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COUNSELORS & ATTORNEYS

Jeffrey V.H. Sluggett Direct Dial: (616) 965-9341 Direct Fax: (616) 965-9351 Email: jsluggett@bsmlawpc.com

May 29, 2012

Via Email and 1st Class Mail


Frank M. Scutch, lll Price Heneveld. LLP 695 Kenmoor Avenue. SE.
P.O. Box 2567'

Grand Rapids, MI 49501-2567


Re: Trademarks, Logos, Etc.

City of Cedar Springs/Cedar Springs Red Flannel Festival


Dear Mr. Scutch:

This letter is sent with respect to the on-going discussions between the captioned parties. Specically. as you are aware, a number of proposals have been made relative to the respective rights of the parties to use the trademarks, logos, etc. associated with the Red Flannel Festival and the City of Cedar Springs.
In an effort to address the parties stated concerns, the ad hoc committee of the Cedar

Springs City Council has authorized me to convey the following offer which it is willing to recommend to the full City Council: Both parties would agree to release and waive any claim either might have as to the other with respect to the use of the trademarks. logos, etc. The Red Flannel Festival release would be contingent on the Citys agreeing to use the trademarks, logos, etc. for identication purposes only. The City would further agree not to use the trademarks. logos, etc. for commercial

(prot-orientated revenue) purposes without payment to the Red Flannel Festival.


The City would agree that it will immediately cease its use of all items bearing the
trademarks, logos, etc. at issue from City-related internet sites, business cards, and
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letterhead, and would phase out the use of the same as other items need to be replaced (e. g., city benches); the exception to this would be with respect to the use of the two trademarks, logos. etc. used historically by the City (ie, the inscription Red Flannel Town USA and the circular logo with red annel underwear with the inscription The Red Flannel Town Cedar Springs l\/Iichigan).

15 Ionia SW. Suite 640 . Grand Rapids . MI 49503 . t 616.965.9340 . f 616.965.9350 . www.bsm|awpc.corn

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FrankM.Scutch May29.2012

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TheproposaloutlinedaboveisconsistentwiththediscussionsyouandIhadearlierandI believefairlyreservestoeachpartytheprincipalpurposesforwhichthetrademarks,logos,etc. havebeenusedinthepast. I look forward to your response to this proposal. Should you have any questions about this letter. please do not hesitate to contact me. Verytrulyyours,

I effrey V.H. Sluggett

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