AMENDED AND RESTATED SUBLICENSE AGREEMENT
Exhibit
10.16
AMENDED
AND RESTATED SUBLICENSE
AGREEMENT
THIS
AMENDED AND RESTATED
SUBLICENSE AGREEMENT
(the
“Agreement” or “Sublicense Agreement”), dated
as
of this 22nd day of July, 2005, is
effective
as of January 1, 2005
by and
between CHEESEBURGER
HOLDING COMPANY, LLC
(“Sublicensor”), and CHEESEBURGER
IN PARADISE, LLC
(“Sublicensee”).
W
I T N E S S E T H:
WHEREAS,
Sublicensor is the exclusive sublicensee of certain rights in the Licensed
Marks
described and/or illustrated in Exhibit B of this Agreement;
and
WHEREAS,
Sublicensee desires to use the Licensed Marks pursuant to the terms of this
Agreement on or in connection with the development, decor, name, promotion
and
operation of a combined restaurant and bar concept to be designed, constructed
and managed in accordance with the Cheeseburger Paradise concept and operating
System and all elements thereof,
including without limitation, recipes, operating technologies, and Licensed
Marks. Sublicensee desires to design, manufacture, advertise, promote, and
sell:
(1) Merchandise approved by Sublicensor that incorporates any element
included in the Licensed Marks, (2) malt and non-malt Alcoholic Beverages
incorporating any element included in the Licensed Marks, and (3) prepared
packaged Foods and Menu Items, at the Restaurants, on the promotional Internet
Web Site designated by the URL “xxxxxxxxxxxxxxxxxxxxxx.xxx” and in any
additional channels of trade that are approved in advance by Sublicensor
hereunder, and
WHEREAS,
Sublicensor
previously granted, pursuant
to that
certain Sublicense Agreement dated October 12, 2000 (“Original Agreement”),
Sublicensee
the right to use the Licensed Marks based on the following
terms and conditions
contained therein;
WHEREAS,
Sublicensor
and Sublicensee desire to amend and restate the Original Agreement in its
entirety, such amendment and restatement to be effective January 1,
2005
NOW,
THEREFORE,
in
consideration of the mutual promises, covenants and conditions contained herein,
it is hereby agreed as follows:
1.
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Definitions.
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“Affiliate”
of a Person shall mean any Person, directly or indirectly, through one or more
intermediaries, controlling, controlled by, or under common control with such
Person, as applicable. The term “control,” as used in the immediately preceding
sentence, shall mean with respect to a corporation or limited liability company
the right to exercise, directly or indirectly, more than fifty percent (50%)
of
the voting rights attributable to the controlled corporation or limited
liability company, and, with respect to any individual, partnership, trust,
other entity or association, the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of the
controlled entity.
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“Agreement,”“Sublicense
Agreement,” or “Sublicense” shall refer to this Amended
and
Restated Sublicense Agreement
and all
terms and conditions contained herein.
“Alcoholic
Beverages” shall include malt and non-malt alcoholic beverages.
“Artwork”
shall mean all depictions of the Licensed Marks incorporated in designs, logos,
or any other creative rendering in any and all media now known or hereinafter
developed.
“Control”
or “Controlled” by Xxxxx Xxxxxxx shall mean that Xxxxx Xxxxxxx either:
(1) owns more than fifty percent (50%) of the voting interests in an
entity; or (2) Xxxxx Xxxxxxx has the ability, pursuant to a written
agreement, to otherwise direct or determine the conduct of the management of
an
entity.
“Food”
shall mean prepared, packaged foods designed for consumption elsewhere than
on
the Restaurant premises (i.e., bottled sauces and condiments), but not including
carry-out items.
“Holdings”
shall refer to Margaritaville Holdings, Inc.
“Licensed
Marks” shall mean any and all trade names, service marks and trademarks which
are both: (1) used in connection with the System; and (2) either
listed in Exhibit B attached hereto, or specifically approved by
Sublicensor.
“Menu
Items” shall mean food items intended for consumption on the Restaurant premises
or for carry-out.
“Merchandise”
shall mean clothing, cups, hats, stickers, key chains and any other items that
are substantially similar to those being offered for sale in Sublicensor’s
existing or future Margaritaville Restaurants, and any additional items approved
by Sublicensor.
