What aspects of sales, marketing, and advertising programs may Dermani Medspa regulate?

dge and recognize the importance of the standardization of advertising programs to the furtherance of the goodwill and public image of the System, Franchised Businesses and Medspas. Therefore, you agree to: (a) contribute to the System Marketing Fund, (b) make local advertising and marketing expenditures, and (c) join and make contributions to a Cooperative, if and when established.

• 9.1.2. We may from time to time develop and create advertising and sales promotion programs designed to promote and enhance the collective success of all dermani MEDSPA® franchised businesses operating under the System. You shall participate in all such advertising and sales promotion programs in accordance with the terms and conditions established by us for each program. In all aspects of these programs, including, without limitation, the type, quantity, timing, placement and choice of media, market areas and advertising agencies, the standards and specifications established by us shall be final and binding upon you.
• 9.1.3. We may, from time to time, incorporate into the System programs, products or services which we either develop or otherwise obtain rights to, which are offered and sold under names, trademarks and/or service marks other than the Marks and which your Franchised Business, along with other dermani MEDSPA® franchised businesses, will be required to offer and sell. This activity, referred to as "cobranding", may involve changes to the Marks and may require you to make modifications to your Premises and the furniture, fixtures, equipment, signs and trade dress of your Franchised Business. If you receive written notice that we are instituting a cobranding program, you agree promptly to implement that program at your Franchised Business at the earliest commercially reasonable time and to execute any and all instruments required to do so. Under no circumstance will any cobranding program increase your Royalty Fees, System Marketing Fee or local marketing expenditure obligations under this Agreement.

9.2. System Marketing Fund.

• 9.2.1. The image of the dermani MEDSPA® brand, the Marks, Franchised Businesses, and Medspas held by the public in general, by patients, and by Medspa managers and employees, is important to the System and the Marks. We reserve the right to establish a System Marketing Fund for the enhancement and protection of the dermani MEDSPA® brand and Marks, and for the advertising, marketing, and public relations programs and materials.
• 9.2.2. The System Marketing Fund, all contributions thereto, and any earnings thereon, shall be used exclusively (except as otherwise provided in this Section 9.2), in our sole discretion, to meet any and all costs of maintaining, administering, directing, conducting, creating and/or otherwise preparing advertising, marketing, public relations and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System, including, without limitation, the costs of preparing and/or conducting: media advertising campaigns; social media campaigns; Paid per click campaigns; direct

mail advertising; marketing surveys and other public relations activities; employing advertising and/or public relations agencies to assist therein; brand research and development; developing and hosting marketing, brand development and enhancement, and customer engagement seminars for franchisees; purchasing promotional items; developing new or modified trade dress and marks; point-of-purchase (POP) materials; design and photographs; conducting and administering visual merchandising, and other merchandising programs; purchasing media space or time (including all associated fees and expenses); administering regional and multi-regional marketing and advertising programs; market research and customer satisfaction surveys; developing and implementing customer membership, loyalty and gift card programs; customer retention programs; customer surveys and mystery shopper programs; the creative development of, and actual production associated with, premium items, giveaways, promotions, contests, public relation events, and charitable or non-profit events; developing, implementing and maintaining an electronic commerce website and/or related strategies; maintaining and developing one or more Websites devoted to the System, the Proprietary Marks and/or the "dermani MEDSPA®" brand; and providing promotional and other marketing materials and services to the Medspas operated under the System.

Source: Item 23 — RECEIPTS (FDD pages 66–311)