Q. How does the Franchise Agreement better protect us (as franchisees)?

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1 Q. Why is Loan Market doing this? What are the benefits to the Franchisor? A. There are some key benefits to the franchisor. Firstly, we define clearly who we are. We will be a franchisor. Not an aggregator or anything else. It helps give clarity to our team. Secondly, the package and the agreement introduces more simplicity and replaces a whole series of agreements that don t reflect how we do business today. It also introduces a single commission card that I hope will increase retention and the ability for franchisees to grow their businesses whilst having full access to the resources we offer. It also gives us a better proposition to recruit talent into our Group. Q. How does the Franchise Agreement better protect us (as franchisees)? A. The franchise sector has been regulated by the ACCC since A cornerstone of the regulation is the Franchising Code of Conduct. The 'Code' has been created to assist the ongoing relationship between the franchisee and franchisor. Issues covered include: Disclosure of the pertinent information regarding the Franchisor, Conditions contained within the Franchise Agreement, and Complaint handling and dispute resolution procedures. Q. Not trying to ask an uncomfortable question but it s one that runs around the grapevine with no clear answer - in light of the collapse of Refund Home Loans and the partial payout from the receiver to the franchisees who essentially did all the work, under this new franchise arrangement with Loan Market, what is the position with regard to continuation of trail payments in the very unlikely event that Loan Market ceased business for whatever reason? Are we at risk or are we protected in any way? Under the new franchise structure, are our existing rights (whatever they are) enhanced or diminished? Trails represent the safety net that we have worked incredibly hard for, not to mention they reward us for ongoing client maintenance that by default also rewards Loan Market. A. In relation to trail payments, there is no change to your existing rights under the proposed franchise structure versus the current structure. The lender agreements are the documents that provide Loan Market Group the right to commission from the lodging of a loan with that lender. The existing introducer agreement and the proposed franchise agreement are the documents that provide the broker with rights to be paid commission. Most commercial documents and all lender documents have a clause to the effect that the rights to receive income cease if the contracting party goes into receivership (or suffer some other kind of insolvency event). That remains a commercial risk for all brokers and aggregation businesses in our industry. The best way to mitigate this risk is to ensure: 1. The business is profitable 2. There is no or little debt in the company 3. Risk and compliance measures are in place and taken seriously 4. Adequate insurance policies are in place Loan Market operates by these fundamentals. All the rights a franchise owner has to be paid commissions are likely to survive if Loan Market (Franchisor) is sold - the buyer would take on the obligations as we have done when we have bought businesses. For clarification, we have no current intention of selling the business. April 14 Page 1 of 12

2 Q. Does a Franchisee need to be a broker? A. The franchisee does not have to be an authorised Credit Representative if they are not engaging in credit activities. Q. What is the difference between the existing Associate agreement compared to the new franchise agreement to say it is better? A. In our view, the new agreement is better for all Loan Market brokers, as the Terms and Conditions reflect how we do business today. We have removed legal jargon and are confident the Franchise Agreement provides clarity to Loan Market and the broker. For this reason, we are asking for your feedback. Q. As an Associate do we need to sign the new Franchise Agreement in all cases even though we are staying on the same commercial arrangement re commissions? A. Yes. As we are changing to become a franchisor we don t want to have some brokers who are franchise owners and some brokers who remain contractors. That situation would be legally ambiguous and certainly culturally problematic. We want to have all people come across to the new franchise structure. When you examine the two documents we believe the franchise agreement better reflects how we do business and is a clearer and fairer document than our existing ones. Q. How can I legally be forced to sign a new agreement? A. Loan Market cannot force you to sign an Agreement. From 1 July 2014 the current agreements will be replaced with a Franchise Agreement. That is, Loan Market cannot operate under the current agreement and the new Franchise Agreement from July onward. This means that all brokers will need to decide on whether or not they continue to work with Loan Market. Q. What if I don t sign the new Agreement? A. Unfortunately, if a broker doesn t sign the new agreement as a franchisee or the loan writer letter (for a loan writer working for a franchise owner) then they will be electing to leave the Group. That is, we cannot have some brokers who are franchisees and some who stay on old contracts. Our legal position will be as franchisor, but just as important, culturally this would be divisive and ambiguous. Whilst we do not want to lose any brokers from our Group, we also need to provide clarity on who we are and where we want to go. Doing that may alienate some individuals who decide they do not want to change with us. If that is the case we apologise to brokers who decide to exit for causing this frustration and the logistics of changing Groups. We believe the benefits it will give to all of those who want to stay will be significant and long term. The key question is why somebody would not want to sign the new agreement? The premise of the question is that the broker is giving up something by signing the agreement. We do not believe that is true and would encourage everybody to compare the existing document to the proposed agreement. April 14 Page 2 of 12

