e and consultation in connection with the operation of your Epcon Communities business. (Franchise Agreement, Section 4.1.6).

Advertising Programs

We or a business entity selected by us will maintain a web site to promote your projects as well as the projects of our affiliates, Epcon, Epcon Carolinas, Epcon Indiana, Epcon Tennessee, and Epcon Georgia. (Franchise Agreement, Section 7.5). Currently, this web site is maintained by our affiliate, Epcon Marketing. You will be provided web pages on this web site for each of your projects. (Franchise Agreement, Section 7.5). Before you start marketing or selling activities for any of your projects, you must provide the information specified by us so that web pages can be created for your project. (Franchise Agreement, Section 7.5). We may terminate the web site and the related web pages at any time. You will be granted access to the administrative portion of www.epconcommunities.com, so that you may make periodic updates to your web content on that web site. You must designate a person in your company with the role of web site administrator for providing content updates to your web pages. (Franchise Agreement, Section 7.5(i)).

Epcon, Epcon Carolinas, Epcon Indiana, Epcon Tennessee and Epcon Georgia advertise the projects that they develop. Other than the web site discussed above, we do not conduct advertising for your projects, and we are not required to spend any amount for advertising in the areas where your project is located. As part of the materials provided to you at the time you sign the Franchise Agreement, you are provided marketing campaign ideas and materials, templates for brochures, direct mail and signage, virtual renderings and tours for Epcon model homes, product and lifestyle-based photography from various Epcon Communities around the country all for your use in your own individual marketing efforts for your Epcon Communities project. These materials are based on Epcon's experience in using the Development System licensed to you by us and have been partly developed in-house and partly by outsourced design and advertising agencies. In your advertising, you are likely to use media that are local in scope.

We may periodically arrange for printing of sales brochures on a group basis to lower the per item cost, but we are not obligated to do so. Each participant in a group order pays its pro-rata share of the total cost of the sales brochures. Epcon does not receive any revenue from a franchisee's purchase of these sales brochures.

You may prepare your own advertising plans and materials, which you must submit to us for our written approval at least 30 days before you intend to use them. (Franchise Agreement, Section 7.3). Approval will be based upon your compliance with the provisions of the Franchise Agreement and the Manual regarding the use of service marks and copyrighted and patented materials relating to or identified with Epcon Communities. We will not unreasonably withhold our approval. If written disapproval is not received by you from us within 30 days of the date that we receive your advertising plan and/or materials, we will be deemed to have given the required approval. Upon 30 days prior written notice, we can revoke our approval of any advertising previously approved.

We may apply additional advertising restrictions to your use of the Internet, web pages or email. The web site located at www.epconcommunities.com is the only authorized Epcon Communities franchising

web site. You may not own or operate a separate website for the promotion of your Epcon business. (Franchise Agreement 6.9). You must disclose to us all web sites owned, registered to or operated by you that are related to residential construction or real estate sales. (Franchise Agreement, Section 6.9). You must comply with all laws and regulations related to the web site (Franchise Agreement, Section 7.5), and honor all prices advertised on your web pages on the web site. (Franchise Agreement, Section 4.3).

You must pay Epcon Marketing an Initial Marketing Program Membership Fee ("Initial Marketing Program Membership Fee") of $5,000 for each of your projects. (Franchise Agreement, Section 7.4).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 39–48)