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EXHIBIT 10.6
STANDARD LICENSE AGREEMENT
SERTA, INC.
THIS AGREEMENT, dated this 4th day of November 1989 by and between SERTA,
INC., a Delaware corporation (hereinafter referred to as "Serta"), and
Palm Beach Bedding Co.
(check as appropriate)
/X/ corporation / / partnership
/ / sole proprietorship / / limited partnership
a Florida corporation, (hereinafter referred to as "Licensee").
W I T N E S S E T H
WHEREAS, Serta is a service corporation serving related companies which
are in the business of manufacturing and selling mattresses, other bedding
products and other products of any kind or nature; and
WHEREAS, Serta has heretofore adopted. or otherwise acquired, and now
owns, uses, advertises and authorizes the use and advertising of certain
tradenames, trade-marks and labels identifying the aforementioned products and
by reason thereof has created valuable good will in connection with the
manufacture and sale thereof under said trade names, trade-marks and labels; and
WHEREAS, Serta licenses persons, firms and corporations to manufacture the
aforementioned products under standard specifications covering the method or
process of the manufacture thereof, the quality of worksmanship employed in such
manufacture and the quantity and quality of the materials entering in such
manufacture, and to attach or otherwise affix thereto and to the containers in
which the same are packaged, the trade names, trade-marks and labels of Serta
(such products so manufactured and identified are hereinafter referred to as
"Serta products"); and
WHEREAS, Licensee desires to obtain from Serta a license to manufacture
and sell Serta products as a related company of Serta; and
WHEREAS, Licensee has agreed to comply with the provisions of this
agreement and with Serta's by-laws, specifications, rules, resolutions and
regulations covering the manufacture and sale of Serta products and the use of
said trade names, trade-marks and labels now and hereafter in force and effect;
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NOW, THEREFORE, in consideration of the premises and of other good and
valuable considerations, and in further consideration of the covenants
hereinafter contained to be kept and performed by the parties hereto, it is
agreed as follows:
1. (a) Serta hereby gives to Licensee, under the terms and conditions
hereinafter set forth, the right to manufacture and sell Serta products in
accordance with and subject to Serta's by-laws, rules, regulations, resolutions
and specifications from time to time adopted or established by Serta. If at any
time or times hereafter Serta shall adopt or otherwise acquire any additional
trade name, trade-xxxx or label identifying any of the aforementioned products,
such trade name, trade-xxxx or label shall be deemed and treated to be included
within the scope of this agreement.
(b) This agreement shall become effective on November 4, 1989 and
shall remain in force and effect until terminated by the mutual written
agreement of Serta and Licensee or under any of the provisions hereinafter set
forth.
2. Licensee shall have the right to manufacture Serta products pursuant
to this agreement only in the following territory:
The territory outlined in red on the attached map.
(hereinafter referred to as the "manufacturing territory"). Serta shall not,
during the term of this agreement, suffer or permit any other person, firm or
corporation to manufacture Serta products in said manufacturing territory;
provided, however, that Serta may authorize other persons, firms or corporations
to manufacture Serta products other than mattresses and box springs for the sole
purpose of supply and shipment thereof to Serta licensees with exclusive
manufacturing territories in the United States (hereinafter sometimes referred
to as "U.S. primary licensees").
3. Licensee's manufacturing territory shall be deemed and treated to be
its Area of Primary Responsibility for the promotion and sale of Serta products.
Licensee shall at all times exert its best efforts to obtain maximum sales of
Serta products in said manufacturing territory. If Licensee shall not meet such
minimum quota of sales of Serta products in its manufacturing territory as may
from time to time be provided in Serta's by-laws under a plan uniformly
applicable to all U.S. primary licensees, such a failure may be deemed and
treated by Serta to be an event of default by Licensee hereunder.
