Sierra Club, Inc. - Page 20




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               The description of services attached to the SC-ABS                     
          agreement (ATTACHMENT “A”) recites that members who become                  
          cardholders will receive a credit card with the name of                     
          petitioner on one side and a "logo or other design of SC" on the            
          reverse side.  Also, Article 9 of the SC-ABS agreement                      
          (hereafter, Art. 9) provides that, if ABS defaults, it must                 
          immediately cease using petitioner's name and marks.  In light of           
          the provisions cited, we view ABS's agreement that it will obtain           
          prior written consent from petitioner for use of its name or                
          marks (Article 3.5) as a provision regulating ABS's use of those            
          items and preserving petitioner's property interests therein.               
          Similarly, we view petitioner's right to advise and consent with            
          regard to the marketing materials prepared by ABS (see                      
          Article 4.3) as a right intended to safeguard petitioner's name,            
          marks, logo, and the other intangibles (such as facsimile                   
          signatures of petitioner’s officers) used in marketing the credit           
          card program.                                                               
               The SC-ABS agreement further implicitly provides that ABS              
          will be allowed access to the members.  The parties have                    
          stipulated that petitioner provided lists of the members directly           
          or indirectly to ABS in connection with the credit card program.            
          The preamble to the SC-ABS agreement recites that the parties               
          thereto “desire to make available to the members of SC” the                 
          services to be offered by ABS.  Article 3.3 entitles ABS to offer           
          additional services to the members and, if ABS defaults, Art. 9             
          requires ABS to cease communicating with the members.  Thus,                

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Last modified: May 25, 2011