RECITALS

• 1. We and Our affiliates and/or predecessors have developed a system for establishing, operating and marketing an Information Technology (I.T.) support business providing business computer support, general I.T. support, and other technology related services under the trade name and/or trademark "CINCH I.T." and Franchisor is currently marketing and selling franchises under that name and/or mark;
• 1. Through the expenditure of time, effort and money, We have acquired unique experience, special skills, techniques and knowledge, marks, concepts, and proprietary information and have created and developed a unique business system for providing Information Technology Support Services ("Franchisor's System" or "System"), which System includes standards, specifications, methods, procedures, techniques, know-how, management directives, identification schemes, and proprietary marks and information in connection with the operation of the CINCH I.T. business ("System Standards"), which System Standards may be further developed by Us;
• 1. Our System is used in connection with the name CINCH I.T., CINCH I.T. design trademark, other trademarks, service marks, trade names and trade symbols, trade dress, signs, slogans, logos, designs, emblems, URLs, domain names, website addresses, e-mail addresses, digital cellular addresses, wireless web addresses and the like ("e-marks") and copyrights (hereinafter referred to collectively as "Marks"), as We have adopted and designated, or may subsequent to the date of this Franchise Agreement acquire and/or develop and designate for use by You in connection with Our System ("Licensed Rights");
• 1. We are the owner of the Licensed Rights, together with all the goodwill connected to and/or with such rights;
• 1. All of the enumerated Licensed Rights are recognized by the public as distinctive and valuable, and You recognize the potential benefits to be derived from being associated with and licensed by Us and from utilizing the Licensed Rights as We make available to

Our franchisees through and under franchise agreements;

• 1. By establishing and maintaining uniformity and high standards of quality and service, We have developed an excellent reputation and significant goodwill with the public with respect to the products and services available through CINCH I.T. businesses, which will continue to be a major benefit to Us and those associated with Us;
• 1. You desire to use Our System, Marks and goodwill to establish and operate a CINCH I.T. franchised business in the territory described, and upon the terms and conditions set forth, in this Franchise Agreement;
• 1. The terms and conditions of this Agreement are reasonably necessary to maintain Our uniform standards of quality and service and to protect the goodwill of the Licensed Rights;
• 1. You acknowledge and agree that, in the administration of this Agreement and in taking actions with respect to Our relationship with You, We must take into account the needs of the System, and the effect upon the System as a whole, and the need to protect the Marks for the benefit of the System; and,

Source: Item 23 — RECEIPTS (FDD pages 60–269)