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4. Nothing herein contained shall be deemed or treated to limit or
restrict Licensee in any substantial way from selling Serta products to any
person, firm or corporation or from selling and delivering Serta products
anywhere in the United States of America; provided, however, that if, pursuant
to any modification of the Final Judgment entered in the cause of action
entitled "LIMITED STATES OF AMERICA vs SERTA ASSOCIATES, INC., Xx. 00 X 0000, XX
XXX XXXXXX XXXXXX DISTRICT COURT, NORTHERN DISTRICT OF ILLINOIS, EASTERN
DIVISION" or to any legislation by the Congress of the United States, it shall
become lawful and proper at any time hereafter for Serta to give and grant to
its U.S. primary licensees exclusive sales territories, then in any such event,
upon the written approval of not less than two-thirds (2/3) of its U.S. primary
licensees, Serta may, by written notice to such licensees constitute their
respective exclusive manufacturing territories as exclusive selling territories.
In such event, the Licensee shall abide by and comply with the by-laws of Serta
from time to time adopted by its stockholders to implement, protect and control
the exclusivity of such selling territories.
5. In order to control the nature and quality of Serta products, and to
provide for the proper and effective establishment of policy for and
administration of the business of Serta, a complete set of by-laws, rules,
regulations, resolutions and specifications pertaining to the manufacture and
sale of Serta products is presently in full force and effect and is on file at
the principal office of Serta, Inc. Licensee shall comply with the by-laws,
rules, regulations, resolutions and specifications now and hereafter adopted or
established by Serta or its stockholders.
6. Licensee shall at all times own and hold such number of shares in
Serta as may be required by Serta's by-laws under a plan uniformly applicable to
all U.S. primary licensees. Licensee shall pay any and all fees and assessments
levied against stockholders under any plan approved by Serta's stockholders in
accordance with the by-laws from time to time in force and effect.
7. Serta shall defend any and all litigation to which Licensee may be
made a party arising out of its proper use of the trade names, trade-marks and
labels from time to time adopted by Serta or arising out of the alleged
infringement by Licensee of any patent specified by Serta in connection with the
method of manufacturing Serta products or the proper use of any articles or
materials specified by Serta in the manufacture of such products, provided
Licensee gives Serta timely written notice of any such litigation so as to
enable Serta to appear in such litigation and prepare for the defense thereof,
Serta hereby agrees to save the Licensee harmless from any and all loss, costs
or damages sustained by it arising out of any such litigation, provided that
Licensee gives Serta the notice herein provided and is not in default in the
performance of any of the terms, covenants and conditions hereof.
8. Licensee shall not permit or suffer any of its officers, employees
or agents to injure the good will and business of Serta and Serta trade names
and trade-marks by discrediting the Serta products, the selling policies, the
financial responsibility or the business reputation of any other Serta Licensee.
9. Licensee shall not violate the provisions of said Final Judgment
described in paragraph 4 above, or any modification thereof.
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10. (a) Neither this license nor any of the rights or privileges granted
to the Licensee hereunder shall be assignable by Licensee or by operation of law
or otherwise to any other person, firm or corporation. Licensee shall not
sub-license or sub-contract any of said rights or privileges, including, but not
in limitation, the right to manufacture Serta products, to any other person,
firm or corporation whomsoever. Notwithstanding any other provision of this
agreement, any such assignment or sub-license shall forthwith terminate, without
notice, the license hereby granted to Licensee and the rights and interests of
Licensee as a stockholder of Serta and any such sub-contract shall constitute a
default referred to in paragraph 11 below,
(b) For the purpose of this paragraph 10(b), and paragraphs 10(c)
and 10(d) below, the following definitions shall apply:
"Affiliate" of an individual, corporation or partnership shall mean
any person which directly or indirectly controls, is controlled by, or is
under common control with such individual, corporation or partnership and
any person who is an employee of such individual, corporation or
partnership, a partner in such partnership or an officer or director of
such corporation. For the purposes of this definition, "person" means any
individual, corporation, partnership or joint venture, trust,
unincorporated association or any other entity, body, organization or
group.
"Control partner" shall mean (individually and collectively and
singly or in the aggregate with affiliates) the partner or partners of a
partnership having the power, directly or indirectly, to direct or cause
the direction of the management and policies of the partnership and having
the authority to bind the partnership.
