What rights do Aerus and its affiliates have regarding the use of the "Aerus" trademark?

[Item 13: Trademarks]

(b) Aerus License Agreement

The trademark "Aerus" is owned by our affiliate Aerus Concepts, L.P. ("Aerus Concepts"). We obtained our right to use certain "Aerus" marks and the System pursuant to a license agreement with Aerus Concepts dated August 27, 2001 (the "Aerus License Agreement").

i. Based upon rights granted to us, we are licensing to you, on a non-exclusive, non-assignable basis (subject to the Franchise Agreement and the Manuals, as applicable), the trademark "Aerus" and if you are a franchisee who has executed a Beyond Addendum, the trademark "Beyond", in each instance, for use in the sale, marketing, distribution and repair of various household products, vacuum cleaners and related accessories. Aerus Concepts may terminate the Aerus License Agreement upon written notice if we or you breach the Aerus License

Agreement. Material, uncured breach of the license terms by you or any other franchisee might result in termination of the license for all franchisees.

ii. We and our affiliates have certain inspection rights related to the use of the "Aerus" and "Beyond" trademarks, including the ability to inspect your premises for proper use of the mark. We may also issue trademark usage guidelines from time to time governing your use of the Marks. If you fail to conform to the quality requirements or usage guidelines, we may terminate or suspend your license to use the Marks. The Marks may be used only in the United States if your Approved Location or Development Area is in the United States and only in Canada if your Approved Location or Development Area is in Canada and only in (i) direct retail sales to residential customers (meaning door-to-door sales and other sales to residential end-users in a manner other than from a fixed, store location open to the general public but not including sales over the Internet or other electronic communications media); and (ii) retail sales to consumers from facilities owned or leased by us or our franchisees and identified as "Beyond by Aerus", "Aerus" and/or "Electrolux" stores. You may be required to assist in the protection of the mark, and are obligated to indemnify us and our affiliates against any claim resulting from your use of the mark on products or materials.

[Item 13: Trademarks]

The Franchise Agreement grants to you a limited non-exclusive right and license to use the Marks in strict accordance and compliance with the terms and conditions of the Franchise Agreement and the Manuals, including the Policies and Procedures and any specific guidelines We may impose from time to time. We may, at our option from time to time, modify and change the Marks permitted to be used by you and the manner in which such of the Marks may be used, including discontinuing the permitted use of any of the Marks. This license does not permit, and it will be strictly prohibited for, you to use or include any of the Marks as a part of your legal business name. All rights and licenses granted concerning the Marks will automatically terminate upon the expiration or termination of the Franchise Agreement and you must promptly thereafter return to us any documents, forms, applications, signs, banners, advertisements, marketing information, product specifications, sales literature and other material bearing the Marks. All rights and goodwill in any of the Marks are the sole and exclusive property of us and our applicable licensor, if any, and all use of the Marks will inure to the sole benefit of us and our affiliates. Nothing in the Franchise Agreement or the Beyond Addendum gives you any right in or to any of the Marks, except as specifically provided in the Franchise Agreement or Beyond Addendum. You must not, for yourself or together with any other person or entity, challenge our right, title or privilege in or to any of the Marks.

You must notify us immediately by telephone, and thereafter in writing, of any apparent infringement of or challenge to your use of any of the Marks or of any claim by any person of any rights in any of the Marks. We will have the right to take such action as we deem appropriate in connection with the foregoing, including the right to control any settlement, litigation or proceeding arising out of any such alleged infringement, challenge or claim or otherwise relating to any of the Marks. You must execute any and all instruments and documents, render such assistance, and do such acts or things as may, in our reasonable opinion, be necessary or advisable to protect and maintain our or our affiliate's interests in any litigation or other proceeding or to otherwise protect and maintain our, our affiliates or any other interested party's interest in the Marks.

Source: Item 13 — Trademarks (FDD pages 47–51)