Preview
FILED: NASSAU COUNTY CLERK 05/19/2021 10:19 AM INDEX NO. 609015/2018
NYSCEF DOC. NO. 397 RECEIVED NYSCEF: 05/19/2021
"Q"
EXHIBIT
FILED: NASSAU COUNTY CLERK 05/19/2021 10:19 AM INDEX NO. 609015/2018
NYSCEF DOC. NO. 397 RECEIVED NYSCEF: 05/19/2021
44-
9.6 Becausethe Unit is onecf manyurgiswitWa the Systera(a)that seHsimilarpoducts madservious
to fbe pub
FRANCHISEEagrecs1hathlt
Mlmetacomplywiththetemuof this
atuithe Sydnm[s)asa whteefor whichno adequateremedyal.lawAgmementvauhlcausektepefabtedamagstoFRANCEBSOR
may he avallable,including.withoa limitation. violations
at sundards,unhealthy,assab or
unannkaryconditions,unamknized oneof the Proprietary Marks and breases under
Section5 hment latheeventerFRANCBISElhbreacherdumm~tbreachof
uy ofhteensof¾ Agmemem,FRANCtUSOR
shahhereforebeforthwHhentitledgomininmsion resleia.7
suchbreachand/orto a decreaof specific
or y-8-•T.m,Without
showing provinganyacealdamageorirreparattleharmar leck orna adequate
at
remedy law,andwithatuttherequhemeatfor
thepostingorboad,thazarasbeinghambywaked afipal deferminationismadebya comtof
by FRANCEDSEE,nntB competent
jurisdiction The kregaing remedysimllbe in addEdon
in al! othericttiediesor rights whichFRANCRISDRmight
huo by virtue of any1seschof rhisAgreementby FRANCMBEE. chewise
Secuoalt Thmsfer Providons
10,0 Wansfer By FRANCETSOR. This Agreement shall irmre to the benefit of d)e
successorsand assignsof
FRANCHISOReither indivu1uallyErrcolleedvely..FRANCHESORthall eachhavethetight to
assignitt rightsDaderthis
Agreamsetlo any person.persims,partuarship.associationor cotporation,providedthat the transferee
agrecain wridug to
assumeall obligadonsundertaken
byFRANCEDSDR bordnandFRANCHIEEEsceivesa statr.mentfranbmhFRANCtUSOR
ast its tensfereeto that effect Uponsuchassignmentund
assmpúon, FRANCESOR.shall be mzderno furtherobligation
bureanderexceptfor acauedliabipliesif any.
- 0.0.1R'¾Agreesnentmoworbereaftergnmds
FRANCESF£ rightswidtrespectionmrethanone(T)brand,FRANCHISOR
shallhavethedght, st anyñmeandfmm ibmatotime.to.require PRANCESEEt6 excesteand
ite5ycracparatecorcrN@for
eachbrand,endi containingâ)l of thetermsof thisAgreesuzat
pértainingto suchbrand.FRANCH1SEEagreesto execatemod
returnsuchrepl=ntcontractstoPRANCITISORwithin thirty (30)daysafterreedpt
thereaftHPRANCHISEBIailsatio
so,FRANCESOR shaBhavedaright to eneda inth inswamentson FRANCHISEE'sbebanand delivera
FRANCmsEli copy diereofw
10.T · FRANCMSEEunderstandsmad
acknowl.edges
cat therightsandduetssetforthinthis
Agreementarepursorm1aFRANCHISEEandthat PRANCWSORbasgnmtedthe FnEnchisp
in relianceonthe bunireseskul
and er.perienon.imancial capacityand personald3aracterof FRANCHISEELExcept as bercinafter
.
provided, neRher
FRANCHI5p4 noranyparmer,if FRANOUSEE is a partnership,rior muymember,if FRANCMSEE is bTzraited
nor any sharehol Eiability
company("IlC'% if FRANCRISEEis a corponnion.without FRANCHISOR'sprior written
consent,
shall,by opera6enoE1awor othemise,sell,assign,iransfer,convey..giveaway,pledge,inortgageor otherwise
encumberto
any persawperena. parmmship,assa:intion,11C or corporation.-anyinteresEin mis Agreement, or any interett in the
franchiscgramedhereby,oranyinterestinsayproptiebzship,parlarsship,1LCor corporation
whichowns anyinterestinthe
franchise,nor'offer,permit or sufferthe same.Any purportedassignmea(or transfm-not
theprior wrinan césent of
holog
FRÅNCESOR shall be an11and void andshall constitute default hercunder.
