TRADEMARK AND RESEARCH LICENSE AGREEMENT
THIS
AGREEMENT is entered into the 2nd day
of September, 2009 by and between the IOWA CORN GROWERS ASSOCIATION, a
non-profit organization organized under the laws of the State of Iowa, having a
place of business at 0000 XX 00xx
Xxxxxx, Xxxxx 000, Xxxxxxxx, XX 00000, (“ICGA”), and ZEA
CAPITAL FUND LLC, a Delaware limited liability company, having a place of
business at 000 0xx Xxxxxx XX, Xxxxx 000, Xxxxx Xxxxxx, Xxxx 00000
(the "Company"
or the “Fund”).
WHEREAS,
ICGA is the sole and exclusive owner of the trademarks identified in Schedule A
attached hereto (the “Trademarks”) and has
the authority to grant the Fund the right, privilege and license to use the
Trademarks;
WHEREAS,
the Fund desires to utilize the Trademarks in the ordinary course of its
business;
WHEREAS,
ICGA desires to license to the Fund the non-exclusive right to use the
Trademarks in connection with such efforts;
WHEREAS,
ICGA maintains proprietary market research about the American farm
economy;
WHEREAS,
the Fund desires to obtain the use of the ICGA market research in the ordinary
course of its business for the purpose of understanding current economic metrics
affecting rural America and in determining trends in agriculture;
and
WHEREAS,
a continuing relationship with the ICGA, a premier United States commodity
producer organization, is important to the Fund’s business.
NOW
THEREFORE, in consideration of the promises and agreements set forth herein, the
parties, each intending to be legally bound hereby, do promise and agree as
follows:
1. GRANT
OF LICENSE
1.1 Subject
to the terms and conditions of this Agreement, ICGA hereby grants to the Fund,
for the Term of this Agreement, a non-exclusive license to use the Trademarks in
the Territory in connection with the Fund’s activities as an investment company
which elects to be treated as a business development company (the “Services”).
1.2 The
term “Territory” shall mean
The United States of America and such additional territories as mutually agreed
upon in writing by the parties during the term of this Agreement.
1.3 The
right and license granted to the Fund herein shall be non-exclusive and shall
not be assignable or transferable, nor shall the Fund have the right to grant
any sublicenses,
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except by
the prior written consent of ICGA. ICGA shall continue to have the
right to use the Trademarks and to license the use of same within the
Territory.
1.4 This
Agreement shall not be construed to grant the Fund any license or other right
except as expressly noted in this Agreement.
2. ACCESS
TO ICGA MARKET RESEARCH
2.1 Subject
to the terms and conditions of this Agreement, ICGA hereby grants to the Fund
access to the ICGA’s proprietary agribusiness market research (the “Research”).
2.2 The
Fund agrees that it shall have the right to use the Research solely for purposes
of the Fund’s internal evaluation of the farm economy. The Fund
agrees not to reproduce or disseminate the Research in any fashion, and the Fund
may not quote or refer to any of the Research to any third party (not including
the Fund’s board, the Fund’s investment advisor and the officers, employees and
agents of the Fund and its investment advisor) without the express written
approval of ICGA. The Fund acknowledges that the entirety of ICGA’s
market research and contacts as described in Section 3 constitute confidential
information subject to the provisions of Section 10 herein.
3. ACCESS
TO ICGA CONTACTS
3.1 To
the extent deemed appropriate by ICGA, in its sole discretion, ICGA will provide
the Fund with access to ICGA’s industry contacts and membership.
3.2 To
the extent and at the time deemed appropriate by ICGA, in its sole discretion,
ICGA will facilitate communication between the Fund and ICGA’s general
membership or particular portions thereof.
3.3 ICGA
will use commercially reasonable efforts to advise the Fund concerning
appropriate contacts of the Fund with other commodities groups.
3.4 In
order to facilitate ICGA’s quality control efforts with respect to the Fund’s
utilization of the Trademarks and the Research and access to ICGA members and
contacts, ICGA shall, during the Term of this Agreement, be entitled to have an
observer present at all meetings of the Fund’s board of directors.
