the 1933 Act, (ii) the Series 2020-2 Class M-2 Notes have not been registered under
the 1933 Act, (iii) the Series 2020-2 Class M-2 Notes may be offered, resold, pledged or otherwise transferred only to (a) in
the United States, Persons who are not Competitors and who are QIBs, purchasing for their own account or the account of one or
more other Persons, each of which is a QIB, (b) outside the United States, Persons who are not Competitors and who are not “U.S.
Persons” in offshore transactions in reliance on Regulation S under the 1933 Act, purchasing for their own account or the
account of one or more other Persons, each of which is a non-U.S. Person, or (c) the Issuer or an Affiliate of the Issuer, in
each case, in accordance with any applicable securities laws of any state of the United States and any other relevant jurisdiction,
and (iv) it will, and each subsequent holder of a Series 2020-2 Class M-2 Note is required to, notify any subsequent purchaser
of a Series 2020-2 Class M-2 Note of the resale restrictions set forth in clause (iii) above.

 

(h)
It understands that the certificates evidencing the Rule 144A Global Notes will bear legends substantially similar to those set
forth in Section 4.2(h).

 

(i)
It understands that the certificates evidencing the Temporary Regulation S Global Notes will bear legends substantially similar
to those set forth in Sections 4.2(h) and Section 4.2(i), as applicable.

 

(j)
It understands that the certificates evidencing the Permanent Regulation S Global Notes will bear legends substantially similar
to those set forth in Section 4.2(h).

 

(k)
Either (i) it is not acquiring or holding the Series 2020-2 Class M-2 Notes (or any interest therein) for or on behalf of, or
with the assets of, Plan or a governmental, church, non-U.S. or other plan which is subject to any Similar Law or (ii) its acquisition,
holding and disposition of the Series 2020-2 Class M-2 Notes (or any interest therein) will not constitute or result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or, in the case of a governmental, church, non-U.S.
or other plan, a non-exempt violation under any Similar Law.

 

    	16

     

    

 

(l)
It understands that any subsequent transfer of the Series 2020-2 Class M-2 Notes or any interest therein is subject to certain
restrictions and conditions set forth in the Indenture and it agrees to be bound by, and not to resell, pledge or otherwise transfer
the Series 2020-2 Class M-2 Notes or any interest therein except in compliance with, such restrictions and conditions and the
1933 Act.

 

(m)
It is not a Competitor.

 

Section
4.4 Limitation on Liability. None of the Issuer, the Manager, the Trustee or any Paying Agent or any of their respective
Affiliates shall have any responsibility or liability with respect to: (i) any aspects of the records maintained by DTC or its
nominee or any of the Agent Members relating to or for payments made thereby on account of beneficial interests in a Rule l44A
Global Note or a Regulation S Global Note, or (ii) any records maintained by the Noteholder with respect to the beneficial holders
thereof or payments made thereby on account of beneficial interests held therein. Notwithstanding anything to the contrary contained
herein or in the Base Indenture, the Trustee (including in its capacity as Note Registrar and Paying Agent) shall have no responsibility
or liability with respect to: (i) transfers of beneficial interests within a Rule 144A Global Note or a Regulation S Global Note
or (ii) monitoring or inquiring into or verifying compliance by a Series 2020-2 Class M-2 Noteholder or Note Owner with the representations,
covenants or restrictions set forth in this Series 2020-2 Supplement, the Base Indenture or the Notes.

 

ARTICLE
V

GENERAL

 

Section
5.1 Information. On or before the third (3rd) Business Day prior to each Quarterly Payment Date, the Issuer
shall furnish, or cause to be furnished, a Quarterly Noteholders’ Report with respect to the Series 2020-2 Class M-2 Notes
to the Trustee, substantially in the form of Exhibit C hereto, setting forth, inter alia, the following information
with respect to such Quarterly Payment Date and all other information required pursuant to Section 5.11 of the Base Indenture:

 

(i)
the total amount available to be distributed to the Series 2020-2 Class M-2 Noteholders on such Quarterly Payment Date;

 

(ii)
the amount of such distribution allocable to the payment of interest on each Class of the Series 2020-2 Class M-2 Notes;

 

(iii)
the amount of such distribution allocable to the payment of principal of each Class of the Series 2020-2 Class M-2 Notes;

 

(iv)
whether, to the Actual Knowledge of the Issuer, any Potential Rapid Amortization Event, Rapid Amortization Event, Default, Event
of Default, Potential Manager Termination Event or Manager Termination Event has occurred and is continuing as of the related
Quarterly Calculation Date or any Cash Flow Sweeping Period is in effect, as of such Quarterly Calculation Date;

 

    	17

     

    

 

(v)
the DSCR for such Quarterly Payment Date and the three Quarterly Payment Dates immediately preceding such Quarterly Payment Date;
and

 

(vi)
the amount of FAT Brands Systemwide Sales as of the related Quarterly Calculation Date.

 

Any
Series 2020-2 Class M-2 Noteholder may obtain copies of each Quarterly Noteholders’ Report in accordance with the procedures
set forth in Section 4.4 of the Base Indenture.

 

Section
5.2 Exhibits. The annexes, exhibits and schedules attached hereto and listed on the table of contents hereto supplement
the annexes, exhibits and schedules included in the Base Indenture.

 

Section
5.3 Ratification of Base Indenture. As supplemented by the Series 2020-1 Supplement and the Series 2020-2 Supplement, the
Base Indenture is in all respects ratified and confirmed and the Base Indenture as so supplemented by the Series 2020-2 Supplement
shall be read, taken and construed as one and the same instrument.

 

Section
5.4 Reserved.

 

Section
5.5 Counterparts. The Series 2020-2 Supplement may be executed in any number of counterparts, each of which so executed
shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.

 

Section
5.6 Governing Law. THE SERIES 2020-2 SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

Section
5.7 Amendments. The Series 2020-2 Supplement may not be modified or amended except in accordance with the terms of the
Base Indenture.

 

Section
5.8 Termination of Series 2020-2 Supplement; Defeasance.

 

(a)
This Series 2020-2 Supplement shall cease to be of further effect when (i) all Outstanding Series 2020-2 Class M-2 Notes theretofore
authenticated and issued have been delivered (other than destroyed, lost, or stolen Series 2020-2 Class M-2 Notes that have been
replaced or paid) to the Trustee for cancellation, and (ii) the Issuer has paid all sums payable hereunder; provided that
any provisions of the Series 2020-2 Supplement required for the Series 2020-2 Final Payment to be made shall survive until the
Series 2020-2 Final Payment is paid to the Series 2020-2 Class M-2 Noteholders. In accordance with Section 6.1(a) of the
Base Indenture, the final principal payment due on each Series 2020-2 Class M-2 Note shall only be paid upon due presentment and
surrender of such Note for cancellation in accordance with the provisions of such Note at the applicable Corporate Trust Office,
which such surrender shall also constitute a general release by the applicable Noteholder from any claims against the Issuer,
the Manager, the Trustee and their affiliates.

 

    	18

     

    

 

(b)
In addition to (and notwithstanding) the terms of Section 12.1 of the Base Indenture, upon the payment in full (whether
optional or mandatory) or a redemption in full of the Series 2020-2 Class M-2 Notes (the “Defeased Class”)
as provided hereunder, the Obligations of the Issuer under the Transaction Documents in respect of such Defeased Class shall be
terminated.

 

Section
5.9 Limited Recourse. The obligations of the Issuer under this Series 2020-2 Supplement are solely the limited liability
company obligations of the Issuer, and the Issuer shall be liable for claims hereunder only to the extent that funds or assets
are available to pay such claims pursuant to this Series 2020-2 Supplement.

 

Section
5.10 Entire Agreement. The Series 2020-2 Supplement, together with the exhibits and schedules hereto and the other Indenture
Documents, contains a final and complete integration of all prior expressions by the parties hereto with respect to the subject
matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding
all previous oral statements and other writings with respect thereto.

 

Section
5.11 Control Party Protections. In taking or refraining from taking any action hereunder, the Control Party shall be entitled
to the rights, protections, benefits, immunities and indemnities afforded to the Control Party under this Series 2020-2 Supplement
and the other Transaction Documents mutatis mutandis.

 

[Signature
Pages Follow]

 

    	19

     

    

 

IN
WITNESS WHEREOF, each of the Issuer and the Trustee have caused the Series 2020-2 Supplement to be duly executed by its respective
duly authorized officer as of the day and year first written above.

