Document:

Exhibit 10.2

 

MANAGEMENT AGREEMENT 

 

Dated as of March 6, 2020

 

by and among

 

FAT BRANDS ROYALTY I, LLC, as Issuer,

 

THE OTHER SECURITIZATION ENTITIES PARTY

HERETO FROM TIME TO TIME,

 

FAT BRANDS INC., as the Manager,

 

and

 

UMB BANK, N.A., as the Trustee

 

    	 

     

    

 

	 	Page
	 	 
	Article I DEFINITIONS	2
	Section 1.1	Certain Definitions	10
	Section 1.2	Other Defined Terms	11
	Section 1.3	Other Terms	11
	Section 1.4	Computation of Time Periods	11
	Article II ADMINISTRATION AND SERVICING OF MANAGED ASSETS	11
	Section 2.1	Manager to Act as Manager	11
	Section 2.2	Accounts	13
	Section 2.3	Records	15
	Section 2.4	Administrative Duties of Manager	15
	Section 2.5	No Offset	17
	Section 2.6	Compensation and Expenses	17
	Section 2.7	Indemnification	17
	Section 2.8	Nonpetition Covenant	19
	Section 2.9	Franchisor Consent	19
	Section 2.10	Appointment of Sub-managers	19
	Section 2.11	Insurance/Condemnation Proceeds	19
	Section 2.12	Permitted Asset Dispositions	20
	Section 2.13	Manager Advances	20
	Section 2.14	Product Sourcing Advances	20
	Article III STATEMENTS AND REPORTS	20
	Section 3.1	Reporting by the Manager	20
	Section 3.2	Appointment of Independent Auditor	19
	Section 3.3	Annual Accountants’ Reports	19
	Section 3.4	Available Information	20

 

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TABLE OF CONTENTS CONTINUED

 

	 	Page
	 	 
	Article IV THE MANAGER	20
	Section 4.1	Representations and Warranties Concerning the Manager	20
	Section 4.2	Existence; Status as Manager	25
	Section 4.3	Performance of Obligations	25
	Section 4.4	Merger and Resignation	28
	Section 4.5	Notice of Certain Events	30
	Section 4.6	Capitalization	30
	Section 4.7	Maintenance of Separateness	30
	Article V ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS	31
	Section 5.1	Representations and Warranties Made in Respect of New Assets	31
	Section 5.2	Assets Acquired After the Closing Date	32
	Section 5.3	Securitization IP	33
	Section 5.4	Restrictions on Liens	33
	Article VI MANAGER TERMINATION EVENTS	33
	Section 6.1	Manager Termination Events	33
	Section 6.2	Manager Termination Event Remedies	35
	Section 6.3	Manager’s Transitional Role	35
	Section 6.4	Intellectual Property	36
	Section 6.5	Section 6	36
	Section 6.6	No Effect on Other Parties	36
	Section 6.7	Rights Cumulative	37
	Article VII CONFIDENTIALITY	37
	Section 7.1	Confidentiality	37
	Article VIII MISCELLANEOUS PROVISIONS	38
	Section 8.1	Termination of Agreement	38
	Section 8.2	Survival	38
	Section 8.3	Amendment	38

 

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TABLE OF CONTENTS CONTINUED

 

	 	Page
	 	 
	Section 8.4	Governing Law	39
	Section 8.5	Notices	39
	Section 8.6	Acknowledgement	39
	Section 8.7	Severability of Provisions	39
	Section 8.8	Delivery Dates	40
	Section 8.9	Limited Recourse	40
	Section 8.10	Binding Effect; Assignment; Third Party Beneficiaries	40
	Section 8.11	Article and Section Headings	40
	Section 8.12	Concerning the Trustee	40
	Section 8.13	Counterparts	40
	Section 8.14	Entire Agreement	40
	Section 8.15	Waiver of Jury Trial; Jurisdiction; Consent to Service of Process	40
	Section 8.16	Joinder of New Franchise Entities	40
	Section 8.17	Amendment and Restatement	40

 

Exhibit A – Power of Attorney

Exhibit B – Joinder Agreement

 

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MANAGEMENT
AGREEMENT

 

This
MANAGEMENT AGREEMENT, dated as of March 6, 2020 (the “Effective Date”) (as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”),
is entered into by and among the following parties:

 

	 	a)	FAT
    Brands Royalty I, LLC, a Delaware limited liability company (together with its successors and assigns, the “Issuer”);

 

	 	b)	each
    of (i) Fatburger North America, Inc., a Delaware corporation, (ii) Buffalo’s Franchise Concepts, Inc., a Delaware corporation,
    (iii) Bonanza Restaurant Company LLC, a Delaware limited liability company, (iv) Ponderosa Franchising Company LLC, a Delaware
    limited liability company, (v) Ponderosa International Development, Inc., a Delaware limited liability company, (vi) Puerto
    Rico Ponderosa, Inc., a Delaware limited liability company, (vii) Hurricane AMT, LLC, a Delaware limited liability company,
    (viii) Yalla Mediterranean Franchising, LLC, a Delaware limited liability company, and (ix) EB Franchises, LLC, a Delaware
    limited liability company, and each Additional Franchise Entity that may join this Agreement pursuant to Section 8.16
    hereof (each, a “Franchise Entity” and together with their respective successors and assigns,
    the “Franchise Entities” and, together with the Issuer, the “Securitization Entities”);

 

	 	c)	FAT
    Brands Inc., a Delaware corporation, as Manager (in its individual capacity and as Manager, together with its successors and
    assigns, the “Manager”);

 

	 	d)	UMB
    Bank, N.A., not in its individual capacity but solely as the indenture trustee (together with its successor and assigns, the
    “Trustee”); and

 

	 	e)	consented
    to by Citadel SPV LLC, as Control Party, and Vervent Inc., as Back-Up Manager.

 

Capitalized
terms used herein but not otherwise defined herein shall have the meanings assigned to such terms or incorporated by reference
in Annex A to the Base Indenture (as defined below).

 

RECITALS

 

WHEREAS,
the Issuer has entered into the Base Indenture, dated as of the Closing Date, with the Trustee (together with the Series Supplements
thereto, and as the same may be amended, restated, supplemented, or otherwise modified from time to time in accordance with the
terms thereof, the “Indenture” or the “Base Indenture”), pursuant to which
the Issuer issued the Series 2020-1 Class A-2 Notes and the Series 2020-1 Class B-2 Notes, and may issue additional series of
notes from time to time (collectively, the “Notes”) on the terms described therein;

 

WHEREAS,
the Issuer has granted to the Trustee on behalf of the Secured Parties a Lien in the Collateral owned by it pursuant to the terms
of the Indenture;

 

WHEREAS,
from and after the Closing Date, all New Assets have been and will continue to be originated by the Securitization Entities;

 

WHEREAS,
each of the Securitization Entities desires to enter into this Agreement to provide for, among other things, the managing of the
respective rights, powers, duties and obligations of the Securitization Entities under or in connection with the Contribution
Agreement, the Franchise Assets, the Securitization IP, the Real Estate Assets and the Product Sourcing Assets and each Securitization
Entity’s equity interests in each other Securitization Entity owned by it and in connection with any other assets acquired
by or transferred to the Securitization Entities (collectively, the “Managed Assets”), and to enforce
such Securitization Entity’s rights and powers and perform such Securitization Entity’s duties and obligations under
the Managed Documents (as defined below) and the Transaction Documents to which it is party, all in accordance with the Managing
Standard (as defined below);

 

    	 

     

    

 

WHEREAS,
each of the Franchise Entities desires to appoint the Manager as its agent for providing comprehensive Intellectual Property services,
including filing for registration, clearance, maintenance, protection, enforcement, licensing, and recording transfers of the
Securitization IP in accordance with the Managing Standard and as provided in Section 2.1(c) and Section 4.3(b);
and

 

WHEREAS,
the Manager desires to enforce such rights and powers and perform such obligations and duties, all in accordance with the Managing
Standard.

 

NOW
THEREFORE, in consideration of the premises and the mutual agreements hereinafter set forth, the parties hereto agree as follows:

 

Article
I

DEFINITIONS

 

Section
1.1 Certain Definitions.
For all purposes of this Agreement, capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed
thereto in Annex A to the Base Indenture. In addition, the following terms shall have the following meanings:

 

“Advertising
Fees” has the meaning set forth in Section 2.2(d).

 

“Advertising
Fund Accounts” has the meaning set forth in Section 2.2(d).

 

“After-Acquired
Securitization IP” means all Securitization IP acquired or developed by FAT Brands or its direct or indirect Subsidiaries
after the Closing Date.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Advertising
Fees” has the meaning set forth in Section 2.2(d).

 

“Advertising
Fund Account” has the meaning set forth in Section 2.2(d).

 

“Change
in Management” will occur if more than 50% of the Leadership Team is terminated and/or resigns within 12 months
after the date of the occurrence of a Change of Control; provided, in each case, that termination and/or resignation of such officer
will not include (i) a change in such officer’s status in the ordinary course of succession so long as such officer remains
affiliated with the Manager or its Subsidiaries as an officer or director, or in a similar capacity, (ii) retirement of any officer
or (iii) death or incapacitation of any officer.

 

“Change
of Control” means an event or series of events by which:

 

(a)
individuals who on the Closing Date constituted
the Board of Directors of the Manager, together with any new directors whose election by the Board of Directors or whose nomination
for election by the equity holders of the Manager was approved by a majority of the directors then still in office who were either
directors or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority
of the Board of Directors of the Manager then in office; or

 

(b)
any “person” or “group”
(as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner”
(as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50% of the total voting power
of the issued and outstanding voting stock of the Manager, and was not the beneficial owner, directly or indirectly, of more than
50% of the total voting power of the issued and outstanding voting stock of the Manager or its parent company, Fog Cutter Capital
Group, Inc., as of the Effective Date.

 

    	2

     

    

 

For
purposes of this definition, a Person shall not be deemed to have beneficial ownership of voting power of voting stock subject
to a stock purchase agreement, merger agreement or similar agreement until the consummation of the transactions contemplated by
such agreement.

 

“Company
Restaurant(s)” means any Branded Restaurant(s) that are owned and operated by one or more Non-Securitization Entity,
including Branded Restaurants that a Non-Securitization Entity reacquires from Franchisees from time to time until they can be
refranchised.

 

“Company
Restaurant Licenses” means any IP license granted by a Franchise Entity with respect to a Company Restaurant.

 

“Confidential
Information” means trade secrets and other information (including know how, ideas, techniques, recipes, formulas,
customer lists, customer information, financial information, business methods and processes, marketing plans, specifications,
and other similar information as well as internal materials prepared by the owner of such information containing or based, in
whole or in part, on any such information) that is confidential and proprietary to its owner and that is disclosed by one party
to an agreement to another party thereto whether in writing or disclosed orally, and whether or not designated as confidential.

 

“Contributed
Franchise Agreements” means all Franchise Agreements and related guaranty agreements existing as of the Closing
Date that are contributed to a Securitization Entity on the Closing Date pursuant to the Contribution Agreement.

 

“Contributed
Franchised Restaurant Business” means the business of franchising or licensing Branded Restaurants located throughout
the world, the manufacturing and sale of Proprietary Products for use at Branded Restaurants throughout the world and the provision
of ancillary goods and services in connection therewith. For the avoidance of doubt, the Contributed Franchised Restaurant Business
does not include any Company Restaurants.

 

“Contributed
Franchised Restaurants” means the Branded Restaurants that are owned and operated by Franchisees or a sub-franchisee
thereof that are unaffiliated with the Manager and its Affiliates pursuant to a Franchise Agreement that is contributed to a Securitization
Entity on the Closing Date pursuant to the Contribution Agreement.

 

“Contributed
Product Sourcing Agreement” means all Product Sourcing Agreements and all related guarantees existing as of the
Closing Date that are contributed to a Securitization Entity on the Closing Date pursuant to the Contribution Agreement.

 

“Current
Practice” means, in respect of any action or inaction, the practices, standards and procedures of the Securitization
Entities or the Manager on their behalf as performed since the Closing Date.

 

“Defective
New Asset” means any New Asset that does not satisfy the applicable representations and warranties of ARTICLE
V hereof on the New Asset Addition Date for such New Asset.

 

“Discloser”
has the meaning set forth in Section 7.1.

 

“Disentanglement”
has the meaning set forth in Section 6.3(a).

 

“Disentanglement
Period” has the meaning set forth in Section 6.3(c).

 

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“Employee
Benefit Plan” means any “employee benefit plan,” as such term is defined in Section 3(3) of ERISA, established,
maintained or contributed to by the Manager, or with respect to which the Manager has any liability.

 

“Franchise
Entities” has the meaning set forth in the preamble.

 

“Franchised
Restaurants” means, collectively, the Contributed Franchised Restaurants and the New Franchised Restaurants.

 

“Indemnitee”
has the meaning set forth in Section 2.7(a).

 

“Indenture”
has the meaning set forth in the recitals.

 

“Independent
Auditors” has the meaning set forth in Section 3.2.

 

“IP
License Agreement” means any license to or for the use of Intellectual Property to which a Franchise Entity is a
party.

 

“IP
Services” means (i) performing and exercising each Franchise Entity’s rights and obligations under any IP
License Agreement, and any other agreements pursuant to which each Franchise Entity licenses the use of any Securitization IP;
and (ii) acquiring, developing, managing, maintaining, protecting, enforcing, defending, licensing, sublicensing and undertaking
such duties and services as may be necessary in connection with the Securitization IP and other Intellectual Property owned or
held by each Franchise Entity, in each case in accordance with and subject to the terms of this Agreement (including the Managing
Standard, unless a Franchise Entity determines, in its sole discretion, that additional action is necessary or desirable in furtherance
of the protection of the Securitization IP, in which case the Manager shall perform such IP Services and additional related services
as are reasonably requested by such Franchise Entity), the Indenture, the other Transaction Documents and the Managed Documents,
as agent for the Franchise Entities, including the following activities: (a) searching, screening and clearing After-Acquired
Securitization IP to assess patentability, registrability, and the risk of potential infringement; (b) filing, prosecuting and
maintaining applications and registrations for the Securitization IP in the applicable Franchise Entity’s name throughout
the world, including timely filing of evidence of use, applications for renewal and affidavits of use and/or incontestability,
timely paying of all registration and maintenance fees, responding to third- party oppositions of applications or challenges to
registrations, and responding to any office actions, reexaminations, interferences inter partes reviews, post grant reviews, or
other office or examiner requests, reviews, or requirements; (c) monitoring third-party use and registration of Trademarks and
taking actions the Manager deems appropriate to oppose or contest the use and any application or registration for Trademarks that
could reasonably be expected to infringe, dilute or otherwise violate the Securitization IP or the applicable Franchise Entity’s
rights therein; (d) confirming each Franchise Entity’s legal title in and to any or all of the Securitization IP, including
obtaining written assignments of Securitization IP to the applicable Franchise Entity and recording transfers of title in the
appropriate intellectual property registry throughout the world; (e) with respect to each Franchise Entity’s rights and
obligations under the IP License Agreements and any Transaction Documents, monitoring the licensee’s use of each licensed
Trademark and the quality of its goods and services offered in connection with such Trademarks, rendering any approvals (or disapprovals)
that are required under the applicable license agreement(s), and employing reasonable means to ensure that any use of any such
Trademarks by any such licensee satisfies the quality control standards and usage provisions of the applicable license agreement;
(f) protecting, policing, and, in the event that the Manager becomes aware of any unlicensed copying, imitation, infringement,
dilution, misappropriation, unauthorized use or other violation of the Securitization IP, or any portion thereof, enforcing such
Securitization IP, including, (i) preparing and responding to cease-and-desist, demand and notice letters, and requests for a
license; and (ii) commencing, prosecuting and/or resolving claims or suits involving imitation, infringement, dilution, misappropriation,
the unauthorized use or other violation of the Securitization IP, and seeking monetary and equitable remedies as the Manager deems
appropriate in connection therewith; provided that each Franchise Entity shall, and agrees to, join as a party to any such suits
to the extent necessary to maintain standing; (g) performing such functions and duties, and preparing and filing such documents,
as are required under the Indenture or any other Transaction Document to be performed, prepared and/or filed by the applicable
Franchise Entity, including (i) executing and recording such financing statements (including continuation statements) or amendments
thereof or supplements thereto or such other instruments as the Franchise Entities or the Control Party may, from time to time,
reasonably request (consistent with the obligations of the Franchise Entities to perfect the Trustee’s lien only in the
United States) in connection with the security interests in the Securitization IP granted by each Franchise Entity to the Trustee
under the Transaction Documents and (ii) preparing, executing and delivering grants of security interests or any similar instruments
as the Securitization Entities or the Control Party may, from time to time, reasonably request (consistent with the obligations
of the Franchise Entities to perfect the Trustee’s lien only in the United States) that are intended to evidence such security
interests in the Securitization IP and recording such grants or other instruments with the relevant Governmental Authority including
the PTO and the United States Copyright Office; (h) taking such actions as any licensee under an IP License Agreement may request
that are required by the terms, provisions and purposes of such IP License Agreement (or by any other agreements pursuant to which
the applicable Franchise Entity licenses the use of any Securitization IP) to be taken by the applicable Franchise Entity, and
preparing (or causing to be prepared) for execution by each Franchise Entity all documents, certificates and other filings as
each Franchise Entity shall be required to prepare and/or file under the terms of such IP License Agreements (or such other agreements);
(i) paying or causing to be paid or discharged, from funds of the Securitization Entities, any and all taxes, charges and assessments
that may be levied, assessed or imposed upon any of the Securitization IP or contesting the same in good faith; (j) obtaining
licenses of third party Intellectual Property for use and sublicense in connection with the Contributed Franchised Restaurant
Business and the other assets of the Securitization Entities; (k) sublicensing the Securitization IP to suppliers, manufacturers,
advertisers and other service providers in connection with the provision of products and services for use in the Contributed Franchised
Restaurant Business; and (l) with respect to Trade Secrets and other confidential information of each Franchise Entity, taking
all reasonable measures to maintain confidentiality and to prevent non-confidential disclosures.

 

    	4

     

    

 

“Leadership
Team” means the persons holding the following offices immediately prior to the date of the occurrence of a Change
of Control: Chief Executive Officer, Chief Financial Officer, Chief Marketing Officer, or any other position that contains substantially
the same responsibilities as of any of the positions listed above.

 

“Managed
Assets” has the meaning set forth in the recitals.

 

“Managed
Document” means any contract, agreement, arrangement or undertaking relating to any of the Managed Assets, including
the Contribution Agreement, the Franchise Documents, the Product Sourcing Documents and the IP License Agreements.

 

“Manager”
means Manager, in its capacity as manager hereunder, unless a successor Person shall have become the Manager pursuant to the applicable
provisions of the Indenture and this Agreement, and thereafter “Manager” shall mean such successor Person.

 

“Manager
Advance” means any advance of funds made by the Manager to, or on behalf of, a Securitization Entity in connection
with the operation of the Contributed Franchised Restaurant Business and other Managed Assets.

 

“Manager-Developed
IP” means all Intellectual Property (other than Excluded IP) created, developed, authored, acquired or owned by
or on behalf of the Manager and related to (i) any of the Brands, (ii) products or services sold or distributed under any of the
Brands, (iii) the FAT Brands Systems, or (iv) the Contributed Franchise Restaurant Business.

 

    	5

     

    

 

“Manager
Termination Event” has the meaning set forth in Section 6.1(a).

 

“Managing
Standard” means standards that (a) are consistent with Current Practice or, to the extent of changed circumstances,
practices, technologies, strategies or implementation methods, consistent with the standards as the Manager would implement or
observe if the Managed Assets were owned by the Manager at such time; (b) are consistent with Ongoing Practice; (c) will enable
the Manager to comply in all material respects with all of the duties and obligations of the Securitization Entities under the
Transaction Documents and the Managed Documents; (d) are in material compliance with all applicable Requirements of Law; and (e)
with respect to the use and maintenance of the Franchise Entities’ rights in and to the Securitization IP, are consistent
with the standards imposed by the IP License Agreements.

 

“Monthly
Management Fee” means, with respect to each Monthly Allocation Date, the amount of $200,000, subject to successive
three percent (3%) annual increases beginning on the first Monthly Allocation Date in 2020.

 

“New
Asset” means a New Franchise Agreement, a New Development Agreement, a New Real Estate Asset or a New Product Sourcing
Agreement or any other Managed Asset contributed or otherwise entered into or acquired by the Securitization Entities after the
Closing Date.

 

“New
Asset Addition Date” means, with respect to any New Asset, the earliest of (i) the date on which such New Asset
is acquired by the applicable Securitization Entity, (ii) the later of (a) the date upon which the closing occurs under the applicable
contract giving rise to such New Asset and (b) the date upon which all of the diligence contingencies, if any, in the contract
for purchase of the applicable New Asset expire and the Securitization Entity acquiring such New Asset no longer has the right
to cancel such contract and (iii) if such New Asset is a New Franchise Agreement or New Development Agreement, the date on which
the related Franchise Entity begins receiving payments from the applicable Franchisee in respect of such New Asset and (iv) if
such New Asset is a New Product Sourcing Agreement, the date on which such New Product Sourcing Agreement becomes effective in
accordance with the terms thereof.

 

“New
Leased Real Property” has the meaning set forth in Section 5.1(d).

 

“New
Development Agreements” means all Development Agreements and related guaranty agreements entered into by a Franchise
Entity following the Closing Date.

 

“New
Franchise Agreements” means all Franchise Agreements and related guaranty agreements entered into by a Franchise
Entity following the Closing Date, in its capacity as franchisor for Branded Restaurants (including all renewals for Contributed
Franchised Restaurants).

 

“New
Franchised Restaurant Leases” means, to the extent acquired or entered into by a Franchise Entity after the Closing
Date, (i) leases from landlords unaffiliated with the Manager in respect of which a Franchise Entity is the prime lessee and a
Franchisee or other Person is the sub-lessee executed or acquired by such Franchise Entity and (ii) leases or subleases in respect
of which a Franchise Entity is the lessor or sublessor and a Franchisee or other Person is the lessee or sublessee.