"Control stockholder" shall mean (individually and collectively and
singly or in the aggregated with affiliates) the owner or owners of the
majority shams in a corporation or those shareholders exercising effective
voting control of a corporation pursuant to any written agreement.
"General partner" shall mean the holder of a general partnership
interest in a partnership.
"General partnership interest" shall mean the interest of a general
partner in a partnership.
"Limited partner" shall mean the holder of a limited partnership
interest in a limited partnership.
"Limited partnership interest" shall mean the interest of a limited
partner in a limited partnership, partnership interest coupled with an
interest" shall mean a limited partnership interest held by a limited
partner of Licensee, if Licensee is a limited partnership, which limited
partner either directly or through an affiliate shall (i) hold or shall
have any direct or indirect right to acquire an interest as, or any
material participation in the right of control in, the control partner of
Licensee, whether or not such right shall be exercisable only in the
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event of a contingency, as, for example, foreclosure of a security
interest granted in connection with any loan, advance or financial
contribution or guaranty made by or an behalf of such limited partner or
(ii) shall have any power to initiate the removal of or to remove a
control partner of Licensee or to otherwise designate any successor
control partner of Licensee.
"Majority shares" shall mean such number of the voting shares in a
corporation as shall amount to more than one-half thereof.
"Voting shares" shall mean the issued and outstanding voting shares
in a corporation and the voting rights or beneficial interest in its
voting shares.
Each of the following events shall be deemed and treated to be an
assignment of this license prohibited by the provisions of paragraph 10(a) next
preceding:
(i) The filing by Licensee, or by the control stockholder of
Licensee, or by the control partner of Licensee of a voluntary
petition or similar pleading under any section or sections of any
Bankruptcy Act or in any Court to declare Licensee, or such control
stockholder or control partner, insolvent;
(ii) An assignment for the benefit of creditors by Licensee or
by such control stockholder or control partner;
(iii) The filing against Licensee or such control stockholder
or control partner of an involuntary petition or similar pleading
under any section or sections of any Bankruptcy Act or any
involuntary petition or similar pleading in any court to declare
Licensee or such control stockholder or control partner insolvent,
or the appointment of a receiver for Licensee or its assets or for
such control stockholder or its assets or such control partner or
its assets provided, however. that if such petition or pleading
shall be dismissed or withdrawn, or such appointment shall be
vacated within thirty (30) days after the filing or occurrence
thereof, the provisions of this paragraph 10(b) (iii) shall not
apply; and
(iv) The happening of any event described in subparagraphs (i)
through (iii) above in respect to one or more persons comprising the
control stockholder or control partner which results in a material
change in the control stockholder or control partner shall be deemed
to have occurred in respect of such control stockholder or control
partner for purposes of this License Agreement.
(c) Subject to the provisions of paragraphs 10(d) and 10(e) below,
each of the following events shall likewise he deemed and treated to be an
assignment of this license prohibited by the provisions of paragraph 10(a)
above:
(i) The transfer whether voluntary or involuntary, by sale, by
operation of law, or otherwise, of the majority shares in Licensee
or of the general partnership
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interest of the control partner of Licensee or the limited
partnership interest coupled with an interest of any limited partner
of Licensee,
(ii) The transfer of control from, or any material
participation 'in the fight of control in (i.e., the power, directly
or indirectly, to direct or cause the direction of the management
and policies of the control partner or limited partner and bind the
control partner or limited partner) the control partner or any
limited partner with a limited partnership interest coupled with an
interest.
(iii) The exchange of the majority shares in Licensee for less
than the majority sham in another corporation pursuant to a merger
with, consolidation into or other form of reorganization involving
another corporation.
