Document:

Retail Agreement

 Exhibit 10.39 
  
 RETAILER AGREEMENT 
  
 between 
  
 RENEWAL BY ANDERSEN CORPORATION 
  
 and 
  
 U.S. HOME
SYSTEMS, INC. 
  

  
 September 26, 2001 
  

  

					
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 Table of Contents 
  

					
	 	  	 	  	Page

	 1.
	  	 Your Business
	  	3
	 2.
	  	 Your Name
	  	3
	 3.
	  	 Products
	  	3
	 4.
	  	 Non-Residential
	  	3
	 5.
	  	 Suppliers
	  	4
	 6.
	  	 Primary Market Area
	  	4
	 7.
	  	 Limited Exclusive
	  	4
	 8.
	  	 Goals
	  	4
	 9.
	  	 Training; Staffing
	  	5
	 10.
	  	 Showroom(s); Distribution Center
	  	5
	 11.
	  	 Prices; Orders; Shipments
	  	5
	 12.
	  	 Credit
	  	6
	 13.
	  	 Nonagent
	  	6
	 14.
	  	 Term
	  	6
	 15.
	  	 Force Majeure
	  	9
	 16.
	  	 Intellectual Property
	  	10
	 17.
	  	 Confidential Information
	  	11
	 18.
	  	 Non-Competition
	  	11
	 19.
	  	 Financial Statements and Operating Information
	  	12
	 20.
	  	 Insurance
	  	12
	 21.
	  	 Inspection
	  	12
	 22.
	  	 Telephone
	  	12
	 23.
	  	 Limited Warranty
	  	13
	 24.
	  	 Service
	  	13
	 25.
	  	 Disclaimer of Other Warranties
	  	13
	 26.
	  	 Indemnification
	  	13
	 27.
	  	 Arbitration
	  	14
	 28.
	  	 Litigation
	  	14
	 29.
	  	 Expenses
	  	14
	 30.
	  	 Damages Limitation
	  	14
	 31.
	  	 Assignment
	  	15
	 32.
	  	 Entire Agreement; Amendment
	  	15
	 33.
	  	 Severability
	  	15

  

					
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 Table of Contents 
 (continued) 
  

					
	 	  	 	  	Page

	 34.
	  	 Notices
	  	15
	 35.
	  	 Waiver
	  	15
	 36.
	  	 Governing Law
	  	15
	 37.
	  	 Compliance with Laws
	  	16
	 38.
	  	 Acknowledgments
	  	16

  

					
	 APPENDIX A
	  	 Retailer Information
	  	A-l
	 APPENDIX B
	  	 Renewal by Andersen® Mission, Values and Objectives
	  	B-l
	 APPENDIX C
	  	 Authorized Trademarks, Service Marks and Trade Names
	  	C-l

  

					
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 RENEWAL BY ANDERSEN CORPORATION 
  
 RETAILER AGREEMENT 
  
 Renewal by Andersen Corporation, a Minnesota corporation (“We,” “Us,” “Our,” “Renewal”), welcomes U.S. Home Systems, Inc., a
Delaware corporation (“You,” “Your”), as a retailer of Renewal by Andersen® brand products for residential replacement and remodeling effective September 26, 2001. We agree to sell Renewal by Andersen® brand products to you as an authorized Renewal retailer in the primary market area
designated in Appendix A to this Retailer Agreement (“Agreement”). 
  
 RETAILER AND RENEWAL COMMITMENT 
  
 You represent the Renewal by Andersen® brand and products to the public. Therefore, it is essential to the success of Renewal by Andersen® and other retailers that you understand, embrace and promote both the letter and spirit of the Renewal by Andersen® Mission, Values and Objectives. A copy of the Renewal by Andersen® Mission, Values and Objectives is attached as Appendix
B. 
  
 You and Renewal can conduct our relationship with trust
and respect only if we work in an open, fair and cooperative manner. Both you and Renewal are dependent upon each other for maintaining this unique working relationship. 
  
 You therefore agree to adhere to the Renewal by Andersen® Mission, Values and Objectives in conducting your Renewal by Andersen® business, and to work jointly with Renewal, within the
framework identified in this Agreement, to accomplish the Renewal Mission as it relates to your Renewal by Andersen® business. You acknowledge that the success of Renewal, other retailers and our suppliers is dependent on you fulfilling this commitment. Consistent
with the Renewal Mission, you pledge to maintain the highest ethical standards in all activities. 
  
 You have presented Renewal with information regarding the qualification of your window and patio door division to be appointed a Renewal by Andersen® retailer. You and our window and patio door division
have been evaluated and found to satisfy Renewal’s standards. 
  
 You have also presented to Renewal a Marketing Area Plan (“MAP”), stating your proposal to develop and operate facilities in the specified primary market area to promote, sell and service Renewal by Andersen® brand products. Renewal has accepted this MAP.

  
 Your acceptance as a Renewal retailer by us confirms that you
have met our high standards as one of the limited number of businesses to be offered an opportunity and entrusted with significant responsibility for achieving the future success of the Renewal by Andersen®. Renewal by Andersen® brand products are a superior, customized replacement window and patio door product
line. We have developed a comprehensive method for marketing the product line on an installed basis and providing effective post-installation services for it (the “Renewal System”). The Renewal System includes unique 

  

					
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products, establishment and operation of specially designed retail facilities, visual image of employees and vehicles, advanced computer capability, and a
sales approach focused on accommodating customer concerns. 
  
 A
Renewal retailer sells Renewal by Andersen® brand
products to homeowners only on an installed basis, seeking the highest level of customer satisfaction and maintaining high ethical standards and integrity throughout the retailer’s dealings with any customer or potential customer. 

 
 The dedication of a Renewal retailer to the goal that each customer be
delighted after installation of Renewal by Andersen® products completes the positioning of Renewal by Andersen® as the obvious best solution for a homeowner in need of replacement windows or patio doors. Your entry into this Retailer Agreement affirms your commitment to help us realize the Renewal mission and our
commitment to work jointly with you toward that vital objective. 
  
 Thank you and welcome to the team! 
  

					
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 1. Your Business. You will establish and operate a business for the retail sale of Renewal by
Andersen® brand products in your primary market
area listed in Appendix A. You will maintain the showroom(s) and the distribution center for Renewal by Andersen® brand products listed in Appendix A. The showroom(s) and distribution center Listed in Appendix A are sometimes referred to in this Agreement as “premises”. Your rights and
obligations to sell Renewal by Andersen® brand
products are contained in this Agreement, the most recent edition of our “Business Operations Library” and any other written Renewal policies we provide to you setting forth the Renewal System; provided, however, that so long as you
remain engaged primarily in the remodeling business substantially as conducted on the date of this Agreement, the “Renewal System” and our “Business Operations Library” will for purposes of this Agreement mean only the materials
contained in the most recent editions of the following such manuals, full and complete copies of each of which have been provided to you prior to the date of this Agreement, as the same may be supplemented and revised from time to time in our
reasonable discretion: Product Installation; Service Procedures; Specifications & Technical; Parts and Accessories; and Technical Measurement. Subject to the foregoing, you will adhere to the Renewal System as we may modify it from time to time
at our reasonable discretion. You will conduct all other aspects of your Renewal business consistent with good professional practice and with the same level of commitment, effort and quality you employ in the conduct of your primary remodeling
business. 
  
 2. Your Name. In your business of
selling Renewal by Andersen® brand products you
will operate under the trade name set forth in Appendix A or such other trade name as we authorize in writing. The trade name will be the property of Renewal. You may not use “Renewal by Andersen” as part of your legal name. You will not
use any other primary or secondary trade name without our prior written consent which we may withhold, condition or withdraw at our discretion. We will not arbitrarily, capriciously or in bad faith withhold or delay our consent to allow you to use
any additional or substitute trade name(s) that do not include “Renewal by Andersen” (or any variation of that name) in connection with your remodeling business. We will not claim any ownership rights with respect to any trade name(s) that
you employ that do not contain “Renewal by Andersen” (or any variation of that name). 
  
 3. Products. The only window and patio door products which you will display at your showroom(s) and sell through your sales organization are Renewal by Andersen® replacement window and patio door products and any other products listed in
Appendix A. We will make the full Renewal by Andersen® replacement window and patio door product line available to you. We can, however, add to, remove from or modify the products in the Renewal by Andersen® product line from time to time at our discretion; provided, however, that any
such additions, removals and modifications will only apply to you to the extent that they apply to other Renewal by Andersen® retailers generally. Unless such changes reasonably relate to health, safety or compliance with legal requirements: (I) we will give you at least 30
days’ prior notice of such changes; and (ii) such changes not apply to any then outstanding purchase orders. Renewal by Andersen® brand products may be manufactured by us or others we designate. 
  
 You will sell Renewal by Andersen® replacement window and patio door products only on an installed basis to end-user residential customers purchasing for remodeling or replacement. You
will refrain from selling Renewal by Andersen® brand products as a wholesaler, on a stand-alone uninstalled basis, or for new residential construction. 
  
 4. Non-Residential. You must obtain our prior approval (which we will not
arbitrarily, capriciously or in bad faith withhold or delay) before proposing or soliciting any sale of Renewal by Andersen® brand products for commercial, institutional, governmental or any other non-residential buildings. 
  

					
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 5. Suppliers. We will maintain a list of authorized suppliers for accessories and materials accompanying
Renewal by Andersen® products and their
installation and a list of authorized suppliers for furnishings, building materials, uniforms and supplies for the establishment and operation of the showroom(s) and distribution center listed in Appendix A. You agree to purchase these items only
from the suppliers we have authorized unless you receive our prior approval (which we will not arbitrarily, capriciously or in bad faith withhold or delay) of another supplier in writing. 
  
 6. Primary Market Area. You agree to vigorously promote the sale of Renewal by Andersen® brand products throughout your primary market area
designated in Appendix A. You will sell Renewal by Andersen® brand products only for installation within your primary market area. You will install all Renewal by Andersen® products that you sell. You will forward to us any customer leads that you receive for installation of Renewal by Andersen® products outside your primary market area. 
  
 7. Limited Exclusive. In reliance upon your representations and
on your expressed commitment to the Mission, Values and Objectives of Renewal by Andersen®, and provided you remain in compliance with this Agreement, you will have the exclusive right to use the Renewal System for resale of Renewal by Andersen® brand products on an installed basis to end-user residential customers purchasing for
replacement or remodeling in your primary market area. We will use commercially reasonable efforts to preclude sales by any other Renewal retailer in your primary market area. 
  
 If you substantially (i.e., for this purpose at least 80 percent) meet your obligations under the MAP and this Agreement, then we
will not authorize any other Renewal by Andersen®
retailer to establish a Renewal by Andersen® retail
facility in your primary market area. If you fail to meet your obligations under the MAP and this Agreement then, in addition to other rights or remedies we may have, we may terminate this Agreement for failure of performance or restructure your
primary market area and reassign any areas appropriate in our judgment to achieve the maximum potential development of the primary market area. We will provide to you at least 90 calendar days’ prior notice of any change in your primary market
area or supplemental or alternative distribution in your primary market area of Renewal by Andersen® brand products on an installed basis to end-user residential replacement or remodeling customers. In the event of any such change in your primary market area or supplemental or
alternative distribution in your primary market, appropriate changes will be made to your MAP in the manner contemplated in Section 8, including adjustments to your unit commitments and goals. 
  
 8. Goals. You have presented and we have accepted your MAP, which is an
essential part of this Agreement. The MAP describes how you will develop your primary market area and fulfill your sales and service commitments. 
  

	 	a.	Initial Marketing Area Plan - You agree to develop your assigned primary market area according to the MAP. Your commitments for such development include, but are not limited
to: 

  

	 	(i)	a detailed implementation schedule for the primary market area, 

  

	 	(ii)	a detailed description of the number, location, type, size and opening date of Renewal facilities to be provided, and 

  

	 	(iii)	a statement of your legal and financial structure, including capitalization, line of credit and equity ownership. 

  

					
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	 	b.	Annual Marketing Area Plan - You also agree to fulfill the sales and service commitments described in the MAP as updated periodically in the manner described below. These
operational commitments include, but are not limited to: 

  

	 	(i)	Homeowner delight, 

  

	 	(ii)	Market development, 

  

	 	(iii)	Financial performance, 

  

	 	(iv)	Retail image, and 

  

	 	(v)	Training. 

  
 In order to maintain an effective working relationship, you agree to update your MAP annually, or more often if requested by either party (but in on event more that twice in any consecutive 12-month period), and
submit it to us for joint review. The process for updating MAPS will include a performance evaluation and any proposed modification to the prior MAP. If you and we agree that changes to the proposed MAP are appropriate, then you will make these
changes and then resubmit the MAP for acceptance by us at our discretion. 
  
 Your
performance of your obligations is essential to effectively and consistently represent the Renewal by Andersen® brand, and to build and maintain the reputation of
Renewal and other retailers. Therefore you agree to review with us your performance against the prior year’s MAP in your updated MAP. You and we will use this evaluation to attempt to identify areas in which improvements may be necessary or
desirable, and attempt in good faith to set goals for continuous improvement. 
  
 9. Training; Staffing. Your Renewal business will be managed by the individual(s) named in Appendix A or such other individual(s) as we approve in writing (such approval to not be withheld arbitrarily). You will employ
adequate sales, installation, service, administrative and support staff to conduct your Renewal business and the operations of each of your Renewal by Andersen® showroom(s) and distribution center listed in Appendix A in accordance with the Renewal System. 
  
 You will train your personnel as provided in our Business Operations Library and other
policies under the Renewal System. You will pay travel, lodging and meal expenses for your personnel to attend training sessions provided by us. If you request training at your location, you will pay travel, lodging and meal expenses of our
personnel. You will also reimburse us if we request for the costs of our personnel which we incur in training your personnel at your location. 
  
 10. Showroom(s); Distribution Center. You are responsible for purchasing or leasing the real estate and constructing or remodeling and
maintaining, equipping and furnishing the premises listed in Appendix A as the showroom(s) at which your Renewal by Andersen® retail business will be operated and any distribution center. The location, size, appearance, equipment, furnishings and displays of the showroom(s)
and distribution center are subject to our approval (which we will not arbitrarily, capriciously or in bad faith withhold or delay). 
  
 11. Prices; Orders; Shipments. The prices, payment terms and discounts, ordering, acceptance and shipment terms and procedures that apply to
your purchases of products from us will be those in our price and discount sheets, Business Operations Library and other policies that are in effect for you at the time. We can change our prices, payment terms and discounts, ordering, acceptance and
shipment terms and procedures at our discretion; provided, however, that any such changes will only apply to you to the extent that they apply to other Renewal by Andersen® retailers generally or to the extent they are permitted under Section 12 below. Unless such changes reasonably relate
to compliance with legal requirements: (I) we will give you at least 30 days’ prior notice of such changes; and (ii) such changes will not apply to any then outstanding purchase orders. We can allocate production and delivery of our products at
our reasonable discretion. We will make reasonable efforts to allocate production and deliveries of our products in a fair and equitable manner. 
  

					
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 12. Credit. Without limiting any rights we might otherwise have to reject orders or to withhold
shipments from you, we can do so if you are past due on any unpaid invoice that is not being contested in good faith. We will not arbitrarily, capriciously or in bad faith refuse credit or remove, reduce or place conditions upon any credit limit we
establish for you, cease accepting orders from you, or withhold or stop shipments for orders we already have accepted from you. 
  
 13. Nonagent. You are not an agent or other legal representative of us for any purpose. You are not granted any authority to assume or create
any obligation on our behalf. This Agreement does not create a legal partnership, joint venture, franchise or similar arrangement between you and us, and, as permitted by Minnesota Statutes section 80C.21 and similar provisions in the laws of any
other states, you waive the application of any laws concerning such arrangements. In particular, it is our objective to refrain from charging you any amount deemed to be a franchise fee under any state franchise law or the Federal Trade Commission
Franchise Rule which would be otherwise applicable to this Agreement. Any such amount inadvertently charged to you will be refunded to you by us. 
  
 14. Term. This Agreement will take effect as of the date first above written and will continue in force for an initial term ending on
December 31, 2006, subject to earlier termination as provided below. This Agreement may be terminated at any time in accordance with any of the following: 
  

	 	a.	Either you or we can immediately terminate this Agreement and you as a Renewal retailer by giving notice to the other party should the other party file a petition of any type as to
its bankruptcy, be declared bankrupt, become insolvent, make an assignment for the benefit of creditors, or go into liquidation or receivership. 

  

	 	b.	Either you or we can immediately terminate this Agreement and you as a Renewal retailer for cause by giving the other party notice. Cause includes, but is not limited to, a material
breach by a party of any provision of this Agreement or, except as otherwise described in this Agreement, requirements of the Renewal System. 

  
 By way of example only, and not as a limitation, any of the following conduct by you, relating to one or more of your premises or otherwise, constitutes
cause for termination by us of this Agreement and you as a Renewal retailer, whether or not the conduct breaches an express provision of this Agreement or, subject to the limitations set forth in this Agreement, any requirement of the Renewal
System: 
  

	 	(i)	You fail to pay any amount owing to us for any of your obligations of any kind when payment is due, other than amounts being contested in good faith, for a period of 15 days after
we notify you of the delinquency (provided, however, that we will only be required to give you such notice one time in any 12-month period). 

  

	 	(ii)	You fail to substantially (i.e., for this purpose at least 80 percent) meet the sales and customer satisfaction commitments and goals that were set forth in your MAP.

  

	 	(iii)	You fail to comply, in any material respect, with our directions concerning the use of our trademarks, service marks, and trade names in violation of Section 16 or fail to satisfy
any of your other obligations set forth in that section. 

  

					
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	 	(iv)	You or other entities or persons referred to in Section 17 willfully or negligently disclose or improperly use our confidential information, including any information concerning the
Renewal System, in violation of Section 17. 

