Does the text outline any conditions related to C12 Group contracts?

ide such prospective members with contact information of the C12 franchisee whose Territory the prospective members live and work within.

• 1. C12 Group Membership. C12 membership is limited to Christian business Owners, CEOs, Presidents, and General Managers (and their team members) who give assent to Franchisor's Doctrine Statement or seek to understand these values and principles as they seriously consider the claims of Christ. Each member agrees to group confidentiality, Christian conflict resolution, and being a part of an 'iron sharpening iron' peer group process that requires both listening and speaking in mutual ministry efforts.
• 1. Minimum Performance Standards. Franchisee must achieve a minimum level of target market penetration to maintain exclusivity within Territory. Franchisor defines Franchisee's "Baseline Target" using publicly available data, including, without limitation, the relevant Intelligent Direct, Inc (IDI) dba GbBIS business census in the Territory and research data provided by The Barna Group on the percentage of 'practicing Christians' or 'evangelical Christians' by region to establish the market potential in regard to the number of prospective member companies within the Territory. Franchisee must achieve the minimum performance levels set forth in Section IV.8.a. to maintain exclusivity within the Territory. If Franchisee fails to achieve such minimum performance levels, Franchisor may reduce the size of Franchisee's Territory, authorize another franchisee to operate a C12 Group franchise within Franchisee's Territory, or operate a C12 Group business within Franchisee's Territory.
• 1. Trade Name and Marks. Franchisor owns certain trademarks, service marks, trade names, logotypes, internet domain names, commercial symbols, copyrighted materials, and proprietary processes and materials which Franchisee is licensed to use. This includes The C12 Group® service mark which is registered with the USPTO as a Principal Register federal registration in addition to any other marks C12 may establish from time to time. In addition, Franchisor owns several top-level internet domain names (i.e., .COM, .NET, .ORG) that have been registered with domain name registrars, including Franchisor's primary website. Franchisee agrees to use Franchisor's current and future trademarks, service marks, trade names, logotypes, and domain names only in the ways Franchisor has approved in advance in writing as Franchisor has set forth in its training and operating manuals or in other routine communications to C12 Group franchisees such as semi-annual training workshops and via Franchisor's web-based portal for franchisee materials, resources, and information. Franchisor's branding and marks shall only be used by Franchisee in conjunction with the delivery of approved C12 Group goods and services. Franchisor agrees to indemnify, defend, and hold Franchisee harmless in the event that Franchisee's use of Franchisor's trademarks in accordance with this Agreement infringes upon the intellectual property rights of a third party. Franchisee agrees to notify Franchisor immediately if and when Franchisee learns of an infringement or challenge to Franchisee's use of any of Franchisor's trademarks. Franchisee shall not directly or indirectly contest Franchisor's right to, or use of, the C12 trademarks, trade secrets, or proprietary materials and processes that are part of Franchisor's business format. If this Agreement is terminated, Franchisee agrees to immediately cease using Franchisor's trade name, trademarks, service marks, symbols, or insignia, or any proprietary materials, forms, bulletins, advertising materials, slogans, manuals, or websites which relate to the name and marks listed in this Agreement. Franchisee shall ensure compliance with this by returning

these materials to Franchisor or, if Franchisor directs, destroying them.

II. Term and Renewal

The Term of this Agreement begins upon the execution hereof and continues through December 31st of the calendar year following the year in which this Agreement is executed. For example, if this Agreement is executed on May 31, 2024, the Term shall expire on December 31, 2025. Unless sooner terminated, as hereafter provided, the Term of this Agreement is meant to be renewed each calendar year for additional one-year Renewal Terms (with each Renewal Term being one calendar year) so long as (i) both Franchisor and Franchisee agree to such renewal, (ii) Franchisee remains active in operating the Franchised Business, and (iii) Franchisee is in good standing under this Agreement. Being in good standing requires Franchisee to remain in compliance with the terms of this Agreement and Franchisee's agreement to any updates or changes in Franchisor's business model and Operations Manual that have occurred during the prior year. Any changes made in Franchisor's business model will be made at Franchisor's sole discretion and based on Franchisor's belief that the changes will strengthen the overall platform and enhance the C12 Group franchise system's long-term value to both members and franchisees. There is no additional renewal fee associated with these annual renewals. If there are material updates or changes, Franchisor may present Franchisee with a consent letter incorporating such terms, which shall act to renew this Agreement for another calendar year. Franchisor shall notify Franchisee of material changes to Royalty Fees and minimum membership fees (as the basis for calculating Royalty Fees) at least twelve (12) months before the expiration of the Term or any Renewal Term.

Franchisee shall notify Franchisor of Franchisee's intent to not renew the Term of this Agreement no later than ninety (90) days prior to the expiration of the Term, as may be renewed.

Source: Item 22 — CONTRACTS (FDD page 46)