 

	 	FAT
    BRANDS ROYALTY I, LLC, as Issuer
	 	 
	 	By:	FAT
    Brands Inc.
	 	Its:
    	Manager

 

	 	By:
    	/s/
    Andrew A. Wiederhorn
	 	Name:
    	Andrew
    A. Wiederhorn
	 	Title:
    	Chief
    Executive Officer

 

Signature Page to Series 2020-2 Supplement to the Base 

Indenture FAT Brands Royalty I, LLC

 

    	 

     

    

 

	 	UMB
    BANK, N.A., in its capacity as Trustee
	 	 
	 	By:	/s/
    Michele Voon
	 	Name:	 Michele Voon
	 	Title:	 Vice President 

 

Signature Page to Series 2020-2 Supplement to the Base Indenture

 FAT Brands Royalty I, LLC

 

    	 

     

    

 

CONSENT
OF CONTROL PARTY:

 

The
undersigned, as Control Party, hereby consents to the execution and delivery of this Series 2020-2 Supplement by the parties hereto,
and as Control Party hereby directs the Trustee to execute and deliver this Series 2020-2 Supplement.

 

CITADEL
SPV LLC, in its capacity as Control Party

 

	By:	/s/
    Orlando Figueroa	 
	Name:	 Orlando Figueroa 	 
	Title:	 Senior Managing Director 	 

 

Signature Page to Series 2020-2 Supplement to the Base Indenture

 FAT Brands Royalty I, LLC

 

    	 

     

    

 

ANNEX
A

 

SERIES
2020-2

 

SUPPLEMENTAL
DEFINITIONS LIST

 

“30/360
Day Basis” means the accrual of interest calculated on the basis of a 360-day year consisting of twelve 30-day months.

 

“Carryover
Subordinated Notes Accrued Quarterly Interest Amount” means (a) for the first Monthly Allocation Date with respect to
any Quarterly Collection Period, zero, and (b) for any other Monthly Allocation Date with respect to such Quarterly Collection
Period the amount, if any, by which (i) the amount allocated to the Subordinated Notes Interest Payment Account with respect to
the Subordinated Notes on the immediately preceding Monthly Allocation Date with respect to such Quarterly Collection Period was
less than (ii) the Subordinated Notes Accrued Quarterly Interest Amount for such immediately preceding Monthly Allocation Date;
provided that for the first Monthly Allocation Date after the applicable Series Closing Date, the Carryover Subordinated Notes
Accrued Quarterly Interest Amount shall equal the aggregate amount of interest accrued on the Subordinated Notes for the period
from such Series Closing Date until such Monthly Allocation Date.

 

“Carryover
Subordinated Notes Accrued Scheduled Principal Payments Amount” means: (a) for the first Monthly Allocation Date with
respect to any Quarterly Collection Period, zero, and (b) for any other Monthly Allocation Date with respect to such Quarterly
Collection Period the amount, if any, by which (i) the amount allocated to the Subordinated Notes Principal Payment Account with
respect to the Subordinated Notes Scheduled Principal Payment Amounts on the immediately preceding Monthly Allocation Date with
respect to such Quarterly Collection Period was less than (ii) the Subordinated Notes Accrued Scheduled Principal Payments Amount
for such immediately preceding Monthly Allocation Date.

 

“Change
in Law” means: (a) any law, rule or regulation or any change therein or in the interpretation or application thereof
(whether or not having the force of law), in each case, adopted, issued or occurring after the Series 2020-2 Closing Date or (b)
any request, guideline or directive (whether or not having the force of law) from any government or political subdivision or agency,
authority, bureau, central bank, commission, department or instrumentality thereof, or any court, tribunal, grand jury or arbitrator,
or any accounting board or authority (whether or not a Governmental Authority) which is responsible for the establishment or interpretation
of national or international accounting principles, in each case, whether foreign or domestic (each, an “Official Body”)
charged with the administration, interpretation or application thereof, or the compliance with any request or directive of any
Official Body (whether or not having the force of law) made, issued or occurring after the Series 2020-2 Closing Date.

 

“Change
of Control” has the meaning ascribed to such term in the Management Agreement.

 

“Clearstream”
means Clearstream Luxembourg.

 

“Defeased
Class” has the meaning set forth in Section 4.8(b) of the Series 2020-2 Supplement.

 

    	Annex A-1

     

    

 

“Definitive
Notes” has the meaning set forth in Section 4.1(c) of the Series 2020-2 Supplement.

 

“DTC”
means The Depository Trust Company, and any successor thereto.

 

“Euroclear”
Euroclear Bank, S.A./N.A., or any successor thereto, as operator of Euroclear System.

 

“Initial
Quarterly Payment Date” means October 26, 2020.

 

“Official
Body” has the meaning set forth in the definition of “Change in Law.”

 

“Outstanding
Principal Amount” means with respect to any one or more Series, Classes, Subclasses or Tranches of Notes, as applicable
at any time, the aggregate principal amount Outstanding of such Notes at such time.

 

“Permanent
Regulation S Global Notes” has the meaning set forth in Sections 4.1(b) of the Series 2020-2 Supplement.

 

“Prepayment
Condition Amounts” means, as of any Quarterly Payment Date, the aggregate amount due and payable to all of the Noteholders
as of such Quarterly Payment Date.

 

“Prepayment
Notice” has the meaning set forth in Section 3.5(e) of the Series 2020-2 Supplement.

 

“Prepayment
Record Date” means, with respect to the date of any Series 2020-2 Class M-2 Prepayment, the last day of the calendar
month immediately preceding the date of such Series 2020-2 Class M-2 Prepayment unless such last day is less than ten (10) Business
Days prior to the date of such Series 2020-2 Class M-2 Prepayment, in which case the “Prepayment Record Date” will
be the date that is ten (10) Business Days prior to the date of such Series 2020-2 Class M-2 Prepayment.

 

“Private
Placement Memorandum” means the Private Placement Memorandum for the offering of the Series 2020-2 Class M-2 Notes,
dated September 21, 2020, prepared by the Issuer.

 

“Qualified
Institutional Buyer” or “QIB” means a Person who is a “qualified institutional buyer”
as defined in Rule 144A.

 

“Regulation
S” means Regulation S promulgated under the 1933 Act.

 

“Regulation
S Global Notes” means, collectively, the Temporary Regulation S Global Notes and the Permanent Regulation S Global Notes.

 

“Restricted
Period” means, with respect to any Series 2020-2 Class M-2 Notes sold pursuant to Regulation S, the period commencing
on such Series 2020-2 Closing Date and ending on the 40th day after the Series 2020-2 Closing Date.

 

“Rule
144A” means Rule 144A promulgated under the 1933 Act.

 

    	Annex A-2

     

    

 

“Rule
144A Global Notes” has the meaning set forth in Section 4.1(b) of the Series 2020-2 Supplement.

 

“Series
2020-1 Supplement” means the Series 2020-1 Supplement dated as of March 6, 2020 to the Base Indenture.

 

“Series
2020-2 Class M-2 Amortization Date” has the meaning set forth in Section 3.5(a)(iii) of the Series 2020-2 Supplement.

 

“Series
2020-2 Class M-2 Anticipated Repayment Date” has the meaning set forth in Section 3.5(a)(ii) of the Series 2020-2
Supplement. For purposes of the Base Indenture, the “Series 2020-2 Class M-2 Anticipated Repayment Date” shall be
deemed to be a “Series Anticipated Repayment Date”.

 

“Series
2020-2 Class M-2 Initial Principal Amount” means, the aggregate initial outstanding principal amount of the Class M-2
Notes as of the 2020-2 Closing Date, which is $40,000,000.

 

“Series
2020-2 Class M-2 Legal Final Maturity Date” means the Quarterly Payment Date occurring on April 27, 2026. For purposes
of the Base Indenture, the “Series 2020-2 Class M-2 Legal Final Maturity Date” shall be deemed to be a “Series
Legal Final Maturity Date.”

 

“Series
2020-2 Class M-2 Note Rate” means 9.75% per annum, compounded monthly.

 

“Series
2020-2 Class M-2 Noteholder” means the Person in whose name a Series 2020-2 Class M-2 Note is registered in the Note
Register.

 

“Series
2020-2 Class M-2 Notes” has the meaning specified in the “Designation” of the Series 2020-2 Supplement.

 

“Series
2020-2 Class M-2 Notes Scheduled Principal Payment Amount” means, on each Quarterly Payment Date following the Series
2020-2 Class M-2 Amortization Date and prior to the Series 2020-2 Class M-2 Anticipated Repayment Date, an amount equal to one
half percent (0.5%) of the Series 2020-2 Class M-2 Initial Principal Amount through the Quarterly Payment Date occurring on April
25, 2023 and commencing thereafter, an amount equal to eight percent (8.0%) of the Series 2020-2 Class M-2 Initial Principal Amount.
For purposes of the Base Indenture, the “Series 2020-2 Class M-2 Notes Scheduled Principal Payment Amounts” shall
be deemed to be “Scheduled Principal Payments”.