 

“New
Franchised Restaurants” means the Branded Restaurants opened after the Closing Date that are owned and operated
by a Franchisee (or, in the case of a Branded Restaurant subject to an area development agreement, a sub-franchisee thereof).

 

    	6

     

    

 

“New
Owned Real Property” means real property (including the land, buildings and fixtures) that is (i) acquired in fee
after the Closing Date by a Franchise Entity or (ii) acquired in fee after the Closing Date by a Non-Securitization Entity and
contributed to a Franchise Entity pursuant to a contribution agreement in form and substance reasonably acceptable to the Control
Party.

 

“New
Real Estate Assets” means collectively, the New Owned Real Property and the New Franchised Restaurant Leases.

 

“Notes”
has the meaning set forth in the preamble.

 

“Ongoing
Practice” means, in respect of any action or inaction, practices, standards and procedures that are at least as
favorable or beneficial as the practices, standards and procedures of any Non-Securitization Entity as performed with respect
to any additional restaurant brand or restaurant concept owned or operated by such Non-Securitization Entity so long as such practices,
standards and procedures with respect to any additional restaurant brand or restaurant concept are applicable and reasonably practical
to implement with respect to the Brands.

 

“Pension
Plan” means any “employee pension benefit plan,” as such term is defined in Section 3(2) of ERISA, which
is subject to Title IV of ERISA and to which any company in the same Controlled Group as the Manager has liability, including
any liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA for any time within
the preceding five years or by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA.

 

“Post-Opening
Services” means the services required to be performed under the applicable Franchise Documents by the applicable
Securitization Entities after the initial opening of a Franchised Restaurant, in each case in accordance with and subject to the
terms of this Agreement (including, for the avoidance of doubt, the Managing Standard), the Indenture, the other Transaction Documents
and the Managed Documents, including, as may be required under the applicable Franchise Document, (a) meeting with the franchise
association for each Brand; (b) providing such Franchisee with the standards established or approved by the applicable Franchise
Entity for use of the applicable Brand; (c) establishing standards of quality, cleanliness, appearance and service at such Franchised
Restaurant; (d) collecting and administering the Advertising Fees received pursuant to the applicable Franchise Agreements and
the development of all national advertising and promotional programs for the applicable Brand and Branded Restaurants; (e) inspecting
such Franchised Restaurant; (f) providing such Franchisee with the Manager’s ongoing training programs and materials designed
for use in the Franchised Restaurants; and (g) such other post-opening services as are required to be performed under applicable
Franchise Documents; provided that “Post-Opening Services” provided by the Manager hereunder shall not include any
“add-on” type corporate services provided by Manager or any Subsidiary thereof to a Franchisee, whether pursuant to
the related Franchise Agreement or otherwise, the cost of which is not included in the royalties payable to the relevant Franchise
Entity under such Franchise Agreement, including, repairs and maintenance, gift card administration, employee training, point-of-sale
system maintenance and support and development and maintenance of restaurant-level and above-restaurant-level technology systems
and other information technology systems, including via any Franchisee supported Brand technology fund.

 

“Power
of Attorney” means the authority granted by a Securitization Entity to the Manager pursuant to a Power of Attorney
in substantially the form set forth as Exhibit A hereto.

 

    	7

     

    

 

“Pre-Opening
Services” means the services required to be performed under the applicable Franchise Documents by the applicable
Securitization Entities prior to the initial opening of a Franchised Restaurant, in each case in accordance with and subject to
the terms of this Agreement (including, for the avoidance of doubt, the Managing Standard), the Indenture, the other Transaction
Documents and the Managed Documents, including, as required under the applicable Franchise Document, (a) providing the applicable
Franchisee with standards for the design, construction, equipping and operation of such Franchised Restaurant and the approval
of locations meeting such standards; (b) providing such Franchisee with the Manager’s programs and materials designed for
use in the Franchised Restaurants; (c) providing such Franchisee with manuals, operating guidelines and similar materials, as
applicable; and (d) providing such Franchisee with such other assistance in the pre-opening, opening and initial operation of
such Franchised Restaurant, as is required to be provided under applicable Franchise Documents; provided that “Pre-Opening
Services” provided by the Manager hereunder shall not include any “add-on” type corporate services provided
by Manager or any Subsidiary thereof to a Franchisee, whether pursuant to the related Franchise Agreement or otherwise, the cost
of which is not included in the royalties payable to the relevant Franchise Entity under such Franchise Agreement, including,
repairs and maintenance, gift card administration, employee training, point-of-sale system maintenance and support and development
and maintenance of restaurant-level and above-restaurant-level technology systems and other information technology systems, including
via any Franchisee supported Brand technology fund.

 

“Product
Sourcing Advance” has the meaning ascribed to such term in Section 2.14.

 

“Product
Sourcing Agreements” means all agreements for (a) the manufacture and production of Proprietary Products and (b)
the sale of Proprietary Products to Proprietary Product Distributors.

 

“Product
Sourcing Assets” means, with respect to each Franchise Entity, (i) the Contributed Product Sourcing Agreements and
all Product Sourcing Payments hereon, (ii) the New Product Sourcing Agreements and all Product Sourcing Payments thereon; (iii)
all rights to enter into New Product Sourcing Agreements and (iv) any and all other property of every nature, now or hereafter
transferred, mortgaged, pledged, or assigned as security for payment or performance of any obligation of any Person to such Franchise
Entity under the Product Sourcing Agreements and all guarantees of such obligations and the rights evidenced by or reflected in
the Product Sourcing Agreements, in each case together with all payments, proceeds and accrued and future rights to payment thereon.

 

“Product
Sourcing Payments” means all amounts payable to a Franchise Entity by Proprietary Product Distributors with respect
to purchases of Proprietary Products.

 

“Proprietary
Product Distributor” means any distributor of Proprietary Products to Franchisees or Non-Securitization Entities.

 

“Proprietary
Products” means any product that is (a) manufactured or otherwise produced by a third-party in accordance with the
applicable Franchise Entity’s specifications, (b) purchased by such Franchise Entity from such third-party manufacturer
and (c) sold by such Franchise Entity to Proprietary Product Distributors (for distribution to Franchisees and Non-Securitization
Entities for use at Branded Restaurants).

 

“Real
Estate Services” means acquiring, developing, managing, maintaining, protecting, enforcing, defending, leasing and
undertaking such other duties and services as may be necessary in connection with the Real Estate Assets, on behalf of each Franchise
Entity, in each case in accordance with and subject to the terms of this Agreement (including, for the avoidance of doubt, the
Managing Standard), the Indenture, the other Transaction Documents and the Managed Documents, as agent for the Franchise Entities,
including the following activities: (a) the negotiation, execution and recording (as appropriate) of leases, subleases, deeds
and other contracts and agreements relating to the Real Estate Assets; (b) the management of the Real Estate Assets on behalf
of each Franchise Entity, including (i) the management of the New Owned Real Property, (ii) the enforcement and exercise of each
Franchise Entity’s rights under each lease included in the Real Estate Assets, (iii) the payment, extension, renewal, modification,
adjustment, prosecution, defense, compromise or submission to arbitration or mediation of any obligation, suit, liability, cause
of action or claim, including taxes, relating to any Real Estate Assets and (iv) the collection of any amounts payable to each
Franchise Entity under the Real Estate Assets, including rent; (c) causing each Franchise Entity to (i) acquire and enter into
agreements to acquire Real Estate Assets and (ii) sell, assign, transfer, encumber or otherwise dispose of all or any portion
of the Real Estate Assets in accordance with this Agreement and the Indenture; (d) environmental evaluation and remediation activities
on any real property owned or leased by each Franchise Entity as deemed appropriate by the Manager or as otherwise required under
applicable Requirements of Law; (e) obtaining appropriate levels of title and property insurance with respect to each parcel of
New Owned Real Property; (f) making or causing to be made all repairs and replacements to the existing improvements and the construction
of new improvements on the Real Estate Assets; (g) the employment of agents, managers, brokers or other Persons necessary or appropriate
to acquire, dispose of, maintain, own, lease, manage and operate the Real Estate Assets; (h) paying or causing to be paid any
and all taxes, charges and assessments that may be levied, assessed or imposed upon any of the Real Estate Assets or contesting
the same in good faith; and (i) all other actions or decisions relating to the acquisition, disposition, amendment, termination,
maintenance, ownership, leasing, sub-leasing, management and operation of the Real Estate Assets.

 

    	8

     

    

 

“Recipient”
has the meaning ascribed to such term in Section 7.1.

 

“Securitization
Entities” has the meaning set forth in the preamble.

 

“Services”
means the servicing and administration by the Manager of the Managed Assets, in each case in accordance with and subject to the
terms of this Agreement (including, for the avoidance of doubt, the Managing Standard), the Indenture, the other Transaction Documents
and the Managed Documents, as agent for the applicable Securitization Entity, including, without limitation: (a) calculating and
compiling information required in connection with any report or certificate to be delivered pursuant to the Transaction Documents;
(b) preparing and filing all tax returns and tax reports required to be prepared by any Securitization Entity; (c) paying or causing
to be paid or discharged, in each case from funds of the Securitization Entities, any and all taxes, charges and assessments required
to be paid under applicable Requirements of Law by any Securitization Entity; (d) performing the duties and obligations of, and
exercising and enforcing the rights of, the Securitization Entities under the Transaction Documents, including performing the
duties and obligations of each applicable Securitization Entity under the IP License Agreements; (e) taking those actions that
are required under the Transaction Documents and Requirements of Law to maintain continuous perfection (where applicable) and
priority (subject to Permitted Liens and the exclusions from perfection requirements under the Indenture) of any Securitization
Entity’s and the Trustee’s respective interests in the Collateral; (f) making or causing the collection of amounts
owing under the terms and provisions of each Managed Document and the Transaction Documents, including managing (i) the applicable
Securitization Entities’ rights and obligations under the Franchise Agreements and the Development Agreements (including
performing Pre-Opening Services and Post-Opening Services) and (ii) the right to approve amendments, waivers, modifications and
terminations of (including extensions, modifications, write-downs and write-offs of obligations owing under) Franchise Documents
and other Managed Documents (which amendments to Franchise Agreements may be effected by replacing such Franchise Agreement with
a New Franchise Agreement on the then- current form of the applicable Franchise Agreement (which New Franchise Agreement may be
executed by a different Franchise Entity than is party to such existing Franchise Agreement)) and to exercise all rights of the
applicable Securitization Entities under such Franchise Documents and other Managed Documents; (g) performing due diligence with
respect to, selecting and approving new Franchisees and providing personnel to manage the due diligence, selection and approval
process; (h) preparing New Franchise Agreements and New Development Agreements, including, among other things, adopting variations
to the forms of agreements used in documenting such agreements and preparing and executing documentation of assignments, transfers,
terminations, renewals, site relocations and ownership changes, in all cases, subject to and in accordance with the terms of the
Transaction Documents; (i) evaluating and approving assignments of Franchise Agreements and Development Agreements (and related
documents) to third-party franchisee candidates or existing Franchisees and, in accordance with the Managing Standard, arranging
for the assignment of Franchise Assets to a Non-Securitization Entity until such time as the applicable restaurant is re-franchised
to a third party franchisee; (j) preparing and filing franchise disclosure documents with respect to New Development Agreements
and New Franchise Agreements to comply, in all material respects, with applicable Requirements of Law; (k) complying with franchise
industry specific government regulation and applicable Requirements of Law; (l) making Manager Advances and Product Sourcing Advances
in its sole discretion; (m) administering the Advertising Fund Accounts and the Management Accounts; (n) performing the duties
and obligations and enforcing the rights of the Securitization Entities under the Managed Documents, including entering into new
Managed Documents from time to time; (o) arranging for legal services with respect to the Managed Assets, including with respect
to the enforcement of the Managed Documents; (p) arranging for or providing accounting and financial reporting services; (q) administering
Franchisee payments for the development of restaurant-level and above-restaurant-level technology systems; (r) performing due
diligence with respect to, selecting and approving new manufacturers and distributors of Proprietary Products and providing personnel
to manage the due diligence, selection and approval process; (s) preparing New Product Sourcing Agreements, subject to and in
accordance with the terms of the Transaction Documents, and administering the purchase and sale of Proprietary Products; (t) establishing
and servicing supply chain programs with respect to the Franchised Restaurants; (u) establishing and/or providing quality control
services and standards for food, equipment, suppliers and distributors in connection with the Contributed Franchised Restaurant
Business (including, without limitation, with respect to Product Sourcing Agreements) and monitoring compliance with such standards;
(v) developing new products and services (or modifying any existing products and services) to be offered in connection with the
Contributed Franchised Restaurant Business and the other assets of the Securitization Entities; (w) in connection with the Contributed
Franchised Restaurant Business, developing, modifying, amending and disseminating (i) specifications for restaurant operations,
(ii) manuals, operating guidelines and similar materials, as applicable, and (iii) new menu items; (x) performing the Real Estate
Services; (y) performing the IP Services; (z) developing and administering advertising, marketing and promotional programs relating
to the Brands and Branded Restaurants; and (aa) performing such other services as may be necessary or appropriate from time to
time and consistent with the Managing Standard and the Transaction Documents in connection with the Managed Assets.

 

    	9

     

    

 

“Sub-manager”
has the meaning set forth in Section 2.10.

 

“Sub-managing
Arrangement” means an arrangement whereby the Manager engages any other Person (including any Affiliate) to perform
certain of its duties under this Agreement excluding the fundamental corporate functions of the Manager; provided that (i) area
development agreements and master franchise arrangements with Franchisees and temporary arrangements with Franchisees with respect
to the management of one or more Branded Restaurants immediately following the termination of the former Franchisee thereof, and
(ii) any agreement between the Manager and third-party vendors pursuant to which the Manager purchases a specific product or service
or outsources routine administrative functions shall not constitute a Sub-managing Arrangement.

 

“Term”
has the meaning set forth in Section 8.1.

 

“Termination
Notice” has the meaning set forth in Section 6.1(a).

 

“Trustee”
has the meaning set forth in the preamble.

 

Section
1.2 Other Defined Terms.

 

(a)
Each term defined in the singular form in Section
1.1 or elsewhere in this Agreement shall mean the plural thereof when the plural form of such term is used in this Agreement
and each term defined in the plural form in Section 1.1 shall mean the singular thereof when the singular form of such
term is used herein.

 

    	10

     

    

 

(b)
The words “hereof”, “herein”,
“hereunder” and similar terms when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and article, section, subsection, schedule and exhibit references herein are references
to articles, sections, subsections, schedules and exhibits to this Agreement unless otherwise specified.

 

(c)
Unless as otherwise provided herein, the word
“including” as used herein shall mean “including without limitation.”

 

(d)
All accounting terms not specifically or completely
defined in this Agreement shall be construed in conformity with GAAP.

 

(e)
Where the character or amount of any asset or
liability or item of income or expense is required to be determined, or any accounting computation is required to be made, for
the purpose of this, such determination or calculation shall be made, to the extent applicable and except as otherwise specified
in this, in accordance with GAAP. When used herein, the term “financial statement” shall include the notes and schedules
thereto. All accounting determinations and computations hereunder shall be made without duplication.

 

Section
1.3 Other Terms. All terms used in Article
9 of the UCC as in effect from time to time in the State of New York, and not specifically defined herein, are used herein as
defined in such Article 9.

 

Section
1.4 Computation of Time Periods. Unless
otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the
word “from” means “from and including” and the words “to” and “until” each means
“to but excluding.”

 

Article
II

ADMINISTRATION
AND SERVICING OF MANAGED ASSETS

 

Section
2.1 Manager to Act as Manager.

 

(a)
Engagement of the Manager. The Manager
is hereby authorized by each Securitization Entity, and hereby agrees, to perform the Services (or refrain from the performance
of the Services) subject to and in accordance with the Managing Standard and the terms of this Agreement, the other Transaction
Documents and the Managed Documents. With respect to the IP Services, the Manager shall perform such IP Services in accordance
with the Managing Standard and the IP License Agreements, unless a Franchise Entity determines, in its sole discretion, that additional
action is necessary or desirable in furtherance of the protection of the Securitization IP, in which case the Manager shall perform
such IP Services and additional related services as are reasonably requested by such Franchise Entity. The Manager, on behalf
of the Securitization Entities, shall have full power and authority, acting alone and subject only to the specific requirements
and prohibitions of this Agreement and in accordance with the Managing Standard, the Indenture and the other Transaction Documents,
to do and take any and all actions, or to refrain from taking any such actions, and to do any and all things in connection with
performing the Services that the Manager determines are necessary or desirable. Without limiting the generality of the foregoing,
but subject to the provisions of this Agreement, the Indenture and the other Transaction Documents, including Section 2.8,
the Manager, in connection with performing the Services, is hereby authorized and empowered to execute and deliver, in the Manager’s
own name (in its capacity as agent for the applicable Securitization Entity) or in the name of any Securitization Entity (pursuant
to the applicable Power of Attorney), on behalf of any Securitization Entity any and all instruments of satisfaction or cancellation,
or of partial or full release or discharge, and all other comparable instruments, with respect to the Managed Assets. For the
avoidance of doubt, the parties hereto acknowledge and agree that the Manager is providing Services directly to each applicable
Securitization Entity. Nothing in this Agreement shall preclude the Securitization Entities from performing the Services or any
other act on their own behalf at any time and from time to time.

 

    	11

     

    

 

(b)
Actions to Perfect Liens. Subject to the
terms of the Indenture, including any applicable Series Supplement, the Manager shall take those actions that are required under
the Transaction Documents and Requirements of Law to maintain continuous perfection and priority (subject to Permitted Liens)
of the Trustee’s Lien in the Collateral. Without limiting the foregoing, the Manager shall file or cause to be filed with
the appropriate government office the financing statements on Form UCC-1, and assignments of financing statements on Form UCC-3
required pursuant to Section 7.13 of the Base Indenture, and other filings requested by the Securitization Entities, the
Control Party or the Back-Up Manager, to be filed in connection with the Contribution Agreement, the IP License Agreements, the
Securitization IP, the Indenture and the other Transaction Documents.

 

(c)
Ownership of Manager-Developed IP.

 

(i)
The Manager acknowledges and agrees that all
Securitization IP, including any Manager-Developed IP arising during the Term, shall, as between the parties, be owned by and
inure exclusively to the applicable Franchise Entity. Any copyrightable material included in such Manager-Developed IP shall,
to the fullest extent allowed by law, be considered a “work made for hire” as that term is defined in Section 101
of the U.S. Copyright Act of 1976, as amended, and owned by the applicable Franchise Entity. The Manager hereby irrevocably assigns
and transfers, without further consideration, all right, title and interest in such Manager-Developed IP (and all goodwill connected
with the use of and symbolized by Trademarks included therein) to the applicable Franchise Entity. Notwithstanding the foregoing,
the Manager-Developed IP to be transferred to the applicable Franchise Entity shall include rights to use third party Intellectual
Property only to the extent (but to the fullest extent) that such rights are assignable or sublicensable to the applicable Franchise
Entity. All applications to register Manager-Developed IP shall be filed in the name of the applicable Franchise Entity.

 

(ii)
The Manager agrees to cooperate in good faith
with each Franchise Entity for the purpose of securing and preserving the Franchise Entity’s rights in and to the applicable
Manager-Developed IP, including executing any documents and taking any actions, at the Franchise Entity’s reasonable request,
or as deemed necessary or advisable by the Manager, to confirm, file and record in any appropriate registry the Franchise Entity’s
sole legal title in and to such Manager-Developed IP, it being acknowledged and agreed that any expenses in connection therewith
shall be paid by the requesting Franchise Entity. The Manager hereby appoints each Franchise Entity as its attorney-in-fact authorized
to execute such documents in the event that Manager fails to execute the same within twenty (20) days following the Franchise
Entity’s written request to do so (it being understood that such appointment is a power coupled with an interest and therefore
irrevocable) with full power of substitution and delegation.

 

(d)
Grant of Power of Attorney. In order to
provide the Manager with the authority to perform and execute its duties and obligations as set forth herein, the Securitization
Entities shall execute and deliver on the Closing Date a Power of Attorney in substantially the form set forth as Exhibit A
hereto to the Manager, which Powers of Attorney shall terminate in the event that the Manager’s rights under this Agreement
are terminated as provided herein.

 

    	12

     

    

 

(e)
Franchisee Insurance. The Manager acknowledges
that, to the extent that it or any of its Affiliates is named as a “loss payee” or “additional insured”
under any insurance policies of any Franchisee, it shall use commercially reasonable efforts to cause it to be so named in its
capacity as the Manager on behalf of the applicable Franchise Entity, and the Manager shall promptly (i) deposit or cause to be
deposited to the applicable Concentration Account any proceeds received by it or by any Securitization Entity or any other Affiliate
under such insurance policies (other than amounts described in the following clause (ii)) and (ii) disburse to the applicable
Franchisee any proceeds of any such insurance policies payable to such Franchisee pursuant to the applicable Franchise Agreement.

 

(f)
Manager Insurance. The Manager agrees
to maintain adequate insurance consistent with the type and amount maintained by the Manager as of the Closing Date, subject,
in each case, to any adjustments or modifications made in accordance with the Managing Standard. Such insurance shall cover each
of the Securitization Entities, as an additional insured, to the extent that such Securitization Entity has an insurable interest
therein.

 

Section
2.2 Accounts.

 

(a)
Collection of Payments; Remittances; Collection
Account. The Manager shall maintain and manage the Management Accounts (and certain other accounts from time to time) in the
name of, and for the benefit of, the Securitization Entities. The Manager shall (on behalf of the Securitization Entities) (i)
cause the collection of Collections in accordance with the Managing Standard and subject to and in accordance with the Transaction
Documents and (ii) make all deposits to and withdrawals from the Management Accounts in accordance with this Agreement (including
the Managing Standard), the Indenture and the applicable Managed Documents. The Manager shall (on behalf of the Securitization
Entities) make all deposits to the Collection Account in accordance with terms of the Indenture.