3 Q. If we are an associate now can we stay as we are then change later? A. From 1 July 2014, the current agreements will be replaced with a Franchise Agreement. That is, Loan Market cannot operate under the current agreement and the new Franchise Agreement from July onward. As as Associate Broker, you can continue to operate under the current fee structure of 90/80 or 90/90 at +36m under the new Franchise Agreement. At the same time, you will have the option to review your business requirements and down the track, you may elect to move to the new Fee Card (80/80 through to 92/92) due to the Leads and Ray White opportunities. This decision will take time and that is why we have decided to grandfather the current payment terms. Q. If you wanted to trade under your own business name does the franchise arrangement restrict this? A. If you are an existing Associate broker and you currently trade under your own business name, we will allow this to continue under the new Franchise Agreement. However, this will not be an option for new brokers from 1 July 2014 or if you elect to come to the new fee card. Q. Does a franchise arrangement mean restriction on the value of individual business, the ability to sell, cost to sell and other issues? A. No, you can still sell your business and trail to whoever you wish. If you also sell the franchise then we reserve the right to approve the incoming franchisee (such consent not to be unreasonably withheld). In that case you as the selling franchisee would keep whatever capital value you get for your franchise (which we hope will be worth more than a company with an introducer agreement). Q. I'm changing business structures and was about to sign a new agreement just confirming I can still stay as I am as an associate but trading as a different entity? A. Yes. If you are currently an Associate, you may remain on the same commercial terms even if the business name or legal structure of your business changes in the future. Q. Will the current loan writers or employees of businesses, be offered the franchise documents or do they automatically go straight to a loan writer of the franchise A. The Franchise Agreements will be issued based on the commercial arrangements that exist today, unless a loan writer or business owner notifies Loan Market in writing as to a change in the relationship. As at today, a loan writer can work for a business owner or have a direct agreement with Loan Market and parties to an agreement should discuss how they intend to operate moving forward. Q. Is there a template for Loan Writer agreements? A. Loan Market will provide a template for the commercial agreement that will exist between the franchise owner and a loan writer. The franchise owner and loan writer will need to agree on the terms of this agreement and seek their own legal advice as required. Q. What happens if I die? A. The laws around Estate and Succession will apply depending on your individual circumstances. You should seek advice from your solicitor and/ or financial planner. April 14 Page 3 of 12

4 Q. What if a RW Office doesn't want to associate with a LM Broker but an agent from that office does? A. We are currently reviewing our policy on this. Q. RW open market. What does this mean? Do the Broker and Agent need to ask the Principal first? A. This refers to the ability for the Loan Market franchisee to negotiate directly with the Ray White franchisee to vary the default commission split between the two businesses. The current default is a 20% referral fee from the Loan Market franchisee to a Ray White office. If a separate agreement is reached then Loan Market will continue to facilitate the payments on behalf of the Loan Market franchisee. Q. Will a RW Principal have the opportunity to 'grandfather' their rate of 90/80? A. Yes, all Associate brokers who hold an introducer agreement will have the opportunity to grandfather their existing commercial arrangements, however, they will be required to sign a franchise agreement which will contain their existing fee card. Q. When will agreements between Ray White and the broker be allowed rather than RW and Head Office and why does LM do it this way? A. Referral agreements with the Ray White network are held by Loan Market and each of the Ray White franchisees as it allows multiple brokers to work under the terms of the agreement. This will continue under the free trade policy, however, the broker and Ray White Principal can nominate a payment structure that differs to 20/20. Loan Market has a responsibility to the Ray White network and the rights to continue to receive payments cannot be passed down to a Loan Market franchise owner. Third party referral agreements will be between the broker and individual referral partners. Q. How will commissions be applied at July 1? In other words, will it be based on every settlement after July 1 or every receipted settlement after July 1? A. The new commission rate will be applied to settled loans dated 1 July 2014 or later. An RCTI can include loans with different settlement dates, depending on the date of client drawdown. The RCTI for the month of July will most likely include loans with a settled date of June or prior, as lenders pay Loan Market the month after the loan is settled with a client. Therefore, you will start to see the new percentage applied on your August RCTI. Q. If I sell my Franchise does the new Franchisee get 90 guaranteed under MRP? A. The MRP is specific to the franchise and is not transferrable on sale of the business. Loan Market reserves the right to approve the suitability of an incoming franchisee, such consent not to be unreasonably withheld. Q. If I am on an 85 tier for example and I sell my business, will the new franchisee get 85 as well or do they start at 80 again? A. The commission a business earns is determined by the performance of that business in each year, commencing on the start date of the business and reviewed at each anniversary date. A franchise owner that is paid 85/85 could sell the business on the same terms, whereby the incoming franchisee has a start rate of 85/85 up and until the review of performance for that business - as per the applicable anniversary date. April 14 Page 4 of 12

