Exhibit 10.5
LICENSE AGREEMENT
This LICENSE AGREEMENT (the "Agreement") is made and entered into as of the
1st day of November, 2005, by and between Community Alliance, Inc, a Nevada
corporation (the "LICENSOR"), and Xxxxx X. Xxxxxx, 0000 X. Xxxxxx Xx., Xxxx,
Xxxxxxx, (the "LICENSEE").
WITNESSETH:
WHEREAS, LICENSOR has all rights to the Know-How, Marketing Materials,
Publications and Designs and Trademarks (collectively, the "INTELLECTUAL
PROPERTY"), the ADVERTISING PRODUCT and the BUSINESS CONCEPT, all as defined
below; and
WHEREAS, LICENSEE desires to acquire the exclusive license to use the
INTELLECTUAL PROPERTY in the LICENSED TERRITORY, as defined below, subject to
the provisions and conditions set forth in this Agreement; and
WHEREAS, LICENSOR is willing to grant to LICENSEE the exclusive license to
use the INTELLECTUAL PROPERTY in the LICENSED TERRITORY, subject to the
provisions and conditions set forth in this Agreement; and
WHEREAS, LICENSOR desires to retain the rights to the INTELLECTUAL
PROPERTY, the ADVERTISING PRODUCT and the BUSINESS CONCEPT for its own purposes,
except in the LICENSED TERRITORY.
NOW, THEREFORE, in consideration of the mutual promises, premises and
obligations of the respective parties set forth herein, it is hereby contracted,
covenanted and agreed as follows:
1. DEFINITIONS.
1.01 "INTELLECTUAL PROPERTY" shall mean all Know-How, Marketing
Materials, Publications and Designs, Trademarks and all other materials,
whether now existing or developed in the future, for use in the BUSINESS
CONCEPT and used by the LICENSEE in the LICENSED TERRITORY.
1.02 "BUSINESS CONCEPT" shall mean the overall use of all aspects of
the granted license, including but not limited to the Advertising Product,
Know-How, Marketing Materials, Publications and Designs and Trademarks, and
other aspects of, methodologies involved in and programs for marketing the
business of providing elementary schools free of charge with custom school
take-home folders produced by Community Alliance that display advertising
by community businesses in the LICENSED TERRITORY.
1.03 "ADVERTISING PRODUCT" shall mean the custom school take-home
folder publications produced by Community Alliance that display advertising
by community businesses, which are provided to elementary schools free of
charge. LICENSOR may add other advertising products from time to time.
1.04 "KNOW-HOW" shall mean the methods, skills, procedures, forms and
operations developed by LICENSOR, as related to the ADVERTISING PRODUCT or
products.
1.05 "TRADEMARKS" shall mean the name "Community Alliance" and the
associated logo, together with any trademarks that LICENSOR may add to the
Business Concept in the future.
1.06 "MARKETING MATERIALS" shall mean any and all of the documents
provided by LICENSOR to LICENSEE for the purpose of LICENSEE'S contracting
with schools for the provision of school take-home folders produced by
Community Alliance that display advertising by community businesses and
selling advertisements to community businesses.
1.07 "PUBLICATIONS AND DESIGNS" shall mean the custom school take-home
folders and related advertising graphic design services provided by
LICENSOR to LICENSEE in relation to the ADVERTISING PRODUCT.
1.08 "TERRITORY" shall mean the geographic area to which the LICENSEE
shall have the exclusive license to operate the BUSINESS CONCEPT and use
the INTELLECTUAL PROPERTY.
2. GRANT OF LICENSE.
2.01 LICENSOR hereby grants to LICENSEE the exclusive license to use
the INTELLECTUAL PROPERTY only within the LICENSED TERRITORY and nowhere
else and for no other purpose, subject to the provisions and conditions set
forth in this Agreement. LICENSOR may not grant a license or any part of
the BUSINESS CONCEPT or the use of the INTELLECTUAL PROPERTY to any other
person or entity within or without the LICENSED TERRITORY.
2.02 LICENSEE will not use the INTELLECTUAL PROPERTY outside the
LICENSED TERRITORY. LICENSEE will not use the INTELLECTUAL PROPERTY except
in connection with the marketing, selling, promoting, advertising and/or
distribution of the Advertising Product or products.
