If Mr. Sandless modifies the Proprietary Marks, is the franchisee required to comply with the changes?

• B.

The System is identified by certain trade names, service marks, trademarks, logos, emblems and indicia of origin, including, but not limited to, the mark "Mr.

Sandless" and such other trade names, service marks, and trademarks as are now designated (and may hereafter be designated by us in writing) for use in connection with the System (hereinafter referred to as "Marks" or "Proprietary Marks");

• C.

We offer franchises to qualified individuals for the right to use the System and Proprietary Marks within designated territories (the "Business").

Unless otherwise stated to the contrary herein, the term "Business" shall apply to both a Mr.

Sandless Business.

• D.

You have applied to us for the right to operate a Business pursuant to the terms of this Agreement, and we have approved your application in reliance upon all of the representations made in your application, including those concerning your financial resources, your business experience and interests, and the manner in which the franchise will be owned and operated.

• E.

You acknowledge that you have read this Agreement and our Franchise Disclosure Document, and that you have been given an opportunity to obtain clarification of any provision that you did not understand.

You also understand and agree that the terms and conditions in this Agreement are necessary to maintain our high standards of quality and service, and the uniformity of those standards at all Mr.

Sandless Businesses.

AGREEMENT

NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, mutually agree as follows:

1. FRANCHISE GRANT

Source: Item 22 — CONTRACTS (FDD page 42)