 

“Series
2020-2 Class M-2 Notes Scheduled Principal Payment Deficiency Amount” means, with respect to any Quarterly Payment Date,
if on any Quarterly Calculation Date, (a) the sum of (i) the amount of funds on deposit in the Subordinated Notes Principal Payment
Account with respect to the Series 2020-2 Class M-2 Notes and (ii) any other funds on deposit in the Indenture Trust Accounts
that are available to pay the Series 2020-2 Class M-2 Notes Scheduled Principal Payments with respect to the Series 2020-2 Class
M-2 Notes on such Quarterly Payment Date is less than (b) the sum of (i) the Series 2020-2 Class M-2 Notes Scheduled Principal
Payment Amount due and payable, if any, on such Quarterly Payment Date plus any Series 2020-2 Class M-2 Notes Scheduled
Principal Payment Amounts due but unpaid from any previous Quarterly Payment Dates and (ii) the amount of funds on deposit in
the Subordinated Notes Principal Payment Account with respect to such amounts set forth in clause (b)(i) and allocated
to the Series 2020-2 Class M-2 Notes, the amount of such deficiency.

 

    	Annex A-3

     

    

 

“Series
2020-2 Class M-2 Outstanding Principal Amount” means, on any date, an amount equal to (a) the Series 2020-2 Class M-2
Initial Principal Amount, minus (b) the aggregate amount of principal payments (whether pursuant to the payment of Series
2020-2 Class M-2 Notes Scheduled Principal Payments Amounts, a prepayment, a purchase and cancellation, a redemption or otherwise)
made to the Series 2020-2 Class M-2 Noteholders on or prior to such date. For purposes of the Base Indenture, the “Series
2020-2 Class M-2 Outstanding Principal Amount” shall be deemed to be an “Outstanding Principal Amount.”

 

“Series
2020-2 Class M-2 Prepayment” has the meaning set forth in Section 3.5(d)(i) of the Series 2020-2 Supplement.

 

“Series
2020-2 Class M-2 Quarterly Interest Amount” means, for each Interest Accrual Period, an amount equal to the accrued
interest at the applicable Series 2020-2 Class M-2 Note Rate on the Series 2020-2 Class M-2 Outstanding Principal Amount (as of
the first day of such Interest Accrual Period after giving effect to all payments of principal (if any) made to such Series 2020-2
Class M-2 Noteholders as of such day and also giving effect to prepayments, repurchases and cancellations of Series 2020-2 Class
M-2 Notes during such Interest Accrual Period). For purposes of the Base Indenture, “Series 2020-2 Class M-2 Quarterly Interest
Amount” shall be deemed to be a “Subordinated Notes Quarterly Interest Amount.”

 

“Series
2020-2 Class M-2 Quarterly Post-ARD Additional Interest” has the meaning set forth in Section 3.5(b)(i) of the
Series 2020-2 Supplement. For purposes of the Base Indenture, Series 2020-2 Class M-2 Quarterly Post-ARD Additional Interest shall
be deemed to be “Subordinated Notes Quarterly Post-ARD Additional Interest.”

 

“Series
2020-2 Class M-2 Quarterly Post-ARD Additional Interest Rate” has the meaning set forth in Section 3.5(b)(i)
of the Series 2020-2 Supplement.

 

“Series
2020-2 Closing Date” means September 21, 2020.

 

“Series
2020-2 Final Payment” means as to any Class of Notes, the payment of all accrued and unpaid interest on and principal
of all Outstanding Series 2020-2 Class M-2 Notes of such Class.

 

“Series
2020-2 Final Payment Date” means as to any Class of Notes, the date on which the Series 2020-2 Final Payment with respect
to such Class is made.

 

“Series
2020-2 Class M-2 Global Notes” means, collectively, the Regulation S Global Notes and the Rule 144A Global Notes.

 

“Series
2020-2 Class M-2 Prepayment Amount” means the aggregate principal amount of the Series 2020-2 Class M-2 Notes to be
prepaid on any Series 2020-2 Class M-2 Prepayment Date, together with all accrued and unpaid interest thereon to such date.

 

    	Annex A-4

     

    

 

“Series
2020-2 Class M-2 Prepayment Date” means the date on which any prepayment on the Series 2020-2 Class M-2 Notes is made
pursuant to Section 3.5(d) of the Series 2020-2 Supplement, which shall be, with respect to any Series 2020-2 Class M-2
Prepayment Amount pursuant to Section 3.5(d), the Quarterly Payment Date specified as such in the applicable Prepayment
Notice.

 

“Series
2020-2 Supplement” means this Series 2020-2 Supplement, dated as of the Series 2020-2 Closing Date by and among the
Issuer and Trustee, as amended, supplemented or otherwise modified from time to time.

 

“Similar
Law” means any federal, state, local, or non-U.S. law that is substantially similar to the provisions of Section 406
of ERISA or Section 4975 of the Code.

 

“Subordinated
Notes Accrued Quarterly Interest Amount” means, for each Monthly Allocation Date with respect to a Quarterly Collection
Period, an amount equal to the lesser of (a) the sum of (i) one-third of the Subordinated Notes Aggregate Quarterly Interest for
the Interest Accrual Period ending in the next succeeding Quarterly Collection Period and (ii) the Carryover Subordinated Notes
Accrued Quarterly Interest Amount for such Monthly Allocation Date and (b) the amount, if any, by which (i) Subordinated Notes
Aggregate Quarterly Interest for the Interest Accrual Period ending in the next succeeding Quarterly Collection Period exceeds
(ii) the aggregate amount previously allocated to the Subordinated Notes Interest Payment Account with respect to the Subordinated
Notes Quarterly Interest Amount on each preceding Monthly Allocation Date (or prefunded on the Closing Date) with respect to such
Quarterly Collection Period.

 

“Subordinated
Notes Accrued Scheduled Principal Payments Amount” means, for each Monthly Allocation Date with respect to any Quarterly
Collection Period an amount equal to the lesser of (a) the sum of (i) one third of the Subordinated Notes Aggregate Scheduled
Principal Payments for the Quarterly Payment Date in the next succeeding Quarterly Collection Period and (ii) the Carryover Subordinated
Notes Accrued Scheduled Principal Payments Amount for such Monthly Allocation Date and (b) the amount, if any, by which (i) the
Subordinated Notes Aggregate Scheduled Principal Payments for the Quarterly Payment Date in the next succeeding Quarterly Collection
Period exceeds (ii) the aggregate amount previously allocated to the Subordinated Notes Principal Payment Account with respect
to the Subordinated Notes Aggregate Scheduled Principal Payments on each preceding Monthly Allocation Date (or prefunded on the
Closing Date) with respect to such Quarterly Collection Period.

 

“Temporary
Regulation S Global Notes” has the meaning set forth in Section 4.2(b) of the Series 2020-2 Supplement.

 

“U.S.
Person” has the meaning set forth in Regulation S under the Securities Act.

 

    	Annex A-5

     

    

 

	Fiscal QE Date	 	Prior Three Monthly Collection
    Period End Dates	 	Record Date	 	Quarterly Calculation Date	 	Quarterly Noteholders’

    Report Date	 	Quarterly Payment Date
	Last Sunday of Each 13

Week Quarter (Except for

one 14 week quarter ending

December 31,	 	All included in each respective
quarterly collection period	 	20th
Calendar Day of Month

in which Quarterly Payment 	 	4 Business Days Prior to

Quarterly	 	3 Business Days Prior to

Quarterly	 	

                                         25th Calendar
                                         Day of the following Months (April, July October January)
 (if
                                         not Business Day,

