AGREEEMENT
1
AGREEEMENT
BETWEEN: | LA
SOCIETE 421 PRODUCTIONS, anonymous
Partnership
and legal person lawfully established under Belgian law, having its
headquarters at 479 avenue Xxxxxx in Brussels, represented by its
Chief
Executive, Mr. Xxxxx Xxxxxxx.
(hereinafter
designated as “PRODUCTIONS”.)
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AND:
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|
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XL
GENERATION AG, legal person lawfully established under Swiss law,
having
its headquarters at 00 Xxxxxxxxxxxx, Xxx, Xxxxxxxxxxx, represented
by
Xxxxx Xxxxxxx, its president, duly authorized under the present as
declared by signing this agreement;
(hereinafter
designated as “XLG”.)
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IT
HAS
BEEEN PREVIOUSLY EXPOSED WHAT FOLLOWS:
·
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Mr.
Xxxxx Xxxxxxx ceded to PRODUCTIONS, the exclusivity in every country
of
the world for his professional and athletic involvements, notably
the
right to use his name and image for marketing and publicity
purposes.
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·
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XLG
has developed a patented technology in synthetic sport flooring used
notably for the practice of tennis but as well for other sports such
as
football and rugby. (the “PRODUCTS”).
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·
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PRODUCTIONS
has assured XLG that it could help it to promote and market the synthetic
sport flooring to tennis courts(hereinafter designated as “Tennis
Product”) by using the name and image of Xxxxx Xxxxxxx in his quality as
a
professional athlete.
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2
·
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It
is in these conditions that XLG proposed to PRODUCTIONS to enter
in
agreement with the latter to use, exclusively, the name and image
of Xxxxx
Xxxxxxx in his quality as a professional athlete, for usage towards
the
promotion and marketing of the tennis product (synthetic sport
flooring).
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·
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As
well, it has been proposed to Mr. Xxxxx Xxxxxxx to intervene in the
capacity of a negotiator to initiate and promote the marketing of
the
Tennis Product amongst all natural and legal persons, following the
conditions and modalities foreseen
hereinafter.
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THEREFORE,
THE PARTIES HAVE AGREED AS FOLLOWS:
1.
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DEFINITIONS
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1.1
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Rights
Ceded: The
reproductions rights of the juridical personality by printing press,
photography, and any other known or unknown technical means to this
day.
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1.2
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Exploitation:
Usage
and exclusive exploitation , marketing, or promotional
material.
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1.3
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Material:
Any
marketing and/or promotional material concerning the Tennis Product,
patented technologies, or benefiting of an intellectual property
for
synthetic sport flooring used for tennis courts excluding any other
usages.
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1.4
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Personality:
The
name, person, and image of Mr. Xxxxx Xxxxxxx, ceded originally to
PRODUCTIONS, Intervener, as es
quality
representative of any and/or all attributes of the personality of
Xxxxx
Xxxxxxx.
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1.5
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Prestation
concerned:
Usage of the name, image of the player Mr. Xxxxx Xxxxxxx, as well
as the
Intervention of Mr. Xxxxx Xxxxxxx via PRODUCTIONS in his capacity
as
intermediary and negotiator in the commercialization of the Tennis
Product.
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1.6
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Territory:
The
whole world.
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2.
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OBJECT
AND REMUNERATION
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2.1
Subject to the terms and conditions established hereinafter, the present
agreement
purposely entails on a double account to Mr. Xxxxx Xxxxxxx via PRODUCTIONS
to be
aware that:
2.1.1.
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Regarding
the Rights Ceded, the usage of the image of Mr. Xxxxx Xxxxxxx to
promote and commercialize the Tennis Product against a remuneration
convened hereinafter;
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3
2.1.2.
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The
personal intervention of Mr. Xxxxx Xxxxxxx via PRODUCTIONS in the
negotiation and commercialization of the Tennis Product amongst any
persons, against a sales commission, distinct from the remuneration
foreseen in 2.1.1, convened hereinafter;
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2.1.3.
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The
parties recognize that these are two separate agreements, the termination
or cancellation of one will not automatically bring forth the termination
or cancellation of the other.
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3.
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USAGE
OF THE NAME AND IMAGE OF MR.XXXXX
XXXXXXX
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3.1 |
PRODUCTIONS
commit itself in providing, to XLG, under the conditions of exclusivity
defined hereinafter for the Territory, the prestation of Mr. Xxxxx
Xxxxxxx:
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·
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For
the takings of photographic shots necessary to the usage of the name
and
image of Mr. Xxxxx Xxxxxxx and to the promotion of the concerned
prestation accordingly to a concerted choice and following an agreement
between parties.
