Under what conditions can the Gokhale Method terminate the franchise agreement?

e Groups").

• 1.2. Conditions and Suspension. You recognize and agree that the right granted to you to teach the Gokhale System is limited by the terms of this Agreement, and that if you violate any term of this Agreement or the Policies under it, we have the right to terminate it pursuant to Article 15 of this Agreement. You recognize and agree that because of our concern for quality and uniformity throughout the System and because we will bring you improvements and innovations in teaching the Gokhale System, that we have the right to suspend your license to teach if you are not current on our requirements for teachers or are not otherwise in good standing. The requirements to maintain qualification and to be in good standing are or will be included in our Teacher's Manual and/or Policy Statements.
• 1.3. Approved Facility. You shall operate the Franchised Business only in a facility that meets our specifications as set forth in our Teachers' Manual or Policy Statements ("Approved Facility").

2. YOUR LOCATION and OUR RESERVED RIGHTS

• 2.1. Your Location. You may teach the Gokhale System at any Approved Facility within the country of _______, provided that we have the right to approve the general geographic area, such as city or county, in which you operate and market. You also may change the general geographic area in which you operate, subject to our reserved right to approve the area. We will not unreasonably withhold our approval for an area or relocation. You understand that we do not grant, and you do not have, any rights to any territory, location or area, or rights to any customers or students. While you have the right to recruit and teach students in accordance with this Agreement, you acknowledge that, apart from the rights we grant in this Agreement, that we have the exclusive rights to communicate with, market to and maintain relationships with customers or students that you teach. You will not contest our rights to do so, nor will you interfere with our relationships with students that you teach. In addition, we reserve all the rights set forth below. You have no exclusive right to operate or market in your area and other franchisees may operate and market in the same area as you.
• 2.2. Our Express and Implied Reservations of Rights. We retain all rights not expressly granted hereunder, including but not limited to the following, regardless of the impact on, or proximity to, your

Franchised Business:

• 2.2.1. The right to teach, offer or sell services or products of any kind, or to franchise or to grant to others the right to teach, offer or sell services or products of any kind, under the name "Gokhale Method" or under any other name or mark, at any location or in any territory whatsoever, through any channel of trade (including Internet sales and mail order sales), to any persons, regardless of whether you have any past, existing or prospective relationship with them;
• 2.2.2.

Source: Item 22 — CONTRACTS (FDD page 34)