3. LICENSED TERRITORY.
3.01 The Territory in which the license granted to the LICENSEE
pursuant to this Agreement is effective is as follows:
The State of Arizona.
4. LAWFUL USE.
4.01 LICENSEE represents and warrants that advertising and promotional
materials and all other materials in connection with which the INTELLECTUAL
PROPERTY used by LICENSEE under this Agreement shall be lawful. LICENSEE
shall use diligent efforts to provide in advance to LICENSOR copies or
samples of the form of advertising, promotional materials and other
materials used in connection with the INTELLECTUAL PROPERTY; said copies or
samples to be sent to LICENSOR at its address for notice as hereinafter
specified.
5. LICENSE FEE.
5.01 For use of the INTELLECTUAL PROPERTY as described in this
Agreement, LICENSEE agrees to pay to LICENSOR a license fee of ten thousand
dollars ($10,000.00), on October 31, 2005.
5.02 All payments to be paid to LICENSOR pursuant to this Agreement
shall be sent or delivered to LICENSOR at its address for notice as
hereinafter specified.
5.03 All payments pursuant to this Agreement shall be in United States
currency.
5.04 Any payment not mailed by certified mail by LICENSEE to LICENSOR
on or before the date on which the payment is to be paid shall be
delinquent and overdue, and, at the election of LICENSOR, in its sole
discretion, this Agreement may be considered void, unless LICENSOR extends
the due date for the required payment.
6. PUBLICATION FEE AND PUBLICATION OF ADVERTISING PRODUCT.
6.01 In order to maintain the best quality control for the ADVERTISING
PRODUCT or products, LICENSEE shall be required to use the graphic design
and printing services of LICENSOR for the publication of the ADVERTISING
PRODUCT or products.
6.02 LICENSEE shall be required to submit the graphic files in
connection with any advertisement to LICENSOR in a timely manner, but, in
any event, not later than 45 days after the date of sale of the
advertisement and not later than 30 days before the date of printing of the
advertisement.
6.03 LICENSEE shall pay to LICENSOR the sum of $1,900 as a publication
fee for each individual school with which it contracts to provide the
Advertising Product or products not later than 45 days after the date of
the contract and, in any event, not later than the date of the submittal of
the graphics related to the product to the printer.
7. TRAINING.
7.01 LICENSEE may request training from LICENSOR, which training, if
agreed to by LICENSOR, shall be determined by LICENSOR and shall be at a
time mutually agreed to by LICENSEE and LICENSOR.
7.02 LICENSEE shall reimburse LICENSOR for all travel-related
expenses, not to exceed $1,200. All travel-related expenses exceeding
$1,200 shall be paid by LICENSOR.
8. TERM/EXPIRATION.
8.01 The term of this Agreement shall begin immediately upon execution
of this Agreement and shall expire sixty (60) months thereafter.
8.02 This Agreement is subject to renewal or extension by the parties;
provided, however, any such renewal or extension must be agreed upon, in
writing, at least six (6) months prior to the end of the initial five
(5)-year term hereof and LICENSEE has satisfied the minimum performance
standards of having contracted with at least 25 schools.
9. TERMINATION.
9.01 LICENSOR shall have the right to terminate this Agreement upon
thirty (30) days' written notice to LICENSEE in the event that LICENSEE
fails to contract with a minimum of 15 schools in any given school year,
with the exception of the first school year terminating after the date of
the execution of this Agreement.
9.02 LICENSOR shall have the right to terminate this Agreement upon
thirty (30) days' written notice to LICENSEE in the event that any breach
or violation by LICENSEE of any material provision set forth in the
Agreement shall continue for a period of thirty (30) days following notice
of such breach or violation given to LICENSEE by LICENSOR.
9.03 Upon the expiration or termination of this Agreement, LICENSEE
will promptly discontinue any and all use of the INTELLECTUAL PROPERTY.
9.04 Upon the expiration or termination of this Agreement, LICENSEE
will destroy and/or delete the INTELLECTUAL PROPERTY from all of LICENSEE's
publications, stationery, business cards, promotional materials, computer
hard-drives and all other documents related to the Advertising Product.