                                         following Business

	2023)	 	Month 1	 	Month 2	 	Month 3	 	Date Falls	 	Payment Date	 	Payment Date	 	Day)
	Sunday, September 27, 2020	 	Sunday, July 26, 2020	 	Sunday, August 23, 2020	 	Sunday, September 27, 2020	 	Tuesday, October 20, 2020	 	Tuesday, October 20, 2020	 	Wednesday, October 21, 2020	 	Monday, October 26, 2020
	Sunday, December 27, 2020	 	Sunday, October 25, 2020	 	Sunday, November 22, 2020	 	Sunday, December 27, 2020	 	Wednesday, January 20, 2021	 	Tuesday, January 19, 2021	 	Wednesday, January 20, 2021	 	Monday, January 25, 2021
	Sunday, March 28, 2021	 	Sunday, January 24, 2021	 	Sunday, February 21, 2021	 	Sunday, March 28, 2021	 	Tuesday, April 20, 2021	 	Tuesday, April 20, 2021	 	Wednesday, April 21, 2021	 	Monday, April 26, 2021
	Sunday, June 27, 2021	 	Sunday, April 25, 2021	 	Sunday, May 23, 2021	 	Sunday, June 27, 2021	 	Tuesday, July 20, 2021	 	Tuesday, July 20, 2021	 	Wednesday, July 21, 2021	 	Monday, July 26, 2021
	Sunday, September 26, 2021	 	Sunday, July 25, 2021	 	Sunday, August 22, 2021	 	Sunday, September 26, 2021	 	Wednesday, October 20, 2021	 	Tuesday, October 19, 2021	 	Wednesday, October 20, 2021	 	Monday, October 25, 2021
	Sunday, December 26, 2021	 	Sunday, October 24, 2021	 	Sunday, November 21, 2021	 	Sunday, December 26, 2021	 	Thursday, January 20, 2022	 	Wednesday, January 19, 2022	 	Thursday, January 20, 2022	 	Tuesday, January 25, 2022
	Sunday, March 27, 2022	 	Sunday, January 23, 2022	 	Sunday, February 20, 2022	 	Sunday, March 27, 2022	 	Wednesday, April 20, 2022	 	Tuesday, April 19, 2022	 	Wednesday, April 20, 2022	 	Monday, April 25, 2022
	Sunday, June 26, 2022	 	Sunday, April 24, 2022	 	Sunday, May 22, 2022	 	Sunday, June 26, 2022	 	Wednesday, July 20, 2022	 	Tuesday, July 19, 2022	 	Wednesday, July 20, 2022	 	Monday, July 25, 2022
	Sunday, September 25, 2022	 	Sunday, July 24, 2022	 	Sunday, August 21, 2022	 	Sunday, September 25, 2022	 	Thursday, October 20, 2022	 	Wednesday, October 19, 2022	 	Thursday, October 20, 2022	 	Tuesday, October 25, 2022
	Sunday, December 25, 2022	 	Sunday, October 23, 2022	 	Sunday, November 20, 2022	 	Sunday, December 25, 2022	 	Friday, January 20, 2023	 	Thursday, January 19, 2023	 	Friday, January 20, 2023	 	Wednesday, January 25, 2023
	Sunday, March 26, 2023	 	Sunday, January 22, 2023	 	Sunday, February 19, 2023	 	Sunday, March 26, 2023	 	Thursday, April 20, 2023	 	Wednesday, April 19, 2023	 	Thursday, April 20, 2023	 	Tuesday, April 25, 2023
	Sunday, June 25, 2023	 	Sunday, April 23, 2023	 	Sunday, May 21, 2023	 	Sunday, June 25, 2023	 	Thursday, July 20, 2023	 	Wednesday, July 19, 2023	 	Thursday, July 20, 2023	 	Tuesday, July 25, 2023
	Sunday, September 24, 2023	 	Sunday, July 23, 2023	 	Sunday, August 20, 2023	 	Sunday, September 24, 2023	 	Friday, October 20, 2023	 	Thursday, October 19, 2023	 	Friday, October 20, 2023	 	Wednesday, October 25, 2023
	Sunday, December 31, 2023	 	Sunday, October 22, 2023	 	Sunday, November 19, 2023	 	Sunday, December 31, 2023	 	Saturday, January 20, 2024	 	Friday, January 19, 2024	 	Monday, January 22, 2024	 	Thursday, January 25, 2024
	Sunday, March 31, 2024	 	Sunday, January 28, 2024	 	Sunday, February 25, 2024	 	Sunday, March 31, 2024	 	Saturday, April 20, 2024	 	Friday, April 19, 2024	 	Monday, April 22, 2024	 	Thursday, April 25, 2024
	Sunday, June 30, 2024	 	Sunday, April 28, 2024	 	Sunday, May 26, 2024	 	Sunday, June 30, 2024	 	Saturday, July 20, 2024	 	Friday, July 19, 2024	 	Monday, July 22, 2024	 	Thursday, July 25, 2024
	Sunday, September 29, 2024	 	Sunday, July 28, 2024	 	Sunday, August 25, 2024	 	Sunday, September 29, 2024	 	Sunday, October 20, 2024	 	Monday, October 21, 2024	 	Tuesday, October 22, 2024	 	Friday, October 25, 2024
	Sunday, December 29, 2024	 	Sunday, October 27, 2024	 	Sunday, November 24, 2024	 	Sunday, December 29, 2024	 	Monday, January 20, 2025	 	Tuesday, January 21, 2025	 	Wednesday, January 22, 2025	 	Monday, January 27, 2025
	Sunday, March 30, 2025	 	Sunday, January 26, 2025	 	Sunday, February 23, 2025	 	Sunday, March 30, 2025	 	Sunday, April 20, 2025	 	Monday, April 21, 2025	 	Tuesday, April 22, 2025	 	Friday, April 25, 2025
	Sunday, June 29, 2025	 	Sunday, April 27, 2025	 	Sunday, May 25, 2025	 	Sunday, June 29, 2025	 	Sunday, July 20, 2025	 	Monday, July 21, 2025	 	Tuesday, July 22, 2025	 	Friday, July 25, 2025
	Sunday, September 28, 2025	 	Sunday, July 27, 2025	 	Sunday, August 24, 2025	 	Sunday, September 28, 2025	 	Monday, October 20, 2025	 	Tuesday, October 21, 2025	 	Wednesday, October 22, 2025	 	Monday, October 27, 2025
	Sunday, December 28, 2025	 	Sunday, October 26, 2025	 	Sunday, November 23, 2025	 	Sunday, December 28, 2025	 	Tuesday, January 20, 2026	 	Tuesday, January 20, 2026	 	Wednesday, January 21, 2026	 	Monday, January 26, 2026
	Sunday, March 29, 2026	 	Sunday, January 25, 2026	 	Sunday, February 22, 2026	 	Sunday, March 29, 2026	 	Monday, April 20, 2026	 	Tuesday, April 21, 2026	 	Wednesday, April 22, 2026	 	Monday, April 27, 2026
	Sunday, June 28, 2026	 	Sunday, April 26, 2026	 	 	 	 	 	Monday, July 20, 2026	 	Tuesday, July 21, 2026	 	Wednesday, July 22, 2026	 	Monday, July 27, 2026

 

Note:
First Fiscal Quarterly Period begins as of Transaction Close Date and respectively reflected in the First Quarterly Noteholders’
Report and the First Quarterly Payment

 

Note:
Last Fiscal Quarterly Period ends as of Last Legal Final Maturity Date and respectively reflected in the Last Quarterly Noteholders’
Report and the Last Quarterly Payment

 

    	Annex B-1

     

    

 

	Fiscal Month End Date	 	Monthly Manager Certificate Date	 	Monthly Allocation Date
	Last Sunday of Each 4 or 5 