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·
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For
any other promotional, marketing or press event required by XLG or
by any
of its manufacturers or distributors where the presence of Mr. Xxxxx
Xxxxxxx would be desired.
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3.2 |
The
takings of photographic shots will take place on the day and hour
arranged
by agreement
between parties unless XLG acquires directly from a photographic
agency
designated by Mr. Xxxxx Xxxxxxx the foresaid rights of usage and
exploitation of the photographic shots for the reproduction of the
image
of Mr. Xxxxx Xxxxxxx.
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3.3
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The
usage of the name and image of Mr. Xxxxx Xxxxxxx will be permitted
towards
any
publicity, promotion, marketing of any sort whether it includes the
website of XLG,
manufacturers or distributors authorized by XLG, solely and exclusively
for towards
the promotion and commercialization of the Tennis
Product.
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3.4 |
The
entirety of the material using the name and image of Mr. Xxxxx Xxxxxxx
shall require
the latter’s for approval before any use, which can be upheld only
under reasonable
circumstances.
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3.5 |
PRODUCTION
assures XLG of the availability and agreement from Mr. Xxxxx Xxxxxxx
towards participating to exhibition games or tournaments, within
any
places in the Territory, for a distinct remuneration to those mentioned
in
the said agreement
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.
4
3.5.1.
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The
games or tournament will be fixed upon mutual agreement bearing in
consideration
the professional and/or personal availability of Mr. Xxxxx Xxxxxxx
and
following a previously agreed calendar within at least six (6) weeks
prior
to the occurring of the said
activities.
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3.5.2.
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XLG
will take financial responsibility of the travel expenses, including
local
transfers and stays of Mr. Xxxxx Xxxxxxx and two accompanying individuals
at the latter’s discretion but still requiring the approval from XLG which
can be upheld only under reasonable
circumstances.
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3.5.3.
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XLG
reserves itself the right to demand a budget of expenses before any
events
or tournament and XLG reserves itself the right, without any
justification, to decline the presence of Mr. Xxxxx Xxxxxxx towards
any
games or tournaments.
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3.5.3.1.
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All
air transportation shall be done in Business
class.
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3.5.3.2.
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Hotel
accommodation shall in 4 Star Hotels, including full board, as recognized
by international standards.
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3.5.3.3.
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All
motorized transportation shall be with a chauffeur and with a luxury
vehicle.
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3.5.3.4.
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All
train transportation shall be done in first class.
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3.6.
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Depending
on the availability of Mr. Xxxxx Xxxxxxx, whenever his presence shall
be
required by XLG, a manufacturer of XL or a distributor with the exception
of exhibition games and tournament, no remuneration shall be me made
to
PRODUCTIONS or to Mr. Xxxxx Xxxxxxx except those mentioned in par.
3.5.3.1
to 3.5.3.4.
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3.7.
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XLG
commits itself to pay to Mr. Xxxxx Xxxxxxx a sum of 1 euro for every
meter
square of Tennis product sold and paid across the Territory against
the
rights for XLG, the manufacturers , the distributors and authorized
agents
to use the image and name of Mr. Xxxxx Xxxxxxx towards the promotion
of
the Tennis product.
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5
4.
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MR.
XXXXX XXXXXXX VIA PRODUCTIONS ACTINGS A NEGOTIATOR AND INTERVENANT
IN THE
CONTEXT OF THE SELLING OF THE TENNIS
PRODUCT
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4.1
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Without
creating any obligations for Mr. Xxxxx Xxxxxxx and PRODUCTIONS, the
two
parties commit, under their best efforts, to initiate and promote
the
selling of the Tennis Product, precisely in the following places,
notably
France, Benelux, Poland, Italy, Bulgaria, Morocco, the United Kingdom,
within the European Union, and the Middle East. The parties shall
not be
limited to any given region and may proceed towards endeavors and
completions of sales within the Territory.
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4.2
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XLG
shall be obliged to advise all manufacturers and distributors located
within the
Territory of the existence of the present agreement and of their
respective obligations towards Mr. Xxxxx Xxxxxxx regarding the payments
of
royalties. These persons shall be advised of their possible required
collaboration with PRODUCTIONS or Mr. Xxxxx Xxxxxxx in the purpose
for
selling to a specific client.
