This Licensing Agreement is
entered into this 22nd day of March, 2001, by and among Famous
Fixin’s, Inc. (“Original Licensee”), a corporation organized
under the laws of the State of New York and having its principal place of
business at 000 Xxxx 00xx Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx
00000, Xxxxxxx Xxxxxxx (“Licensor”), an individual residing in the
State of New Jersey and X. Xxxxxxxx Company, an Ohio corporation with its
principal office at 0000 Xxxxxxx Xxxx, Xxxxx 000, Xxxxxxxx, Xxxx 00000
(“Licensee”).
WHEREAS, Original
Licensee and Licensor had entered into a Licensing Agreement dated March 1, 1997
under which Original Licensee received an exclusive license to utilize
Licensor’s name, photograph, depiction, characterization, likeness, voice,
image, biographical data, trademarks, logos and copyrights of Licensor for use
in conjunction with Greek specialty food products (“Products”); and
WHEREAS, Original Licensee has developed a line of Products pursuant to that Licensing Agreement; and
WHEREAS, Licensee is
in the business of manufacturing and selling salad dressing and sauce products
and has been manufacturing the Products which Original Licensee has been
marketing and selling; and
WHEREAS, the parties
now agree that the Products would be more effectively and efficiently marketed
and sold by Licensee;
NOW, THEREFORE, in
consideration of the mutual promises and undertakings contained herein, and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:
| 1. |
Termination of Prior Licensing Agreement. Effective March
31, 2001 the Licensing Agreement dated March 1, 1997 between Original Licensee
and Licensor is terminated. Original Licensee shall provide a final accounting
to Licensor within sixty (60) days of the date of termination. |
| 2. |
Product Formulas. Effective April 1, 2001 Original Licensee
hereby assigns to Licensee all right, title, and interest in and to the
formulas, trademarks, copyrights, and products label artwork (“Assigned
Materials”), currently used to manufacture the Products, reserving only its
right, title, and interest in the xxxx “Famous Fixin’s.” Original
Licensee shall deliver all Assigned Materials to Licensee within thirty (30)
days of the execution of the Agreement. |
| 3. |
Grant of License. Effective April 1, 2001 Licensor hereby
grants Licensee the exclusive right to use the name, photograph, depiction,
characterization, likeness, voice, image, and biographical data of Licensor and
the trademarks, logos, copyrights and all other authorized material owned or
controlled by Licensor (“Licensed Subject Matter”) in connection with
the development, manufacture, distribution, promotion, and sale of the Products
(the “License”). This License shall be effective worldwide from the
date first stated above until terminated in accordance with the terms and
conditions of Paragraphs 11 and 12 of this Agreement. |
| 4. |
Licensee’s Obligations. Licensee shall undertake to
use its best efforts to develop, manufacture, distribute, promote, and sell the
Products, provided, however, that Licensee shall in its sole and absolute
discretion have the right to determine: (a) the type and quantity of Products
developed and manufactured; (b) the markets in which the Products are
distributed and sold; (c) the manner of distribution and sale of the Products;
and (d) the volume and nature of advertising for the Products. Licensee shall
pay all costs and expenses in connection with the development, production,
manufacturing, packaging, shipping, distribution, sales and promotion of the
Products. All rights, titles, and interests in and to the Products, their
formulae and secret ingredients, and their packaging and labeling shall be, and
they are specifically and entirely reserved to Licensee and may be fully
exploited without regard to the extent to which such rights may be competitive
with this Agreement or the rights granted hereunder. Licensee shall reimburse
Licensor for all out of pocket expenses incurred in connection with pre-approved
personal appearances and other promotional activities undertaken by the Licensor
on behalf of Licensee. |
| 5. |
Licensor’s Obligations. Licensor has no obligation
under this Agreement except to consent to Licensee’s use of the Licensed
Subject Matter. Licensor will have no obligation to make personal appearances on
behalf of Licensee or to participate in photo shoots, recording sessions, or
other activities related to the promotion or marketing of the Products. Any and
all publicity regarding the Products shall be the responsibility of the
Licensee. Licensor may make incidental reference to Licensee or the Products so
long as it shall not be the primary purpose of the publicity, provided that
Licensor shall not make any mention of Licensee, Licensee’s Products, or
her engagement hereunder in a derogatory manner, nor may Licensor disclose any
trade secrets or confidential information (including without limitation the
terms of this Agreement). |
| 6. |
Quality Assurance. Licensee agrees that all use of the
Licensed Subject Matter shall be only upon the Products manufactured by or for
Licensee in accordance with quality standards approved by Licensor prior to the
commencement of manufacture of the Products. Licensee shall provide Licensor
with two production samples of the Products for Licensor’s approval as to
quality before the Licensed Subject Matter is embodied on any particular
Product. Licensee shall further submit for Licensor’s approval the artwork,
packaging design, advertising material, and all other materials to be used in
connection with the Products. Licensee agrees that it shall not manufacture or
sell the Products or use such materials without the prior approval of Licensor.
