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/ Perry@Nationwide-RE.com <br /> 480 Hibiscus St. Suite 1043 West Palm Beach,FL 33401 <br /> O:312-264-0298 X104 <br /> C:561-762-8638 <br /> www.Nationwide-RE.com <br /> 7/24/17 <br /> Mr. Steve Henderson <br /> Broderick Group <br /> Bellevue Office 110500 NE 8`h Street I Suite 900 <br /> Bellevue I Washington 198004 <br /> d: (425) 646-5248 I c: (206) 799-0126 I o: (425) 646-3444 <br /> henderson@broderickgroup.com broderickgroup.com <br /> BR0D' RICK <br /> RE: PODS stacking of containers/Seismic events <br /> Dear Steve: <br /> Regarding your question last week regarding PODS stacking of containers/Seismic events, as our firm <br /> represent PODS in the contemplated real esatate transaction, I am submitting this response on behalf of <br /> PODS for your review. I trust you will find the response sufficient. Rest assured that cities across the U.S <br /> (including in cities in WA) can attest that although PODS has grown to become a $1 billion +company, it <br /> has never strayed from its core values of putting Life Safety and Environment at the very top of its <br /> values list. PODS has always operated its business in a manner appropriate to these values. <br /> 1. Outside Storage/Staging: <br /> a. Note that all containers placed outdoors are empty. <br /> b. Container Structural Stability <br /> i. Approximately 14 years ago, PODS began a program of testing container <br /> structural stability to be certain their plan for stacking was safe. After several <br /> years of testing and re-design,they ultimately settled on a steel frame structure. <br /> In 2013 the newest generation of containers with even more improvements, <br /> (See specs on Exhibit A) ,went into production. PODS has an ongoing program <br /> of container design improvement. <br /> ii. PODS projects that they will shortly be introducing a new and improved design. <br /> This brand new design, in addition to various other improvements, for <br /> additional stacking stability and protection against any potential seismic events, <br /> features an interlocking system for the lower container to interlock with the <br /> container stacked above it. See Exhibit B.This interlocking system is similar to <br /> the systems used for containers on railroads and ships. Note that the first ever <br /> deliveries and assemblies are due take place Q4 2017. <br /> iii. Of particular note is the fact that in more than 12 years of stacking containers 3 <br /> high in more than 100 locations including throughout CA, WA, and other states <br /> which have seismic issues, high winds, etc., PODS' containers have withstood <br /> every type of Nature's hazardous events and have never had even one incident <br /> of structural failure or toppling event. <br />