What kind of support does Engel & Volkers provide in connection with the use of the Engel & Volkers System?

ior written consent of Franchisor.

• 4.8 Loss of Rights: If Franchisor's right to establish a franchising system utilizing the ENGEL & VÖLKERS System and Trademarks in the United States as set forth in Section 4.2 expires or is terminated, this Agreement shall automatically terminate upon written notice

to Franchisee. Franchisee is not entitled to file any further claims for compensation, nonperformance or reduction of royalties payable on the grounds of loss of these Trademarks.

5. General Services to be Provided by Franchisor

• 5.1 Services: Franchisor will provide the following services to Franchisee under this Agreement:
  • 5.1.1 Access to the ENGEL & VÖLKERS international network;
  • 5.1.2 Training courses for Franchisee in accordance with Section 9;
  • 5.1.3 Administrative, technical, and marketing support in connection with the use of the ENGEL & VÖLKERS System;
  • 5.1.4 Access to the System Documentation, which contain Franchisor's recommended methods, specifications, procedures, and products for operation of Franchisee's Residential Real Estate Brokerage under the ENGEL & VÖLKERS System. Franchisor reserves the right to make changes in the System Documentation from time to time;
  • 5.1.5 Organizing exchanges of information and experience among franchisees;
  • 5.1.6 Make Franchisor's proprietary Integrated Product Suite available and integrate Franchisee into the ENGEL & VÖLKERS information technology network; and
  • 5.1.7 Optional programs, designations and services that Franchisor may develop from time to time and make available to qualifying franchisees.
• 5.2 Delegation of Services: Franchisor shall be entitled to delegate performance of services to be provided under this Agreement to qualified third parties. The ongoing Royalty payment stipulated in Section 14.2 will cover the services provided by Franchisor, except Franchisee will have to pay for services of third parties subject to such third parties' or Franchisor's then current price lists (for example, additional training and GG Magazine advertising, and for the cost of marketing materials). Failure on Franchisee's part to avail itself of any services shall not affect the amount of the Royalty payments. Each of these price lists (hereinafter called the "Price Lists") are subject to revision at any time by the third party or by Franchisor. Franchisee will pay the prices set forth in the respective Price List then current at the time the services are ordered. Franchisor will periodically provide Franchisee with a separate price list for training, the GG Magazine advertising, and marketing articles.
• 5.3 Cooperation: Should the provision of a given service require Franchisee's cooperation, in particular its attendance at conferences and/or training courses organized by Franchisor, Franchisee shall not be entitled to claim provision of the service unless it takes the necessary action to receive the service.
• 5.4 Approved Suppliers: Franchisor has the right to designate or approve, from time to time, one or more third parties (hereinafter called a "Supplier" or "Suppliers"), which Supplier may be Franchisor or one of its affiliates, to supply Franchisee with certain products and services, including supplies to be used in Franchisee's Residential Real Estate Brokerage.

If Franchisor does so designate or approve a Supplier, Franchisee shall purchase the categories of products or services only from Suppliers so designated or approved by Franchisor. Franchisor, or one or more of its affiliates, may be the sole approved Supplier.

Franchisor may concentrate purchases with one or more Suppliers to obtain lower prices, better advertising support and/or better services for any group of franchisees. If Franchisee proposes to contract for or purchase products or services from any supplier that Franchisor has not previously designated or approved for such products or services, Franchisee must notify Franchisor in writing and submit to Franchisor all information, specifications and samples that Franchisor requests. Any products or services from Suppliers must be in accordance with the then-current ENGEL & VÖLKERS System standards. Such approval of any products or services will be made by Franchisor based on samples that have been provided to it. Franchisor reserves the right to require that samples from the proposed Supplier be delivered to Franchisor or its designated testing facility for evaluation and testing. Franchisor will have sole discretion as to whether or not to approve any supplier. Approval of a Supplier as to any products or services must be made by Franchisor in writing and may also be conditioned on requirements relating to the frequency of delivery, standards of service, including prompt attention to complaints, concentration of purchases and other criteria, and may be conditioned on the supplier providing Franchisor with adequate insurance protection, the Supplier's execution of reasonable indemnity and confidentiality agreements, and the Supplier's payment of reasonable license fees to Franchisor if the Trademarks are to be used, and may be temporary or conditional, pending Franchisor further evaluation of the Supplier.

Franchisor reserves the right to re-inspect, at any time, the products and/or services of any approved Supplier and to revoke the approval upon the Supplier's failure to continue to meet any of Franchisor's then current criteria.

Source: Item 22 — CONTRACTS (FDD page 88)