What are the Caring Transitions franchisee's obligations regarding participation in the franchise system (Item 9) and how does that relate to the System Standards described in Item 8?

System Standards. You should understand that every detail of your franchised business will be important, not only to you, but to us and to every other Caring Transitions franchisee as well, in order to develop and maintain high and uniform operating standards based on the concepts of quality, consistency, reliability, and professionalism; increase the demand for the products and services sold by Caring Transitions franchises; and establish and maintain a reputation for offering uniform services exemplifying high customer service standards, ethical business practices, and integrity. A fundamental requirement of your joining and remaining a part of the Caring Transitions system will be your commitment to the operation of your franchise in accordance with our system standards. During the term of the franchise agreement, you must, at all times, develop, maintain, and operate your Caring Transitions franchise in full compliance with all Caring Transitions system standards, as we may modify and supplement them in the future.

We formulate our specifications and standards based on input from our management, operations personnel, and franchisees. We make modifications to our specifications and standards according to operational needs and risk and opportunity assessments. The specifications and standards are issued to you through our training program, operations manual, and our intranet Web site.

• 7.2 System Standards.

Franchisee acknowledges and agrees that every detail of the System is important, not only to Franchisee but also to Franchisor and other Caring Transitions franchisees, in order to develop and maintain high and uniform operating standards, to increase the demand for the products and services offered by all franchisees, to establish and maintain a reputation for uniform, efficient, high quality services, and to protect the goodwill of all Caring Transitions franchises.

Franchisee further acknowledges and agrees that a fundamental requirement of the System, this agreement, and other Caring Transitions franchises is adherence by all franchisees to the uniform specifications, standards, operating procedures and rules prescribed by Franchisor for the development

and operation of the franchised business (hereafter referred to as "System Standards"). Accordingly, Franchisee agrees to comply with each and every System Standard (including, by way of example and not limitation, a designated maximum or minimum for a Buyer's Premium or for other Permitted Products and Services), as periodically modified and supplemented by Franchisor in its sole and absolute discretion, during the term of this agreement. Franchisee further agrees that System Standards prescribed from time to time in the Manual, or otherwise communicated to Franchisee in writing, shall constitute provisions of this agreement as if fully set forth in this agreement. All references to this agreement include all System Standards as periodically modified.

• 7.17 System Evaluations.

Franchisee shall participate in and fully comply with all client satisfaction programs Franchisor may establish from time-to-time, including the requirements to advertise and make known and available to clients all such programs and to honor the terms of all such programs.

Franchisee is subject to and may be required to participate in any evaluation of standards or quality that Franchisor may conduct or sanction for all Caring Transitions franchises.

Franchisee shall provide Franchisor and Franchisor's designees with access to Franchisee's books, records, files, employees, and independent contractors for this purpose.

• (b) Franchisee shall not directly or indirectly establish, maintain, or operate a separate Caring Transitions Web site without Franchisor's prior written consent.

Any Caring Transitions Web site established, maintained, or operated by Franchisee must contain a link to and from Franchisor's Web site and Franchisor has the right to require modifications of the content, appearance, and format of Franchisee's Caring Transitions Web site.

• (iii) Any Caring Transitions Web site established or maintained by Franchisee must contain a hyperlink to Franchisor's Web site and all other hyperlinks to third-party Web sites must be previously approved in writing by Franchisor.

• (iv) Any modifications to a Caring Transitions Web site established or maintained by Franchisee must first be approved in writing by Franchisor.

• (v) Before establishing a Caring Transitions Web site, Franchisee shall obtain appropriate legal advice regarding the content and to ensure that the Web site complies with all relevant legislation and regulations.

• (vi) Franchisee shall fully indemnify Franchisor against all and any claims arising out of any Web site established or maintained by Franchisee.

• (f) Franchisee shall not participate in or register with any Internet group, Web site or similar medium which has as its aim (whether stated or not) or its effect the denigration of Franchisor or the System.

• (g) Franchisee shall not open an account or profile on a social media site relating to the franchised business or using any of the Marks without Franchisor's prior written consent, which may be given subject to conditions, which may include the grant to Franchisor of administrator rights, and subject to Franchisee's compliance with the provisions of the Manuals relating to social media sites.