  

	 	(v)	The continuance or occurrence of any of the following conduct after notice advising you of the conduct and your failure to remedy the concerns raised in the notice prior to the
expiration of any reasonable cure period (in no event to exceed 30 days) that we set forth in the notice: 

  

	 	a)	You fail, in any material respect, to maintain any premises in a clean, attractive manner and, subject to the limitations set forth in this Agreement, in compliance with the Renewal
System. 

  

	 	b)	You suffer or permit, voluntarily or involuntarily, any right of possession as lessee, sublessee or otherwise of the premises to be terminated prematurely for any cause, but only if
such termination results in a material interruption in your ability to do business. 

  

	 	c)	Any judgments aggregating in excess of $50,000 against you or any federal, state or local tax lien in excess of $50,000 against any of the premises remains unsatisfied or unbonded
of record in excess of thirty days. 

  

	 	d)	You sell window or patio door products not approved by us or you sell Renewal by Andersen® products to customers not permitted by us in violation of Sections 3, 4, 5 or 6 or fail to satisfy, in any material respect, any of your other
obligations set forth in those sections. 

  

	 	e)	You or other entities or persons referred to in Section 18 participate or acquire any interest in any other window or patio door business in violation of that section.

  

	 	f)	You fail, in any material respect, to furnish us the financial statements or operating information required by Section 19 or you fail, in any material respect, to maintain the
insurance required by Section 20. 

  

	 	g)	You do not permit, in any material respect, us, our agents or representatives to inspect any of the premises as required by Section 21. 

  

	 	h)	You fail, in any material respect, to fulfill your service obligations set forth in Section 24. 

  

	 	i)	You fail, in any material respect, to comply with applicable laws, rules, regulations and ordinances as required by Section 37. 

  

	 	j)	 You willfully make any misrepresentation or negligently or otherwise make any material misrepresentations to us concerning your sales activities, your adherence to
the requirements of the 

  

					
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Renewal System, or your acquisition, ownership or lease of any of the premises. 

  

	 	k)	You engage in conduct (whether criminal or not) which materially reflects unfavorably upon the operation and reputation of any authorized Renewal retailer, Renewal by Andersen® products or the Renewal System, including, without
limitation, conduct prohibited in the Business Operations Library, to the extent that it applies to you at the time. 

  

	 	l)	You fail to use your best efforts to conspicuously and in good taste, display the Renewal by Andersen® name and logo on your vehicles, uniforms, stationery, and sales and marketing materials which is employed in connection with your sales, marketing, installation and servicing of Renewal by Andersen® products. 

  
 By way of example only, and not as a limitation, our repeated failure to
furnish goods and services to you in accordance with the terms of this Agreement (after receipt of written notice from you detailing our nonperformance and allowing us a reasonable period of time not less than 30 days to substantially remedy the
nonperformance) constitutes cause for termination by you of this Agreement. 
  

	 	c.	We can immediately terminate this Agreement and you as a Renewal retailer by giving you, or your transferee or assignee, notice if you did not provide the prior notice to us of such
an assignment or delegation as required under Section 31. 

  

	 	d.	Either party can terminate this Agreement and you as a Renewal retailer by giving the other party notice if, pursuant to Section 15, an event or condition of Force Majeure releases
the other party from the performance of any of its obligations under this Agreement for a period of 180 days or more. 

  

	 	e.	This Agreement and your position as a Renewal retailer will terminate automatically effective 90 days after we notify you of a decision at our discretion to entirely abandon or
terminate the Renewal System. 

  

	 	f.	Either party can terminate this Agreement and you as a Renewal retailer by giving the other party 180 days’ prior notice if you and we are unable to agree on future annual
commitments for your sales and customer satisfaction pursuant to Section 8. 

  

	 	g.	We can terminate this Agreement and you as a Renewal retailer by giving you, or your transferee or assignee, 180 days’ prior notice if we do not affirmatively consent in
writing to the assignment or delegation under Section 31. So long as during the term of this Agreement and at the date of your notice you have complied, in all material respects, with your obligations under this Agreement, have paid or satisfied all
monetary obligations then owing by you to Renewal, and guarantee the assignee’s or delegee’s performance under the Agreement through the current term (as well as post termination obligations), then we will not arbitrarily, capriciously or
in bad faith withhold or delay our consent, taking into account the totality of the circumstances, including, but not limited to, our assessment of the proposed owners’/controlling persons’ (i) readiness, willingness and ability, financial
and otherwise, to comply with this Agreement and (ii) actual or potential conflicts of interest. 

  

					
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	 	h.	We and you can terminate this Agreement by mutual written consent. 

  

	 	i.	You may terminate this Agreement by giving written notice to us. The termination will be effective 180 days after we receive the notice, unless otherwise mutually agreed upon in
writing. 

  
 Any other agreement between you and us concerning your
being a Renewal retailer at a location other than the premises listed in Appendix A will automatically terminate effective at the time of expiration or termination for any reason of this Agreement unless we notify you to the contrary in writing
prior to the expiration or termination of this Agreement. 
  
 During the 180-day
period following notice of termination under Section 14(f) or 14(g): (i) we reserve the right to terminate this Agreement and you (or your purported successor or assign) as a Renewal retailer sooner if permitted under other provisions of this
Agreement; and (ii) if the sole or principal reason for termination was and remained on account of Section 14(f) or 14(g) or by you for cause, then we will not during that 180-day period grant any person whose primary business is remodeling the
right to resell Renewal by Andersen® brand products
on an installed basis to end-user residential customers purchasing for replacement or remodeling in your former primary market area. 
  
 Termination or expiration of this Agreement will not release either party from the obligation to make payment of all amounts then or thereafter due and payable. Upon
termination or expiration of this Agreement, we will have the right, subject to the limitations set forth in this Agreement, to take such actions as we deem reasonably necessary or desirable to maintain continuous operation and management of a
Renewal by Andersen® business in the primary market
area defined in Appendix A, and you will have the right and obligation to complete open sales contracts. 
  
 If you cease to be a Renewal retailer and this Agreement terminates or expires in a manner permitted by this Agreement, then neither you nor we will be liable to the other party for any compensation, loss, recoupment
or damage, whether actual, indirect, incidental, consequential, special, punitive or otherwise, on any contract, warranty, tort, negligence, strict liability, antitrust, RICO or any other legal basis, for or related to any termination or expiration
of this Agreement and your ceasing to be a Renewal retailer. 
  
 The rights and
obligations in this Agreement which by their terms or clear intent extend beyond the termination or expiration of this Agreement, including, without limitation, Section 13. Nonagent, Section 14. Term, Section 15. Force Majeure, Section 16.
Intellectual Property, Section 17. Confidential Information, Section 18. Non-Competition, Section 22. Telephone, Section 23. Limited Warranty, Section 25. Disclaimer of Other Warranties, Section 26. Indemnification, Section 27. Arbitration, Section
28. Litigation, Section 29. Expenses, Section 30. Damages Limitation, Section 32. Entire Agreement; Amendment, Section 33. Severability, Section 35. Waiver, Section 36. Governing Law, and Section 38. Acknowledgments, will survive termination or
expiration of this Agreement, and will remain in full force and effect. 
  
 15.
Force Majeure. “Force Majeure” is any event or condition, not existing as of the effective date of this Agreement, not reasonably foreseeable as of such date and not reasonably within the control of either party, which prevents
in whole or in material part the performance by one of the parties of its obligations under this Agreement or which renders the performance of such obligations so difficult or costly as to make such performance commercially unreasonable. Without
limiting the foregoing, the following will constitute events or conditions of Force Majeure: embargoes, quotas, transportation delays, acts of state or governmental action, riots, disturbance, war, strikes, lockouts, slowdowns, prolonged energy, raw
material, supplies or labor shortages, epidemics, fire, flood, hurricane, typhoon, earthquake, lightning and explosion. 
  

					
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 Upon giving notice to the other party, a party affected by an event of Force Majeure will be released without any
liability on its part from the performance of its obligations under this Agreement, except for the obligation to pay any amounts due and owing under this Agreement, but only to the extent and only for the period that its performance of such
obligations is prevented by the event of Force Majeure. Such notice must include a description of the nature of the event of Force Majeure, its cause and possible consequences. The party claiming Force Majeure will promptly notify the other party of
the termination of such event. 
  
 During the period that the performance by one
of the parties of its obligations under this Agreement has been released by reason of an event of Force Majeure, the other party may suspend the performance of all or part of its obligations to the extent that such suspension is commercially
reasonable. Nothing in this Section 15 will extend the limited exclusivity period in Section 7 or the expiration date in Section 14. 
  
 16. Intellectual Property. We grant to you the non-exclusive right to use the trademarks, service marks and trade names set forth in Appendix B, and any
others we subsequently designate in writing, but only during the term of this Agreement, and only in connection with the performance of your duties under this Agreement. You will also comply with the following conditions: 
  

	 	a.	You agree to comply with all reasonable written directions that may from time to time be given to you by us as part of the Renewal System or otherwise relating to the use of our
trademarks, service marks, and trade names. You will obtain our prior approval of your usage of our marks and names and cease any usage of them to which we reasonably object in writing. You will notify us of any objections by others to your usage of
our marks and names. 

  

	 	b.	All intellectual property rights relating to Renewal by Andersen® products or the Renewal System, including all trademarks, service marks, trade names, copyrights, patents, mask works, trade secrets and other
intellectual property (together, the “Intellectual Property”), are and will remain the property of Renewal. 

  

	 	c.	You will not use or register any Internet domain name containing any of our trademarks, service marks or trade names. You will submit to Renewal for approval in advance true and
complete copies of all World Wide Web pages which contain or refer to any Intellectual Property, and will not use such Intellectual Property on your Web site without such approval. If we request, you will not arbitrarily, capriciously or in bad
faith refuse to include on your Web site such links to Renewal’s Web site (if any) or such other sites as we may specify. 

  

	 	d.	You will promptly inform us of any action or conduct of any person that you become aware of which may infringe upon any of our Intellectual Property rights. We will have the
discretion whether to take legal action against any such infringement. Any damages or other monies recovered on account of such infringement, whether by judgment, settlement or otherwise, will belong exclusively to us. You will cooperate fully with
us in connection with any legal action taken by us with respect to any such infringement. We will reimburse any reasonable out-of-pocket expenses incurred by you in connection with such cooperation. 

  

	 	e.	Upon the termination or expiration of this Agreement, you will immediately discontinue all use of any of our Intellectual Property. 

  

					
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	 	f.	If we request, any intellectual property you may develop in the course of your performance of this Agreement which relates to Renewal by Andersen® products or the Renewal System will become the property of Renewal. At our
request from time to time, you will assign without additional payment by us any or all such trademarks, service marks, trade names, copyrights, patents, mask works, trade secrets and other intellectual property to Renewal and agree, at our request
from time to time, to execute any formal assignments or other documents as we may request to effect such assignment. 

  
 17. Confidential Information. You and your owners, directors, officers, employees, agents and representatives will use our confidential or proprietary
information which you or they have or receive only for the purpose of your performing as a Renewal retailer under this Agreement, and you and they will keep the information confidential except as necessary for that purpose. Similarly, we and our
owners, directors, officers, employees, agents and representatives will use any of your confidential or proprietary information which we or they have or receive only for the purpose of your performing as a Renewal retailer under this Agreement, and
we and they will keep the information confidential except as necessary for that purpose. A party may disclose the other party’s confidential or proprietary information to such party’s workers, agents and representatives, but only on a
need-to-know basis and only after obtaining reasonable assurances that such workers, agents and representatives will treat the information as confidential or proprietary. Upon any expiration or termination of this Agreement you and they will cease
using our confidential or proprietary information and we and they will cease using your confidential or proprietary information, and we both will promptly upon request return to the other any such information in the other’s possession or
control. 
  
 A party’s confidential or proprietary information is any
nonpublic information concerning such party including, but not limited to, information relating to research, product development, manufacturing, sales, marketing, administration and finances. This information is confidential or proprietary
information regardless of its form, e.g. oral, written, electronic, or other, and whether or not it is labeled as “confidential.” As used in this Agreement, the term “confidential information” or the term “proprietary
information” does not include any information which a party obtains from the other which (i) is available to the public as of the date of this Agreement, (ii) which becomes available to the public after the date of this Agreement except to the
extent that its publication represents a breach of this Agreement, or (iii) becomes available to a party after the date of this Agreement from a source which is not bound by a confidentiality obligation to the other party. In the event that a party
is requested pursuant to, or required by, applicable law, regulation or legal process to disclose any of the other party’s confidential or proprietary information, the disclosing party will notify the other party promptly so that such other
party may seek a protective order or other appropriate remedy. 
  
 Our
confidential or proprietary information includes our information and that of our affiliates and third parties concerning or relating to us or to Renewal by Andersen® products or the Renewal System. Any lists or data you prepare as a Renewal retailer relating to customers or customer
leads will be owned jointly by you and us and will not be considered confidential or proprietary information of the other party for purposes of this Section 17. 
  

18. Non-Competition. Except as otherwise provided in this Agreement, during the term of this Agreement, you will not without our prior consent (which we
will not arbitrarily, capriciously or in bad faith withhold or delay), either alone or in any other capacity directly or indirectly participate in or acquire any beneficial interest in or relating to any business which engages in the manufacture,
sale, promotion, installation or servicing of window or patio door products within your primary market area. If and to the extent that you obtain non-competition covenants from your directors, officers and key management employees during the term of
this Agreement in connection with your remodeling business, you will ensure that those covenants expressly cover your Renewal by Andersen® business and that 

  

					
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Renewal is an express third party beneficiary of such covenants with respect to the Renewal by Andersen® business. 
  
 19. Financial Statements and Operating Information. You will provide to us operating information, including
customer lists or customer data relating to sales, marketing, installation and servicing of Renewal by Andersen® products, at such times and in such forms as we may reasonably request. As part of our credit review process, we may request financial statements from time to time, which you agree to
provide; provided, however, that we will limit our requests for financial statements to no more than twice in any 12-month period. Failure to prepare and provide any financial statements within a reasonable period of time after receipt of a
written request may affect any credit determination made by us under Section 12. We will use the financial statements you provide only for purposes relating to this Agreement and your performance as a Renewal retailer, and will keep your financial
statements confidential except for such uses. 
  
 20.
Insurance. While you are a Renewal retailer, you will acquire and maintain in effect worker’s compensation insurance prescribed by law in the state or states in which your primary market area is located and
employer’s liability insurance with a $5 million minimum limit. You will also acquire and maintain in effect other insurance as may be required by law and such other insurance in such amounts and against such hazards as is customary in the case
of reputable firms engaged in the same or similar business and similarly situated, including, without limitation, the following insurance coverages: 
  

	 	a.	Comprehensive general liability insurance, including product liability coverage, in a form approved by us with a combined single limit of $3 million for bodily injury and property
damage, per occurrence; and 

  

	 	b.	All such insurance as may be required by the terms of any purchase or lease agreement for any of the premises listed in Appendix A. 

  
 All insurance policies will name Renewal as an additional insured. All insurance policies
will include a provision prohibiting cancellations or material changes to the policy until thirty calendar days’ written notice has been given to us. All insurance will be placed with a reputable insurance company. You will furnish us from time
to time with certificates of insurance evidencing your maintenance of the above insurance coverages. 
  
 Renewal will carry you as an additional insured on its comprehensive liability and product liability coverages, will provide you with certificates of insurance and will require its carriers to issue endorsements
obligating themselves to provide you with not less than 30 days’ advance notice of expiration, cancellation or material change in terms of coverage. 
  
 21. Inspection. We and our agents or representatives will have the right to inspect each of the premises listed in Appendix A and your books
and records which relate to your performance under this Agreement and observe your manner of operating the premises at all reasonable times upon advance notice (at least 48 hours in the absence of an emergency) to ensure that your operation and
management of the premises is in compliance with this Agreement and with the Renewal System. You will maintain complete and accurate books and records concerning your performance in accordance with the Renewal System. 
  
 22. Telephone. You will subscribe to an adequate number of
telephone lines and other communication services for your customers and marketing response efforts (e.g., voice, facsimile and data transmissions). You will provide the right for us to acquire the primary and advertised line(s) and

  

					
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services (including numbers and domain names and addresses) upon any expiration or termination of this Agreement. 
  
 23. Limited Warranty. We will provide to the owner of each
property at which you install Renewal by Andersen®
products pursuant to this Agreement a Limited Warranty which we may modify from time to time at our discretion. The Limited Warranty will include coverage for installation of Renewal by Andersen® products. Any claim on such warranty with respect to your installation of Renewal by Andersen® products will be solely your responsibility, and you may not charge the customer for your service or repair work pursuant to that warranty. We will not
arbitrarily, capriciously or in bad faith refuse to permit you to issue an extended limited warranty program covering your installation services so long as we review in advance the written program and so long as that program at a minimum makes clear
that the extended warranty will be your sole responsibility. 
  
 24.
Service. While this Agreement is in effect you will service and repair any installation you make of Renewal by Andersen® products so that it meets our standards and fulfills the terms of any warranty we have provided to the owner of the property. In performing service and
repair work you will utilize materials and parts and follow procedures reasonably prescribed by us. We will reimburse you for providing any service or repair work which you are required to provide under this Section 24 in accordance with the service
reimbursement policy of the Renewal System. 
  
 Service and repair work which you
perform which is not covered by our warranty will be at your expense but you may establish such charges to the owner of the property for the work that you determine at your discretion. We may elect to provide service and repair for any installation
in which case we will bear the cost and may establish charges to the owner. Service or repair we provide pursuant to our Limited Warranty with respect to your installation or repair services will be your responsibility as provided in Section 23, and
you will reimburse us in accordance with the service reimbursement policy of the Renewal System. In the absence of an emergency, we will not perform service or repair work that is otherwise your responsibility unless you have failed to perform such
services in a timely manner. 
  