4. COMPENSATION
4.1 In
consideration for the license granted hereunder, the Fund agrees to, during the
Term of this Agreement, pay to the party designated by ICGA and identified in
Schedule A hereto or as subsequently specified by ICGA in writing to the Fund
(the “Royalty
Payee”) an annual royalty of a fifteen-hundredths (0.15%) percent (the
“Royalty Rate”)
of the Fund’s Net Asset Value as reflected in the Fund’s audited financial
statements for the calendar year (the “Royalty”).
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4.2 The
Royalty owed the Royalty Payee shall be payable no later than thirty (30) days
after the issuance of the Fund’s audited financial statements by the Fund’s
independent auditors.
5. TRADEMARK
USAGE AND QUALITY CONTROL
5.1 The
Fund acknowledges the high level of quality associated with the Trademarks and
agrees that it shall maintain the same high level of quality in connection with
the Services and its use of the Trademarks and exercise of the rights granted to
it hereunder. The Fund agrees to comply with any commercially
reasonable requirements established by ICGA concerning the style, design,
display and use of the Trademarks.
5.2 The
Fund shall present a complete sample of any item representing a new, proposed
use of any Trademark to ICGA for its review and express, written approval prior
to any public use, distribution, or publication of same. No public
use, distribution, or publication of any new use of a Trademark may be made by
the Fund without the prior written approval of ICGA.
5.3 ICGA
shall have the right to delegate its approval rights hereunder to another person
or entity upon providing notice of such delegation to the Fund.
5.4 The
Fund shall at all times conduct itself in a lawful manner and in accordance with
all legal and regulatory requirements and business standards applicable to the
Services and its related activities.
6. TERM
AND TERMINATION
6.1 This
Agreement and the provisions hereof, except as otherwise provided, shall be in
full force and effect commencing on the date of execution by both parties and
shall extend for an initial term of twelve (12) months following the Fund’s
receipt of proceeds from the public offering of its shares (the “Initial
Term”). Thereafter, this Agreement shall continue in
effect for successive one-year terms (each, a “Renewal Term”) unless
either party notifies the other in writing within thirty (30) days prior to the
expiration of the Initial Term or Renewal Term then in effect, as applicable, of
its intent not to renew this Agreement (the Initial Term and Renewal Terms
collectively forming the “Term” of the
Agreement).
6.2 Either
party may terminate this Agreement upon thirty (30) days written notice to the
other party in the event of a breach of any material provision of this Agreement
by the other party, provided that, during the thirty (30) day period, the other
party fails to cure such breach. Further, either party may, by written notice to
the other party, immediately terminate this Agreement if the other party is or
becomes insolvent, is a party to any voluntary bankruptcy or receivership
proceeding, makes an assignment for a creditor, or there is any similar action
that affects the affairs or property of the such party; such party is the
subject of a petition for involuntary bankruptcy and such petition is not
removed within ninety (90) days; or ceases to carry on
business.
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6.3 ICGA
may terminate this Agreement upon sixty (60) days written notice to the
Fund.
6.4 Upon
the expiration or termination of this Agreement, all rights granted to the Fund
under this Agreement shall forthwith terminate and revert to ICGA, and the Fund
shall discontinue all use of the Trademarks in all Fund documents and materials
produced after termination and shall refrain from the use of any confusingly
similar trademarks, service marks or trade names, or colorable imitations of the
Trademarks. Furthermore, the Fund will, at the direction of ICGA,
either deliver to ICGA or destroy any remaining materials bearing the Trademarks
which have not been distributed prior to termination.
6.5 In
the event of termination, ICGA shall be entitled to its Royalty, payable pro
rata for the portion of the Initial Term or Renewal Term, as applicable, that
this Agreement was in effect, and payable within thirty (30) days after the
effective date of termination, and based upon the most recent annual audited
financial statements of the Fund.
