Guidelines For Use of Trademark

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1 Guidelines For Use of Trademark Announced by Rexair LLC September 15, 2016

2 Rainbow Authorized Distributors Guidelines For Use of Trademark INTRODUCTION For 80 years Rexair, through its independent distributors, has been building a reputation for selling quality products, providing prompt and qualified service, caring for the consumer, and performing with the highest integrity. As a result of that building process, the word Rainbow has taken on new and significant meanings not only is it a trademark signifying the origin of the product, but it has also come to be identified with the wide variety of services provided by the company through its independent distributors. Those services include the pre-sale promotion of the product, the point-of-sale in-home demonstration, sale, delivery, and installation of the product, and warranty and other repair services. THREE UNIQUE SYMBOLS ONE CONSISTENT IMAGE Because of your distribution and product repair activities, it has always been necessary to advertise your sale and service of the Rainbow product. But because of your independent status and the fact that you do not own any rights to Rexair s exclusive Rainbow name, you have been limited in how you could use the word Rainbow. In effect, you can use the word Rainbow only to identify your activities, but not yourself or your business. Those necessities and limitations still prevail. But within those bounds, we have developed a distinctive way for you to identify your independent activities A way which will be yours alone, and available to no one other than Authorized Rainbow Distributors. While truly independent, we are nonetheless interdependent. The new symbols now stress both our independence and the mutuality of our goals for the future. The trademark Rainbow will continue to be the exclusive property of Rexair. But we shall grant you a non-exclusive license to use that mark in two distinctive logos to identify your sales and service activities. AUTHORIZED SERVICE LAST UPDATED September 9, :17 PM REXAIR LLC 1

3 CONFORMITY AND PROTECTION OF TRADEMARKS Rexair has, by maintaining uniform and high quality standards for products and services, established a reputation, demand and good will for its trademarks and service marks which the public associates with Rexair. It is essential to the maintenance of the high standards which the public has come to expect of Rexair and to the preservation of the integrity of the Rainbow trademarks or service marks and their good will that licensees adhere to uniform standards, procedures and policies. In addition, the more uniformity in use, and the more Rexair insists upon and enforces that uniformity, the greater the protection against use by those who have not been selected to receive the rights and benefits of such use. It also makes it easier for the ultimate consumer to find and identify those businesses providing sales and service relating to the Rainbow product. Thus, conformity benefits all of us Rexair, you and our valued customers. PROTECTION OF TRADEMARKS Your licensed use of the Rainbow trademark and service mark in unique symbols and logos by each person in the distribution network is conditioned upon your compliance with the rules and guidelines set forth in this policy. For Rexair to be able to protect the marks, and to exclude the use of them by non-licensed retailers, it must vigorously demand compliance by those who do have the benefit of such a license. Therefore, your compliance with these rules is a requirement for continued licensed use of the marks, and misuse of the marks is grounds for termination of your distributorship. RULES OF USE 1. Permitted Use. Registered General Distributors who purchase products from Rexair (RGDs) and any of their sub-distributors who execute the assurances reproduced later in this policy (we shall call those people covered by this policy Limited Licensees ) may use the marks to identify their sales activities and their service activities. But, under no circumstances may any distributor use the word Rainbow to identify themselves or the distributor s business. This basic rule will find its expression in all of the following rules. A breach of this basic rule by any RGD or any of the RGD s sub-distributors or any of their agents or representatives will be cause for termination of the RGD s Distributor Agreement and possible legal action to cause all affected persons or entities to cease using the Rainbow name in any manner. 2. Permitted Symbols. The only symbols, emblems and/or marks which may be used to identify any RGD or sub-distributor as an Authorized Rainbow Distributor are those set forth in this policy. a. This Authorized Distributor logo shall be used only in connection with a Limited Licensee s inhome sales activities and shall never be used on, in or in connection with or to otherwise identify the location or activities of any other business, such as a retail store or service facility. b. This Rainbow Service logo shall be used in connection with a Limited Licensee s aftersale service activities, such as to advertise the availability and location of the facilities providing such service to the Limited Licensee s customers. AUTHORIZED SERVICE 2 REXAIR LLC LAST UPDATED September 9, :17 PM