 25. Disclaimer of Other
Warranties. EXCEPT FOR THE LIMITED WARRANTY REFERRED TO IN SECTION 23 AND THE ACKNOWLEDGMENTS IN SECTION 38, NEITHER PARTY MAKES ANY EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES
IMPLIED BY LAW OF MERCHANT ABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE PRODUCTS PURCHASED AND SOLD UNDER THIS AGREEMENT OR ANY SERVICES CONTEMPLATED BY OR OTHER PROPERTY DELIVERED PURSUANT TO THIS AGREEMENT, AND ALL SUCH
REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED AND EXCLUDED. 
  
 26. Indemnification. You will defend, indemnify and hold us harmless from any liability, loss, damage or expense, including reasonable attorneys’ fees, from any claims or causes of action for damage or
injury to persons or property arising in connection with your performance of this Agreement or your acts or omissions as a Renewal retailer, including, without limitation, your installation of any of our products. We will defend, indemnify and hold
you harmless from any liability, loss, damage or expense, including reasonable attorneys’ fees, from any claims or causes of action for damage or injury to persons or property arising in connection with our performance of this Agreement or our
acts or omissions, including, without limitation, claims of third parties that the proper exercise by you of the non-exclusive license to certain intellectual property granted to you under Section 16 infringes on any trademark, service mark, trade
name, copyright or other proprietary rights of such third party. The party seeking to be indemnified will promptly notify the other party of any claim in writing, tender to the other party the right to defend such claim at such other party’s
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defending or settling the claim. A party will not be indemnified under this Section 26 for any claim settled without the other party’s prior written
consent (which may not be unreasonably withheld). The indemnified party may participate in the defense through its own counsel at its expense. 
  
 27. Arbitration. If there is any dispute, controversy, claim or cause of action between you and us arising out of or relating to this
Agreement, including the termination thereof, its performance, or your being a Renewal retailer, or the rights or obligations of the parties (together, a “Dispute”), you and we will meet together in an effort to resolve the Dispute. If you
and we are unable to resolve the Dispute through negotiation, either party may request that such Dispute be resolved by binding arbitration in St. Paul, Minnesota, by three arbitrators in accordance with the Commercial Arbitration Rules of the
American Arbitration Association then in effect. If both parties agree to arbitrate the Dispute, no legal action may be commenced or continued thereafter in court by either you or us to resolve the Dispute. Judgment may be entered on the
arbitrators’ award in any court having competent jurisdiction. This Section 27 does not limit the ability of either party to commence or continue litigation except as provided in any agreement between the parties to arbitrate a Dispute. The
running of any statute of limitations is not affected by this Section 27. 
  
 28. Litigation. You consent to the personal jurisdiction of the state and federal courts in Minnesota in connection with any Dispute between you and us, on any contract, warranty, tort, negligence, strict
liability, antitrust, RICO or any other legal basis. You waive your right to argue that the court in which any such action or proceeding is brought is not convenient. This Section 28 does not prevent us from bringing any action or proceeding against
you or your property in the courts of any other jurisdictions. 
  
 29.
Expenses. If we assert a claim or cause of action, including a counterclaim, against you in connection with any Dispute and we do not prevail on that claim or cause of action, we will reimburse you for all reasonable costs, expenses and
fees, including attorneys’ fees, you incurred in defending against our claim or cause of action. If you assert a claim or cause of action, including a counterclaim, against us in connection with any Dispute and you do not prevail on that claim
or cause of action, you will reimburse us for all reasonable costs, expenses and fees, including attorneys’ fees, we incurred in defending against your claim or cause of action. A party prevailing as to any claim or cause of action, including a
counterclaim, asserted by that party will bear its own fees, costs and expenses except as otherwise provided by law. The allocation of costs, expenses and fees set forth in this Section 29 will be applicable whether a claim or cause of action is
asserted in arbitration or litigation in court. 
  
 30. Damages
Limitation. 
  

	 	a.	DAMAGES SOUGHT BY EITHER PARTY AGAINST THE OTHER PARTY IN CONNECTION WITH ANY DISPUTE (AS DEFINED ABOVE), WHETHER BASED ON CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY,
ANTITRUST, RICO OR OTHERWISE, WILL BE LIMITED TO DIRECT DAMAGES. FURTHER, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY, AND NEITHER PARTY WILL SEEK TO RECOVER OR ENFORCE A JUDGMENT AGAINST THE OTHER PARTY, FOR:

  

	 	(i)	INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, DAMAGES RELATING TO LOSS OF INVESTMENT, INDEBTEDNESS, LOSS OF FINANCING, LOSS OF SALES OR
PROFITS, OR BUSINESS INTERRUPTION, DISCONTINUANCE OR TERMINATION, OR 

  

					
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	 	(ii)	PUNITIVE, TREBLE OR OTHER DAMAGES IN EXCESS OF DIRECT DAMAGES, 

  
 WHETHER THE UNDERLYING DISPUTE IS BASED ON CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY, ANTITRUST, RICO OR OTHERWISE, AND EACH PARTY WAIVES ANY
CLAIM AGAINST THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL AND SPECIAL DAMAGES AND FOR PUNITIVE, TREBLE OR OTHER DAMAGES IN EXCESS OF DIRECT DAMAGES. 
  

	 	b.	THIS SECTION 30 DOES NOT APPLY TO ANY DISPUTE BY CONCERNING A PARTY’S RIGHTS IN ITS CONFIDENTIAL OR PROPRIETARY INFORMATION, IN ITS INTELLECTUAL PROPERTY (AS DEFINED ABOVE), OR
IN THAT OF ITS AFFILIATES. 

  
 31.
Assignment. You cannot assign or delegate, voluntarily, involuntarily or by operation of law, your rights and obligations under this Agreement unless you give us at least 60 days’ prior notice in each instance. We can
assign or delegate any of our rights or obligations to our present and future affiliates from time to time in whole or in part without your consent. For purposes of this Agreement, an assignment includes a change in ownership or control of your
entity, your Renewal by Andersen® business, or your
remodeling business. 
  
 32. Entire Agreement; Amendment.
This Agreement and our written policies setting forth the Renewal System, including our Business Operations Library, provided by us to you constitute the entire legally binding agreement between you and us concerning your being a retailer for
our products and the rights and obligations of you and us concerning your Renewal by Andersen® dealership. All prior and contemporaneous agreements and discussions between you and us, whether oral or written, are superseded by this Agreement and are null and void. This Agreement
can only be amended by a statement in writing signed by you and a duly authorized officer on behalf of Renewal. We can change the Renewal System and our policies, including Business Operations Library and other written policies relating to the
System, and adopt new policies from time to time at our discretion without your consent and without giving you prior notice. If there is any conflict between this Agreement and any of our current or subsequent policies, including Business Operations
Library, this Agreement will govern. 
  
 33.
Severability. Each provision of this Agreement will be interpreted so as to be valid under applicable law. If any provision of this Agreement is found invalid, the provision will be ineffective to the minimum extent necessary to
make it valid under applicable law without invalidating the remainder of that provision or any other provisions of this Agreement. 
  
 34. Notices. All notices and consents required to be given by this Agreement will be given in writing by facsimile (with confirmation of
transmission), by personal delivery, or by United States registered or certified mail, postage prepaid, return receipt requested, to the parties at the addresses set forth in Appendix A or to another address which a party designates by notice to the
other party. All notices will be effective upon delivery to the designated address. 
  
 35. Waiver. No failure or delay by either you or us to assert any right or remedy under this Agreement will be a waiver of that right or remedy if the circumstances giving rise to the right or remedy continue or
are repeated. No waiver will be effective unless given in writing. 
  
 36.
Governing Law. This Agreement, the legal relationship between you and us and any Dispute will be governed by and construed in accordance with the internal laws of the State of Minnesota (without 

  

					
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regard to the laws of conflict of any jurisdiction) as to all matters, including, without limitation, validity, interpretation, liability, litigation,
performance and remedies. 
  
 37. Compliance with Laws.
You agree to comply in all material respects with all laws, rules, regulations and ordinances applicable to your performance of this Agreement, including, without limitation, obtaining any necessary licenses, permits, bonding or
authorizations. 
  
 38. Acknowledgments. You
acknowledge that: 
  

	 	a.	At the end of the initial term of this Agreement, you will have the option to renew the business for the primary market area for one additional five (5) year term, provided the
following conditions have been met: 

  

	 	(i)	You have given Renewal written notice at least 180 days prior to the end of the term of this Agreement of your commitment to renew your business of selling Renewal by
Andersen® brand products for the primary
market area listed in Appendix A. 

  

	 	(ii)	During the term of this Agreement and at the expiration of this Agreement you have fulfilled in all material respects your commitment to the Renewal mission and have complied in all
material respects with your obligations under this Agreement. 

  

	 	(iii)	All monetary obligations then owing by you to Renewal have been paid or satisfied prior to the end of the term of this Agreement. 

  

	 	(iv)	You have agreed that your business will reflect our then-current image, decor and specifications. 

  

	 	(v)	You agree to execute and comply with the then-current standard Retailer Agreement then being offered to new Retailers by Renewal which may contain terms, conditions and economics
that vary in substance from the terms, conditions and economics of this Agreement; provided, however, that both parties agree to negotiate in good faith to reach agreement with respect to modifications to that standard Retailer Agreement
consistent with the nature and extent of the modifications negotiated with respect to this Agreement. 

  

	 	b.	No representation has been made by us to you as to your future profitability as a Renewal retailer or your success in the sale of Renewal by Andersen® products. 

  

	 	c.	No future agreement or offers of agreement for additional Renewal by Andersen® showrooms or primary market area, other than this Agreement concerning the showroom(s) and primary market area listed in Appendix A, have been promised
or made to you. 

  

	 	d.	This Agreement is only with Renewal by Andersen Corporation, a subsidiary of Andersen Corporation. None of Andersen Corporation, Andersen Windows, Inc. or any other present or
future affiliates of Renewal by Andersen Corporation is subject to any restrictions or limitations contained in this Agreement or has any obligations or liabilities to you under this Agreement. 

  

					
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 Please show your agreement with the above provisions by signing this Agreement and returning it to us. 
  

									
	 Agreed:
	 	 	 	Accepted:
			
	U.S. HOME SYSTEMS, INC.	 	 	 	 RENEWAL BY ANDERSEN CORPORATION

					
	BY	 	 /s/ Murray Gross
	 	 	 	BY	 	 /s/ Craig Evanich

	 	 	
	 	 	 	 	 	

	 	 	 (SIGNATURE)
	 	 	 	 	 	 (SIGNATURE)

					
	 NAME:
	 	Murray Gross	 	 	 	 NAME:
	 	 Craig Evanich

	 	 	 (PRINT OR TYPE)
	 	 	 	 	 	 
					
	 TITLE:
	 	 President and CEO
	 	 	 	 TITLE:
	 	 General Manager

  

					
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 APPENDIX A 
  

TO 
  
 RENEWAL BY ANDERSEN CORPORATION 
  
 RETAILER AGREEMENT 
  

  
 Retailer Information 
  

  

	1.	Authorized Trade Name of Retailer: 

  
 “Renewal by Andersen® of Los Angeles 
  

	2.	Primary Market Area of Retailer: 

  
 See attached list of counties and zip codes: 
  

	3.	Showroom(s) of Retailer: 

  
 Two (2) locations to be opened in the greater Los Angeles area during 2002; see attached MAP for specific locations and timing. 
  
 Note: You do have the right to display products from your remodeling
business in the Renewal by Andersen® showrooms you have agreed to open as part of this
Agreement. These displays include but will not exceed a small kitchen setting and a small bathroom setting, along with small tabletop signs stating “kitchen and bath remodeling available through Century 21 Home Improvements” or something
similar which would be mutually agreed upon. You agree that these showrooms will not have any exterior signage other than for Renewal by Andersen. You do not have the right to display any other window or door products other than Andersen or Renewal
by Andersen® brand products in these showrooms
without prior written approval from us. 
  

	4.	Distribution Center of Retailer: 

  
 To be determined by mutual agreement of the parties. 
  

	5.	Authorized Non-Renewal Products: 

  
 During the term of this Agreement, so long as you remain engaged primarily in the remodeling business as conducted on the date of this Agreement, you may
continue to sell through your non-Renewal by Andersen sales organization all nonfenestration products reasonably related to that remodeling business, but in no event will you market or sell any of the following brands of window or door products:
Pella, Marvin, Weathershield, Caradco, Hurd or Pozzi or any similar national brands, subject to the following additional restrictions that will apply during the term of this Agreement with respect to window and patio door products. With respect to
window and 

  

					
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patio door products, during the term of and for the market area specified in this Agreement, you agree to use exclusively Andersen® brand or Renewal by Andersen® brand products in all of your remodeling projects to the maximum extent possible consistent with the architectural and functional requirements of the
project. 
  

	6.	Owner(s), Directors, Officers and Key Management Employees’ of Retailer: 

  

			
	 Name

	  	 Address

		
	 Murray Gross
	  	750 State Highway 121 Bypass, Suite 170, Lewisville, TX 75067
		
	 Peter Bulger
	  	750 State Highway 121 Bypass, Suite 170, Lewisville, TX 75067
		
	 Robert DeFronzo
	  	750 State Highway 121 Bypass, Suite 170, Lewisville, TX 75067
		
	 Steve Gross
	  	750 State Highway 121 Bypass, Suite 170, Lewisville, TX 75067

  

	7.	Unit Sales Commitment and Goals: 

  
 Year 2001 commitment = 0 (zero) units 
 Year 2002 commitment = 6,800 units 
 Units goals: 2003 = 14,000; 2004 = 23,000; 2005 =
27,000; 2006 = 33,000 
  
 Consistent with Appendix
B, your eventual annual window sales goal (20% of “sweet spot”) = 55,8000 units, but your annual commitments are as stated above 
  

	8.	Effective Date: This Appendix A is effective as of September 26, 2001. 

  

									
	 RENEWAL BY ANDERSEN CORPORATION
	 	 	 	 U.S. HOME SYSTEMS, INC.

					
	 By:
	 	 /s/ Craig Evanich
	 	 	 	 By:
	 	 /s/ Murray Gross

	 	 	
	 	 	 	 	 	

	 Name:
	 	 Craig Evanich
	 	 	 	 Name:
	 	 Murray Gross

	 Title:
	 	 General Manager
	 	 	 	 Title:
	 	 President & CEO

	 Date:
	 	 9/26/01
	 	 	 	 Date:
	 	 9/28/01

  

			
	Renewal by Andersen Corporation	  	U.S. Home Systems, Inc.
	9900 Jamaica Avenue South	  	750 State Highway 121 Bypass Ste 170
	Cottage Grove, MN 55016	  	Lewisville, TX 75067
	Fax: (651)264-4080	  	Fax 972 459 - 4800

	1	Including new persons or successors to the named persons who are owners and/or who perform substantially similar functions.

  

					
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 APPENDIX B 
  

TO 
  
 RENEWAL BY ANDERSEN CORPORATION 
  
 RETAILER AGREEMENT 
  

  
 Renewal by Andersen® Mission, Values and Objectives 
  

  
 Our Mission 
  
 Renewal by Andersen will become the pre-eminent provider of exterior home improvement
services by building lifetime relationships with homeowners who love their homes. 
  
 Our Values 
  
 Customer Focus – We are
committed to understanding our homeowner customer’s real needs and expectations, and exceeding them. We recognize that a delighted customer is our best recommendation to future business. 
  
 Safety – We are committed to the safety and well being of the
people who come into contact with our products. 
  
 Excellence
– We set the highest standards for our professional performance, our products and service. We are committed to continuous quality improvement in all that we do. 
  
 Integrity – We are committed to working fairly and honestly with all those with whom we come in contact.

  
 Innovation – Our motto “different and better”
connotes innovation, aesthetic and economic value... going beyond the expected into the surprising. 
  
 Teamwork – We foster an environment where individual skills and talents are recognized and encouraged to thrive in a cooperative team environment. 
  
 Individual Dignity – We believe that respect for each other’s
cultures, point of view and professional business styles significantly contributes to our business goals. 
  
 Citizenship – We believe that we have a direct and compelling responsibility to our communities to conduct our business ethically, to engage in responsible stewardship of the environment, and
to concern ourselves with the welfare of the people in the communities in which we work. 
  
 Having fun as we support one another and serve our homeowner customers. 
  

					
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 Our Objectives 
  
 Homeowner delight that is the highest in our industry. Intermediate targets are 80% “top box” rating for product satisfaction, overall service
satisfaction and recommendation. 
  
 Market penetration that of at least
20% of the calculated “sweet spot” within three years of entry.  
  
 Speed as competitive advantage with consistent order-to-install times of 30 calendar days or less.  
  
 Economic value for Andersen Corporation and our partners. 
  
 Effective Date: This Appendix B is effective as of September 26, 2001. 
  

									
	 RENEWAL BY ANDERSEN CORPORATION
	 	 	 	 U.S. HOME SYSTEMS, INC.

					
	 By:
	 	 /s/ Craig Evanich
	 	 	 	 By:
	 	 /s/ Murray Gross

	 	 	
	 	 	 	 	 	

	 Name:
	 	 Craig Evanich
	 	 	 	 Name:
	 	 Murray Gross

	 Title:
	 	 General Manager
	 	 	 	 Title:
	 	 President & CEO

	 Date:
	 	 9/26/01
	 	 	 	 Date:
	 	 9/28/01

  

					
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 APPENDIX C 
  

TO 
  
 RENEWAL BY ANDERSEN CORPORATION 
  
 RETAILER AGREEMENT 
  

  
 Authorized Trademarks, Service Marks and Trade Names 
  

  

			
	 Renewal by Andersen® of Los Angeles
  
 Renewal by Andersen®
  
 Window
Replacement from a Company You Can Trust®
  
 FibrexTM
	  	[GRAPHIC]
	  
 [GRAPHIC]
	  	[GRAPHIC]

  
 Effective Date: This Appendix C
is effective as of September 26, 2001 
  

									
	 RENEWAL BY ANDERSEN CORPORATION
	 	 	 	 U.S. HOME SYSTEMS, INC.