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4.3
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For
any sales initiated and rendered by Mr. Xxxxx Xxxxxxx for which he
would
have had an active function in the negotiations, PRODUCTIONS shall
be paid
a royalty of 5 euros for every square meter
sold.
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4.4
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The
royalty shall be payable by the distributor or the responsible
intermediary for sales. In addition, every earned royalty and payable
to
PRODUCTIONS is, by the present agreement, is guaranteed by XLG.
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5.
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PAYMENTS
METHOD FOR FEES AND
ROYALTIES
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5.1
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The
fees and royalties foreseen in the Image and Sales section shall
be
payable 4 times per year notably on the 15th
of
April, 15th
of
August, 15th
of
October and 15th
of
February for the respective periods of the 31st
of
March, 31st
of
July, 30th
of
September and 31st
of
December.
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5.2
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XLG
shall send a report with all the figures containing both the global
sales
of the Tennis product for the given period (Image section) and the
details
of the sales for which PRODUCTIONS is entitled to a royalty. (Commission
Section)
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5.3
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Nothing
in this agreement forbids Mr. Xxxxx Xxxxxxx or PRODUCTIONS to associate
itself with other Tennis professionals as long as Mr. Xxxxx Xxxxxxx
will
be responsible for any royalties to be paid to his
associates.
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6
5.4
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PRODUCTIONS
shall have the right to retain the services of accounting professionals
to
verify the periodic reports from XLG. This professional shall solely
have
access to XLG’s Gross Revenues with regards to the section on Image and
Sales.
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5.5
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The
purpose of the accounting verification is solely to insure the accuracy
of
the financials metrics inscribed on the sales reports of Tennis products
beneficial to PRODUCTIONS. The designated auditor by PRODUCTIONS
shall be
obliged to sign a letter of confidentiality over all financial information
that it will have access to.
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5.6
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The
auditing shall occur at the will of PRODUCTIONS and will require
a written
notice before the end of the calendar year following the previous
period
ending on 31st
of
December. PRODUCTIONS will have to send a written request allowing
a
reasonable delay for the auditing which must occur within regular
office
hours.
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5.7
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Royalties
pertaining to Mr. Xxxxx Xxxxxxx’x participation in the commercialization
of the Tennis product shall be exigible at the time when the client
shall
pay the Tennis product.
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5.8
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Any
royalty foreseen in section 2 and 3 is deemed awarded when the selling
price of the Tennis product has been paid by the client or when any
other
financial arrangements have been made with the
client.
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6. |
TECHNICAL
CONSULTATIONS
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6.1
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During
the life of this agreement, XLG shall be entitled to request from
PRODUCTIONS to provide the services of Mr. Xxxxx Xxxxxxx, depending
on his
availability, as an Expert Intervenant and as Technical Consultant
in the
fields of Tennis, in order to develop and optimize the Tennis
product.
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6.2
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Nor
PRODUCTIONS, nor Mr. Xxxxx Xxxxxxx will be able to refuse, without
reasonable motives, their intervention in the context of the present
section 6.
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6.3
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In
matters of expertise, were Mr. Xxxxx Xxxxxxx to accept to participate,
such involvement would have to be for a minimum of 3 days for a total
amount of twenty thousand (20 000) Euros, without tax, and for a
maximum
of 5 days for a total of twenty-eight thousand Euros (28 000) Euros,
without tax.
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7
7. |
LENGTH
AND RESILIATION
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Image
Section
7.1
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The
“Image” section of the present agreement is for a period of 5 years ending
on the 30th
of
June 2010 except in case of an anticipated resiliation reached by
common
agreements between parties or by judicial recourse or by the disposition
of the present agreement.
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7.2
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At
the end of this delay, there will be neither continuation nor automatic
renewal but parties shall be able to negotiate a new agreement; however
nothing in this agreement provides vested rights towards the renewal
of
the present agreement.
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7.3
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At
the end of the present agreement, including any new agreements or
possible
renewal, XLG commits to withdraw, within 15 days from the expiry
date of
the agreement, from its website any reference to the image of Mr.
Xxxxx
Xxxxxxx. Additionally, XLG shall have a period of 2 months to dispose
and
withdraw from the market its marketing inventory. At the expiry of
this 2
months delay, any kind of publicity, relative to the image of Mr.
Xxxxx
Xxxxxxx, will be withdrawn from the market and/or
destroyed.