“Net
Sales” shall mean all revenue (net of credit card processing fees) from the sale
of all services and products and all other income of any kind and nature related
to each Restaurant, whether for cash or credit and regardless of collection
in
the case of credit; provided, however, that “Net Sales” shall not include (i)
any sales taxes or other taxes collected from customers for transmittal to
the
appropriate taxing authority; or (ii) any sales recorded for control purposes
but for which no payment is received.
“Newly
Developed Xxxx(s)” shall mean any names, trademarks or service marks developed
by Sublicensee which do not incorporate any elements of the Licensed Marks
or
any other intellectual property owned by Xxxxx Xxxxxxx and/or
Sublicensor.
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“Operating
Agreement” shall mean the agreement executed between Cheeseburger in Paradise,
LLC and Cheeseburger Holding Company, LLC to which this Agreement is attached
as
Exhibit B.
“Outback”
shall mean OS Tropical, Inc.
“Outback
Property” shall mean preexisting or hereinafter developed trademarks, logos,
designs, or copyrighted artwork owned by Outback or any Affiliate of
Outback.
“Outback
Steakhouse Restaurants” shall mean the existing restaurant concept developed by
Outback and marketed through the “Outback Steakhouse” name and
xxxx.
“Products”
or “Product” shall mean Merchandise, Food, Alcoholic Beverages, Menu Items, and
promotional items therefor, including but not limited to banners, brochures,
coupons, circulars, table tents, advertisements and signage.
“Restaurant”
or “Restaurants” shall mean the combined restaurant and bar concept to be
designed, constructed and managed in accordance with the Cheeseburger in
Paradise concept and operating System.
“Sublicensed
Use” or “Sublicensed Uses” shall mean uses of the Licensed Marks which have been
approved by Sublicensor pursuant to the terms of this Agreement.
“System”
shall mean: (1) the Cheeseburger in Paradise concept and operating System;
(2) all elements thereof including, without limitation, recipes; operating
technologies and Newly Developed Marks; and (3) Licensed
Marks.
“Territory”
shall mean worldwide with the express exclusion of Hawaii, Mexico and
Japan.
“Web
Site” shall mean the promotional Internet web site designated by the URL
“xxxxxxxxxxxxxxxxxxxxxx.xxx.”
2.
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Sublicense
Grant.
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a. Sublicensor
hereby grants to Sublicensee, and Sublicensee hereby accepts, upon the terms
and
conditions stated in, and for the Term and Territory defined in this Agreement,
an exclusive sublicense to use the CHEESEBURGER IN PARADISE xxxx for
(i) the name of the Restaurants and signage and/or a logo for the name
of
the Restaurants; (ii) for the purpose of developing, decorating,
advertising, promoting and operating the Restaurants, and (iii) for
the
purpose of designing, manufacturing, advertising, promoting and selling Products
at the Restaurants, on the Web Site and in any additional channels of trade
that
are approved in advance by Sublicensor hereunder.
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b. Xxxxx
Xxxxxxx hereby grants Sublicensee a non-exclusive right for
the
Term and Territory defined in this Agreement to
use
Xxxxx Xxxxxxx’x name, image, likeness, song
titles, literary titles and the song “Cheeseburger In Paradise”, upon
the
prior written approval of Xxxxx Xxxxxxx (and/or his designee), which shall
not
be unreasonably withheld. Xxxxx Xxxxxxx and Sublicensee acknowledge that the
Restaurant will have the non-exclusive right to use images related to Xxxxx
Xxxxxxx, (e.g., parrots, fins, a seaplane) with the prior written approval
of
Xxxxx Xxxxxxx (and/or his designee), which approval shall not be unreasonably
withheld.