					
	 By:
	 	 /s/ Craig Evanich
	 	 	 	 By:
	 	 /s/ Murray Gross

	 	 	
	 	 	 	 	 	

	 Name:
	 	 Craig Evanich
	 	 	 	 Name:
	 	 Murray Gross

	 Title:
	 	 General Manager
	 	 	 	 Title:
	 	 President & CEO

	 Date:
	 	 9/26/01
	 	 	 	 Date:
	 	 ___________

  

					
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 ADDENDUM NO. 1 
 TO 
 RENEWAL BY ANDERSEN CORPORATION 
 RETAILER AGREEMENT 
  
 Modifications to Retailer Agreement 
  
 This is Addendum No. 1 (this
“Addendum”) to the Retailer Agreement, dated September 26, 2001, by and between Renewal by Andersen Corporation and U.S. Home Systems, Inc., (the “Agreement”). 
  

	1.	Amendment and Priority. The parties agree that the Agreement is amended as set forth in this Addendum. Any inconsistency between this Addendum and the Agreement
will be resolved in favor of the intent of the parties as expressed in the Addendum. Terms used in this Addendum with the initial letter capitalized which are not otherwise defined will have the meaning given to such terms in the Agreement. Except
as specifically amended in this Addendum, the Agreement will remain in full force and effect in accordance with its terms. 

  

	2.	Section 1, Your Business. Section 1 is amended by adding the following sentence to the end of the paragraph: “Unless such changes
reasonably relate to the health, safety or compliance with legal requirements: (i) we will give you at least 30 days’ prior notice of changes to the Business Operations Library or the Renewal System that affect your business; and (ii) such
changes will only apply to you to the extent they apply to other similarly situated Renewal by Andersen® retailers generally. 

  

	3.	Section 5, Suppliers. Section 5 is amended by replacing the first sentence with the following sentences: “We will be creating a list of authorized
suppliers for accessories and materials accompanying Renewal by Andersen® products and
their installation and a list of authorized suppliers for furnishings, building materials, uniforms and supplies for the establishment and operation of the showroom(s) and distribution center listed in Appendix A. Given that that list does not exist
at the time of this Agreement signing, you have the right to utilize other suppliers as long as those suppliers are providing accessories and materials that meet Renewal by Andersen standards and, where material, have been approved by Renewal by
Andersen. Once that list has been created, ” 

  

	4.	Section 8, Goals. Section 8 is amended by deleting the words “at our discretion” in the last sentence of the first flush paragraph and by inserting in
their place the following words “(which acceptance will not be arbitrarily, capriciously or in bad faith withheld or delayed). 

  

	5.	Section 11, Prices: Orders; Shipments. Section 11 is amended by adding the following sentence at the end of the paragraph: “We will use commercially
reasonable efforts to make sure that the terms and conditions of sale are no less favorable to you, on an overall economic basis, than the terms and conditions which we offer to our other similarly situated Renewal retailers (except for special
situations which are limited in time and scope), taking into account the following: price; payment and credit terms; sales terms; delivery and lead times; product offerings; marketing support; warranties; special orders; and services.”

  

					
	 USHS Addendum (LA) - FINAL
	 	 	  	Confidential

	6.	Section 14, Term. 

  

	 	a.	Section 14, First Flush Paragraph: The first flush paragraph of Section 14, which relates to cross-defaults to Retailer Agreements at other locations at which you may then be
an authorized Renewal retailer, is hereby deleted in Its entirety. 

  

	 	b.	Section 14.b.(ii): Section 14.b.(ii) is amended by adding the following phrase at the end of the sentence: “in your MAP, as measured on an annual basis.”

  

	 	c.	Section 14.b.(iii): Section 14.b.(iii), which relates to noncompliance with the intellectual property provisions of Section 16, is moved to, and will be renumbered as,
subsection 14.b.(v), the effect of which is to provide for a cure period for any breach of such provision. 

  

	 	d.	Section 14.b.(v): Section 14.b.(v) is amended by deleting the parenthetical phrase “(in no event to exceed 30 days)” and by adding the following parenthetical
phrase in its place: “(in no event to exceed 30 days, unless a longer period is required by applicable law or unless you have commenced appropriate cure activities and we reasonably believe that you will be able to complete the cure within an
additional reasonable period of time, in which case the cure period will be extended accordingly). 

  

	 	e.	Section 14.e.: Section 14.e. is deleted entirely. 

  

	7.	Section 17, Confidential Information. Section 17 is amended by adding at the end of the last sentence of the last paragraph the words “or Section 16.”

  

	8.	Section 20. Insurance. Section 20 is amended by changing “$5 million” to “$3 million”. 

  

	9.	Section 37, Compliance with Laws. Section 37 is amended by adding the words “and we” at the beginning of the sentence after the word
“You.” 

  

	10.	Section 38, Acknowledgements. 

  

	 	a.	Section 38.a.(ii). Section 38.a.(ii) is amended by adding after the phrase “complied in all material respects” the following parenthetical phrase: “(or any
such noncompliance was properly cured in accordance with the provisions of this Agreement)”. 

  

	 	b.	Section 38.c.: Section 38.c. is amended by substituting the following: 

  

“You are granted a right of first refusal for the San Diego, CA, primary market area contingent upon the following conditions being
completed to our reasonable satisfaction: 
  

	 	A.	You develop and present to us by September 1, 2002, a MAP stating your proposal to develop the San Diego, CA, primary market area to promote and sell Renewal by Andersen® brand products, and we accept this MAP (our acceptance not to be arbitrarily, capriciously or in bad faith withheld or delayed).

  

	 	B.	You are able to start operation in San Diego during or before January 2003. 

  

					
	 USHS Addendum (LA) - FINAL
	 	2	  	Confidential

	 	C.	You sign a separate, but substantially identical agreement as this one, for the San Diego, CA primary market area. Any changes to the agreement would be mutually agreed upon;
provided, however, that you will agree to accept changes that have been made to our standard Retailer Agreement used for similarly situated retailers, so long as we make modifications to any of those changes consistent with the nature and
extent of the modifications negotiated with respect to this Agreement. 

  

	 	D.	As part of the San Diego, CA agreement, both parties will negotiate in good faith to grant you a similar first right of refusal for another new geographic area for you based on
achieving full year 2002 MAP goals for Los Angeles. The geographic area would be selected and mutually agreed upon at the time of signing the San Diego, CA agreement. 

  

	 	E.	The conditions in Section 38.a.(ii), (iii) and (iv) are satisfied as of the effective date of the new San Diego, CA agreement. 

  

	 	F.	This right of first refusal for San Diego, CA will expire on October 1, 2002, if any of the above conditions have not been satisfactorily met.” 

  

	c.	Section 38.e.: Section 38 is amended by adding a new subsection 38.e. that will read in its entirety as follows: 

  
 “You acknowledge that you have developed your own MAP and that we have
not provided you with a marketing plan or system for selling or distributing the Renewal by Andersen® brand products. You acknowledge that your purchases from us of the Renewal by Andersen® brand products will be at bona fide wholesale prices and that you have no obligation to pay for a quantity of goods in excess of that which a
reasonable businessman would purchase by way of a starting inventory or supply or to maintain a going inventory or supply of products.” 
  

	11.	Effective Date. This Addendum is effective as of September 26, 2001. 

  

									
	 RENEWAL BY ANDERSEN CORPORATION
	 	 	 	 U.S. HOME SYSTEMS INC.

					
	 By:
	 	 /s/ Craig Evanich
	 	 	 	 By:
	 	 /s/ Murray Gross

	 	 	
	 	 	 	 	 	

	 Name:
	 	 Craig Evanich
	 	 	 	 Name:
	 	 Murray Gross

	 Title:
	 	 General Manager
	 	 	 	 Title:
	 	 President & CEO

									
					
	By:	 	 9/26/01
	 	 	 	By:	 	 __/28/01

  

					
	USHS Addendum (LA) - FINAL	 	3	  	Confidential

 [GRAPHIC] 
  

 Renewal by Andersen confidential 
  

			
	Los Angeles metro market	 	September 2001

  

							
	 STATE NAME

	 	 CNTY NAME

	 	 ZIP

	 	 NAME

	California	 	Los Angeles	 	90001	 	Los Angeles
	California	 	Los Angeles	 	90002	 	Los Angeles
	California	 	Los Angeles	 	90003	 	Los Angeles
	California	 	Los Angeles	 	90004	 	Los Angeles
	California	 	Los Angeles	 	90005	 	Los Angeles
	California	 	Los Angeles	 	90006	 	Los Angeles
	California	 	Los Angeles	 	90007	 	Los Angeles
	California	 	Los Angeles	 	90008	 	Los Angeles
	California	 	Los Angeles	 	90010	 	Los Angeles
	California	 	Los Angeles	 	90011	 	Los Angeles
	California	 	Los Angeles	 	90012	 	Los Angeles
	California	 	Los Angeles	 	90013	 	Los Angeles
	California	 	Los Angeles	 	90014	 	Los Angeles
	California	 	Los Angeles	 	90015	 	Los Angeles
	California	 	Los Angeles	 	90016	 	Los Angeles
	California	 	Los Angeles	 	90017	 	Los Angeles
	California	 	Los Angeles	 	90018	 	Los Angeles
	California	 	Los Angeles	 	90019	 	Los Angeles
	California	 	Los Angeles	 	90020	 	Los Angeles
	California	 	Los Angeles	 	90021	 	Los Angeles
	California	 	Los Angeles	 	90022	 	Los Angeles
	California	 	Los Angeles	 	90023	 	Los Angeles
	California	 	Los Angeles	 	90024	 	Los Angeles
	California	 	Los Angeles	 	90025	 	Los Angeles
	California	 	Los Angeles	 	90026	 	Los Angeles
	California	 	Los Angeles	 	90027	 	Los Angeles
	California	 	Los Angeles	 	90028	 	Los Angeles
	California	 	Los Angeles	 	90029	 	Los Angeles
	California	 	Los Angeles	 	90031	 	Los Angeles
	California	 	Los Angeles	 	90032	 	Los Angeles
	California	 	Los Angeles	 	90033	 	Los Angeles
	California	 	Los Angeles	 	90034	 	Los Angeles
	California	 	Los Angeles	 	90035	 	Los Angeles
	California	 	Los Angeles	 	90036	 	Los Angeles
	California	 	Los Angeles	 	90037	 	Los Angeles
	California	 	Los Angeles	 	90038	 	Los Angeles
	California	 	Los Angeles	 	90039	 	Los Angeles
	California	 	Los Angeles	 	90040	 	Los Angeles
	California	 	Los Angeles	 	90041	 	Los Angeles
	California	 	Los Angeles	 	90042	 	Los Angeles
	California	 	Los Angeles	 	90043	 	Los Angeles
	California	 	Los Angeles	 	90044	 	Los Angeles
	California	 	Los Angeles	 	90045	 	Los Angeles
	California	 	Los Angeles	 	90046	 	Los Angeles
	California	 	Los Angeles	 	90047	 	Los Angeles
	California	 	Los Angeles	 	90048	 	Los Angeles
	California	 	Los Angeles	 	90049	 	Los Angeles
	California	 	Los Angeles	 	90056	 	Los Angeles
	California	 	Los Angeles	 	90057	 	Los Angeles
	California	 	Los Angeles	 	90058	 	Los Angeles
	California	 	Los Angeles	 	90059	 	Los Angeles
	California	 	Los Angeles	 	90061	 	Los Angeles
	California	 	Los Angeles	 	90062	 	Los Angeles
	California	 	Los Angeles	 	90063	 	Los Angeles
	California	 	Los Angeles	 	90064	 	Los Angeles
	California	 	Los Angeles	 	90065	 	Los Angeles
	California	 	Los Angeles	 	90066	 	Los Angeles
	California	 	Los Angeles	 	90067	 	Los Angeles
	California	 	Los Angeles	 	90068	 	Los Angeles
	California	 	Los Angeles	 	90069	 	West Hollywood
	California	 	Los Angeles	 	90071	 	Los Angeles
	California	 	Los Angeles	 	90073	 	Los Angeles
	California	 	Los Angeles	 	90077	 	Los Angeles
	California	 	Los Angeles	 	90089	 	Los Angeles
	California	 	Los Angeles	 	90095	 	Los Angeles
	California	 	Los Angeles	 	90201	 	Bell
	California	 	Los Angeles	 	90210	 	Beverly Hills
	California	 	Los Angeles	 	90211	 	Beverly Hills
	California	 	Los Angeles	 	90212	 	Beverly Hills
	California	 	Los Angeles	 	90220	 	Compton
	California	 	Los Angeles	 	90221	 	Compton
	California	 	Los Angeles	 	90222	 	Compton
	California	 	Los Angeles	 	90230	 	Culver City
	California	 	Los Angeles	 	90232	 	Culver City
	California	 	Los Angeles	 	90240	 	Downey
	California	 	Los Angeles	 	90241	 	Downey
	California	 	Los Angeles	 	90242	 	Downey
	California	 	Los Angeles	 	90245	 	El Segundo
	California	 	Los Angeles	 	90247	 	Gardena
	California	 	Los Angeles	 	90248	 	Gardena

  

 page 1 of 6 

 Renewal by Andersen confidential 
  

			
	Los Angeles metro market	 	September 2001

  

							
	 STATE NAME

	 	 CNTY NAME

	 	 ZIP

	 	 NAME

	California	 	Los Angeles	 	90249	 	Gardena
	California	 	Los Angeles	 	90250	 	Hawthorne
	California	 	Los Angeles	 	90254	 	Hermosa Beach
	California	 	Los Angeles	 	90255	 	Huntington Park
	California	 	Los Angeles	 	90260	 	Lawndale
	California	 	Los Angeles	 	90262	 	Lynwood
	California	 	Los Angeles	 	90263	 	Malibu
	California	 	Los Angeles	 	90266	 	Manhattan Beach
	California	 	Los Angeles	 	90270	 	Maywood
	California	 	Los Angeles	 	90272	 	Pacific Palisades
	California	 	Los Angeles	 	90274	 	PalosVerdes Peninsula
	California	 	Los Angeles	 	90275	 	Rancho Palos Verdes
	California	 	Los Angeles	 	90277	 	Redondo Beach
	California	 	Los Angeles	 	90278	 	Redondo Beach
	California	 	Los Angeles	 	90280	 	South Gate
	California	 	Los Angeles	 	90290	 	Topanga
	California	 	Los Angeles	 	90291	 	Venice
	California	 	Los Angeles	 	90292	 	Marina Del Rey
	California	 	Los Angeles	 	90293	 	Playa Del Rey
	California	 	Los Angeles	 	90301	 	Inglewood
	California	 	Los Angeles	 	90302	 	Inglewood
	California	 	Los Angeles	 	90303	 	Inglewood
	California	 	Los Angeles	 	90304	 	Inglewood
	California	 	Los Angeles	 	90305	 	Inglewood
	California	 	Los Angeles	 	90401	 	Santa Monica
	California	 	Los Angeles	 	90402	 	Santa Monica
	California	 	Los Angeles	 	90403	 	Santa Monica
	California	 	Los Angeles	 	90404	 	Santa Monica
	California	 	Los Angeles	 	90405	 	Santa Monica
	California	 	Los Angeles	 	90501	 	Torrance
	California	 	Los Angeles	 	90502	 	Torrance
	California	 	Los Angeles	 	90503	 	Torrance
	California	 	Los Angeles	 	90504	 	Torrance
	California	 	Los Angeles	 	90505	 	Torrance
	California	 	Los Angeles	 	90506	 	Torrance
	California	 	Los Angeles	 	90601	 	Whittier
	California	 	Los Angeles	 	90602	 	Whittier
	California	 	Los Angeles	 	90603	 	Whittier
	California	 	Los Angeles	 	90604	 	Whittier
	California	 	Los Angeles	 	90605	 	Whittier
	California	 	Los Angeles	 	90606	 	Whittier
	California	 	Los Angeles	 	90638	 	La Mirada
	California	 	Los Angeles	 	90639	 	La Mirada
	California	 	Los Angeles	 	90640	 	Montebello
	California	 	Los Angeles	 	90650	 	Norwalk
	California	 	Los Angeles	 	90660	 	Pico Rivera
	California	 	Los Angeles	 	90670	 	Santa Fe Springs
	California	 	Los Angeles	 	90701	 	Artesia
	California	 	Los Angeles	 	90703	 	Cerritos
	California	 	Los Angeles	 	90706	 	Bellflower
	California	 	Los Angeles	 	90710	 	Harbor City
	California	 	Los Angeles	 	90712	 	Lakewood
	California	 	Los Angeles	 	90713	 	Lakewood
	California	 	Los Angeles	 	90715	 	Lakewood
	California	 	Los Angeles	 	90716	 	Hawaiian Gardens
	California	 	Los Angeles	 	90717	 	Lornita
	California	 	Los Angeles	 	90723	 	Paramount
	California	 	Los Angeles	 	90731	 	San Pedro
	California	 	Los Angeles	 	90732	 	San Pedro
	California	 	Los Angeles	 	90744	 	Wilmington
	California	 	Los Angeles	 	90745	 	Carson
	California	 	Los Angeles	 	90746	 	Carson
	California	 	Los Angeles	 	90747	 	Carson
	California	 	Los Angeles	 	90802	 	Long Beach
	California	 	Los Angeles	 	90803	 	Long Beach
	California	 	Los Angeles	 	90804	 	Long Beach
	California	 	Los Angeles	 	90805	 	Long Beach
	California	 	Los Angeles	 	90806	 	Long Beach
	California	 	Los Angeles	 	90807	 	Long Beach
	California	 	Los Angeles	 	90808	 	Long Beach
	California	 	Los Angeles	 	90810	 	Long Beach
	California	 	Los Angeles	 	90813	 	Long Beach
	California	 	Los Angeles	 	90814	 	Long Beach
	California	 	Los Angeles	 	90815	 	Long Beach
	California	 	Los Angeles	 	90822	 	Long Beach
	California	 	Los Angeles	 	90840	 	Long Beach
	California	 	Los Angeles	 	91001	 	Altadena
	California	 	Los Angeles	 	91006	 	Arcadia
	California	 	Los Angeles	 	91007	 	Arcadia
	California	 	Los Angeles	 	91010	 	Duarte