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Promotion
and Sales Section
7.4
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With
regards to the “Promotion and Sales Section” , the present agreement shall
be effective for an indefinite period since no exclusivity has been
awarded to Mr. Xxxxx Xxxxxxx.
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7.5
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Mr.
Xxxxx Xxxxxxx shall be able to resiliate the present agreement with
regards to the royalty by a 30 days in advance written notice, with
no
need of reasonable motives.
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7.6
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XLG
will only be able to resiliate the present agreement only if, clearly
and
even though there is no obligations on his behalf to sell Tennis
product,
Mr. Xxxxx Xxxxxxx makes no efforts to search for potential buyers
and to
conclude sales. However, considering the notoriety of Mr. Xxxxx Xxxxxxx,
XLG cannot request him to modify his career to become a full-time
sales
representative of XLG. XLG shall take these matters into consideration
when evaluating efforts of Mr. Xxxxx Xxxxxxx, since the latter desires
punctually to conclude sales of the Tennis
product.
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7.7
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At
the end of the present agreement, each party commit themselves to
recognize and accept not to claim any amounts or damages of any sorts
whether resulting from the ending, resiliation, or expiry of the
present
agreement. Therefore, without imposing any limits to the reach of
foreseen
sections, nothing in the present agreement authorizes a party to
claim to
the other any amounts for damages or loss of earnings regarding the
development of sales, contacts, clients, or forgone and/or future
business
opportunities due to the ending or expiry of any of the sections
described
in Section 7 of the present
agreement.
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8
7.8
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Furthermore,
nothing in this document must be understood as prohibiting a party,
notably Mr. Xxxxx Xxxxxxx, to claim, even after the expiry of this
agreement, any amounts caused by the ending date and pertaining to
the
realized sales not yet paid, at the date of the ending, of the Tennis
product, whether for the “Image section” or the “Royalty”.
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Other
cases of resiliation
7.9
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The
present agreement can be the subject of resiliation by PRODUCTIONS,
de
plano
and with immediate effect, without indemnity from all parties, and
without
requiring any judicial formalities, solely by sending a written notice
as
registered mail with proof of
reception:
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7.9.1
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in
case of violation by XLG of the present agreement obligations’, and only
if the violation hasn’t been rectified within a period of 15 working days
of the receipt of the registered mail or of the formal notice to
remedy
the situation or the violation or in case of renewal of the same
violation
or default being the object of the formal notice within six (6) of
the
default of or of the precedent
violation;
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7.9.2
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in
case of denial or defamation from XLG against Mr. Xxxxx Xxxxxxx or
its
activities as well in cases where XLG would pose an act that would
damage
the reputation, prestige or notoriety of Mr. Xxxxx
Xxxxxxx;
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7.9.3
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in
case of resiliation for any motives in either subsection 7.9.1 or
7.9.2,
XLG will cease immediately to use the Material and shall ask distributors,
manufacturers, or other agents to return the Material or to destroy
it,
within a maximum delay of ten working (10) days starting from the
notification of the resiliation.
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7.9.4
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However,
at no time shall XLG be responsible for acts, speeches, attitudes
from
third parties such as manufacturers, distributors, and other agents
in
light of section 6.9. Furthermore, the parties shall see to themselves
to
take the necessary measures for any ceasing of default or violations
foreseen in section 6.9 and perpetrated by third
parties.
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9
8. EXPLOITATION
ET PROMOTION
8.1
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XLG
shall insure to the quality of the publicity and marketing materials
and
the aesthetics of catalogues, brochures, where are reproduced the
name and
image of Mr. Xxxxx Xxxxxxx. The latter will be selected and designed
in
order not to damage in any possible ways the integrity of the image
of Mr.
Xxxxx Xxxxxxx.
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8.2
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PRODUCTIONS
shall retain an absolute veto right over the utilization that XLG
wishes
to make of the Material, if this utilization would pose damage to
the
elite athlete image of Mr. Xxxxx
Xxxxxxx.
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8.3
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In
any case, XLG will maintain at the disposition of PRODUCTIONS the
drafts
of Material upon their availability and at the latest thirty (30)
days
before their usage. XLG shall inform PRODUCTIONS in order to allow
it to
control prior to the envisioned date for their usage as well as their
execution and presentation according to aesthetics requirements and
the
good taste of the image of Mr. Xxxxx
Xxxxxxx.
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9. PERSONAL
AGREEMENT
9.1
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The
present agreement is intuitu
personae.
In no case, can it be ceded or transferred to a third party neither
directly or indirectly in any possible ways without prior written
authorization from PRODUCTIONS or Mr. Xxxxx
Xxxxxxx.
