Sonitrol

1300 Galaxy Way, #6 Concord, California 94520

[email protected]

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Sonitrol Security, Inc. is the Sub-franchisor of Sonitrol Alarm Products and Security Systems and related products supplied to it by Stanley Convergent Security Solutions, Inc. (surviving entity of Sonitrol Franchise Company, L.L.C.) a Delaware Corporation. Under a distribution agreement dated March 24, 1976 between (the predecessor Sonitrol Corporation) Stanley Convergent Security Solutions, Inc. and Sonitrol Security, Inc., we are authorized to use the trademark 'SONITROL,' to renew franchises in conjunction with Stanley Convergent Security Solutions, Inc., and to sell Sonitrol products to franchisees within certain counties in Northern and Central California and in the state of Hawaii. The Sub-franchisor has the primary responsibility for selling, promoting, leasing and servicing Sonitrol Products bearing the trademark 'SONITROL', within the counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glen, Humboldt, Inyo, Kern, Kings, Lake, Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo and Yuba, California and also the state of Hawaii.

We currently offer three types of franchises: (1) For franchisees who are new to the Sonitrol franchised system and who will sell and service electronic security products, we offer the New Type A franchise (referred to in this disclosure document as a “New Type A Franchise” and, collectively as, “New Type A Franchises”). New Type A franchisees are referred to in this disclosure document as a “New Type A Franchisee” and, collectively as, “New Type A Franchisees”. (2) Solely for franchisees who are existing franchisees as of January 14, 2010 (and who are still franchisees on the date of disclosure) and who are either (a) renewing or replacing an existing Type A Franchise Agreement, or (b) commencing operation of a new Sonitrol franchised business in new territory that is not adjacent to the franchisee's existing territory, we offer the Renewing Type A franchise (referred to in this disclosure document as “Renewing Type A Franchise” and, collectively as, “Renewing Type A Franchises”). Renewing Type A franchisees are referred to in this disclosure document as a “Renewing Type A Franchisee” and, collectively as, “Renewing Type A Franchisees”. In most instances, the rights and obligations of a Renewing Type A Franchisee apply to both (i) an existing franchisee that is renewing or replacing an existing Type A Franchise Agreement and (ii) an existing franchisee that will operate a new Sonitrol franchised business in a new territory that is not contiguous to its existing territory. \^en these rights and obligations differ, we have noted that difference in this disclosure document, and refer the to the latter as a “New Territory Renewing Type A Franchise” and collectively as, “New Territory Renewing Type A Franchises”. New Territory Renewing Type A franchisees are referred to in this disclosure document as a “New Territory Renewing Type A Franchisee” and collectively as, “New Territory Renewing Type A Franchisees”. (3) We may offer existing franchisees the right to commence operation of a Type B franchise (referred to in this disclosure document as a “Type B Franchise” and, collectively as, “Type B Franchises”). Type B franchisees are referred to in this disclosure document as a “Type B Franchisee” and, collectively as, “Type B Franchisees”). We do not offer the Type B Franchise to a franchisee who is a new Sonitrol franchisee. We have agreements with four distributors which operate as “subfranchisors” within the territories described in those agreements in that the agreements provide the distributors with the rights to offer Sonitrol sub-franchises and to enter into a franchise agreement with the franchisee and us. These agreements with distributors also impose obligations upon the distributors to provide assistance to the franchisee after the sale of the franchise. If you are interested in being considered for the grant of a Sonitrol franchise to be located in northern California, Hawaii, portions of Louisiana, Idaho, Montana, Nevada, Utah and Wyoming, or Canada, you should contact us as indicated in Item 23 of this disclosure document so that we can assist you in obtaining the proper disclosure document from the appropriate distributor. (See Item 20 for further disclosures regarding this subject.) We have offered franchises for sale similar to the New Type A Franchise since August 1965. The Type A Franchise Agreement for new Type A franchisees (the “New Type A Franchise Agreement”) is attached as Exhibit B to this disclosure document, the Type A Franchise Agreement for renewing Type A franchisees or existing Renewing Type A franchises commencing operation of a new Sonitrol franchised business (the “Renewing Type A Franchise Agreemenf') is attached as Exhibit C to this disclosure document, and the Type B Franchise Agreement for existing franchisees (the “Type B Franchise Agreement”) is attached as Exhibit E to this disclosure document.

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