4 3. Rainbow as Part of Name. A distributor shall never use the word Rainbow as part of its corporate name or business name. If any RGD or any person or entity operating as a sub-distributor of an RGD is found to be using the word Rainbow in its business name, the Distributor Agreement with the responsible RGD may be terminated. Example 1: ABC Associates Rainbow Authorized Distributor Example 2: ABC Associates Rainbow Authorized Service Example 3: ABC Rainbow Company Rainbow Authorized Distributor 4. Use of Distributor s Name. Wherever one of the licensed logos is used on or in a Limited Licensee s business office or on printed matter, such as business forms, letterheads, recruiting or training materials, business cards, advertising and the like, the Limited Licensee s name must also appear in close proximity to such licensed logo. Version A Distributor Card: 5. Disclaimer. Whenever one of the licensed logos is used in advertisements, warranties, brochures or similar printed material intended for general dissemination to the public, such printed material must include at the bottom of the first page the following legend: Rainbow is the registered trademark of Rexair LLC, Troy, Michigan, USA. 6. Use only with Rexair Products. The logos may not be used in connection with the promotion or sale of any products other than Rexair products or services supplied to the owners or potential owners of such Rexair products. Nor may any distributor in any other manner whatsoever use the drawing power and good will of the Rainbow name to publicize and promote the sale of any other products. 7. Sale of Promotional Items. The use of any Rexairowned Rainbow trademark or service mark on any merchandise, such as promotional items or other goods for sale without the written permission of Rexair LLC is expressly prohibited. This includes all premiums, door-opening gifts, promotional items, packaging and the like which any distributor may wish to use in their own activities or sell to others. Limited Licensees are authorized to use Rexair s Trademarks consistent with the terms of the Trademark License issued to RGDs as part of their Rainbow Distributor Agreement, as that License may be amended from time to time. The Ultimate Cleaning Machine ABC Company 123 Town Street My Town, MI Version B Dealer Card: John Z. Doe Dealer ABC Company 123 Town Street My Town, MI LAST UPDATED September 9, :17 PM REXAIR LLC 3

5 9. White Page Telephone Directory Listings. Any distributor of Rainbow products may list their own name under the alphabetical listings according to the distributor s last name without securing written approval from Rexair. Such listing may, after their business or given name, include the words Rainbow Authorized Distributor. 125 DOCKS DON Dodt P 2506 Lancaster Doe DA Stoney Cr Doe John Rainbow Authorized Distributor 6789 Main Street Doe Raindy W. 12 Mile Signs. It is important for Rexair to insist on a quality image consistent with the Rainbow reputation for premium quality. Therefore, only Limited Licensees (RGDs and those of their sub-distributors who have executed certain assurances reproduced later in this policy) will be authorized to display the Rainbow name or the independent distributor logo on the exterior of their office. To obtain such written approval from Rexair, the distributor must comply with the following procedures: Prior to installing a sign containing the Rainbow name and independent distributor logo, the Limited Licensee must submit a request to Rexair by letter setting forth or enclosing the following information: Limited Licensees (RGDs and those of their subdistributors who have executed certain assurances reproduced later in this policy) may also have a listing under the white page caption for Rainbow Authorized Distributors or Authorized Rainbow Service. Such Limited Licensees may request a bold listing for such a caption through their local white page salesperson. RAINBOW VACUUM CLEANER Authorized Distributors: A. A picture or sketch of the exterior of the office; B. A photograph, sketch or map showing the location on the street in relation to adjacent businesses and building, and C. A description or photograph of the proposed sign, including size, wording, location and type of installation. 4 REXAIR LLC LAST UPDATED September 9, :17 PM

6 10. Yellow Page Listings. The use of the Rainbow name and the permitted logos in the yellow page directories are allowed under the following specifications: Any Limited Licensee (RGD or a sub-distributor who has executed those assurances reproduced later in this policy) may list their business telephone in the yellow pages under their own name, in the same manner as specified under rule 9 above. Such Limited Licensees may also insert a trade name listing in accordance with the following sample: It is permissible for Limited Licensees to place a display advertisement in their yellow pages. Such display advertising must comply with the following format and must precisely reproduce the Authorized Distributor logo and/or Rainbow Service logo as set forth in the samples and in accordance with the Guidelines set forth at the end of this policy. RAINBOW VACUUM CLEANER Authorized Distributors: It is also possible for one or a group of offices to place a trademark listing or a custom trademark listing in the yellow pages as long as the following formats are followed: RAINBOW VACUUM CLEANER SALES SERVICE & PARTS ACCESSORIES Authorized Distributors: RAINBOW VACUUM CLEANER Your Local Authorized Rainbow Distributor: Company Name (555) City, State SALES I SERVICE & PARTS I ACCESSORIES RAINBOWSYSTEM.COM 11. Outdoor Advertising. It is expressly prohibited for anyone to use any Rainbow name, mark or logo in any outdoor advertising on billboards and the like. 12. Temporary Display Booths. A Limited Licensee may use the Rainbow Authorized distributor logo on informational displays and booths at county and state fairs as long as the appearance of any such display upholds the quality image which Rexair is attempting to promote. Such use at flea markets, garage sales and other places where used or secondhand merchandise is sold is not permitted. SALES I SERVICE & PARTS I ACCESSORIES Authorized Distributors: LAST UPDATED September 9, :17 PM REXAIR LLC 5

