2. We Over Thought Ourselves The intent behind having four franchise fee models was to offer a menu for people to choose from to best meet their franchise needs As you saw earlier today people are gravitating to two of the franchise fee models

3. Existing Four Franchise Fee Models Flat Fee Hybrid GCI All Inclusive

4. Existing Four Franchise Fee Models Fee Model TypeHow Many Flat Fee31 Hybrid21 GCI0 All Inclusive13

5. Moving to Just TWO Franchise Fee Models Flex Model (Formerly Known As Hybrid) – – Includes both GCI and Flat Fee Options within the plan All Inclusive Model

9. Let’s Review Back November 2011 we introduced the All Inclusive Franchise Fee Model Structure of this fee model has not changed

10. This Is What We Presented Back in 2011 All-Inclusive Model – Office Fee = $525/Month for first office and $100/Month for each subsequent office under the same contract (includes franchise, broker management system and a broker website) Here’s How the $525 Breaks Down = - $200 to franchise and broker management systems and broker website - $163 to REI - $163 to Region

11. This Is What We Presented Back in 2011 All Inclusive Model – Institutional Marketing = $25/Executive/Month You may charge an additional regional IM fee

12. This Is What We Presented Back in 2011 All Inclusive Model – Royalty = – (< $99k): $195/Transaction - $75 = $60 to REI, $60 to Region – ($100k-$499k): $295/Transaction - $75 = $110 to REI, $110 to Region – ($500k-$999k): $395/Transaction - $75 = $160 to REI, $160 to Region – ($1mil+): $495/Transaction - $75 = $210 to REI, $210 to Region

13. Questions?