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EXHIBIT A DEWEY PEST CONTROL AGREEMENT Calculation of Extension Period Compensation Second Extension Period (March 1, 2004 through Feburary 28, 2005) Contract Period San Francisco-Oakland-San Jose Beginning End CPI-U (All Urban Consumers) Index Current Ending Last Ending Year Year Third Extension Period 03/01/05 02/28/06 198.8 1 Fourth Extension Period 03/01 /06 02/28/07 202.7 2 Fifth Extension Period-FINAL 3/1/2007 2/28/2008 202.7 209.2 3 Annual compensation (Jan 1, 2006 thru Dec 31, 2006 ) based on invoices submitted $61,942.20 Note: Cordilleras Creek is included every other year, cost is shared with City of San Carlos (Even Yrs RWC) FORMULA PER CONTRACT TERMS: 4 A. 4th Ext Index: Period 1 /1 /2005 to 12/31 /2005 (CPI-U) 202.7 5 B. Extension Period Index: 1 /1 /2006 thru 12/31 /2006 (CPI-U) 209.2 Resulting factor (5th Ext Period Index divided by Proceeding Yr 6 Index Equals 1.03 escalation rate 7 Resulting Factor multiplied by the annual $61,942.20 $ Compensation for Extension Period (#3 above) is March 1, 2007 through February 28, 2008 $63,928.51 Rounded Up $ 63,929 Add 5%Contingenc $ 3,196 CONTRACT VALUE FOR March 1,2004 through February 28, 2005, Not to Exceed $ 67,125 CONTRACT LANGUAGE DEFINING COMPENSATION CALCULATION METHOD The compensation for each Extension Period shall be subject to annual adjustment commencing with the first Extension Period, as set forth below. (a) The San Francisco-Oakland-San Jose Consumer Price Index, All Items, 1982-84=100 for All Urban Consumers (CPI-U) published by the U.S. Department of Labor, Bureau of Labor Statistics (the "Index") shall be used for the purpose of calculating annual compensation increases. (b) The "Beginning Index" shall be the index published immediately prior to the commencement of the expiring Period and, as to the First Extension Period, the expiration of the Initial Period. The "Extension Index" shall be the index published immediately prior to the commencement of each subsequent Extension Period. To calculate the annual compensation for each period, the Extension Index shall be divided by the Beginning Index, and the resulting factor shall be multiplied by the annual compensation of the expiring period, and, as to the First Extension Period, the expiration of the Initial Period. Footnotes: a) Annual compensation is based on invoices and covers the value of work completed from January 1, 2005 through December 31, 2005 b) The CPI-U Indexes were obtained from the U.S. Department of Labor, Bureau of Labor Statistics website at http://www.bls.gov/cpi/ using the MSA designation (San Francisco) and formatting per instructions at the site as follows: CPI-U (Unadjusted for seasonality) for years 2001, 2002, 2003 URL identification is http•//data bls $ov/servlet/Survev0utput5ervlet~data tool=dropmapl3series id=CUURA422SA0 CUUSA422SA0 prepared by M Harang 01/30/04