c. The
exclusive sublicense grant enumerated in this section shall be subject to the
following exceptions: (i) Sublicensor and/or Xxxxx Xxxxxxx (and/or any
entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx) shall have the right
to
use the CHEESEBURGER IN PARADISE xxxx at existing and future Margaritaville
Restaurants as defined in Section 2.e.(i) of this Agreement, and existing
and future Margaritaville retail stores, in a manner materially consistent
with
the use,
as
of October 12, 2000
of the
CHEESEBURGER IN PARADISE xxxx at existing Margaritaville Restaurants and retail
stores; (ii) Sublicensor and/or Xxxxx Xxxxxxx (and/or any entities
Controlled by Sublicensor and/or Xxxxx Xxxxxxx) shall have the exclusive right
to use the CHEESEBURGER IN PARADISE xxxx in conjunction with music, musical
performances and entertainment events, including but not limited to
phonorecords, sound recordings, movies, live concerts, music videos, and concert
videos, in any configuration or media now known or hereinafter developed
(including in any electronic media), which use shall not require the consent
of
Sublicensee; (iii) Sublicensor and/or Xxxxx Xxxxxxx (or any entities
Controlled by Sublicensor and/or Xxxxx Xxxxxxx) shall have the exclusive right
to use the CHEESEBURGER IN PARADISE xxxx in conjunction with any literary or
artistic compositions in any configuration or media now known or hereinafter
developed, including in any electronic media, which use shall not require the
consent of Sublicensee; and (iv) Sublicensor and/or Xxxxx Xxxxxxx (and/or
any entities Controlled by Sublicensor and/or Xxxxx Buffet) shall have the
right
to use the CHEESEBURGER IN PARADISE xxxx on merchandise featured or sold to
or
through the Coconut Telegraph and/or merchandise featured or sold at or in
conjunction with musical performances, concert events, and tour events, in
a
manner
materially consistent with the use,
as
of October 12, 2000,
of the
CHEESEBURGER IN PARADISE xxxx on merchandise. Sublicensor shall not use or
license others to use the CHEESEBURGER IN PARADISE xxxx in any manner materially
inconsistent with Sublicensor and/or Xxxxx Xxxxxxx’x (and/or any entities
Controlled by Sublicensor and/or Xxxxx Xxxxxxx) use of the xxxx as of
October
12, 2000 as
described in (i) and (iv) above, without the prior consent of Sublicensee,
which
consent shall not be unreasonably withheld.
d. Other
than with respect to the exceptions in (i)
through (iv) of Paragraph 2.c., above, and the existing agreements set
forth in Exhibit A-1, which are incorporated herein by reference,
Sublicensor and/or Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor
and/or Xxxxx Xxxxxxx) will not for itself/himself use or grant any sublicenses
for third parties to use the CHEESEBURGER IN PARADISE xxxx in connection with
any goods or services without the prior express written approval of Sublicensee,
which Sublicensee may withhold at its sole discretion.
e. (i) The
parties acknowledge and agree that Sublicensor and/or its subsidiaries,
principals and Affiliates currently hold an interest in the Margaritaville
restaurant concept (“Margaritaville Restaurant(s)”) with locations in Cancun and
Cozumel, Mexico, New
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Orleans,
Key West and Orlando (Universal Studios), Florida, Las Vegas, Nevada, Myrtle
Beach, South Carolina, and New Orleans, Louisiana. Sublicensee agrees that
the
Margaritaville Restaurants, as currently operated in Orlando (Universal Studios)
with the following criteria, (A) a large scale “entertainment” concept with
entertainment elements constructed as part of the interior of the building,
(B) featuring live entertainment, (C) having the size of not
less than
7,500 square feet, and (D) having an interior improvement cost (excluding
cost of land and building) of not less than $300 per square foot (for purposes
of applying this criteria, the cost of $300 per square foot shall be increased
each year starting with 2001 by the annual increase in the Consumer Price
Index
or, if available, another U.S. government index more closely reflecting
increases in construction cost), are not competitive with Sublicensee’s
Restaurants. Xxxxx Xxxxxxx and/or Sublicensor (and/or any entities Controlled
by
Xxxxx Xxxxxxx and/or Sublicensor) shall have the right to continue to operate
all of the Margaritaville Restaurants set forth above in this Subparagraph
and
open additional Margaritaville Restaurants which meet all the criteria specified
in (A) through (D), above, but shall not have the right to operate or sublicense
others to operate any Margaritaville Restaurants (other than the New Orleans
and
Key West locations) that do not meet all of the criteria of (A) through (D).