Añy proposedtransrcrmist meet an fbe
Icquiremensof FRANCHISORincleding,but not limited to, thosesetforth in this Section10.
10.2 Coman v FRANCIUSDA FRANCHISORshall not nrueamnablywithholditsconsentto
-
in parigraph 10.1Abova.provided, any transferrefmedto
ht:
lO11 FRANCHI5EEmoti haWoperatdtheUnit foraperiod of not lessthansix (6)monthsprior sotheproposed
transfort
10.2,2h rales priceof the interestto be conveyedmitst not be so high. or theimms of saleso
onerons,that. in Lbs
judgmentaf FRANCHISOR.1heunndcreewill be unhly
to paperly awintain,operateandpromote the.UnLtundmeerthe
. transferec'sfinancialandother obligadonsto FRANCESOR, thùd party suppliersandcreditors This
priwision shall not
crose anyMability to chhertEansferor
at transfereeonthepart of FRANCESOR. in theaven thatFRANCEISOR
approves
thetransferandthe transferesexperiencesfinancialdiffbitle
NL2.3Thetransfereeandeachpanne4shareholderor'member
of the transferee.asdecase may be,musibr.a UnhedStates
cidaemer lawful residentalien of theUnhed States,mustbe of good moral characterand
reputationandmostbavea good
creditrating ad
businessquanfication.md aptitudereasonablyaómplableto FRANCHISOR. Soch
qualificationsinclude,
wiGtoutlimitation,Eteracyandfluemeyin thmEngushlanguagesuSicicot,in FRANCHISOR'sopinion, tocomrannicatewith
employees,customers,andsuppliersof FRANCMSORand to satisfactorUycomplcle FRANCHISOR'srequirott
program and such other tests and interviews as FAANCESDR training
shall reasonablydeem to be necessaryor desirable.
FRANCRISEEshallprovideFRANCMSORwith suchinformationanFRANCH(SOR
may require10rnakea determination
concerningeachproposedtransferse;and-
10.14 TTtetransfereemay nette a limited partnership,trust or aher
ertthymotspecifically authorizedhetein.
10.3 1Yatisfer Reculreracnts. Eachtranarerof any interestin FRANCHISEE, ths Unk, this AgreemenE
and/orthe
Fruchise hereir)gr,mled,mustreceivethe pdor writtenconses of FRAliOUSOR setforth in
subsedian)D2 aboveand
inustconfonn to and/orcomplywith the fol.lowingrequiremenis-
011 Prior to the transfer,FRANCÉUSEl!must pay and sniisfy-all accruedmoneyobligations.to
aFliktra nad/orsubsidiariesand to anyFund,obligationsof FRANCHISE5 whichFRANCESOR, Jes
FRANCHISOR has guaramined,
licas,
Ekforredsentandotherobugadonsunderthei.casefar the Unit or othercontracts
pertainingto the Untand thetmnsferSee
providedbeinw,as appicable;
FILED: NASSAU COUNTY CLERK 05/19/2021 10:19 AM INDEX NO. 609015/2018
NYSCEF DOC. NO. 397 RECEIVED NYSCEF: 05/19/2021
7,2 FRA.NCHISEEagressthat,duñng the tenn of dea
Agreementand after the expiration cr teradradon
FR.ANCIDSEEshall not directly or indiactly onatestat aid m thaeof,
contes6ngthe varzdityor ownershipo‰
FRANCHISEB shallaot, direcdy or ProprimaryMarks.
indirectlygpply toregistergogimeror otherwisesackto useor control ar in
any of ibe Proprietaryhimks or any confirdagly staglarfam any way use
United States;acr shaEFRANCHISEEassist o( variatiott therent in my placear jurisdiction outsidefbe
anyothersto do so.
