What is the Franchisee expected to conform to regarding Canine Dimensions standards?

• A. Franchisor has developed and owns a system (the "System") relating to the establishment, development, and operation of franchises which provide in-home dog training, behavior modification and consulting services to dog owners, and which may also offer boarding, board and train, group lessons, and other complementary products.
• B. Franchisor identifies the System by means of certain trade names, service marks, trademarks, and indicia of origin, including but not limited to the mark and logo "Canine Dimensions", and such other trade names, service marks, and trademarks as are now designated (and may later be designated by Franchisor in writing) for use in connection with the System (the "Marks").
• C. Franchisee desires to operate a franchise under the System and wishes to obtain a franchise from Franchisor for that purpose, as well as to receive the training and other assistance provided by Franchisor, and Franchisee understands and acknowledges the importance of operating the franchised business in conformity with Franchisor's standards and specifications.

In consideration of the undertakings and commitments of each party to the other party in this Agreement, the parties agree as follows:

1. GRANT

1.1 Franchised Business

Franchisor grants to Franchisee, upon the terms and conditions herein contained, the right, license, and privilege, and Franchisee undertakes the obligation, to operate a Canine Dimensions franchise (the "Franchise" or "Franchised Business") and to use solely in connection with it the Marks, the Authorized Products and Services, and the System, as they may be changed, improved, and further developed from time to time, only from the Approved Location.

• 4.8.1 Franchisee shall secure and maintain in force, in its name, all required licenses, permits and certificates relating to the operation of the Franchised Business. Franchisee shall operate its Franchised Business in full compliance with all applicable laws, ordinances and regulations, including, without limitation, workers' compensation insurance, unemployment insurance, and withholding and payment of income taxes, social security taxes and sales taxes. All advertising by Franchisee will be completely factual, in good taste in Franchisor's sole and absolute discretion, and will conform to high standards of ethical advertising. Franchisee will, in all dealings with customers, suppliers and the public,

adhere to high standards of honesty, integrity, fair dealing and ethical conduct. Franchisee will refrain from any business or advertising practice which may be injurious to Franchisor's business and the goodwill associated with the Marks and other Canine Dimensions Businesses. Franchisee will notify Franchisor in writing within five (5) days of the commencement of any action, suit or proceeding, and of the issuance of any order, writ, injunction, award or decree of any court, agency, or other governmental instrumentality, which relates to or which may affect the operation or financial condition of Franchisee and/or its Franchised Business. Franchisee agrees to manage the employment functions of the Franchised Business in compliance with federal, state, and local employment laws.

• 4.8.2 Franchisee and its owners agree to comply, and to assist Franchisor to the fullest extent possible in its efforts to comply with Anti-Terrorism Laws (defined below).

12. INSURANCE

12.1 Requirement

Franchisee must procure, no later than fifteen (15) days prior to the commencement of operations of the Franchised Business, and shall maintain in full force and effect at all times during the Term, at Franchisee's expense, an insurance policy or policies protecting Franchisee and Franchisor, and their respective officers, directors, shareholders, partners, and employees, against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with the Franchised Business. The insurance policy(ies) must contain an endorsement to Franchisee's policy naming Franchisor and its officers, directors, shareholders, partners and employees shall be named as "additional named insureds" and not "additional insureds" in the broadest form, extending to Franchisor's negligence and errors and omissions, and cannot be limited to vicarious liability. The insurance afforded to additional insureds must apply as primary insurance and not contribute to any insurance or self-insurance available to Canine Dimensions Franchising, LLC.

Upon termination or expiration of this Agreement, all rights granted under this Agreement to Franchisee shall immediately terminate. Upon such termination or expiration, Franchisee must comply with the following procedures:

15.1 De-identification

• 15.1.1 Franchisee must immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public that the Franchise is a Canine Dimensions Franchise or hold itself out as a present or former franchisee of Franchisor. Franchisee must comply with the covenants contained in Article 16.

• 15.1.2 Franchisee must immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System; the Mark "Canine Dimensions", and all other Marks and distinctive forms, slogans, signs, symbols, monograms and devices associated with the System, and shall entirely remove all Internet listings, local citations and social media associated with the System. In particular, Franchisee must cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, and any other articles or clothing which display the Marks.

• 15.1.3 Franchisee must take such action as may be necessary to cancel any assumed name or equivalent registration that contains the mark "Canine Dimensions" or any other service mark or trademark of Franchisor, and Franchisee must furnish Franchisor with proof of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.

• 15.1.4 Immediately upon termination or expiration of this Agreement, Franchisee must make such modifications or alterations to the Approved Location and Vehicles operated hereunder and shall make such specific additional changes thereto as Franchisor may reasonably request.

• 15.1.5 Franchisee must never use any reproduction, counterfeit, copy, or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake, or deception, or which is likely to dilute Franchisor's rights in and to the Marks. Further, must never use any designation of origin or description or representation that falsely suggests or represents an association or connection with Franchisor.

• 7.2.4 During the Term and any successor agreement, Franchisee must identify itself as the owner of the Franchised Business in conjunction with any use of the Marks, including, but not limited to, on invoices, order forms, receipts, and contracts.

Franchisee must post a conspicuous notice on any documents used with Franchisee's customers and Associates that states: "EACH CANINE DIMENSIONS BUSINESS IS INDEPENDENTLY OWNED AND OPERATED" or any modification of this statement as Franchisor requires.

Franchisee must include this disclaimer on all business cards, stationery, promotional and advertising materials, website and Internet communications, real estate documents, and all other materials Franchisee uses.

Source: Item 22 — CONTRACTS (FDD page 36)