Notwithstanding the foregoing, Xxxxx Xxxxxxx and/or Sublicensor (and/or any
entities Controlled by Xxxxx Xxxxxxx and/or Sublicensor) shall have the right
to
operate, or sublicense others to operate for the Term and Territory defined
in
this Agreement, Margaritaville Restaurants which meet the criteria of (A),
(B)
and (C), but not (D), in the Caribbean, which shall mean the countries of
Jamaica; Cayman Islands; St. Lucia; Dominican Republic; Dominica; Barbados;
Antigua; Grenada; St. Maarten; Turks and Caicos Islands; British Virgin Islands;
U.S. Virgin Islands and Cuba. Additionally, Xxxxx Xxxxxxx and/or Sublicensor
(and/or any entities Controlled by Xxxxx Xxxxxxx and/or Sublicensor) shall
have
the right to operate, or sublicense others to operate, a Margaritaville
Restaurant at the Jamaica airport in Montego Bay, Jamaica which does not
meet
any of the criteria of (A), (B), (C) or (D), above. The existing agreements
in
Exhibit A-1 relating to Margaritaville Restaurants (other than Key West,
and New
Orleans, as to criteria D the Caribbean and as to criteria (A), (B), (C)
and (D)
the Jamaica airport location) by Sublicensor and/or Xxxxx Xxxxxxx (and/or
any
entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx) are subject to the
criteria of (A) through (D) of this Subparagraph 2.e.(i).
(ii) Sublicensee
acknowledges that Xxxxx Xxxxxxx or any company of which Xxxxx Xxxxxxx is a
majority shareholder or Controlling party shall have the right to play or to
authorize third parties to play the song “Cheeseburger in Paradise” or any of
the songs performed, written, or recorded by Xxxxx Xxxxxxx anywhere in the
world.
f. (i) Sublicensor
can withdraw approval of Sublicensee’s use of the xxxx CHEESEBURGER IN PARADISE
as the name of the Restaurants, Menu Items, Food, or Alcoholic Beverages if:
[A] the Term of this Agreement expires or is earlier terminated; or
[B] Sublicensor is required by law to do so, in which case Sublicensor
acknowledges that such withdrawal may constitute a breach of this
Agreement.
(ii) In
the
event that Sublicensor’s approval is withdrawn regarding Products pursuant to
Subparagraph 2.f(i), Sublicensee shall be entitled to effect a 60-day sell-off
of any of its stock of fully-manufactured Products.
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(iii) Subject
to the Cheeseburger in Paradise, Inc. Hawaii Settlement Agreement listed in
Exhibit A-1
and the
Third-Party Consents and Payments provisions contained in this Agreement,
including Paragraph 10.i.
herein, Sublicensor shall not restrict Sublicensee from: (A) advertising and
promoting the Restaurants or Products; or (B) advertising and promoting the
Restaurants as part of advertisements or promotions in electronic, print,
broadcast or other media subject to Sublicensor’s rights of review and
approval.
g. Xxxxx
Xxxxxxx is currently the owner of the domain name address
“xxxxxxxxxxxxxxxxxxxxxx.xxx” (the “Web Site”). The Web Site may be used by
Sublicensee in connection with promotional materials and the sale of Products
by
the Restaurant(s). Upon submission of a written request by Sublicensee to
Sublicensor when Sublicensee has at least five Restaurants operating
concurrently, Xxxxx Xxxxxxx will transfer ownership of the Web Site to
Sublicensee.
h. (i) Sublicensor,
Holdings and Xxxxx Xxxxxxx agree to maintain the license containing the grant
of
rights from Xxxxx Xxxxxxx to Holdings and the sublicense from Holdings to
Sublicensor, in full force and effect during the Term of this Agreement.
Further, as long as Sublicensee is not in default of this Agreement, any default
in the master license agreement from Xxxxx Xxxxxxx to Holdings or the sublicense
from Holdings to Sublicensor shall not constitute a default under this Agreement
and Xxxxx Xxxxxxx and Sublicensor shall recognize the full force and effect
of
this Agreement.