(iv) The transfer of the majority shares in Licensee by the
control stockholder to another person or persons by successive
transfer of such number of voting shams in Licensee as will total
the majority shams in Licensee, or as the result of the issuance or
successive issuances of additional voting shares in Licensee, or as
the result of the sale or successive sales of treasury shares by
Licensee for cash or other consideration or in satisfaction of any
debt or debts of Licensee, or as consideration for the acquisition
of shares or other interests in another corporation, firm or
proprietorship, or as the result of the merger of another
corporation into the Licensee, or as the result of any combination
of the foregoing events. Two or more transfers or issuances of
voting shares in Licensee shall be deemed and treated to be
successive transfers or successive issuances regardless of the
period in which the same shall be effected.
(v) If the majority shares in Licensee are owned directly or
indirectly, by another corporation and any event hereinabove set
forth in paragraph 10(c) shall occur in respect of such corporation,
the occurrence of such event shalle6eemed and treated to bean
assignment of lease prohibited the provisions of paragraph 10(a)
above, with the same force and effect as if such event had occurred
with respect to Licensee.
(d) Transfers to the following described classes of persons shall
not be deemed or treated to be transfers for purposes of paragraph 10(c) above
provided, however, that the shares, or interests of such transferees shall
continue to be included among the shares or interests in Licensee for the
purpose of this paragraph 10:
(i) The spouse, father, mother, brothers, sisters, children or
grandchildren of the transferor, including, but not in limitation,
such persons as are so related through adoption.
(ii) A donee by bona fide gift or a legatee or heir through
inheritance, in trust or otherwise, of a transferor.
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(iii) An individual or individuals who shall acquire their
voting shares or general partnership interest or limited partnership
interest in Licensee pursuant to a contract or contracts in force
and effect on the date of execution of this license; provided that
concurrently with the execution of this license, Licensee furnishes
to Serta true and correct copies of such contract or contracts along
with a written statement setting forth the date of the execution of
any such contract or contracts, the persons signatory thereto and
their addresses and the number of voting shares or the number and
percentage interest of die general or limited partnership interests
in Licensee subject thereto; provided, further such contract or
contracts, if given effect, would not violate any of the terms and
provisions of this license, Serta's by-laws, or any rules and
regulations of Serta.
(iv) A transferee of the control stockholder of Licensee or a
transferee of the control stockholder of any corporation ("parent
corporation"), which corporation at the time of such transfer
directly or through or together with one or more subsidiaries owns
the majority shares in Licensee, or controls the control partner of
Licensee or controls a limited partner of Licensee with a limited
partnership interest coupled with an interest provided (a) that one
or more classes of the voting shares of Licensee Or such parent
corporation or any of such subsidiaries is registered under Section
12(b) or Section 12(g) of the Securities Exchange Act of 1934 or any
successor statute then in effect, (b) that after giving effect to
such transfer, at least one of the classes of voting shares of
Licensee or such parent corporation or any of such subsidiaries so
registered remains, and is required to remain, so registered, and
(c) concurrently with the execution of this license that Serta shall
have been provided with written notice of such transfer and
satisfactory evidence of such required continued registration.
(v) The admission of a substitute limited partner or a new
limited partner to a partnership other than with respect to a
limited partnership interest coupled with an interest.
(e)
(i) Upon the written request of Licensee to Serta and the
submission to Serta by Licensee of such facts and information as
Serta shall request, Serta may, by the affirmative vote of a
majority of its Board of Directors, consent to any assignment
referred to in paragraph 10(c) above. Such consent shall not be
unreasonably withheld.
(ii) If, following a request by Licensee that Serta consent to
such an assignment, a majority of Serta's Board of Directors shall
not consent thereto, or shall not take action thereon within thirty
(30) days after Serta. receives from Licensee such facts and
information as it shall have requested concerning such assignment,
Licensee may, by written notice to Serta, request that such consent
be considered and acted upon by the stockholders of Serta at the '
next annual stockholders' meeting or,
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if so requested by Licensee, at a special meeting of the
stockholders called by Serta for such purpose within ten (10) days
after it receives such request. At such meeting the stockholders may
consent to such assignment by affirmatively voting therefor in
accordance with Serta's by-laws. Such vote shall be final and
binding on Serta and Licensee.