Week Month (Except for one 

6 week month in December

 2023)	 	5 Business Days Prior to 

Monthly Allocation Date	 	2nd Friday Following Fiscal

 Month End (if not Business

 Day, following Business 

Day)
	Sunday, September 27, 2020	 	Friday, October 2, 2020	 	Friday, October 9, 2020
	Sunday, October 25, 2020	 	Friday, October 30, 2020	 	Friday, November 6, 2020
	Sunday, November 22, 2020	 	Friday, November 27, 2020	 	Friday, December 4, 2020
	Sunday, December 27, 2020	 	Thursday, December 31, 2020	 	Friday, January 8, 2021
	Sunday, January 24, 2021	 	Friday, January 29, 2021	 	Friday, February 5, 2021
	Sunday, February 21, 2021	 	Friday, February 26, 2021	 	Friday, March 5, 2021
	Sunday, March 28, 2021	 	Friday, April 2, 2021	 	Friday, April 9, 2021
	Sunday, April 25, 2021	 	Friday, April 30, 2021	 	Friday, May 7, 2021
	Sunday, May 23, 2021	 	Friday, May 28, 2021	 	Friday, June 4, 2021
	Sunday, June 27, 2021	 	Friday, July 2, 2021	 	Friday, July 9, 2021
	Sunday, July 25, 2021	 	Friday, July 30, 2021	 	Friday, August 6, 2021
	Sunday, August 22, 2021	 	Friday, August 27, 2021	 	Friday, September 3, 2021
	Sunday, September 26, 2021	 	Friday, October 1, 2021	 	Friday, October 8, 2021
	Sunday, October 24, 2021	 	Friday, October 29, 2021	 	Friday, November 5, 2021
	Sunday, November 21, 2021	 	Friday, November 26, 2021	 	Friday, December 3, 2021
	Sunday, December 26, 2021	 	Friday, December 31, 2021	 	Friday, January 7, 2022
	Sunday, January 23, 2022	 	Friday, January 28, 2022	 	Friday, February 4, 2022
	Sunday, February 20, 2022	 	Friday, February 25, 2022	 	Friday, March 4, 2022
	Sunday, March 27, 2022	 	Friday, April 1, 2022	 	Friday, April 8, 2022
	Sunday, April 24, 2022	 	Friday, April 29, 2022	 	Friday, May 6, 2022
	Sunday, May 22, 2022	 	Friday, May 27, 2022	 	Friday, June 3, 2022
	Sunday, June 26, 2022	 	Friday, July 1, 2022	 	Friday, July 8, 2022
	Sunday, July 24, 2022	 	Friday, July 29, 2022	 	Friday, August 5, 2022
	Sunday, August 21, 2022	 	Friday, August 26, 2022	 	Friday, September 2, 2022
	Sunday, September 25, 2022	 	Friday, September 30, 2022	 	Friday, October 7, 2022
	Sunday, October 23, 2022	 	Friday, October 28, 2022	 	Friday, November 4, 2022
	Sunday, November 20, 2022	 	Friday, November 25, 2022	 	Friday, December 2, 2022
	Sunday, December 25, 2022	 	Friday, December 30, 2022	 	Friday, January 6, 2023
	Sunday, January 22, 2023	 	Friday, January 27, 2023	 	Friday, February 3, 2023

 

    	Annex B-2

     

    

 

	Fiscal Month End Date	 	Monthly Manager Certificate Date	 	Monthly Allocation Date
	Last Sunday of Each 4 or 5 

Week Month (Except for one 

6 week month in December

 2023)	 	5 Business Days Prior to 

Monthly Allocation Date	 	2nd Friday Following Fiscal

 Month End (if not Business

 Day, following Business 

Day)
	Sunday, February 19, 2023	 	Friday, February 24, 2023	 	Friday, March 3, 2023
	Sunday, March 26, 2023	 	Friday, March 31, 2023	 	Friday, April 7, 2023
	Sunday, April 23, 2023	 	Friday, April 28, 2023	 	Friday, May 5, 2023
	Sunday, May 21, 2023	 	Friday, May 26, 2023	 	Friday, June 2, 2023
	Sunday, June 25, 2023	 	Friday, June 30, 2023	 	Friday, July 7, 2023
	Sunday, July 23, 2023	 	Friday, July 28, 2023	 	Friday, August 4, 2023
	Sunday, August 20, 2023	 	Friday, August 25, 2023	 	Friday, September 1, 2023
	Sunday, September 24, 2023	 	Friday, September 29, 2023	 	Friday, October 6, 2023
	Sunday, October 22, 2023	 	Friday, October 27, 2023	 	Friday, November 3, 2023
	Sunday, November 19, 2023	 	Friday, November 24, 2023	 	Friday, December 1, 2023
	Sunday, December 31, 2023	 	Friday, January 5, 2024	 	Friday, January 12, 2024
	Sunday, January 28, 2024	 	Friday, February 2, 2024	 	Friday, February 9, 2024
	Sunday, February 25, 2024	 	Friday, March 1, 2024	 	Friday, March 8, 2024
	Sunday, March 31, 2024	 	Friday, April 5, 2024	 	Friday, April 12, 2024
	Sunday, April 28, 2024	 	Friday, May 3, 2024	 	Friday, May 10, 2024
	Sunday, May 26, 2024	 	Friday, May 31, 2024	 	Friday, June 7, 2024
	Sunday, June 30, 2024	 	Friday, July 5, 2024	 	Friday, July 12, 2024
	Sunday, July 28, 2024	 	Friday, August 2, 2024	 	Friday, August 9, 2024
	Sunday, August 25, 2024	 	Friday, August 30, 2024	 	Friday, September 6, 2024
	Sunday, September 29, 2024	 	Friday, October 4, 2024	 	Friday, October 11, 2024
	Sunday, October 27, 2024	 	Friday, November 1, 2024	 	Friday, November 8, 2024
	Sunday, November 24, 2024	 	Friday, November 29, 2024	 	Friday, December 6, 2024
	Sunday, December 29, 2024	 	Friday, January 3, 2025	 	Friday, January 10, 2025
	Sunday, January 26, 2025	 	Friday, January 31, 2025	 	Friday, February 7, 2025
	Sunday, February 23, 2025	 	Friday, February 28, 2025	 	Friday, March 7, 2025
	Sunday, March 30, 2025	 	Friday, April 4, 2025	 	Friday, April 11, 2025
	Sunday, April 27, 2025	 	Friday, May 2, 2025	 	Friday, May 9, 2025
	Sunday, May 25, 2025	 	Friday, May 30, 2025	 	Friday, June 6, 2025
	Sunday, June 29, 2025	 	Thursday, July 3, 2025	 	Friday, July 11, 2025
	Sunday, July 27, 2025	 	Friday, August 1, 2025	 	Friday, August 8, 2025
	Sunday, August 24, 2025	 	Friday, August 29, 2025	 	Friday, September 5, 2025
	Sunday, September 28, 2025	 	Friday, October 3, 2025	 	Friday, October 10, 2025
	Sunday, October 26, 2025	 	Friday, October 31, 2025	 	Friday, November 7, 2025
	Sunday, November 23, 2025	 	Friday, November 28, 2025	 	Friday, December 5, 2025
	Sunday, December 28, 2025	 	Friday, January 2, 2026	 	Friday, January 9, 2026
	Sunday, January 25, 2026	 	Friday, January 30, 2026	 	Friday, February 6, 2026
	Sunday, February 22, 2026	 	Friday, February 27, 2026	 	Friday, March 6, 2026
	Sunday, March 29, 2026	 	Friday, April 3, 2026	 	Friday, April 10, 2026
	Sunday, April 26, 2026	 	Friday, May 1, 2026	 	Friday, May 8, 2026

 

Note:
First Fiscal Monthly Period begins as of Transaction Close Date and respectively reflected in the First Monthly Manager Certificate
and First Monthly Allocation

 

Note:
Last Fiscal Monthly Period ends as of Last Legal Final Maturity Date and respectively reflected in the Last Monthly Manager Certificate
and Last Monthly Allocation

 

    	Annex B-3

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
A-1

 

Form
of Rule 144A Global Note

 

THE
ISSUANCE AND SALE OF THIS RULE 144A GLOBAL SERIES 2020-2 CLASS M-2 NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE
OR OTHER RELEVANT JURISDICTION, AND FAT BRANDS ROYALTY I, LLC (THE “ISSUER”) HAVE NOT BEEN REGISTERED UNDER THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”). THIS NOTE OR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER OR AN AFFILIATE THEREOF, (B) IN THE UNITED STATES, TO A PERSON WHO IS NOT A COMPETITOR
AND IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE 1933 ACT (“RULE 144A”), ACTING
FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH PERSON EXERCISES SOLE INVESTMENT DISCRETION OR (C) OUTSIDE
THE UNITED STATES, TO A PERSON WHO IS NOT A COMPETITOR AND IS NOT A “U.S. PERSON” AS DEFINED IN REGULATION S UNDER
THE 1933 ACT (“REGULATION S”), ACTING FOR ITS OWN ACCOUNT OR ONE OR MORE ACCOUNTS WITH RESPECT TO WHICH SUCH PERSON
EXERCISES SOLE INVESTMENT DISCRETION, NONE OF WHICH ARE A U.S. PERSON, IN OFFSHORE TRANSACTIONS IN RELIANCE ON REGULATION S, AND,
IN EACH CASE, IN COMPLIANCE WITH THE CERTIFICATIONS AND OTHER REQUIREMENTS SPECIFIED IN THE INDENTURE REFERRED TO HEREIN AND ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OR THE UNITED STATES AND ANY OTHER RELEVANT JURISDICTION.

