Is there a fee associated with getting advertising approved by Big O Tires?

We will not charge a fee for the following assistance:

• 1. If available to us, we will provide you a source from which you may purchase Big O private brand tires. Franchise Agreement Section 7.02(a)(i). We acknowledge our obligation to have products available to our franchisees that enhance and support the Big O System, and further acknowledge our obligation to use reasonable commercial efforts to maintain a competitive source of supply for the benefit of our franchisees and to aid in the promotion of Big O products and services (Franchise Agreement Section 31(a)). Service levels in delivering Big O Program Products (such as frequency of delivery) to you may, in our discretion, periodically be reduced based on changes in fuel costs or low order volume on particular delivery routes (Franchise Agreement, Schedule 10). We have a "fill rate" policy under which we will rebate to a qualified franchisee a portion of such franchisee's royalty payments if we fail to meet certain "fill rate" standards in our supply of products to Business Format Franchisees. This is described in Item 6, Note 2, paragraph (b).
• 1. In our discretion, we will make available to the Franchise Advisory Council ongoing marketing research into new tire selections and other lines of products and services and ways to enhance the competitiveness of your Big O Store (Franchise Agreement Section 7.02(a)(ii)).
• 1. We will provide you recommended prices for Big O brand tires and other brands of tires exclusive to Big O; provided that you will not be required to sell at any particular price if such a requirement would be unlawful (Franchise Agreement Section 7.02(a)(iii)). Also, see paragraph 10.a of the following section.
• 1. We periodically will make available programs offered to Franchisees by parts vendors approved by us. Currently, these vendors are NAPA, O'Reilly's, Advance Auto (CARQUEST, WorldPAC and AWI), AutoZone, The Group (Federated, Pronto, Auto Plus), and AAPA (Auto Value, Bumper to Bumper, Alliance Parts Warehouse). These programs may include such features as national account pricing, rebates paid directly to Franchisees, and prompt payment discounts (among others features). The basic vendor programs may be enhanced for BFF Franchisees. Some of these enhancements may include higher rebates, inventory management programs, training, and promotions. The mix of the vendors, amount of the rebates (if any) and other details of the programs may periodically change. We may modify or discontinue any of these programs in our discretion.

1. We will provide you with access to and use of one or more e-mail accounts for you and your Big O Store, subject to the terms below in this Item 11 and unless discontinued by us. Franchise Agreement Section 7.02(c).

We may charge a fee for the following assistance:

• 1. We will make available to you additional training for your "Operator" or your other personnel. We use the term "Operator" to mean the person designated by you to assume the responsibility for the operation of your Big O Store (Franchise Agreement Section 7.02(b)(i)).
• 1. We will provide you a warranty or replacement program for Big O private brand tires and other related automotive products and services, which we may revoke or modify at our sole discretion. This represents our current policy, which we may change in our discretion. However, the Franchise Agreement does contemplate warranties sponsored by Big O and you must honor them (Franchise Agreement Sections 14.01 and 14.04). We will absorb the franchisee's costs for (i) claims related to replacement due to road hazard and/or workmanship and materials as contemplated in the terms of the applicable Big O Program Products warranty for Big O I Tires (tires that carry the "Big O" label on the sidewall) in accordance with the terms and procedures prescribed in the Manual; and (ii) claims related to the prorated manufacturer's workmanship and material warranty for "Big O II Tires" (those that are (i) Big O exclusive tires that do not carry the "Big O" label on the sidewall, , and (ii) any other tires designated as exclusive to the Big O product screen) and any other tires that are Big O Program Products in accordance with the terms and procedures described in the Manual. (However, the warranty costs absorbed by us will be included in our costs in determining the prices at which we sell Big O Program Products to you). You must cover all other warranties (Franchise Agreement Section 14.04(b)).
• 1. We will provide you regional training and field assistance, inspections and merchandising advice pertaining to your Store (Franchise Agreement Section 7.02(b)(ii)).
• 1. We or a licensee designated by us will make available to you point of sale advertising materials and wearables utilizing the Big O marks and local advertising plans and materials, special promotions and similar advertising (Franchise Agreement Section 7.02(b)(iii)).
• 1. For each national promotion, we will make available to you or your Local Group electronic copies, or, where we deem appropriate, hard copies, of radio and television commercials (Franchise Agreement Section 7.02(b)(iv)).
• 1. In our sole discretion, we may provide other assistance occasionally under terms and conditions and for fees and charges as periodically established by Big O in its sole discretion (Franchise Agreement Section 7.02(e)). This may include, for instance, real estate consulting and other matters. See Item 6 in regard to fees.
• 1. Big O has established and may suspend and/or reestablish national fleet account and Key Account Customer programs and policies, which it may revise periodically in its sole discretion. The national fleet account programs and policies and Key Account Customer programs and policies may include: (a) Big O (or its designated provider) making arrangements with larger customers with multiple locations and/or multiple vehicle users ("National Account Customers") or large commercial or governmental customers of Franchisee that Big O has approved or designated as "Key Account Customers" for whom a 2% royalty rate will apply in accordance with criteria periodically established by Big O in its Manual to have Big O franchisees provide automotive products and services; (b) permitting the National Account Customers and Key Account Customers to purchase the specified products and services from you and the other franchisees at prices not more than those negotiated by Big O and the

National Account Customer or Key Account Customer;

Source: Item 18 — PUBLIC FIGURES (FDD page 85)