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Business Description

CGAST to coast engineering services INC. (the "Fr^chisor") is a Maine corporation doing business under the name "CRTTERIUM ENGINEERS." Its principal business ad press is 5 Depot Street, Suite 23, Freeport, ME 04032; Telephone numbers: 1-800-242-1969; (207) 828-1969; website: www.eriterium-engineers.eOm

Prior Experience

CRTTERIUM ENGINEERS does not have a parent; company. CRITERIIJM ENGINEERS ' agent fpr service of process is disclosed in Exhibit F,

Business Offered

CRTTERIUM ENGINEERS has deyelQped and acquired techniques, systems, procedures and know-how in the consulting engineering business, specializing in buildings^ These services include providing reports, inspections, consultations, investigations and litigation support services on the structural and mechanical aspects, design, rnaintenance and construction of residential, conimercial and.light industrial buildings ("Consulting Engineering Services"). Under the: Franchise Agreement, CRITERIUM ENGINEERS will authorize: you to use the techiuques;, systems, procedures, know-how, and other features of the CRITERIUM® System and to operate a business specializing in the Consulting Engineeriiig Services operating under the Marl^.

Initial Fees

The initial franchise fee is based primarily on the population of the Territory granted. The formula will vary according to the density of the population related to the total area, or for other deiriographic considerations^ The initial franchise fee ranges! from a minimum of $49,500 to $79,560, but may be more: depending on the population in your Territpry: The fee includes all items hsted in Exhibit H of the Franchise Agreement, including fravel expenses for the initial training ^d a supply of stationery, brochures, and> other printed items, the fee is used to develpp andmaintain the techniques, systems, prpcedures and know hpw in the consulting engineering business which are unique to CRTTERIUM ENGINEERS and tO:rnaiiitain the CRITEEIItJM® trademark.

Financing

Payment of the deferred portion of the initial franchise fee is due in equal monthly installmenfs of principal and interest, with the first installment one month from the date of the note. If the. Franchi see is a corporation, each officer and shareholder of the Franchisee must execute a personal guaranty of the note, agreeing to be personally jointly and Severally liable for its repayment. The form of personal guaranty is attached to the Franchise Agreement as Exhibit "B."

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franehisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if; (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.