How is 'Your Territory' for a 1 800 Packouts franchise described in the Franchise Agreement?

d Business. We will not provide any hiring assistance, advice or guidance.**

ITEM 12 TERRITORY

You will be granted a territory ("Your Territory"). Your Territory will not be exclusive. You may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands that we control. Your Territory will be described in an exhibit to the Franchise Agreement and will be determined in our sole discretion based upon population density, demographics and other Franchised Business operations in the market. Territories may range from 1 to 1,000,000 people. Your Territory may not exceed a population of 1,000,000 people, in the event the population exceeds 1,250,000 people you will be required to purchase an additional franchise.

You receive certain marketing protection afforded you under the Agreement, and in consideration of your participation in our national/regional programs. Such are collectively referred to as our National/Regional Opportunity Protection program or "NROP." As we enroll insurance companies, third-party administrators, or other similar organizations in this NROP program for the benefit of the System, our objective is to benefit our franchisees; however, we cannot assure that any enrollees in our NROP program will provide you such benefits in your Territory. Your NROP Fee is owed regardless if whether you enroll in all, some, or none of the NROP programs.

Protected Advertising. No other 1-800-Packouts business may advertise in Franchisee's Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within such Territory. It is acknowledged that Franchisee may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising—none of which shall comprise a breach of this provision.

Protected TPA and Regional/National Referrals. Franchisee will receive TPA and Regional/National referrals for your assigned zip codes in accordance with program requirements. The Franchisor cannot guarantee the Franchisee's participation in these programs, nor can we guarantee any number of jobs from these programs. If you are not compliant with your Franchise Agreement, program requirements (as established by such TPAs, or Regional/National account parties), or fail to perform program work adequately, the Franchisor may direct TPA or Regional/National referrals to another franchisee or itself.

Protected Call Center Referrals. You will receive Call Center leads received by the Franchisor for your assigned zip codes. If you are not compliant with your Franchise Agreement, the Franchisor may direct these leads to another franchisee or to itself.

Protected Office Location. No other 1-800-Packouts Business may establish an office location within Franchisee's Territory. The Franchisee may not advertise or establish an office outside the Territory without Franchisor's prior written consent. Within the Territory, the Franchisee have the right to advertise, market, solicit and service any customer desiring inventorying, packing, moving, cleaning, deodorizing and storage services except as described in this section.

Clarifying Terms (Pre-Existing Exceptions). Notwithstanding the generality of the foregoing, the Franchisor shall take reasonably available measures, including enforcement of rights under other franchise agreements, to assure that no other franchisee of Franchisor conducts advertising, marketing, and related digital campaigns or activities within the Territory under any agreement entered into from and after the date of this Addendum. The Franchisor further agrees that for so long as Franchisee remains in good standing under the Franchise Agreement and is not in default, Franchisor will not open a company-owned location in the Territory. The Franchisor shall not be in violation of this paragraph 4 in the event that rights or licenses in existence prior to the date of this Addendum exist permitting a franchisee of Franchisor to

conduct activities that Franchisor would otherwise have obligations to curtail pursuant to paragraph 4, save that Franchisor agrees not to renew such rights or licenses at the time that they expire by their terms or are otherwise terminated.

Rights Within Your Territory. You have a right to operate a Facility in Your Territory. Your Facility will be in a location to be approved by us, unless it has already been identified and pre-approved in your agreement. You have a non-exclusive right to market to, and provide services to, any customers located in Your Territory. Your territorial protections are described above, in connection with the NROP program. Provided you are in compliance with the Franchise Agreement and any other agreements with us, (i) we or our affiliates will not establish or authorize any person or Entity other than you to establish a Franchised Business or Facility in Your Territory during the term of the Franchise Agreement and (ii) if we or our affiliates receive any leads related to jobs in Your Territory, we will promptly provide you with the relevant information.

Operations Outside of Your Territory. In certain circumstances, you may conduct certain activities outside of Your Territory, provided that (i) you are in full compliance with this Agreement and any other agreement between you and us or our affiliates and (ii) you adhere to our conditions and policies in connection with such activities, which we may modify from time to time. Specifically, in a territory owned by us, our affiliates, or other franchisees (an "Excluded Territory"):

• ⚫ you may only market to and solicit referrals from insurance agents, adjusters, mitigation companies, contractors, property management companies, and other similar referral sources ("Referral Sources") located in such Excluded Territory if they have customers, clients, or residential or commercial properties located within Your Territory and you inform them that you are only seeking referrals for customers, clients, or residential or commercial properties located within Your Territory or an Unowned Territory (as defined below) , provided that the services to such referrals are not to be performed inside Your Territory; and
• ⚫ you may only provide services to customers located in such Excluded Territory if (i) a Referral Source or customer contacts you directly to request that you provide such services; and (ii) we authorize you to provide such services to a System Account (as defined below).

You may not operate a Facility in an Excluded Territory or advertise in or directly market to customers (other than Referral Sources as provided above) located in an Excluded Territory. You may not use other channels of distribution, such as the Internet, telemarketing, or other direct marketing, to make sales in an Excluded Territory. When marketing to Referral Sources, you may not ask the Referral Source to refer customers located within an Excluded Territory.

In a territory that has not been assigned to us, our affiliates, or other franchisees (an "Unowned Territory"), until we provide you with notice that such Unowned Territory has been purchased by another franchisee or reserved for operation by us or an affiliate:

• ⚫ you may market to anyone located in such Unowned Territory, including Referral Sources and customers; and
• ⚫ you may provide services to customers located in such Unowned Territory.
• ⚫ You may not operate a Facility in an Unowned Territory.

Reserved Rights. We and our affiliates reserve all other rights within and outside Your Territory. Outside of Your Territory, we and our affiliates have the right to conduct, or grant others the right to conduct, any business activities without any limitation. Inside of Your Territory, we, our affiliates, our other franchisees, and our designees may conduct certain activities in the following circumstances (by way of example only and not as a limitation):

• (1) We, our affiliates, our other franchisees, and our designees have the right to use the Marks to market to and solicit referrals from Referral Sources located inside Your Territory, provided that the services to such referrals are not to be performed inside Your Territory.
• (2) We, our affiliates, our other franchisees, and our designees have the right to provide products and services using the Marks and the System to customers located inside Your Territory if (i) there is a Catastrophic Event, or (ii) a customer or Referral Source requests that they provide such services.
• (3) We and our affiliates have the right to advertise or promote Franchised Businesses and/or related products and services using the Marks in Your Territory, including at home shows, trade fairs, exhibitions, and similar events.
• (4) We and our affiliates have the right to offer dissimilar, similar, or identical products and services, or grant others the right to offer dissimilar, similar, or identical products and services, using the Marks or other marks through channels of distribution in Your Territory other than a Franchised Business.
• (5) We and our affiliates have the right to operate, or grant others the right to operate, businesses or outlets in Your Territory offering dissimilar products or services under trademarks or service marks other than the Marks.

We, our affiliates, our franchisees, or our designees need not compensate you if we or they engage in these activities. Neither we nor our affiliates operate, franchise, or have present plans to operate or franchise a business under a different trademark that sells or will sell products or services similar to those you will sell. However, we reserve the right to do so in the future.

Source: Item 12 — TERRITORY (FDD pages 40–43)