What are the specific obligations of a 7 Brew franchisee regarding pre-opening purchases/leases (Item 9) and how are these affected by the restrictions on suppliers (Item 8)?

Store Development

You must develop the Store at your expense. You must follow our construction guidelines and mandatory specifications and layouts for a 7 BREW Store ("Plans"), including requirements for dimensions, design, interior layout, improvements, color scheme, décor, signage, and Operating Assets. All other decisions regarding the Store's development are subject to our review and prior written approval.

You must adapt the Plans for the Store ("Adapted Plans") and make sure they comply with the Americans with Disabilities Act ("ADA"), all federal, state, and local laws, codes, ordinances, and regulations, and lease requirements and restrictions. You must send us the Adapted Plans for pre-approval before the Store's build-out begins and all revised or "as built" plans and specifications prepared during construction and development. Our review is limited to reviewing compliance with our Plans. We have the right to pre-approve your proposed architect.

You must at your expense construct, install all trade dress and Operating Assets in, and otherwise develop the Store according to our standards, specifications, and directions. The Store must contain all Operating Assets, and only those Operating Assets, we specify or pre-approve. You agree to place or display at the Store (interior and exterior), according to our guidelines, only the signs, emblems, lettering, logos, and materials we approve.

We periodically may modify Brand Standards, which may accommodate regional or local variations, and those modifications may obligate you to invest additional capital in the Store and/or incur higher operating costs. You must implement any changes in mandatory Brand Standards within the time period we request. However, except for:

• (i) changes in the computer system;
• (ii) changes in signage and logo (i.e., Store exterior graphics);
• (iii) certain changes in connection with a transfer;
• (iv) changes required by the Store's lease or applicable law; and
• (v) general Store upkeep, repair, and maintenance obligations,

for all of which the timing and amounts are not limited during the franchise term, we will not require you to make any capital modifications during any year of the franchise term the costs of which during that year exceed $10,000 (excluding taxes and delivery charges). You must incur these costs in order to comply with this obligation and our requirements (even if such expenditures cannot be amortized over the remaining franchise term). Within 30 days after receiving written notice from us, you must prepare plans according to our standards and specifications and, if we require, using architects and contractors we designate or approve, and then submit those plans to us for written approval.

Test Programs

We periodically may ask you to participate in certain test programs for new services, products, and/or Operating Assets. If you agree to participate, this could obligate you to incur additional operating costs for the Store. Unless we agree otherwise, we need not reimburse those costs. You must maintain and timely send us any records and reports we require concerning the test programs.

Insurance

You must maintain insurance coverage for the Store at your own expense in the amounts, and covering the risks, we periodically specify. Your insurance carriers must be licensed to do business in the Store's state and be rated A-, VII or higher by A.M. Best and Company, Inc. (or satisfy our other criteria). We have the right periodically to increase the required coverage amounts and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or relevant changes in circumstances. Insurance policies must be written in your name and name us (and our parent companies, subsidiaries, and all other affiliates, and our and their respective officers, owners, directors, agents, representatives, and employees) as additional insureds for claims arising from your products and operations. You must provide updated insurance policies and proof of payment to us at least 10 days before the expiration or termination of such policy or policies.

You currently must have the following minimum insurance coverage: (i) commercial general liability insurance (including product, contractual, and owned and non-owned vehicle liability coverages) in minimum amounts of $2,000,000, aggregate single limit coverage; (ii) "All Risk" property damage insurance; (iii) plate glass insurance and boiler insurance (if applicable);

(iv) employer's liability, workers' compensation, and such statutory insurance as may be required in the state in which the Store is located; and (v) employment practices liability insurance with a limit of not less than $1,000,000 per occurrence and $1,000,000 aggregate. We recommend a $5 million umbrella coverage and cyber-insurance up to $1,000,000. You also must obtain and maintain all other insurance required under applicable state law.

Loyalty Program Media

You must participate in, and comply with the requirements of, our gift/loyalty/stored-value card and other customer loyalty programs and, once available, use our mobile or digital-ordering and franchise system applications and other digital channels. We have no obligation to reimburse you for any costs you incur in participating in our gift/loyalty/stored-value card and other customer loyalty programs, including for providing products or services to customers without compensation.

Supplier Approval and Designation Process and Compliance with Brand Standards

Except as described above, there are no goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Store that you currently must buy or lease from us (or our affiliates) or designated or approved suppliers.