  

 page 2 of 6 

 Renewal by Andersen confidential 
  

			
	Los Angeles metro market	 	September 2001

  

							
	 STATE NAME

	 	 CNTY NAME

	 	 ZIP

	 	 NAME

	California	 	Los Angeles	 	91011	 	La Canada Flintridge
	California	 	Los Angeles	 	91016	 	Monrovia
	California	 	Los Angeles	 	91020	 	Montrose
	California	 	Los Angeles	 	91024	 	Sierra Madre
	California	 	Los Angeles	 	91030	 	South Pasadena
	California	 	Los Angeles	 	91040	 	Sunland
	California	 	Los Angeles	 	91042	 	Tujunga
	California	 	Los Angeles	 	91101	 	Pasadena
	California	 	Los Angeles	 	91103	 	Pasadena
	California	 	Los Angeles	 	91104	 	Pasadena
	California	 	Los Angeles	 	91105	 	Pasadena
	California	 	Los Angeles	 	91106	 	Pasadena
	California	 	Los Angeles	 	91107	 	Pasadena
	California	 	Los Angeles	 	91108	 	San Marino
	California	 	Los Angeles	 	91123	 	Pasadena
	California	 	Los Angeles	 	91201	 	Glendale
	California	 	Los Angeles	 	91202	 	Glendale
	California	 	Los Angeles	 	91203	 	Glendale
	California	 	Los Angeles	 	91204	 	Glendale
	California	 	Los Angeles	 	91205	 	Glendale
	California	 	Los Angeles	 	91206	 	Glendale
	California	 	Los Angeles	 	91207	 	Glendale
	California	 	Los Angeles	 	91208	 	Glendale
	California	 	Los Angeles	 	91214	 	La Crescenta
	California	 	Los Angeles	 	91302	 	Calabasas
	California	 	Los Angeles	 	91303	 	Canoga Park
	California	 	Los Angeles	 	91306	 	Winnetka
	California	 	Los Angeles	 	91316	 	Encino
	California	 	Los Angeles	 	91321	 	Newhall
	California	 	Los Angeles	 	91324	 	Northridge
	California	 	Los Angeles	 	91325	 	Northridge
	California	 	Los Angeles	 	91326	 	Northridge
	California	 	Los Angeles	 	91330	 	Northridge
	California	 	Los Angeles	 	91331	 	Pacoima
	California	 	Los Angeles	 	91335	 	Reseda
	California	 	Los Angeles	 	91340	 	San Fernando
	California	 	Los Angeles	 	91342	 	Sylmar
	California	 	Los Angeles	 	91343	 	North Hills
	California	 	Los Angeles	 	91344	 	Granada Hills
	California	 	Los Angeles	 	91345	 	Mission Hills
	California	 	Los Angeles	 	91350	 	Santa Clarita
	California	 	Los Angeles	 	91351	 	Canyon Country
	California	 	Los Angeles	 	91352	 	Sun Valley
	California	 	Los Angeles	 	91354	 	Valencia
	California	 	Los Angeles	 	91355	 	Valencia
	California	 	Los Angeles	 	91356	 	Tarzana
	California	 	Los Angeles	 	91364	 	Woodland Hills
	California	 	Los Angeles	 	91367	 	Woodland Hills
	California	 	Los Angeles	 	91371	 	Woodland Hills
	California	 	Los Angeles	 	91381	 	Stevenson Ranch
	California	 	Los Angeles	 	91384	 	Castaic
	California	 	Los Angeles	 	91401	 	Van Nuys
	California	 	Los Angeles	 	91402	 	Panorama City
	California	 	Los Angeles	 	91403	 	Sherman Oaks
	California	 	Los Angeles	 	91405	 	Van Nuys
	California	 	Los Angeles	 	91406	 	Van Nuys
	California	 	Los Angeles	 	91411	 	Van Nuys
	California	 	Los Angeles	 	91423	 	Sherman Oaks
	California	 	Los Angeles	 	91436	 	Encino
	California	 	Los Angeles	 	91501	 	Burbank
	California	 	Los Angeles	 	91502	 	Burbank
	California	 	Los Angeles	 	91504	 	Burbank
	California	 	Los Angeles	 	91505	 	Burbank
	California	 	Los Angeles	 	91506	 	Burbank
	California	 	Los Angeles	 	91521	 	Burbank
	California	 	Los Angeles	 	91522	 	Burbank
	California	 	Los Angeles	 	91523	 	Burbank
	California	 	Los Angeles	 	91601	 	North Hollywood
	California	 	Los Angeles	 	91602	 	North Hollywood
	California	 	Los Angeles	 	91604	 	Studio City
	California	 	Los Angeles	 	91605	 	North Hollywood
	California	 	Los Angeles	 	91606	 	North Hollywood
	California	 	Los Angeles	 	91607	 	Valley Village
	California	 	Los Angeles	 	91608	 	Universal City
	California	 	Los Angeles	 	91702	 	Azusa
	California	 	Los Angeles	 	91706	 	Baldwin Park
	California	 	Los Angeles	 	91711	 	Claremont
	California	 	Los Angeles	 	91722	 	Covina
	California	 	Los Angeles	 	91723	 	Covina
	California	 	Los Angeles	 	91724	 	Covina

  

 page 3 of 6 

 Renewal by Andersen confidential 
  

			
	Los Angeles metro market	 	September 2001

  

							
	 STATE NAME

	 	 CNTY NAME

	 	 ZIP

	 	 NAME

	California	 	Los Angeles	 	91731	 	El Monte
	California	 	Los Angeles	 	91732	 	El Monte
	California	 	Los Angeles	 	91733	 	South El Monte
	California	 	Los Angeles	 	91740	 	Glendora
	California	 	Los Angeles	 	91741	 	Glendora
	California	 	Los Angeles	 	91744	 	La Puente
	California	 	Los Angeles	 	91745	 	Hacienda Heights
	California	 	Los Angeles	 	91746	 	La Puente
	California	 	Los Angeles	 	91748	 	Rowland Heights
	California	 	Los Angeles	 	91750	 	La Veme
	California	 	Los Angeles	 	91754	 	Monterey Park
	California	 	Los Angeles	 	91755	 	Monterey Park
	California	 	Los Angeles	 	91765	 	Diamond Bar
	California	 	Los Angeles	 	91767	 	Pomona
	California	 	Los Angeles	 	91768	 	Pomona
	California	 	Los Angeles	 	91770	 	Rosemead
	California	 	Los Angeles	 	91773	 	San Dimas
	California	 	Los Angeles	 	91775	 	San Gabriel
	California	 	Los Angeles	 	91776	 	San Gabriel
	California	 	Los Angeles	 	91780	 	Temple City
	California	 	Los Angeles	 	91789	 	Walnut
	California	 	Los Angeles	 	91790	 	West Covina
	California	 	Los Angeles	 	91791	 	West Covina
	California	 	Los Angeles	 	91792	 	West Covina
	California	 	Los Angeles	 	91801	 	Alhambra
	California	 	Los Angeles	 	91803	 	Alhambra
	California	 	Los Angeles	 	93243	 	Lebec
	California	 	Los Angeles	 	93510	 	Acton
	California	 	Los Angeles	 	93523	 	Edwards
	California	 	Los Angeles	 	93532	 	Lake Hughes
	California	 	Los Angeles	 	93534	 	Lancaster
	California	 	Los Angeles	 	93535	 	Lancaster
	California	 	Los Angeles	 	93536	 	Lancaster
	California	 	Los Angeles	 	93543	 	Littlerock
	California	 	Los Angeles	 	93544	 	Llano
	California	 	Los Angeles	 	93550	 	Palmdale
	California	 	Los Angeles	 	93551	 	Palmdale
	California	 	Los Angeles	 	93552	 	Palmdale
	California	 	Los Angeles	 	93553	 	Pearblossom
	California	 	Los Angeles	 	93560	 	Rosamond
	California	 	Los Angeles	 	93563	 	Valyermo
	California	 	Los Angeles	 	93591	 	Palmdale
	California	 	Orange	 	90620	 	Buena Park
	California	 	Orange	 	90621	 	Buena Park
	California	 	Orange	 	90623	 	La Palma
	California	 	Orange	 	90630	 	Cypress
	California	 	Orange	 	90631	 	La Habra
	California	 	Orange	 	90680	 	Stanton
	California	 	Orange	 	90720	 	Los Alamitos
	California	 	Orange	 	90740	 	Seal Beach
	California	 	Orange	 	92602	 	Irvine
	California	 	Orange	 	92603	 	Irvine
	California	 	Orange	 	92604	 	Irvine
	California	 	Orange	 	92606	 	Irvine
	California	 	Orange	 	92610	 	Foothill Ranch
	California	 	Orange	 	92612	 	Irvine
	California	 	Orange	 	92614	 	Irvine
	California	 	Orange	 	92618	 	Irvine
	California	 	Orange	 	92620	 	Irvine
	California	 	Orange	 	92624	 	Capistrano Beach
	California	 	Orange	 	92625	 	Corona Del Mar
	California	 	Orange	 	92626	 	Costa Mesa
	California	 	Orange	 	92627	 	Costa Mesa
	California	 	Orange	 	92629	 	Dana Point
	California	 	Orange	 	92630	 	Lake Forest
	California	 	Orange	 	92646	 	Huntington Beach
	California	 	Orange	 	92647	 	Huntington Beach
	California	 	Orange	 	92648	 	Huntington Beach
	California	 	Orange	 	92649	 	Huntington Beach
	California	 	Orange	 	92651	 	Laguna Beach
	California	 	Orange	 	92653	 	Laguna Hills
	California	 	Orange	 	92655	 	Midway City
	California	 	Orange	 	92656	 	Aliso Viejo
	California	 	Orange	 	92657	 	Newport Coast
	California	 	Orange	 	92660	 	Newport Beach
	California	 	Orange	 	92661	 	Newport Beach
	California	 	Orange	 	92662	 	Newport Beach
	California	 	Orange	 	92663	 	Newport Beach
	California	 	Orange	 	92673	 	San Clemente
	California	 	Orange	 	92675	 	San Juan Capistrano

  

 page 4 of 6 

 Renewal by Andersen confidential 
  

			
	Los Angeles metro market	 	September 2001

  

							
	 STATE NAME

	 	 CNTY NAME

	 	 ZIP

	 	 NAME

	California	 	Orange	 	92676	 	Silverado
	California	 	Orange	 	92677	 	Laguna Niguel
	California	 	Orange	 	92679	 	Trabuco Canyon
	California	 	Orange	 	92683	 	Westminster
	California	 	Orange	 	92688	 	Rancho Santa Margarita
	California	 	Orange	 	92691	 	Mission Viejo
	California	 	Orange	 	92692	 	Mission Viejo
	California	 	Orange	 	92701	 	Santa Ana
	California	 	Orange	 	92703	 	Santa Ana
	California	 	Orange	 	92704	 	Santa Ana
	California	 	Orange	 	92705	 	Santa Ana
	California	 	Orange	 	92706	 	Santa Ana
	California	 	Orange	 	92707	 	Santa Ana
	California	 	Orange	 	92708	 	Fountain Valley
	California	 	Orange	 	92709	 	Irvine
	California	 	Orange	 	92780	 	Tustin
	California	 	Orange	 	92782	 	Tustin
	California	 	Orange	 	92801	 	Anaheim
	California	 	Orange	 	92802	 	Anaheim
	California	 	Orange	 	92804	 	Anaheim
	California	 	Orange	 	92805	 	Anaheim
	California	 	Orange	 	92806	 	Anaheim
	California	 	Orange	 	92807	 	Anaheim
	California	 	Orange	 	92808	 	Anaheim
	California	 	Orange	 	92821	 	Brea
	California	 	Orange	 	92823	 	Brea
	California	 	Orange	 	92831	 	Fullerton
	California	 	Orange	 	92832	 	Fullerton
	California	 	Orange	 	92833	 	Fullerton
	California	 	Orange	 	92835	 	Fullerton
	California	 	Orange	 	92840	 	Garden Grove
	California	 	Orange	 	92841	 	Garden Grove
	California	 	Orange	 	92843	 	Garden Grove
	California	 	Orange	 	92844	 	Garden Grove
	California	 	Orange	 	92845	 	Garden Grove
	California	 	Orange	 	92861	 	Villa Park
	California	 	Orange	 	92862	 	Orange
	California	 	Orange	 	92865	 	Orange
	California	 	Orange	 	92866	 	Orange
	California	 	Orange	 	92867	 	Orange
	California	 	Orange	 	92868	 	Orange
	California	 	Orange	 	92869	 	Orange
	California	 	Orange	 	92870	 	Placentia
	California	 	Orange	 	92886	 	Yorba Linda
	California	 	Orange	 	92887	 	Yorba Linda
	California	 	Riverside	 	91719	 	Corona
	California	 	Riverside	 	91720	 	Corona
	California	 	Riverside	 	91752	 	Mira Loma
	California	 	Riverside	 	91760	 	Norco
	California	 	Riverside	 	92501	 	Riverside
	California	 	Riverside	 	92503	 	Riverside
	California	 	Riverside	 	92504	 	Riverside
	California	 	Riverside	 	92505	 	Riverside
	California	 	Riverside	 	92506	 	Riverside
	California	 	Riverside	 	92507	 	Riverside
	California	 	Riverside	 	92508	 	Riverside
	California	 	Riverside	 	92509	 	Riverside
	California	 	Riverside	 	92530	 	Lake Elsinore
	California	 	Riverside	 	92532	 	Lake Elsinore
	California	 	Riverside	 	92562	 	Murrieta
	California	 	Riverside	 	92570	 	Perris
	California	 	Riverside	 	92587	 	Sun City
	California	 	Riverside	 	92590	 	Ternecula
	California	 	Riverside	 	92595	 	Wildomar
	California	 	San Bernardino	 	91701	 	Alta Lorna
	California	 	San Bernardino	 	91709	 	Chino Hills
	California	 	San Bernardino	 	91710	 	Chino
	California	 	San Bernardino	 	91730	 	Rancho Cucarmonga
	California	 	San Bernardino	 	91737	 	Alta Loma
	California	 	San Bernardino	 	91739	 	Rancho Cucamonga
	California	 	San Bernardino	 	91759	 	Mt Baldy
	California	 	San Bernardino	 	91761	 	Ontario
	California	 	San Bernardino	 	91762	 	Ontario
	California	 	San Bernardino	 	91763	 	Montclair
	California	 	San Bernardino	 	91764	 	Ontario
	California	 	San Bernardino	 	91766	 	Pomona
	California	 	San Bernardino	 	91784	 	Upland
	California	 	San Bernardino	 	91786	 	Upland
	California	 	San Bernardino	 	92313	 	Grand Terrace
	California	 	San Bernardino	 	92316	 	Bloomington

  

 page 5 of 6 

 Renewal by Andersen confidential 
  

			
	Los Angeles metro market	 	September 2001

  

							
	 STATE NAME

	 	 CNTY NAME

	 	 ZIP

	 	 NAME

	California	 	San Bernardino	 	92324	 	Colton
	California	 	San Bernardino	 	92335	 	Fontana
	California	 	San Bernardino	 	92336	 	Fontana
	California	 	San Bernardino	 	92337	 	Fontana
	California	 	San Bernardino	 	92345	 	Hesperia
	California	 	San Bernardino	 	92346	 	Highland
	California	 	San Bernardino	 	92350	 	Loma Linda
	California	 	San Bernardino	 	92354	 	Loma Linda
	California	 	San Bernardino	 	92358	 	Lytle Creek
	California	 	San Bernardino	 	92371	 	Phelan
	California	 	San Bernardino	 	92372	 	Pinon Hills
	California	 	San Bernardino	 	92373	 	Redlands
	California	 	San Bernardino	 	92374	 	Redlands
	California	 	San Bernardino	 	92376	 	Rialto
	California	 	San Bernardino	 	92377	 	Rialto
	California	 	San Bernardino	 	92397	 	Wrightwood
	California	 	San Bernardino	 	92401	 	San Bernardino
	California	 	San Bernardino	 	92404	 	San Bernardino
	California	 	San Bernardino	 	92405	 	San Bernardino
	California	 	San Bernardino	 	92407	 	San Bernardino
	California	 	San Bernardino	 	92408	 	San Bernardino
	California	 	San Bernardino	 	92410	 	San Bernardino
	California	 	San Bernardino	 	92411	 	San Bernardino
	California	 	Santa Barbara	 	00032	 	Los Padres Ntl Forest
	California	 	Santa Barbara	 	93013	 	Carpinteria
	California	 	Santa Barbara	 	93067	 	Summerland
	California	 	Santa Barbara	 	93101	 	Santa Barbara
	Caiifornia	 	Santa Barbara	 	93103	 	Santa Barbara
	California	 	Santa Barbara	 	93105	 	Santa Barbara
	California	 	Santa Barbara	 	93106	 	Santa Barbara
	California	 	Santa Barbara	 	93108	 	Santa Barbara
	California	 	Santa Barbara	 	93109	 	Santa Barbara
	California	 	Santa Barbara	 	93110	 	Santa Barbara
	California	 	Santa Barbara	 	93111	 	Santa Barbara
	Caiifornia	 	Santa Barbara	 	93117	 	Goleta
	California	 	Santa Barbara	 	93254	 	New Cuyama
	California	 	Santa Barbara	 	93427	 	Buellton
	California	 	Santa Barbara	 	93429	 	Casmalia
	California	 	Santa Barbara	 	93434	 	Guadalupe
	California	 	Santa Barbara	 	93436	 	Lompoc
	California	 	Santa Barbara	 	93437	 	Lompoc
	Caiifornia	 	Santa Barbara	 	93441	 	Los Olivos
	California	 	Santa Barbara	 	93454	 	Santa Maria
	California	 	Santa Barbara	 	93455	 	Santa Maria
	California	 	Santa Barbara	 	93458	 	Santa Maria
	California	 	Santa Barbara	 	93460	 	Santa Ynez
	California	 	Santa Barbara	 	93463	 	Solvang
	California	 	Ventura	 	00018	 	Los Padres Ntl Forest
	California	 	Ventura	 	90265	 	Malibu
	California	 	Ventura	 	91301	 	Agoura Hills
	California	 	Ventura	 	91304	 	Canoga Park
	Caiifornia	 	Ventura	 	91307	 	West Hills
	Caiifornia	 	Ventura	 	91311	 	Chatsworth
	California	 	Ventura	 	91320	 	Newbury Park
	California	 	Ventura	 	91360	 	Thousand Oaks
	Caiifornia	 	Ventura	 	91361	 	Westlake Village
	Caiifornia	 	Ventura	 	91362	 	Thousand Oaks
	California	 	Ventura	 	93001	 	Ventura
	California	 	Ventura	 	93003	 	Ventura
	Caiifornia	 	Ventura	 	93004	 	Ventura
	Caiffornia	 	Ventura	 	93010	 	Camarillo
	California	 	Ventura	 	93012	 	Camarillo
	California	 	Ventura	 	93015	 	Filimore
	Caiifornia	 	Ventura	 	93021	 	Moorpark
	California	 	Ventura	 	93022	 	Oak View
	California	 	Ventura	 	93023	 	Ojai
	Caiifornia	 	Ventura	 	93030	 	Oxnard
	California	 	Ventura	 	93033	 	Oxnard
	California	 	Ventura	 	93035	 	Oxnard
	California	 	Ventura	 	93041	 	Port Hueneme
	California	 	Ventura	 	93042	 	Point Mugu Nawc
	California	 	Ventura	 	93043	 	Port Hueneme Cbc Base
	California	 	Ventura	 	93060	 	Santa Paula
	California	 	Ventura	 	93063	 	Simi Valley
	California	 	Ventura	 	93065	 	Simi Valley
	California	 	Ventura	 	93066	 	Somis
	California	 	Ventura	 	93225	 	Frazier Park
	Caiifornia	 	Ventura	 	93252	 	Maricopa

