tes. (Franchise Agreement, Section 12.10)

Computer Systems and POS System

You must acquire and use in developing and operating your HydroDog Business a computer system consisting of the computer services, components, equipment, computer hardware, telecommunications equipment or services, point-of-sale system, the software used in connection with the Business Management System and other operating or communications software that we designate or require for use by HydroDog Businesses (collectively, the "Software") that we specify from time to time in the manner we designate (collectively, the "Computer System"). You must sign any standard license agreement or user agreement that may be required to use a system that we specify. You must use the required systems for service calls,

managing inventory, reporting Gross Sales and other information, training personnel, and other functions as we specify from time to time. You must ensure that your employees are adequately trained to use the systems and that they follow applicable policies.

You will have sole responsibility for the acquisition, operation, maintenance, and upgrading of the Computer System. You must use the Computer System for on-line reporting of sales, ordering supplies, keeping customer information, and reporting other information to us as required under the Franchise Agreement (collectively, the "Business Management System"). As of the date of this disclosure document, our mandatory hardware and software requirements for the Computer System include, but are not limited to, the following: (1) laptop or desktop personal computer (like a MAC Book Pro, HP, Dell etc. or equivalent), a network card, a most recent Microsoft or Apple operating system, Adobe Acrobat Reader (most recent version), the most recent Microsoft Office Suite or Apple equivalent and the POS software; (2) a monitor; and (3) a color printer, (4) iPad or Android tablet, and (5) compatible mobile phone. The Computer System must contain and you must be reasonably proficient with such computer software and internet programs that we designate for use from time to time, including: database, spreadsheet, financial, word processing, communications, e-mail and calendaring programs. You must obtain and install a highspeed Internet connection (through DSL or cable modem) to your Computer System at the site and maintain a valid e-mail address and account to which you have access and through which we may contact you. You must maintain a dedicated business mobile phone number that is separate from your personal phone line. If you do not already have a computer system and peripherals that satisfy these requirements, we estimate that the Computer System will cost between $1,000 to $1,500. You will also incur fees for the telephone lines and high-speed Internet connection.

We do not have any obligation to provide ongoing maintenance, repairs, upgrades or updates to the Computer System. Nor do we have any obligation to reimburse you for any Computer System costs. You must maintain your Computer System and keep it in good repair. You must update or upgrade the Computer System, including any point-of-sale system components and software, as we require at any time during the term of the franchise, at your sole expense. We estimate that the cost of optional or required maintenance, updating, upgrading or support contract will be between $100 and $1,000 per year. While we provide an estimate of the annual cost of any maintenance, updating, upgrading, or support contracts, there is no contractual limit on the frequency or cost of your obligation to upgrade or update the Computer System.

We have the right to independently access all information you collect, compile, store or generate at any time without first notifying you, and you must give us password access to your Computer System to enable us to obtain such data. There are no contractual limitations on our right to access or retrieve any information contained

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)