5 Q. If my trail falls to $250pm how will LM calculate the multiple upon which they will pay me out? A. The calculation is $250 x 12 (annualised value) = $3,000 x by a multiple = Payout figure. The multiple can vary from and may be influenced by size of the loan book; run off rates for the book during the last 12 months and current Market conditions. The Operations Manual will outline this calculation in more detail. Q. As a Loan Writer under a Franchise owner, if my current individual settlements are eligible for a higher % of commission than I'm on currently e.g if i'm on 75% now but qualify for 85% is the head broker being paid the extra 10% or is it paid to me directly? A. Our commission scale and calculations are based on the receipted settlements of the Loan Market franchise (total business) and the fee card applies to the Franchise Agreement held by the franchisee. Loan Market does not have a direct agreement with a loan writer. We will continue to recognise individual achievements in our recognition programs, however, loan writer payments are set by the franchise owner just as they are today. Q. I am an Associate broker getting 90% I will lose 6% to 8% without leads. What is my motivation to accept new comm structure/ weighed up against the uncertainty of LM online leads. A. Associates commercial arrangements are being grandfathered so there is no requirement to change existing commission arrangements. However, some Associate brokers will weigh up receiving online leads and access to Ray White as an opportunity to grow their business faster with new leads and new customer referrals from those leads pushing them (and/or their loan writers) higher up the Fee Card scale the next year and beyond. As an example, a 90/80 Associate settling $1million per month moving to 82/82 would need to settle only 1 loan extra per quarter to break even on their 90/80 arrangement without accounting for the additional referrals that could come from these loans. Q. Are there any discounts for Elites? A. The Elite recognition program is separate from the structure of broker payments. Loan Market provides a reward and recognition program to individual and business elites in addition to rewarding performance through tiered commission splits. Q. If we write say $25m this year, but next year we only hit $20m, does our commission reduce for the next 12 months at a reduced rate or remain at the 85%? A. Under the above scenario the commission will automatically reset. At each anniversary of the agreement the fee that attaches for the next 12 months will be the percentage that is based on the previous 12 months receipted settlements. Q. It would be good if the milestone figures increased by 1% for each $50m from $250m to $500m? A. Noted as a request. However, we don t anticipate changes to the MRP with additional base rates. April 14 Page 5 of 12

6 Q. How do we find out our receipted settlements YTD? A. We are in the process of consolidating the figures and our intention is to publish them over the next few weeks for distribution by State Management teams. Q. Not that it specifically affects me was there a thought to do a rolling 12 months for settlements A. We discussed the concept of a rolling 12 months, however, decided to go with Anniversary Date to review performance. Q. If a loan is written and approved in this year and settles next year, which rate will it be paid on? A. The new commission rate will be applied to settled loans dated 1 July 2014 or later. The settled loan date is based on the client drawdown date as defined in the lender files that are provided with the commission payment. Q. Is it for settlements for the financial year before?? A. The new card will apply from 1 July 2014 and performance will be reviewed on each 12 month anniversary of the agreement. Any revised rate is applied to settled loans for the year from anniversary date, based on the performance during the past year. Q. Currently commissions are paid direct to me from Loan Market, if I elect to join a franchise will my current commission payments be still paid to me? A. Loan Market will continue to pay historical payments to a loan writer on behalf of the broker - subject to the terms of the sub originator agreement between the broker and loan writer. Q. Do I have to pay my Loan Writers more if I m getting paid more? A. With effect from the Commencement Date, the broker must cease all sub-introducer agreements entered into in connection with the Introducer Agreement (as this will cease). Loan Market will provide templates for a new commercial agreement between the franchise owner and the loan writer. The terms of this agreement are as agreed between the franchisee and his/her loan writers and not something that Loan Market imposes on either party. Each business is different as some franchisees provide significantly more value to their loan writers than other franchisees. The cost of running a business, providing infrastructure, leadership and mentoring as well as marketing programs and lead generation opportunities are significant. Some businesses do this better than others and commission rates to loan writers should, in theory, be different to reflect that. Q. Can I move to the new card earlier? A. No, the new agreement will commence from 1 July Q. What is the idea behind the Milestone Reward Program (MRP)? A. The MRP is designed to reward and retain brokers by providing a base rate that compliments the rate card. Recognition is applied to the consolidated volume of the franchisee and the MRP level is the same...regardless of the number of Loan Writers (if any). April 14 Page 6 of 12