(ii) Holdings
will not violate or license others to violate Paragraphs 2.a, the last sentence
of 2.c., 2.d. or 2.e.(i) of this Agreement. Xxxxx Xxxxxxx shall prohibit
Holdings or any entity Controlled by Xxxxx Xxxxxxx (as defined in
Paragraph 1) from violating Paragraphs 2.a., the last sentence
of
Paragraphs 2.c., 2.d, or 2.e.(i) of this Agreement. Xxxxx Xxxxxxx shall be
personally liable for any breach or default resulting from any act which would
be a breach or default of Paragraphs 2.a., the last sentence of Paragraphs
2.c., 2.d. or 2.e.(i) of this Agreement, or the representation and warranty
contained in Paragraph 4.(a)(iv) of this Agreement, by any entity
Controlled by Xxxxx Xxxxxxx, provided that the breach or default results in
damage to Sublicensee or its successors or assigns. In the event of a breach
or
default by a person or entity other than an entity Controlled by Xxxxx Xxxxxxx,
Xxxxx Xxxxxxx shall have personal liability for such breach or default only
if
(x) the net worth of Holdings and Sublicensor, at the time of discovery
of
the breach or default and continuing until the remedy thereof is substantially
less than their net worth as of the date of this Agreement; or (y) Xxxxx
Xxxxxxx has signed any document that directly authorizes the third party to
engage in any conduct that would violate Section 2 of this Agreement;
or
(z) Xxxxx Xxxxxxx has given to the third party any personal assistance
directly connected to the specific activity that constitutes the breach or
default. In the event Xxxxx Xxxxxxx is personally liable for a breach or default
by a person or entity other than an entity Controlled by Xxxxx Xxxxxxx solely
under clause (x) of the immediately preceding sentence, Xxxxx Xxxxxxx’x personal
liability shall be limited to commercially reasonable efforts to remedy the
breach or default. In no event shall Xxxxx Xxxxxxx be personally liable for
a
breach of this Agreement until he receives notice of the breach and has the
opportunity to cure the breach pursuant to Paragraph 17
of this
Agreement.
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3.
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Cessation
of Development.
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a.
For
purposes of this Agreement,
Sublicensee shall
be
deemed to have ceased development if Sublicensee has not, in any period of
twenty-four (24) consecutive months, opened three (3) new
Restaurants.
b.
If
Sublicensee ceases development:
(i). Sublicensor
shall have the exclusive right and option to purchase the entire (and not less
than the entire) Membership Interest of Outback in Sublicensee for its Fair
Market Value.
(ii). Determination
of Fair Market Value.
For the
purposes of this Section 3,
the
“Fair Market Value” of the Membership Interest at issue shall be determined in
the following manner:
(i) Outback
and Sublicensor shall in good faith attempt to agree upon the Fair Market Value
of Outback’s Membership Interest within ten (10) days following Outback’s
receipt of Sublicensor’s notice of exercise of its purchase option. If there is
no agreement on the Fair Market Value, Outback and Sublicensor shall in good
faith attempt to agree upon a mutually acceptable appraiser within fifteen
(15)
days following the date of the notice of exercise. In the event they fail to
so
agree, two (2) appraisers shall be appointed within thirty (30) days following
the date of the notice of exercise, one by Outback, and one by Sublicensor.
If
Outback, on the one hand, or Sublicensor, on the other hand, fail to appoint
an
appraiser within the thirty (30) day period specified herein, the sole appraiser
appointed within such thirty (30) day period shall be the sole appraiser for
the
purposes of determining Fair Market Value of Outback’s Membership Interest to be
purchased pursuant to this Section 3.
Outback
and Sublicensor shall promptly provide notice of the name of the appraiser
so
appointed by such party to the other. The initial two appraisers shall in good
faith attempt to agree on the appointment of a third appraiser within fifteen
(15) days of the expiration of the thirty (30) day period. If the first two
appraisers fail to agree upon a third appraiser within such fifteen (15) day
period, either Outback or Sublicensor may demand the appointment of an appraiser
be made by the then director of the Regional Office of the American Arbitration
Association located nearest to Orlando, Florida, in which event the appraiser
appointed thereby shall be the third appraiser. Each of the appraisers shall
submit to Outback and Sublicensor, within thirty (30) days after the final
appraiser has been appointed (“Appraisal Period”), a written appraisal (the
“Appraisal”) of the Fair Market Value of Outback’s Membership
Interest.
(ii) In
connection with any appraisal conducted pursuant to this Agreement, the parties
hereto agree that any appraiser appointed hereunder shall be given full access
during normal business hours to all information required and relevant to a
valuation of Outback’s Membership Interest.
(iii) If
three
appraisers are appointed, the Fair Market Value of Outback’s Membership Interest
in question shall be equal to the numerical average of three appraised
determinations; provided, however, that if the difference between any two
appraisals is not more than ten percent (10%) of the lower of the two, and
the
third appraisal differs by more
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than
twenty-five percent (25%) of the lower of the other two appraisals, the
numerical average of such two appraisals shall be
determinative.