  

 page 6 of 6 

					
	[GRAPHIC]	 	 750 State Highway 121 Bypass, Suite 170
	 	 Phone: (214) 488-6300

	 	 	 Lewisville, TX 75067
	 	 Fax: (972) 459-4800

  
 September 17, 2001 
  
 Mr. Michael Chalmers 
 Renewal by Andersen 
 9900 Jamaica Avenue South 
 Cottage Grove, Minnesota 55016 
  
 Dear Michael:

  
 Enclosed is our MAP for the Southern California market. I trust this is
everything you presently need to complete the agreement. 
  
 Sincerely yours,

  

	
	
	/s/ Murray H. Gross
	

	Murray H. Gross
	President & CEO

  
 MHG:dks 
  
 Enclosure 
  

 MAP 
  
 Southern California 
 Los Angeles and
San Diego 
  

 LOS ANGELES – SAN DIEGO 
  

					
	 Date

	  	 Location

	  	 Facility Type

			
	 January 1, 2002
	  	Gardenia	  	 20,000 square feet
 Showroom/Office/Warehouse

			
	 February 1, 2002
	  	Orange County (Irvine)	  	 18,000 – 20,000 square feet
 Showroom/Office/Warehouse

			
	 January 1, 2003
	  	San Diego	  	 5,000 square feet Showroom/Office

			
	 January 1, 2003
	  	North San Fernando Valley	  	 5,000 square feet Showroom/Office

			
	 January 1, 2004
	  	Los Angeles East (Pomona)	  	 8,000 – 10,000 square feet
 Showroom/Office/Warehouse

  

 Roll Out Schedule for 
 RbA of Southern California 
  

					
	 Date

	  	 Activity

	  	 Completion

			
	 Nov. 1, 2001
	  	 Ed Locicero joins RbA
	  	 
			
	 	  	 Ed Locicero and Murray Gross
 commence search for real estate
	  	 Nov 14, 2001

			
	 Nov. 19, 2001
	  	 Ed Locicero visits Minneapolis
	  	 Nov. 30, 2001

			
	 Dec. 1, 2001
	  	 Ready offices and showrooms
	  	 Dec. 31, 2001

			
	 Jan. 2, 2002
	  	 Occupy LA office
	  	 
			
	 Jan. 7, 2002
	  	 Recruiting begins
	  	 Jan. 18, 2002

			
	 Jan. 14, 2002
	  	 Marketing begins
	  	 
			
	 Jan. 21, 2002
	  	 Training begins
	  	 
			
	 Jan. 28, 2002
	  	 Begin running leads
	  	 
			
	 Feb. 4, 2002
	  	 Open Orange County facility
	  	 
			
	 	  	 Recruiting begins
	  	 Feb. 16, 2002

			
	 Feb. 11, 2002
	  	 Marketing begins
	  	 
			
	 Feb. 18, 2002
	  	 Training begins
	  	 Mar. 2, 2002

			
	 Feb. 25, 2002
	  	 Begin running leadsLicense Agreement

 Exhibit 10.40 
  
 LICENSE AGREEMENT 
  
 This LICENSE AGREEMENT (this “Agreement”) is entered into as of the 3rd day of March, 1997 between TM Acquisition Corp., a Delaware corporation (“Licensor”), and U.S. Remodelers, Inc., a Delaware corporation (“Licensee”). 
  
 PRELIMINARY STATEMENTS 
  
 A. Licensor, pursuant to a Master License Agreement (the “Master
License”) between Century 21 Real Estate Corporation (“Century 21”) and Licensor, has certain rights in the trademarks and service marks “CENTURY 21” and “CENTURY 21 Home Improvements,” and the design trademarks
and service marks, “CENTURY 21 and design” and “CENTURY 21 Home Improvements and design” depicted on Exhibit A hereto, and the trade dress used in connection with or as part of the foregoing (the “Trade Dress”)
(all of the foregoing, individually and collectively, the “Trademark”), including the right to grant the license set forth herein. 
  
 B. Licensor entered into that certain License Agreement (the “Original License Agreement”) dated October 17, 1995 with Century 21 and American
Remodeling, Inc., a Texas corporation (“American Remodeling”), pursuant to which Licensor granted to American Remodeling a license to use the Trademark in connection with the marketing, selling, furnishing and installation of home
improvement products in the United States, Canada and Mexico. 
  
 C. American Remodeling, together with its parent corporation AMRE, Inc., and various of AMRE’s direct and indirect subsidiaries were the subject of an involuntary filing under the United States Bankruptcy Code on January 21, 1997 (the
“Bankruptcy Cases”). As part of the Bankruptcy Cases, Licensee has been granted the right, during an interim period, to operate a home improvement business in certain offices formerly occupied by AMRE and its subsidiaries, to purchase
certain inventory from AMRE and its subsidiaries and complete certain contracts of AMRE or its subsidiaries. 
  
 D. Licensee is engaged in the business of marketing, selling, furnishing, and installing the home improvement products specified in Exhibit C
hereto. 
  
 E. Licensee desires to obtain, and Licensor is willing
to grant, a license pursuant to which Licensee shall become a licensee of Licensor’s right to use the Trademark in connection with the marketing, selling, furnishing, and installation of the home improvement products specified on Exhibit
C hereto in the market area designated in Exhibit B hereto on the terms and conditions set forth herein; 
  

 NOW THEREFORE, in consideration of the premises and mutual agreements set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows: 
  
 STATEMENT OF AGREEMENT  
  

	1.	Definitions. As used herein, the term: 

  
 1.1. “Affiliate” shall mean, with respect to any person, any other person, entity, or organization directly or indirectly controlling,
controlled by, or under common control with, such person at any time during the period for which the determination of affiliation with such person is being made. 
  
 1.2. “Century 21” shall have the meaning set forth in the Preliminary Statements. 
  
 1.3. “Confidential Information” shall mean any non-public
information, technical data, or know-how which relates to the business, services, or products of either party or a third party, including without limitation, any customer lists, any information with respect to leads, pitch books, and training
materials, salary information, research products, services, developments, inventions, processes, techniques, designs, or distribution, marketing, financial, merchandising and/or sales information. 
  
 1.4 “Contract Revenue” shall have the meaning set forth in
Subsection 8.2. 
  
 1.5 “Contract(s)” shall mean all
contracts of any nature entered into by Licensee with its customers relating to the provision or sale of Licensed Services. 
  
 1.6 “Earned Royalties” shall have the meaning set forth in Subsection 8.2. 
  
 1.7 “Licensed Services” shall mean the marketing, sale, furnishing, installation and servicing of only the home
improvement products specifically designated on Exhibit C hereto for Residential Properties. 
  
 1.8 “License” shall mean the exclusive right to use the Trademark in connection with the Licensed Services in the Territory during the Term. 
  
 1.9 “Licensee” shall have the meaning set forth in the Preliminary Statement. 
  
 1.10 “Licensor” shall have the meaning set forth in the Preliminary
Statement. 
  
 1.11 “Master License” shall have the
meaning set forth in the Preliminary Statement. 
  
 1.12
“Prime Rate” shall mean the prime rate of interest in effect from time to time at The Chase Manhattan Bank, New York, New York, or any successor bank thereto. 
  
 1.13 “Quarter” shall mean the Licensee’s fiscal quarter ending on March 31, June 30, September 30 and
December 31, as applicable. 
  

 -2- 

 1.14 “Receiving Party” shall have the meaning set forth in Subsection 17.2. 
  
 1.15 “Residential Properties” shall mean non-commercial properties
that are utilized solely for residential purposes, excluding (a) properties with respect to which Licensee has entered into a contract having four or more connected and/or attached residential units, and (b) properties which are part of a
residential condominium unit and Licensee has entered into a contract which is negotiated and paid for by the management of the condominium. 
  
 1.16 “Royalties” shall mean, with respect to any Year, the Earned Royalties actually due to Licensor for such Year. 
  
 1.17 “Term” shall mean the term of this Agreement, which shall
commence as of the date of this Agreement and shall expire on March 31, 1997, unless earlier terminated pursuant to the terms of this Agreement or extended in writing signed by Licensor and Licensee; provided, that, the term shall be automatically
extended until March 31, 2007 in the event that on or before March 31, 1997 the Original License is terminated by order of the Bankruptcy Court in which the Bankruptcy Cases are pending. 
  
 1.18 “Territory” shall mean the market area described on Exhibit B hereto. 
  
 1.19 “Trade Dress” shall have the meaning set forth in the
Preliminary Statements. 
  
 1.20 “Trademark” shall have
the meaning set forth in the Preliminary Statements. 
  
 1.21
“Year” shall mean each twelve month period during the Term commencing January 1 of each year and ending December 31 of the same calendar year, except that the first year of the term shall be the period from the date of this Agreement
through December 31, 1997. 
  

	2.	Grant of License. 

  
 2.1 Subject to the terms and provisions hereof, Licensor hereby grants to Licensee and Licensee hereby accepts the License during the Term. 
  
 2.2 Licensee shall operate in the Territory under the trade name
“CENTURY 21 Home Improvements” or “CENTURY 21 Cabinet Refacing” together with a name identifying Licensee’s corporate name (e.g. “Century 21 Home Improvements/U.S. Remodelers, Inc.”) or such other trade names as
shall have been approved in writing by Licensor. Licensee shall file assumed name certificates or similar documents in connection with operating under such name in such jurisdictions as such filings may be legally required and shall upon request
provide copies thereof to Licensor. Licensee may operate outside of the Territory under such other tradenames which do not conflict with “Century 21 Home Improvements” or “Century 21 Cabinet Refacing” as Licensee shall determine.
Licensee may cease operations in any part of the Territory, if, Licensee provides reasonable evidence to 

  

 -3- 

 
Licensor that Licensee is unable to operate profitably in such market. In the event that Licensee ceases operations in any part of the Territory the License
granted under this Agreement shall be immediately terminated with respect to such part of the Territory without any liability on the part of Licensor or Licensee except as otherwise provided in this Agreement. 
  
 2.3 The License applies solely to the use of the Trademark in connection with
the Licensed Services in the Territory and (i) no use of any other trademark of Licensor or Century 21 or any of their respective Affiliates, and (ii) no use of the Trademark on any products or on services other than the Licensed Services or in the
name of any corporation, is authorized or permitted. Licensor reserves the right to use, and to grant to its Affiliates or any other licensee the right to use, the Trademark (i) on or in connection with any and all products and services or for any
other purpose other than the specific Licensed Services within the Territory, (ii) outside the Territory with respect to the Licensed Services. There are no implied agreements or covenants between the parties regarding the Territory. 
  
 2.4 Unless otherwise approved by Licensor, all references to the Trademark,
in Contracts, advertisements, or promotional materials, shall prominently display a statement to the effect that the Licensed Services are sold, furnished and performed by U.S. Remodelers, Inc., an independently owned contractor. In no event shall
Licensee, or any of its employees, agents, representatives or subcontractors identify Licensee, orally or in writing as a subsidiary, division or Affiliate of Century 21, Licensor or any of their Affiliates. 
  
 2.5 Licensee shall actively conduct the business of selling and providing
Licensed Services under the Trademark in all of the economically viable markets for such products and services within the Territory. 
  
 2.6 Licensee shall not carry on any business similar to the sale or provision of Licensed Services within the Territory except pursuant to this Agreement.

  

	3.	Representations and Warranties. 

  
 3.1. Licensor represents and warrants that it has full right, power, and authority to enter into this Agreement and to perform its obligations hereunder,
and to consummate all of the transactions contemplated herein and that it has a valid and enforceable right to license the Trademark and that the Trademark is valid and enforceable subject only to the rights of American Remodeling pursuant to the
terms of the Original License Agreement. Licensor represents and warrants that Century 21 or its affiliate CTM Holdings Corp. owns all right, title and interest in and to the Trademark subject to the Master License, the Original License Agreement
and all other franchises and licenses granted by Century 21 and its subfranchisees. Licensor additionally represents and warrants that the use of the Trademark by Licensee in the Territory strictly in accordance with the provisions of this Agreement
shall not infringe any trademark or copyright of any third party. Licensee agrees and acknowledges that other than those representations explicitly contained in this Agreement, no representations, warranties, or guarantees of any kind have been made
to Licensee, either by Licensor, Century 21 or any of 

  

 -4- 

 
their respective Affiliates, or by anyone acting on behalf of Licensor, Century 21 or their respective Affiliates. 
  
 3.2. Licensee represents and warrants that it has the full right, power, and
authority to enter into this Agreement, to perform all of its obligations hereunder, and to consummate the transactions contemplated herein, and that to the best of its knowledge, as a result of entering into this Agreement, Licensee shall not
violate any contractual or other right of any third party. Licensee further represents and warrants that to the best of its knowledge, no Licensed Service or product sold or installed in connection therewith shall violate or infringe any patent,
trademark, copyright, or other intellectual property right of any third party, or shall be manufactured (to the extent within the control of Licensee) or sold in violation of any statute, ordinance or administrative order, rule, or regulation.

  
 3.3 Licensor and Licensee each represent and warrant that (i)
this Agreement constitutes a valid and legally binding obligation of it (subject to creditors’ rights, bankruptcy, moratorium and laws of similar effect, and general principles of equity), (ii) the execution and delivery by it of this Agreement
and the performance by it of its obligations hereunder have been duly authorized by all requisite corporate action on the part of it, and (iii) no other corporate proceedings on the part of it or consents are required in connection with the
execution, delivery, and performance by it of this Agreement. 
  

	4.	Quality Standards. 

  
 4.1 Licensee acknowledges that the Trademark has established extremely valuable goodwill and is well recognized among consumers, and that it is of great
importance to each party that in the sale and provision of the Licensed Services the high standards and reputation that Century 21 and the owner of the Trademark have established be maintained. Accordingly, all Licensed Services provided by Licensee
hereunder and the products sold or installed in connection therewith shall be of first class installation and of high quality as is consistent with the respective price of such Licensed Services and said products. All Licensed Services and the
products sold or installed in connection therewith shall be commercially acceptable for the purposes for which they are sold. 
  
 4.2 Licensee may use the Trademark only pursuant to the specifications and designs for the Trademark approved in writing by Licensor or provided in
writing by Licensor and only in the manner approved by Licensor with respect to the Licensed Services. For any Trademark that is federally registered, appropriate notice of registration in accordance with the applicable laws or regulations of the
applicable jurisdiction shall accompany uses of such trademarks (a small “R” within a circle in the United States) as necessary to obtain the maximum protection for trademarks under the applicable trademark law. 
  
 4.3 Licensee shall submit to Licensor for Licensor’s review and prior
written approval samples of each initial use of all materials of any nature bearing the Trademark. The foregoing notwithstanding, following approval by Licensor of the initial use, no additional approval will 

  

 -5- 

 
be required with respect to any minor alterations in the format, layout, or color (excluding any such changes to the Trademark) of approved materials or any
changes in media sources, provided that any such new media sources are substantially identical in all material respects to those previously approved by Licensor and will not have an adverse effect on the Trademarks, and provided that in all other
respects such materials are substantially identical to the sample previously approved by Licensor. Licensor agrees that all materials bearing the Trademark which previously have been approved for use by American Remodeling or Facelifters Home
Systems, Inc. may be used by Licensee so long as the name “U.S. Remodelers, Inc.” has been substituted for the name of such entity. 
  