 

BY
ITS ACQUISITION OR ACCEPTANCE HEREOF, THE HOLDER (IF NOT THE ISSUER OR AN AFFILIATE OF THE ISSUER) REPRESENTS THAT (A) IT IS NOT
A COMPETITOR AND IS (X) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A OR (Y) NOT A U.S. PERSON AND IS
ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION, AS APPLICABLE, (B) IT IS NOT A COMPETITOR AND IS ACTING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF ANOTHER PERSON WHICH IS EITHER (X) A QUALIFIED INSTITUTIONAL BUYER OR (Y) NOT A U.S. PERSON, AND IN EACH CASE
WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT DISCRETION, (C) IT AND EACH ACCOUNT FOR WHICH IT IS PURCHASING WILL HOLD AND
TRANSFER AT LEAST THE MINIMUM DENOMINATION OF NOTES, (D) IT UNDERSTANDS THAT THE ISSUER MAY RECEIVE A LIST OF PARTICIPANTS HOLDING
POSITIONS IN ITS NOTES FROM ONE OR MORE BOOK-ENTRY DEPOSITORIES AND (E) IT WILL PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS TO
ANY SUBSEQUENT TRANSFEREES.

 

EACH
PERSON (IF NOT THE ISSUER OR AN AFFILIATE OF THE ISSUER) TAKING DELIVERY OF THIS NOTE OR AN INTEREST IN THIS NOTE WILL BE DEEMED
TO HAVE MADE THE APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE. EACH PERSON TAKING DELIVERY OF THIS NOTE
OR AN INTEREST IN THIS NOTE IN THE FORM OF AN INTEREST IN A TEMPORARY REGULATION S GLOBAL NOTE OR PERMANENT REGULATION S GLOBAL
NOTE WILL BE REQUIRED TO DELIVER A TRANSFER CERTIFICATE IN THE FORM REQUIRED BY THE INDENTURE AND WILL BE REQUIRED TO MAKE THE
APPLICABLE REPRESENTATIONS AND AGREEMENTS REFERRED TO IN THE INDENTURE.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

ANY
TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT AND WILL BE VOID AB INITIO AND WILL NOT OPERATE
TO TRANSFER ANY RIGHTS TO ANY PERSON CAUSING SUCH VIOLATION, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER, THE
TRUSTEE OR ANY INTERMEDIARY; PROVIDED, HOWEVER, THAT THE PRECEDING PORTION OF THIS SENTENCE SHALL NOT OPERATE TO INVALIDATE ANY
OTHERWISE BONA FIDE TRANSFER TO AN ELIGIBLE TRANSFEREE WHERE A PREVIOUS ERRONEOUSLY-REGISTERED TRANSFEROR IN THE CHAIN OF TITLE
OF SUCH TRANSFEREE WOULD HAVE BEEN INELIGIBLE SOLELY ON ACCOUNT OF BEING A COMPETITOR.

 

IF
THIS NOTE WAS ACQUIRED IN THE UNITED STATES, AND THE HOLDER IS DETERMINED TO BE A COMPETITOR OR NOT TO HAVE BEEN A QUALIFIED INSTITUTIONAL
BUYER AT THE TIME OF ACQUISITION OF THIS NOTE, THE ISSUER HAS THE RIGHT TO REQUIRE SUCH HOLDER TO SELL THIS NOTE TO A PURCHASER
WHO IS NOT A COMPETITOR AND IS A QUALIFIED INSTITUTIONAL BUYER. THE ISSUER ALSO HAS THE RIGHT TO REFUSE TO HONOR A TRANSFER TO
A PERSON WHO IS NOT A QUALIFIED INSTITUTIONAL BUYER OR WHO IS A COMPETITOR.

 

IF
THIS NOTE WAS ACQUIRED OUTSIDE THE UNITED STATES, AND THE HOLDER IS DETERMINED TO BE A COMPETITOR OR TO HAVE BEEN A “U.S.
PERSON” AT THE TIME OF ACQUISITION OF THIS NOTE, THE ISSUER HAS THE RIGHT TO REQUIRE SUCH HOLDER TO SELL THIS NOTE TO A
PURCHASER WHO IS NOT A COMPETITOR AND IS NOT A “U.S. PERSON.” THE ISSUER ALSO HAS THE RIGHT TO REFUSE TO HONOR A TRANSFER
TO A PERSON WHO IS A “U.S. PERSON” OR WHO IS A COMPETITOR.

 

BY
ACCEPTING THIS NOTE, EACH HOLDER COVENANTS THAT IT WILL NOT AT ANY TIME PRIOR TO THE DATE WHICH IS ONE (1) YEAR AND ONE (1) DAY
AFTER THE PAYMENT IN FULL OF THE LATEST MATURING NOTE, INSTITUTE AGAINST, OR JOIN WITH ANY OTHER PERSON IN INSTITUTING AGAINST,
ANY SECURITIZATION ENTITY ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT, INSOLVENCY OR LIQUIDATION PROCEEDINGS, OR OTHER PROCEEDINGS,
UNDER ANY FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY
TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10041, OR A NOMINEE THEREOF. THIS
NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE NOTE REGISTRAR, AND ANY
NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC,
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER,
CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS
RULE 144A GLOBAL SERIES 2020-2 CLASS M-2 NOTE WAS ISSUED WITH “ORIGINAL ISSUE DISCOUNT” AS DEFINED IN SECTION 1273
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY OBTAIN INFORMATION REGARDING THE AMOUNT OF ORIGINAL ISSUE DISCOUNT,
THE ISSUE PRICE, THE ISSUE DATE AND THE YIELD TO MATURITY BY CONTACTING THE MANAGER AT FAT BRANDS INC., 9720 WILSHIRE BLVD., SUITE
500, BEVERLY HILLS, CA 90212, ATTN: ANDREW A. WIEDERHORN.

 

THE
PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. ANY PERSON ACQUIRING THIS NOTE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT
BY INQUIRY OF THE TRUSTEE.

 

FORM
OF RULE 144A GLOBAL SERIES 2020-2 CLASS M-2 NOTE

 

	No.
    [  ]	$40,000,000.00

 

SEE
REVERSE FOR CERTAIN CONDITIONS

 

CUSIP
Number: 31189TAE4

ISIN
Number: US31189TAE47

Common
Code: [_____]

 

FAT
BRANDS ROYALTY I, LLC

 

SERIES
2020-2 9.75% FIXED RATE SUBORDINATED SECURED NOTES, CLASS M-2

 

FAT
BRANDS ROYALTY I, LLC, a limited liability company formed under the laws of the State of Delaware (the “Issuer”),
for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of FORTY MILLION DOLLARS
($40,000,000.00) as provided below and in the Indenture referred to herein. Payments of principal shall be payable in the amounts
and at the times set forth in the Indenture described herein; provided, however, that the entire unpaid principal
amount of this Note shall be due on April 27, 2026 (the “Series 2020-2 Class M-2 Legal Final Maturity Date”).
The Issuer will pay interest on this Series 2020-2 Class M-2 Note (this “Note”) at the Series 2020-2 Class
M-2 Note Rate for each Interest Accrual Period in accordance with the terms of the Indenture. Such interest will be payable in
arrears on each Quarterly Payment Date, which will be on the 25th day (or, if such 25th day is not a Business Day, the next succeeding
Business Day) of each January, April, July and October, commencing October 26, 2020 (each, a “Quarterly Payment Date”).
Such interest will accrue for each Quarterly Payment Date with respect to (i) initially, the period from and including the Series
Closing Date to but excluding October 5, 2020, and (ii) thereafter, the period from and including the 5th day of the calendar
month in which the immediately preceding Quarterly Payment Date occurred to but excluding the 5th day of the calendar month which
includes the then-current Quarterly Payment Date (each, an “Interest Accrual Period”); provided that
the Interest Accrual Period immediately preceding the Quarterly Payment Date on which the last payment on the Notes of Series
2020-2 Class M-2 is to be made will end on such Quarterly Payment Date. Interest with respect to the Notes (and interest on any
defaulted payments of interest or principal) will be computed on the basis of a 360-day year consisting of twelve 30-day months.
In addition, under the circumstances set forth in the Indenture, the Issuer shall also pay additional interest on this Note at
the Series 2020-2 Class M-2 Quarterly Post-ARD Additional Interest Rate applicable to such Series 2020-2 Class M-2 Notes, and
such interest shall be computed and shall be payable in the amounts and at the times set forth in the Indenture.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

The
principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall
be applied as provided in the Indenture.

 

This
Note is subject to mandatory and optional prepayment as set forth in the Indenture.

 

Interests
in this Note are exchangeable or transferable in whole or in part for interests in a Temporary Regulation S Global Note or a Permanent
Regulation S Global Note; provided that such transfer or exchange complies with the applicable provisions of the Indenture
relating to the transfer of the Notes. Additionally, interests in this Note in certain circumstances may be exchangeable or transferable
in whole but not in part for duly executed and issued registered Definitive Notes; provided that such transfer or exchange
complies with Section 2.8 of the Base Indenture and Section 4.2 of the Series 2020-2 Supplement.