(iv) Any
appraiser, to be qualified to conduct an appraisal hereunder, shall be an
independent appraiser (i.e., not affiliated with Outback, its officers,
directors or controlling persons, Sublicensor or the MHI Principals), an M.A.I.
appraiser or its equivalent, and shall be reasonably competent as an expert
to
appraise the value of the Membership Interest. If any appraiser initially
appointed under this Agreement shall, for any reason, be unable to serve, a
successor appraiser shall be promptly appointed in accordance with the
procedures pursuant to which the predecessor appraiser was
appointed.
Notwithstanding
the foregoing, if the determination of the Fair Market Value of Outback’s
Membership Interest by appraisal is not completed and all appraisal reports
delivered as provided herein within the Appraisal Period, then all closing,
payment, and similar dates subsequent thereto shall be automatically extended
one (1) day for each day delivery of the appraisal reports is delayed beyond
the
end of the Appraisal Period.
(v) The
cost
of the appraiser appointed by each party shall be borne by each such party.
The
cost of the third appraiser, if any, or the sole appraiser, in the event Outback
and Sublicensor mutually agree upon a single appraiser, shall be borne equally
by Outback and Sublicensor.
c. Exercise
of Rights.
(i) Sublicensor
shall exercise the purchase option contained herein by giving written notice
thereof (“Notice of Election”) to Outback within sixty (60) days of the date of
cessation of development (being the first day of the calendar month following
the expiration of the applicable period). If not timely and properly exercised
as provided in this Section, Sublicensor’s purchase option shall lapse and shall
thereafter be null and void.
(ii) The
closing for any purchase hereunder shall be consummated and closed in the
Company’s principal office on a date and at a time designated by Sublicensor in
a notice to Outback, provided such consummation and closing date shall occur
within ninety (90) days from the end of the Appraisal Period. At such closing,
Outback shall execute and deliver all documents and instruments as are necessary
and appropriate, in the opinion of counsel for the Company, to effectuate the
transfer of Outback’s Membership Interest and Sublicensor shall deliver the
purchase price.
d.
If
Sublicensee ceases development and Sublicensor does not timely exercise its
purchase
option,
then Sublicensee shall have twelve (12) months from date of cessation of
development to sell the existing Restaurants to a buyer that intends to resume
development of the Restaurants pursuant to the terms of this Agreement
(“Buyer”). Sublicensor shall have the final right of approval over any Buyer
presented by Sublicensee pursuant to this Paragraph 3e.,
which
approval Sublicensor may withhold at Sublicensor’s sole discretion.
e. If
Buyer
is approved by Sublicensor, Buyer shall have the following amount of time from
date of Buyer’s closing on the purchase in which to resume development of the
Restaurants. Buyer shall be deemed to have resumed development pursuant to
this
Agreement
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when:
(i) Buyer opens at least one (1) new Restaurant within eighteen (18)
months
of closing and (ii) Buyer can show at least one (1) signed agreement
for
the opening of a second Restaurant in a twelve (12) month
period.
f. If
the
Restaurants are not sold by Sublicensee within twelve (12) months of
Sublicensee’s cessation of development for any reason, or if a subsequent Buyer
does not resume development as provided in Subparagraph 3.f.,
this
Agreement shall become non-exclusive. In any such event, Sublicensor shall
have
the right to use the Licensed Marks on any restaurant which is more than a
75
mile
geographic radius mile from an existing Restaurant.
g. Notwithstanding
the above, if Sublicensee has at least 250 Restaurants open, Sublicensor shall
have no rights to develop any additional Restaurants under any circumstances,
unless: (a) the number of Restaurants subsequently falls below 200; or (b)
the
amount of royalty income paid to Sublicensor falls below $ 25 million per year.
Sublicensee may, at its sole discretion, choose to supplement the royalty amount
so that it does not fall below $ 25 million per year.
h. No
Denigration.
Sublicensee shall not denigrate or cause the denigration of the Licensed Marks,
and shall not take any other action not approved by Sublicensor as provided
herein that is harmful or potentially harmful to or which disparages, ridicules
or demeans the goodwill and reputation of Sublicensor, Xxxxx Xxxxxxx or the
Licensed Marks. Sublicensor shall not denigrate or cause the denigration of
any
Newly Developed Marks or Outback Property, and shall not take any other action
that is harmful or potentially harmful to or which disparages, ridicules of
demeans the goodwill and reputation of Sublicensee, Outback, Outback Property,
or the Newly Developed Marks.
i. Third-Party
Sublicenses.
