What does the License granted to Canopy Lawn Care franchisees include?

[Item 22: CONTRACTS]

3. TERM OF THE AGREEMENT AND LICENSE

• 3.1 This Agreement and the License granted shall continue for a period of ten years ("Initial Term"). This Initial Term shall begin on the date this Agreement is executed by Franchisor, subject, however, to termination in accordance with the provisions of this Agreement. When the Initial Term expires Franchisee shall have the option to extend its rights to operate the Lawn Care Business for two additional terms for a period of five years each ("Successor Term"), provided Franchisor determines in its sole and absolute discretion that Franchisee has met all of the following requirements:
• (a) Franchisee has not failed to remedy any breach of this Agreement specified by Franchisor in a written notice to Franchisee as per Sections 17.1 or 17.2;
• (b) Franchisee has not committed and received notice of three or more breaches of this Agreement in the 12 months prior to the end of the current Initial Term, even if such breaches were timely remedied;

• (c) Franchisee has given Franchisor a written notice of intent to extend its rights to operate the Lawn Care Business no less than two months or more than six months prior to expiration of the Initial Term;

• (d) Franchisee is current in its payment obligations to Franchisor, Franchisor's Affiliates, and Franchisee's trade creditors;

• (e) Franchisee has met Franchisor's then-current qualifications for new or renewing Canopy® franchisees;

• (f) Franchisee executes a successor franchise agreement ("Successor Franchise Agreement") and all other agreements in the form then being used by Franchisor in granting new franchises, which may contain materially different terms and conditions than this Agreement, provided that Franchisee will pay Franchisor the Successor Franchise Fee (defined below) instead of the Initial Franchise Fee and the Successor Term will be no less than five years, as described above. [Item 22: CONTRACTS]

RECITALS

WHEREAS, Franchisor and its affiliates have developed a comprehensive system for the operation of a business, which provides environmentally-responsible, subscription-based, tech-enabled lawn care services, including lawn application such as turf fertilization, and weed control and prevention.

WHEREAS, Lawn Care 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 "CANOPY" 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.

[Item 22: CONTRACTS]

• 4.2 Franchisee acknowledges that the 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 Lawn Care 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 a Lawn Care 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 Lawn Care 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 "Canopy Lawn Care" or similar derivatives thereof.

Source: Item 22 — CONTRACTS (FDD page 55)