 4.4 Licensor shall promptly approve or disapprove all submitted samples within five (5) business days of receipt of such sample and shall not unreasonably
withhold its approval. Licensee shall seek approval as early as reasonably possible prior to production or use of each respective item bearing the Trademark. 
  
 4.5 Licensee shall, upon request, permit Licensor to visit Licensee’s offices, work sites, or other places of business at any reasonable time, for
inspection by Licensor’s representatives of files, documents, products, and other materials relating to the Licensor’s Licensed Services and products sold or installed in connection therewith at which time Licensor may take samples of such
products and samples or copies of documents and other materials relating to the Licensed Services and such products, so long as taking such samples does not unreasonably interfere with Licensee’s ability to complete jobs which are in progress.
The provisions of Section 17 shall apply to all Confidential Information obtained through or derived from such inspections. 
  
 4.6 Licensee shall prepare and maintain periodic (at least quarterly) summary reports of all customer complaints to any third party or government agency
regarding the Licensed Services and products sold or installed in connection therewith during the Term, and upon request will promptly submit each such summary to Licensor following the end of each Quarter. In the event that, in the reasonable
opinion of Licensor, there is a material increase in the level of registered customer complaints as a percentage of total jobs undertaken, Licensee, upon notification from Licensor, shall promptly meet with Licensor to discuss steps necessary to
reduce the number and severity of such customer complaints. Licensee shall promptly thereafter undertake and shall diligently pursue remedial efforts necessary to reduce the level of customer complaints to a level reasonably satisfactory to
Licensor. 
  
 4.7 Licensee represents and warrants that the
Licensed Services and products sold or installed in connection therewith shall be furnished in a workman-like manner and that all products, labor and materials shall be of high quality. Licensee further represents and warrants that each completed
application or installation performed hereunder shall be of high quality and that all applied or installed products and their application or installation shall remain in good condition and be free from defects in materials and workmanship for a
period of at least one year from the date application or installation is completed. Licensee shall provide a written warranty to such effect to all of its customers for Licensed Services and products sold or installed in connection therewith
conforming to applicable law. 
  

 -6- 

 4.8 Licensee agrees to maintain and adhere to a general policy of customer satisfaction satisfactory to
Licensor and shall use its best efforts to adjust complaints of customers and resolve controversies with customers with respect to the sale or provision of the Licensed Services and products sold or installed in connection therewith. In the event
Licensee receives any notice that any application or installation or product is defective, Licensee shall promptly investigate such complaint and shall promptly repair or replace any defective application or installation at no additional cost
pursuant to the terms of the written warranty. In the event any adjustment remains unsatisfactory to the customer, Licensee agrees that it will use its best efforts to satisfy the reasonable complaints to such customer. 
  
 4.9 All Contracts must be in writing and signed by the customer. Such
contracts shall be retained by Licensee for a period of not less than two years from the date of Licensee’s receipt of full payment on the Contract. Each Contract will identify Licensee as the vendor of the subject matter of the Contract and
that Licensee is a licensee and not a subsidiary, division or affiliate of Century 21, Licensor or HFS. 
  

	5.	Trademark Ownership and Protection. 

  
 5.1 Relying on representations of Licensor, Licensee acknowledges that Licensor owns or possesses the exclusive right to use the Trademark, the Trade
Dress (including the colors and designs associated therewith), and the goodwill associated therewith in connection with the Licensed Services. Licensee further acknowledges the exclusive rights held by Licensor to use the Trademark and the goodwill
associated therewith. All use of the Trademark and Trade Dress pursuant to this Agreement and goodwill generated thereby shall inure to the benefit of Licensor and shall not vest in Licensee any right to or right or presumptive right to continue
such use, other than in accordance with this Agreement. For the purposes of trademark registration, sales by Licensee of Licensed Services under the trademark shall be deemed to have been made for the benefit of Licensor and its Affiliates.

  
 5.2 Except for the License granted herein, nothing contained
in this Agreement shall be construed as an assignment or grant to Licensee of any right, title, or interest in or to the Trademark, or any of Licensor’s or any of its Affiliates’ or other trademarks, it being understood that all rights
relating thereto are reserved by such Licensor – affiliated parties, except for the License hereunder to use the Trademark to the extent specifically provided herein and subject to the restrictions provided herein. 
  
 5.3 Licensee shall not, during the Term of this Agreement or thereafter, (a)
challenge Licensor’s or any of its Affiliates’ title or rights in and to the Trademark in any jurisdiction or challenge the validity of this License or of the Trademark, or (b) contest the fact that Licensee’s rights under this
Agreement are solely those of a licensee and shall cease upon expiration or earlier termination of this Agreement. Licensee shall not file or prosecute any trademark or service mark application or applications to register the Trademark. The
provisions of this Section 5.3 shall survive the expiration or termination of this Agreement. 
  

 -7- 

 5.4 Licensor shall maintain all existing registrations of the Trademark in full force and effect and
shall use commercially reasonable efforts to secure appropriate federal registrations of the Trademark. In addition, at Licensee’s expense, Licensor shall use commercially reasonable efforts to secure appropriate registrations in all
jurisdictions within the Territory as reasonably requested by Licensee. Licensee shall cooperate fully and in good faith with Licensor for the purpose of maintaining registrations and prosecuting applications for the Trademark and otherwise securing
and preserving Licensor’s rights in and to the Trademark. 
  

	6.	Licensee’s Employees. 

  
 Licensee shall have no authority to employ persons on behalf of Licensor or any of its Affiliates and no employees of Licensee shall be deemed to be
employees or agents of Licensor or any of its Affiliates. Licensee shall have the sole and exclusive right and responsibility to hire, train, transfer, suspend, layoff, recall, promote, assign, discipline, adjust grievances, and discharge said
employees, and shall comply with all laws and regulations applicable to employment and labor relations. Licensee shall identify itself as the employer of its employees and contractors and take no action or fail to take action when appropriate that
would leave employers or contractors with the impression that they are the employees or contractors of Licensor or Century 21. 
  

	7.	Licenses and Permits. 

  
 7.1 Licensee, at its expense, shall obtain all permits and licenses which may be required under any applicable Federal, State or local law, ordinance,
rule or regulation by virtue of any acts performed by Licensee in the performance of this Agreement. Licensee shall in the conduct of said business and in the performance of this Agreement, comply fully with all applicable Federal, State and local
laws, ordinances, rules, and regulations. 
  
 7.2 Licensee, at its
expense, shall pay and discharge all license fees, business, use, excise, sales, gross receipts, income, property or other similar or different taxes or assessments which may be charged or levied upon Licensee by reason of anything performed under
this Agreement. Nothing set forth in this Section 7.2 shall be construed to make Licensee responsible for any taxes and assessments based upon Licensor’s income from the Earned Royalties hereunder. 
  

	8.	Royalties. 

  
 8.1. As compensation for the License granted hereunder for the use of the Trademark in connection with the sale and provision of Licensed Services and the
sale or installation of products in connection therewith in the Territory, Licensee shall pay to Licensor earned royalties (“Earned Royalties”) equal to two percent (2%) of Licensee’s Contract Revenue for each Year of the Term;
provided, that, in the event that the Term is automatically extended in accordance 

  

 -8- 

 
with the provisions of Section 1.18 Licensee shall pay to Licensor Earned Royalties in accordance with the following schedule: 
  

				
	 Period

	  	 Percent of Licensee’s
 Contract Revenue

	 
	 Date of the Agreement through March 31, 1997
	  	2	%
	 April 1, 1997 through March 31, 1998
	  	2	%
	 April 1, 1998 through March 31, 1999
	  	3	%
	 April 1, 1999 through March 31, 2000
	  	4	%
	 April 1, 2000 through March 31, 2001
	  	5	%
	 April 1, 2001 through March 31, 2002
	  	6	%
	 April 1, 2002 through March 31, 2003
	  	6	%
	 April 1, 2003 through March 31, 2004
	  	6	%
	 April 1, 2004 through March 31, 2005
	  	6	%
	 April 1, 2005 through March 31, 2006
	  	6	%
	 April 1, 2006 through March 31, 2007
	  	6	%

  
 8.2. The term
“Contract Revenue” shall mean all revenues which arise directly from the sale of Licensed Services and all products sold or installed in connection therewith in the Territory (as in effect from time to time) pursuant to this Agreement
(reflected by the sales contract amount plus or minus any Contract change orders), less (a) refunds, credits and allowances to customers; (b) financing discounts incurred in connection with the sale of Contracts; (c) sales to employees of Licensee
and its Affiliates; (d) sales, excise and other similar taxes; and (e) fees associated with building permits and other similar fees and expenses. Earned Royalties shall accrue on all Contracts completed during the applicable month. Completion shall
be deemed to have occurred when Licensee receives cash payment substantially in full in connection with a Contract (i.e., when Licensee is entitled to receive substantially all sums that Licensee reasonably can expect to collect on such Contract),
from the customer or from a third party financing source, as the case may be, or receives written customer acceptance with respect to any project financed by Licensee. In connection therewith, Licensee agrees and covenants that it shall use
reasonable best efforts to promptly collect all sums due to Licensee from Contracts. 
  
 8.3. All Earned Royalties shall be paid on a monthly basis prior to the twentieth day of the month following the end of the month in which accrued. Within 45 days after the end of each Year, Licensee shall prepare and
furnish to Licensor a reconciliation of all amounts paid with respect to Earned Royalties attributable to the preceding Year. 
  
 8.4. If the payment of any Earned Royalties is unpaid as of the due date for any reason, interest shall accrue on the unpaid principal amount of such
installment from and after the date the Earned Royalties become due pursuant to Section 8.3 hereof at the lower of (i) the highest rate permitted by applicable law, or (ii) two percent per annum above the Prime Rate. 
  

 -9- 

 8.5. Licensor shall have the right to terminate this Agreement upon not less than 90 days prior written
notice to Licensee in the event that during the preceding Year Licensee had less than the Required Revenue applicable to such Year, which notice must be given within 90 days following the end of such Year. The Required Revenue applicable to calendar
year 1998 shall mean aggregate accrued Contract Revenue (net of reasonable reserves), calculated in accordance with generally accepted accounting principles consistently applied, of at least $14,400,000. Required Revenue for each calendar year
subsequent to 1998 shall be computed by increasing the Required Revenue for the preceding calendar year by the percentage increase hi the Gross Domestic Product (as reported by the United States Bureau of Labor Statistics) for such preceding year
(for example, the Required Revenue for calendar year 1999 would be $14,400,000 increased by any increase in the Gross Domestic Product for 1998). 
  
 8.6. Notwithstanding the provisions of Sections 8.1, 8.2 and 8.3, following termination or expiration of this Agreement, Licensee shall pay Licensor
Earned Royalties on all Contract Revenue received on Contracts entered into prior to such expiration or termination at the Earned Royalty percentage in effect at the time of such expiration or termination promptly upon receipt of such Contract
Revenue. 
  

	9.	Referral Service Fee. Intentionally Deleted. 

  

	10.	Accounting. 

  
 10.1 Licensee shall at all times keep an accurate account of all operations within the scope of this Agreement. All Royalty payments made pursuant to
Section 8 shall be accompanied by a statement setting forth a full accounting of the calculation of Earned Royalties for such month, including all aggregate gross revenue payable for the Licensed Services and related products, and all exclusions
included in the calculation of Royalties. Such statements shall be in sufficient detail to be audited from the books of Licensee. Each statement furnished by Licensee shall be certified as true and correct by the chief financial officer of Licensee.

  
 10.2 Licensor and its duly authorized representatives, on
reasonable notice, shall have the right for the duration of the Term and for two years thereafter, to verify the accuracy of the amount of Royalties due by requesting a reasonable amount of documentation to be furnished to Licensor for such purpose,
and no more than once in each Year during the Term and for the two years thereafter, during regular business hours, to examine the books of account and records and all of the documents, materials and inventory in the possession or under the control
of Licensee and its successors with respect to the subject matter of this Agreement. All such books of account, records, and documents shall be maintained and kept available by Licensee for at least five Years. Licensor shall have free and full
access thereto in the manner set forth above and shall have the right to make copies and/or extracts therefrom. If as a result of any examination of Licensee’s books and records, it is shown that Licensee’s actual payments to Licensor
hereunder were less than the amount which should have been paid to Licensor, Licensee shall within three business days pay to Licensor the amount of any underpayment, with interest at the Prime Rate plus two percent from the date on which each
payment was due. In 

  

 -10- 

 
addition if it is shown that Licensee’s actual payments for the appropriate period were less than the amounts that should have been paid by an amount
equal to five percent (5%) or more of the amount which should have been paid for such period, Licensee shall within three business days reimburse Licensor for the cost of such examination. 
  

	11.	Infringement. 

  
 11.1 Licensee shall cooperate with Licensor, Century 21, and their respective Affiliates, to actively enforce against third parties the exclusive rights
furnished to Licensee hereunder, and the parties shall promptly notify each other in writing of any unauthorized uses which may be infringements by third parties of the Trademark which may come to the attention of the parties. Licensor and Century
21 shall each have the right to determine whether or not to take any action(s) it deems appropriate in its sole discretion against any third party with respect to any unauthorized use, infringement, or dilution of the Trademark, and Licensee shall
fully cooperate with Licensor and Century 21 in connection with any such actions. Without limitation, if Licensor or Century 21 so desires Licensor or Century 21 may bring any claims or suits in Licensor’s or Century 21’s own name or in
the name of Licensee or join Licensee as a party thereto so long as Licensor or Century 21 pays the costs and expenses thereof. 
  

	12.	Default. 

  
 12.1 Licensor shall have the right to terminate immediately this Agreement without affecting any other rights or remedies: 
  
 (i) immediately upon notice, if (a) any bankruptcy, or
insolvency proceedings should be commenced by Licensee or a substantial part of the assets or property of Licensee passes into the hands of any receiver, assignee, officer of the law or creditor or (b) any proceeding shall be instituted by or
against Licensee seeking to adjudicate it bankrupt or insolvent, under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, and, in the case of any such proceeding instituted against it (but not instituted by it), such
proceeding shall remain undismissed or unstayed for sixty (60) days; 
  
 (ii) immediately upon notice, if Licensee admits its inability to pay its debts as they become due; 
  
 (iii) immediately upon notice, if Licensee renounces, abandons or materially reduces its operations under this Agreement; 
  
 (iv) if Licensee fails to make any Royalty payment or any
other payment of money due hereunder and fails to cure the same within ten days of receipt of written notice thereof from Licensor; 
  
 (v) if Licensee otherwise fails to comply with any other material provision of this Agreement, including without limitation any provision
relating to quality control or 

  

 -11- 

 
compliance with applicable laws and fails to cure such default within (a) the time period applicable thereto under the terms of this Agreement, or (b) if no
time period shall be provided, then within thirty days of receipt of written notice from Licensor. In the event that any such non-compliance (A) shall not be remediable within such thirty day period then, provided that Licensee promptly commences
and diligently pursues such remedial steps as are necessary, Licensee shall have such additional time as is necessary to effect such remedy, but in no event more than an additional 90 days, or (B) shall be of a character which is not remediable such
default shall not be subject to cure by Licensee. 
  

	13.	Disposal of Stock Upon Termination or Expiration. 

  
 13.1 Upon the effective date of expiration or earlier termination of this Agreement by Licensor, Licensee shall immediately cease all use of, and shall
destroy, and effectively remove, the Trademark and all references thereto from all remaining unsold or returned products and related advertising, promotional, display and other materials bearing the Trademark or Trade Dress, whether or not the use
of such Trademark of Trade Dress is in compliance with this Agreement. 
  

	14.	Effect of Expiration or Termination. 

  
 14.1 It is understood and agreed that except for the License to use the Trademark only as specifically provided for in this Agreement, Licensee shall have
no right, title, or interest in or to the Trademark. Upon and after the expiration or earlier termination of this Agreement, all rights granted to Licensee hereunder, together with any interest in and to the Trademark which Licensee may acquire,
shall forthwith and without further act or instrument be assigned to and revert to Licensor. In addition, Licensee will execute any instruments requested by Licensor which are necessary to accomplish or confirm the foregoing. Any such assignment,
transfer, or conveyance shall be without consideration other than the mutual agreements contained herein. Licensee will refrain from further use of the Trademark or any further reference to the Trademark, direct or indirect, or any other trademark,
trade name, or logo that is confusingly similar to the Trademark. It is expressly understood that under no circumstances shall Licensee be entitled, directly or indirectly, to any form of compensation or indemnity from Licensor or its Affiliates, as
a consequence of the expiration or earlier termination of this Agreement, other than as a result of a material breach of this Agreement by Licensor, whether as a result of the passage of time, or as the result of any other cause of termination
referred to in this Agreement. Without limiting the generality of the foregoing, by its execution of the present Agreement, Licensee hereby waives any claim which it has or which it may have in the future against Licensor, Century 21 or any of
their” Affiliates, arising from any alleged goodwill created by Licensee for the benefit of any or all of the said parties or from the alleged creation or increase of a market for Licensed Services, or products sold or installed in connection
therewith. 
  
 14.2 Licensee acknowledges and admits that there
would be no adequate remedy at law for its failure to cease using the Trademark in connection with the marketing, sale or furnishing 

  

 -12- 

 
of Licensed Services or the sale or installation of any products in connection therewith at the expiration or earlier termination of the License, and
Licensee agrees that in the event of such failure, Licensor shall be entitled to equitable relief by the way of temporary, preliminary, and permanent injunction and such other and further relief as any court with jurisdiction may deem just and
proper. 
  
 14.3 Licensee agrees that it shall remain liable for
any and all obligations under the terminated or expired Agreement arising out of the operation of Licensee’s business prior to the expiration or earlier termination of this Agreement. 
  

