t to the following definitions, rules, and limited circumstances:

• (a) You cannot engage in any Direct Solicitations outside of your Operating Territory. The term "Direct Solicitation" refers to and means "communications and/or contacts occurring through in person contact, telephone, mail, e-mail, direct mail, distributed print media, digital media and/or other forms of marketing directed toward clients, potential clients or referral sources of a Bee Organized Business";
• (b) You cannot provide Approved Services and Products in the operating territory of another Bee Organized Business (an "Assigned Area");
• (c) An "Open Area" is a geographic area that (i) is not an Assigned Area; and (ii) is located within a 15 mile radius of your Operating Territory;
• (d) Unless otherwise directed by us at any time, from time to time, and in our sole direction, you may provide Approved Services and Products to a client (an "Out of Territory Client") in an Open Area; and
• (e) Once an Open Area becomes an Assigned Area you will no longer be authorized or eligible to provide Approved Services and Products to any clients within the Open Area and you must turn over to us, for the benefit of another Bee Organized Business franchisee, all information and records related to clients in the Open Area.

Restrictions on Us from Soliciting or Accepting Orders in Your Territory

Except as otherwise noted above, there are no restrictions on us from soliciting or accepting orders from clients inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales,

telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under the Franchise Agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.

Competition by Us Under Different Trademarks

We do not have plans to operate or franchise a business under trademarks different from the Licensed Marks that sells or will sell goods or services similar to those that will be offered by you through the Franchised Business.

ITEM 13 TRADEMARKS

Under the terms of the Franchise Agreement, you will be granted a license to use the "Bee Organized" trademark and those other marks identified in the table below in connection with the operations of the Franchised Business. Our affiliate Bee Organized Trademarks, LLC is the owner of the Licensed Marks and has granted to us a license to use the Licensed Marks and to license our franchisees to use the Licensed Marks (the "License Agreement"). Although the License Agreement may be terminated as a result of a breach of the License Agreement, in the event of any termination of the License Agreement, our franchisees will continue to maintain the right to use the Marks pursuant to the terms of their Franchise Agreement. Termination of the License Agreement does not terminate use of the Marks by our authorized franchisees. We reserve the right to supplement and modify the marks that you may or may not use in connection with the operations of your Bee Organized Business. You may only use the Licensed Marks as authorized by us in writing and under the terms of your Franchise Agreement. You may not use the Licensed Marks in the name of any Corporate Entity that you establish.

Principal Trademarks Registered with the United States Patent and Trademark Office

The principal trademarks identified in the schedule below are a part of the Licensed Marks, our System, are registered with the United States Patent and Trademark Office (the "USPTO") and, unless otherwise designated by us, will be used by you in the operations of the Franchised Business. As to these marks all required affidavits have been filed with the USPTO.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)