 

Reference
is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Note. Although a summary of certain provisions of the Indenture is set forth below and on the reverse
hereof and made a part hereof, this Note does not purport to summarize the Indenture and reference is made to the Indenture for
information with respect to the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Issuer and the Trustee. A copy of the Indenture may be requested from the Trustee by writing to
the Trustee at: UMB Bank, N.A., 100 William Street, Suite 1850, New York, NY 10038, Attention: Michele Voon – FAT Brands
Royalty I, LLC. To the extent not defined herein, the capitalized terms used herein have the meanings ascribed to them in the
Indenture.

 

Subject
to the next following paragraph, the Issuer hereby certifies and declares that all acts, conditions and things required to be
done and performed and to have happened prior to the creation of this Note and to constitute it as the valid obligation of the
Issuer enforceable in accordance with its terms have been done and performed and have happened in due compliance with all applicable
laws and in accordance with the terms of the Indenture.

 

Unless
the certificate of authentication hereon has been executed by the Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

[Remainder
of page intentionally left blank]

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

IN
WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer.

 

	Date:	_________________	 	 
	 	 	 	 
	 	 	 	FAT
    BRANDS ROYALTY I, LLC, as Issuer
	 	 	 	 
	 	 	 	By:	 FAT Brands Inc.
	 	 	 	Its: 	Manager
	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 Andrew A. Wiederhorn
	 	 	 	Title:	Chief Executive Officer

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

CERTIFICATE
OF AUTHENTICATION

 

This
is one of the Series 2020-2 Class M-2 Notes issued under the within-mentioned Indenture.

 

	 	UMB
    BANK, N.A., as Trustee
	 	 
	 	By:	 
	 	 	Authorized
    Signatory

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

[REVERSE
OF NOTE]

 

This
Note is one of a duly authorized issue of Series 2020-2 Class M-2 Notes of the Issuer designated as the Series 2020-2 9.75% Fixed
Rate Subordinated Secured Notes, Class M-2 (herein called the “Series 2020-2 Class M-2 Notes”), all issued
under (i) the Base Indenture, dated as of March 6, 2020 (such Base Indenture, as amended by Supplement Number One, dated September
21, 2020, among the Issuer and the Trustee (as defined herein) and as may be further amended or modified, is herein called the
“Base Indenture”), among the Issuer and UMB Bank, N.A., as trustee and securities intermediary (the “Trustee”,
which term includes any successor Trustee under the Base Indenture), and (ii) a Series 2020-2 Supplement to the Base Indenture,
dated as of September 21, 2020 (the “Series 2020-2 Supplement”), among the Issuer and the Trustee. The Base
Indenture and the Series 2020-2 Supplement collectively are referred to herein as the “Indenture”. The Series
2020-2 Class M-2 Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture,
as supplemented, modified or amended, shall have the meanings assigned to them in or pursuant to the Indenture, as so supplemented,
modified or amended.

 

The
Series 2020-2 Class M-2 Notes are and will be secured by the Collateral pledged as security therefor as provided in the Indenture.

 

The
Notes will be issued in minimum denominations of $1,000,000.00 and integral multiples of $1,000 in excess thereof.

 

As
provided for in the Indenture, the Series 2020-2 Class M-2 Notes may be prepaid, in whole or in part, at the option of the Issuer.
In addition, the Series 2020-2 Class M-2 Notes are subject to mandatory prepayment as provided for in the Indenture. As described
above, the entire unpaid principal amount of this Note shall be due and payable on the Series 2020-2 Class M-2 Legal Final Maturity
Date. All payments of principal of the Series 2020-2 Class M-2 Notes will be made pro rata to the Series 2020-2 Class M-2 Noteholders
entitled thereto.

 

Principal
of and interest on this Note which is payable on a Quarterly Payment Date, Series 2020-2 Class M-2 Note Prepayment Date, or on
any date on which payments are permitted to be made as provided for in the Indenture shall be paid to the Person in whose name
this Note (or one or more predecessor Notes) is registered at the close of business on the applicable Record Date or Prepayment
Record Date, as the case may be.

 

Interest
and additional interest, if any, will each accrue on the Series 2020-2 Class M-2 Notes at the rates set forth in the Indenture.
The interest and additional interest, if any, will be computed on the basis set forth in the Indenture. The amount of interest
payable on the Series 2020-2 Class M-2 Notes on each Quarterly Payment Date will be calculated as set forth in the Indenture.

 

Payments
of principal and interest on this Note are subordinated to the payment of certain other amounts in accordance with the Priority
of Payments.

 

If
an Event of Default shall occur and be continuing, this Note may become or be declared due and payable in the manner and with
the effect provided in the Indenture.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Amounts
payable in respect of this Note shall be made by wire transfer of immediately available funds to the account designated by DTC
or its nominee.

 

As
provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on
the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant
to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Trustee, the
Issuer and the Note Registrar duly executed by, the Series 2020-2 Class M-2 Noteholder hereof or its attorney duly authorized
in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the
Note Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and accompanied by such other documents as
the Trustee and the Note Registrar may require and as may be required by the Series 2020-2 Supplement, and thereupon one or more
new Series 2020-2 Class M-2 Notes of authorized denominations in the same aggregate principal amount will be issued to the designated
transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.

 

Each
Series 2020-2 Class M-2 Noteholder, by acceptance of a Series 2020-2 Class M-2 Note, covenants and agrees by accepting the benefits
of the Indenture that prior to the date that is one year and one day after the payment in full of the latest maturing note issued
under the Indenture, such Series 2020-2 Class M-2 Noteholder will not institute against, or join with any other Person in instituting
against, any Securitization Entity any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any federal or state bankruptcy or similar law; provided, however, that nothing herein shall
constitute a waiver of any right to indemnification, reimbursement or other payment from the Securitization Entities pursuant
to the Indenture or any other Transaction Document.

 

It
is the intent of the Issuer and each Series 2020-2 Class M-2 Noteholder that, for federal, state, local income and franchise tax
purposes only, the Series 2020-2 Class M-2 Notes will evidence indebtedness of the Issuer secured by the Collateral. Each Series
2020-2 Class M-2 Noteholder, by the acceptance of this Note, agrees to treat this Note (or beneficial interests herein) for all
purposes of federal, state, local income or franchise taxes and any other tax imposed on or measured by income, as indebtedness
of the Issuer or, if the Issuer is treated as a division of another entity, such other entity.

 

The
Indenture permits certain amendments to be made thereto without the consent of the Control Party, the Controlling Class Representative
or any Series 2020-2 Class M-2 Noteholders, provided that certain conditions precedent are satisfied. The Indenture also permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer
and the rights of the Series 2020-2 Class M-2 Noteholders under the Indenture at any time by the Issuer with the consent of the
Control Party (acting at the direction of the Controlling Class Representative) and without the consent of any Series 2020-2 Class
M-2 Noteholders. The Indenture also contains provisions permitting the Control Party (acting at the direction of the Controlling
Class Representative) to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences without the consent of any Series 2020-2 Class M-2 Noteholders. Any such consent or waiver
of this Note (or any one or more predecessor Notes) shall be conclusive and binding upon such Series 2020-2 Class M-2 Noteholder
and upon all future Series 2020-2 Class M-2 Noteholders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Each
purchaser or transferee of this Note (or any interest herein) shall be deemed to represent and warrant that either (i) it is neither
a Plan (including, without limitation, an entity whose underlying assets include “plan assets” by reason of a Plan’s
investment in the entity or otherwise) nor a governmental, church, non-U.S. or other plan which is subject to any federal, state,
local or non-U.S. law that is similar to the provisions of Section 406 of ERISA or Section 4975 of the Code or (ii) its acquisition,
holding and disposition of this Note (or any interest herein) will not constitute a non-exempt prohibited transaction under Section
406 of ERISA or Section 4975 of the Code or, in the case of a governmental, church, non-U.S. or other plan, a non-exempt violation
under any federal, state, local or non-U.S. law that is similar to the provisions of Section 406 of ERISA or Section 4975 of the
Code.

 

The
term “Issuer” as used in this Note includes any successor to the Issuer.

 

The
Series 2020-2 Class M-2 Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain
limitations set forth therein.

 

This
Note and the Indenture shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York
without regard to conflicts of law principles (other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State
of New York), and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance
with such laws.

 

No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and
in the coin or currency herein prescribed.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

ASSIGNMENT

 

Social
Security or taxpayer I.D. or other identifying number of assignee: __________________

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

	 
	(name
    and address of assignee)

 

the
within Note and all rights thereunder, and hereby irrevocably constitutes and appoints ______________, attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the premises.