Sublicensee shall obtain a license for the use by Sublicensee of any
intellectual property owned or controlled by a third party which is neither
Sublicensed pursuant to this Agreement nor created by Sublicensee.
4.
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Representations
and Warranties.
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a. As
to
specifically the name, trademark and service xxxx CHEESEBURGER IN PARADISE
identified in Exhibit B attached hereto and incorporated herein by reference,
Sublicensor represents and warrants to Sublicensee that subject to the existing
agreements set forth in Exhibit A-1, and third-party infringements set
forth in Exhibit A-2, which are incorporated herein by reference (together,
the “Disclosures set forth in Exhibit A”):
(i)
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Sublicensor
(and/or any entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx)
is
the exclusive sublicensee of the CHEESEBURGER IN PARADISE xxxx in
the
United States pursuant to an exclusive master license grant from
Xxxxx
Xxxxxxx to Holdings and an exclusive sublicense from Holdings to
Sublicensor;
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(ii)
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Sublicensor
and/or Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor
and/or
Xxxxx Xxxxxxx) has the right to grant the sublicense to use the
CHEESEBURGER IN PARADISE xxxx in the United States, when approved
as
provided herein, pursuant to an exclusive master
license
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grant
from Xxxxx Xxxxxxx to Holdings and an exclusive sublicense from
Holdings
to Sublicensor;
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(iii)
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No
rights of third parties will be infringed or otherwise violated by
Sublicensee's use of the CHEESEBURGER IN PARADISE xxxx in the United
States as permitted in this Agreement;
and
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(iv)
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Sublicensor
and/or Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor
and/or
Xxxxx Xxxxxxx) has not granted to any third party(ies) any rights
that
would preclude or conflict with the grant of rights to use the
CHEESEBURGER IN PARADISE xxxx in the United States that is granted
to
Sublicensee by this Agreement and pursuant to an exclusive master
license
grant from Xxxxx Xxxxxxx to Holdings and an exclusive sublicense
from
Holdings to Sublicensor; and
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(v)
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Sublicensor
and/or Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor
and/or
Xxxxx Xxxxxxx) shall engage in commercially reasonable efforts to
protect
and defend the Licensed Marks.
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b. With
respect to any intellectual property not specifically designated above,
including use of the CHEESEBURGER IN PARADISE xxxx outside of the United States
and in any U.S. territories, Sublicensor grants to Sublicensee all rights that
Sublicensor has within the Territory, without making any representations or
warranties therefor.
5.
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Assignability
and Sublicensing.
|
Except
as
otherwise expressly permitted in this Agreement, Sublicensee shall not have
the
right to assign, transfer or sublicense any of its rights hereunder without
the
consent of Holdings, which Holdings may withhold at its sole
discretion.
Notwithstanding
the prior sentence, Sublicensee has the right to merge with another company
and
to sell any or all of its outstanding stock or member interest to another
company. Holdings shall have the right to utilize royalties paid by Sublicensee,
or any successor in interest or any transferee of any rights, without any
restrictions.
6.
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Term.
|
The
term
of this Agreement (“Term”) shall commence on the date hereof and shall continue
perpetually unless and until the termination provisions set forth in
Section 17
of this
Agreement are exercised.
7.
|
Royalties
and Fees.
|
a. The
parties acknowledge that Sublicensee has paid fees to Sublicensor pursuant
to
the Original Agreement. In addition, Sublicensee has previously paid Holdings
for consulting services. Sublicensee
shall pay to Sublicensor as consideration for the sublicense in this Sublicense
Agreement of the Licensed Marks, a sublicense for all sales which are not the
subject of paragraph 7.b. as follows:
10
(i)
|
on
the day of Sublicensee’s official opening of the twentieth (20th)
Restaurant to the public, Sublicensee shall pay to Sublicensor an
additional twenty thousand dollars ($20,000) and shall pay to Holdings
an
additional nine hundred eighty thousand dollars ($980,000) for consulting
services; and
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(ii)
|
commencing
January 1, 2005, four and one half percent (4.5%) of each
Restaurant’s Net Sales (as defined in
Section
1
of
this
Agreement)
which shall be paid to Sublicensor within ten (10) business days
after the
end of each calendar month
|
b. Sublicensee
shall pay Holdings fifty (50) percent of all net profits derived from licensing
fees or royalties or any other form of revenue received by Sublicensee for
use
of the Licensed Marks on any product sold through a channel of trade other
than
the Restaurants. The sublicense granted pursuant to this Paragraph 7.b. shall
only be available to the Sublicensee after it receives express, written consent
from the Sublicensor regarding the proposed sales of products through a channel
of trade other than the Restaurants. The calculation of net profits shall be
based on generally accepted accounting principles unless the Sublicensor and
Sublicensee agree to the contrary.
c. The
royalty payable to Xxxxx Xxxxxxx by Sublicensor shall be provided for in a
separate document.