 

(b)
Deposit of Misdirected Funds; No Commingling;
Misdirected Payments. The Manager shall promptly deposit into a Concentration Account, the Collection Account, an Advertising
Fund Account or such other appropriate account within three (3) Business Days immediately following Actual Knowledge of the Manager
of the receipt thereof and in the form received with any necessary endorsement or in cash, all payments in respect of the Managed
Assets incorrectly deposited into another account. In the event that any funds not constituting Collections are incorrectly deposited
in any Account, the Manager shall promptly withdraw such amounts after obtaining Actual Knowledge thereof and shall pay such amounts
to the Person legally entitled to such funds. Except as otherwise set forth herein, in the Base Indenture or in the Company Restaurant
Licenses, the Manager shall not commingle any monies that relate to Managed Assets with its own assets and shall keep separate,
segregated and appropriately marked and identified all Managed Assets and any other property comprising any part of the Collateral,
and for such time, if any, as such Managed Assets or such other property are in the possession or control of the Manager to the
extent such Managed Assets or such other property is Collateral, the Manager shall hold the same in trust for the benefit of the
Trustee and the Secured Parties (or, following termination of the Indenture, the applicable Securitization Entity). Additionally,
the Manager, promptly after obtaining Actual Knowledge thereof, shall notify the Trustee in the Monthly Manager’s Certificate
of any amounts incorrectly deposited into any Indenture Trust Account and instruct in the Monthly Manager’s Certificate
the prompt remittance by the Trustee of such funds from the applicable Indenture Trust Account to the Manager. The Trustee shall
have no obligation to verify any information provided to it by the Manager in any Monthly Manager’s Certificate and shall
remit such funds to the Manager based solely on such Monthly Manager’s Certificate.

 

    	13

     

    

 

(c)
Investment of Funds in Management Accounts.
The Manager shall have the right to invest and reinvest funds deposited in any Management Account in Eligible Investments. All
income or other gain from such Eligible Investments will be credited to the related Management Account, and any loss resulting
from such investments will be charged to the related Management Account.

 

(d)
Advertising Funds. The Manager may, but
shall not be required to, maintain advertising fund accounts (each, an “Advertising Fund Account”) in
the name of the Manager (or a Subsidiary thereof) for fees payable by Franchisees to fund the national marketing and advertising
activities and local advertising cooperatives with respect to each Brand (the “Advertising Fees”). Any
Advertising Fees received in the Concentration Account shall be transferred by the Manager to the applicable Advertising Fund
Account. The Manager shall not make or permit or cause any other Person to make or permit any borrowings to be made or Liens to
be levied against the Advertising Fund Accounts or the funds therein. The Manager shall apply the amount on deposit in each Advertising
Fund Account solely to cover (a) the costs and expenses (including costs and expenses incurred prior to the Closing Date) associated
with the administration of such account, (b) general and administrative expenses incurred by the Manager in respect of marketing
and advertising activities for the applicable Brand to the extent reimbursable from the Advertising Fees in accordance with the
applicable Franchise Agreements, and (c) costs and expenses related to the national and local marketing and advertising programs
with respect to the applicable Brand. The Manager may make advances to fund deficits in the Advertising Fund Accounts from time
to time to the extent that it reasonably expects to be reimbursed for such advances from the proceeds of future Advertising Fees,
it being agreed that any such advances shall not constitute Manager Advances. The Manager, acting on behalf of the Securitization
Entities, may in accordance with the Managing Standard and the terms of the Franchise Agreements, the Company Restaurant Licenses
and the Management Agreement, as applicable, increase or reduce the Advertising Fees required to be paid by the Franchisees and
Company Restaurants, respectively, pursuant to the terms of the Franchise Agreements, the Company Restaurant Licenses and the
Management Agreement and in accordance with the Managing Standard.

 

(e)
Brand Technology Funds. The Manager may,
but shall not be required to, establish and maintain for each Brand technology accounts to hold certain amounts paid by Franchisees
and Company Restaurants, if any, into any Brand technology fund for the development, maintenance and support of restaurant-level
and above restaurant-level technology systems, including, without limitation, point-of-sale system, back of house, mobile order
and/or mobile payment systems. The Manager shall not make or permit or cause any other Person to make or permit any borrowings
to be made or Liens to be levied against any such accounts or the funds therein. The Manager, acting on behalf of the Securitization
Entities, may in accordance with the Managing Standard and the terms of the Franchise Agreements, the Company Restaurant Licenses
and the Management Agreement, as applicable, specify or subsequently increase or reduce the amounts required to be paid by the
Franchisees and Company Restaurants, respectively, into any such Brand technology fund pursuant to the terms of the Franchise
Agreements, the Company Restaurant Licenses and the Management Agreement and in accordance with the Managing Standard.

 

(f)
Gift Card Sales and Redemptions. The Manager
will be responsible for administering the gift card programs of each Brand and will collect the proceeds of the initial sale of
gift cards that are sold on the internet, at Company Restaurants, at third party retail locations or at other gift card vendors
in one or more accounts in the name of the Manager (or a Subsidiary thereof). The Manager shall not make or permit or cause any
other Person to make or permit any borrowings to be made or Liens to be levied against any such accounts or the funds therein.
The Manager will reimburse the applicable Franchisee with respect to the redemption of gift cards sold at these locations or any
portion thereof in accordance with the Manager’s normal practices and the Managing Standard. The proceeds of the initial
sale of gift cards sold at Franchised Restaurants will be held in accounts in the name of selling Franchisee, and the Manager
may engage a third-party vendor to administer reimbursements of the applicable Franchisee with respect to the redemption of gift
cards sold at Franchised Restaurants.

 

    	14

     

    

 

(g)
Tenant Improvement Funds. The Manager
may, but shall not be required to, collect and administer tenant improvement allowances and similar amounts, if any, received
from landlords with respect to the New Franchised Restaurant Leases. Any such amounts received from landlords shall be collected
and maintained in one or more accounts in the name of the Manager, and will be utilized by the Manager for improvements, renovations
or other capital expenditures in respect of real property subject to New Franchised Restaurant Leases or, to the extent any such
funds represent a reimbursement of such expenditures previously made by the Manager, may be retained by the Manager. The Manager
shall not make or permit or cause any other Person to make or permit any borrowings to be made or Liens to be levied against any
such accounts or the funds therein. The Manager shall administer such amounts in accordance with the Managing Standard.

 

Section
2.3 Records.

 

(a)
The Manager shall, in accordance with the Current
Practice, retain all material data (including computerized records) relating directly to, or maintained in connection with, the
servicing of the Managed Assets at its address indicated in Section 8.5 (or at an off-site storage facility reasonably
acceptable to the Securitization Entities and the Control Party) or, upon thirty (30) days’ notice to the Securitization
Entities, the Rating Agencies, the Control Party, the Back-Up Manager and the Trustee, at such other place where the servicing
office of the Manager is located (provided that the servicing office of the Manager shall at all times be located in the United
States), and shall give the Trustee, the Control Party and the Back-Up Manager access to all such data in accordance with the
terms and conditions of the Transaction Documents; provided, however, that the Trustee shall not be obligated to verify, recalculate
or review any such data. The Manager acknowledges that the applicable Franchise Entity or applicable Franchise Entities shall
own the Intellectual Property rights in all such data.

 

(b)
If the rights of Manager, as the initial Manager,
shall have been terminated in accordance with Section 6.1 or if this Agreement shall have been terminated pursuant to Section
8.1, Manager, as the initial Manager, shall, upon demand of the Trustee (based upon the written direction of the Control Party,
acting at the direction of the Controlling Class Representative), in the case of a termination pursuant to Section 6.1,
or upon the demand of the Securitization Entities, in the case of a termination pursuant to Section 8.1, deliver to the
Successor Manager all data in its possession or under its control (including computerized records) necessary or desirable for
the servicing of the Managed Assets.

 

Section
2.4 Administrative Duties of Manager.

 

(a)
Duties with Respect to the Transaction Documents.
The Manager, in accordance with the Managing Standard, shall perform the duties of the applicable Securitization Entities under
the Transaction Documents except for those duties that are required to be performed by the equity holders, stockholders, directors,
or managers of such Securitization Entity pursuant to applicable Requirements of Law. In furtherance of the foregoing, the Manager
shall consult with the managers or the directors, as the case may be, of the Securitization Entities as the Manager deems appropriate
regarding the duties of the Securitization Entities under the Transaction Documents. The Manager shall monitor the performance
of the Securitization Entities and, promptly upon obtaining Actual Knowledge thereof, shall advise the applicable Securitization
Entity when action is necessary to comply with such Securitization Entity’s duties under the Transaction Documents. The
Manager shall prepare for execution by the Securitization Entities or shall cause the preparation by other appropriate Persons
of all such documents, reports, filings, instruments, certificates, notices and opinions as it shall be the duty of the Securitization
Entities to prepare, file or deliver pursuant to the Transaction Documents.

 

    	15

     

    

 

(b)
Duties with Respect to the Securitization
Entities. In addition to the duties of the Manager set forth in this Agreement or any of the Transaction Documents, the Manager,
in accordance with the Managing Standard, shall perform such calculations and shall prepare for execution by the Securitization
Entities or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates,
notices and opinions as it shall be the duty of the Securitization Entities to prepare, file or deliver pursuant to applicable
law, including, for the avoidance of doubt, securities laws and franchise laws. Pursuant to the directions of the Securitization
Entities and in accordance with the Managing Standard, the Manager shall administer, perform or supervise the performance of such
other activities in connection with the Securitization Entities as are not covered by any of the foregoing provisions and as are
expressly requested by any Securitization Entity and are reasonably within the capability of the Manager.

 

(c)
Records. The Manager shall maintain appropriate
books of account and records relating to the Services performed under this Agreement, which books of account and records shall
be accessible for inspection by the Securitization Entities during normal business hours and upon reasonable notice, and by the
Trustee, the Control Party, the Back-Up Manager and the Controlling Class Representative in accordance with Section 3.1(e).

 

(d)
Election of Controlling Class Representative.
Pursuant to Section 11.1(c) of the Base Indenture, if two CCR Candidates both receive votes from Controlling Class Members
holding beneficial interests in exactly 50% of the Aggregate Outstanding Principal Amount of Notes of the Controlling Class, the
Manager shall have the right to direct the Trustee to appoint one of such CCR Candidates as the Controlling Class Representative.

 

Section
2.5 No Offset. The payment obligations
of the Manager under this Agreement shall not be subject to, and the Manager hereby waives, in connection with the performance
of such obligations, any right of offset that the Manager has or may have against the Trustee, the Control Party or the Securitization
Entities, whether in respect of this Agreement, the other Transaction Documents or any document governing any Managed Asset or
otherwise.

 

Section
2.6 Compensation and Expenses. As compensation
for the performance of its obligations under this Agreement, the Manager shall receive the Monthly Management Fee and the Supplemental
Management Fee, if any, on each Monthly Allocation Date out of amounts available therefore under the Indenture on such Monthly
Allocation Date in accordance with the Priority of Payments. The Manager is required to pay from its own funds all expenses it
may incur in performing its obligations hereunder.

 

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Section
2.7 Indemnification.

 

(a)
The Manager agrees to indemnify and hold the
Securitization Entities, the Trustee, the Back-Up Manager and the Control Party, and their respective members, officers, directors,
managers, employees and agents (each, an “Indemnitee”) harmless against all claims, losses, penalties, fines, forfeitures,
liabilities, obligations, damages, actions, suits and related costs and judgments and other costs, fees and reasonable expenses,
including reasonable and documented fees, out-of-pocket charges and disbursements of counsel (other than the allocated costs of
in-house counsel), that any of them may incur as a result of (i) the failure of the Manager to perform or observe its obligations
under this Agreement or any other Transaction Document to which it is a party in its capacity as Manager, (ii) the breach by the
Manager of any representation, warranty or covenant under this Agreement or any other Transaction Document to which it is a party
in its capacity as Manager; or (iii) the Manager’s bad faith, negligence or willful misconduct in the performance of its
duties under this Agreement and or the other Transaction Documents; provided, that the Manager shall have no obligation of indemnity
to an Indemnitee to the extent any such claims, losses, penalties, fines, forfeitures, liabilities, obligations, damages, actions,
suits and related costs and judgments and other costs, fees and reasonable expenses are caused by the bad faith, gross negligence,
willful misconduct, or breach of this Agreement by such Indemnitee (unless caused by the Manager with respect to a Securitization
Entity). In the event the Manager is required to make an indemnification payment pursuant to this Section 2.7(a) the Manager shall
promptly pay such indemnification payment directly to the applicable Indemnitee (or, if due to a Securitization Entity, shall
deposit such indemnification payment directly to the Collection Account). Notwithstanding anything to the contrary in this Agreement,
no indemnification payment shall be due from the Manager to the extent that it constitutes recourse for diminution in the market
value of any Managed Assets from and after the Effective Date, other than as may be attributable to any of the foregoing limited
circumstances.

 

(b)
[RESERVED]

 

(c)
[RESERVED]

 

(d)
Any Indemnitee that proposes to assert the right
to be indemnified under Section 2.7 shall promptly, after receipt of notice of the commencement of any action, suit or proceeding
against such party in respect of which a claim is to be made against the Manager, notify the Manager of the commencement of such
action, suit or proceeding, enclosing a copy of all papers served. In the event that any action, suit or proceeding shall be brought
against any Indemnitee, such Indemnitee shall notify the Manager of the commencement thereof and the Manager shall be entitled
to participate in, and to the extent that it shall wish, to assume the defense thereof, with its counsel reasonably satisfactory
to such Indemnitee (which, in the case of a Securitization Entity, shall be reasonably satisfactory to the Control Party as well),
and after notice from the Manager to such Indemnitee of its election to assume the defense thereof, the Manager shall not be liable
to such Indemnitee for any legal expenses subsequently incurred by such Indemnitee in connection with the defense thereof; provided
that the Trustee shall not be bound by this sentence except with its prior written consent, which may be withheld in its sole
discretion; provided, further, that the Manager shall not enter into any settlement with respect to any claim or proceeding unless
such settlement includes a release of such Indemnitee from all liability on claims that are the subject matter of such settlement;
and provided, further, that the Indemnitee shall have the right to employ its own counsel in any such action the defense of which
is assumed by the Manager in accordance with this Section 2.7(d), but the fees and expenses of such counsel shall be at the expense
of such Indemnitee unless (i) the employment of counsel by such Indemnitee has been specifically authorized by the Manager, (ii)
the Manager is advised in writing by counsel to such Indemnitee or the Control Party that joint representation would give rise
to a conflict of interest between such Indemnitee’s position and the position of the Manager in respect of the defense of
the claim, (iii) the Manager shall have failed within a reasonable period of time to assume the defense of such action or proceeding
and employ counsel reasonably satisfactory to the Indemnitee in any such action or proceeding or (iv) the named parties to any
such action or proceeding (including any impleaded parties) include both the Indemnitee and the Manager, and the Indemnitee shall
have been advised by counsel that there may be one or more legal defenses available to it which are different from or additional
to those available to the Manager (in which case, the Indemnitee notifies the Manager in writing that it elects to employ separate
counsel at the expense of the Manager, the reasonable fees and expenses of such Indemnitee’s counsel shall be borne by the
Manager and the Manager shall not have the right to assume the defense of such action or proceeding on behalf of such Indemnitee,
it being understood, however, that the Manager shall not, in connection with any one such action or proceeding or separate but
substantially similar or related actions or proceedings in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for such fees and expenses of more than one separate firm of attorneys at any time for the Indemnitee).
The provisions of this Section 2.7 shall survive the termination of this Agreement or the earlier resignation or removal of any
party hereto; provided, however, that no Successor Manager shall be liable under this Section 2.7 with respect to any Defective
New Asset or any other matter occurring prior to its succession hereunder. Notwithstanding anything in this Section 2.7 to the
contrary, any delay or failure by an Indemnitee in providing the Manager with notice of any action shall not relieve the Manager
of its indemnification obligations except to the extent the Manager is materially prejudiced by such delay or failure of notice.

 

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Section
2.8 Nonpetition Covenant. The Manager shall not,
prior to the date that is one year and one day, or if longer, the applicable preference period then in effect, after the payment
in full of the Outstanding Principal Amount of the Notes of each Series, petition or otherwise invoke the process of any court
or governmental authority for the purpose of commencing or sustaining a case against any Securitization Entity under any insolvency
law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of such Securitization
Entity or any substantial part of its property, or ordering the winding up or liquidation of the affairs of such Securitization
Entity.

 

Section
2.9 Franchisor Consent. Subject to the Managing
Standard and the terms of the Indenture, the Manager shall have the authority, on behalf of the applicable Securitization Entities,
to grant or withhold consents of the “franchisor” required under the Franchise Documents.

 

Section
2.10 Appointment of Sub-managers. The Manager
may enter into Sub-managing Arrangements with third parties (including Affiliates) (each, a “Sub-manager”) to provide
the Services hereunder; provided, other than with respect to a Sub-managing Arrangement with an Affiliate of the Manager, that
no Sub-managing Arrangement shall be effective unless and until (i) the Manager receives the consent of the Control Party, (ii)
such sub-manager executes and delivers an agreement, in form and substance reasonably satisfactory to the Control Party, to perform
and observe, or in the case of an assignment, an assumption by such successor entity of the due and punctual performance and observance
of, the applicable covenants and conditions to be performed or observed by the Manager under this Agreement; provided that such
Sub-managing Arrangement shall be terminable by the Control Party (acting at the direction of the Controlling Class Representative)
upon a Manager Termination Event and shall contain transitional servicing provisions substantially similar to those provided in
Section 6.3, (iii) a written notice has been provided to the Trustee, the Back-Up Manager and the Control Party and (iv) such
Sub-managing Arrangement, or assignment and assumption by such Sub-manager, satisfies the Rating Agency Condition. The Manager
shall not enter into any Sub-managing Arrangement which delegates the performance of any fundamental business operations such
as responsibility for the franchise development, operations and marketing strategies for the Brands and Branded Restaurants to
any Person that is not an Affiliate without receiving the prior written consent of the Control Party. Notwithstanding anything
to the contrary herein or in any Sub-managing Arrangement, the Manager shall remain primarily and directly liable for its obligations
hereunder and in connection with any Sub-managing Arrangement.

 

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Section
2.11 Insurance/Condemnation Proceeds. Upon
receipt of any Insurance/Condemnation Proceeds, the Manager (on behalf of the Securitization Entities) shall deposit or cause
the deposit of such Insurance/Condemnation Proceeds to a Management Account. Notwithstanding anything in this Agreement or any
other Transaction Document to the contrary, at the election of the Manager (on behalf of the applicable Securitization Entity)
(as notified by the Manager to the Trustee, the Control Party and the Back-Up Manager promptly after receipt of the Insurance/Condemnation
Proceeds) and so long as no Rapid Amortization Event shall have occurred and be continuing, the Manager (on behalf of the Securitization
Entities) may reinvest such Insurance/Condemnation Proceeds to repair or replace the assets in respect of which such Insurance/Condemnation
Proceeds were received within one calendar year following receipt of such Insurance/Condemnation Proceeds (or, if any Securitization
Entity (or the Manager on its behalf) shall have entered into a binding commitment to reinvest such Insurance/Condemnation Proceeds
within one (1) calendar year following receipt of such Insurance/Condemnation Proceeds, within eighteen (18) calendar months following
receipt of such Insurance/Condemnation Proceeds); provided that (i) in the event the Manager has repaired or replaced the
assets with respect to which such Insurance/Condemnation Proceeds have been received prior to the receipt of such Insurance/Condemnation
Proceeds, such Insurance/Condemnation Proceeds shall be used to reimburse the Manager for any expenditures in connection with
such repair or replacement and (ii) any Insurance/Condemnation Proceeds received in connection with the exercise of any non-temporary
condemnation, eminent domain or similar powers exercised pursuant to Requirements of Law may be reinvested in Eligible Assets.

 

Section
2.12 Permitted Asset Dispositions. The
Manager (acting on behalf of the Securitization Entities), in accordance with Section 8.16 of the Base Indenture and the
Managing Standard, may dispose of property of the Securitization Entities from time to time pursuant to a Permitted Asset Disposition.
Upon receipt of any proceeds from any Permitted Asset Disposition, the Manager (on behalf of the Securitization Entities) shall
deposit or cause the deposit of such proceeds to a Management Account. Notwithstanding anything in this Agreement or any other
Transaction Document to the contrary, at the election of the Manager (on behalf of the applicable Securitization Entity) and so
long as no Rapid Amortization Event shall have occurred and be continuing, the Manager (on behalf of the Securitization Entities)
may reinvest such proceeds in Eligible Assets within one (1) calendar year following receipt of such proceeds (or, if any Securitization
Entity (or the Manager on its behalf) shall have entered into a binding commitment to reinvest such proceeds in Eligible Assets
within one (1) calendar year following receipt of such proceeds, within eighteen (18) calendar months following receipt of such
proceeds) and/or may utilize such proceeds to pay, or to allocate funds to reimburse the Securitization Entities for amounts previously
paid, for investments in Eligible Assets made within the twelve (12) month period prior to the receipt of such proceeds.

 

Section
2.13 Manager Advances. The Manager may,
but shall not be obligated to, make Manager Advances to, or on behalf of, any Securitization Entity in connection with the operation
of the Contributed Franchised Restaurant Business and other Managed Assets. Manager Advances will accrue interest at the Advance
Interest Rate and shall be reimbursable on each Monthly Allocation Date in accordance with the Priority of Payments.

 

Section
2.14 Product Sourcing Advances. In the
event sufficient funds are not available in the Product Sourcing Accounts for any Product Sourcing Payment, the Manager may, but
is not obligated to, make an advance (each, a “Product Sourcing Advance”) to fund such Product Sourcing
Payment to the extent that it reasonably expects to be reimbursed for such advances from the proceeds of future Product Sourcing
Payments, it being understood and agreed that any such advances shall not constitute Manager Advances. Each Product Sourcing Advance
shall be repaid solely from Product Sourcing Payments received in the Product Sourcing Accounts after the date of such Product
Sourcing Advance in accordance with the Priority of Payments. Product Sourcing Payments shall not be deposited into or allocated
for any Concentration Account or Collection Account.

