Will Anago invoice customers serviced by the Subfranchisee and their Unit Franchisees?

Leads** - We will refer all leads to you that may come to us for possible Unit Franchises in the Area.

Billing and Collection System (Section 2.4 of the Subfranchise Rights Agreement):

• (i) Invoicing. We will, as your and your Unit Franchisees' agent, invoice all customers serviced by you and your Unit Franchisees utilizing the NBDS System. We will send monthly invoices to every client account serviced by your Unit Franchisees for the first 12 months and, at our discretion, indefinitely, upon an Event of Default.
• (ii) Deposit of Client Receipts. Unless we direct otherwise, you will collect and deposit all your client payments into an escrow account in our name, at an acceptable banking facility designated or approved in writing by us (the "Anago Escrow Account"), until the time for distribution to you and later distribution to your Unit Franchisees. You will also set up a separate operating account in your corporate name d/b/a Anago of XXXX. You will require your clients to make all checks payable to the Anago Escrow Account for any services performed by the Unit Franchisees in your Area.
• (iii) Distribution of Client Receipts. After we receive a client payment, we will distribute the payment as follows: (i) you will receive payments deposited into the Anago Escrow Account less any applicable fees owed us or our affiliates under the Subfranchise Rights Agreement, which will be paid to Subfranchisor's operating account by Franchisor once per week (based on a week from Sunday through Saturday), on Wednesday, for the prior week's cleared deposits less any Royalties, Administrative Support fees, Insurance fees, service fees (including bank charges), lease payments, late payments, late fees, interest payments, and/or any amounts due to us by you; and (ii) we will retain our portion of the funds deposited into the Anago Escrow Account as stated above. You will be responsible for the payment of sales tax, as applicable. Payments will be made from your operating account. You will pay your Unit Franchisees directly by mail on the 20th day of each month following the month in which services were rendered, or as otherwise prescribed in its Unit Franchise Agreement, as we authorize, and will provide your Unit Franchisees with a statement detailing the previous month's accounting activity. You will send to us daily, by facsimile or electronic mail, items for all invoicing activity to each Client serviced and all supplies and equipment sold by your Unit Franchisees for that day (for at least the first 6 months). You will provide to us, by the 25th day of each month, a copy of all statements issued to its Unit Franchisees during the month in the form and manner we designate. We, at our option, will require you to accomplish this via hard copies sent by mail, courier, or by electronic data transmission via a modem or Internet access installed within your computer.

(iv) Billing and Collection Procedures Upon Your Default.

(i) During any period that you are in default of the Subfranchise Rights Agreement but the Subfranchise Rights Agreement is not terminated, and for 90 days, or more, thereafter (the "Default Period"), we may deposit and hold in the Anago Escrow Account certain client receipts (the "Escrow Receipts"), less any funds owed to us or our affiliates for Royalties, Administrative Support fees, Insurance fees, accounting fees, service fees (bank fees, credit card fees, or other fees relating to billing and collections), advertising fees, late fees, temporary management fees, interest, and any other payments due to Franchisor its affiliates hereunder. The Escrow Receipts may be held by us and distributed directly to the Unit Franchisees to ensure timely and accurate payment. We will pay directly to each Unit Franchisee the Escrow Receipt owed; less amounts due as delineated in the Unit Franchise Agreement. Your residual amounts may remain in the Anago Escrow Account for

the duration of the Default Period, and may be offset by amounts owed to us. We will be obliged to pay each Unit Franchisee only for receipts that we/you deposit into the Anago Escrow Account. Each Escrow Receipt will be credited for the invoice the client designates, and will be distributed to the Unit Franchisee accordingly.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)