10. ASSIGNABILITY.
10.01 LICENSOR shall retain the right to assign any and all of its
rights and interests in this Agreement and the INTELLECTUAL PROPERTY,
subject to the limitations set forth herein. This Agreement shall be
binding upon any such assignee as well as upon any successor of LICENSOR in
ownership or control of the INTELLECTUAL PROPERTY. LICENSEE shall not
assign or license any of its rights under this Agreement without the prior
written consent of LICENSOR, which consent shall be given or withheld in
LICENSOR's sole discretion.
11. PROPERTY RIGHTS.
11.01 Other than the limited license granted herein, all right, title
and interest in and to the INTELLECTUAL PROPERTY is owned and expressly
reserved by LICENSOR for its own use and benefit, subject to the terms and
conditions of this Agreement.
11.02 Except as relates to the enforcement of any rights granted to
LICENSEE hereunder, LICENSEE will not at anytime challenge the validity or
enforceability of the INTELLECTUAL PROPERTY and/or of any registrations
thereof, or challenge the LICENSOR'S ownership right, title or interest in
or to the INTELLECTUAL PROPERTY or that of any successor, assignee,
affiliate or subsidiary of LICENSOR.
12. RELATIONSHIP OF THE PARTIES.
12.01 This Agreement does not create an employment, partnership, joint
venture or agency relationship between the parties, and neither LICENSEE
nor LICENSOR shall have any right, power or authority to act as a legal
representative of the other, and neither party shall have any power to
obligate or bind the other, or to make any representations, express or
implied, on behalf of or in the name of the other in any manner or for any
purpose whatsoever.
13. LIABILITY.
13.01 LICENSOR shall have no liability whatsoever to LICENSEE or any
other person or entity for or on account of any injury, loss or damage, of
any kind or nature, sustained by or any damage assessed or asserted
against, or any other liability incurred by or imposed upon LICENSEE or any
other person or entity, arising out of or in connection with or resulting
from:
(i) the production, marketing, distribution, use, offer for sale
or sale of any ADVERTISING PRODUCT and/or products and materials under
this Agreement; or
(ii) any advertising or other promotional activities by LICENSEE
with respect to the ADVERTISING PRODUCT and/or products and materials
under the INTELLECTUAL PROPERTY or this Agreement.
14. INFRINGEMENT.
14.01 LICENSEE shall immediately notify LICENSOR of any unauthorized
use and/or suspected infringement of the INTELLECTUAL PROPERTY. Such
notification shall include, without limitation, immediately forwarding to
LICENSOR any and all documents relating to any such unauthorized use or
suspected infringement and providing LICENSOR with any and all facts and
circumstances relating to such unauthorized use or suspected infringement.
14.02 LICENSOR shall have the primary, and in the first instance sole,
right to institute a suit for infringement, unfair competition or other
action with respect to any unauthorized use or suspected infringement.
LICENSOR shall have the sole discretion to determine how to handle or
otherwise deal with any infringement or unauthorized use of the
INTELLECTUAL PROPERTY, including the right to settle or otherwise
compromise any dispute or suit, and shall promptly notify LICENSEE of its
decision. LICENSOR shall have no duty to initiate such litigation if, in
its sole judgment, such litigation is not warranted or is not in its best
interests.
14.03 LICENSEE may join and be represented in, at its own expense by
its own counsel, any proceeding relating to any unauthorized use or
suspected infringement to prove its own interests.
14.04 LICENSEE agrees that it shall, at all times, reasonably
cooperate with LICENSOR and its counsel, in all respects, with respect to
any unauthorized use or suspected or alleged infringement at LICENSOR's
expense, including, but not limited to, having LICENSEE's principals,
directors, employees, officers and/or agents testify, and making available
any records, papers, information, specimens and the like when requested by
LICENSOR.
14.05 Any damages and/or recovery received pursuant to such litigation
or settlement or compromise shall be the sole and exclusive property of
LICENSOR.
14.06 If LICENSOR decides, in its discretion, not to take any action
with respect to an unauthorized use or suspected infringement, then
LICENSEE may, at its own option and sole expense, take such action on its
own behalf as it deems appropriate and any damages, recovery, settlement or
compromise obtained thereby shall be for the account of LICENSEE.