 

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Article
III

STATEMENTS
AND REPORTS

 

Section
3.1 Reporting by the Manager.

 

(a)
Reports Required Pursuant to the Indenture.
The Manager, on behalf of the Securitization Entities, shall furnish, or cause to be furnished, to the Trustee, all reports and
notices required to be delivered to the Trustee by any Securitization Entity pursuant to the Indenture (including pursuant to
Article IV of the Base Indenture) or any other Transaction Document.

 

(b)
Delivery of Financial Statements. The
Manager shall provide the financial statements of Manager and the Securitization Entities as required under Section 4.1(g)
and (h) of the Base Indenture.

 

(c)
Franchisee Termination Notices. The Manager
shall send to the Trustee and the Back-Up Manager, as soon as reasonably practicable but in no event later than fifteen (15) Business
Days of the receipt thereof, a copy of any notices of termination of one or more Franchise Agreements sent by the Manager to any
Franchisee unless (i) the related Franchised Restaurant(s) generated less than $500,000 in royalties during the immediately preceding
fiscal year or (ii) the related Franchised Restaurant(s) continue to operate pursuant to an agreement between the related Franchise
Entity or the Manager on its behalf and such Franchisee.

 

(d)
Notice Regarding New Franchised Restaurant
Leases. In the event that any Securitization Entity, or the Manager on behalf of any Securitization Entity, receives any written
notice from a lessor of any lease included in the Real Estate Assets regarding the lack of payment or alleging any breach, violation
or default under the applicable leases or action be taken to remedy a breach, violation or default, excluding any such notice
in respect of non-monetary breach, violation or default as to which the Manager is contesting or expects to contest in good faith,
the Manager shall promptly, but in any event within fifteen (15) Business Days from such receipt, notify the Trustee and the Control
Party.

 

(e)
Additional Information; Access to Books and
Records. The Manager shall furnish from time to time such additional information regarding the Collateral or compliance with
the covenants and other agreements of Manager and any Securitization Entity under the Transaction Documents as the Trustee, the
Back-Up Manager or the Control Party may reasonably request, subject at all times to compliance with the Exchange Act, the Securities
Act and any other applicable Requirements of Law. Subject to the Disclosure Exceptions and to reasonable requests of confidentiality
including as required or imposed by law or by contract, the Manager will, and will cause each Securitization Entity to, permit,
at reasonable times upon reasonable notice, the Control Party, the Back-Up Manager, the Controlling Class Representative and the
Trustee or any Person appointed by any of them as its agent to visit and inspect any of its properties, examine its books and
records and discuss its affairs with its officers, directors, managers, employees and independent certified public accountants
(so long as the Manager has the opportunity to participate in such discussions with such accountants), and up to one such visit
and inspection by each of the Control Party, the Controlling Class Representative and the Trustee, or any Person appointed by
them shall be reimbursable as a Securitization Operating Expense per calendar year, with any additional visit or inspection by
any such Person being at such Person’s sole cost and expense; provided, however that during the continuance of a Rapid Amortization
Event, a Default, or an Event of Default, or to the extent expressly required without the instruction of any other party under
the terms of any Transaction Documents, any such Person may visit and conduct such activities at any time and all such visits
and activities will constitute a Securitization Operating Expense. Notwithstanding the foregoing, the Manager shall not be required
to disclose or make available communications protected by the attorney-client privilege. Notwithstanding anything in this Agreement
or any other Transaction Document to the contrary, in no event shall the Manager or any other Securitization Entity be required
to disclose or discuss, or permit the inspection, examination or making of extracts of, any records, books, information or account
or other matter that constitutes a Disclosure Exception.

 

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(f)
Leadership Team Changes. The Manager shall
promptly notify the Trustee and the Back-Up Manager of any termination or resignation of any persons included in the Leadership
Team that occurs within 12 months following a Change of Control.

 

Section
3.2 Appointment of Independent Auditor.
On or before the Closing Date, the Securitization Entities appointed a firm of independent public accountants of recognized national
reputation that was reasonably acceptable to the Control Party to serve as the independent auditors (“Independent
Auditors”) for purposes of preparing and delivering the reports required by Section 3.3, and such Independent
Auditors continue to serve in such capacity as of the Effective Date. It is hereby acknowledged that the accounting firm of Squar
Milner LLP is acceptable for purposes of serving as Independent Auditors. The Securitization Entities may not remove the Independent
Auditors without first giving thirty (30) days’ prior written notice to the Independent Auditors, with a copy of such notice
also given concurrently to the Trustee, the Rating Agencies, the Control Party and the Manager (if applicable). Upon any resignation
by such firm or removal of such firm, the Securitization Entities shall promptly appoint a successor thereto that shall also be
a firm of independent public accountants of recognized national reputation to serve as the Independent Auditors hereunder. If
the Securitization Entities shall fail to appoint a successor firm of Independent Auditors within thirty (30) days after the effective
date of any such resignation or removal, the Control Party (acting at the direction of the Controlling Class Representative) shall
promptly appoint a successor firm of independent public accountants of recognized national reputation that is reasonably satisfactory
to the Manager to serve as the Independent Auditors hereunder. The fees of any Independent Auditors shall be payable by the Securitization
Entities.

 

Section
3.3 Annual Accountants’ Reports.
The Manager shall furnish, or cause to be furnished to the Trustee, the Control Party and the Rating Agencies, within 120 days
after the end of each fiscal year of the Manager, commencing with the fiscal year ending in December 2020, (i) a report of the
Independent Auditors (who may also render other services to the Manager) or the Back-Up Manager summarizing the findings of a
set of agreed-upon procedures performed by the Independent Auditors or the Back-Up Manager with respect to compliance with the
Quarterly Noteholders’ Reports for such fiscal year (or other period) with the standards set forth herein, and (ii) a report
of the Independent Auditors or the Back-Up Manager to the effect that such firm has examined the assertion of the Manager’s
management as to its compliance with its management requirements for such fiscal year (or other period), and that (x) in the case
of the Independent Auditors, such examination was made in accordance with standards established by the American Institute of Certified
Public Accountants and (y) except as described in the report, management’s assertion is fairly stated in all material respects.
In the case of the Independent Auditors, the report will also indicate that the firm is independent of the Manager within the
meaning of the Code of Professional Ethics of the American Institute of Certified Public Accountants (each, an “Annual
Accountants’ Report”). In the event such Independent Auditors require the Trustee to agree to the procedures to
be performed by such firm in any of the reports required to be prepared pursuant to this Section 3.3, the Manager shall
direct the Trustee in writing to so agree as to the procedures described therein; it being understood and agreed that the Trustee
shall deliver such letter of agreement (which shall be in a form satisfactory to the Trustee) in conclusive reliance upon the
direction of the Manager, and the Trustee has not made any independent inquiry or investigation as to, and shall have no obligation
or liability in respect of, the sufficiency, validity or correctness of such procedures.

 

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Section
3.4 Available Information. The Manager,
on behalf of the Securitization Entities, shall make available the information requested by prospective purchasers necessary to
satisfy the requirements of Rule 144A under the Securities Act, as amended, and the Investment Company Act, as amended. The Manager
shall deliver such information, and shall promptly deliver copies of all Quarterly Noteholders’ Reports and Annual Accountants’
Reports, to the Trustee as contemplated by Section 4.1 and Section 4.4 of the Base Indenture, to enable the Trustee
to redeliver such information to purchasers or prospective purchasers of the Notes.

 

Article
IV

THE
MANAGER

 

Section
4.1 Representations and Warranties Concerning
the Manager. The Manager represents and warrants to each Securitization Entity and the Trustee, as of the Closing Date, Effective
Date and each Series Closing Date (except if otherwise expressly noted), as follows:

 

(a)
Organization and Good Standing. The Manager
(i) is a corporation, duly formed and organized, validly existing and in good standing under the laws of the State of Delaware,
(ii) is duly qualified to do business as a foreign corporation and in good standing under the laws of each jurisdiction where
the character of its property, the nature of its business or the performance of its obligations under the Transaction Documents
make such qualification necessary and (iii) has the power and authority (x) to own its properties and to conduct its business
as such properties are currently owned and such business is currently conducted and (y) to perform its obligations under this
Agreement, except in each case referred to in clause (ii) or (iii) to the extent that a failure to do so would not reasonably
be expected to result in a Material Adverse Effect on the Manager.

 

(b)
Power and Authority; No Conflicts. The
execution and delivery by the Manager of this Agreement and its performance of, and compliance with, the terms hereof are within
the power of the Manager and have been duly authorized by all necessary corporate action on the part of the Manager. Neither the
execution and delivery of this Agreement, nor the consummation of the transactions herein, nor compliance with the provisions
hereof, shall conflict with or result in a breach of, or constitute a default (or an event which, with notice or lapse of time,
or both, would constitute a default) under, any order of any Governmental Authority or any of the provisions of any Requirement
of Law binding on the Manager or its properties, or the charter or bylaws or other organizational documents of the Manager, or
any of the provisions of any material indenture, mortgage, lease, contract or other instrument to which the Manager is a party
or by which it or its property is bound or result in the creation or imposition of any Lien upon any of its property pursuant
to the terms of any such indenture, mortgage, leases, contract or other instrument, except to the extent such default, creation
or imposition would not reasonably be expected to result in a Material Adverse Effect on the Manager, the Collateral, or the Securitization
Entities.

 

(c)
Consents. Except (i) for registrations
as a franchise broker or franchise sales agent as may be required under state franchise statutes and regulations, (ii) to the
extent that a state or foreign franchise law requires filing and other compliance actions by virtue of considering the Manager
as a “subfranchisor”, (iii) for any consents, licenses, approvals, authorizations, registrations, notifications, waivers
or declarations that have been obtained or made and are in full force and effect and (iv) to the extent that a failure to do so
would not reasonably be expected to result in a Material Adverse Effect on the Manager, the Collateral or the Securitization Entities,
the Manager is not required to obtain the consent of any other party or the consent, license, approval or authorization of, or
file any registration or declaration with, any Governmental Authority in connection with the execution, delivery or performance
by the Manager of this Agreement, or the validity or enforceability of this Agreement against the Manager.

 

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(d)
Due Execution and Delivery. This Agreement
has been duly executed and delivered by the Manager and constitutes a legal, valid and binding obligation of the Manager enforceable
against the Manager in accordance with its terms (subject to applicable insolvency laws and to general principles of equity).

 

(e)
No Litigation. There are no actions, suits,
investigations or proceedings pending or, to the Actual Knowledge of the Manager, threatened in writing against or affecting the
Manager, before or by any Governmental Authority having jurisdiction over the Manager or any of its properties or with respect
to any of the transactions contemplated by this Agreement (i) asserting the illegality, invalidity or unenforceability, or seeking
any determination or ruling that would affect the legality, binding effect, validity or enforceability of this Agreement or (ii)
which would reasonably be expected to result in a Material Adverse Effect on the Manager, the Collateral or the Securitization
Entities.

 

(f)
Compliance with Requirements of Law. The
Manager is in compliance with all Requirements of Law except to the extent that the failure to comply therewith would not, in
the aggregate, reasonably be expected to result in a Material Adverse Effect on the Manager, the Collateral or the Securitization
Entities.

 

(g)
No Default. The Manager is not in default
under any agreement, contract, instrument or indenture to which the Manager is a party or by which it or its properties is or
are bound, or with respect to any order of any Governmental Authority, except to the extent such default would not reasonably
be expected to result in a Material Adverse Effect on the Manager or the Collateral; and no event has occurred which with notice
or lapse of time or both would constitute such a default with respect to any such agreement, contract, instrument or indenture,
or with respect to any such order of any Governmental Authority.

 

(h)
Taxes. The Manager has filed or caused
to be filed and shall file or cause to be filed all federal tax returns and all material state and other tax returns that are
required to be filed except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect.
The Manager has paid or caused to be paid, and shall pay or cause to be paid, all taxes owed by the Manager pursuant to said returns
or pursuant to any assessments made against it or any of its property (other than any amount of tax the validity of which is currently
being contested in good faith by appropriate action and with respect to which reserves in accordance with GAAP have been provided
on the books of the Manager).

 

(i)
Accuracy of Information. No written report,
financial statements, certificate or other written information furnished (other than projections, budgets, other estimates and
general market, industry and economic data) to the Control Party or the Back-Up Manager by or on behalf of the Manager in connection
with the transactions contemplated hereby or pursuant to any provision of this Agreement or any other Transaction Document (when
taken together with all other information furnished by or on behalf of the Manager to the Control Party or the Back-Up Manager,
as the case may be), contains any material misstatement of fact as of the date furnished or omits to state any material fact necessary
to make the statements therein not materially misleading in each case when taken as a whole and in the light of the circumstances
under which they were made; and with respect to its projected financial information, the Manager represents only that such information
was prepared in good faith based on assumptions believed to be reasonable at the time.

 

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(j)
Financial Statements. As of the Effective
Date, the audited consolidated financial statements in the Manager’s Annual Report on Form 10-K for the fiscal year ended
December 30, 2018 and the unaudited condensed consolidated financial statements in the Manager’s Quarterly Reports on Form
10-Q for the fiscal quarter ended September 29, 2019 included in the Offering Memorandum (i) present fairly in all material respects
the financial condition of Manager and its Subsidiaries as of such date, and the results of operations for the respective periods
then ended and (ii) were prepared in accordance with GAAP (except as otherwise stated therein) applied consistently through the
periods involved subject, in the case of such quarterly financial statements, to the absence of footnotes and to normal year-end
audit adjustments.

 

(k)
No Material Adverse Change. Since December
30, 2018, except as otherwise set forth in the Offering Memorandum, there has been no development or event that has had or would
reasonably be expected to result in a Material Adverse Effect on the Manager or the Collateral.

 

(l)
ERISA. Neither the Manager nor any member
of a Controlled Group that includes the Manager has established, maintains, contributes to, or has any liability in respect of
(or has in the past six years established, maintained, contributed to, or had any liability in respect of) any Pension Plan. Neither
the Manager nor any of its Affiliates has any contingent liability with respect to any post-retirement welfare benefits under
a Welfare Plan, other than liability for continuation (i) described in Part 6 of Subtitle B of Title I of ERISA or other applicable
continuation of coverage laws, (ii) provided in connection with the payment of severance benefits or (iii) that would not, individually
or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Each Employee Benefit Plan presently complies
and has been maintained in compliance with its terms and with the requirements of all applicable statutes, rules and regulations,
including ERISA and the Code, except for such instances of noncompliance as would not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Effect. No “prohibited transaction” (within the meaning of Section 406
of ERISA or Section 4975 of the Code) has occurred with respect to any Employee Benefit Plan, other than transactions effected
pursuant to a statutory or administrative exemption or such transactions as would not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Effect. Except as would not reasonably be expected to result in a Material Adverse
Effect, each such Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code is so qualified and
nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification.

 

(m)
No Manager Termination Event. No Manager
Termination Event has occurred or is continuing, and, to the Actual Knowledge of the Manager, there is no event which, with notice
or lapse of time, or both, would constitute a Manager Termination Event.

 

(n)
Location of Records. The offices at which
the Manager keeps its records concerning the Managed Assets are located at the addresses indicated in Section 8.5.

 

(o)
DISCLAIMER. EXCEPT FOR THE MANAGER’S
REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN AND IN ANY OTHER RELATED DOCUMENT, THE MANAGER MAKES NO WARRANTIES, EXPRESS OR
IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTORY OR OTHERWISE, WITH RESPECT TO THE SUBJECT MATTER HEREOF TO ANY OTHER
PARTY, AND EACH PARTY EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES, INCLUDING WARRANTY OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE.

 

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Section
4.2 Existence; Status as Manager. The Manager
shall (a) keep in full effect its existence under the laws of the state of its incorporation, (b) maintain all rights and privileges
necessary or desirable in the normal conduct of its business and the performance of its obligations hereunder except to the extent
that failure to do so would not reasonably be expected to result in a Material Adverse Effect and (c) obtain and preserve its
qualification to do business in each jurisdiction in which the failure to so qualify either individually or in the aggregate would
reasonably be expected to result in a Material Adverse Effect.

 

Section
4.3 Performance of Obligations.

 

(a)
Performance. The Manager shall perform
and observe all of its obligations and agreements contained in this Agreement and the other Transaction Documents in accordance
with the terms hereof and thereof and in accordance with the Managing Standard.

 

(b)
Special Provisions as to Securitization IP.

 

(i)
The Manager acknowledges and agrees that each
Franchise Entity has the right and duty to control the quality of the goods and services offered under such Franchise Entity’s
Trademarks included in the Securitization IP and the manner in which such Trademarks are used in order to maintain the validity
and enforceability of and its ownership of the Trademarks included in the Securitization IP. The Manager shall not take any action
contrary to the express written instruction of the applicable Franchise Entity with respect to: (A) the promulgation of standards
with respect to the operation of Branded Restaurants, including quality of food, cleanliness, appearance, and level of service
(or the making of material changes to the existing standards), (B) the promulgation of standards with respect to new businesses,
products and services which the applicable Franchise Entity approves for inclusion in the license granted under any IP License
Agreement (or other license agreement or sublicense agreement for which the Manager is performing IP Services), (C) the nature
and implementation of means of monitoring and controlling adherence to the standards, (D) the terms of any Franchise Agreements,
the Product Sourcing Agreements or other sublicense agreements relating to the quality standards which licensees must follow with
respect to businesses, products, and services offered under the Trademarks included in the Securitization IP and the usage of
such Trademarks, (E) the commencement and prosecution of enforcement actions with respect to the Trademarks included in the Securitization
IP and the terms of any settlements thereof, (F) the adoption of any variations on the Brands which are not in use on the Closing
Date, or other new Trademarks to be included in the Securitization IP, (G) the abandonment of any Securitization IP and (H) any
uses of the Securitization IP that are not consistent with the Managing Standard. The Franchise Entities shall have the right
to monitor the Manager’s compliance with the foregoing and its performance of the IP Services and, in furtherance thereof,
Manager shall provide each Franchise Entity, at either Franchise Entity’s written request from time to time, with copies
of Franchise Documents, the Product Sourcing Agreements and other sublicenses, samples of products and materials bearing the Trademarks
included in the Securitization IP used by Franchisees, any manufacturer or distributor of Proprietary Products and other licensees
and sublicensees. Nothing in this Agreement shall limit the Franchise Entities’ rights or the licensees’ obligations
under the IP License Agreements or any other agreement with respect to which the Manager is performing IP Services.

 

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(ii)
The Manager is hereby granted a non-exclusive,
royalty-free sublicensable license to use the Securitization IP solely in connection with the performance of the Services under
this Agreement. In connection with the Manager’s use of any Trademark included in the Securitization IP pursuant to the
foregoing license, the Manager agrees to adhere to the quality control provisions and sublicensing provisions, with respect to
sublicenses issued hereunder, which are contained in each IP License Agreement, as applicable to the product or service to which
such Trademark pertains, as if such provisions were incorporated by reference herein.

 

(c)
Right to Receive Instructions. Without
limiting the Manager’s obligations under Section 4.3(b) above, in the event that the Manager is unable to decide
between alternative courses of action, or is unsure as to the application of any provision of this Agreement, the other Transaction
Documents or any Managed Documents, or any such provision is, in the good faith judgment of the Manager, ambiguous as to its application,
or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement, any other Transaction
Document or any Managed Document permits any determination by the Manager or is silent or is incomplete as to the course of action
which the Manager is required to take with respect to a particular set of facts, the Manager may make a Consent Request to the
Control Party for written instructions in accordance with the Indenture and the other Transaction Documents and, to the extent
that the Manager shall have acted or refrained from acting in good faith in accordance with instructions, if any, received from
the Control Party with respect to such Consent Request, the Manager shall not be liable on account of such action or inaction
to any Person; provided that the Control Party shall be under no obligation to provide any such instruction if it is unable to
decide between alternative courses of action. Subject to the Managing Standard, if the Manager shall not have received appropriate
instructions from the Control Party within ten days of such notice (or within such shorter period of time as may be specified
in such notice), the Manager may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with
this Agreement or the Transaction Documents, as the Manager shall deem to be in the best interests of the Noteholders and the
Securitization Entities. The Manager shall have no liability to any Secured Party or the Controlling Class Representative for
such action or inaction taken in reliance on the preceding sentence except for the Manager’s own bad faith, negligence or
willful misconduct.

 

(d)
Limitation on Manager’s Duties and Responsibilities.

 

(i)
The Manager shall not have any duty or obligation
to manage, make any payment in respect of, register, record, sell, reinvest, dispose of, create, perfect or maintain title to,
or any security interest in, or otherwise deal with the Collateral, to prepare or file any report or other document or to otherwise
take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the Manager is
a party, except as expressly provided by the terms of this Agreement or the other Transaction Documents and consistent with the
Managing Standard, and no implied duties or obligations shall be read into this Agreement against the Manager. The Manager nevertheless
agrees that it shall, at its own cost and expense, promptly take all action as may be necessary to discharge any Liens (other
than Permitted Liens) on any part of the Managed Assets which result from valid claims against the Manager personally whether
or not related to the ownership or administration of the Managed Assets or the transactions contemplated by the Transaction Documents.

 

(ii)
Except as otherwise set forth herein and in the
other Transaction Documents, the Manager shall have no responsibility under this Agreement other than to render the Services in
good faith and consistent with the Managing Standard.

 

(iii)
The Manager shall not manage, control, use, sell,
reinvest, dispose of or otherwise deal with any part of the Collateral except in accordance with the powers granted to, and the
authority conferred upon, the Manager pursuant to this Agreement or the other Transaction Documents.