11. If Licensee shall default in the prompt and full compliance with or
performance of any of the provisions hereof, Serta may terminate the license
hereby granted to Licensee and the rights and interests of Licensee as a
stockholder in Serta upon not less than thirty (30) days prior written notice to
Licensee specifying such default or defaults and the effective date of such
termination. Licensee shall have the right to cure any such default or defaults
prior to the date of termination of this license as specified in such notice.
Nothing contained in this paragraph 11 shall limit or affect the consequences of
a prohibited assignment or sublicensing by Licensee under paragraph 10(a), 10(b)
or 10(c) above.
12. Failure of Serta to notify Licensee of any default hereunder or to
take action with respect thereof shall not constitute a waiver of such default
or the provisions hereof defaulted. Waiver by Serta of all remedy, including but
not in limitation, the right to terminate this license, arising out of any
default by Licensee shall not constitute a waiver of Serta's right to terminate
this license as provided in paragraph 11 above or to resort to other remedies on
account of any subsequent or different default.
13. The good will created in connection with the manufacture and sale by
Licensee of Serta products, shall at all times be the property of Serta. In the
event this license shall be terminated pursuant to the provisions hereof, all
rights of Licensee to use said trade-marks and to enjoy the benefits of said
good will shall terminate and revert to Serta. From and after the date of such
termination, Licensee shall not manufacture or sell any Serta products and shall
not use or affix any of the trade names, trademarks or labels theretofore used
by it in connection therewith under the terms of this license upon any articles
thereafter manufactured or sold by Licensee, and shall not hold itself out to
the public as a licensee of Serta, or as having any rights in the Serta name or
good will. Serta shall have the right to enforce by injunction the full and
faithful performance by Licensee of this covenant, and Licensee hereby consents
to the granting of a temporary injunction and a permanent injunction, without
bond, against Licensee.
14. Any territory in the United States which, during the term of this
agreement, shall not be licensed as an exclusive manufacturing territory to any
person, firm or corporation shall, until so licensed, be referred to as "open
territory." If such territory shall remain open territory for more than six
months, and if an exclusive license to manufacture Serta products therein shall
thereafter be granted by Serta, then, in such event, Licensee agrees that in
order to encourage the Licensee under such new license to expend the sums
necessary to establish a factory and full facilities for the manufacture and
sale of Serta products and to create good will for itself and Serta in its
manufacturing territory, Serta may require all, but not less than all, other
U.S. primary Licensees, including, but not in limitation, the Licensee
hereunder, not to sell and deliver Serta products for a period not exceeding
five (5) years to dealers and other persons, firms and corporations in such
manufacturing territory,
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15. Except where it is hereinabove specifically stated that any action
by Serta shall be upon the authority or direction of its stockholders, all
rights, powers, authorities and discretions reserved by or granted to Serta
hereunder shall be vested in and exercised by Serta's Board of Directors in
accordance with its by-laws.
16. All notices to be given hereunder shall be sent by United States
certified mail, postage repaid, and shall be addressed to Serta at the principal
office of Serta, Inc., and to the Licensee at 0000-00 Xxxxx Xxxxxx, Xxxx Xxxx
Xxxxx, Xxxxxxx 00000. All notices mailed as hereinabove provided shall be
deemed and treated to have been received five (5) days after the date of
mailing. Serta and Licensee shall have the right, by notice given as herein
provided, to change the mailing address to which notices to it shall be sent by
the other party hereto.
17. This agreement supersedes all previous license or franchise
agreements between the pax-ties hereto. The terms and provisions of this
agreement aye severable, and if any part hereof shall be held invalid or
unenforceable for any reason, the remaining provisions hereof shall not be
invalidated but shall remain in full force and effect. This agreement shall be
construed under and in accordance with the laws of the State of Illinois.
18. If there shall be any conflict between any of the terms and
provisions of this agreement and the by-laws of Serta from time to time in force
and effect, then in any such event the terms and provisions of this agreement
5ball be controlling.