7.3 FRANCHISEBshaUidentify itselfasthefranchiseeof theT.hitin
conjunctionwith any nasonbn
including, without liraifanon,useson leth-rheads,
invoices,caler fomis, rece¼¾and contractsUpon de Paprietary Marks,
FRANCESOR, FRANCSISEEshall displaya.notice writtenrequestof
identifymg the Unh as being independendyownedand openned
FRANCIESEE. in suchcementanhami nadat suchconspicuous by
beatinuson thel¼migasasFRANCERSOR
maydesigrate.
74 FRANCHISEEepecs ro notify FRANCHIROR
prorspdy of uny H6ssoon msgated by FRANCN$EE, or
pamon,fkm ar corporaGon
againstFRANCHISEE,relating to h by any
h Propriatey Marks.In theeventFRANCHISORundertakes
defenseor prosecutianof anysuchlidgation,FRANCESEB
agreesto executeany andall docutbcatsanddo
edngsasmay, in theopinionof t:cmsel for FRANCHISOR.be suchantsand
ar.cesaryto carry out suchdefensoor prosecution..
Section8. Restrictions
on FR1NCHISEE's Activities
8-D During thetermof thisAgreement.,
inatudinganyexicasion¤r renewattherent ad for aperimsot'two
expiradon or terminationof thin Agreement.regardkssof ths (2) yearssitor
causeof terminatiori (hereina.1iercatind the
Period"),nehbu PRANCRISEE,noranypartnce,officer, "Post--Turn
- director,shareholder
orfoemberof FRANCHISEE,asthecase
he, shall: may
.0.I IYrversorattanpt todivert any businessor customerof the
Unit to anycompetitor.by director indircet
oth-erwise,or do or'perform, directly ur indirecdh induccumntor
any other act lojurious or prejudicia)10the goodw81associaled
FRANCHISOR's ProprietaryMarksandSystem(sk with
30,2 Directly or indirectly contestor ed in comestingthe.right of
FRANCHISOR or any prospectivefranchisceof
FRANONSOR to obtaina bu0dingpemit,
zoning varianceor othergcpernmentatappievalrequiredfor the
anotherlocanon asa unit franchised developmet of
by FRANCHISOR.:or
8.D.3 Em-pt with respectto theownershifjor operationof
ndditionalunits anderFranchisesgranted
own,malutain,cogagein, becmployedby. or haveany interestit by FRANCHISOR,
ecy otherbusinesswhich sellsor offers to senhe sameor
substantiallysimilar productstothe type PRANGUSORrequiresto beaffered
by FRANCHISEEatthe Urit
provldeditat,
during 11 PosbTerraPeiiodonlyabe provisionsof thispáregraphB,0.3shall not
five (5) railes frarn thisnr any otheranit spp3yin anoths tasinesslocacd morethan
the
operanngsmder sa@cProprietaryJ¿arksof
Agreemcat upon noticein wrking to theother FRANCHISOREtbur iierly to this
during the PosGTermPeriod,shaUhavethetight to havedetermened
amidBye (S) mile radiusis a reasonabbresidedon whether
opFRANCE.WN's activitics,byrequating thatthematterbs
aderaGlin in accordancewith Section11 of this AgreememLh such subraittedm.
eventJhe decisionof the arbinator shall be find
binding upontheparties.FRANCHISEEfurtheragreestitards theeventarbitrationis and
in no cornpeofiveactivitics requested,FRANCHISEEwiU engage
pendingresolutionof the dispute.-
2.5 During tbt ttan of thisAgreercent,includinganyextensinacr senewel
broof,andfor a pmiodof two (2) yearsafter
r.«pliationor scrnùoationof this Agreemeohregardlessof the cause
of termination,nenberFBANCHISEP.,nor
officer.director,sbureholder
or memberof FRANClIISEE,asThtcase any pmmer,
nay be.shall communicateor divulge to,orusofbr the
benefitof any person,persons,partnership,associptionor
corpantion. any infamadan orR.nowledge
of constateting,equippingor operanagunitsunder concerningthemethodn
any of FRANCEtSOR'sSystemsandall otherhdormationar knowledge
which FRANCIUSOR deernsconfidentialand which
roaybe communicathdto FRANCH.tSBE.or of whkh
maybeapprisedby virtueof FRANE3RSEE'soperationunderthetoonsof tids PRANCHISEE
Agteement FRANCHISEEshand-nulgensch
cofiSdentiannfanwioa
only to suchof its employeesasmust baveacces Enit in orderto operatethe
A'ny and aU information, knowledge,ad franchisedbusiness.