7. INDEMNITY
7.1 ICGA
assumes no liability to the Fund or to third parties, including investors and
potential investors for the Fund, with respect to the performance
characteristics of the Services rendered by the Fund under the Trademarks or of
the Fund itself. The Fund hereby agrees to indemnify, defend,
release, discharge, and to hold harmless ICGA, its managers, members,
shareholders, owners, employees and agents, successors, assigns, heirs and
estates from any and all claims, demands, or damages, losses, expenses or costs
that the Fund or any of the Fund’s investors or potential investors may have or
incur and to assume, on behalf of ICGA and at the sole cost and expense of the
Fund, the entire defense (with counsel satisfactory to ICGA) of any legal
proceeding which may be brought against ICGA relating to or arising from,
directly or indirectly, or in any way related to the Fund’s use of the
Trademarks or the operation of the Fund, including reasonable attorneys’ fees
and costs.
7.2 The
Fund’s duty and obligation to indemnify ICGA under this section shall survive
the expiration or termination of this Agreement.
8. REPRESENTATIONS
AND WARRANTIES
8.1 Each
party represents and warrants that such party has the right to enter into this
Agreement and to grant the rights granted in it, and that the execution and
performance of this Agreement and the consummation of the transactions
contemplated by this Agreement have been duly authorized by the requisite action
on the part of the party and do not violate or breach, and will not result in
the termination, and do not require the modification, amendment, or
renegotiation, of any agreement binding upon the party.
8.2 ICGA
represents and warrants that it is the owner of the entire right, title, and
interest in and to the Trademarks; that it has the right and power to grant the
licenses granted herein; and that there are no other agreements with any other
party in conflict with such grant.
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9. OWNERSHIP
OF PROPERTIES
9.1 The
Fund does not and may not claim any right, title or interest in or to the
Trademarks and acknowledges that all rights therein are and remain the property
of ICGA. The Fund will not at any time do or cause to be done any act
or thing contesting or in any way impairing or tending to impair any part of
such right, title, and interest. Without limiting the preceding, the
Fund shall not attempt to register the Trademarks alone or as part of its own
trademarks nor shall the Fund, during the term of this Agreement or following
the termination hereof, use or attempt to register any confusingly similar
trademarks, service marks or trade names, or colorable imitations of the
Trademarks. The Fund acknowledges that use of the Trademarks shall
inure to the benefit of ICGA. The Fund shall not at any time adopt or
use, without ICGA’s prior written consent, any word or xxxx which is likely to
be similar to or confusing with the Trademarks.
9.2 The
Fund acknowledges that, from time to time and without notice to the Fund, ICGA
has the ability to modify elements of the Trademarks, to add additional elements
to the Trademarks, or to discontinue use of some or all elements
thereof. Accordingly, ICGA does not represent or warrant that the
Trademarks or any elements thereof will be maintained or used in any particular
fashion or for any period of time. Any new or modified elements
developed by ICGA following execution of this Agreement shall be included in the
definition of Trademarks.
10. CONFIDENTIAL
INFORMATION
Each
party shall maintain in confidence any information received from the other party
and identified as confidential or otherwise protected and shall neither publish,
disseminate nor disclose such information to any third party, nor use such
information except for the furtherance of the purposes of this Agreement,
without the express written permission of such other party. The
obligations of the first sentence of this paragraph shall not apply to any
information which:
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(1)
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is
now or hereafter comes into the public domain otherwise than by breach of
this Agreement;
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(2)
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is
already in the possession of the receiving party other than as a result of
having received it from the disclosing party and as shown by written
records;
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(3)
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is
brought to the receiving party by a third party who does not require that
it be maintained confidential by the receiving
party;
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(4) by
mutual agreement is released from confidential status; or
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(5)
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the
receiving party is required by law to release, provided that the
disclosing party is given advance written notice of such requirement by
the receiving party so that the disclosing party may contest or limit such
release.
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11. JURISDICTION
AND DISPUTES
This
Agreement shall be governed in accordance with the laws of the State of
Iowa. All disputes under this Agreement shall be resolved by the
state or federal courts of the State of Iowa.
12. FORCE
MAJEURE
Neither
party shall be liable for any loss or delay resulting from any force majeure
event, including acts of God, fire, natural disaster, terrorism, labor stoppage,
war or military hostilities, or inability of carriers to make scheduled
deliveries, and any payment date shall be extended to the extent of any delay
resulting from any force majeure event.
