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8/26/12

the red flannel festival

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the red flannel festival


21E.MapleSt.,P.0.Box43,CedarSprings,Ml.49319Phone(616)6962662 www.redf|annelfestival.orgFax(616)6968413

Dear City Council Members: The City Ad Hoc Committee (Mayor Charlie Watson, Mayor Pro Tem Christine Fahl and Councilor Patricia Capek) and RFF Ad Hoc Committee (Michele Andres, Nick Andres and Rand Ruwersma) have

met several times over the past six months, beginning in January 2012. These meetings have been unsuccessful in resolving the trademark infringement issue, although the RFF Ad Hoc Committee has presented several fair and reasonable offers. The RFF Board of Directors signed an agreement in 2011 agreeing to pay for City services for the annual Red Flannel Festival, not to exceed $8,000 until 2015. We want to be clear that this agreement to pay for services is not in dispute and we intend to honor it. The real issue and matter at hand is the infringement of trademark usage and the many different RFF State
and Federal trademarks being used by the City. Simply, what is the licensing agreement with the Festival

going to be?
The RFF Ad Hoc Committee has been consistent since last December, in willing to allow the City usage of all CURRENT trademarks in exchange for City services and have the arrangement return to as it was" prior to last year. That offer has continuously been rejected by the City Ad Hoc Committee.

The RFF Ad Hoc Committee also agreed on April 4 to an offer presented by the City Ad Hoc Committee of
$4,000 and Citys use of 2 trademarks of its choice. Mayor Watson presented this offer as early February,

stating the amount of $4,000 would not be a problem. At that meeting, the City Ad Hoc Committee agreed to send a written proposal, but none was received and emails were not responded to. Due to the lack of communication as promised on April 4, the RFF Board of Directors reluctantly decided
to send a Cease and Desist to the City on May 28, 2012, prompting the meeting on June 7, 2012 with

both Ad Hoc Committees and their attorneys. All of the offers presented at that meeting by the RFF Board of Directors were rejected, and no new offers were or have been submitted by the City Ad Hoc Committee.
The offers discussed included:

I. Barter city service fees for usage of all RFF trademarks 2. $3,000 (or approx. half of the $5,600 cut from the 2011 budget) of city service fees for use of 2
RFF trademarks of Citys choosing Other than the Mayoral letter read at the Council meeting, there has not been any communication since June 7.
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8/26/12

the red flannel festival

In an on-going, sincere effort to resolve this situation for the entire community, the RFF Board of Directors would like to propose to accept immediately to barter city service fees for usage of all RFF trademarks. We feel this is the most fair, equitable and reasonable compromise for the City and the Festival.

Secondly, the RFF Board of Directors proposes to accept immediately the Citys offer of half of the
services (not to exceed $3,000) in exchange for licensing for 2 RFF trademarks of the Citys choice. The RFF Board of Directors feels that this is also a fair and reasonable compromise.

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The three options Mayor Watson outlined in his letter:

1. The City and Festival Board agree to the last proposal sent by the City to the Festival. After the Cease and Desist letter, we received an offer from the City that they could not afford to
pay the $4,000 they h ad promised, even though Mayor Watson had insisted was not a problem since early February and wanted to use two trademarks for informational purposes. This offer

is that the City cannot afford any services to the Festival and wants to use two trademarks. We
do not believe this is a fair and equitable solution for the long-term sustainability of the Red Flannel Festival and its assets. 2. We do as ordered by the Festival and stop using the logos all together. Then we create anew logo

for Cedar Springs.


The Festival certainly feels this is not a win/win scenario for the City, the Festival or the community. In addition to the cost of removing and replacing the trademarks, the Festival has

been more than willing since December 2011 to provide a licensing agreement to the City for
use of all or a portion of the trademarks. 3. Or do what I suggested to the Festival last year (that they were opposed to at the time). Put it on the ballot and let the voters (who have to pick up the bill) decide." The Festival does not agree that this is a win/win scenario. A millage, requesting only the taxpayers of the City of Cedar Springs to pay the additional $8,000 is simply unfair. For one thing, Mayor Pro Ten: Fahl said she did not know how much the services actually cost and wh at the fees actually were. ,Secondly, the Festival has already agreed to pay these erroneous fees through 2015. Mayor Pro Tem Fahl also stated in the June 7 meeting that the City has spent more on attorney fees than either proposed agreement. Why add an additional tax burden when apparently the City has the money to pay attorney fees?

We are ever hopeful with your entire Council involvement, there can be a swift and positive resolution to
this trademark issue that benets both parties. Without it, you will leave the RFF Board no alternative but

to proceed in ling suit.


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On behalf of the entire Red Flannel Festival Board of Directors,

Michele Andres President

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