7 13. Checks. Neither the Rainbow name nor either of the logos may be printed on checks. It is permissible for a Limited Licensee to include on checks the Limited Licensee s own business name followed by the words Rainbow Authorized Distributor or Rainbow Authorized Service. Caryn & Thomas Franks Rainbow Service 123 Town Street My Town, MI Distributor Letterhead. Limited Licensees are permitted to use on their letterhead only the Authorized Distributor logo. If so used, the distributor s name must be placed in close proximity to the logo. Under no circumstances may any Rainbow logo, the word Rainbow or the word Rexair be used on any letterhead in a manner which implies that the distributor is an employee or agent of Rexair LLC. Balboa Associates Rainbow Authorized Distributor 123 Toullane Hwy. Callais, MI Caryn & Thomas Franks 123 Town Street My Town, MI Pay to: Dollars Balboa Associates 123 Toullane Hwy. Callais, MI Recruiting Advertisements. Any distributor of Rainbow products is permitted to advertise for new dealers in any media. But, under no circumstances may a Rainbow distributor imply that the Rainbow Opportunity offers employment with Rexair LLC or guarantees a stated income or net profit. All ads must clearly identify the independent distributor responsible for placing the ad, and all advertising content must be truthful and factually accurate. 6 REXAIR LLC LAST UPDATED September 9, :17 PM

8 UNDERTAKING BY USER OF REXAIR TRADEMARKS Rexair LLC Troy, Michigan To whom it may concern: To induce you to grant me permission to use your registered Rainbow Trademark (as defined in the Permission section below) in accordance with Rexair s Guidelines for Use of Trademark, I make the following promises and representations: 1. I certify that: a. I make prompt and workmanlike service available to consumers who buy from my in-home dealers or otherwise, and proficiently demonstrate the proper care and use of the Rainbow vacuum cleaner to ultimate consumers, in their homes, whether those consumers have bought directly from me or from some independent agent of mine; and b. I shield and protect such consumers from unfair or deceptive acts or practices; and c. I supply such information to the Authorized Distributor named below as is necessary for that Authorized Distributor to live up to its responsibilities as a customer of Rexair, including but not limited to such sales reports or other information as may be required from the Authorized Distributor by Rexair; and d. I have a verifiable record of having provided prompt and workmanlike service in the repair of vacuum cleaners for a number of years sufficient to demonstrate stability and dependability; and e. I have a good reputation in the community in which I have been offering such repair or warranty services and sales of vacuum cleaners to the public; and f. I have had no involvement in the selling of used vacuum cleaners for new, the altering, defacing, covering or removal of serial numbers of any of the vacuum cleaners I have repaired or sold or otherwise dealt in, or the purchase or sale of vacuum cleaners which have had their serial number so mistreated; and g. I have no record of criminal conviction or civil judgment for fraudulent practices or violations of state consumer protection acts. 2. I have read, understand, and agree with Rexair s Guidelines For Use of Trademark, and understand that you can unilaterally withdraw permission for me to use the Rainbow Trademark at any time, with or without cause, including failure on my part to comply with the aforementioned Guidelines. 3. I understand and agree that permission flows to me through the Authorized Distributor named below, who is your customer and licensee of the Rainbow Trademark. 4. I understand and agree that I shall not, either during or after the term of my permission to use the Rainbow Trademark, do anything or assist any other party to do anything, which would infringe upon, harm, or contest the rights of Rexair in the Rainbow Trademark or in any other mark or name which incorporates any part thereof. I agree to promptly notify Rexair of any unauthorized use of the Rainbow Trademark. I acknowledge that Rexair shall have the sole right to bring infringement, unfair competition or other legal proceedings involving the Rainbow Trademark. 5. I understand and agree that any rights and goodwill that exist or may develop in the Rainbow Trademark are, and shall at all times remain, the sole and exclusive property of Rexair, and all use of Rainbow Trademark shall inure to the sole benefit of Rexair. I agree that nothing in this Undertaking shall give me any right, title or interest in or to the Rainbow Trademark, other than the right to use the Rainbow Trademark in accordance with this undertaking and Rexair s Guidelines for Use of Trademark, and agree that I will not attach the title of Rexair to the Rainbow Trademark and will not challenge the validity of this Undertaking. 6. I understand and agree that I may not include any part of the Rainbow Trademark in my business or corporate name and that I shall not license, register or purchase vehicles, fixtures, products, supplies or equipment, or perform any other activity or incur any obligation or indebtedness, except in my individual, corporate or other business name. 7. I understand and agree that in order to preserve the validity and integrity of the Rainbow Trademark, Rexair shall at all reasonable times during normal business hours have the right of entry and inspection of my business. 8. I understand and agree that any permission granted by Rexair and my right to use the Rainbow Trademark shall cease automatically and immediately if my contractual relationship with the Authorized Distributor ends for any reason, or if the Authorized Distributor s contractual relationship with Rexair ends for any reason. 9. I therefore agree that: a. If my agreement with the Authorized Distributor ends, or if the Authorized Distributor s agreement with Rexair ends, I shall: i. Immediately and permanently stop using in any advertising, sign, display, telephone directory LAST UPDATED September 9, :17 PM REXAIR LLC 7