13. MISCELLANEOUS
13.1 Headings: The
subject headings of the paragraphs and subparagraphs of this Agreement are
included for the purpose of convenience only, and shall not affect the
construction or interpretation of any of its provisions.
13.2 Number and
Gender: The use of any gender pronoun shall be deemed to
include all other genders, and the use of any singular noun, pronoun, or verb
shall be deemed to include the plural, and vice versa, whenever the context
plainly requires.
13.3 Agreement Binding on
Successors: The provisions of this Agreement shall be binding
on and shall inure to the benefit of the parties hereto, and their heirs,
administrators, successors and assigns.
13.4 Waiver: No
waiver by either party of any default shall be deemed as a waiver of prior or
subsequent default of the same or other provisions of this
Agreement.
13.5 Severability: If
any term, clause, or provision hereof is held invalid or unenforceable by a
court of competent jurisdiction, such invalidity shall not affect the validity
or operation of any other term, clause or provision and such invalid term,
clause or provision shall be deemed to be severed from the
Agreement.
13.6 Assignability: The
license granted hereunder is personal to the Fund and shall not be transferred
or assigned by any act of the Fund or by operation of law except with the prior
written consent of ICGA.
13.7 No Remedies
Exclusive: Unless expressly stated to be exclusive, no remedy
conferred herein shall be deemed to be exclusive of any other remedy conferred
herein or any other remedy now or hereafter available at law or
equity. All remedies conferred herein, and all remedies now or
hereafter available at law or equity, shall be deemed to be cumulative and not
alternative, and may be enforced concurrently or successively. The
exercise of (or failure to
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exercise)
any one or more remedies shall not operate as a waiver of, or constitute a bar
to, the exercise of any other remedies.
13.8 Interpretation: The
parties agree that each party and its attorneys have reviewed and revised this
Agreement and that the normal rule of construction, to the effect that any
ambiguities are resolved against the drafting party, shall not be employed in
the interpretation of this Agreement. The words “hereof,” “herein,”
“hereunder,” and other words of similar import refer to this Agreement as a
whole. All exhibits and schedules attached or to be attached hereto,
and all other agreements and instruments referred to herein, are hereby
incorporated by reference into this Agreement, as fully as if copied herein
verbatim. The word “party” or “parties” means only those persons or
entities who are signatories to this Agreement. The parties hereby
agree the recitals contained at the beginning of this Agreement shall be
substantive provisions of this Agreement.
13.9 Integration: This
Agreement constitutes the entire understanding of the parties, and revokes and
supersedes all prior agreements between the parties and is intended as a final
expression of their Agreement. It shall not be modified or amended
except in writing signed by the parties hereto and specifically referencing this
Agreement. This Agreement shall take precedence over any other
documents which may be in conflict with said Agreement.
13.10 Counterparts: Any
number of counterparts of this Agreement may be executed by execution of
separate signature pages by each of the respective parties. Each such
counterpart thus executed shall be deemed to be an original instrument but all
such counterparts together shall constitute but one agreement.
[Signature
Page Follows]
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IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have
each caused this Agreement to be executed and delivered by a duly authorized
representative, as of the date first set forth above.
IOWA CORN
GROWERS ASSOCIATION
By: /s/ Xxxxx X.
Floss
Name: Xxxxx X.
Floss
Title: CEO
By: /s/ Xxxx X.
Xxxxxxx
Name: Xxxx X.
Xxxxxxx
Title: Chairman of the
Board
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Schedule
A
I. Trademarks
1) IOWA
CORN GROWERS ASSOCIATION
2) IOWA
CORN GROWERS ASSOCIATION and Design:
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U.S.
Registration No.
II. Royalty
Payee
For the purposes of payment of the
Royalty specified in section 2 herein, ICGA hereby designates as the Royalty
Payee and directs the Fund to make all Royalty payments to Iowa Corn
Opportunities, LLC at the following address:
Iowa Corn
Opportunities, LLC
0000 XX
00xx
Xxxxxx; Xxxxx 000
Xxxxxxxx,
XX 00000
ICGA
expressly reserves the right to modify and amend the designation made herein
during the Term of the Agreement and to designate other party(ies), including
ICGA, as the Royalty Payee(s) in its sole discretion.
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