How does the Bumble Roofing franchisee's obligations in Item 9 relate to the trademarks described in Item 13?

[Item 22: CONTRACTS]

RECITALS

WHEREAS, Franchisor and its affiliates have developed a comprehensive system for the operation of a business which offers and sells roofing installation and repairs, and related products and services, for residential and commercial customers.

WHEREAS, Roofing Businesses are operated under a unique business system, including valuable know-how, information, Trade Secrets, Confidential Information, methods, Manual, standards, designs, methods of trademark usage, copyrights, sources and specifications, confidential electronic and other communications, methods of Internet usage, marketing programs, and research and development (the "System").

WHEREAS, the distinguishing characteristics of the System include the trademark "BUMBLE ROOFING" and other trademarks and trade names, confidential operating procedures, confidential Manual, standards and specifications for equipment, services and products, method of Internet usage, methods of service, management and marketing programs and sales techniques and strategies. All of these distinguishing characteristics may be changed, improved, and further developed by Franchisor from time to time. They are Franchisor's Confidential Information and Trade Secrets and are designated by and identified with the Marks described in this Agreement.

WHEREAS, Franchisor's affiliate, Lynx Franchising Intellectual Property, LLC ("Lynx IP") is the owner of certain trademarks and service marks associated with or related to the System, and which represent the System's high standards of quality, service and customer satisfaction, and Lynx IP has granted to Franchisor the right to use and sublicense others to use those trademarks and service marks.

WHEREAS, Franchisee acknowledges the benefits to be derived from being identified with the System, and also recognizes the value of the Marks and the continued uniformity of image to Franchisee, Franchisor, and other franchisees of Franchisor.

WHEREAS, Franchisee acknowledges the importance to the System of Franchisor's high and uniform standards of quality, service and customer satisfaction, and further recognizes the necessity of opening and operating a Roofing Business in conformity with the System, whether such Roofing Business is located in Franchisee's home or an outside leased or owned location.

[Chunk 5 | Item 13: Trademarks] [Item 13: TRADEMARKS]

ITEM 13 TRADEMARKS

The Franchise Agreement grants you the nonexclusive right to use the Marks, including the service mark "BUMBLE ROOFING," and various designs and logo types associated with our services and Marks. You may also use other current or future Marks as we may designate to operate your Roofing Business.

Our affiliate, Lynx IP, owns the following service mark registered on the Principal Register with the United States Patent and Trademark Office ("USPTO") and it intends to file all required affidavits and renewals:

[Chunk 2 | Item 22: Contracts] [Item 22: CONTRACTS]

• (h) "Marks" means the trademark "BUMBLE ROOFING" together with such other trade names, trademarks, taglines, symbols, logos, distinctive names, service marks, certification marks, logo designs, insignia or otherwise which Franchisor owns or licenses and which Franchisor may designate from time to time as part of the System for use by Franchisees, and not thereafter withdrawn.

[Chunk 3 | Item 22: Contracts] [Item 22: CONTRACTS]

• 4.2 Franchisee acknowledges that Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:

  • (a) to use, and to license others to use, the Marks and System for the operation of Roofing Businesses at any location other than in the Territory, regardless of proximity to the Territory;
  • (b) to use, license or franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, in association with operations that are the same as, similar to or different than Roofing Business;

• (c) to use the Marks and the System in connection with the provision of other services and products or in alternative channels of distribution such as those described in 4.2(d), at any location including the Territory;

• (d) to offer the Services or Products, or grant others the right to offer the Services or Products, whether using the Marks or other trademarks or service marks, through alternative channels of distribution, including without limitation, wholesalers, retail outlets or other distribution outlets (other than Roofing Businesses), or by Internet commerce (e-commerce), mail order or otherwise, whether inside or outside the Territory;

• (e) to use any websites utilizing a domain name incorporating one or more of the words "Bumble Roofing" or similar derivatives thereof.

[Chunk 7 | Item 22: Contracts] [Item 22: CONTRACTS]

• (e) to use any websites utilizing a domain name incorporating one or more of the words "Bumble Roofing" or similar derivatives thereof.

Franchisor retains the sole right to market on the Internet and use the Marks on the Internet, including all use of websites, domain names, URL's, directory addresses, metatags, linking, advertising, and co-branding and other arrangements.

Franchisee may not independently market on the Internet, or use any domain name, address, locator, link, metatag, or search technique, with words or symbols similar to the Marks or otherwise establish any presence on the Internet without Franchisor's prior written approval.