Which section of the 1 800 Packouts Franchise Agreement addresses non-competition covenants?

Notes:

• 1. This table estimates the initial investment for start-up Franchised Businesses only. All fees and payments are non-refundable unless otherwise stated in this Disclosure Document or unless otherwise arranged between you and any third parties. We do not provide financing to franchisees either directly or indirectly in connection with their initial investment requirements. The availability and terms of financing obtained from third parties will depend upon such factors as the availability of financing, your credit worthiness, collateral which you may make available, or policies of local lending institutions with respect to the nature of the business.
• 1. Your QSP will include initial equipment to outfit your cleaning room, initial supplies for your operations, a starting supply of consumables (such as tags, gloves, tape, shoe covers, etc.), inventory for 1- 800-Packouts branded boxes for your first jobs, and certain marketing and storage items. If you are opening a single-unit franchise, your QSP Fee will be $53,500, plus applicable tax and/or tariffs, but which includes freight delivery to your location.
• 1. We expect that you will either purchase or lease the real estate for the Facility. This estimate assumes that you will be renting a 5,000 – 20,000 square foot Facility and the approximate cost at $10/sq ft for the security deposit, utilities deposit, and initial months of rent. We expect most Facilities will be approximately this size, but we may approve smaller Facilities in our sole discretion. Your rent may differ based on market factors in your area. We do not lease or sell space to you. The estimates in this table include your pre-operations rent expenses together with estimates for rent during your initial period of operations.
• 1. This estimate includes a snapshot of the cost of constructing or remodeling a Facility to meet our specifications and trade dress, including the cost of fixtures, interior and exterior painting, and landscaping. Your Facility must include permanent climate-controlled storage rooms, cleaning room(s), and an office. You must purchase certain items of fixtures, which must comply with our specifications in the Manuals. Actual costs depend on location, the condition of the premises being remodeled, economic factors, and the Facility's size, with the premises potentially requiring retrofitting to conform to the specific needs of our system. At a minimum, you will need to have electrical and plumbing installation performed for your Cleaning Station.
• 1. You must purchase equipment to clean and restore customer's personal property. The equipment must meet our specifications, as discussed in greater detail in our Manuals, and must be purchased from an approved supplier. The cost of the equipment will vary based on the size of your Facility and the models of equipment that you elect to purchase, and because your existing equipment may conform with our requirements, but if you require newly purchased equipment, the cost may be significantly more than if your prior equipment is adequate. Such equipment may include pallet jacks, forklifts, or other items to use alongside your QSP.
• 1. This estimate is for the cost of obtaining signage for your Facility that meets our specifications.
• 1. This estimate includes the cost of the management system, computer hardware, mobile devices, applications, GPS tracking devices, and software (the "Management Systems"), furniture, and other office equipment necessary to operate the Franchised Business. The Management Systems include the cost of at least one iPad, computer, and printer/copier. More hardware may be necessary based on the size of your Franchised Business. The cost of furniture will vary based on the size of your building and the quality of furniture that you select.
• 1. We require you to lease or purchase at least one 16-foot box truck and/or one 24-foot box truck. If you already own trucks that meet our specifications, you may modify and rebrand them and then use them in the Franchised Business, provided that they are dedicated for use in the Franchised Business. The vehicles must be painted in accordance with our specifications. This estimate assumes that you will lease the vehicle(s) and includes the down payment, three months of leasing expenses, and the cost of painting the vehicle to include our signage and the amounts and range of our estimate varies primarily because your current vehicle may meet our requirements and if so, you will not be required to acquire a new vehicle, but if not, you may have initial costs in the form of up-front payments to acquire such a conforming vehicle, up to the full purchase price if you choose not to finance such purchase with the vendor.
• 1. The range given provides our best estimate of the costs you will incur for business permits and licenses.
• 1. The costs of these professional fees will vary depending on your location and the professionals that you select.
• 1. You must purchase an initial inventory of cleaning supplies, boxes, packing materials, and uniforms that meet our specifications. The size of your initial inventory will vary based on the size of your Territory and Facility.
• 1. You must carry insurance. The amount set forth above represents an estimate of the premiums required for general liability, workers' compensation, public liability and property damage, professional liability, bailee's coverage, business interruption coverages during the Franchised Business' first year of operation. We may periodically increase or decrease the amounts of coverage required under the insurance policies and require different or additional kinds of insurance at any time. You should consult with your insurance agent or broker before purchasing a franchise.
• 1. We do not charge a fee for our training program for up to four trainees, although you must pay the travel and living expenses for your trainees during training. The amounts set forth above assumes up to 5 days of training for up to 4 trainees.
• 1. You are required to do local marketing. Your marketing efforts will need to be tailored to your community and competitive situation. The cost of your marketing will vary based on local market conditions. You are required to have a designated Marketing Representative.
• 1. This is an estimate of the amount of additional operating capital that you may need during the first five months after opening your business, representing the first five months in which you are open for business. This estimate includes additional funds you may need to pay employee salaries and wages, utilities, payroll taxes (including payroll to cover the pre-opening training period for your staff), Royalty Fees and Marketing Fees, Population Fees, legal and accounting fees, additional advertising, health and workers' compensation insurance, bank charges, miscellaneous supplies and equipment, staff recruiting expenses, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items. The

