What is the National Headstone Program related to for Boulder Designs?

tion of a Boulder Designs franchise;

WHEREAS, pursuant to the Franchise Agreement, Franchisee has an obligation to participate in any National Accounts program by the Franchisor;

WHEREAS, currently Franchisor has implemented a certain headstone program, upon which franchisor will generate and provide Franchisee with leads for creation of a headstone in Franchisee's Territory (as the term is defined in the Franchise Agreement), in lieu of certain fees charged by the Franchisor; and

WHEREAS, the Franchisor desires to grant you the right to participate, and you desire to patriciate in the national headstone program, pursuant to the terms and conditions of this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration for the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties amend the Agreement and agree as follows:

• 1. Franchisee hereby acknowledges and agrees that Franchisor may negotiate and implement a national account program(s) to serve clients across territories and from multiple franchisees and the Franchisee further acknowledges that the Franchisor has incurred significant costs and expenses in development of national website and marketing services related to engraved rocks and custom boulders for a cemetery headstone ("National Headstone Program").
• 1. Franchisor and Franchisee hereby agree to the following terms as they relate to the National Headstone Program:
• a. Territory. Franchisee hereby further acknowledges and understands that the National Headstone Program implemented by the Franchisor, provides Franchisor the right to solicit and obtain certain projects that may be located anywhere, including Franchisee's granted Territory.
• b. National Headstone Program. Franchisee further acknowledges and agrees that pursuant to the Franchise Agreement, if Franchisor obtains a National Headstone Program project in the Territory, Franchisor may, but is not obligated to, offer the project to Franchisee for execution and completion. If Franchisor makes such an offer, Franchisee agrees to service the National Headstone Program customer under the same terms, pricing, and provisions negotiated for the National Headstone Program, and the Franchisee shall not receive any additional compensation for participation in the National Headstone Program.
• Boulder Designs® 1 c. Franchisee's Obligations and Procedures. General procedure for procurement and servicing the National Headstone Program customer is subject to this Agreement and other terms and conditions of the Franchise Agreement, which Franchisor may change at their sole discretion upon 15 days' notice to the Franchisee. Prospective customer has an option to design their own headstone using the National

Franchise Agreement | 2025

Headstone Program webpage and submit it to obtain an estimate on cost or in the alternative they may choose to e-mail the Franchisor's design department for direct questions regarding design and pricing. Once the customer is approved the Franchisor may collect the Project Deposit (as defined below) and provide design proof if available and customer information to the Franchisee for construction. Franchisee shall be solely responsible for any communication with the customer to complete the project per design and/or any specifications provided by the customers. Franchisee shall send picture of completed project to the customer for review and approval. Franchisee further acknowledges at their sole cost and expense the Franchisee shall deliver and install the product at the customer requested location, provided that the Franchisee may charge reasonable delivery and installation of the product to the customer per customer's request. Franchisor may at their sole discretion and in no obligation to do so, may reach out to the customer to assure satisfaction and provide a lifetime warranty.

• d. Fees. As of the Effective Date of this Agreement, Franchisor will collect a deposit due per project, which is based on template and materials selected by the customer which could vary based on the total project cost, prior to sending the design proof if one available and customer information to the Franchisee for creation and construction ("Project Deposit"). The Franchisor may provide the Franchisee with design proof and customer information, and the Franchisee shall be entitled to the remaining balance for the project which shall be gross revenue per project minus the Project Deposit paid to the Franchisor. Franchisor shall retain the Project Deposit for revenue generated inside and outside the Franchisee's Territory as a result of the lead provided by the Franchisor and sale from the National Headstone Program projects assigned to the Franchisee as national headstone accounts fee ("National Headstone Accounts Fee"). Franchisee acknowledges that the National Headstone Accounts Fee is reasonable amount enforced by the Franchisor, as a fee for obtaining the project, maintaining the website for the National Headstone Program, heavily marketing the services to continuously obtain more leads for the participant franchisees, and for the administrative costs related to the National Headstone Program. Franchisee shall be solely responsible for collecting any additional information directly from a customer for creation and construction of the product. Franchisee shall be further responsible for finalizing the design for the customer and submitting the same to the Franchisor. Failure to submit the finalized design shall be considered a default of this Agreement.
• e. Standards. All work performed pursuant to this Agreement shall be done by the Franchisee in accordance with the operational systems, procedures, policies, methods and requirements as identified by the Franchisor.
• f. Repair or Replacement Products. Franchisee shall be responsible for providing any repair or replacement work for National Headstone Program customers Franchisee serviced. Franchisee shall make such repairs or replacements within thirty (30) days, subject to reasonable work conditions due to climate after Franchisee is served a valid claim from the customer. Franchisee shall be responsible for the costs of any materials, overhead, and/or labor required to bring the products within the standards prescribed by the Franchisor. In the event Franchisee fails to make any repairs or replacements as required hereunder, the Franchisor may undertake and/or arrange for such repair or replacements and charge Franchisee for the cost of effecting such repairs or replacements, including costs for labor, materials and overhead. Franchisor shall have the right to apply any payments by Franchisee to any past due indebtedness of Franchisee including payments under the Franchise Agreement in any proportion or priority. . Franchisor's acceptance of payment from any entity other than the named Franchisee shall be deemed to be payment by the named Franchisee and shall not be deemed to be recognition or substitution of the paying entity for the named Franchisee.
• Boulder Designs® 2 g. Non-Participation by the Franchisee.

Source: Item 22 — CONTRACTS (FDD page 50)