knowhow behrdJag.without gmb.antet
drawings,an terish, speciftcations.
techniques,and ottwr data,which FRANCHISORdesignatescon5dentialshall be
Agreement FRANCHISORshahhavethe non-uxdnsiverightto useanddeemedconfidentW for Inrtpngesof this
-meorpornie5nic
beecfir.bf itself and other pf FRANCHISOR's franchispes FRANCHISOR'sSysems, ibr the
licenscesand distributors, all modifications.
mproverness developedor discoveredby FRANCSISEEor changes.and
FRANCHISEEVscmployecsar agentsIn conaceticowith the
frandised budness,without1myliabinry or obligationm the
deve1npur
thereoft
B.2. The covennis crmtainedin this section5 shallbe
construedasseverableand independentand shall be
andsppBedconsistentlywith tts requiretacntsof reasonabknessnad interpreted
equity.If an ar anyparSonof a coveranin this
8 is bcid unreasonableoramenfbreeable Section
by a court,arNtradonpanelor otheragencybavingvalidjurisdic6on in
which FRANCHISCR in a party,FRANCHISEB n decisionto
agrees
expressy tobe boundby any ksser covenamincludedwithin the
teralsof ach
greatercoveñnutthat impoãesibs anaxImum
duty pmaitted by law, asif the 1cssersevenaidwere
sbdedin, andmadea partof thisSectioriS. aeparate.ly
83 PRANC111SEE acknow)Edges
that FRANCHISORshallhavethe
right, in its sok discretion,to reducethe scopeof
any covenant aetforth in this Section 8, or of any pottian or portions
therent, without FRANCHISEE's consent,and
·
FRANCHISEEagreesto comply forthwith with
any covenar¼nsinodified.
GeneralTermumd Coudhicms -1b
Preview
FILED: NASSAU COUNTY CLERK 05/19/2021 10:19 AM INDEX NO. 609015/2018 NYSCEF DOC. NO. 397 RECEIVED NYSCEF: 05/19/2021 "Q" EXHIBIT FILED: NASSAU COUNTY CLERK 05/19/2021 10:19 AM INDEX NO. 609015/2018 NYSCEF DOC. NO. 397 RECEIVED NYSCEF: 05/19/2021 44- 9.6 Becausethe Unit is onecf manyurgiswitWa the Systera(a)that seHsimilarpoducts madservious to fbe pub FRANCHISEEagrecs1hathlt Mlmetacomplywiththetemuof this atuithe Sydnm[s)asa whteefor whichno adequateremedyal.lawAgmementvauhlcausektepefabtedamagstoFRANCEBSOR may he avallable,including.withoa limitation. violations at sundards,unhealthy,assab or unannkaryconditions,unamknized oneof the Proprietary Marks and breases under Section5 hment latheeventerFRANCBISElhbreacherdumm~tbreachof uy ofhteensof¾ Agmemem,FRANCtUSOR shahhereforebeforthwHhentitledgomininmsion resleia.7 suchbreachand/orto a decreaof specific or y-8-•T.m,Without showing provinganyacealdamageorirreparattleharmar leck orna adequate at remedy law,andwithatuttherequhemeatfor thepostingorboad,thazarasbeinghambywaked afipal deferminationismadebya comtof by FRANCEDSEE,nntB competent jurisdiction The kregaing remedysimllbe in addEdon in al! othericttiediesor rights whichFRANCRISDRmight huo by virtue of any1seschof rhisAgreementby FRANCMBEE. chewise Secuoalt Thmsfer Providons 10,0 Wansfer By FRANCETSOR. This Agreement shall irmre to the benefit of d)e successorsand assignsof FRANCHISOReither indivu1uallyErrcolleedvely..FRANCHESORthall eachhavethetight to assignitt rightsDaderthis Agreamsetlo any person.persims,partuarship.associationor cotporation,providedthat the transferee agrecain wridug to assumeall obligadonsundertaken byFRANCEDSDR bordnandFRANCHIEEEsceivesa statr.mentfranbmhFRANCtUSOR ast its tensfereeto that effect Uponsuchassignmentund assmpúon, FRANCESOR.shall