What rights are franchisees granted under the Amorino franchise agreement?

• (1) Subject to the terms and conditions contained in this Agreement, Amorino grants to you the right to use the System, the Proprietary Marks and the Copyrighted Materials solely in connection with the operation of the Franchised Business, and you accept this right and agree to undertake the obligation to use the System, the Proprietary Marks and the Copyrighted Materials solely in connection with the operation of the Franchised Business.
• (2) The franchise granted to you under this Agreement includes only the right (a) to use the System, the Proprietary Marks and the Copyrighted Materials in connection with the retail sale of authorized products at the Store location to be identified as the "Franchised Location" in a written addendum to this Agreement substantially in the form of addendum attached as Attachment A (the "Form of Addendum"); and (b) to use the Proprietary Marks and the Copyrighted Materials to operate, advertise and promote the Store in accordance with the terms set by us. The location identified in such addendum as the "Franchised Location" shall be the "Franchised Location" for all purposes under this Agreement.
• (3) We do not grant to you any right to (a) sublicense the use of the System, the Proprietary Marks or the Copyrighted Materials, (b) cobrand with another franchise or concept, (c) provide off or on-site catering services without Amorino's prior written consent, (d) deliver or ship Proprietary Products or other Amorino Goods and Services (as defined in Section 8.D below), regardless of the destination, without Amorino's prior written consent, or (e) distribute Amorino products through wholesale channels, such as supermarkets, convenience stores or other retailers, or through food service providers such as restaurants or airlines.

B. Protected Area.

• (1) Amorino grants to you the exclusive right to operate the Franchised Business at the Franchised Location in the territory to be identified as the "Protected Area" in an addendum substantially similar to the Form of Addendum (the "Protected Area"). The territory identified in such addendum as the "Protected Area" shall be the "Protected Area" for all purposes under this Agreement. During the term of this Agreement, Amorino shall not own or operate, or license or grant anyone else the right to own or operate, an Amorino Store, kiosk outlet, mobile outlet or other retail outlet under the Proprietary Marks within the Protected Area.
• (2) You acknowledge and agree that the franchise granted to you under this Agreement is nonexclusive outside of the Protected Area and that you may not operate in any way or sell any Proprietary Products or other Amorino Goods and Services outside the Protected Area if the area is reserved exclusively by Amorino or by another franchisee or such sale is otherwise in violation of this Agreement.

• (3) You further acknowledge that exclusivity of the Protected Area can be revoked upon the occurrence of any of the events which would give rise to our right to terminate this Agreement and your franchise as set forth in Section 16 of this Agreement.
• C. Reservation of Rights. Amorino retains and reserves to itself all other rights in and to the Proprietary Marks including the exclusive right to own and operate, and to grant others the right to own and operate, Amorino stores, kiosks and mobile outlets outside the Protected Area, regardless of their proximity to the Protected Area; and the right to distribute Proprietary Products and other Amorino Goods and Services through alternative channels of distribution such as grocery stores, supermarkets, convenience stores, specialty stores, restaurants, both within and outside the Protected Area, and via mail order, catalog sales and/or the Internet for delivery to customers, both within and outside the Protected Area.

Source: Item 22 — CONTRACTS (FDD pages 80–81)