pecial training. We will determine the location, frequency, and instructors of these training programs. You must also pay for all travel, lodging, meal, and personal expenses related to your attendance and the attendance of your personnel. You are required to attend our annual conference, the location of which will be determined by us. Additionally, if you utilize a third-party professional corporation to service your Clinic's patients, each chiropractor of the servicing professional corporation must also attend our annual convention. Your attendance at the annual conference is mandatory. You will be solely responsible for the wages and travel, lodging, and living expenses for each attendee of yours who attends the annual conference. We will not charge you a fee to attend the annual conference, but we may collect fees from you that are imposed by third parties relating to the annual conference, such as fees charged for lodging, food, and beverage. We may

also offer additional optional training programs through our designee for one-time lump sum payments (see above).

• 1. Review and approve or disapprove your advertising, marketing, and promotional materials (Franchise Agreement – Section 11.2). Our actual or deemed approval will not mean that we have analyzed or approved any advertising materials with respect to any state, local or administrative law, rule or regulation that may be applicable to a franchise's practice of chiropractic in its State of licensure. Advertising on the internet or having your own website online is restricted by your Franchise Agreement.
• 1. We may establish, maintain, and administer an Ad Fund. As available, we will provide you with digital copies of our marketing materials via our intranet. (Franchise Agreement – Section 11.1). The Ad Fund will be used to support and pay for marketing programs we deem necessary, desirable, or appropriate to promote the services and products offered by your and other Clinics. Also, we may, at our discretion, charge you for hard or digital copies of marketing materials.
• 1. As we deem advisable, conduct inspections of your Clinic, including evaluations of its training methods, techniques, and equipment; its staff; and the services rendered to its customers to ensure that the high standards of quality, appearance and service of the HealthSource Chiropractic System are maintained. (Franchise Agreement – Section 13.1). At any reasonable time and without advance notice to you, we or our agents, such as a "mystery shopper" service, may: (i) inspect the Premises; (ii) observe the operations of the Franchise for such consecutive or intermittent periods as we deem necessary; (iii) interview personnel of the Franchise; (iv) interview customers of the Franchise; and (v) inspect and copy any books, referral sources, marketing and advertising, records and documents relating to the operation of the Franchise. We or our agents may record telephone calls placed to your Clinic. We may provide you with additional guidance and training based on the results of these inspections.

Training Program

We will provide to you and your employees that we designate, our initial training program for HealthSource Chiropractic Clinic franchises, which includes self-directed virtual, and live classroom instruction. Self-directed training shall begin no later than 120 days before your Clinic opens for business. You must complete all initial training requirements no later than 30 days prior to opening your Clinic for business. You (if you are an individual) or your Principal Owners as defined in your Franchise Agreement (if you are a legal entity), your general manager (if we agree for you to have a general manager;

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 34–44)