What training requirements must the General Manager of a Bonchon franchise satisfy?

ment. Your Operating Principal is the sole individual with whom we will be required to communicate when we seek to communicate with you. Either the Operating Principal and/or you must satisfy our initial training requirements pursuant to Section 7.02 hereof.

If an individual, you must either serve as or designate a "General Manager" for your franchised Business. If you are an individual, then you may serve as General Manager. If you are an entity, then your Operating Principal must serve as or designate a General Manager. If your Operating Principal will have on-site management responsibility over the Restaurant's daily operation on a full-time basis, then we will consider your Operating Principal to be the General Manager. Before designating and engaging the services of the General Manager, you must identify such individual to us; furnish information to us regarding the candidate's background, experience and credentials; and, secure our prior written approval of the candidate, which we will not unreasonably withhold or deny. Your General Manager, who will have full-time day-to-day management responsibility for your Bonchon Business, will exercise on-premises supervision and personally participate in the direct operation of the Business. Your General Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.

Additionally, you must employ a second full-time manager to serve as your manager (the "Manager"). Your Manager will also have day-to-day management responsibility for your Bonchon Business, and will exercise on-premises supervision and personally participate in the direct operation of the Business. You Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.

If this Agreement is for the opening of your (or your affiliates, collectively with you) third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your third Bonchon Business, who will oversee the operations of each Bonchon Restaurant that you and/or your affiliates own and operate. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must secure the requisite certifications and attend and successfully complete the training that we prescribe in Section 7.02 above. The requirement to designate an Area Manager

prior to the opening of your third Bonchon Business applies whether the development of your third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 of your (or your affiliate's) Area Development Agreement, (ii) the result of you (or your affiliates) entering into separate unrelated unit franchise agreements with us, (iii) the result of your (or your affiliates') acquisition of existing Bonchon Businesses, or (iv) the result of some combination of the foregoing.

If the franchisee is a business entity, neither the General Manager, the Area Manager nor the Manager need have an equity interest in the franchisee entity.

You must immediately notify us within five (5) days upon the death, disability or termination of employment of your Operating Principal, General Manager, Manager or Area Manager, for any cause or reason. You must designate a successor or acting Operating Principal General Manager, Manager or Area Manager, as applicable, promptly and, in any event, no later than ten (10) days following the death, disability or termination of the predecessor Operating Principal, General Manager, Manager or Area Manager, as applicable. Each successor Operating Principal, General Manager and Area Manager must possess those credentials set forth in our Manuals. Each successor Operating Principal, General Manager, Manager or Area Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof (if such successor Operating Principal, General Manager, Manager or Area Manager has not already done so) and each successor Operating Principal, General Manager, Manager and Area Manager, as applicable, must attend and successfully complete such other reasonable training at such times as we may specify, all at your expense. The failure to employ and train (as applicable) a successor Operating Principal, General Manager, Manager or Area Manager will constitute a material breach of this Agreement.

8.08 Requirements Concerning Products and Services

A. Products and Services You Sell

You agree to sell all products, services and programs which are part of the Bonchon System and all other products, services and programs which we in the future incorporate into the Bonchon System unless, as to any one or more items, sale is prohibited by local law or regulation or we have granted you our advance written approval to exclude a product, service or program. You may not sell any product, service or program which is not a part of the Bonchon System or which we delete from the System. Notwithstanding the foregoing, depending on the type of Restaurant you elect to operate, you may be limited in which products, services and programs your Restaurant may offer and sell.

You must maintain in sufficient supply products, materials, supplies and paper goods as conform to our then-current written standards and specifications (as set forth in the Manual or otherwise) and must refrain from deviating therefrom by the use of any non-conforming items without our prior written consent. Your Restaurant must prepare all products utilizing such preparation standards, procedures and techniques as we specify and must refrain from any deviation from our standards and specifications without our prior written consent.

If you desire to sell any product, service or program which is not a part of the Bonchon System, then you must obtain our advance written permission, which we may deny for any or no reason.

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