Under what circumstances can Kidokinetics terminate the Franchise Agreement without providing an opportunity to cure?

• 16.2. Defaults with No Opportunity to Cure.

Franchisee will be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon notice to Franchisee, if Franchisee, or any Principal, as the case may be:

• 16.2.1. fails to open the Kidokinetics Business within the time and in the manner specified in Article 7.

• 16.2.2. falsifies any report required to be furnished Franchisor hereunder;

• 16.2.3. abandons the Kidokinetics Business for a period of five consecutive days or more, with the term "abandon" including any conduct which indicates a desire or intent to discontinue operating the Kidokinetics Business in accordance with the terms of this Agreement and will apply in any event if Franchisee fails to operate the Kidokinetics Business as a Kidokinetics Franchise LLC. business for a period of 5 or more consecutive days without Franchisor's prior written approval;

• 16.2.4. fails to comply with any federal, state or local law, rule or regulation, applicable to the operation of the Kidokinetics Business, including, but not limited to, the failure to pay taxes;

• 16.2.5. defaults under any lease or sublease of the real property on which the Kidokinetics Business is located;

• 16.2.6. understates Gross Sales by 5% at any time, or understates Gross Sales by any amount on three occasions or more, whether or not cured on any or all of those occasions;

• 16.2.7. permits a Transfer in violation of the provisions of Article 15 of this Agreement;

• 16.2.8. fails, or Franchisee's legal representative fails, to transfer the interests in this Franchise Agreement and the Kidokinetics Business Location upon death or permanent disability of Franchisee or any Principal of Franchisee in accordance with the procedures set forth in Article 15 of this Agreement.

• 16.2.9. has misrepresented or omitted material facts in applying for the Franchised Business;

• 16.2.10.is convicted of, or pleads no contest to, a felony or a crime that could damage the goodwill associated with the Marks, or does anything to harm the reputation of the System or the goodwill associated with the Marks:

• 16.2.11. receives an adverse judgment or a consent decree in any case or proceeding involving allegations of fraud, racketeering, unfair or improper trade practices or similar claim which is likely to have an adverse effect on the System, or the Marks, the goodwill associated with the System or Marks or Franchisor's interest, in Franchisor's sole opinion;

• 16.2.12. conceals revenues, knowingly maintains false books or records, or knowingly submits any false reports;

• 16.2.13. creates a threat or danger to public health or safety from the maintenance or operation of the Kidokinetics Business:

• 16.2.14. refuses to permit Franchisor to inspect or audit Franchisee's books or records;

Kidokinetics

• 16.2.15. makes any unauthorized use of the Marks or other Intellectual Property or any unauthorized use or disclosure of Confidential Information (as defined in Section 18.2);

• 16.2.16. fails to comply with the non-competition covenants in Section 18.5;

• 16.2.17. defaults in the performance of Franchisee's obligations under this Agreement three (3) or more times during the term of this Agreement or any renewals or has been given at least two notices of default in any consecutive 12-month period, whether or not the defaults have been corrected;

• 16.2.18.has insufficient funds to honor a check or electronic funds transfer three or more times within any consecutive 12-month period, whether or not the defaults have been corrected;

• 16.2.19. defaults, or an affiliate of Franchisee defaults, under any other agreement, including any other franchise agreement, with Franchisor or any of its affiliates, suppliers or landlord and does not cure such default within the time period provided in such other agreement;

• 16.2.20. issues a press release or responds to a media inquiry without prior approval from Franchisor;

Source: Item 22 — CONTRACTS (FDD page 59)