7 Q. Does the new $12m hurdle apply to existing Academy members and when? A. The Academy settlement hurdle will be reduced to $12m at 1 April Q. How will I be charged for converting a lead? A. Upon conversion to settlement, 30/30 will be deducted from your commission in the same way as a Ray White 20/20 deduction. Q. A LM Franchisee wants to bring on an Academy broker - do they get leads at no charge? A. An Academy broker will hold a direct agreement with Loan Market and be a franchisee in their own right. They will operate under an alternative card of 70/20 with no lead generation fee up and until they achieve $12m in receipted settlements. If a Loan Market franchisee has a loan writer working for their business, the lead generation fee applies to the franchisee and any loan writers. This includes any loan writers that attend the Academy for training support, before working for the franchise owner. Q. Leads Costs - when do I pay the 30% and on what leads? Do I pay on leads received before 1 July but settled after 1 July 2014? A. The Lead fee is only payable on settled loans generated from Loan Market. Given that the time for a lead to convert into a settlement can be a lengthy one, we have decided not to charge the lead generation fee on any loans with a settled loan date of 31 December 2014 or earlier. The settled loan date (client drawdown) is the date that commission payments are calculated from and by giving this extension, we are providing adequate time for existing leads to convert without a fee. From 1 January 2015, the 30% lead generation fee will be applied. This excludes 360 change from 20% to 30% which is based on new office set-up from today onward. Q. 360 leads - when does the 30% fee apply from? A. We have made the decision during the roadshow to grandfather all existing 360 commissions (i.e. 20%) for offices currently referring using this method. The 30% will apply to new offices adopting this method from today and will be disclosed at time of setup. Q. Can you take leads and stay on the Associate channel and pay the 30% lead generation fee? A. No. If a broker chooses to stay on their existing Associate package they cannot access leads or Ray White. We want to both honour the existing arrangement we had in place and at the same time ensure there is a transparent and level playing field. Q. Can an Associate who is transitioning to the New Card deal with Ray White and receive 360 and Call Centre leads during this period? A. Yes, all brokers working under the new fee card will have access to the above upon signing the new Agreement. April 14 Page 7 of 12

8 Q. Is it possible to set a uniform referral fee that all Loan Market Brokers can offer to other outside sources of referrals? It is hard enough competing against Brokers from other Groups without having to compete against other Brokers who are also Marketing our services as Loan Market Brokers? The New proposals look great but we need to appear consistent in the Marketplace. A. Loan Market does not set boundaries as to commercial arrangements between brokers and outside parties and believe this would be detrimental to free trade for all brokers. Q. Referrals are not free - we have to pay for them. A. The answer to this is in a couple of parts. Firstly you can generate referrals from whomever you are able and you are free to have your own commercial arrangement on this, noting that you need to have, under NCCP a referrer agreement in place. This commercial arrangement may involve the exchange of money. Loan Market currently administers the Ray White referral program and there is a default referral fee brokers pay of 20%. This can be varied by agreement between the real estate principal and the broker. In terms of online leads we are introducing a lead generation fee for leads that Loan Market generates and supplies. This does not apply to leads coming from a Loan Market broker s website (these are free). This lead generation fee is 30% which partially offsets our cost of generating them. It is the choice of the individual as to whether or not they want leads. In the past we have generated and given leads to leads brokers. Moving forward we want to increase the base commission to brokers to reward them for generating their own leads and introduce this user pays system for leads the franchisor generates. The reality of this means that if brokers are not settling leads or don t want them then we will stop producing them. If brokers do want them and are making money from them then we think it is fair they pay some of the cost of generating those leads. Q. You have indicated that LM can market to group referred clients should a Broker leave but ultimately the referral was paid for so shouldn't the Broker be entitled to retain ownership of the client because they had to pay for them. A. After the Term ends, both the Broker and Loan Market may maintain contact with, and market to, the Loan Market Customers. Loan Market will not market directly to a Broker Customer during or after the Term without first obtaining the Broker s consent. The Broker may continue to market to, and communicate with, Broker Customers after the Term ends. Q. Will all website generated leads now incur the 30%? Existing brokers included? A. Leads from a Broker s website will not incur the lead generation fee. Leads that Loan Market generates and provides to the brokers and/or their loan writers will have a 30% fee payable on success - i.e. if a loan settlement occurs. April 14 Page 8 of 12

