What are all the fees that a Canine Dimensions franchisee must pay, as outlined in Items 5, 6, and 7?

ITEM 5 INITIAL FEES

Initial Franchise Fee

The initial franchise fee is $45,000 ("Initial Franchise Fee"). The Initial Franchise Fee is payable in a lump sum upon execution of the Franchise Agreement. It is fully earned upon receipt and nonrefundable, except that if you do not satisfactorily complete our initial training program, we will terminate the Franchise Agreement and refund your Initial Franchise Fee, less our reasonable expenses.

Training and Protected Territory Fee

You must also pay to us a training and Protected Territory fee of $12,500 for the initial training program and the identification of your Protected Territory to bring a total of two (2) people to training. You must also pay this fee if you are purchasing a franchise from an existing franchisee of ours. This fee is mandatory and is not refundable under any circumstances.

Marketing and Training Materials

You must also pay us $3,000 for an initial supply of marketing and training materials. You must also pay us at least $1,000 per month for internet advertising, payable on the first day of each month. This

amount can be raised monthly at your discretion.

Inventory for Resale

You must also pay us $5,000 for an initial supply of inventory items that you will resell to clients.

Except for the Initial Franchise Fee, none of the initial fees are refundable under any circumstances. These fees are uniform to all franchisees under this offering.

5.7 Email Maintenance Fee

Franchisee have at least one (1) mailbox at Franchisor's @CanineDimensions.com domain, and must pay Franchisor its then-current annual fee per mailbox for maintenance.

5.6 Toll Free Number Support

Franchisee must pay to Franchisor on an annual basis during the Term Franchisor's then-current fee for toll-free number support. This fee will help pay for maintenance of Franchisor's toll-free number, which will be used to refer business inquiries to franchisees in the System.

• 5.5.3 To encourage prompt and timely payment of the Royalty Fees and to cover the costs and expenses involved in handling and processing any payments not received by their due dates, Franchisee shall pay a fee of $45.00 for any ACH transfer that is returned by the bank, and shall also pay, upon demand, interest on any overdue amount equal to the lesser of: (i) one and one-half percent (1.5%) per month; or (ii) the highest rate permitted by law. Such charge shall accrue from the date payment was due until the date payment is actually received by Franchisor. Each failure by Franchisee to report its Gross Sales to Franchisor, or to pay the Royalty Fees or other payments payable to Franchisor when due, will be a material breach of this Agreement, except if the lateness is the result of Franchisor's failure to debit Franchisee's account in a timely manner.

6.5 Additional Training

If Franchisee requests that Franchisor provide additional training on-site at the Franchised Business, or for an additional proposed equity owner of Franchisee, or if Franchisor determines (in its sole discretion) that Franchisee would benefit from additional on-site training, Franchisee shall pay to Franchisor its then-current per diem rate per trainer (currently $350 per day), and reimburse Franchisor's costs for providing the on-site training, including travel, lodging and meals.

• 6.2.2 Franchisor may, in its discretion, hold an annual conference at a location of its

choosing. If Franchisor holds an annual conference, attendance will be mandatory for Franchisee and any other of Franchisee's representatives as Franchisor designates. The annual conference will be held to discuss sales techniques, bookkeeping, new product developments, new training techniques, new service suggestions, accounting, inventory control, performance standards, advertising and promotional programs, and merchandising procedures. Franchisee must pay to Franchisor, at the time and in the amount specified by Franchisor, a fee for Franchisee's representatives to attend the annual conference. All of the travel and living expenses of the attendees will be borne by Franchisee.