Is a Bonchon franchisee required to enter into a service agreement with Paytronix?

EXHIBIT K TO DISCLOSURE DOCUMENT PAYTRONIX FRANCHISEE SERVICE AGREEMENT & ACH FORM

Paytronix Systems, Inc. 80 Bridge Street Newton, MA 02458 617-649-3300 Billing@paytronix.com

PAYTRONIX FRANCHISEE SERVICE AGREEMENT

The Franchisor has a master agreement with Paytronix Systems, Inc. (Paytronix) to provide the Hosted Services listed above to all of the Franchisor's owned and franchised locations, of which the Franchisee owns one or more franchised locations. This Service Agreement is between Paytronix and the Franchisee who hereby agree:

1. DEFINITIONS

Hosted Services means the services provided to Franchisee via software applications hosted by Paytronix (such as, for example, loyalty program services, stored value card services, merchant web based access to rules and reports, customer web access to account information, or other services).

Deployment Service means the services provided to Franchisee to install the Hosted Services and Software.

Support Services means the services provided to Franchisee to support the Hosted Services.

Services means the Hosted Services, Deployment Services and Support Services provided by Paytronix.

Client System means all equipment and ancillary services needed to connect to, access or otherwise use the Services via the Internet or dial-up (including without limitation, computer servers, point of sale devices, modems, software and network and communication services).

Software means all computer programs that are developed by Paytronix and installed on the Franchisee's Systems, computer programs that are executed or maintained on the Hosted Services, the user guide and other documentation from Paytronix, and all updates to any of the foregoing.

1. LICENSES. Paytronix grants to Franchisee a nonexclusive, nontra

data or the like, regarding or relating to Paytronix Software or business submitted by Client to Paytronix, provided, in no event will Paytronix reuse any of Franchisee's Proprietary Information, marks or logos.

5. TERM. Unless either party provides a written notice to the contrary, this Agreement will remain in effect as long as the master agreement remains in effect between Paytronix and the Franchisor.

6. PAYMENTS.

Fees. Franchisee agrees to pay Paytronix the one-time and recurring fees, in the amounts, at the times and subject to the conditions of the Master Service Agreement between the Paytronix and the Franchisor.

ALL FEES WILL BE PAID TO PAYTRONIX BY AN AUTOMATED CLEARING HOUSE (ACH) TRANSACTION INITIATED BY PAYTRONIX. A BILLING SUMMARY REPORT WILL BE AVAILABLE ON THE 1st OF EACH MONTH VIA THE INTERNET AT WWW.PXSWEB.COM. THE ACH WILL BE POSTED BY THE 10TH OF EACH MONTH.

Taxes. All payments required by this Agreement are exclusive of federal, state, local and foreign taxes, duties, tariffs, levies, withholdings and similar assessments (e.g., sales taxes, use taxes and value added taxes), and Franchisee agrees to be responsible for payment thereof, exclusive of any tax based on Paytronix's income.

Source: Item 23 — RECEIPTS (FDD pages 92–536)