What is the connection between the Bumble Roofing franchisee's obligations in Item 9 and the initial franchise fee in Item 5?

[Item 5: INITIAL FEES]

*Discounted franchise fee is only applicable when territories are purchased at the same time

In the event that you purchase multiple contiguous Territories at the same time, and you are in the process of obtaining funding from a financial institution for the purpose of paying the Total Initial Franchise Fees, then we may, in our discretion, permit you to pay the Total Initial Franchise Fees in installments and upon signing of the Franchise Agreements as follows: (a) payment of the full Initial Franchise Fee for Territory 1 plus a minimum of $5,000 for each additional Territory due at the time you sign the Franchise Agreements, and (b) the remainder to be paid for the additional Territories in full upon the earlier of (i) 90 days from the execution of the Franchise Agreements or (ii) the date you receive the funding. The initial payment is non-refundable. If you fail to pay the remaining balance of the Total Initial Franchise Fees, then we have the right to terminate your Franchise Agreements.

Existing Franchisee: Additional Territory Discount. If you are an existing BUMBLE ROOFING® franchisee that: (a) has been a BUMBLE ROOFING® franchisee for at least 18 months, (b) has been in full compliance with your Franchise Agreement (c) meets our qualifications for new BUMBLE ROOFING® franchisees, (d) is purchasing an additional contiguous Territory from us (for which you are signing a separate franchise agreement), and (e) the purchase is not facilitated through a third-party broker, then we will discount the then-current franchise fee by 20%. This discount, if applicable will be limited to one BUMBLE ROOFING® territory.

Existing Franchisee: Additional Concept Discount. As an existing member franchisee of an Empower Brands affiliate, as outlined in Item 1, you may be eligible to purchase a franchise from another affiliated brand at a discount as long as your existing Empower Brands franchise: (a) has been in full compliance under your franchise agreement for at least 2 consecutive years, (b) you meet the then-current qualifications for the affiliated Empower Brand, and (c) the new affiliated brand purchase is not facilitated through a third party broker. The discount offered will be 20% of the then current franchisee fee of the affiliated brand. That discount, if applicable, is limited to one affiliated brand territory.

[Item 5: INITIAL FEES]

ITEM 5 INITIAL FEES

Franchise Agreement

Initial Franchise Fee. You must pay us an Initial Franchise Fee equal to $49,500, provided that your Territory is less than 100,000 single-family households ("Household Limit"). The Initial Franchise Fee is payable in full when you sign a Franchise Agreement, and except as described below, is not

refundable. Other than the Initial Franchise Fee, there are no other initial fees charged to you. If your Territory is larger than the Household Limit, we reserve the right to charge you an increased Initial Franchise Fee, which will be determined on a case-by-case basis.

[Item 22: CONTRACTS]

• (a) Franchisee has not failed to remedy any breach of this Agreement specified by Franchisor in a written notice to Franchisee as per Sections 17.1 or 17.2;

• (b) Franchisee has not committed and received notice of two or more breaches of this Agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied;

• (c) Franchisee has given Franchisor a written notice of intent to extend its rights to operate the Roofing Business no less than two months or more than six months prior to expiration of the Initial Term;

• (d) Franchisee is current in its payment obligations to Franchisor, Franchisor's Affiliates, and Franchisee's trade creditors;

• (e) Franchisee has met Franchisor's then-current qualifications for new or renewing BUMBLE ROOFING® franchisees;

• (f) Franchisee executes a successor franchise agreement ("Successor Franchise Agreement") and all other agreements in the form then being used by Franchisor in granting new franchises, which may contain materially different terms and conditions than this Agreement, provided that Franchisee will pay Franchisor the Successor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above.

• (g) Franchisee pays Franchisor the successor franchise fee equal to the greater of $5,000 or 25% of the then existing Initial Franchise Fee as described in the Franchisors then existing Franchise Agreement ("Successor Franchise Fee"), which is due and payable to Franchisor at the time of signing the Successor Franchise Agreement;