preceding list is by no means intended to be exhaustive of the extent of possible categories of expenses. This is only an estimate, however, and there is no assurance that additional working capital will not be necessary during this start-up phase or after. It is best to contact your accountant or financial advisor for further guidance.

1. We relied on the experience of our affiliate in operating an Affiliate-Owned Business to compile these estimates. Your costs may vary based on a number of factors discussed above.

We contemplate that certain of our franchisees will be existing owners of packout and/or restoration businesses who convert their businesses to a Franchised Business. If you are a franchisee who converts an existing business to a Franchised Business, your estimated initial investment may vary from the estimated initial investment listed above.

ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Authorized Products, Services, and Suppliers. We have the right to require that furniture, fixtures, signs, and equipment (the "Operating Assets") and products, supplies, software and other services that you purchase for resale or purchase or lease for use in your Franchised Business: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from us or our affiliates or suppliers or service providers that we have expressly approved; and/or (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates).

You must offer all services and products we prescribe for a Franchised Business and must not offer or sell any services or products other than services and products that we have approved in writing. We may change these specifications periodically, and we may designate specific products or services as optional or mandatory. You must offer all products or services that we designate as mandatory. You may sell products only in the varieties, forms, and packages that we have approved. You must maintain a sufficient supply of required products to meet the inventory standards we prescribe in the Manuals (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).

Relationship With Suppliers. Our affiliate, ProNexis, provides call center, call tracking, and online marketing services and support and is an approved supplier of such services and of telephone numbers to our franchisees. Except as disclosed, neither we nor our affiliates currently are approved suppliers or the only approved suppliers of any products or services to franchisees, though we reserve the right to require you to purchase items from us or our affiliates in the future. None of our officers owns any interest in any supplier with whom you are currently required or recommended to do business.

You may be required to obtain certain services, including call center, call tracking, telephone number, and a number of software services set forth in the Operations Manual or in similar shared documents, drives, folders, intranet resources, etc., some from our Affiliate(s) and others from third parties, and for some of whom we will collect the funds. When such a service is set forth in the Operations Manual as a mandatory service, you must obtain it from an approved or designated vendor outlined in such manual. During fiscal year 2024, we received $77,430.36 from our franchisees' required purchases, representing 1.78% of our total revenue during that period. Our affiliate, ProNexis, received $65,357.06 in revenues during fiscal year 2024 from our franchisees for required purchases.

Prototype and Construction Plans and Specifications. We will review and approve plans and specifications to confirm they meet our requirements for design, decoration, furnishings, furniture, layout, equipment, fixtures and signs for a Facility. It will be your responsibility to ensure that the plans and specifications comply with all ordinances, building codes, permit requirements, and lease requirements and restrictions applicable to the site for the Facility. You must submit final construction plans and specifications to us for approval before construction begins at the Facility, and the Franchised Business must be constructed in accordance with those approved plans. There is no time limit for the completion of our review, but we anticipate completing our review within 10 days of your submission. By approving your plans we in no way represent or warrant the Facility will be structurally sound or fit for any intended purpose or that the plans will comply with applicable laws or regulations or lease requirements. We will not be liable to you for any defects in workmanship or structural integrity of a Facility that is constructed in accordance with plans that we approve.

Management Systems. You must use in the development and operation of the Franchised Business the Management System that we specify from time to time. As part of the Management Systems, we may require you to obtain specified computer hardware, mobile devices, and/or applications or software,

including, without limitation, a license to use proprietary software developed by us or others. We may also require that all or parts of the Management Systems be purchased or contracted through us or our designee. The Management Systems we require provide a business advantage over other systems and allow us to ensure uniformity across the franchise system. In addition, some third party administrators (TPAs) will require use of certain software, if this occurs we reserve the right to require you to use the software the TPA is requiring.