 

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(e)
Limitations on the Manager’s Liabilities,
Duties and Responsibilities. Subject to Section 2.7 and except for any loss, liability, expense, damage, action, suit
or injury arising out of, or resulting from, (i) any breach or default by the Manager in the observance or performance of any
of its agreements contained in this Agreement or the other Relate Documents, (ii) the breach by the Manager of any representation,
warranty or covenant made by it herein or (iii) acts or omissions constituting the Manager’s own bad faith, negligence or
willful misconduct, in the performance of its duties hereunder or under the other Transaction Documents or otherwise, neither
the Manager nor any of its Affiliates, managers, officers, members or employees shall be liable to any Securitization Entity,
the Noteholders or any other Person under any circumstances, including: (1) for any action taken or omitted to be taken by the
Manager in good faith in accordance with the instructions of the Trustee, the Control Party or the Back-Up Manager; (2) for any
representation, warranty, covenant, agreement or Indebtedness of any Securitization Entity under the Notes, any other Transaction
Documents or the Managed Documents, or for any other liability or obligation of any Securitization Entity; (3) for the validity
or sufficiency of this Agreement or the due execution hereof by any party hereto other than the Manager, or the form, character,
genuineness, sufficiency, value or validity of any part of the Collateral (including the creditworthiness of any Franchisee, lessee
or other obligor thereunder), or for, or in respect of, the validity or sufficiency of the Transaction Documents; and (4) for
any action or inaction of the Trustee, the Back-Up Manager or the Control Party or for the performance of, or the supervision
of the performance of, any obligation under this Agreement or any other Transaction Document that is required to be performed
by the Trustee, the Back-Up Manager or the Control Party.

 

(f)
No Financial Liability. No provision of
this Agreement (other than Sections 2.6, 2.7, 4.3(d)(i) and 4.3(e)) shall require the Manager to expend
or risk its funds or otherwise incur any financial liability in the performance of any of its rights or powers hereunder, if the
Manager shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability
is not compensated by the payment of the Monthly Management Fee and is otherwise not reasonably assured or provided to the Manager.
Further, the Manager shall not be obligated to perform any services not enumerated or otherwise contemplated hereunder, unless
the Manager determines that it is more likely than not that it shall be reimbursed for all of its expenses incurred in connection
with such performance. The Manager shall not be liable under the Notes and shall not be responsible for any amounts required to
be paid by the Securitization Entities under or pursuant to the Indenture.

 

(g)
Reliance. The Manager may, reasonably
and in good faith, conclusively rely on, and shall be protected in acting or refraining from acting when doing so, in each case
in accordance with any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond
or other document or paper reasonably believed by it to be genuine and believed by it to be signed by the proper party or parties
other than its Affiliates. The Manager may reasonably accept a certified copy of a resolution of the board of directors or other
governing body of any corporate or other entity other than its Affiliates as conclusive evidence that such resolution has been
duly adopted by such body and that the same is in full force and effect. As to any fact or matter the manner or ascertainment
of which is not specifically prescribed herein, the Manager may in good faith for all purposes hereof reasonably rely on a certificate,
signed by any Authorized Officer of the relevant party, as to such fact or matter, and such certificate reasonably relied upon
in good faith shall constitute full protection to the Manager for any action taken or omitted to be taken by it in good faith
in reliance thereon.

 

(h)
Consultations with Third Parties; Advice of
Counsel. In the exercise and performance of its duties and obligations hereunder or under any of the Transaction Documents,
the Manager (A) may act directly or through agents or attorneys pursuant to agreements entered into with any of them; provided
that the Manager shall remain primarily liable hereunder for the acts or omissions of such agents or attorneys and (B) may, at
the expense of the Manager, consult with external counsel or accountants selected and monitored by the Manager in good faith and
in the absence of negligence, and the Manager shall not be liable for anything done, suffered or omitted in good faith by it in
accordance with the advice or opinion of any such external counsel or accountants with respect to legal or accounting matters.

 

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(i)
Independent Contractor. In performing
its obligations as manager hereunder the Manager acts solely as an independent contractor of the Securitization Entities, except
to the extent the Manager is deemed to be an agent of the Securitization Entities by virtue of engaging in franchise sales activities,
as a broker, or receiving payments on behalf of the Securitization Entities, as applicable. Nothing in this Agreement shall, or
shall be deemed to, create or constitute any joint venture, partnership, employment, or any other relationship between the Securitization
Entities and the Manager other than the independent contractor contractual relationship established hereby. Nothing herein shall
be deemed to vest in the Manager title to any of the Securitization IP. Except as otherwise provided herein or in the other Transaction
Documents, the Manager shall not be, nor shall be deemed to be, liable for any acts or obligations of the Securitization Entities,
the Trustee, the Back-Up Manager or the Control Party (except as set forth in Section 2.3 hereof).

 

Section
4.4 Merger and Resignation.

 

(a)
Preservation of Existence. The Manager
shall not merge into any other Person or convey, transfer or lease substantially all of its assets; provided, however, that nothing
contained in this Agreement shall be deemed to prevent (i) the merger into the Manager of another Person, (ii) the consolidation
of the Manager and another Person, (iii) the merger of the Manager into another Person or (iv) the sale of substantially all of
the property or assets of the Manager to another Person, so long as (A) the surviving Person of the merger or consolidation or
the purchaser of the assets of the Manager shall continue to be engaged in the same line of business as the Manager and shall
have the capacity to perform its obligations hereunder with at least the same degree of care, skill and diligence as measured
by customary practices with which the Manager is required to perform such obligations hereunder, (B) in the case of a merger,
consolidation or sale, the surviving Person of the merger or the purchaser of the assets of the Manager shall expressly assume
the obligations of the Manager under this Agreement and expressly agree to be bound by all other provisions applicable to the
Manager under this Agreement in a supplement to this Agreement in form and substance reasonably satisfactory to the Trustee and
the Control Party and (C) with respect to such event, in and of itself, the Rating Agency Condition has been satisfied.

 

(b)
Resignation. The Manager shall not resign
from the rights, powers, obligations and duties hereby imposed on it except upon determination that (A) the performance of its
duties hereunder is no longer permissible under applicable Requirements of Law and (B) there is no reasonable action that the
Manager could take to make the performance of its duties hereunder permissible under applicable Requirements of Law. Any such
determination permitting the resignation of the Manager pursuant to clause (A) above shall be evidenced by an Opinion of
Counsel to such effect delivered to the Trustee, the Back-Up Manager and the Control Party. No such resignation shall become effective
until a Successor Manager shall have assumed the responsibilities and obligations of the Manager in accordance with Section
6.1(a). The Trustee, the Securitization Entities, the Back-Up Manager, the Control Party and the Rating Agencies shall be
notified of such resignation in writing by the Manager. From and after such effectiveness, the Successor Manager shall be, to
the extent of the assignment, the “Manager” hereunder. Except as provided above in this Section 4.4 the Manager
may not assign this Agreement or any of its rights, powers, duties or obligations hereunder.

 

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(c)
Term of Manager’s Obligations. Except
as provided in Section 4.4(a) and Section 4.4(b), the duties and obligations of the Manager under this Agreement
commenced on the Closing Date, are continuing on the Effective Date and shall continue until this Agreement shall have been terminated
as provided in Section 6.1(a) or Section 8.1, and shall survive the exercise by any Securitization Entity, the Trustee
or the Control Party of any right or remedy under this Agreement (other than the right of termination pursuant to Section 6.1(a)),
or the enforcement by any Securitization Entity, the Trustee, the Back-Up Manager, the Control Party, the Controlling Class Representative
or any Noteholder of any provision of the Indenture, the Notes, this Agreement or the other Transaction Documents.

 

Section
4.5 Notice of Certain Events. The Manager
shall give written notice to the Trustee, the Back-Up Manager, the Control Party and the Rating Agencies promptly upon the occurrence
of any of the following events (but in any event no later than five (5) Business Days after the Manager has Actual Knowledge of
the occurrence of such an event): (a) the Manager, the Securitization Entities or any Affiliate thereof shall engage in any “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (b) any “accumulated
funding deficiency” or failure to meet “minimum funding standard” (as defined in Section 302 of ERISA), whether
or not waived, shall exist with respect to any Plan, or any Lien in favor of the PBGC or a Plan shall arise on the assets of either
the Securitization Entities or any Affiliate thereof, (c) a Reportable Event shall occur with respect to, or proceedings shall
commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan,
which Reportable Event or commencement of proceedings or appointment of a trustee is, in the reasonable opinion of the Control
Party, likely to result in the termination of such Plan for purposes of Title IV of ERISA, (d) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (e) the Manager, the Securitization Entities or any Affiliate thereof incur, or in
the reasonable opinion of the Control Party are likely to incur, any liability in connection with a complete or partial withdrawal
from, or the Insolvency, Reorganization or termination of, a Multiemployer Plan; (f) any other event or condition shall occur
or exist with respect to a Plan (but in each case in clauses (a) through (f) above, only if such event or condition, together
with all other such events or conditions, if any, would reasonably be expected to result in a Material Adverse Effect); (g) a
Manager Termination Event, an Event of Default or Rapid Amortization Event or any event which would, with the passage of time
or giving of notice or both, would become one or more of the same; or (h) any action, suit, investigation or proceeding pending
or, to the Actual Knowledge of the Manager, threatened in writing against or affecting the Manager, before or by any court, administrative
agency, arbitrator or governmental body having jurisdiction over the Manager or any of its properties either asserting the illegality,
invalidity or unenforceability of any of the Transaction Documents, seeking any determination or ruling that would affect the
legality, binding effect, validity or enforceability of any of the Transaction Documents or that would reasonably be expected
to result in a Material Adverse Effect.

 

Section
4.6 Capitalization. The Manager shall have
sufficient capital to perform all of its obligations under this Agreement at all times from the Closing Date and until the Indenture
has been terminated in accordance with the terms thereof.

 

Section
4.7 Maintenance of Separateness. The Manager
covenants that, except as otherwise contemplated by the Transaction Documents:

 

(a)
the books and records of the Securitization Entities
shall be maintained separately from those of the Manager and each of its Affiliates that is not a Securitization Entity;

 

(b)
the Manager shall observe (and shall cause each
of its Affiliates that is not a Securitization Entity to observe) corporate and limited liability company formalities in its dealings
with any Securitization Entity;

 

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(c)
all financial statements of the Manager that
are consolidated to include any Securitization Entity and that are distributed to any party shall contain detailed notes clearly
stating that (i) all of such Securitization Entity’s assets are owned by such Securitization Entity and (ii) such Securitization
Entity is a separate entity and has separate creditors;

 

(d)
except as contemplated under Sections 2.2(d),
2.2(e), 2.2(f) and 2.2(g), of this Agreement, the Manager shall not (and shall not permit any of its Affiliates
that is not a Securitization Entity to) commingle its funds with any funds of any Securitization Entity; provided that the foregoing
shall not prohibit the Manager or any successor to or assignee of the Manager from holding funds of the Securitization Entities
in its capacity as Manager for such entity in a segregated account identified for such purpose;

 

(e)
the Manager shall (and shall cause each of its
Affiliates that is not a Securitization Entity to) maintain arm’s length relationships with each Securitization Entity,
and each of the Manager and each of its Affiliates that is not a Securitization Entity shall be compensated at market rates for
any services it renders or otherwise furnishes to any Securitization Entity, it being understood that the Monthly Management Fee,
the Supplemental Management Fee, this Agreement, and the Collateral Documents are representative of such arm’s length relationship;

 

(f)
the Manager shall not be, and shall not hold
itself out to be, liable for the debts of any Securitization Entity or the decisions or actions in respect of the daily business
and affairs of any Securitization Entities and the Manager shall not permit any Securitization Entities to hold the Manager out
to be liable for the debts of such Securitization Entity or the decisions or actions in respect of the daily business and affairs
of such Securitization Entity; and

 

(g)
upon an officer or other responsible party of
the Manager obtaining Actual Knowledge that any of the foregoing provisions in this Section 4.7 has been breached or violated
in any material respect, the Manager shall promptly notify the Trustee, the Back-Up Manager, the Control Party and the Rating
Agencies of same and shall take such actions as may be reasonable and appropriate under the circumstances to correct and remedy
such breach or violation as soon as reasonably practicable under such circumstances.

 

Article
V

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

Section
5.1 Representations and Warranties Made in
Respect of New Assets.

 

(a)
New Franchise Agreements. As of the applicable
New Asset Addition Date with respect to a New Franchise Agreement acquired or entered into on such New Asset Addition Date, the
Manager shall represent and warrant to the Securitization Entities, the Trustee and the Control Party that:

 

(i)
such New Franchise Agreement does not contain
terms and conditions that are reasonably expected to result in (A) a material decrease in the amount of Collections or Retained
Collections constituting Franchisee Payments, taken as a whole, (B) a material adverse change in the nature, quality or timing
of Collections constituting Franchisee Payments, taken as a whole, or (C) a material adverse change in the types of underlying
assets generating Collections constituting Franchisee Payments, taken as a whole, in each case when compared to the amount, nature
or quality of, or types of assets generating, Collections that could have been reasonably expected to result had such New Franchise
Agreement been entered into in accordance with the then-current Franchise Documents; (ii) such New Franchise Agreement is genuine,
and is the legal, valid and binding obligation of the parties thereto and is enforceable against the parties thereto in accordance
with its terms (except as such enforceability may be limited by bankruptcy or insolvency laws and by general principles of equity,
regardless of whether such enforceability shall be considered in a proceeding in equity or at law); (iii) such New Franchise Agreement
complies in all material respects with all applicable Requirements of Law; (iv) the Franchisee related to such agreement is not
the subject of a bankruptcy proceeding; (v) royalty fees payable pursuant to such New Franchise Agreement are payable by the related
Franchisee at least monthly; (vi) except as required by applicable Requirements of Law, such New Franchise Agreement contains
no contractual rights of set-off; and

 

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(ii)
except as required by applicable Requirements
of Law, such New Franchise Agreement is freely assignable by the applicable Securitization Entities.

 

(b)
New Product Sourcing Agreements. As of
the applicable New Asset Addition Date with respect to a New Product Sourcing Agreement acquired or entered into on such New Asset
Addition Date, the Manager shall represent and warrant to the Securitization Entities, the Trustee and the Control Party that:
(i) such New Product Sourcing Agreement is genuine, and is the legal, valid and binding obligation of the parties thereto and
is enforceable against the parties thereto in accordance with its terms (except as such enforceability may be limited by bankruptcy
or insolvency laws and by general principles of equity, regardless of whether such enforceability shall be considered in a proceeding
in equity or at law) and (ii) such New Product Sourcing Agreement complies in all material respects with all applicable Requirements
of Law.

 

(c)
New Owned Real Property. As of the applicable
New Asset Addition Date with respect to New Owned Real Property acquired on such date, the Manager shall represent and warrant
to the Securitization Entities and the Trustee that: (i) the applicable Franchise Entity holds fee simple title to the premises
of such New Owned Real Property, free and clear of all Liens (other than Permitted Liens); (ii) such New Owned Real Property is
leased or expected to be leased to a Franchisee or (in the case of the site of a Company Restaurant) a Non-Securitization Entity;
(iii) the applicable Franchise Entity is not in material default in any respect in the performance, observance or fulfillment
of any obligations, covenants or conditions applicable to such New Owned Real Property, the violation of which could create a
reversion of title to such New Owned Real Property to any Person; (iv) to the Manager’s Actual Knowledge, the use of such
New Owned Real Property complies in all material respects with all applicable legal requirements, including building and zoning
ordinances and codes and the certificate of occupancy issued for such property; (v) neither the applicable Franchise Entity nor,
to the Actual Knowledge of the Manager, any Person leasing such property from the applicable Franchise Entity, is in material
default under any lease of such property and no condition or event exists, that, after the notice or lapse of time or both, would
constitute a material default thereunder by such Franchise Entity or, to the Actual Knowledge of the Manager, by any other party
thereto; (vi) no condemnation or similar proceeding has been commenced nor, to the Actual Knowledge of the Manager, is threatened
with respect to all or any material portion of such New Owned Real Property; (vii) all material certifications, permits, licenses
and approvals, including certificates of completion and occupancy permits required for the legal use, occupancy and operation
of the Branded Restaurant on such New Owned Real Property, if such property is open for business, have been obtained and are in
full force and effect; and (viii) the Manager has paid, caused to be paid, or confirmed that all taxes required to be paid by
the applicable Franchise Entity in connection with the acquisition of such New Owned Real Property have been paid in full from
funds of the Securitization Entities.

 

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(d)
New Leased Real Property. As of the applicable
New Asset Addition Date with respect to New Franchised Restaurant Leases (“New Leased Real Property”)
acquired or entered into on such New Asset Addition Date, the Manager shall represent and warrant to the Securitization Entities
and the Trustee that: (i) if applicable, such New Leased Real Property is sub-leased by the applicable Franchise Entity to a Franchisee
or (in the case of the site of a Company Restaurant) a Non-Securitization Entity; (ii) if requested by the Trustee or the Control
Party in writing, the Manager will make available to the Trustee or Control Party, as applicable, full and complete copies of
the lease documents related to such New Leased Real Property; (iii) no material default by the applicable Franchise Entity, or
to the Actual Knowledge of the Manager, by any other party, exists under any provision of such lease, and no condition or event
exists, that, after the notice or lapse of time or both, would constitute a material default thereunder by such Franchise Entity
or, to the Actual Knowledge of the Manager, by any other party; (iv) to Manager’s Actual Knowledge, such New Leased Real
Property, and the use thereof, complies in all material respects with all applicable legal requirements, including building and
zoning ordinances and codes and the certificate of occupancy issued for such property; (v) neither the applicable Franchise Entity,
nor, to the Actual Knowledge of the Manager, the related sub-lessee has committed any act or omission affording any Governmental
Authority the right of forfeiture against such property; (vi) no condemnation or similar proceeding has been commenced nor, to
the Actual Knowledge of the Manager, is threatened with respect to all or any material portion of such New Leased Real Property;
(vii) all policies of insurance (a) required to be maintained by the applicable Franchise Entity under such lease and (b) to the
Actual Knowledge of the Manager, required to be maintained by the Franchisee under the related sub-lease, if applicable, are valid
and in full force and effect; and (viii) all material certifications, permits, licenses and approvals, including certificates
of completion and occupancy permits required for the legal use, occupancy and operation of the Branded Restaurant on such New
Leased Real Property, if such property is open for business, have been obtained and are in full force and effect;.

 

(e)
The Manager has not since the Closing Date and
will not enter into any lease included in the New Real Estate Assets after the Closing Date which (i) requires Manager or its
Affiliates (other than the Securitization Entities) to provide a guaranty of any obligation of any Securitization Entity or (ii)
includes any event of default under such lease on the part of any Securitization Entity due to a bankruptcy of Manager or its
Affiliates (other than the Securitization Entities).

 

Section
5.2 Assets Acquired After the Closing Date.

 

(a)
The Manager has caused and will be required to
continue to cause the applicable Franchise Entity to enter into or acquire each of the following, to the extent entered into or
acquired after the Closing Date: (a) all New Franchise Agreements, New Development Agreements and New Product Sourcing Agreements,
(b) all Securitization IP and (c) all New Real Estate Assets. The Manager may, but shall not be obligated to, cause the Securitization
Entities to enter into, develop or acquire assets other than the foregoing from time to time; provided that the entry into, development
or acquisition of any material assets that are not reasonably ancillary to the restaurant business or the foodservice industry
shall require the prior satisfaction of the Rating Agency Condition and the prior written consent of the Control Party (acting
at the direction of the Controlling Class Representative). Unless otherwise agreed to in writing by the Control Party (acting
at the direction of the Controlling Class Representative), the entry into, development or acquisition of assets by the Securitization
Entities will be subject to all applicable provisions of the Indenture, this Management Agreement, the IP License Agreements and
the other relevant Transaction Documents.

 

    	 	32	 

    	 	 	 

    

 

(b)
Unless otherwise agreed to in writing by the
Control Party (acting at the direction of the Controlling Class Representative), any contribution to, or development or acquisition
by, any Franchise Entity of assets obtained after the Closing Date described in Section 5.2(a) shall be subject to all
applicable provisions of the Indenture, this Agreement (including the applicable representations and warranties and covenants
in Articles II and V of this Agreement), the IP License Agreements and the other Transaction Documents. Any Franchise
Agreement that is obtained after the Closing Date as described in Section 5.2(a) shall be deemed to be a New Franchise
Agreement for the purposes of this Agreement.

 

Section
5.3 Securitization IP. All Securitization IP shall be owned solely by the applicable Franchise Entity and shall not
be assigned, transferred or licensed out by the Franchise Entity or Franchise Entities to any other entity other than as permitted
or provided under the Transaction Documents.

 

Section
5.4 Restrictions on Liens. The Manager shall not, and shall not permit any of its Subsidiaries to, create, incur,
assume, permit or suffer to exist any Lien (other than Liens in favor of the Trustee for the benefit of the Secured Parties and
any Permitted Lien set forth in clauses (a), (b) or (k) of the definition thereof) upon the Equity Interests of any Securitization
Entity.

 

Article
VI

MANAGER
TERMINATION EVENTS

 

Section
6.1 Manager Termination Events.