9 Q. I m new to Loan Market, will 30% of my trail go to referral plus 30% upfront? A. Yes, in terms of the lead generation fee...the payment is 30% upfront and 30% trail. Q. Does that mean that 30% for referral fee + 20% to Loan Market = 50% of comms payable? A. If a broker is on tier 1, the broker % for upfront and trail is 80% and the facilitation fee payable to Loan Market is 20%. If the transaction has a lead generation fee, the broker payment of 80% for upfront and trail will have a deduction of 30% applied and the net payment to the broker will be 50% upfront and 50% trail. Q. How will you monitor the quality of the leads vs the conversion rates? A. We are currently reviewing how the lead conversion will be monitored after 1 July The process we will adopt will be outlined and published in the operations manual. Q. What is the 20/20 payment structure? I have spoken to a Ray White office & I was advised that they don't pay referral fees to Loan Market brokers. A. The 20/20 payment structure is the default referral fee that exists when Ray White refers a client to Loan Market. It is 20% of the commission that is generated from the loan - both upfront and trail. This default position can be varied by agreement between the Loan Market and Ray White franchisees. Some Ray White offices pay a referral fee for listings to a broker and some do not. That will be something that can be negotiated between the parties. Q. Do we have to cancel any existing referrer agreements? A. No. All existing referrer agreements will remain in place. Q. Does Loan Market own my customer now? A. No. The clarification of customer ownership is long overdue. Our previous agreements were unclear as to the definition of a customer, whether originated from Ray White, our call centre or self-generated. The new Agreement seeks to clarify customer ownership for the benefit of all 3 parties - Ray White, Loan Market and brokers. The franchise agreement specifically sets out that a broker can communicate and maintain the right to have a commercial relationship with any client they generate. Loan Market also maintains the right to communicate with a Loan Market generated client if the broker leaves. The broker also maintains this right. We will never communicate with a broker client without your consent. Q. For a Loan Writer that starts after 1 July 2014 and pays $900, do they need to pay $1,400 if they move to a Franchise Agreement later on? A. No. For loan writers that move to a Franchise Agreement, Loan Market will only apply 50% of the then current establishment fee (i.e. $1,400 x 50% = $700). Q. What date will the new One System fees apply? A. 1 July 2014 for current brokers or the month after commencement for brokers and loan writers that start after 1 July April 14 Page 9 of 12

10 Q. Could you recap on the fees being packaged. Does the $230 now cover all the monthly fees? A. Yes, the monthly fee will be $230 and replaces all the individual components being charged today. Price Finder and Symmetry Launchpad will remain optional and at your own cost. Q. Does the compliance fee and stay in touch fee disappear if I have my own credit licence? A. No, regardless of whether a franchisee has an ACL or is an ACR we want to make sure that compliance is being managed consistently. We acknowledge that ACLs may have their own audit program in place but the reality is that we do not know what this is or how effective it is. We believe that we owe a duty of care to all franchisees to ensure that this consistent high standard is applied to all members of our Group. Stay in touch is currently optional and is $20 per month. We want to make it mandatory because we have seen the value it generates for brokers Q. Is Loan Market now happy for a franchise owner to pass these additional franchise fees on to our customers as a cost to do business? A. There are no new additional franchise fees that are payable with the exception of lead generation fees for online leads that Loan Market generates. The monthly system fee of $230 replaces current mandatory fees of $190 and a current optional fee of $20. The reason why the monthly fee is set at $230 is because we are aware of price rises from suppliers that will be applicable from 1 July Q. Is the $250 million milestone for the 85% split backdated to commencement of existing brokers, or is it just going forward? A. Yes. The milestones are calculated on all business that you have written with Loan Market. We are in the process of consolidating the figures and our intention is to publish them over the next few weeks. The MRP will apply to historical receipted settlement figures based on performance during the franchisee s entire time with Loan Market. Q. Does the monthly cost include GST? A. No, the fees are shown as exclusive of GST. Q. Why is the One System fee being bundled and charged to my credit/debit card? A. Loan Market received feedback that our One System charge was more conveniently applied as one line item rather than as a list of items. Brokers were also building up fees monthly and were finding when settlements occurred their commissions were impacted. Feedback showed this change was preferred for simplicity for both the broker and Loan Market budgeting purposes. Q. Can I pay my One System fee from my commissions as I do now? A. Fees will be payable by direct debit and the processing of the direct debit will occur at the same time as the trail payment at the end of the month. So effectively, it comes out of trail (like today) or from funds if no trail has been generated. April 14 Page 10 of 12

