under the Master License Agreement as if the Franchise agreement with each Franchisee was signed by
you.
2. INITIAL TERM AND RENEWAL TERM
2.1 Initial Term. The Initial Term shall commence on the Effective Date and shall expire on
the fifteenth (15th) anniversary of the Effective Date (the “Expiration Date”), unless sooner terminated
as provided in this Agreement.
2.2 Renewal Term. If Master desires to renew the Agreement with an extension of the Initial
Term, following the Expiration Date, and providing it is in compliance with the terms of this Agreement,
Master Licensee shall, no later than one hundred eight (180) days nor earlier than 360 days prior to the
Expiration Date, notify Global in writing (the “Renewal Notice”) that Master Licensee desires to renew
the Agreement and indicate if Master desires to develop any further the Development Area and if it
does, then indicate the number of Units that can be developed (the “Renewal Development Plan”). If
there are potential Units that can be developed, then Global will grant a ten (10) year extension to the
Initial Term (the “Renewal Term”.) Global shall exercise its reasonable discretion in determining if the
Renewal Development Plan is acceptable. If there are no further Units that can be developed, then the
Agreement shall be extended for five (5) years and shall predominantly provide for support of the
existing Units, management of re-sales of Units and other operational matters that effect the Master
Franchise System. Included in either the ten (10) year or five (5) year renewal Master agrees to comply
with certain requirements, including but not limited to: execution of a release of all claims that might
exist against Global and other related entities or people; training of employees; updating existing
technology and implementing new technology and procedures; and any other requirement that Global
may reasonably require. The renewal fee under either of the Renewal Terms shall be 10% of the Initial
License Fee.
2.3 Renewal Development Plan. Global will review the reasonableness of the terms of the
Renewal Development Plan proposed by the Renewal Development Notice and if such terms are
unacceptable to Global in any respect and Global believes, in its sole discretion, that changes are
necessary, and then it shall propose those changes. If the Parties cannot come to agreement, within 60
days of the date of the Notice, this Agreement shall terminate at the end of the Term. If the Parties
come to agreement the Renewal Development Plan within the sixty (60) day period after the date of the
Renewal Notice, Global shall deliver to Master an Amendment to this Agreement (the “Renewal
Development Amendment”) extending the Initial Term for the Renewal Term and setting forth the
agreed upon Renewal Development Plan incorporated into the Amendment.
2.4 Conditions to Renewal. Global shall execute the Renewal Development Amendment if,
and only if Master Licensee; (i) has fully performed all of its obligations under this Agreement and all
other agreements between them, (ii) is in Good Standing under the Agreement, (iii) has demonstrated
its then-current financial ability to implement and complete the Renewal Development Plan, (iii) has
Opened or caused Franchisees to have Opened and continue to operate no less than the aggregate
number of Units required by the Development Obligation, (iv) has executed the Renewal Development
Amendment and (v) has executed and delivered to Global a general release of all known and unknown