 

(a)
Manager Termination Events. Any of the
following acts or occurrences shall constitute a “Manager Termination Event” under this Agreement, the assertion
as to the occurrence of which may be made, and notice of which may be given, by either a Securitization Entity, the Back-Up Manager,
the Control Party (acting at the direction of the Controlling Class Representative) or the Trustee (acting at the direction of
the Control Party):

 

(i)
any failure by the Manager to remit a payment
required to be deposited from a Concentration Account to the Collection Account or any other Indenture Trust Account, within three
(3) Business Days of the later of (a) its Actual Knowledge of its receipt thereof and (b) the date such deposit is required to
be made pursuant to the Transaction Documents; provided that any inadvertent failure to remit such a payment shall not be a breach
of this clause (i) if in an amount less than $250,000 and corrected within three (3) Business Days after the Manager obtains
Actual Knowledge thereof (it being understood that the Manager will not be responsible for the failure of the Trustee to remit
funds that were received by the Trustee from or on behalf of the Manager in accordance with the applicable Transaction Documents);

 

(ii)
the DSCR as calculated as of any Quarterly Calculation
Date is less than 1.20x (for this purpose, clause (C) of the definition of “Debt Service” shall not apply when
calculating the DSCR);

 

(iii)
any failure by the Manager to provide any required
certificate or report set forth in Sections 4.1(a), (c), (d), (e), (f), (g) or (h)
of the Base Indenture within three (3) Business Days of its due date;

 

(iv)
a material default by the Manager in the due
performance and observance of any provision of this Agreement or any other Transaction Document (other than as described above)
to which it is party and the continuation of such default for a period of 30 days after the Manager has been notified thereof
in writing by any Securitization Entity or the Control Party; provided, however, that as long as the Manager is diligently attempting
to cure such default (so long as such default is capable of being cured), such cure period shall be extended by an additional
period as may be required to cure such default, but in no event by more than an additional 30 days;

 

    	 	33	 

    	 	 	 

    

 

(v)
any representation, warranty or statement of
the Manager made in this Agreement or any other Transaction Document or in any certificate, report or other writing delivered
pursuant thereto that is not qualified by materiality or the definition of “Material Adverse Effect” proves to be
incorrect in any material respect, or any such representation, warranty or statement of the Manager that is qualified by materiality
or the definition of “Material Adverse Effect” proves to be incorrect, in each case as of the time when the same was
made or deemed to have been made or as of any other date specified in such document or agreement; provided that if any such breach
is capable of being remedied within 30 days after the Manager has obtained Actual Knowledge of such breach or the Manager’s
receipt of written notice thereof, then a Manager Termination Event shall only occur under this clause (v) as a result
of such breach if it is not cured in all material respects by the end of such 30-day period;

 

(vi)
an Event of Bankruptcy with respect to the Manager
shall have occurred;

 

(vii)
any final, non-appealable order, judgment or
decree is entered in any proceedings against the Manager by a court of competent jurisdiction decreeing the dissolution of the
Manager and such order, judgment or decree remains unstayed and in effect for more than ten days;

 

(viii)
a final non-appealable judgment for an amount
in excess of $15,000,000 (exclusive of any portion thereof which is insured) is rendered against the Manager by a court of competent
jurisdiction and is not discharged or stayed within 60 days of the date when due;

 

(ix)
an acceleration of more than $15,000,000 of the
Indebtedness of the Manager which Indebtedness has not been discharged or which acceleration has not been rescinded and annulled;

 

(x)
this Agreement or a material portion thereof
ceases to be in full force and effect or enforceable in accordance with its terms (other than in accordance with the express termination
provisions hereof) or the Manager asserts as much in writing; or

 

(xi)
the occurrence of a Change in Management following
the occurrence of a Change of Control.

 

If
a Manager Termination Event has occurred and is continuing, the Control Party (acting at the direction of the Controlling Class
Representative) may direct the Trustee in writing to terminate the Manager in its capacity as such by the delivery of a termination
notice (a “Termination Notice”) to the Manager (with a copy to each of the Securitization Entities,
the Back-Up Manager and the Rating Agencies); provided that the delivery of a Termination Notice shall not be required in the
circumstances set forth in clause (vi) or (vii) above. If the Trustee, acting at the direction of the Control Party
(acting at the direction of the Controlling Class Representative), delivers a Termination Notice to the Manager pursuant to this
Agreement (or automatically upon the occurrence of any Manager Termination Event relating to the Manager Termination Events described
in clause (vi) or (vii) above), all rights, powers, duties, obligations and responsibilities of the Manager under
this Agreement and the other Transaction Documents, including with respect to the Accounts or otherwise, will vest in and be assumed
by the Successor Manager appointed by the Control Party (acting at the direction of the Controlling Class Representative). If
no Successor Manager has been appointed by the Control Party (acting at the direction of the Controlling Class Representative),
the Back-Up Manager will serve as the Successor Manager and will work with the Control Party to implement a transition plan until
a Successor Manager (other than the Back-Up Manager) has been appointed by the Control Party (acting at the direction of the Controlling
Class Representative). By its signature below, the Back-Up Manager hereby agrees to perform all of its duties and obligations
as set forth in this Agreement, including, without limitation, serving as, and performing the duties and obligations of, the Successor
Manager hereunder and under the other applicable Transaction Documents under the circumstances contemplated by this Section 6.1.
Notwithstanding anything to the contrary contained herein or in any other Transaction Document, in no event shall the Trustee
(A) be obligated to become (or be deemed to be) the Manager or Successor Manager or (B) have any obligation or responsibility
to perform any of the duties or obligations of the Manager or Successor Manager.

 

    	 	34	 

    	 	 	 

    

 

(b)
From and during the continuation of a Manager
Termination Event, each Securitization Entity and the Trustee (acting at the direction of the Control Party) are hereby irrevocably
authorized and empowered to execute and deliver, on behalf of the Manager, as attorney-in-fact or otherwise, all documents and
other instruments (including any notices to Franchisees deemed necessary or advisable by the applicable Securitization Entity
or the Control Party), and to do or accomplish all other acts or take other measures necessary or appropriate, to effect such
vesting and assumption.

 

Section
6.2 Manager Termination Event Remedies. If the Trustee, acting at the written direction of the Control Party (acting at
the direction of the Controlling Class Representative), delivers a Termination Notice to the Manager pursuant to Section 6.1(a)
(or automatically upon the occurrence of any Manager Termination Event described in clauses (vi) or (vii) of Section 6.1(a)),
all rights, powers, duties, obligations and responsibilities of the Manager under this Agreement and the other Transaction Documents,
including with respect to the Managed Assets, the Indenture Trust Accounts, the Management Accounts, the Advertising Fund Accounts
or otherwise shall vest in and be assumed by the Successor Manager.

 

Section
6.3 Manager’s Transitional Role.

 

(a)
Disentanglement. Following the delivery
of a Termination Notice to the Manager pursuant to Section 6.1(a) or Section 6.2 above or notice of resignation
of the Manager pursuant to Section 4.4(b), the Manager shall cooperate with the Back-Up Manager and the Control Party in
connection with the implementation of a transition plan and the complete transition to a Successor Manager, without interruption
or adverse impact on the provision of Services (the “Disentanglement”). The Manager shall cooperate
fully with the Successor Manager and otherwise promptly take all actions required to assist in effecting a complete Disentanglement
and shall follow any directions that may be provided by the Back-Up Manager and the Control Party. The Manager shall provide all
information and assistance regarding the terminated Services required for Disentanglement, including data conversion and migration,
interface specifications, and related professional services. All services relating to Disentanglement, including all reasonable
training for personnel of the Back-Up Manager, the Successor Manager or the Successor Manager’s designated alternate service
provider in the performance of the Services, will be deemed a part of the Services to be performed by the Manager.

 

(b)
Fees and Charges for the Disentanglement Services.
So long as the Manager continues to provide the Services during the Disentanglement Period, the Manager will continue to be paid
the Monthly Management Fee. Following the Disentanglement Period, the Manager shall be entitled to reimbursement of its actual
costs for the provision of any Disentanglement services.

 

    	 	35	 

    	 	 	 

    

 

(c)
Duration of Obligations. The Manager’s
obligation to provide Disentanglement services will continue during the period commencing on the date that a Termination Notice
is delivered and ending on the date on which the Successor Manager or the re-engaged Manager assumes all of the obligations of
the Manager hereunder (the “Disentanglement Period”).

 

(d)
Sub-managing Arrangements; Authorizations.

 

(i)
With respect to each Sub-managing Arrangement
and unless the Control Party elects to terminate such Sub-managing Arrangement in accordance with Section 2.10, the Manager
shall: (x) assign to the Successor Manager (or such Successor Manager’s designated alternate service provider) all of the
Manager’s rights under such Sub-managing Arrangement to which it is party used by the Manager in performance of the transitioned
Services; and (y) procure any third party authorizations necessary to grant the Successor Manager (or such Successor Manager’s
designated alternate service provider) the use and benefit of such Sub-managing Arrangement to which it is party (used by the
Manager in performing the transitioned Services), pending their assignment to the Successor Manager under this Agreement.

 

(ii)
If the Control Party elects to terminate such
Sub-managing Arrangement in accordance with Section 2.10, the Manager shall take all reasonable actions necessary or reasonably
requested by the Control Party to accomplish a complete transition of the Services performed by such Sub-manager to the Successor
Manager, or to any alternate service provider designated by the Control Party, without interruption or adverse impact on the provision
of Services.

 

Section
6.4 Intellectual Property. Within thirty (30) days of termination of this Agreement for any reason, the Manager shall deliver
and surrender up to the Franchise Entities (with a copy to the Successor Manager and the Control Party) any and all products,
materials, or other physical objects containing the Trademarks included in the Securitization IP or Confidential Information of
the Franchise Entities and any copies of copyrighted works included in the Securitization IP in the Manager’s possession
or control, and shall terminate all use of all Securitization IP, including Trade Secrets; provided that (for the avoidance of
doubt) any rights granted to Manager and the other Non-Securitization Entities as licensees pursuant to the Manager IP Licenses
and the Company Restaurant Licenses shall continue pursuant to the terms thereof notwithstanding the termination of this Agreement
and/or Manager’s role as Manager. 

 

Section
6.5 Third Party Intellectual Property. The Manager shall assist and fully cooperate with the Successor Manager or its designated
alternate service provider in obtaining any necessary licenses or consents to use any third party Intellectual Property then being
used by the Manager or any Sub-manager. The Manager shall assign any such license or sublicense directly to the Successor Manager
or its designated alternate service provider to the extent the Manager has the rights to assign such agreements to the Successor
Manager or such service provider without incurring any additional cost. 

 

Section
6.6 No Effect on Other Parties. Upon any termination of the rights and powers of the Manager from time to time pursuant
to Section 6.1 or upon any appointment of a Successor Manager, all the rights, powers, duties, obligations, and responsibilities
of the Securitization Entities or the Trustee under this Agreement, the Indenture and the other Transaction Documents shall remain
unaffected by such termination or appointment and shall remain in full force and effect thereafter, except as otherwise expressly
provided in this Agreement or in the Indenture.

 

    	 	36	 

    	 	 	 

    

 

Section
6.7 Rights Cumulative. All rights and remedies from time to time conferred upon or reserved to the Securitization Entities,
the Trustee, the Control Party, the Back-Up Manager and the Noteholders or to any or all of the foregoing are cumulative, and
none is intended to be exclusive of another or any other right or remedy which they may have at law or in equity. Except as otherwise
expressly provided herein, no delay or omission in insisting upon the strict observance or performance of any provision of this
Agreement, or in exercising any right or remedy, shall be construed as a waiver or relinquishment of such provision, nor shall
it impair such right or remedy. Every such right and remedy may be exercised from time to time and as often as deemed expedient. 

 

Article
VII

CONFIDENTIALITY

 

Section
7.1 Confidentiality.

 

(a)
Each of the parties hereto acknowledges that
during the Term of this Agreement such party (the “Recipient”) may receive Confidential Information
from another party hereto (the “Discloser”). Each such party (except for the Trustee, whose confidentiality
obligations shall be governed in accordance with the Indenture) agrees to maintain the Confidential Information of the other party
in the strictest of confidence and shall not, except as otherwise contemplated herein, at any time, use, disseminate or disclose
any Confidential Information to any Person other than (i) its officers, directors, managers, employees, agents, advisors or representatives
(including legal counsel and accountants) or (ii) in the case of the Manager and the Securitization Entities, Franchisees and
prospective Franchisees, suppliers or other service providers under written confidentiality agreements that contain provisions
at least as protective as those set forth in this Agreement. The Recipient shall be liable for any breach of this Section 7.1
by any of its officers, directors, managers, employees, agents, advisors, representatives, Franchisees and prospective Franchisees,
suppliers or other services providers and shall immediately notify Discloser in the event of any loss or disclosure of any Confidential
Information of the Discloser. Upon termination of this Agreement, Recipient shall return to the Discloser, or at Discloser’s
request, destroy, all documents and records in its possession containing the Confidential Information of the Discloser. Confidential
Information shall not include information that: (A) is already known to Recipient without restriction on use or disclosure prior
to receipt of such information from the Discloser; (B) is or becomes part of the public domain other than by breach of this Agreement
by, or other wrongful act of, the Recipient; (C) is developed by the Recipient independently of and without reference to any Confidential
Information of the Discloser; (D) is received by the Recipient from a third party who is not under any obligation to maintain
the confidentiality of such information; or (E) is required to be disclosed by applicable law, statute, rule, regulation, subpoena,
court order or legal process; provided that the Recipient shall promptly inform the Discloser of any such requirement and cooperate
with any attempt by the Discloser to obtain a protective order or other similar treatment. It shall be the obligation of Recipient
to prove that such an exception to the definition of Confidential Information exists.

 

(b)
Notwithstanding anything to the contrary contained
in Section 7.1(a), the Parties may use, disseminate or disclose Confidential Information (other than Trade Secrets) to
any Person in connection with the enforcement of rights of the Trustee or the Noteholders under the Indenture or the Transaction
Documents; provided, however, that prior to disclosing any such Confidential Information:

 

(i)
to any such Person other than in connection with
any judicial or regulatory proceeding, such Person shall agree in writing to maintain such Confidential Information in a manner
at least as protective of the Confidential Information as the terms of Section 7.1(a) and Recipient shall provide Discloser
with the written opinion of counsel that such disclosure contains Confidential Information only to the extent necessary to facilitate
the enforcement of such rights of the Trustee or the Noteholders; or

 

    	 	37	 

    	 	 	 

    

 

(ii)
to any such Person or entity in connection with
any judicial or regulatory proceeding, Recipient will (x) promptly notify Discloser of each such requirement and identify the
documents so required thereby so that Discloser may seek an appropriate protective order or similar treatment and/or waive compliance
with the provisions of this Agreement; (y) use reasonable efforts to assist Discloser in obtaining such protective order or other
similar treatment protecting such Confidential Information prior to any such disclosure; and (z) consult with Discloser on the
advisability of taking legally available steps to resist or narrow the scope of such requirement. If, in the absence of such a
protective order or similar treatment, the Recipient is nonetheless required by law to disclose any part of Discloser’s
Confidential Information, then the Recipient may disclose such Confidential Information without liability under this Agreement,
except that the Recipient will furnish only that portion of the Confidential Information which is legally required.

 

Article
VIII

MISCELLANEOUS
PROVISIONS

 

Section
8.1 Termination of Agreement. The respective
duties and obligations of the Manager and the Securitization Entities created by this Agreement commenced on the Closing Date,
are continuing on the Effective Date and shall commence on the date hereof and shall, unless earlier terminated pursuant to Section
6.1(a), terminate upon the satisfaction and discharge of the Indenture pursuant to Section 12.1 of the Base Indenture (the “Term”).
Upon termination of this Agreement pursuant to this Section 8.1, the Manager shall pay over to the applicable Securitization Entity
or any other Person entitled thereto all proceeds of the Managed Assets held by the Manager. 

 

Section
8.2 Survival. The provisions of Section
2.1(c), Section 2.7, Section 2.8, Section 5.1, Article VI or Article VII and this Section 8.2, Section 8.4, Section 8.5 and Section
8.9 shall survive termination of this Agreement. 

 

Section
8.3 Amendment. (a) This Agreement may
only be amended from time to time in writing, upon the written consent of the Trustee (acting at the direction of the Control
Party, acting at the direction of the Controlling Class Representative), the Securitization Entities, the Manager, the Back-up
Manager and the Control Party; provided that no consent of the Trustee or the Control Party shall be required in connection with
any amendment to accomplish any of the following: 

(i)
to correct or amplify the description of any
required activities of the Manager;

 

(ii)
to add to the duties or covenants of the Manager
for the benefit of any Noteholders or any other Secured Parties, or to add provisions to this Agreement so long as such action
does not modify the Managing Standard, adversely affect the enforceability of the Securitization IP, or materially adversely affect
the interests of the Noteholders;

 

(iii)
to correct any manifest error or to cure any
ambiguity, defect or provision that may be inconsistent with the terms of the Base Indenture or any other Transaction Document,
or to correct or supplement any provision herein that may be inconsistent with the terms of the Base Indenture or any offering
memorandum;

 

(iv)
to evidence the succession of another Person
to any party to this Agreement;

 

(v)
to comply with Requirements of Law; or

 

    	 	38	 

    	 	 	 

    

 

(vi)
to take any action necessary and appropriate
to facilitate the origination of new Managed Documents, the acquisition and management of Real Estate Assets, or the management
and preservation of the Managed Documents, in each case, in accordance with the Managing Standard.

 

(b)
Promptly after the execution of any such amendment,
the Manager shall send to the Trustee, the Control Party, the Back-Up Manager and each Rating Agency a conformed copy of such
amendment, but the failure to do so shall not impair or affect its validity.

 

(c)
Any such amendment or modification effected contrary
to the provisions of this Section 8.3 shall be null and void.

 

Section
8.4 Governing Law. THIS AGREEMENT SHALL
BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CHOICE OF LAW RULES
(OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

 

Section
8.5 Notices. All notices, requests or
other communications desired or required to be given under this Agreement shall be in writing and shall be sent by (a) certified
or registered mail, return receipt requested, postage prepaid, (b) national prepaid overnight delivery service, (c) telecopy or
other facsimile transmission (following with hard copies to be sent by national prepaid overnight delivery service) or electronic
mail (of a .pdf or other similar file), or (d) personal delivery with receipt acknowledged in writing, to the address set forth
in Section 14.1 of the Base Indenture. If the Indenture or this Agreement permits reports to be posted to a password-protected
website, such reports shall be deemed delivered when posted on such website. Any party hereto may change its address for notices
hereunder by giving notice of such change to the other parties hereto, with a copy to the Control Party. Any change of address
of a Noteholder shown on a Note Register shall, after the date of such change, be effective to change the address for such Noteholder
hereunder. All notices and demands to any Person hereunder shall be deemed to have been given either at the time of the delivery
thereof at the address of such Person for notices hereunder, or on the third day after the mailing thereof to such address, as
the case may be. 

 

Section
8.6 Acknowledgement. Without limiting
the foregoing, the Manager hereby acknowledges that, on the Closing Date, the Issuer has pledged to the Trustee under the Indenture
(which pledge is in full force and effect and continuing as of the Effective Date), all of its right and title to, and interest
in, this Agreement and the Collateral, and such pledge includes all of the Issuer’s rights, remedies, powers and privileges,
and all claims against the Manager, under or with respect to this Agreement (whether arising pursuant to the terms of this Agreement
or otherwise available at law or in equity), including (i) the rights of such Issuer and the obligations of the Manager hereunder
and (ii) the right, at any time, to give or withhold consents, requests, notices, directions, approvals, demands, extensions or
waivers under or with respect to this Agreement or the obligations in respect of the Manager hereunder to the same extent as such
Issuer may do. The Manager hereby consents to such pledges described above, acknowledges and agrees that (x) the Control Party
shall be a third-party beneficiary of the rights of such Issuer arising hereunder and (y) the Trustee and the Control Party may,
to the extent provided in the Indenture, enforce the provisions of this Agreement, exercise the rights of such Issuer and enforce
the obligations of the Manager hereunder without the consent of such Issuer. 

 

Section
8.7 Severability of Provisions. If one
or more of the provisions of this Agreement shall be for any reason whatever held invalid or unenforceable, such provisions shall
be deemed severable from the remaining covenants, agreements and provisions of this Agreement and such invalidity or unenforceability
shall in no way affect the validity or enforceability of such remaining provisions, or the rights of any parties hereto. To the
extent permitted by law, the parties hereto waive any provision of law that renders any provision of this Agreement invalid or
unenforceable in any respect. 

 

    	 	39	 

    	 	 	 

    

 

Section
8.8 Delivery Dates. If the due date of
any notice, certificate or report required to be delivered by the Manager hereunder falls on a day that is not a Business Day,
the due date for such notice, certificate or report shall be automatically extended to the next succeeding day that is a Business
Day. 

 

Section
8.9 Limited Recourse. The obligations
of the Securitization Entities under this Agreement are solely the limited liability company obligations of the Securitization
Entities. The Manager agrees that the Securitization Entities shall be liable for any claims that it may have against the Securitization
Entities only to the extent that funds or assets are available to pay such claims pursuant to the Indenture. 

 

Section
8.10 Binding Effect; Assignment; Third
Party Beneficiaries. The provisions of this Agreement shall be binding upon and inure to the benefit of the respective successors
and assigns of the parties hereto. Any assignment of this Agreement without the written consent of the Control Party (acting at
the direction of the Controlling Class Representative) shall be null and void. Each of the Back-Up Manager and the Control Party
is an intended third party beneficiary of this Agreement and may enforce the Agreement as though a party hereto. 

 

Section
8.11 Article and Section Headings. The
Article and Section headings herein are for convenience of reference only, and shall not limit or otherwise affect the meaning
hereof. 

 

Section
8.12 Concerning the Trustee and the Control
Party. Notwithstanding anything to the contrary herein, each of the Trustee and the Control Party shall be afforded the rights,
privileges, protections, immunities and indemnities set forth in the Indenture and the other Transaction Documents as if fully
set forth herein. 

 

Section
8.13 Counterparts. This Agreement may
be executed by the parties hereto in several counterparts (including by facsimile or other electronic means of communication),
each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one
and the same agreement. 

 

Section
8.14 Entire Agreement. This Agreement,
together with the Indenture and the other Transaction Documents and the Managed Documents constitute the entire agreement and
understanding among the parties with respect to the subject matter hereof. Any previous agreement among the parties with respect
to the subject matter hereof is superseded by this Agreement, the Indenture, the other Transaction Documents and the Managed Documents. 

 

Section
8.15 Waiver of Jury Trial; Jurisdiction; Consent
to Service of Process.

 

(a)
The parties hereto each hereby waives any right
to have a jury participate in resolving any dispute, whether in contract, tort or otherwise, arising out of, connected with, relating
to or incidental to the transactions contemplated by this Agreement.