be mzderno furtherobligation bureanderexceptfor acauedliabipliesif any. - 0.0.1R'¾Agreesnentmoworbereaftergnmds FRANCESF£ rightswidtrespectionmrethanone(T)brand,FRANCHISOR shallhavethedght, st anyñmeandfmm ibmatotime.to.require PRANCESEEt6 excesteand ite5ycracparatecorcrN@for eachbrand,endi containingâ)l of thetermsof thisAgreesuzat pértainingto suchbrand.FRANCH1SEEagreesto execatemod returnsuchrepl=ntcontractstoPRANCITISORwithin thirty (30)daysafterreedpt thereaftHPRANCHISEBIailsatio so,FRANCESOR shaBhavedaright to eneda inth inswamentson FRANCHISEE'sbebanand delivera FRANCmsEli copy diereofw 10.T · FRANCMSEEunderstandsmad acknowl.edges cat therightsandduetssetforthinthis Agreementarepursorm1aFRANCHISEEandthat PRANCWSORbasgnmtedthe FnEnchisp in relianceonthe bunireseskul and er.perienon.imancial capacityand personald3aracterof FRANCHISEELExcept as bercinafter . provided, neRher FRANCHI5p4 noranyparmer,if FRANOUSEE is a partnership,rior muymember,if FRANCMSEE is bTzraited nor any sharehol Eiability company("IlC'% if FRANCRISEEis a corponnion.without FRANCHISOR'sprior written consent, shall,by opera6enoE1awor othemise,sell,assign,iransfer,convey..giveaway,pledge,inortgageor otherwise encumberto any persawperena. parmmship,assa:intion,11C or corporation.-anyinteresEin mis Agreement, or any interett in the franchiscgramedhereby,oranyinterestinsayproptiebzship,parlarsship,1LCor corporation whichowns anyinterestinthe franchise,nor'offer,permit or sufferthe same.Any purportedassignmea(or transfm-not theprior wrinan césent of holog FRÅNCESOR shall be an11and void andshall constitute default hercunder. Añy proposedtransrcrmist meet an fbe Icquiremensof FRANCHISORincleding,but not limited to, thosesetforth in this Section10. 10.2 Coman v FRANCIUSDA FRANCHISORshall not nrueamnablywithholditsconsentto - in parigraph 10.1Abova.provided, any transferrefmedto ht: lO11 FRANCHI5EEmoti haWoperatdtheUnit foraperiod of not lessthansix (6)monthsprior sotheproposed transfort 10.2,2h rales priceof the interestto be conveyedmitst not be so high. or theimms of saleso onerons,that. in Lbs judgmentaf FRANCHISOR.1heunndcreewill be unhly to paperly awintain,operateandpromote the.UnLtundmeerthe . transferec'sfinancialandother obligadonsto FRANCESOR, thùd party suppliersandcreditors This priwision shall not crose anyMability to chhertEansferor at transfereeonthepart of FRANCESOR. in theaven thatFRANCEISOR approves thetransferandthe transferesexperiencesfinancialdiffbitle NL2.3Thetransfereeandeachpanne4shareholderor'member of the transferee.asdecase may be,musibr.a UnhedStates cidaemer lawful residentalien of theUnhed States,mustbe of good moral characterand reputationandmostbavea good creditrating ad businessquanfication.md aptitudereasonablyaómplableto FRANCHISOR. Soch qualificationsinclude, wiGtoutlimitation,Eteracyandfluemeyin thmEngushlanguagesuSicicot,in FRANCHISOR'sopinion, tocomrannicatewith employees,customers,andsuppliersof FRANCMSORand to satisfactorUycomplcle FRANCHISOR'srequirott program and such other tests and interviews as FAANCESDR training shall reasonablydeem to be necessaryor desirable. FRANCRISEEshallprovideFRANCMSORwith suchinformationanFRANCH(SOR may require10rnakea determination concerningeachproposedtransferse;and- 10.14 TTtetransfereemay nette a limited partnership,trust or aher ertthymotspecifically authorizedhetein. 