Does Amorino provide material benefits to a franchisee based on the franchisee's purchase of particular products or services or use of designated or approved suppliers?

o approve, different alternative suppliers. We do not provide material benefits (including, for example, renewal or granting additional franchises) to a franchisee based on the franchisee's purchase of

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particular products or services or use of designated or approved suppliers.

We may designate certain non-proprietary food products, beverages, ingredients, fixtures, furnishings, equipment, uniforms, supplies, paper goods, menus, packaging, forms, computer hardware, software, modems and peripheral equipment and other products, supplies, services and equipment, other than Proprietary Products, which a Store may or must use or sell at the Store. A Store may use, offer or sell only those non-proprietary products that we expressly authorize and may purchase them from (i) us, our affiliate Amorino Trading, or our affiliate -18°, or (ii) suppliers we designate. Our officers own interests in the affiliated companies that supply goods or services to our franchise system, including Amorino Trading and -18. If one of our other affiliates becomes a supplier in the future, our officers may own interests in that affiliate, as applicable. A Store must purchase the POS computer from Square or any other vendor selling hardware compatible with Square software. See Item 11 for more information about computer hardware and software requirements.

There are no purchasing or distribution cooperatives currently in existence for the required purchases from our affiliate -18° or from Amorino Trading or from any other approved third-party vendors. We do not currently have or negotiate any purchase arrangements with suppliers for the benefit of franchisees. In the future, Amorino and its affiliates may negotiate purchase arrangements with suppliers for the System's benefit and may derive revenue or obtain rebates, bulk pricing discounts or allowances for their own account from approved or designated suppliers if rebates or other considerations become available because of the Store's purchases of products or services.

We may but are not obligated to conduct advertising for your Store. We do not currently advertise in the United States; however, you must purchase from us or our approved supplier all promotional materials designated by us to promote the sale of new and featured products. We may elect to utilize various local, regional, and/or national media campaigns in the future which may include radio, television, magazine, newspaper, and internet advertising campaigns.

Franchised Location and Lease

You must acquire a site for the Store that meets our site selection criteria and that we approve. If your Store occupies the space according to a commercial lease, the lease must contain terms that we specify in the Franchise Agreement, which terms are described in Item 11. Although we do require that the lease for your Store contain certain terms, we do not otherwise control or have any affiliation with your landlord. When the Store signs the Franchise Agreement, we will mutually agree on a site selection date which will be the date by which you must have secured a location and signed a lease. You must construct, equip and improve the Store in compliance with our current design standards and trade dress. The Store must purchase and install, at your expense, all millwork and customized seating, fixtures, furnishings, equipment (including a point-of-sale cash register system), decor, and signs from an approved third-party supplier. The kiosk locations shall be constructed in accordance with our current design standards.

Insurance

You must obtain and maintain insurance policies protecting you, and us and such additional

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insureds as we may require from time to time, on a primary non-contributory basis. The insurance must be underwritten by insurers licensed and admitted to write coverage in the state in which the Store is located and with a rating of "A" or better.

Such insurance policies shall include, at the minimum, the following policies: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance; (b) comprehensive commercial general liability insurance in an amount of not less than the following combined single limits: $2,000,000 general aggregate, $2,000,000 products/completed operations aggregate, $1,000,000 each occurrence, $1,000,000 personal and advertising injury, $50,000 fire damage legal liability, and $5,000 medical expense limit (any one person); (c) employers liability coverage in an amount not less than $500,000 per accident for bodily injury by accident, $500,000 policy limit for bodily injury by disease, and $500,000 per employee for bodily injury by disease; (d)

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)