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9.2
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Section
8.1 does not apply in the context of corporate restructuring as long
as
XLG’s control is not modified.
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9.3
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PRODUCTIONS
and Xxxxx Xxxxxxx, with the present agreement, recognize and accept
that
section 8 does not apply as well if XLG registers to a stock exchange
within the Territory.
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Mr.
Xxxxx
Xxxxxxx confirms having been advised that XLG is actually in negotiations to
register directly or indirectly shares from its common stock at a stock exchange
located in the Territory.
10
10. NON
COMPETITION
10.1
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Throughout
the life of this present agreement, PRODUCTIONS commits itself and
guarantees to XLG that Mr. Xxxxx Xxxxxxx will not lend his contribution
(image section, royalty section, technical consultation section)
to other
publicity campaigns or promotions related to the commercialization
to
similar products as the Tennis product. Moreover, PRODUCTIONS and
Mr.
Xxxxx Xxxxxxx, commit themselves, under penalty of resiliation (as
foreseen in section 7.9.1) not to sale directly or indirectly products
that could be competitors to Tennis
products.
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11. GENERAL
PROVISIONS
11.1
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The
parties convene that the present document contains the complete and
entire
wording of the agreement that took place between themselves with
regards
to its objects. The parties recognize that no other promises or
representations have been made and that no other agreements, verbal
or any
other, took place between the parties, with regards to the objects
of the
contract. Consequently, the present agreement replaces and puts an
end to
any other prior agreements, representation or negotiation or proposition
relative to the objects of the contract. No waiver, adjunction, or
modification of the clauses of the agreement can bind the parties
unless
it is done in writing and duly signed by the parties or representatives
of
the parties.
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11.2
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The
titles of the sections are used to facilitate the comprehension of
the
text, but are not part of the
agreement.
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11.3
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In
case part of the agreement, a section, a subsection, or a sub-subsection,
for any reasons, would be declared null or invalid, it would not
affect in
any ways the validity of the other clauses of the agreement which
will
remain in effect as if the agreement had been signed without the
invalid
clauses.
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11.4
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The
parties convene that Swiss law applies to the contract and it shall
determine its application and interpretation. Any dispute with regards
to
the execution and interpretation of the present agreement or to its
ending
will be deferred to a Swiss court, being the only forum to receive
and
hear such case.
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11.5
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Default
by one of the parties to request the strict accomplishment of any
of the
commitments in the present agreement or the complete respect to any
conditions it establishes or the failure to exercise a right that
is
devolved to it from the agreement, cannot be understood as a renunciation
or abandonment for the future to exercise this right, since in such
circumstances, the commitment or the condition that hasn’t been fulfilled
or respected, or the right that hasn’t been exercised, maintains its full
force and effect.
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11
11.6
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The
observation of the different clauses of the agreement remain subject
to
the restrictions imposed by any law or regulation of public order
as well
as any impediment stemming from superior force including wars, strikes,
fires, or any other conditions outside the control of the parties,
in
which case the parties will have the right to resiliate the present
agreement or to differ its
execution.
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11.7
|
The
present agreement binds the parties as well as their heirs, legatees,
assignees, and any other legal representatives and their
beneficiaries.
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11.8
|
The
parties to this agreement declare having read all the conditions
in the
present agreement, that they understood all the modalities, that
they
have, if necessary, made examine the modalities of the present agreement
by their legal counsel and that they consent to be bound by
it.
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11.9
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No
clause of this agreement can be understood as being a party like
the
representative, mandatory, employee or associate of the other party.
It
has been specifically recognized that no party can take commitments
of any
kind or enter obligations or debts that could bind the other party,
without having received a written consent. As well, any commitments,
obligations or debs undertaken or contracted by a party do not bind
the
other party unless given prior
consent.
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READ,
APPROVED, READY FOR CONSENT
Henri Monsieur Xxxxx Xxxxxxx | XL GENERATION AG | |
(Personnellement)
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||
/s/ Xxxxx Xxxxxxx | /s/ Xxxxx Xxxxxxx | |
Par H.E. Amb. Xxxxx Xxxxxxx | ||
President & CEO | ||
SOCIETE 421 | CIBERNIA TRADING | |
/s/ Xxxxx Xxxxxxx | /s/ Claudio Campagnolo | |
Xxxxx Xxxxxxx | Xxxxxxx Campagnolo | |
President | President | |