9 ii. or listing, or printed material whatsoever any Rainbow Trademark; using any written reproduction or colorable imitation of the work Rainbow or Rexair, or engaging in any other activity or practice which would tend to indicate, suggest, or represent, either directly or indirectly, that I am part of Rexair s sales network or that I am authorized, certified, registered, or otherwise approved by Rexair to sell or service Rexair or Rainbow products; and Immediately take all steps and actions which are reasonably necessary or appropriate to comply with the foregoing, including, without limiting the generality thereof, instruction to all publishers of any telephone directory or listing not to renew, repeat, or insert any listing or advertisement using the name Rexair or any Rainbow Trademark in any manner inconsistent with the requirements of the above. b. IF I REFUSE OR FAIL TO COMPLY WITH ANY OF THE FOREGOING PROVISIONS, I SHALL REIMBURSE YOU ALL COSTS, ATTORNEYS FEES, AND/OR OTHER EXPENSES INCURRED BY YOU IN CONNECTION WITH THE ENFORCEMENT OF SAID PROVISIONS; PROVIDED, HOWEVER, THAT SUCH REMEDY PROVIDED HEREIN SHALL NOT BE EXCLUSIVE OF OTHER REMEDIES AVAILABLE TO YOU. I ACKNOWLEDGE THAT CONTINUING TO USE THE RAINBOW TRADEMARK AFTER THIS LICENSE ENDS IS A KNOWING VIOLATION OF REXAIR S TRADEMARK RIGHTS. Date: Subdistributor s Signature: Partner s Signature: AUTHORIZED DISTRIBUTOR S UNDERTAKING To induce you to permit the subdistributor named above to use the Rainbow Trademark which is licensed to me under the Rainbow Distributor Agreement in force between Rexair and me, I hereby make the following representations: 1(a) (g) of his representations to you. 4. I will immediately notify you if these statements become untrue, and shall cooperate fully with you to correct any problems which arise. Authorized Distributor s Signature: Date: PERMISSION TO USE RAINBOW TRADEMARKS Permission is hereby granted to the above-named Authorized Distributor, a licensee, to permit his subdistributor named above to use the Rainbow Trademark as defined below, in accordance with the Trademark License granted to the Authorized Distributor, and in compliance with applicable policies (including, but not limited to, Guidelines For Use of Trademark ) in force as announced or amended from time to time and at any time by Rexair LLC; provided, however, that Rexair shall hold the Authorized Distributor responsible for the subdistributor s compliance with all of these policies. As used throughout this document, including the Undertakings by the User of Rexair Trademarks and the Authorized Distributor, the term Rainbow Trademark shall refer only to those Rainbow trademarks, service marks, or distinctive Rainbow symbols, logotypes, emblems or commercial signatures, which are licensed to the above-named Authorized Distributor in accordance with policies in force as announced or amended by Rexair LLC from time to time and at any time, including the document known as Guidelines For Use of Trademark. Date: For REXAIR LLC, By: Date: 1. I certify that the statements above, signed by the above-named subdistributor, are true to the best of my knowledge. 2. I certify that the said subdistributor is within a reasonable distance from my main office so that I can reasonably monitor his/her activities. 3. I certify that said subdistributor operates in compliance with the statements made in paragraphs numbered 8 REXAIR LLC LAST UPDATED September 9, :17 PM

10 LOGO RATIOS There are four elements of the Rainbow logo. They are: a. the custom-designed character R, with a water drop at the top; b. the word Rainbow c. Authorized Distributor or Service identification; and d. the small R in a circle at the upper right edge of the R, signifying Federal registration of the mark. Here is an example showing the relationship of the four major elements for an independent Distributor. LAST UPDATED September 9, :17 PM REXAIR LLC 9

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