What is included in the definition of 'Net Sales' for a Cicis restaurant?

Notwithstanding anything to the contrary, you shall be responsible for cost and expenses associated with your purchase or automatic supply by our designated suppliers of the products (or the ingredients for such products) and services required by you to offer any LTO.

You hereby authorize us to withdraw payment for all products automatically shipped to you by our designated suppliers on or before the payment date set forth in the supplier's invoice by EFT from your account in accordance with Section 4.H. of this Agreement.

• (2) You will comply with all requirements and specifications we establish, and use all designated vendors, for each Marketing Program.

• (3) We may, from time to time, provide you, without charge, certain marketing pieces regarding the Cicis® franchise opportunity.

You must display those materials in your Restaurant in accordance with our direction.

• B.

Marketing Contributions and Expenditures.

In addition to your participation in the Marketing Programs as described above, you agree to the following:

• (1) You agree to contribute 5% of your Restaurant's Net Sales to the Fund (defined below) ("Fund Contribution").

The Fund Contribution is calculated in the same manner, and will be due and payable at the same time, as the Royalty Fee.

• (2) In addition to the Fund Contribution, you must spend at least 1% of your Restaurant's Net Sales on approved marketing programs for your Restaurant in the Protected Area ("Local Marketing Spend").

We describe in the Manuals from time to time certain expenditures that will not satisfy the Local Marketing Spend unless you obtain our prior written agreement as to specific proposed expenditures.

• (3) If your Restaurant is located within an area that is or becomes covered by a Cooperative (defined below), you must contribute to the Cooperative all amounts required by the Cooperative's

Source: Item 22 — CONTRACTS (FDD pages 64–65)