What is the purpose of the Collateral Assignment of Client Accounts agreement between Anago Franchising, Inc. and the Subfranchisor?

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• 1. The persons executing this Assignment on behalf of ASSIGNEE acknowledge their authority to do so.
• 1. The obligations of ASSIGNOR and ASSIGNEE under this Assignment are joint and several.

I HAVE READ THE ABOVE ASSIGNMENT AGREEMENT AND UNDERSTAND ITS TERMS. I WOULD NOT SIGN THIS AGREEMENT IF I DID NOT UNDERSTAND AND AGREE TO BE BOUND BY ITS TERMS.

IN WITNESS WHEREOF, the undersigned have affixed their signatures hereto as of the day and date first written above.

EXHIBIT V - COLLATERAL ASSIGNMENT OF CLIENT ACCOUNTS

THISCOLLATERAL ASSIGNMENT OFCLIENT ACCOUNTS this ("Collateral Assignment") is made by and among Anago Franchising, Inc. ("AFI"), and Corp Name ("Subfranchisor").

WHEREAS, Subfranchisor and its Clients are parties to a certain Anago services contract for janitorial and, as applicable, other facilities-related services (the "Client Accounts");

WHEREAS, Subfranchisor and AFI are parties to a Subfranchise Rights Agreement dated, _______________________, (the "Subfranchise Agreement"), whereby Subfranchisor was granted the right to operate an "Anago Subfranchise Business" within a designated area; and

WHEREAS, as a condition to AFI entering into the Subfranchise Agreement, AFI has required that Subfranchisor, and Subfranchisor has agreed to, assign its right, title and interest in the Client Accounts to AFI, with the right to reassign to an authorized Anago subfranchisor, as security for Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement.

NOW THEREFORE, in consideration of the foregoing and the mutual promises contained herein and in the Subfranchise Agreement, and in order to secure Subfranchisor's obligations and AFI's rights under the Subfranchise Agreement, the parties agree as follows:

• 1. Subfranchisor hereby collaterally assigns, transfers and sets over unto AFI, with the right to reassign, all of its right, title and interest in and to the Client Accounts, subject to the terms and conditions of this Collateral Assignment.
• 1. Subfranchisor shall retain all rights under the Client Accounts until declaration by AFI of a default by Subfranchisor under the Subfranchise Agreement.
• 1. Upon the termination or expiration of the Subfranchise Agreement, or upon Subfranchisor's default under the Subfranchise Agreement, AFI may, at its option, assume the Client Accounts.

Source: Item 23 — RECEIPTS (FDD pages 62–298)