15. INDEMNIFICATION.
15.1 LICENSEE agrees to defend, indemnify and hold harmless LICENSOR,
its principals, directors, officers, employees and/or agents, from and
against any and all liabilities, penalties, claims, demands, suits and
causes of action of any nature whatsoever, whether groundless or otherwise,
and any and all damages, costs and expenses sustained or incurred
(including costs of defense, settlement and reasonable attorneys' fees),
asserted by or on behalf of any person or entity arising out of the
production, marketing, distribution, use, offer for sale or sale of any
ADVERTISING PRODUCT and/or products and materials under the INTELLECTUAL
PROPERTY by LICENSEE or under this Agreement, or out of any breach of
representation or warranty by LICENSEE, or out of the negligent acts or
omissions or LICENSEE, its agents, representatives and/or employees, in
connection with the production, manufacture, distribution, use, offer for
sale or sale of any ADVERTISING PRODUCT and/or products and materials under
the INTELLECTUAL PROPERTY by LICENSEE or under this Agreement. Further,
LICENSEE must defend any such actions with counsel of its own choosing.
15.2 LICENSOR agrees to defend, indemnify and hold harmless LICENSEE,
its principals, directors, officers, employees, and/or agents, from and
against any and all liabilities, penalties, claims, demands, suits and
causes of action of any nature whatsoever, whether groundless or otherwise,
and any and all damages, costs and expenses sustained or incurred
(including cost of defense, settlement and reasonable attorneys' fees),
asserted by or on behalf of any person or entity arising out of an
allegation of superior rights by a third party in and to the INTELLECTUAL
PROPERTY. Further, LICENSOR may defend any such action with counsel of its
own choosing; shall have the right to settle or compromise any such dispute
or action when, in its sole judgment, settlement or compromise is
warranted; and shall have the sole right to decide whether to appeal any
adverse decision of a tribunal in any action.
16. BEST EFFORTS.
16.1 LICENSEE has neither an express nor an implied duty to promote,
advertise, market or sell the ADVERTISING PRODUCT, unless otherwise
expressly provided herein.
16.2 LICENSEE shall use its discretionary business judgment to
determine to what extent, if any, it shall exploit the rights granted to it
under this Agreement.
17. SEVERABILITY.
17.1 If any part, term or provision of this Agreement shall be found
to be illegal, unenforceable or in conflict with any valid controlling law,
the validity of the remaining portions of any provisions, and any other
provisions in this Agreement, shall not be affected thereby.
18. INTEGRATION; ALTERATION.
18.1 Integration. This Agreement contains the entire understanding
between the parties and supersedes all other agreements, representations
and warranties, express or implied, between the parties concerning the
INTELLECTUAL PROPERTY.
18.2 Alteration. Any modification or amendment of this Agreement shall
be effective if made in writing and signed by both parties.
19. GOVERNING LAW.
This Agreement shall be construed and interpreted, and its performance
shall be governed, by the substantive laws of the State of Colorado. Any
lawsuit relating to the enforcement, interpretation or construction of this
Agreement shall be brought in a court in Denver, Colorado.
20. NOTICES.
Any and all notices or other writings that are required or permitted under
any of the provisions of this Agreement shall be in writing and shall be deemed
sufficiently delivered if mailed by Certified Mail, addressed to the party
concerned as follows:
(a) if addressed to LICENSOR:
Xx. Xxxx X. Xxx, President
Community Alliance, Inc.
000 Xxxxxx Xxxxx Xxxxxxx, Xxxxx x0-000
Xxxxxx Xxxx, Xxxxxxxx 00000 Phone:
000-000-0000 Fax: 000-000-0000
and
(b) if addressed to LICENSEE:
Ms. Xxxxx Xxxxxx
0000 Xxxxxx
Xxxx, Xxxxxxx 00000
Phone: 000-000-0000 Fax: 000-000-0000
or any other addresses of which either party shall notify the other in writing.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the date first above written as indicated below.
LICENSOR: COMMUNITY ALLIANCE, INC.
By: /s/ Xxxx X. Xxx
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Title: President
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Date: November 1, 2005
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LICENSEE:
By: Xxxxx X. Xxxxxx
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Date: November 1, 2005
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By:
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Date:
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