	15.	Indemnity. 

  
 15.1 Licensee agrees that it will protect, defend, hold harmless and indemnify Licensor, Century 21, their respective Affiliates, successors, assigns,
directors, officers and employees, and their respective heirs and representatives from and against any and all claims, demands, actions, liabilities, damages, losses, fines, penalties, costs and expenses (including all reasonable attorneys’
fees and expenses) of any kind whatsoever (including without limitation of the foregoing, those relating to actual or alleged death of or injury to person and damage to property), actually or allegedly, directly or indirectly, arising or resulting
from or in connection with: 
  
 (i)
Licensee’s breach of any representation, warranty, or obligation under this Agreement; 
  
 (ii) Licensee’s carrying on its business, whether or not in connection with the use of the Trademark, including, but not limited to,
all allegations that the products, materials, or services provided by, prepared by, or distributed by or through Licensee constitute: 
  
 (a) libel, slander, or defamation; 
  
 (b) trademark infringement or dilution, other than in connection with the Trademark as used by Licensee hereunder in strict accordance
with the terms hereof, unfair competition or infringement of any statutory copyright, common law right, title or slogan; 
  
 (c) piracy, plagiarism, the misappropriation of another’s ideas, or unfair competition; and/or 
  
 (d) invasion of rights of privacy or rights of publicity;

  
 (iii) any actual or alleged defect in such
products or materials, whether latent or patent, including actual or alleged improper construction or design of such products or materials or the failure of such products or material to comply with specifications or with any express or implied
warranties of Licensee; 
  

 -13- 

 (iv) Licensee’s assembly or installation or application of products or materials
covered by this Agreement; 
  
 (v) all purchases,
contracts, debts, or obligations made by Licensee, including the breach of any Contract; 
  
 (vi) any third party financing utilized by Licensee in connection with this Agreement; 
  
 (vii) the omission or commission of any act, lawful or
unlawful, by Licensee or of any of Licensee’s agents or employees, whether or not such act is within the scope of employment of such agents or employees; or 
  
 (viii) the failure or alleged failure of Licensee to comply with any applicable law, statute, ordinance,
governmental administrative order, rule, or regulation. 
  
 The
provisions of this Section 15.1 shall survive expiration or termination of this Agreement. 
  
 15.2 Licensor shall indemnify and hold Licensee and its permitted assignees, directors, officers, servants, agents and employees harmless from and against any and all liabilities, claims, causes of action, suits,
damages and expenses (including reasonable attorneys’ fees and expenses) which Licensee is or becomes liable to a third party for, solely by reason of its use within the Territory of the Trademark in strict accordance with the terms and
conditions of this Agreement, to the extent that such liability arises through infringement of a third party’s trademark or copyright, provided that Licensee gives Licensor prompt notice of, and full cooperation in the defense against, such
claim. If any action or proceeding shall be brought or asserted against Licensee in respect of which indemnity may be sought from Licensor under this Section 15.2, Licensee shall promptly notify Licensor thereof in writing, and Licensor shall assume
and direct the defense thereof. Licensee may thereafter, at its own expense, be represented by its own counsel in such action or proceeding. 
  

	16.	Insurance. 

  
 Licensee shall carry liability insurance providing adequate protection with limits of liability in the minimum amount of $500,000 per occurrence and
$500,000 per person for any claims relating to the Licensed Services and all products sold or installed in connection therewith, or Licensee’s operation of its business. Licensor, CTM Holding Corp. and Century 21 shall be named therein as
insureds. The maximum deductible with respect to such insurance shall be $250,000. Licensee shall, promptly after the signing of this Agreement, deliver to Licensor a certificate of such insurance from the insurance carrier, setting forth the scope
of coverage and the limits of liability. 
  

 -14- 

	17.	Confidentiality: Non-Disclosure. 

  
 17.1 Licensor and Licensee, and their respective Affiliates, employees, agents, consultants, attorneys, accountants, financial advisors, and bankers,
shall hold in confidence and not use or disclose to any third party, except as permitted by this Agreement, any Confidential Information of the other party. Licensor and Licensee each acknowledges that the confidentiality of the terms of this
Agreement may not be able to be maintained in as much as HFS Incorporated may be required to file a copy of this Agreement as an exhibit to various reports filed with the Securities and Exchange Commission and the New York Stock Exchange, Inc. and
may be required to summarize this Agreement in the text of its Annual Reports on Form 10-K and in Notes to its Financial Statements. 
  
 17.2 Nothing herein shall prevent either party or any of its Affiliates, employees, agents, consultants, attorneys, accountants, advisors, or bankers (the
“Receiving Party”) from using, disclosing or authorizing the disclosure of any Confidential Information it receives: 
  
 (a) that becomes publicly available without default hereunder by the Receiving Party; 
  
 (b) that is lawfully received by the Receiving Party from a
source not, to the knowledge of the Receiving Party, under any obligation to the disclosing party regarding disclosure of such information; 
  
 (c) that the Receiving Party reasonably believes it is required by law to disclose, provided that the Receiving Party consults with the
other party prior to making such disclosure; 
  
 (d) to its attorneys, accountants, financial and investment advisors, bankers, or lending institutions, and other advisors and consultants of a similar nature, provided that such persons have an obligation to, or otherwise agree to, keep
such Confidential Information confidential. 
  
 17.3 Except for
references to the Trademark and the existence of this Agreement in the ordinary course of business, Licensee will not issue any publicity or press release regarding its contractual relations with Licensor hereunder or regarding Licensee’s
activities hereunder without obtaining Licensor’s prior written approval and consent to such release. 
  
 17.4 Any customer lists or prospective names provided to Licensee by Licensor or Century 21 (“Century 21 Lists”) shall be the property of
Licensor or Century 21, as applicable, and Licensee shall not use the same other than for purposes of selling Licensed Services under the Trademark in the Territory. Licensee agrees that it will not resell or use for telemarketing purposes (other
than the marketing Licensed, Services in accordance with this Agreement) any customer lists or prospective names obtained from any Century 21 List. Any customer information (including customer lists) developed by or acquired by Licensee itself or
its 

  

 -15- 

 
employees or agents, except as set forth above, during the term of this Agreement or thereafter, are deemed to be the property of Licensee. 
  

	18.	Dispute Resolution. 

  
 18.1 Licensor and Licensee agree to negotiate in good faith in an effort to resolve any dispute related to this Agreement. If any such dispute has not
been resolved within 10 days by negotiation, either party may resort to litigation. If the need for mediation arises, mediation services shall be conducted in Morris County, New Jersey or Dallas County, Texas, whichever relates most directly to the
subject matter of the dispute or bears the closest proximity to the information and documentation relevant to the dispute. 
  
 18.2 IN THE EVENT OF LITIGATION, EACH OF
THE PARTIES HEREBY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
OR CERTIFIED MAIL AT ITS ADDRESS SET FORTH BELOW AND AGREES THAT
ITS SUBMISSION TO JURISDICTION AND ITS CONSENT TO SERVICE OF PROCESS
BY MAIL IS MADE FOR THE EXPRESS BENEFIT OF THE OTHER PARTY.

  
 18.3 NOTWITHSTANDING ANYTHING
TO THE CONTRARY IN THIS SECTION 18, THE PARTIES EXPRESSLY AGREE THAT
EITHER MAY SEEK PROVISIONAL RELIEF, INCLUDING BUT NOT LIMITED TO TEMPORARY
RESTRAINING ORDERS AND PRELIMINARY INJUNCTIONS, IN ADDITION TO THE REMEDY OF
MEDIATION SET FORTH HEREIN. ANY SUCH ACTION FOR PROVISIONAL RELIEF SHALL
NOT CONSTITUTE A WAIVER OF THE RIGHT OR OBLIGATION TO MEDIATE. EACH
PARTY AGREES THAT IT SHALL BRING ANY SUCH ACTION FOR PROVISIONAL
RELIEF, OR ANY OTHER LITIGATION TO ENFORCE RIGHTS OR OBLIGATIONS UNDER
THIS AGREEMENT, IN (I) A FEDERAL COURT LOCATED IN THE STATE OF
NEW JERSEY, OR (II) A STATE COURT LOCATED IN MORRIS COUNTY, NEW
JERSEY, IF NONE OF THE FEDERAL COURTS IN NEW JERSEY HAVE JURISDICTION
OVER THE SUBJECT MATTER OF SUCH PROVISIONAL RELIEF AND/OR LITIGATION.
EACH PARTY HEREBY SUBMITS TO THE JURISDICTION OF THE STATE COURTS IN
MORRIS COUNTY, NEW JERSEY AND FEDERAL COURTS IN NEW JERSEY FOR ANY
SUCH RELIEF, IN ACCORDANCE WITH THE SERVICE PROVISIONS SET FORTH IN
SUBSECTION 18.2 HEREOF. 
  

	19.	Acknowledgments. The parties acknowledge that: 

  
 19.1 This Agreement is intended as a trademark sublicense only. 
  

19.2 Licensee is only a licensee of the Trademark in accordance with the terms of this Agreement. 
  
 19.3 Licensor and Century 21 are not in the business of developing,
operating, offering, selling, managing or warranting any aspect of the home improvement business. 
  
 19.4 Neither Century 21 nor Licensor exerts or asserts any control over Licensee or its operations, or the sale or provision of any Licensed Service, or
has prescribed any system or 

  

 -16- 

 
program of quality assurance, quality control, product or service specifications, product or service standards or product or service design. 
  
 19.5 Other than the use of the Trademark, Licensee is not dependent on any
services or assistance provided by Century 21, Licensor or any of their Affiliates to operate and maintain its business. 
  
 19.6 The parties have bargained at arms’ length in this transaction. 
  
 19.7 Other than its investment in the fees required to be paid hereunder, signage and written promotional materials,
Licensor is not requiring Licensee to invest in any specific assets in respect of this Agreement. Licensee’s decision to make an investment in any assets does not and will not relate to the existence of this Agreement. 
  
 19.8 Licensee will rely on its own marketing plan and system of operations
developed prior to the execution and delivery of this Agreement. Licensor has had no part in either prescribing or suggesting the marketing plan and system of Licensee. 
  
 19.9 The parties acknowledge that neither Century 21, Licensor nor any of their Affiliates will furnish to Licensee any
assistance in the acquisition, development, design, planning, selection of materials or methods used in the Licensed Services, or any other aspect of Licensee’s business nor will any such party furnish a method of operation on which Licensee
will be dependent with respect to its business organization, management, marketing plan, promotional activities or business affairs. Neither Century 21, Licensor nor any of their Affiliates will provide any telemarketing service. 
  
 19.10 Licensee shall determine, in its sole discretion, the site or location
of each office and facility used to provide Licensed Services in the Territory, its design and appearance, hours of operation, personnel policies and practices, promotional activities, personnel training, customer requirements, methods of
accounting, construction methods and general operation methods, subject only to the trademark-related standards and customer satisfaction obligations set forth in this Agreement. 
  

	20.	Miscellaneous. 

  
 20.1 All notices, requests, consents, and other communications hereunder shall be in writing and shall be deemed to have been properly given or sent (i)
on the date when such notice, request, consent, or communication is personally delivered or (ii) five days after the same was sent, if sent by certified or registered mail or (iii) two days after the same was sent, if sent by overnight courier
delivery or confirmed telecopier transmission, as follows: 
  
 (a) if to Licensor, addressed as follows: 
  
 TM Acquisition Corp. 
  

 -17- 

 c/o HFS Incorporated 
 6 Sylvan Way 
 Parsippany, NJ 07054 
 Attention: Executive Vice President and General Counsel 
 Telephone: 201-359-5266 
  
 with a
copy to: 
  
 (b) if to Licensee, addressed as
follows: 
  
 U.S. Remodelers, Inc. 
 3105 Skyway Circle North 
 Irving, Texas
75238 
 Attention: President 
 Telephone: 972-570-7705 
  
 with a copy to: 

 
 Jackson & Walker LLP 
 901 Main Street, Suite 6000 
 Dallas, Texas
75202 
 Attention: Charles D. Maguire, Jr., Esq. 
 Telephone: 214-953-5850 
  
 Anyone
entitled to notice hereunder may change the address to which notices or other communications are to be sent to it by notice given in the manner contemplated hereby. 
  
 20.2 Licensee shall operate in the capacity of an independent contractor. Nothing herein contained shall be construed to
place the parties in the relationship of partners or joint venturers or to constitute Licensee the agent of Licensor or any of its Affiliates, and no party hereto shall have any power to obligate or bind any other party hereto in any manner
whatsoever, except as otherwise provided for herein. 
  
 20.3 None
of the terms hereof can be waived or modified except by an express agreement in writing signed by the party to be charged. The failure of any party hereto to enforce, or the delay by any party in enforcing, any of its rights hereunder shall not be
deemed a continuing waiver or a modification thereof and any party may, within the time provided by applicable law, commence appropriate legal proceedings to enforce any and all of such rights. All rights and remedies provided for herein shall be
cumulative and in addition to any other rights or remedies such parties may have at law or in equity. Any party hereto may employ any of the remedies available to it with respect to any of its rights hereunder without prejudice to the use by it in
the future of any other remedy with respect to any of such rights. No person, firm, or corporation, other than the parties hereto and Century 21 and its Affiliates shall be deemed to have acquired any rights by reason of anything contained in this
Agreement. 
  

 -18- 

 20.4 This Agreement shall be binding upon and inure to the benefit of the successors and permitted
assigns of the parties hereto. Licensor may assign all of its rights, duties, and obligations hereunder to any Affiliate of Licensor, any entity having adequate rights with respect to the Trademark to grant this License on the date of such
assignment, or to an Affiliate of any such entity. The rights granted to Licensee hereunder are unique and personal in nature, and neither this Agreement nor the License may be directly or indirectly assigned by Licensee (including without
limitation by operation of law or by transfer of a controlling interest in Licensee or any other change in control of Licensee) without Licensor’s prior written consent, which shall not be unreasonably withheld. Any attempt by Licensee to
transfer any of its rights or obligations under this Agreement, whether by assignment, License or otherwise, other than as explicitly permitted pursuant to this Agreement, shall constitute an event of default of this Agreement, and shall be null and
void. Notwithstanding the foregoing, (a) Licensee may transfer or assign its rights and obligations granted hereunder in whole or in part to an Affiliate controlled by Licensee which Affiliate agrees in writing to be bound by the terms of this
Agreement and no such transfer or assignment shall relieve Licensee of its liability and obligation for performance of any transferred or assigned obligations hereunder; and (b) the sale of less than 50% of the voting equity securities of Licensee
outstanding following such sale pursuant to an underwritten public offering will not constitute a change of control of Licensee or a transfer of the License. 
  
 20.5 Licensee shall comply in all material respects with all laws, rules, regulations, and requirements of any governmental body which may be applicable
to the operations of Licensee contemplated hereby, including, without limitation, as they relate to the provision, sale, or promotion of Licensed Services or any products sold or installed in connection therewith, notwithstanding the fact that
Licensor may have approved such item or conduct. Licensee shall advise Licensor promptly upon obtaining knowledge that any Licensed Service or any such product does not comply with any such law, rule, regulation or requirement. 
  
 20.6 THIS AGREEMENT SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW JERSEY, APPLICABLE TO CONTRACTS MADE AND TO BE WHOLLY
PERFORMED THEREIN WITHOUT REGARD TO ITS CONFLICTS OF LAW RULES, AND
ANY APPLICABLE LAWS OF THE UNITED STATES. 
  
 20.7 The provisions hereof are severable, and if any provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such
invalidity or unenforceability shall affect only such provision, or part thereof in such jurisdiction and shall not in any manner affect such provision in any other jurisdiction, or any other provision in this Agreement in any jurisdiction. To the
extent legally permissible, an arrangement which reflects the original intent of the parties shall be substituted for such invalid or unenforceable provision. 
  

20.8 The Section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. 
  

 -19- 

 20.9 This Agreement constitutes the entire agreement among the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. 
  
 20.10 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. 
  
 20.11 If Licensee shall be
delayed or hindered in or prevented from the performance of any acts required hereunder by reason of strikes, lockouts, labor disputes, inabilites to procure materials (other than as a result of the financial condition of Licensee), riots, war, act
of God or other reason of a like nature not within the control of Licensee, the period of performance of any such act shall be extended for a period equivalent to such delay, provided, however, that: (a) none of the foregoing shall in any way excuse
or delay Licensee’s obligations to pay Earned Royalties and to comply with the quality standards hereunder; (b) Licensee shall use its best efforts to remove the cause of such delay as promptly as possible; and (c) in no event shall any period
of performance be delayed by more than 90 days in any 12 consecutive month period as a result of the foregoing events. Licensee shall promptly give Licensor written notice of the occurrence of any of the foregoing events for which it claims that it
is entitled to delay performance of any of its obligations hereunder. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement or caused the same to be executed by a duly authorized officer as of the day and year first above written. 
  

			
	TM ACQUISITION CORP.
		
	By:	 	 /s/ Illegible

	 	 	

	 	 	3/10/97

  

			
	U.S. REMODELERS, INC.
		
	By:	 	 /s/ Murray H. Gross, President

	 	 	

  

 -20- 

 EXHIBIT A 
  

TRADEMARKS 
  

	1.	CENTURY 21 

  

	2.	

  
 

 
  

 -21- 

 EXHIBIT B 
  

Market Areas 
  

					
	 City or State or Area

	  	 First Three Digits of Zip Code

			
	1.	  	Atlanta	  	300 to 303, 305 to 306
			
	2.	  	Ft. Lauderdale	  	330, 331, 333, 334, 349, 332
			
	3.	  	New York, Includes Long Island	  	100-119
			
	4.	  	 Baltimore, Maryland
 Washington DC
 Virginia
	  	 206 to 209, 210 to 219
 200 to 205
 220 to 229

			
	5.	  	Dallas	  	750 to 762
			
	7.	  	Southern Connecticut	  	064 to 066, 068 to 069

  
 Licensed
Services 
  
 Cabinet Refacing 
  

 -22- 

 Exhibit C 
  
 Home Improvement Products 
  
 Kitchen cabinet refacing and related products, which related products include, but are not limited to, countertops and replacement cabinets.

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