However, any sample or materials submitted to Licensor which have not been
disapproved in writing within thirty (30) business days after its receipt by
Licensor shall be deemed to have been approved. |
| 7. |
Compensation. In full and complete compensation to Licensor
and Original Licensee for entering into and performing the terms and conditions
of this Agreement, and provided that Licensor completely performs her
obligations hereunder, Licensee shall pay Licensor a license fee (the
“License Fee”) in an amount equal to three percent (3%) and Original
Licensee in an amount equal to two percent (2%) of all monies received by
Licensee, whether in cash or by check, note or other instrument (but if in other
than cash, only upon collection thereof), as revenue derived from sale of the
Products (the “Gross Receipts”) shipped by Licensee on or after April
1, 2001. If original Licensee is dissolved or otherwise terminates without a
successor, then the right to Original Licensee’s License Fee shall revert
to Licensor. |
| 8. |
Accounting. Licensee shall render a detailed accounting to
Licensor and Original Licensee on a quarterly basis within sixty (60) days after
the first day of January, April, July, and October. Each accounting shall show
both quarterly and cumulative Gross Receipts for the Products and shall be
accompanied by the payment in full of the Licensee Fee then due to Licensor and
Original Licensee. Licensee shall keep accurate books of account governing all
transactions relating to the Products, and Licensor, and Original Licensee or
her or its duly authorized representative, shall have the right at any time, but
in no event later than two (2) years after the date that an accounting is
rendered to Licensor and Original Licensee, at her or its sole expense, to audit
the books and records of Licensee with respect to the sale of the Products upon
reasonable notice to Licensee and in a manner not to unreasonably interfere with
Licensee’s business. Such payments and accounting shall be sent to Licensor
c/o Xxxxx Xxxxxx, 00 Xxxxxxxxx Xxxxx Xxxx, Xxxxx Xxxxxxxxx, Xxx Xxxxxx 00000 and
to Original Licensee at 000 Xxxx 00xx Xxxxxx, Xxxxx 0000, Xxx Xxxx,
Xxx Xxxx, 00000 |
| 9. |
Transition. No later than April 30, 2001, Licensee will pay
to Original Licensee an amount equal to the cost paid by Original Licensee for
the inventory of Products in the possession of Licensee on April 1, 2001 plus
the Six Thousand, Five Hundred Dollar ($6,500.00) deposit which Original
Licensee had paid to Licensee for License to maintain an inventory of Feta
cheese flavoring less the total amount of all unreimbursed freight charges
incurred by Licensee prior to April 1, 2001 for shipments of Products to
Original Licensee’s customers. If Licensee subsequently discovers
unreimbursed freight charges incurred for shipments prior to April 1, 2001 or if
Licensee incurs any deductions from customers which relate to shipments of
Products occurring prior to April 1, 2001, Licensee shall be entitled to deduct
such amounts from royalty payments owed to Original Licensee pursuant to this
Agreement. Licensee shall be entitled to commence solicitation of orders for the
Products on March 26th, 2001. No royalties shall be owed by Licensee for
Products shipped prior to April 1, 2001. However, any orders which have not been
shipped prior to April 1, 2001 may be shipped and invoiced by Licensee, even
though the order may have been received or obtained by Original Licensee and
Licensee shall pay the royalties set forth in Section 5 hereof. After the
execution of this Licensing Agreement, Original Licensee shall not enter into
any promotional activity or agree to any customer credits or allowances for
future purchases without the written consent of Licensee. Should Original
Licensee receive orders for Products or other correspondence related to the
Products on or after April 1, 2001, Original Licensee shall promptly forward
such orders or correspondence to Licensee. |
| 10. |
Warranties and Representations. Licensor represents,
warrants and convenants that (a) Licensor has the sole right, power and
authority to enter into and to perform the Agreement; (b) Licensor has not made,
nor will make, any agreement or commitment with any third party with respect to
the manufacture, distribution, promotion or sale of food products; (c) no rights
in the Products, their formulae and secret ingredients, or their packaging and
labeling are granted to Licensor and that Licensee reserves all rights therein;
and (d) Licensor shall cooperate fully with Licensee in the execution, filing,
and prosecution of any trademark or copyright application that Licensee may
choose to file. Original Licensee represents and warrants that it has not
entered into any rebate program with any customer and that it has not agreed to
any customer discounts or allowances which are not part of its normal sales
programs. |
| 11. |
Licensor Termination. Licensee may terminate the Agreement
upon forty-five (45) days written notice if: (a) Licensee breaches a material
term of this Agreement and fails to remedy said breach within thirty (30) days
of its receipt of written notice of the breach; (b) Licensee becomes insolvent
