Common use of Development Area Clause in Contracts

Development Area. a. Subject to the terms and conditions of this Agreement, USI grants to Developer the right to establish U-Swirl Stores in the exclusive development area (the “Development Area”) specified in the Addendum to this Agreement (the “Addendum”), which is attached to this Agreement as Exhibit 1 and incorporated herein by reference. Developer accepts this grant and undertakes the obligation to develop and operate the U-Swirl Stores using the System and in compliance with USI’s standards. U-Swirl Stores in existence in the Development Area as of the Effective Date of this Agreement, if any, are excluded from Developer’s exclusive Development Area. b. During the term of this Agreement, and provided that Developer is in full compliance with this Agreement and any other agreements entered into by Developer and USI, USI will not establish, or grant a franchise to a third party to establish, any U-Swirl Stores in the Development Area. c. Each U-Swirl Store will be established and operated pursuant to a separate Franchise Agreement to be entered into between the parties. In this Agreement, the term “Franchise Agreement” means the then-current form of Franchise Agreement used by USI for granting franchises to franchisees, including area developers.