10.3 1Yatisfer Reculreracnts. Eachtranarerof any interestin FRANCHISEE, ths Unk, this AgreemenE and/orthe Fruchise hereir)gr,mled,mustreceivethe pdor writtenconses of FRAliOUSOR setforth in subsedian)D2 aboveand inustconfonn to and/orcomplywith the fol.lowingrequiremenis- 011 Prior to the transfer,FRANCÉUSEl!must pay and sniisfy-all accruedmoneyobligations.to aFliktra nad/orsubsidiariesand to anyFund,obligationsof FRANCHISE5 whichFRANCESOR, Jes FRANCHISOR has guaramined, licas, Ekforredsentandotherobugadonsunderthei.casefar the Unit or othercontracts pertainingto the Untand thetmnsferSee providedbeinw,as appicable; FILED: NASSAU COUNTY CLERK 05/19/2021 10:19 AM INDEX NO. 609015/2018 NYSCEF DOC. NO. 397 RECEIVED NYSCEF: 05/19/2021 7,2 FRA.NCHISEEagressthat,duñng the tenn of dea Agreementand after the expiration cr teradradon FR.ANCIDSEEshall not directly or indiactly onatestat aid m thaeof, contes6ngthe varzdityor ownershipo‰ FRANCHISEB shallaot, direcdy or ProprimaryMarks. indirectlygpply toregistergogimeror otherwisesackto useor control ar in any of ibe Proprietaryhimks or any confirdagly staglarfam any way use United States;acr shaEFRANCHISEEassist o( variatiott therent in my placear jurisdiction outsidefbe anyothersto do so. 7.3 FRANCHISEBshaUidentify itselfasthefranchiseeof theT.hitin conjunctionwith any nasonbn including, without liraifanon,useson leth-rheads, invoices,caler fomis, rece¼¾and contractsUpon de Paprietary Marks, FRANCESOR, FRANCSISEEshall displaya.notice writtenrequestof identifymg the Unh as being independendyownedand openned FRANCIESEE. in suchcementanhami nadat suchconspicuous by beatinuson thel¼migasasFRANCERSOR maydesigrate. 74 FRANCHISEEepecs ro notify FRANCHIROR prorspdy of uny H6ssoon msgated by FRANCN$EE, or pamon,fkm ar corporaGon againstFRANCHISEE,relating to h by any h Propriatey Marks.In theeventFRANCHISORundertakes defenseor prosecutianof anysuchlidgation,FRANCESEB agreesto executeany andall docutbcatsanddo edngsasmay, in theopinionof t:cmsel for FRANCHISOR.be suchantsand ar.cesaryto carry out suchdefensoor prosecution.. Section8. Restrictions on FR1NCHISEE's Activities 8-D During thetermof thisAgreement., inatudinganyexicasion¤r renewattherent ad for aperimsot'two expiradon or terminationof thin Agreement.regardkssof ths (2) yearssitor causeof terminatiori (hereina.1iercatind the Period"),nehbu PRANCRISEE,noranypartnce,officer, "Post--Turn - director,shareholder orfoemberof FRANCHISEE,asthecase he, shall: may .0.I IYrversorattanpt todivert any businessor customerof the Unit to anycompetitor.by director indircet oth-erwise,or do or'perform, directly ur indirecdh induccumntor any other act lojurious or prejudicia)10the goodw81associaled FRANCHISOR's ProprietaryMarksandSystem(sk with 30,2 Directly or indirectly contestor ed in comestingthe.right of FRANCHISOR or any prospectivefranchisceof FRANONSOR to obtaina bu0dingpemit, zoning varianceor othergcpernmentatappievalrequiredfor the anotherlocanon asa unit franchised developmet of by FRANCHISOR.:or 8.D.3 Em-pt with respectto theownershifjor operationof ndditionalunits anderFranchisesgranted own,malutain,cogagein, becmployedby. or haveany interestit by FRANCHISOR, ecy