What are the specific obligations of a Beehive Homes franchisee regarding quality assurance and continuous improvement (Item 9) and how does this relate to the franchisor's ongoing monitoring and evaluation of franchisee performance (Item 11)?

lable to other Homes.

VIII. OBLIGATIONS OF FRANCHISEE

8.1. Home. Franchisee covenants to construct, equip, staff and own one Home, at its own expense, at the Location; to open and commence operation of such Home no later than the date which is three (3) years after the Effective Date of this Agreement and to continuously operate such Home using the System under the Names and Marks, in compliance with this Agreement and the Standards, and in such a manner as to provide courteous, uniform, high quality service to the public, during the Term of this Agreement. Franchisee acknowledges that, although Franchisor provides the

Standards, Franchisee has exclusive day-to-day control of the business and operation of the Home and Franchisor does not in any way possess or exercise such control.

• 8.2. Compliance With Standards. Franchisee will comply with the Standards, including Franchisor's specifications for all supplies, products and services. Franchisor may require Franchisee to purchase particular supplies, products or services meeting certain standards to maintain the common identity and uniqueness of the design, furnishings and appurtenances of the Homes, and Franchisee will comply with such requirements. Unless Franchisor specifies otherwise, Franchisee may purchase supplies, products and services from any source of distribution which meets the specifications and Standards.
• 8.3. Compliance With Manual. Franchisee covenants to adhere to the Standards contained in the Manual. Portions of the Manual may be state specific, and it is the Franchisee's obligation to identify those portions and to keep them current and up to date. The Franchisee will not disclose the contents of the Manual to any unauthorized person and upon termination of this Agreement will return all Forms of Manual to Franchisor.
• 8.4. Compliance with Laws. Franchisee covenants to comply with all applicable statutes, ordinances, rules and regulations of federal, state and local governments and agencies thereof which in any way regulate or affect the operation of its franchise business and agrees not to engage in any activity or practice which results in violation of any such statutes, ordinances, rules and regulations or which results in or may reasonably be anticipated to result in any public criticism of the Franchisor's System or any part thereof. Franchisee shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations, specifically, but not by way of limitation, employment relations with staff and providing housing to residents. Notwithstanding the foregoing, Franchisor shall provide reasonable assistance to Franchisee in the initial licensing of the Home with state and local governmental authorities for operation as a Home and thereafter Franchisee shall be solely responsible for maintaining such licensing.
• 8.5. Confidentiality. Franchisee will treat as confidential the Standards, the Manual and all other Proprietary Information. Proprietary Information means all information or materials concerning development, operation, marketing and licensing of the System, including the Standards and the Manual, whether developed by Franchisor, Franchisee or another Person. Franchisee acknowledges and agrees that it does not acquire any right or interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Home under the terms of this Agreement. Franchisee agrees that it will not use the Proprietary Information in any business or for any purpose other than in the development and operation of the Home under the System and will maintain the absolute confidentiality of the ProprietaryInformation during and after the Term. Franchisee will not make unauthorized copies of any portion of the Proprietary Information;