 

(b)
The parties hereto each hereby irrevocably submits
(to the fullest extent permitted by applicable law) to the non-exclusive jurisdiction of any New York state or federal court sitting
in the borough of Manhattan, New York City, State of New York, over any action or proceeding arising out of or relating to this
Agreement or any Transaction Documents, and the parties hereto hereby irrevocably agree that all claims in respect of such action
or proceeding shall be heard and determined in such New York state or federal court. The parties hereto each hereby irrevocably
waive, to the fullest extent permitted by applicable law, any objection each may now or hereafter have, to remove any such action
or proceeding, once commenced, to another court on the grounds of forum non conveniens or otherwise.

 

(c)
Each party to this Agreement irrevocably consents
to service of process in the manner provided for notices in Section 8.5. Nothing in this Agreement shall affect the right
of any party to this Agreement to serve process in any other manner permitted by law.

 

Section
8.16 Joinder of New Franchise Entities.
In the event any Issuer shall form an Additional Franchise Entity pursuant to Section 8.34 of the Base Indenture, such Additional
Franchise Entity shall execute and deliver to the Manager and the Trustee (i) a Joinder Agreement substantially in the form of
Exhibit B and (ii) Power of Attorney in the form of Exhibit A, and such New Franchise Entity shall thereafter for all purposes
be a party hereto and have the same rights, benefits and obligations as a Franchise Entity party hereto on the Closing Date. 

 

[The
remainder of this page is intentionally left blank.]

 

    	 	40	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective officers thereunto duly
authorized as of the day and year first above written.

 

	FAT
    Brands Inc., as Manager	 	FAT
    Brands Royalty I, LLC, as Issuer
	 	 	 	By:
    FAT Brands Inc., its Manager
	 	 	 	 	 
	By:
    	/s/
    Andrew A. Wiederhorn 	 	By:
    	/s/
    Andrew A. Wiederhorn 
	Name:
    	Andrew
    A. Wiederhorn 	 	Name:
    	Andrew
    A. Wiederhorn 
	Title:
    	Chief
    Executive Officer 	 	Title:
    	Chief
    Executive Officer 
	 	 	 	 	 
	Fatburger
    North America, Inc., as a Franchise Entity	 	Buffalo’s
    Franchise Concepts, Inc., as a Franchise Entity
	 	 	 	 	 
	By:
    	/s/
    Andrew A. Wiederhorn 	 	By:
    	/s/
    Andrew A. Wiederhorn 
	Name:
    	Andrew
    A. Wiederhorn 	 	Name:
    	Andrew
    A. Wiederhorn 
	Title:
    	Chief
    Executive Officer 	 	Title:
    	Chief
    Executive Officer 
	 	 	 	 	 
	Ponderosa
    International Development, Inc., as a Franchise Entity	 	Puerto
    Rico Ponderosa, Inc., as a Franchise Entity
	 	 	 	 	 
	By:	/s/
    Andrew A. Wiederhorn 	 	By:
    	/s/
    Andrew A. Wiederhorn 
	Name:
    	Andrew
    A. Wiederhorn 	 	Name:
    	Andrew
    A. Wiederhorn 
	Title:
    	Chief
    Executive Officer 	 	Title:
    	Chief
    Executive Officer 
	 	 	 	 	 
	Ponderosa
    Franchising Company LLC, as a Franchise Entity  	 	Hurricane
    AMT, LLC, as a Franchise Entity
	By:
    	FAT
    Brands Royalty I, LLC, its Manager	 	By:
    FAT Brands Royalty I, LLC, its Manager
	By:	FAT
    Brands Inc., its Manager	 	By:
    	FAT
    Brands Inc., its Manager
	 	 	 	 	 
	By:
    	/s/
    Andrew A. Wiederhorn 	 	By:
    	/s/
    Andrew A. Wiederhorn 
	Name:
    	Andrew
    A. Wiederhorn 	 	Name:
    	Andrew
    A. Wiederhorn 
	Title:
    	Chief
    Executive Officer 	 	Title:
    	Chief
    Executive Officer 
	 	 	 	 	 
	 	 	 	 	 
	EB
    Franchises LLC, as a Franchise Entity 	 	Bonanza
    Restaurant Company LLC, as a Franchise Entity
	By:
    	FAT
    Brands Royalty I, LLC, its Manager 	 	By:
    	FAT
    Brands Royalty I, LLC, its Manager
	By:
    	FAT
    Brands Inc., its Manager	 	By:
    	FAT
    Brands Inc., its Manager
	 	 	 	 	 
	By:
    	/s/
    Andrew A. Wiederhorn 	 	By:
    	/s/
    Andrew A. Wiederhorn 
	Name:
    	Andrew
    A. Wiederhorn 	 	Name:
    	Andrew
    A. Wiederhorn 
	Title:
    	Chief
    Executive Officer 	 	Title:
    	Chief
    Executive Officer 

 

[signatures
continue on next page]

 

    	 	41	 

    	 	 	 

    

 

[signatures
continued from previous page]

 

	Yalla
    Mediterranean Franchising, LLC, as a	 
	Franchise
    Entity	 
	 	 	 
	By:	/s/
    Andrew A. Wiederhorn 	 
	Name:
    	Andrew
    A. Wiederhorn 	 
	Title:
    	Chief
    Executive Officer 	 
	 	 	 
	UMB
    Bank, N.A., as Trustee	 
	 	 
	By:	/s/
    Michele Voon 	 
	Name:	Michele
    Voon 	 
	Title:	Vice
    President 	 
	 	 	 

CONSENT
OF BACK-UP MANAGER: 

 

Vervent
Inc., as Back-Up Manager, hereby consents to the execution and delivery of this Agreement by the parties hereto.

 

	VERVENT
    INC., as Back-Up Manager	 
	 	 	 
	By:
    	/s/
    Laurence Chiavaro 	 
	Name:
    	Laurence
    Chiavaro 	 
	Title:	Executive
    Vice President 	 

 

CONSENT
OF CONTROL PARTY: 

 

Citadel
SPV LLC, as Control Party, hereby consents to the execution and delivery of this Agreement by the parties hereto, and as Control
Party hereby directs the Trustee to execute and deliver this Agreement.

 

	Citadel
    SPV LLC, as Control Party 	 
	 	 	 
	By:	/s/
    Orlando Figueroa	 
	Name:	Orlando
    Figueroa	 
	Title:
    	Senior
    Managing Director	 

 

    	 	42	 

    	 	 	 

    

 

EXHIBIT
A

 

POWER
OF ATTORNEY OF THE SECURITIZATION ENTITIES

 

Dated:
March 6, 2020

 

KNOW
ALL PERSONS BY THESE PRESENTS, that in connection with the Management Agreement, dated as of March 6, 2020 (as amended, restated,
supplemented or otherwise modified from time to time, the “Management Agreement”; all capitalized terms
used and not otherwise defined herein shall have the meanings set forth in the Management Agreement), by and among FAT Brands
Royalty I, LLC, a Delaware limited liability company (together with its successors and assigns, the “Issuer”);
each of (i) Fatburger North America, Inc., a Delaware corporation, (ii) Buffalo’s Franchise Concepts, Inc., a Delaware corporation,
(iii) Bonanza Restaurant Company LLC, a Delaware limited liability company, (iv) Ponderosa Franchising Company LLC, a Delaware
limited liability company, (v) Ponderosa International Development, Inc., a Delaware limited liability company, (vi) Puerto Rico
Ponderosa, Inc., a Delaware limited liability company, (vii) Hurricane AMT, LLC, a Delaware limited liability company, (viii)
Yalla Mediterranean Franchising, LLC, a Delaware limited liability company, and (ix) EB Franchises, LLC, a Delaware limited liability
company, and each Additional Franchise Entity that may join this Agreement pursuant to Section 8.16 hereof (each,
a “Franchise Entity” and together with their respective successors and assigns, the “Franchise
Entities” and, together with the Issuer, the “Securitization Entities”); FAT Brands Inc.,
a Delaware corporation, as Manager (the “Manager”); and UMB Bank, N.A., as the indenture trustee; and
consented to by Citadel SPV LLC, as Control Party, and Vervent Inc., as Back-Up Manager, the undersigned Franchise Entities hereby
appoint the Manager and any and all officers thereof as its true and lawful attorney in fact, with full power of substitution,
in connection with the Services (as defined in the Management Agreement) being performed with respect to the Managed Assets, with
full irrevocable power and authority in the place of each Securitization Entity and in the name of each Securitization Entity
or in its own name as agent of each Securitization Entity, to take any and all appropriate action and to execute any and all documents
and instruments that may be necessary or desirable to accomplish the foregoing, subject to the Management Agreement, including,
without limitation, the full power to:

 

a.
perform such functions and duties, and prepare and file such documents, as are required under the Indenture and the other Transaction
Documents to be performed, prepared and/or filed by the Securitization Entities, including: (i) recording such financing statements
(including continuation statements) or amendments thereof or supplements thereto or other instruments as the Trustee and the Securitization
Entities may from time to time reasonably request in order to perfect and maintain the Lien in the Collateral granted by the Securitization
Entities to the Trustee under the Transaction Documents in accordance with the UCC; and (ii) executing grants of security interests
or any similar instruments required under the Transaction Documents to evidence such Lien in the Collateral; and

 

b.
take such actions on behalf of each Securitization Entity as such Securitization Entity or Manager may reasonably request that
are expressly required by the terms, provisions and purposes of the Management Agreement; or cause the preparation by other appropriate
Persons, of all documents, certificates and other filings as each Securitization Entity shall be required to prepare and/or file
under the terms of the Transaction Documents.

 

    	 	A-1	 

    	 	 	 

    

 

With
respect to the IP Services, the undersigned Franchise Entities hereby further appoint the Manager and any and all officers thereof
as its true and lawful attorney in fact, with full power of substitution, in connection with the IP Services described below being
performed with respect to the Securitization IP, with full irrevocable power and authority in the place of the applicable Franchise
Entity that is the owner thereof and in the name of the applicable Franchise Entity or in its own name as agent of such Franchise
Entity, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the foregoing, subject to the Management Agreement, including, without limitation, the full power to perform:

 

c.
searching, screening and clearing After-Acquired Securitization IP to assess patentability, registrability and the risk of potential
infringement;

 

d.
filing, prosecuting and maintaining applications and registrations for the Securitization IP in the applicable Franchise Entity’s
name throughout the world, including timely filing of evidence of use, applications for renewal and affidavits of use and/or incontestability,
timely paying of all registration and maintenance fees, responding to third-party oppositions of applications or challenges to
registrations, and responding to any office actions, reexaminations, interferences, inter partes reviews, post grant reviews,
or other office or examiner requests, reviews or requirements;

 

e.
monitoring third-party use and registration of Trademarks and taking actions the Manager deems appropriate to oppose or contest
the use and any application or registration for Trademarks that could reasonably be expected to infringe, dilute or otherwise
violate the Securitization IP or the applicable Franchise Entity’s rights therein;

 

f.
confirming each Franchise Entity’s legal title in and to any or all of the Securitization IP, including obtaining written
assignments of Securitization IP to the applicable Franchise Entity and recording transfers of title in the appropriate intellectual
property registry throughout the world;

 

g.
with respect to each Franchise Entity’s rights and obligations under the IP License Agreements and any Transaction Documents,
monitoring the licensee’s use of each licensed Trademark and the quality of its goods and services offered in connection
with such Trademarks, rendering any approvals (or disapprovals) that are required under the applicable license agreement(s), and
employing reasonable means to ensure that any use of any such Trademarks by any such licensee satisfies the quality control standards
and usage provisions of the applicable license agreement;

 

h.
protecting, policing, and, in the event that the Manager becomes aware of any unlicensed copying, imitation, infringement, dilution,
misappropriation, unauthorized use or other violation of the Securitization IP, or any portion thereof, enforcing such Securitization
IP, including, (i) preparing and responding to cease-and-desist, demand and notice letters, and requests for a license; and (ii)
commencing, prosecuting and/or resolving claims or suits involving imitation, infringement, dilution, misappropriation, the unauthorized
use or other violation of the Securitization IP, and seeking monetary and equitable remedies as the Manager deems appropriate
in connection therewith; provided that each Franchise Entity shall, and agrees to, join as a party to any such suits to the extent
necessary to maintain standing;

 

i.
performing such functions and duties, and preparing and filing such documents, as are required under the Indenture or any other
Transaction Document to be performed, prepared and/or filed by the applicable Franchise Entity, including (i) executing and recording
such financing statements (including continuation statements) or amendments thereof or supplements thereto or such other instruments
as the Issuer or the Control Party may, from time to time, reasonably request (consistent with the obligations of the Franchise
Entities to perfect the Trustee’s lien only in the United States) in connection with the security interests in the Securitization
IP granted by each Franchise Entity to the Trustee under the Indenture and (ii) preparing, executing and delivering grants of
security interests or any similar instruments as the Issuer or the Control Party may, from time to time, reasonably request (consistent
with the obligations of the Franchise Entities to perfect the Trustee’s lien only in the United States) that are intended
to evidence such security interests in the Securitization IP and recording such grants or other instruments with the relevant
Governmental Authority including the PTO and the United States Copyright Office;

 

    	 	A-2	 

    	 	 	 

    

 

j.
taking such actions as any licensee under an IP License Agreement may request that are required by the terms, provisions and purposes
of such IP License Agreement (or by any other agreements pursuant to which the applicable Franchise Entity licenses the use of
any Securitization IP) to be taken by the applicable Franchise Entity, and preparing (or causing to be prepared) for execution
by each Franchise Entity all documents, certificates and other filings as each Franchise Entity shall be required to prepare and/or
file under the terms of such IP License Agreements (or such other agreements);

 

k.
paying or causing to be paid or discharged, from funds of the Securitization Entities, any and all taxes, charges and assessments
that may be levied, assessed or imposed upon any of the Securitization IP or contesting the same in good faith;

 

l.
obtaining licenses of third-party Intellectual Property for use and sublicense in connection with the Contributed Franchised Restaurant
Business and the other assets of the Securitization Entities;

 

m.
sublicensing the Securitization IP to suppliers, manufacturers, advertisers and other service providers in connection with the
provision of products and services for use in the Contributed Franchised Restaurant Business; and

 

n.
with respect to Trade Secrets and other confidential information of each Franchise Entity, taking all reasonable measures to maintain
confidentiality and to prevent non-confidential disclosures.

 

THIS
POWER OF ATTORNEY IS GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO POWERS OF ATTORNEY MADE AND TO BE EXERCISED
WHOLLY WITHIN SUCH STATE.

 

This
power of attorney is coupled with an interest. Capitalized terms used herein, and not defined herein shall have the meanings applicable
to such terms in the Management Agreement.

 

[NAME
OF FRANCHISE ENTITY]

 

	By:
    	 	 
	 	 	 
	Name:
    	 	 
	 	 	 
	Title:
    	 	 

 

    	 	A-3	 

    	 	 	 

    

 

A
notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

STATE
OF CALIFORNIA                                    )

                                  )
ss.

 

COUNTY
OF LOS ANGELES )

 

On
February __, 2020 before me, ____________________, Notary Public, personally appeared ________________, who proved to me on the
basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that
he/she executed the same in his/her authorized capacity/ies, and that by his/her signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS
my hand and official seal.

 

	 	__________________________________
	 	 
	 	____________,
    Notary Public

 

    	 	A-4	 

    	 	 	 

    

 

EXHIBIT
B

 

JOINDER
AGREEMENT

 

JOINDER
AGREEMENT, dated as of , 20______ (this “Joinder Agreement”), made by _____, a _____________ (the “Additional
Franchise Entity”), in favor of FAT BRANDS INC., a Delaware corporation, as Manager (the “Manager”),
and UMB BANK, N.A., as Trustee (in such capacity, together with its successors, the “Trustee”). All capitalized
terms not defined herein shall have the meaning ascribed to them in the Management Agreement (as defined below).

 

WITNESETH:

 

WHEREAS,
FAT Brands Royalty I, LLC, a Delaware limited liability company (the “Issuer”), the Trustee and UMB Bank, N.A.,
as securities intermediary, have entered into a Base Indenture dated as of the Closing Date, (as amended, restated, supplemented
or otherwise modified from time to time, exclusive of any Series Supplements, the “Base Indenture” and, together
with all Series Supplements, the “Indenture”), providing for the issuance from time to time of one or more
Series of Notes thereunder; and

 

WHEREAS,
in connection with the Base Indenture, the Issuer, the other Securitization Entities party thereto from time to time, the Manager
and the Trustee have entered into the Management Agreement, dated as of March 6, 2020 (as amended, restated, supplemented or otherwise
modified from time to time, the “Management Agreement”); and

 

WHEREAS,
the Additional Franchise Entity has agreed to execute and deliver this Joinder Agreement in order to become a party to the Management
Agreement;

 

NOW,
THEREFORE, IT IS AGREED:

 

1.
Management Agreement. By executing and delivering this Joinder Agreement, the Additional Franchise Entity, as provided
in Section 8.16 of the Management Agreement, hereby becomes a party to the Management Agreement as a Franchise Entity thereunder
with the same force and effect as if originally named therein as a Franchise Entity and, without limiting the generality of the
foregoing, hereby expressly assumes all obligations and liabilities of a Franchise Entity thereunder. Each reference to a “Franchise
Entity” in the Management Agreement shall be deemed to include the Additional Franchise Entity. The Management Agreement
is hereby incorporated herein by reference.

 

2.
Counterparts; Binding Effect. This Joinder Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which taken together shall constitute a single
contract. This Joinder Agreement shall become effective when each of the Additional Franchise Entity, the Manager and the Trustee
has executed a counterpart hereof. Delivery of an executed counterpart of a signature page of this Joinder Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this Joinder Agreement.

 

3.
Full Force and Effect. Except as expressly supplemented hereby, the Management Agreement shall remain in full force and
effect.

 

4.
Governing Law. THIS AGREEMENT 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).

 

[The
remainder of this page is intentionally left blank.]

 

    	 	B-1	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above
written.

 

	 	[NAME
    OF ADDITIONAL FRANCHISE ENTITY]
	 	 	 
	 	By:	            
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

	AGREED
    TO AND ACCEPTED	 
	 	 
	FAT
    BRANDS, INC., as Manager	 
	 	 	 
	By:
    	         	 
	 	 	 
	Name:
    	 	 
	 	 	 
	Title:	 	 
	 	 	 
	UMB
    Bank, N.A., in its capacity as Trustee	 
	 	 	 
	By:
    	 	 
	 	 	 
	Name:
    	 	 
	 	 	 
	Title:	 	 

 

    	 	B-2EDGAR HTML

      
         				

         

      

      Exhibit 4.6
      

      COMPENSATION POLICY
      

       

       

       

       

       

       

      NOVA MEASURING INSTRUMENTS LTD.
      

      Compensation Policy for Executive Officers and Directors
      

      (As Adopted on June 17, 2019) 

       

       

       

       

       

       

      

      

      Table of Contents
      

      

      
         	

                  

               	

                  Page

               
	

                  A. Overview and Objectives

               	

                  3

               
	

                  B. Base Salary and Benefits

               	

                  4

               
	

                  C. Cash Bonuses

               	

                  6

               
	

                  D. Equity Based Compensation

               	

                  8

               
	

                  E. Retirement and Termination of Service Arrangements

               	

                  9

               
	

                  F. Exculpation, Indemnification and Insurance

               	

                  10

               
	

                  G. Arrangements upon Change of Control

               	

                  11

               
	

                  H. Board of Directors Compensation

               	

                  11

               
	

                  I. Miscellaneous

               	

                  12

               

      

      

      
         

            2

         

      

      A. Overview and Objectives
      

      1.Introduction
      

      This document sets forth the Compensation Policy for Executive Officers and Directors (this “Compensation Policy”or “Policy”)of Nova Measuring Instruments Ltd. (“Nova”or the “Company”),in accordance with the requirements of the Companies Law, 5759-1999 (the “Companies Law”).
      

      Compensation is a key component of Nova’s overall human capital strategy to attract, retain, reward, and motivate highly skilled individuals that will enhance Nova’s value and otherwise assist Nova to reach its business and financial long-term goals. Accordingly, the structure of this Policy is established to tie the compensation of each officer to Nova’s goals and performance.
      

      For purposes of this Policy, “Executive Officers” shall mean “Office Holders” as such term is defined in Section 1 of the Companies Law, excluding, unless otherwise expressly indicated herein, Nova’s directors.
      

      This policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions of applicable law to the extent not permitted.
      

      This Policy shall apply to compensation agreements and arrangements which will be approved after the date on which this Policy is adopted and shall serve as Nova’s Compensation Policy for three (3) years, commencing as of its adoption.
      

      The Compensation Committee and the Board of Directors of Nova (the “Compensation Committee” and the “Board”, respectively) shall review and reassess the adequacy of this Policy from time to time, as required by the Companies Law..
      

      2.Objectives
      

      Nova’s objectives and goals in setting this Policy are to attract, motivate and retain highly experienced leaders who will contribute to Nova’s success and enhance shareholder value, while demonstrating professionalism in a highly achievement-oriented culture that is based on merit and rewards excellent performance in the long term, and embedding Nova’s core values as part of a motivated behavior. To that end, this Policy is designed, among others:
      

      2.1.To closely align the interests of the Executive Officers with those of Nova’s shareholders in order to enhance shareholder value;
      

      2.2.To align a significant portion of the Executive Officers’ compensation with Nova’s short and long-term goals and performance;
      

      2.3.To provide the Executive Officers with a structured compensation package, including competitive salaries, performance-motivating cash and equity incentive programs and benefits, and to be able to present to each Executive Officer an opportunity to advance in a growing organization;
      

      2.4.To strengthen the retention and the motivation of Executive Officers in the long term;
      

      2.5.To provide appropriate awards in order to incentivize superior individual excellency and corporate performance; and
      

      2.6.To maintain consistency in the way Executive Officers are compensated.

      

      
         

            3

         

      

      3.Compensation Instruments
      

      Compensation instruments under this Policy may include the following:
      

      3.1.Base salary;
      

      3.2.Benefits;
      

      3.3.Cash bonuses;
      

      3.4.Equity based compensation; and
      

      3.5.Retirement and termination terms.
      