Insurance. You must obtain and maintain in force insurance coverage necessary to comply with all laws and as is customary for similar businesses in the state or jurisdiction in which the Franchised Business operates or as we may reasonably prescribe from time to time. We currently require you to maintain the following insurance coverage: (i) commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit, (ii) contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit (aggregate may be shared with CGL policy)), (iii) property insurance (100% of replacement value of Facility and contents), (iv) bailee legal liability coverage ($1 million limit), (v) vehicle liability insurance ($1 million coverage, including hired and non-company owned auto coverage), (vi) workers' compensation coverage, (vii) cyber liability coverage ($1 million limit), (viii) employment practices liability coverage ($1 million limit), and (ix) excess liability coverage (over and above CGL, vehicle liability and employer liability) of $1 million. The insurance coverage must be maintained under one or more policies of insurance of the types and containing such terms and conditions and minimum liability protection in such amounts, as we specify and as are issued by insurance carriers rated not less than "A-" by A.M. Best Company.

You must maintain these policies during the entire term of your Franchise Agreement. We may increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. All insurance policies must name us (and our officers, directors and employees) as additional insureds, contain a waiver by the insurance carrier of all subrogation rights against us, and must provide that we will receive 30 days advance written notice of any material modification, cancellation, or termination or expiration of the policy. You must provide us with a copy of the certificate of or other evidence of the procurement, renewal or extension of each insurance policy within 30 days after signing the Franchise Agreement and each year thereafter.

Approval Process. If you propose to purchase any brand, type, and/or model of products, supplies, services, and Operating Assets which is not then approved by us, you will first notify us and will submit to us, on our request, sufficient written specifications, photographs, drawings, samples, and/or other information for a determination by us of whether the brand, type, and/or model of products, supplies, services, and Operating Assets complies with our specifications and standards, which determination will be made and communicated to you within a reasonable time (typically, within 30 days). We do not make our criteria for approving suppliers available to franchisees, but generally we will evaluate the quality and appearance of proposed products and the reputation, quality controls, and distribution capabilities of a proposed supplier. We may approve or disapprove a supplier or item in our sole discretion. We may charge the supplier a reasonable testing fee and will decide within a reasonable time after receiving the required information whether you may purchase items from such supplier. Currently, we intend to charge our actual cost of testing the proposed product or evaluating the proposed service, including personnel and travel costs, and intend to communicate our decision to you within 30 days after receiving all of the information that we request. If we do not provide a notice of approval within thirty (30) days the supplier or item is disapproved. Upon our approval of your proposed item and/or supplier, we will permit you to contract with the alternative supplier. We may revoke approval of a supplier or a particular item at any time in our sole discretion by notifying you and/or the supplier.

Issuance of Specifications and Standards. We may, at any time, in our discretion, change, delete, or add to any of our specifications or quality standards. Such modifications, however, will generally be uniform for all franchisees. We will notify you of any changes to our Manuals, specifications, or standards in writing, which we may transmit to you electronically.

Proportion of Purchases Subject to Specifications. We estimate that the cost to purchase and lease all equipment, inventory and other items and services that we require you to obtain from us or our affiliates, from designated suppliers, or in accordance with our specifications ranges from 90% to 100% of the total cost to purchase and lease equipment, inventory, and other items necessary to establish a Franchised Business and 90% to 100% of the total cost to purchase and lease equipment, inventory, and other items to operate a Franchised Business.

Revenue from Purchases. We or our affiliates may receive revenues or profits or other material consideration from the purchases you make from us, our affiliates, or from other approved suppliers. We intend to earn revenue from your purchase of certain items that we may specify from time to time. We may retain any rebates or other payments we receive from suppliers. Our affiliate, ProNexis, received $47,500 from franchisee purchases during fiscal year 2022.

During our last fiscal year, we did not receive any revenue from the required purchase of products and services by our franchisees. We have not yet established any arrangements with suppliers which would require the supplier to make payments to us based on our purchases, but we reserve the right to do so.

Cooperatives and Purchase Arrangements. We are not involved in any purchasing or distribution cooperatives. We may, but are not obligated to, negotiate purchase arrangements with suppliers for the benefit of franchisees. As of the issuance date of this Disclosure Document, we have negotiated purchase arrangements with suppliers for the benefit of our franchisees for certain packing supplies and vehicles.

Material Benefits. We do not provide any material benefits to franchisees (for example, renewal or granting additional franchises) based upon their purchase of particular products or services or use of particular suppliers.

ITEM 9 FRANCHISEE'S OBLIGATIONS

This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.

| Obligation | Section in Franchise | Item in Disclosure

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 30)