otherbusinesswhich sellsor offers to senhe sameor substantiallysimilar productstothe type PRANGUSORrequiresto beaffered by FRANCHISEEatthe Urit provldeditat, during 11 PosbTerraPeiiodonlyabe provisionsof thispáregraphB,0.3shall not five (5) railes frarn thisnr any otheranit spp3yin anoths tasinesslocacd morethan the operanngsmder sa@cProprietaryJ¿arksof Agreemcat upon noticein wrking to theother FRANCHISOREtbur iierly to this during the PosGTermPeriod,shaUhavethetight to havedetermened amidBye (S) mile radiusis a reasonabbresidedon whether opFRANCE.WN's activitics,byrequating thatthematterbs aderaGlin in accordancewith Section11 of this AgreememLh such subraittedm. eventJhe decisionof the arbinator shall be find binding upontheparties.FRANCHISEEfurtheragreestitards theeventarbitrationis and in no cornpeofiveactivitics requested,FRANCHISEEwiU engage pendingresolutionof the dispute.- 2.5 During tbt ttan of thisAgreercent,includinganyextensinacr senewel broof,andfor a pmiodof two (2) yearsafter r.«pliationor scrnùoationof this Agreemeohregardlessof the cause of termination,nenberFBANCHISEP.,nor officer.director,sbureholder or memberof FRANClIISEE,asThtcase any pmmer, nay be.shall communicateor divulge to,orusofbr the benefitof any person,persons,partnership,associptionor corpantion. any infamadan orR.nowledge of constateting,equippingor operanagunitsunder concerningthemethodn any of FRANCEtSOR'sSystemsandall otherhdormationar knowledge which FRANCIUSOR deernsconfidentialand which roaybe communicathdto FRANCH.tSBE.or of whkh maybeapprisedby virtueof FRANE3RSEE'soperationunderthetoonsof tids PRANCHISEE Agteement FRANCHISEEshand-nulgensch cofiSdentiannfanwioa only to suchof its employeesasmust baveacces Enit in orderto operatethe A'ny and aU information, knowledge,ad franchisedbusiness. knowhow behrdJag.without gmb.antet drawings,an terish, speciftcations. techniques,and ottwr data,which FRANCHISORdesignatescon5dentialshall be Agreement FRANCHISORshahhavethe non-uxdnsiverightto useanddeemedconfidentW for Inrtpngesof this -meorpornie5nic beecfir.bf itself and other pf FRANCHISOR's franchispes FRANCHISOR'sSysems, ibr the licenscesand distributors, all modifications. mproverness developedor discoveredby FRANCSISEEor changes.and FRANCHISEEVscmployecsar agentsIn conaceticowith the frandised budness,without1myliabinry or obligationm the deve1npur thereoft B.2. The covennis crmtainedin this section5 shallbe construedasseverableand independentand shall be andsppBedconsistentlywith tts requiretacntsof reasonabknessnad interpreted equity.If an ar anyparSonof a coveranin this 8 is bcid unreasonableoramenfbreeable Section by a court,arNtradonpanelor otheragencybavingvalidjurisdic6on in which FRANCHISCR in a party,FRANCHISEB n decisionto agrees expressy tobe boundby any ksser covenamincludedwithin the teralsof ach greatercoveñnutthat impoãesibs anaxImum duty pmaitted by law, asif the 1cssersevenaidwere sbdedin, andmadea partof thisSectioriS. aeparate.ly 83 PRANC111SEE acknow)Edges that FRANCHISORshallhavethe right, in its sok discretion,to reducethe scopeof any covenant aetforth in this Section 8, or of any pottian or portions therent, without FRANCHISEE's consent,and · FRANCHISEEagreesto comply forthwith with any covenar¼nsinodified. GeneralTermumd Coudhicms -1b