What must an Extreme Art Studio franchisee do when using the marks?

manner material to your Franchise.

You must follow our rules when using the Marks. You cannot use our name or Mark as part of a corporate name or with modifying words, designs or symbols unless you receive our prior written consent. You must indicate to the public in any contract, advertisement, and with a conspicuous sign in connection with your Extreme Art Studio Business that you are an independently owned and operated licensed

franchisee of Extreme Art Studio Franchising, LLC. You may not use the Marks in the sale of unauthorized products or services, or in any manner we do not authorize. You may not use the Marks in any advertising for the transfer, sale or other disposition of the Extreme Art Studio Business, or any interest in the Franchise. All rights and goodwill from the use of the Marks accrue to us.

We may establish new marks in the future, and you must use and display these marks in accordance with specifications and bear all costs associated with changes to Mark or introduction of new marks. There are no effective adverse material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, nor any pending infringement, opposition, or cancellation proceeding, or any pending material litigation involving the Mark. We know of no superior prior rights or infringing uses that could materially affect your use of the Mark in any state.

You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or of any person's claim of any rights in any Mark, and you may not communicate with any person other than us and our and our affiliates' attorneys regarding any infringement, challenge or claim. We and/or LSO may take the action we deem appropriate and control exclusively any litigation, USPTO proceeding, or other administrative proceeding from the infringement, challenge, or claim, or otherwise concerning any Mark. You must sign the documents and take the actions that, in the opinion of our attorneys, are necessary or advisable to protect and maintain our interests in the Mark. We will reimburse you for your reasonable costs of taking any action that we have asked you to take.

If it becomes advisable at any time for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trade or service marks, you must comply with our directions within a reasonable time after receiving notice. We do not have to reimburse you for your costs, loss of revenue, or other expenses of promoting a modified and/or substitute trademark or service mark.

You must not contest, or assist any other person in contesting, the validity of our and LSO's ownership of the Mark. Your use of the Mark and any goodwill established by that use are exclusively for our and LSO's benefit.

Source: Item 13 — TRADEMARKS (FDD pages 39–40)