or files a petition in bankruptcy; (c) Licensee discontinues production and
distribution of the Products, or (d) Licensee or the Products become the subject
of public disrepute or scandal that affects Licensor’s image. However,
Licensee shall be entitled to sell any inventory remaining after termination of
this Agreement until such inventory is exhausted. |
| 12. |
Licensee Termination. Licensee may terminate this Agreement
upon forty-five (45) days written notice if (a) Licensor breaches a material
term of this Agreement and fails to remedy said breach within thirty (30) days
of her receipt of written notice of the breach; (b) Licensor becomes insolvent
or files a petition in bankruptcy; (c) Licensee determines in its sole and
absolute discretion to discontinue production and distribution of the Products;
(d) Licensor becomes the subject of public disrepute or scandal that affects
Licensor’s image; or (e) Licensor dies or suffers any disability impairing
Licensor’s ability to perform as an entertainer. |
| 13. |
Indemnification. The parties hereto shall indemnify,
defend, protect, and save and hold each other harmless from and against any and
all actions, claims, suits, losses, judgements, penalties, liabilities, damages,
costs and expenses, including, without limitation, reasonable attorneys’
fees and court costs, of whatever kind and nature imposed on, incurred by, or
asserted, made, brought, or made against each other arising out of a
party’s breach of any of its representations, warranties, or obligations
made pursuant to this Agreement, or through the gross negligence or intentional
acts of its officers, directors, employees, or representatives. |
| 14. |
Assignment. Neither Licensor nor Licensee shall assign this
Agreement without the prior written consent of the other party, except that
Licensee shall have the right to assign this Agreement to any wholly owned
subsidiary, or to any person, firm or corporation owning or acquiring a
substantial portion of Licensee’s stock or assets. |
| 15. |
Notices. Any notice to be hereunder shall be made in
writing and shall be sent by certified United States mail, return receipt
requested, postage prepaid. All notices to Licensor shall be sent to 000
Xxxxxxxx, Xxx. #0x, Xxx Xxxx, Xxx Xxxx 00000. All notices to Original Licensee
shall be sent to 000 Xxxx 00xx Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx
00000. All notices to Licensee shall be sent to X.X. Xxx 00000, Xxxxxxxx, Xxxx
00000. Any party may change the address for notifications by giving written
notice of such change to the other parties. |
| 16. |
Relationship of the Parties. Nothing in this Agreement
shall be construed to (i) give any party the power to direct or control the day
to day activities of any other; (ii) constitute the parties as partners joint
ventures, co-owners, or otherwise as participants in a joint or common
undertaking; or (iii) constitute Licensor, her agents, or employees as the
agents or employees of Licensee or to grant them any power or authority to act
for, bind or otherwise create or assume any obligation on behalf of Licensee for
any purpose whatsoever. |
| 17. |
Governing Law and Jurisdiction. This Agreement shall be
governed by, and construed and enforced in accordance with the laws of the State
of Ohio. Both parties further consent to the personal jurisdiction of the courts
of the State of Ohio, whether state or federal, and agree that all actions
concerning, arising out of, or based upon this Agreement shall be brought
exclusively in a state or federal court located in the State of Ohio. In the
event of any action, suit, or proceeding concerning, arising out of, or based
upon this Agreement brought by either party against the other, the prevailing
party shall be entitled to recover from the other its reasonable attorneys’
fees in connection therewith in addition to the costs of such action, suit, or
proceeding. |
| 18. |
Entire Agreement. This Agreement sets forth the entire
understanding of the parties with respect to its subject matter and supercedes
any and all negotiations, representations, or agreements between the parties. No
waiver, modification, or addition to this Agreement shall be valid unless
reduced to writing and signed by both parties. If any provision of this
Agreement shall be held void, voidable, invalid, or inoperative, no other
provision of this Agreement shall be affected as a result thereof, and,
accordingly, the remaining provisions of this Agreement shall remain in full
force and effect as though such void, voidable, invalid, or inoperative had not
been contained therein. Notwithstanding the foregoing, in the event any
provision held void, voidable, invalid, or inoperative impairs Licensee’s
right to manufacture, distribute, promote, or sell Products, then this Agreement
shall be deemed to terminate. |
IN WITNESS WHEREOF,
the parties have executed this Agreement in Columbus, Ohio on the 22nd day of
March 2001.
| FAMOUS FIXIN'S, INC. |
|
X. XXXXXXXX COMPANY |
| By: /s/ Xxxxx Xxxxx |
/s/ Xxxxxxx Xxxxxxx |
By: /s/ Xxxx X. Xxxxxxxx |
| Xxxxx Xxxxx, President |
Xxxxxxx Xxxxxxx |
Xxxx X. Xxxxxxxx
Executive Vice President |
