Besides the local and regional advertising expenditure, are Bojangles franchisees required to make any other advertising contributions?

Franchisee agrees to make contributions to the Bojangles Marketing Development Fund (hereinafter "Fund") as required under Paragraph IV.C. hereof.

The Fund shall be maintained and administered by Franchisor or its designee, as follows:

• (1) Franchisor shall direct the creation of all advertising programs, with sole discretion over the creative concepts, materials, and media used in such programs.

Franchisee agrees and acknowledges that the Fund is intended to maximize general public recognition and acceptance of the trade names, trademarks, and service marks which are designated as part of the System for the benefit of the System through research and the creation of marketing materials; and that Franchisor and its designee undertake no obligation, in administering the Fund, to make expenditures which are equivalent or proportionate to a franchisee's contribution, or to insure that any particular franchisee benefits directly or pro rata from Fund expenditures.

Franchisee is aware that there may be some franchisees operating under different forms of agreement and who may not be required to make payments into the Fund equivalent to Franchisee's payments.

• (2) Franchisor shall, for each of its company-owned Bojangles restaurants, make contributions to the Fund equivalent to the contributions required of comparable franchised Bojangles restaurants within the Bojangles System so that Franchisor's average contribution for each company-owned Restaurant will be equal to the average contribution per franchise-owned Restaurant.

This average per Restaurant contribution for franchise-owned Restaurants will be calculated by dividing the total contributions of franchisees to the Fund by the total number of franchise-owned Restaurants.

Franchisor's total contribution to the Fund will equal this average

per Restaurant contribution multiplied by Franchisor's total number of company-owned Restaurants; and

• (3) All contributions to the Fund shall be used exclusively for advertising and promotion of the Bojangles System (including, without limitation, the cost of preparing and conducting television, radio, video, digital, print, and billboard advertising campaigns and other public relations activities; conducting research; employing advertising agencies and other specialists to assist therein; and preparing and providing promotional brochures and other point of purchase marketing materials to franchisees in the Bojangles System).

All sums paid by Franchisee and other franchisees to the Fund shall not be used to defray any of Franchisor's general operating expenses except for such reasonable administrative expenses and overhead, if any, as Franchisor may incur in activities reasonably re

Source: Item 22 — CONTRACTS (FDD page 82)