19. This Agreement may be amended at anytime or times, but only upon the
occurrence of all of the following:
(a) Adoption by two-thirds (2/3rds) of the whole Board of Serta;
(b) Approval by the holders of two-thirds (2/3rds) of the issued and
outstanding Class A stock; and
(c) Ratification by two-thirds (2/3rds) of all separate Class A
Stockholders of Serta, voting on a per capita basis without reference to their
respective shareholdings, provided, however, that for purposes of such
ratification only, any group of Stockholders affiliated with each other shall be
deemed and treated as only one Stockholder.
IN WITNESS WHEREOF, Serta and Licensee have caused these presents to be,
signed in their respective corporate names by their duly authorized officers,
all on the day and year first above written.
ATTEST: SERTA, INC.
/s/ By
---------------------------- ------------------------------
Secretary President
[SEAL] PALM BEACH BEDDING CO.
ATTEST:
/s/ By /s/ Xxxxxx X. Xxxxx
---------------------------- ------------------------------
Secretary President
[SEAL]
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[MAP]
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MEMORANDUM OF AGREEMENT
SERTA ASSOCIATES, INC.
THIS MEMORANDUM OF AGREEMENT dated this 1st day of December, 1969, by
and between SERTA ASSOCIATES, INC., a Delaware corporation, party of the first
part, hereinafter sometimes referred to as "Serta" and
Palm Beach Bedding Co.
0000 Xxxxx Xxxxxx
Xxxx Xxxx Xxxxx, Xxxxxxx 00000
party of the second part, hereinafter sometimes referred to as "Member,"
WITNESSETH:
WHEREAS, the parties hereto have heretofore entered into a Standard
License Agreement under the terms of which the Member has been given the right
to manufacture and sell certain articles in accordance with Serta's by-laws,
rules, regulations, resolutions and specifications; and
WHEREAS, under the terms of said Standard License Agreement the Member
is also given the right to use certain trade-marks, trade names and labels in
connection with the manufacture and sale of said articles; and
WHEREAS, Serta engages in national advertising of its specification
products; and
WHEREAS, the Member is desirous of gaining the consent of Serta to the
use of the word "Serta" in the corporate name or in the firm name and style
under which the Member is engaged in the manufacture and sale of such articles
in accordance with the terms of said Standard License Agreement; and
WHEREAS, is to the mutual advantage of the parties hereto to permit the
Member to use the word "Serta" in such corporate or firm name under the
restrictions and upon the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the promises and in further
consideration of the execution and delivery of said Standard License Agreement
and of the terms, covenants and conditions hereof to be kept and performed by
the parties hereto, it is covenanted and agreed as follows:
(a) The Member shall not appropriate for use or use any corporate
name or firm name and style embodying the word "Serta" in its
business done under said Standard License Agreement unless and
until the Member has obtained the written consent of Serta in
such appropriation or use by the Member of such corporate name
or
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firm name and style.
(b) Such corporate name or firm name and style shall be
sufficiently distinctive so as to prevent the public from
confusing such corporate name or firm name and style with the
corporate name of Serta or with the corporate name or firm
name and style of any other stockholder and licensee of Serta.
(c) The Member shall, in using such corporate name or firm name
and style upon its stationary, billheads and in its
advertising, state in substance upon such stationery and
billheads and in such advertising that the Member is a member
or licensee of Serta Associates, Inc., a Delaware corporation,
or is engaged in the manufacture and sale of article in
accordance with specifications formulated by Serta.
(d) The Member hereby consents to the appropriation and use by any
other stockholder and licensee of Serta of a corporate name or
firm name and style embodying the word "Serta" which is
approved by Serta pursuant to an agreement between Serta and
such other stockholder and licensee containing the same
provisions as contained in this agreement. The Member shall,
from time to time, upon request, execute and delivery such
documents as may be necessary or proper in Serta's opinion to
permit and consent to such appropriation and use by other
stockholders and licensees of Serta.