11 Q. Will Loan Market still cover Credit Ombudsman Service Ltd (COSL) in the One System? A. Yes, Loan Market handles both the administration and cost of COSL membership fees for both Credit Representatives and ACL holders. Q. What fees do I need to pay if I sign the new agreement? A. The establishment fee is only payable for new brokers and loan writers that join after 1 July Loan Market will cover the cost of this for any current brokers as part of the transitional arrangements. The system fee is payable from July for current brokers and from the month after commencement for new brokers. Q. Since we are now all becoming Franchise owners, does this now mean I can advertise and market myself at Loan Market Suburb Name or even regional location like North Brisbane for example? A. This issue was brought up at a number of the roadshows. We currently do not have a provision for having an individual identifier. Sam will review this concept. This review process will take some time and we undertake to update you more in one month. Q. I am worried about the franchise clauses. Wizard, I believe made all franchisees operate from an office. A. We are happy to discuss any particular clause. There is no requirement for you to operate from an office. Our franchise agreement is written to reflect how we operate. We wrote it - we didn't take a competitors franchise agreement and try to modify it. Our document will be very different to other groups because we didn't get a standard document off the shelf. Q. I'm worried about the franchise clauses. Does this mean I need to own an office in the future? A. There is no requirement for a franchise owner to own an office. There is provision in the Franchise Agreement for commercial premises, should a broker decide to establish an office and consent is required from Loan Market before doing this. Q. How does it affect my marketing materials - do I need to disclose anything as a Franchise owner? A. No, there will be no need to change marketing materials. Q. How does this change affect my costs like Insurances for example. Will they go up now because I am a franchise owner? A. We have discussed this issue with a number of Professional Indemnity providers who advised that the change of structure should not impact your PI terms or costs. Q. If you currently operate under a company name, will this change under the new agreement and will business cards etc have to be changed? A. No. Marketing materials do not need to change and each operator (ABN) will continue to operate under the Loan Market brand as they do today. April 14 Page 11 of 12

12 Q. What is "Stay in Touch"? A. Staying in Touch with your customers and prospects is one of the easiest ways to drive new and repeat business. Loan Market offers you an marketing tool called Campaign Breeze that enables you to Stay in Touch with your database. The program includes access to a range of templates that can be personalised to your business including customer and referrer templates. We also offer a bi-annual printed newsletter. Q. Is Stay-in-Touch replacing Campaign Breeze? A. They are the same program. Staying in Touch with your customers and prospects is one of the easiest ways to drive new and repeat business. Loan Market offers you an marketing tool called Campaign Breeze that enables you to Stay in Touch with your database. The program includes access to a range of templates that can be personalised to your business including customer and referrer templates. We also offer a bi-annual printed newsletter. Q. Do you have to be part of the stay in touch programme or is it optional? The monthly fee is $230 and incorporates stay in touch. This program will be mandatory going forward because we have seen the value it generates for brokers. Q. Will you need me to update my signage, cars and marketing and who will pay for that? A. It s normal for a branded franchise to require brand updates from time to time. Loan Market needs its brand to be maintained to a certain standard or be updated. The broker is responsible for this cost when it happens but Loan Market aims to always provide a cost effective solution. This is the case already today and will be going forward. Q. Will my PI and PL increase now that I am a franchise? A. We ve spoken to our group insurance broker (AON) and they ve advised there ll be no material change to the risk and, as such, no change to the policy or premium. Q. Will the Webinar be on LMG Central A. Yes, we plan on providing a link to the webinars on lmgcentral.com.au on a dedicated Franchise page. April 14 Page 12 of 12