Under what condition does Body20 charge a Training Fee for representatives attending the initial training program?

• 3.11 Training Fee.

There is no charge for any of your Required Trainees (as defined in Section 5.1) to attend our initial training program, provided that they are all trained at the same time.

If your representatives attend a subsequent initial training program, we may charge our then-current initial training fee (the "Training Fee") for each representative that attends such training, which shall be no more than $1,000 per day per trainee.

You acknowledge that we have no obligation to refund the Training Fee, in whole or in part, for any reason.

C. Section 5.1 (Initial Training) is amended by adding the following sentence:

We may require your Required Trainees to complete Initial Training prior to the presales period or another deadline that we specify.

• 5.1 Initial Training. Prior to opening the Studio, you (or your Operating Principal, if you are an Entity) and your Designated Manager (collectively, "Required Trainees") must personally attend and satisfactorily complete our initial training program ("Initial Training"). We will provide Initial Training as soon as practicable after the execution and delivery of this Agreement at our offices, at any other location that we designate, and/or remotely via recorded media, teleconference, videoconference, the Internet, webinar, or any other means, as we determine. We will determine the length, timing, location, and substance of Initial Training in our sole discretion. We may waive a portion of Initial Training or alter the training schedule if we determine that your Required Trainees have sufficient prior experience or training or have previously been trained at one of our Studios. Each subsequent Operating Principal and Designated Manager must attend our Initial Training unless we otherwise agree in writing.
• (a) Cost. We will provide instructors, facilities, and materials your Required Trainees as part of the Franchise Fee, provided that all of your trainees are trained during the same training session. We reserve the right to charge the Training Fee for each person who attends a subsequent Initial Training program, including (i) each person who is repeating the course or replacing a person who did not pass and (ii) each subsequent Operating Principal, Designated Manager, or employee who attends the course.
• (b) Completion of Initial Training. If your Required Trainees are unable to successfully complete, in our sole discretion, Initial Training for any reason, your Required Trainees must repeat Initial Training or you must send replacement Required Trainees to complete Initial Training. Your Required Trainees must successfully complete Initial Training at least 30 days before the earlier of the date you open the Studio or the Opening Deadline (or by such earlier deadline that we specify). We will not refund any initial franchise fees paid by you. If you and your personnel satisfactorily complete our Initial Training and you do not expressly

inform us at the end of Initial Training that you feel that you or they have not been adequately trained, then you and they will be deemed to have been trained sufficiently to operate a Studio.

• 5.2 Opening Advice.

Prior to opening your Studio, we will advise you as to development of Session schedules and local marketing and networking efforts.

• 5.3 Additional Training.

We may periodically conduct mandatory or optional training programs for your Required Trainees and/or your employees at our office or another location that we designate.

There will be no charge for training programs that we require you or your employees to attend, except (a) with respect to our Initial Training program, as provided in Section 3.11, (b) as provided in Appendix A (if any additional training fees are specified within such Appendix), and (c) with respect to any third-party training or certification programs that we require your instructors to complete, but we may charge you a reasonable fee for optional training programs, which will not exceed $3,000 per attendee per program.

We may provide additional training in person or via recorded media, teleconference, videoconference, the Internet, webinar, or any other means, as we determine.

We may require your Required Trainees or employees to satisfactorily complete any additional training programs that we specify.

We may require your Required Trainees to participate in up to five days of refresher or advanced training in each year of the Term.

• 5.4 Remedial Training.

If, in our sole judgment, you fail to maintain the quality and service standards set forth in the Manuals, we may, in addition to all of our other rights and remedies, assign trainers to the Studio to retrain Studio employees and restore service levels and/or require you or your employees to repeat Initial Training or attend additional training programs at a location that we designate.

We may charge a fee of up to $1,000 per trainer per day for each trainer assigned to your Studio and any remedial training.

• 5.5 Training by You.

Source: Item 23 — RECEIPT (FDD pages 74–251)