 

	Dated:	_____________________	 	 	 
	 	 	 	 	 
	 	 	 	By:	 1
	 	 	 	 	 
	 	 	 	 	Signature
    Guaranteed:
	 	 	 	 	 
	 	 	 	 	 

 

 

 

1
NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of
the within Note, without alteration, enlargement or any change whatsoever.

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

SCHEDULE
OF EXCHANGES IN RULE 144A GLOBAL SERIES 2020-2

CLASS
M-2 NOTE

 

The
initial principal balance of this Rule 144A Global Series 2020-2 Class M-2 Note is $40,000,000.00. The following exchanges of
an interest in this Rule 144A Global Series 2020-2 Class M-2 Note for an interest in a corresponding Temporary Regulation S Global
Series 2020-2 Class M-2 Note or a Permanent Regulation S Global Series 2020-2 Class M-2 Note have been made:

 

	Date	 	Amount of Increase (or
 Decrease) in the Principal
 Amount of this Rule 144A
 Global Note	 	Remaining Principal 
Amount of this Rule
 144A 
Global Note following the 
Increase or Decrease	 	Signature of Authorized
 Officer of Trustee or
 Note
 Registrar
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
A-2

 

Form
of Temporary Regulation S Global Note

 

 (Attached.)

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
A-3

 

Form
of Permanent Regulation S Global Note

 

 (Attached.)

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
B-1

 

Form
of Transfer Certificate

(Rule
144A Global Note to Temporary Regulation S Global Note)

 

 (Attached.)

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
B-2

 

Form
of Transfer Certificate

(Rule
144A Global Note to Permanent Regulation S Global Note)

 

 (Attached.)

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
B-3

 

Form
of Transfer Certificate

(Regulation
S Global Note to Rule 144A Global Note)

 

 (Attached.)

 

    	 

     

    

 

Exhibits
to Series 2020-2 Supplement

 

Exhibit
C

 

Form
of Quarterly Noteholders’ Report

 

 (Attached.)Exhibit 4.3 

FAT
BRANDS ROYALTY I, LLC,

as
Issuer

and

UMB
BANK, N.A.,

as
Trustee

 

SUPPLEMENT
NUMBER ONE

 

Dated
as of September 21, 2020

to

BASE
INDENTURE

Dated
as of March 6, 2020

 

SUPPLEMENT,
dated as of September 21, 2020 (this “Supplement”) by and among FAT BRANDS ROYALTY I, LLC (the “Issuer”),
and UMB Bank, N.A., as trustee (in such capacity, the “Trustee”), to the Base Indenture, dated as of March 6, 2020
(as may be further amended, amended and restated, modified or supplemented from time to time, exclusive of Series Supplements,
the “Base Indenture”), by and among the Issuer and UMB Bank, N.A., as Trustee and as Securities Intermediary.

 

PRELIMINARY
STATEMENT

 

WHEREAS,
Sections 9.7, 13.2 and 13.3 of the Base Indenture provide, among other things, that the provisions of the Base Indenture, any
Supplement and any other Indenture Document to which the Trustee is a party (unless otherwise provided in such Supplement) may
from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing in a Supplement and
consented to in writing by the Control Party (acting at the direction of the Controlling Class Representative);

 

WHEREAS,
the Issuer wishes to enter into this Supplement to amend certain provisions of the Base Indenture; and

 

WHEREAS,
all conditions to such amendment have been met or waived by the Control Party (as directed by the Controlling Class Representative);

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.
Amendments. The following provisions of the Base Indenture are hereby amended as follows:

 

(a)
Section 5.9(b)(iv) of the Base Indenture shall be deleted and replaced in its entirety as follows:

 

“(iv)
on a monthly basis at or prior to 10:00 a.m. (New York City time) on each Monthly Allocation Date, or on such other date for the
withdrawal of funds from the Concentration Account to the Collection Account specified in an Account Control Agreement approved
by the Control Party (which such date the Issuer confirms shall in any event be prior to the applicable Monthly Allocation Date),
all Retained Collections with respect to the preceding Monthly Collection Period then on deposit in the Concentration Account
to the Collection Account (which, for the avoidance of doubt, will include any Investment Income with respect thereto) for application
to make payments and deposits in the order of priority set forth in the Priority of Payments.”

 

    	 

     

    

 

(b)
Section 7.12(c) of the Base Indenture shall be deleted and replaced in its entirety as follows:

 

“(c)
The Issuer has no subsidiaries and owns no Equity Interests in any other Person, other than the Franchise Entities and any Additional
Franchise Entities. The Franchise Entities have no subsidiaries and own no Equity Interests in any other Person.”

 

(c)
Section 8.34(a) of the Base Indenture shall be deleted and replaced in its entirety as follows:

 

“(a)
The Issuer, in accordance with and as permitted under the Transaction Documents, may purchase, acquire, form or cause to be formed
one or more Additional Franchise Entities without the consent of the Control Party; provided that any such Additional Franchise
Entity is a Delaware limited liability company or a Delaware corporation (so long as the use of such corporate form is reasonably
satisfactory to the Control Party) and has adopted, or substantially contemporaneously with the closing of an applicable transaction
pursuant to which such Additional Franchise Entity is purchased, acquired or otherwise designated as an Additional Franchise Entity
hereunder, will adopt, Charter Documents substantially similar to the Charter Documents of the Franchise Entities that were Delaware
limited liability companies or Delaware corporations, as applicable, as in existence on the Closing Date; provided, further,
that such Additional Franchise Entity holds Franchise Assets or is being established, purchased or acquired in order to act as
a franchisor with respect to new Franchise Agreements.”

 

(d)
Exhibit A, “Form of Monthly Manager’s Certificate,” shall be deleted and replaced with the Monthly Manager’s
Certificate attached hereto as Annex 1.

 

2.
Definitions. All capitalized terms not otherwise defined herein, shall have the meanings assigned thereto in the Base Indenture
and the Base Indenture Definitions List attached as Annex A thereto, as such definitions may be amended, supplemented or otherwise
modified from time to time in accordance with the terms of the Base Indenture.

 

3.
Ratification of Base Indenture. As supplemented by the Series 2020-1 Supplement, this Supplement, and the Series 2020-2
Supplement, the Base Indenture is in all respects ratified and confirmed and the Base Indenture as so supplemented by the Series
2020-1 Supplement, this Supplement, and the Series 2020-2 Supplement, shall be read, taken and construed as one and the same instrument.

 

    	 

     

    

 

4.
Counterparts. This Supplement may be executed in any number of counterparts, each of which so executed shall be deemed
to be an original, but all of such counterparts shall together constitute but one and the same instrument.

 

5.
Governing Law. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK).

 

6.
Amendments. This Supplement may not be modified or amended except in accordance with the terms of the Base Indenture.

 

7.
Entire Agreement. This Supplement, the Series 2020-1 Supplement, the Series 2020-2 Supplement, and the related Indenture
Documents, contains a final and complete integration of all prior expressions by the parties hereto with respect to the subject
matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding
all previous oral statements and other writings with respect thereto.

 

8.
Trustee. The Trustee assumes no responsibility for the correctness of the recitals contained herein, which shall be taken as the
statements of the Issuer, and the Trustee shall not be responsible or accountable in any way whatsoever for or with respect to
the validity, execution or sufficiency of this Supplement and makes no representation with respect thereto.

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Issuer and the Trustee have caused this Supplement to the Base Indenture to be duly executed by its respective
duly authorized officer as of the day and year first written above.

 

	 	FAT
    BRANDS ROYALTY I, LLC as the
	 	 
	 	Issuer
	 	By:	FAT
    Brands Inc.
	 	Its:	Manager
	 	 	 
	 	By:	/s/
    Andrew A. Wiederhorn
	 	Name:
    	Andrew
    A. Wiederhorn
	 	Title:
    	Chief
    Executive Officer
	 	 
	 	UMB
    Bank, N.A., in its capacity as Trustee
	 	 
	 	By:
    	/s/
    Michele Voon
	 	Name:
    	Michel
    Voon
	 	Title:
    	Vice
    President

 

    	 

     

    

 

CONSENT
OF CONTROL PARTY:

 

The
undersigned, as Control Party, hereby consents to the execution and delivery of this Supplement by the parties hereto, and as
Control Party hereby directs the Trustee to execute and deliver this Supplement.

 

CITADEL
SPV LLC, in its capacity as Control Party

 

	By:	/s/
    Orlando Figueroa	 
	Name:	 Orlando Figueroa 	 
	Title:	 Senior Managing Director	 

 

    	 

     

    

 

Annex
1

 

[See
attached]

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