[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

Except as listed below, C12 is not required to provide you with any assistance.

Pre-Opening Assistance

Our obligations before commencing operation of your franchise include:

• 1. C12 does not participate or assist in locating a site or negotiation for the purchase of or lease of a site for your business, nor does C12 approve the site of your business. C12 does not construct, remodel, or decorate your meeting premises. C12 does not hire or train employees that work for the Area Chairs' C12 businesses. C12 will engage you in a seven-step selection process including, but not limited to: initial inquiries, conversations and evaluations, application submittal and review, visitation of an existing C12 meeting, assessments (for example, on-line Leading Dimensions Profile), and due diligence (reference checks, credit check, criminal background check), exchange of disclosure documents and draft agreements, in-person meeting(s) with C12 leader(s), Board interviews, and final evaluation and examination prior to the New Chair Training.
• 1. Granting you a franchise to operate as a C12 franchisee within a designated Territory upon the payment of the Initial Franchise Fee (FA Sections III, IV, and V).
• 1. Providing you with an intensive five-week training program (New Chair Training), including four weeks of guided, self-study combined with weekly live webinar training with a C12 Trainer, followed by a one-week on-site Training Week at the C12 home office (FA Sections III, IV) which includes: orientation to C12's vision, mission, core values, doctrine, and promise; discussion of C12's process, materials, protocols, methods, affiliates, and C12 services/resources; actual CEO Forum visitation and audit; discussion of Territory development and your specific business plan and action plan; and approval of your business plan. Training Week must be completed to C12's satisfaction.
• 1. Providing you with a Franchise Training Manual (FA Section III) and additional training materials. The contents of the current version of the Franchisee Training is set forth in Exhibit E.
• 1. Supplying initial start-up materials to aid in prospect development, member recruitment, and meeting facilitation, including guest binders, forms, stationery supplies, website-based resources, and promotional materials (FA Section III). The franchisee is responsible for purchasing and maintenance of a color printer and computer projector for their practice as needed with an

typically apply for spouses, family members, personal travel, and lodging (FA Section III).

• 1. Assisting you with on-going local C12 events, seminars, and awards banquets in your local Territory by providing formats, selected support materials, and perhaps a speaker (when mutually scheduled in advance) (FA Section III). When events are specifically planned with the primary purpose of expanding local C12 membership, C12 may subsidize the marketing cost (e.g., pre-approved turnkey C12 Direct Mail Campaign) at the rate of your Monthly royalty fee % against total billings, subject to your application and C12's approval.
• 1. We will provide you with an annual credit of $500 to purchase C12 promotional materials from our online store.
• 1. We will provide you with suggested pricing for initial membership packages and memberships, but you will set your own pricing for these items. We do not set minimum or maximum prices at which you must sell products and services. (FA Section IV.7.d.)

Including you, your Territory, noteworthy local information, and planned area event/meeting dates and locations on the C12 websites (C12forums.com & JoinC12.com) if you provide the necessary information (FA Section III).

Providing you with ongoing telephone and email consultation regarding Territory development and member/group facilitation (upon request) (FA Section III).

Providing the mandatory Sales Training Series currently offered in weekly one-hour group coaching sessions (FA Section III.3.b).

Providing you with on-going monthly supply of C12 meeting materials in both digital and print

media including mixed-media stack for meetings, along with digital/email copies of applicable materials (i.e., monthly agendas, curriculum, facilitation notes) and hard copies of member curriculum mailed to you in advance of each month's meetings (FA Section III). This includes CEO Forums and Key Players.

Providing you with an on-going re-supply of C12 meeting process forms and promotional materials (FA Section III).

Engaging in monthly teleconference calls with other members of the C12 Principal Chairs community, hosted and funded by C12, to discuss each month's meeting materials, Territory development and events, and issues of common interest (FA Section III).

To co-plan a C12 executive briefing event, where an experienced C12 leader, peer, member, or other contributor will travel to your Territory at no cost to you to provide a C12 overview presentation to prospects and help you to address questions (FA Section III).

C12 will conduct on your behalf a turnkey direct mail campaign as one means to generate prospects for these initial meetings (hereinafter "C12 Direct Mail Campaign") (FA Section III).

C12 will subsidize and co-op a portion of your campaign's cost (i.e., currently 17.5-30% based on your prevailing monthly royalty fee as a % of billings), as further described in 14 below (FA Section III), and the balance of the cost will be paid from the Prepaid Marketing Fund that has been designated from your Initial Franchise Fee.

If you order any additional C12 Direct Mail Campaigns after your Introductory Event, C12 will continue to subsidize and co-op a portion of your campaign's cost (i.e., based on your prevailing monthly royalty fee as a % of billings), as further described in 14 below (FA Section III).

Including you, your Territory, noteworthy local information, and planned area event/meeting dates and locations on the C12 websites (C12forums.com & JoinC12.com) if you provide the necessary information (FA Section III).

Maintaining, at our sole discretion and budget, a program of C12 brand advertising and publicity in national and regional/local online and print publications as well as websites to help drive leads through our website and home office to Area Chairs across the network (FA Section III).

• 1. Maintaining a C12 Marketing Co-op whereby C12 will pay a share of the cost of C12 marketing expenses both including the expenses related to the Prepaid Marketing Fund and all other eligible C12 marketing expenses at a rate equal to your applicable Monthly royalty fee %. This is a cooperative between you and C12 and not an advertising or marketing cooperative between you and other C12 franchisees.
• 1. Hosting semi-annual training workshops, which are required for the entire C12 Area Chairs community, typically for two to three days in the fall, and two to three days in the spring of each year (FA Section III). During the years when a C12 CURRENT conference is held, it is intended for the workshop to be planned for the days before. Franchisees pay a $110/month training fee for participation in both semi-annual mandatory national chair training gatherings and semi-annual regional chair events; franchisees bear their own costs for travel and lodging (FA Section III).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–29)