(e) The Member shall not manufacture and sell any article under
any corporate name or firm name and style which includes the
word "Serta" unless said article is manufactured and sold in
full compliance with Serta's by-laws, rules, regulations,
resolutions and specifications.
(f) The Member shall not manufacture and sell any article under
any trade name, trademark, or label unless such trade name,
trade-xxxx or label is adopted and specified by Serta for use
generally by all of its licensees and stockholders.
(g) In the event the Member ceases to be a stockholder of Serta,
or in the event the said Standard License Agreement is
terminated by reason of some default of the Member in the
terms, covenants and conditions of said Standard License
Agreement, or in the event of any default by the Member of any
of the terms, covenants and conditions of this agreement and
such default continues for a period of thirty (30) days after
a written demand by Serta upon the Member to remedy such
default, then in either such event this agreement shall
terminate and the Member shall immediately, upon such
termination of said Standard License Agreement, or upon
ceasing to be a stockholder of Serta, or upon the expiration
of said thirty (30) day period for remedying any default under
the terms of this agreement, as the case may be, cease and
abandon the use of such corporate name or firm name and style.
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(h) In the event of a termination of this agreement in the manner
specified in paragraph (g) hereof, the Member shall, within
thirty (30) days of the date of termination of this agreement,
cause such corporate name to be changed by deleting the word
"Serta" therefrom. In the event such firm name and style can
be registered under the provisions of any state law for the
exclusive use by the registrant, then, in the event of the
termination of this agreement as provided in paragraph (g),
the Member shall, within thirty (30) days of such termination,
take such legal steps as may be necessary to change the
registration of such firm name and style by deleting the word
"Serta" therefrom.
(i) In the event of the termination of this agreement by reason of
a default of the Member as herein specified and the Member
fails or refuses to cease and desist from the use of such
corporate name or firm name and style embodying the word
"Serta" therein, or fails and refuses to change such corporate
name or such firm name and style by deleting the word "Serta"
therefrom, then in either such event Serta shall have the
right, without notice to the Member, to obtain an injunction
enjoining the Member from the use of any corporate name or
firm name and style which embodies the word "Serta" thereto.
(j) In the event Serta desires to become qualified as a foreign
corporation in the state or states in which the Member is
doing business under such corporate name or such firm name and
style, the Member shall, upon request of Serta, execute a
written consent to the qualification of Serta in such state or
states.
(k) In the event the Member does not cease from using such
corporate name or firm name and style as provided in
paragraphs (g) and (h) hereof, it is understood and agreed
that Serta will suffer material damages, the exact amount of
which would be difficult, if not impossible, of ascertainment.
Therefore, the Member shall pay to Serta, upon demand, the sum
of Twenty-Five Dollars ($25.00) per day as liquidated damages
for each and every day in which the Member fails to cease and
desist from the use of such corporate name or firm name and
style as required by the terms of this agreement. In addition
to the foregoing penalty, the Member shall pay to Serta its
reasonable costs, expenses and attorneys' fees incurred in and
about one collection of such penalty or in and about the
obtaining of an injunction against the Member, or in and about
any litigation to which Serta is made a party by reason of the
fault of the Member.
(l) In the event the Member is declared a bankrupt, or in the
event any corporation organized by the Member under a
corporate name embodying the word "Serta" is declared
bankrupt, then in either such event, this agreement shall be
terminated as of the data upon which the Member or such
corporation is declared a bankrupt. The occurrence of such
event shall constitute default.
IN WITNESS WHEREOF, Serta has caused these presents to be signed in its
corporate
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name by its duly authorized officers, and the Member has caused these presents
to be signed in its corporate name or in its firm name and style by its duly
authorized officers or partners, as the case may be, all on the day and year
first above written.
SERTA ASSOCIATES, INC.
By:
-----------------------------------------
President
Executed and delivered Nov. 24, 1969
ATTEST:
-------------------------------
Secretary
PALM BEACH BEDDING CO.
----------------------------------------
SEAL
By:
------------------------------------
President
ATTEST:
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Secretary
SEAL