      4.Overall Compensation - Ratio Between Fixed and Variable Compensation
      

      4.1.This Policy aims to balance the mix of “Fixed Compensation” (comprised of base salary and benefits) and “Variable Compensation” (comprised of cash bonuses and equity-based compensation) in order to, among other things, appropriately incentivize Executive Officers to meet Nova’s short- and long-term goals while taking into consideration the Company’s need to manage a variety of business risks.
      

      4.2.The total annual bonus and equity-based compensation of each Executive Officer shall not exceed 90% of the total compensation package of such Executive Officer on an annual basis.
      

      5.Inter-Company Compensation Ratio
      

      5.1.In the process of drafting and updating this Policy, Nova’s Board and Compensation Committee have examined the ratio between employer cost associated with the engagement of the Executive Officers, including directors, and the average and median employer cost associated with the engagement of Nova’s other employees (including contractor employees as defined in the Companies Law) (the “Ratio”).
      

      5.2.The possible ramifications of the Ratio on the daily working environment in Nova were examined and will continue to be examined by Nova from time to time in order to ensure that levels of executive compensation, as compared to the overall workforce will not have a negative impact on work relations in Nova.
      

      B. Base Salary and Benefits
      

      6.Base Salary
      

      6.1.A base salary provides stable compensation to Executive Officers and allows Nova to attract and retain competent executive talent and maintain a stable management team. The base salary varies among Executive Officers, and is individually determined according to the educational background, prior vocational experience, qualifications, company’s role, business responsibilities and the past performance of each Executive Officer.
      

      6.2.Since a competitive base salary is essential to Nova’s ability to attract and retain highly skilled professionals, Nova will seek to establish a base salary that is competitive with base salaries paid to Executive Officers in a peer group of other companies operating in technology sectors which are similar in their characteristics to Nova’s, as much as possible, while considering, among others, such companies’ size and characteristics including their revenues, profitability rate, number of employees and operating arena (in Israel or globally), the list of which shall be reviewed and approved by the Compensation Committee at least every two years. To that end, Nova shall utilize as a reference, comparative market data and practices, which will include a compensation survey that compares and analyses the level of
      

      

      
         

            4

         

      

      the overall compensation package offered to an Executive Officer of the Company with compensation packages in similar positions to that of the relevant officer) in such companies. Such compensation survey may be conducted internally or through an external independent consultant. Information on such compensation survey shall be included in the proxy statement published in connection with the annual general meeting of Nova’s shareholders.
      

      6.3.The Compensation Committee and the Board may periodically consider and approve base salary adjustments for Executive Officers. The main considerations for salary adjustment are similar to those used in initially determining the base salary, but may also include change of role or responsibilities, recognition for professional achievements, regulatory or contractual requirements, budgetary constraints or market trends. The Compensation Committee and the Board will also consider the previous and existing compensation arrangements of the Executive Officer whose base salary is being considered for adjustment.
      

      7.Benefits
      

      7.1.The following benefits may be granted to the Executive Officers in order, among other things, to comply with legal requirements:
      

      7.1.1.Vacation days in accordance with market practice;
      

      7.1.2.Sick days in accordance with market practice;
      

      7.1.3.Convalescence pay according to applicable law;
      

      7.1.4.Monthly remuneration for a study fund, as allowed by applicable law and with reference to Nova’s practice and the practice in peer group companies;
      

      7.1.5.Nova shall contribute on behalf of the Executive Officer to an insurance policy or a pension fund, as allowed by applicable law and with reference to Nova’s policies and procedures and the practice in peer group companies; and
      

      7.1.6.Nova shall contribute on behalf of the Executive Officer towards work disability insurance, as allowed by applicable law and with reference to Nova’s policies and procedures and to the practice in peer group companies.
      

      7.2.Non-Israeli Executive Officers may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which they are employed. Such customary benefits shall be determined based on the methods described in Section 6.2 of this Policy (with the necessary changes).
      

      7.3.In the event of relocation of an Executive Officer to another geography, such Executive Officer may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which he or she is employed or additional payments to reflect adjustments in cost of living. Such benefits shall include reimbursement for out of pocket one-time payments and other ongoing expenses, such as housing allowance, car allowance, and home leave visit, etc.
      

      7.4.Nova may offer additional benefits to its Executive Officers, which will be comparable to customary market practices, such as, but not limited to: cellular and land line phone benefits, company car and travel benefits, reimbursement of business travel including a daily stipend when traveling and other business related expenses, insurances, other benefits(such as newspaper subscriptions, academic and professional studies), etc., provided, however, that such additional benefits shall be determined in accordance with Nova’s policies and procedures.
      

      

      
         

            5

         

      

      C. Cash Bonuses
      

      8.Annual Cash Bonuses - The Objective
      

      8.1.Compensation in the form of an annual cash bonus is an important element in aligning the Executive Officers’ compensation with Nova’s objectives and business goals. Therefore, a pay-for-performance element, as payout eligibility and levels are determined based on actual financial and operational results, as well as individual performance.
      

      8.2.An annual cash bonus may be awarded to Executive Officers upon the attainment of pre-set periodical objectives and individual targets determined by the Compensation Committee (and, if required by law, by the Board) at the beginning of each calendar year, or upon engagement, in case of newly hired Executive Officers, taking into account Nova’s short and long-term goals, as well as its compliance and risk management policies. The Compensation Committee and the Board shall also determine applicable minimum thresholds (based on annual budget revenue and/or positive non-GAAP operating income) that must be met for entitlement to the annual cash bonus (all or any portion thereof) and the formula for calculating any annual cash bonus payout, with respect to each calendar year, for each Executive Officer. In special circumstances, as determined by the Compensation Committee and the Board (e.g., regulatory changes, significant changes in Nova’s business environment, a significant organizational change and a significant merger and acquisition events), the Compensation Committee and the Board may modify the objectives and/or their relative weights during the calendar year.
      

      8.3.The total annual cash bonuses awarded to all of Nova’s Executive Officers shall not exceed 10% of Nova’s non-GAAP operating income.
      

      8.4.In the event the employment of an Executive Officer is terminated prior to the end of a fiscal year, the Company may pay such Executive Officer a full annual cash bonus or a prorated one. Such bonus will become due on the same scheduled date for annual cash bonus payments by the Company.
      

      8.5.The actual annual cash bonus to be awarded to Executive Officers shall be approved by the Compensation Committee and the Board.
      

      9. Annual Cash Bonuses - The Formula
      

      Executive Officers other than the CEO
      

      9.1.The annual cash bonus of Nova’s Executive Officers, other than the chief executive officer (the “CEO”), will be based on performance objectives and a discretionary evaluation of the Executive Officer’s overall performance by the CEO and subject to minimum thresholds. The performance objectives will be approved by Nova’s CEO at the commencement of each calendar year (or upon engagement, in case of newly hired Executive Officers or in special circumstances as indicated in Section 8.2 above) on the basis of, but not limited to, company, division and individual objectives. The performance measurable objectives, which include the objectives and the weight to be assigned to each achievement in the overall evaluation, will be based on:
      

      9.1.1.Overall company performance measures, which are based on actual financial and operational results, such as revenues, sales, operating income and cash flow. At least 30% of the annual cash bonus of Nova’s Executive Officers will be based on overall company performance measures; and
      

      9.1.2.Divisional objectives which may include operational objectives, such as market share, initiation of new markets and products and operational efficiency, customer focus objectives, such as system availability requirements and customer satisfaction, project milestones objectives, such as product implementation in production, product acceptance and new product penetration, and investment in human capital objectives, such as employee satisfaction, employee retention and employee training and leadership programs.
      

      

      
         

            6

         

      

      9.2.Information on the CEO’s performance measurable objectives shall be included in the proxy statement published in connection with the annual general meeting of Nova’s shareholders.
      

      9.3.The target annual cash bonus that an Executive Officer, other than the CEO, will be entitled to receive for any given calendar year, will not exceed 100% of such Executive Officer’s annual base salary.
      

      9.4.The maximum annual cash bonus including for overachievement performance that an Executive Officer, other than the CEO, will be entitled to receive for any given calendar year, will not exceed 150% of such Executive Officer’s annual base salary.
      

      CEO
      

      9.5.The annual cash bonus of Nova’s CEO will be mainly based on performance measurable objectives and subject to minimum thresholds as provided in Section 8.2 above. Such performance measurable objectives will be determined annually by Nova’s Compensation Committee (and, if required by law, by Nova’s Board) at the commencement of each calendar year (or upon engagement, in case of newly hired CEO or in special circumstances as indicated in Section 8.2 above) on the basis of, but not limited to, company and personal objectives. These performance measurable objectives, which include the objectives and the weight to be assigned to each achievement in the overall evaluation, will be categorized as described below:
      

      9.5.1.Between 40%-60% will be based on overall company performance measures, which are based on actual financial and operational results, such as revenues, sales, operating income and cash flow; and
      

      9.5.2.Between 20%-50% will be based on goals set forth in the Company’s annual operating plan and long-term plan, such as expansion of the Company’s organic growth engines and achieving strategic technology objectives.
      

      9.6.The less significant part of the annual cash bonus granted to Nova’s CEO, and in any event not more than 30% of the annual cash bonus, may be based on a discretionary evaluation of the CEO’s overall performance by the Compensation Committee and the Board based on quantitative and qualitative criteria.
      

      9.7.The target annual cash bonus that the CEO will be entitled to receive for any given calendar year, will not exceed 150% of his or her annual base salary.
      

      9.8.The maximum annual cash bonus including for overachievement performance that the CEO will be entitled to receive for any given calendar year, will not exceed 200% of his or her annual base salary.
      

      10.Other Bonuses
      

      10.1.​​Special Bonus. Nova may grant its Executive Officers a special bonus as an award for special achievements (such as in connection with mergers and acquisitions, offerings, achieving target budget or business plan under exceptional circumstances or special recognition in case of retirement) at the CEO’s discretion (and in the CEO’s case, at the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Special Bonus”). The Special Bonus will not exceed 30% of the Executive Officer’s total compensation package on an annual basis.
      

      

      
         

            7

         

      

      10.2.​​Signing Bonus. Nova may grant a newly recruited Executive Officer a signing bonus at the CEO’s discretion (and in the CEO’s case, at the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Signing Bonus”). The Signing Bonus will not exceed three (3) monthly entry base salaries of the Executive Officer.
      

      10.3.​Relocation Bonus. Nova may grant its Executive Officers a special bonus in the event of relocation of an Executive Officer to another geography (the “Relocation Bonus”). The Relocation bonus will include customary benefits associated with such relocation and its monetary value will not exceed 30% of the Executive Officer’s annual base salary.
      

      11.Compensation Recovery (“Clawback”)
      

      11.1.In the event of an accounting restatement, Nova shall be entitled to recover from its Executive Officers the bonus compensation or performance-based equity compensation in the amount in which such compensation exceeded what would have been paid under the financial statements, as restated, provided that a claim is made by Nova prior to the second anniversary of fiscal year end of the restated financial statements.
      

      11.2.Notwithstanding the aforesaid, the compensation recovery will not be triggered in the following events:
      

      11.2.1.The financial restatement is required due to changes in the applicable financial reporting standards; or
      

      11.2.2.The Compensation Committee has determined that Clawback proceedings in the specific case would be impossible, impractical or not commercially or legally efficient.
      

      11.3.Nothing in this Section ‎11 derogates from any other “Clawback” or similar provisions regarding disgorging of profits imposed on Executive Officers by virtue of applicable securities laws.
      

      D. Equity Based Compensation
      

      12.The Objective
      

      12.1.The equity-based compensation for Nova’s Executive Officers is designed in a manner consistent with the underlying objectives in determining the base salary and the annual cash bonus, with its main objectives being to enhance the alignment between the Executive Officers’ interests with the long-term interests of Nova and its shareholders, and to strengthen the retention and the motivation of Executive Officers in the long term. In addition, since equity-based awards are structured to vest over several years, their incentive value to recipients is aligned with longer-term strategic plans.
      

      12.2.The equity-based compensation offered by Nova is intended to be in a form of share options and/or other equity based awards, such as RSUs, in accordance with the Company’s equity incentive plan in place as may be updated from time to time.
      

      12.3.Equity-based compensation awarded by the Company to employees, Executive Officers or directors shall not be, in the aggregate, in excess of 10% of the Company’s share capital on a fully diluted basis at the date of the grant.
      

      12.4.All equity-based incentives granted to Executive Officers shall be subject to vesting periods in order to promote long-term retention of the awarded Executive Officers. Unless determined otherwise in a specific award agreement approved by the Compensation Committee and the Board, grants to Executive Officers other than directors shall vest gradually over a period of between three (3) to five (5) years or based on performance. The exercise price of options shall be determined in accordance with Nova’s Equity-Based Compensation Policy, the main terms of which shall be disclosed in the annual report of Nova.
      

      

      
         

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      12.5.All other terms of the equity awards shall be in accordance with Nova’s incentive plans and other related practices and policies. Accordingly, the Board may, following approval by the Compensation Committee, extend the period of time for which an award is to remain exercisable and make provisions with respect to the acceleration of the vesting period of any Executive Officer’s awards, including, without limitation, in connection with a corporate transaction involving a change of control, subject to any additional approval as may be required by the Companies Law.
      

      13.General Guidelines for the Grant of Awards
      

      13.1.The equity-based compensation shall be granted from time to time and be individually determined and awarded according to the performance, educational background, prior business experience, qualifications, role and the personal responsibilities of the Executive Officer.
      

      13.2.In determining the equity-based compensation granted to each Executive Officer, the Compensation Committee and Board shall consider the factors specified in Section 13.1 above, and in any event the total fair market value of an annual equity-based compensation at the time of grant shall not exceed: (i) with respect to the CEO - 500% of the CEO’s annual base salary; and (ii) with respect to each of the other Executive Officers - 300% of such Executive Officer’s annual base salary.
      

      13.3.The fair market value of the equity-based compensation for the Executive Officers will be determined according to acceptable valuation practices at the time of grant.
      

      E. Retirement and Termination of Service Arrangements
      

      14.Advanced Notice Period
      

      Nova may provide an Executive Officer, other than the CEO, according to his/her seniority in the Company, his/her contribution to the Company’s goals and achievements and the circumstances of retirement and the CEO a prior notice of termination of up to three (3) months, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of his/her options.
      

      15.Adjustment Period
      

      Nova may provide an additional adjustment period of up to nine (9) months to an Executive Officer, other than the CEO, according to his/her seniority in the Company, his/her contribution to the Company’s goals and achievements and the circumstances of retirement and to the CEO, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of his/her options.
      

      16.Additional Retirement and Termination Benefits
      

      Nova may provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g., mandatory severance pay under Israeli labor laws), or which will be comparable to customary market practices.
      

      17.Non-Compete Grant
      

      Upon termination of employment and subject to applicable law, Nova may grant to its Executive Officers a non-compete grant as an incentive to refrain from competing with Nova for a defined period of time. The terms and conditions of the non-compete grant shall be decided by the Board and shall not exceed such Executive Officer’s monthly base salary multiplied by twelve (12).
      

      

      
         

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      18.Limitation Retirement and Termination of Service Arrangements
      

      The total non-statutory payments under Section 14-17 above shall not exceed the Executive Officer’s monthly base salary multiplied by twenty-four (24).
      

      F. Exculpation, Indemnification and Insurance
      

      19.Exculpation
      

      Nova may exempt its directors and Executive Officers in advance for all or any of his/her liability for damage in consequence of a breach of the duty of care vis-a-vis Nova, to the fullest extent permitted by applicable law.
      

      20.Insurance and Indemnification
      

      20.1.Nova may indemnify its directors and Executive Officers to the fullest extent permitted by applicable law, for any liability and expense that may be imposed on the director or the Executive Officer, as provided in the indemnity agreement between such individuals and Nova, all subject to applicable law and the Company’s articles of association.
      

      20.2.Nova will provide directors’ and officers’ liability insurance (the “Insurance Policy”) for its directors and Executive Officers as follows:
      

      20.2.1.The annual premium to be paid by the Nova shall not exceed 2% of the aggregate coverage of the Insurance Policy;
      

      20.2.2.The limit of liability of the insurer shall not exceed the greater of $50 million or 30% of the Company’s shareholders equity based on the most recent financial statements of the Company at the time of approval by the Compensation Committee; and
      

      20.2.3.The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the Compensation Committee (and, if required by law, by the Board) which shall determine that the sums are reasonable considering Nova’s exposures, the scope of coverage and the market conditions and that the Insurance Policy reflects the current market conditions, and it shall not materially affect the Company’s profitability, assets or liabilities.
      

      20.3.Upon circumstances to be approved by the Compensation Committee (and, if required by law, by the Board), Nova shall be entitled to enter into a “run off” Insurance Policy of up to seven (7) years, with the same insurer or any other insurance, as follows:
      

      20.3.1.The limit of liability of the insurer shall not exceed the greater of $50 million or 30% of the Company’s shareholders equity based on the most recent financial statements of the Company at the time of approval by the Compensation Committee;
      

      20.3.2.The annual premium shall not exceed 300% of the last paid annual premium; and
      

      20.3.3.The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the Compensation Committee (and, if required by law, by the Board) which shall determine that the sums are reasonable considering the Company’s exposures covered under such policy, the scope of cover and the market conditions, and that the Insurance Policy reflects the current market conditions and that it shall not materially affect the Company’s profitability, assets or liabilities.
      

      

      
         

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      20.4.Nova may extend the Insurance Policy in place to include cover for liability pursuant to a future public offering of securities as follows:
      

      20.4.1.The additional premium for such extension of liability coverage shall not exceed 50% of the last paid annual premium; and
      

      20.4.2.The Insurance Policy, as well as the additional premium shall be approved by the Compensation Committee (and if required by law, by the Board) which shall determine that the sums are reasonable considering the exposures pursuant to such public offering of securities, the scope of cover and the market conditions and that the Insurance Policy reflects the current market conditions, and it does not materially affect the Company’s profitability, assets or liabilities.
      

      G. Arrangements upon Change of Control
      

      21.The following benefits may be granted to the Executive Officers in addition to the benefits applicable in the case of any retirement or termination of service upon a “Change of Control”:
      

      21.1.Vesting acceleration of outstanding options or other equity-based awards;
      

      21.2.Extension of the exercising period of options for Nova’s Executive Officer for a period of up to one (1) year in case of an Executive Officer other than the CEO and two (2) years in case of the CEO, following the date of employment termination; and
      

      21.3.Up to an additional six (6) months of continued base salary and benefits following the date of employment termination (the “Additional Adjustment Period”). For avoidance of doubt, such additional Adjustment Period shall be in addition to the advance notice and adjustment periods pursuant to Sections 14 and ‎15 of this Policy, but subject to the limitation set forth in Section 18 of this Policy.
      

      21.4.A cash bonus not to exceed 150% of the Executive Officer’s annual base salary in case of an Executive Officer other than the CEO and 200% in case of the CEO.
      

      H. Board of Directors Compensation
      

      22.The following benefits may be granted to Nova's Board members: All Nova’s Board members, excluding the chairman of the Board, shall be entitled to an equal annual and per-meeting compensation.
      

      22.2.The compensation of the Company’s directors (including external directors and independent directors) shall be in accordance with the Companies Regulations (Rules Regarding the Compensation and Expenses of an External Director), 5760-2000, as amended by the Companies Regulations (Relief for Public Companies Traded in Stock Exchange Outside of Israel), 5760-2000, as such regulations may be amended from time to time (“Compensation of Directors Regulations”) and, in any event, the annual payment and the per-meeting payment shall not be greater than two (2) times the maximal annual payment and per-meeting payment, respectively, allowed under the Compensation of Directors Regulations, in the case of Nova.
      

      22.3.Notwithstanding the provisions of Sections 22.1 and 22.2 above, in special circumstances, such as in the case of a professional director, an expert director or a director who makes a unique contribution to the Company, such director’s compensation may be different than the compensation of all other directors and maybe greater than the maximal amount allowed, in the case of Nova, by the Compensation of Directors Regulations.
      

      

      
         

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      22.4.The chairman of the Board shall be entitled to a base compensation that shall not exceed six (6) times the compensation of a director (including annual and per meeting compensation and excluding equity compensation).
      

      22.5.Each member of Nova’s Board (excluding the chairman of the Board) may be granted annually equity-based awards with a total fair market value of up to US$150,000. The equity-based awards shall vest annually over a period of between three (3) to four (4) years.
      

      22.6.The chairman of the Board may be granted up to an average annual equity compensation (of two (2) sequential years) that shall not exceed six (6) times of any director’s equity compensation per year.
      

      22.7.In addition, members of Nova’s Board may be entitled to reimbursement of expenses when traveling abroad on behalf of Nova.
      

      22.8.It is hereby clarified that the compensation stated under Section H will not apply to directors who serve as Executive Officers.
      

      I. Miscellaneous
      

      23.Nothing in this Policy shall be deemed to grant any of Nova’s Executive Officers or employees or any third party any right or privilege in connection with their employment by the Company. Such rights and privileges shall be governed by the respective personal employment agreements. The Board may determine that none or only part of the payments, benefits and perquisites detailed in this Policy shall be granted, and is authorized to cancel or suspend a compensation package or part of it.
      

      24.An Immaterial Change in the Terms of Employment of an Executive Officer other than the CEO may be approved by the CEO, provided that the amended terms of employment are in accordance with this Policy. An “Immaterial Change in the Terms of Employment” means a change in the terms of employment of an Executive Officer with an annual total cost to the Company not exceeding an amount equal to two (2) monthly base salaries of such employee.
      

      25.In the event that new regulations or law amendment in connection with Executive Officers and directors compensation will be enacted following the adoption of this Policy, Nova may follow such new regulations or law amendments, even if such new regulations are in contradiction to the compensation terms set forth herein.
      

      ********************* 

      This Policy is designed solely for the benefit of Nova and none of the provisions thereof are intended to provide any rights or remedies to any person other than Nova.

      
         

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