1. FRANCHISE AGREEMENT
The Franchise Agreement runs for a period of 10 years, whereafter it is renewable by mutual
agreement for an additional 5 year period. The franchisee is required to sign the Lease for the
premises either in his personal capacity or as the nominee of a legally constituted company.

A franchise licence fee of R95 000-00 plus VAT is payable.

2. TRADEMARKS
The franchisee will be authorised to use the franchisor's name, logos, signs, advertising
material and trademarks in accordance with the conditions as specified in the Franchise
Agreement, provided that such logos, signs, advertising material and trademarks shall be used
in respect of the franchised business and in the manner approved by the franchisor.

3. ROYALTY AND ADVERTISING FEES
Each franchisee is required to pay a monthly franchise royalty fee equivalent to 5% of nett
sales plus VAT.
In addition, an advertising fee equivalent to 1% of nett sales plus VAT is payable to the Cattle
Baron Advertising Fund.

A "Royalty Declaration" form is to be submitted to our offices by no later than the third day of
the following month.

The Royalty and Advertising fees payable by the franchisees shall be paid by no later than the
7th day of the following calendar month.

4. TERRITORIAL RIGHTS
Cattle Baron franchisees are granted exclusive rights in a specified territory in which to operate
their franchise. The Cattle Baron Group shall not be entitled to appoint another franchised
outlet within a pre-determined radius to the premises, without offering the existing franchisee
the right of first refusal to such a proposed new franchise.

5. TERMINATION
The Franchise Agreement contains specific terms and conditions relating to the termination of
the Franchise Agreement. These terms and conditions must be carefully examined prior to
entering into this agreement.

6. OPERATIONS MANUAL
An Operations Manual is presented to all franchisees when they commence training and must
be utilised throughout the period of the Franchise Agreement. This manual will be continuously
updated and remains the property of the Cattle Baron Group and may under no circumstances
be loaned out/reproduced in any way. The Operations Manual forms part of the Franchise
Agreement and is binding on the franchisee as are any amendments, additions or variations
thereto.