What is the estimated range for licenses and permits for a standard Clear Pest Pros franchise?

Notes:

The preceding table describes other recurring or isolated fees or payments that you must pay to us or our affiliates, or which we or our affiliates may impose or collect on behalf of a third party, in whole or in part.

1. All fees, unless otherwise specified, are uniformly imposed and collected by and payable to us. All fees are non-refundable and deemed fully earned upon payment. For fees that are calculated as a percentage of Gross Sales, "Gross Sales" means the total dollar amount of all sales generated through Clear Pest Pros Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit, in services in kind, from barter and/or exchange, payment for any services or products sold by you, or otherwise, less any sales tax or bona fide refunds to customers for non-salvageable item. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales tax collected by Franchisee, (iii) sales of used equipment

not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales). Commissions paid to lead sources are subject to the Royalty. If you transfer the Franchise Agreement to a new owner, the Royalty for all jobs completed prior to the transfer must be paid on the day of closing, regardless of whether the invoice(s) is paid in full. On the effective date of termination of the Franchise Agreement, either by you or us, you must pay us the Royalty for all jobs completed prior to termination. We will draft the Royalty from your bank account on the 10th day of each month for the preceding month. You must pay the Royalty by electronic funds transfer or by such other means as we may specify. We may periodically specify other dates for payment of the Royalty.

• 1. Before opening your Clear Pest Pros Business, you must sign and deliver to us the prescribed form of authorization to debit the Clear Pest Pros Business's checking account automatically for all fees due to us which is attached to the Franchise Agreement as Exhibit D.
• 1. As a franchisee, if you fail to achieve the minimum level of monthly Gross Sales for a period of three or more consecutive months, we may collect a Royalty equal to what you would have been assessed had you achieved the minimum level of Gross Sales, in addition to other remedies. There is no minimum level of Gross Sales required for the first 12 months. For months 13 to 24, the minimum level of monthly Gross Sales is $5,000 per month. For months 25 to 36, the minimum level of monthly Gross Sales is $7,500 per month. For months 37- 48, the minimum level of monthly Gross Sales is $10,000 per month. For months greater than 48, the minimum level of monthly Gross Sales is $15,000 per month. Enforcement of monthly gross sales minimums is waived during calendar quarters 1 (Jan-Mar) and 4 (Oct-Dec), provided the annual minimum is met. Any additional minimum amounts due will be settled by March 31 of the subsequent calendar year, at our discretion.
• 1. Gross sales minimums included herein are reflected on a per territory basis.
• 1. For purposes of paying the Royalty, monthly reports are due by the 5th day of each month and payment is due on the 10th.
• 1. Royalties are payment for the use of the Marks, System, Territory, and Manuals.
• 1. We have established a Brand Marketing Fund for the common benefit of System franchisees. You must contribute two percent (2%) of your Gross Sales monthly to the Brand Marketing Fund (the "Brand Marketing Fee") in the manner we prescribe. We may also create regional or local advertising cooperatives, which you may be required to participate in, if developed. If developed in your area, you may be required to contribute up to two percent (2%) of Gross Sales to such cooperative. Company-owned locations may participate in such cooperatives, in our sole discretion, but shall not have controlling voting power.
• 1. We may provide services to national and/or regional accounts that require centralized overview and support, and for purposes of responding to requests and referrals for Services through our franchise system, managing those relationships, answering calls placed to our toll-free number or a national account on-line access system. In that case, we may charge you a National or Regional Accounts Fee ("NORA Fee") of up to five

• percent (5%) of Gross Sales generated by the account. The purpose of this fee is to defray the cost of providing national/regional account management services to the franchise system. We do not plan to charge a fee for simple referrals where we do not directly manage the relationship with the customer, but we reserve the right to do so.

• 1. In addition to other remedies for your defaults, we have the option to charge you the Non-Compliance Fee. If you advertise, market, solicit, or service in any way, any customers or customer service locations outside your Territory, without our prior written consent ("Out-of-Territory Conduct"), you must pay us a fee equal to the greater of $500 or the cost of job for each incident of unauthorized advertising, or up to $5,000 per instance for other non-compliant acts or omission. This fee is in addition to, and not in lieu of, any other rights we have under the Franchise Agreement.
• 1. If you are in breach or default of any monetary or non-monetary material obligation under the Franchise Agreement or any related agreement between you and us or our affiliates, and we engage an attorney to enforce our rights (whether or not formal judicial proceedings are initiated), you must pay all reasonable attorneys' fees, court costs and litigation expenses we incur. If you institute any legal action to interpret or enforce the terms of the Franchise Agreement, and your claim in such action is denied or the action is dismissed, we are entitled to recover our reasonable attorneys' fees, and all other reasonable costs and expenses incurred in defending against same, and to have such an amount awarded as part of the judgment in the proceeding.

ITEM 7: ESTIMATED INITIAL INVESTMENT

YOUR ESTIMATED INITIAL INVESTMENT

A. Standard Franchise

| Type of Expenditure |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 28–32)