8.
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Statements
and Payments.
|
a. Within
ten (10) days after the end of each month during the Term of this Agreement,
Sublicensee shall provide to Sublicensor a complete and accurate accounting
statement for that month of its Net Sales relating to Products sold under this
Agreement, said statement to be certified as accurate by Sublicensee. Each
such
accounting statement, which shall be in conformance with the reasonable
requirements of Sublicensor, must be submitted whether or not any royalties
have
been earned during the accounting period. Accounting statements and accompanying
royalties, if any, shall be delivered to Sublicensor, do Xxxxxxx,
Xxxxxxx & Xxxxxxx, 0000 Xxxxxxx Xxxx Xxxx, Xxxxx 000, Xxx Xxxxxxx,
Xxxxxxxxxx 00000, Attn: Xxxxx X. Xxxxxxx, via nationally recognized
overnight courier service that obtains acknowledgment of receipt by the
addressee.
b. Acceptance
by Sublicensor of any statement furnished or royalties paid shall not preclude
Sublicensor from questioning its correctness and, in the event that any
inconsistencies or mistakes are discovered, they shall be rectified by
Sublicensee within seven (7) calendar days of receipt by Sublicensee of
Sublicensor’s written notice of the inconsistency or mistake.
c. Time
is
of the essence with respect to all payments to be made and interest at a rate
of
prime rate plus five (5) percent per annum, to be calculated monthly on the
unpaid balance, or the maximum legal rate of interest, whichever is lower,
shall
accrue on any amount due Sublicensor calculated from the date on which payment
was due.
11
9.
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Audit.
|
a. Sublicensee
shall keep complete and accurate books of account at its principal place of
business covering all transactions relating to this Agreement.
b. All
books
of account and records of Sublicensee relating to this Agreement shall be
retained for at least four years after the end of each fiscal year to which
they
pertain.
c. Sublicensor
or its duly authorized representative shall have the right, at reasonable hours
of the day and upon reasonable, advance notice, to examine, audit and copy
such
books of account, records, and all other documents and material in Sublicensee’s
possession or control with respect to this Agreement and to make summaries
thereof. In the event that such an audit reveals an underpayment by Sublicensee,
Sublicensee shall, within seven (7) calendar days after Sublicensor’s notice of
such underpayment, remit payment to Sublicensor in the amount of the
underpayment plus interest calculated at the rate of prime rate plus five (5)
percent per annum, or be calculated monthly on the unpaid balance, or the
maximum legal rate of interest, whichever is lower, calculated from the date
such payment(s) were actually due. Regarding each accounting statement,
Sublicensor must give written notice of an intent to exercise the rights granted
in this Paragraph 9.c. no later than the third anniversary of Sublicensor’s
actual receipt of each accounting statement that is the subject of the
examination.
d. If
Sublicensee’s payments are not accurate by five percent (5%) or more,
Sublicensee shall pay the costs of the audit. Additionally, Sublicensee shall
immediately pay to Sublicensor the difference between the amount paid and the
amount owed, plus interest at the prime rate.
10.
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Quality,
Notices, Approvals and Samples.
|
a. Sublicensor’s
Right of Approval.
Sublicensee
acknowledges that the loyalty of Xxxxx Xxxxxxx’x fans is an asset of tremendous
value to Sublicensor and Xxxxx Xxxxxxx, and that meeting fan expectations for
a
quality, fun experience at the Restaurants is of paramount importance. To that
end, Sublicensor, for its own protection and as the quality control
representative of Xxxxx Xxxxxxx, shall, provided that such right is not
exercised in a manner intended to frustrate the purpose of the grant of the
sublicense, have the right to approve or disapprove (1) the taste, texture
and
quality of Food items;
(2) each
particular use of the Licensed Marks;
and (3)
each particular use of the “Cheeseburger in Paradise” song,
including, but not limited to:
(i) use
of
the Licensed Marks in connection with the design, manufacture, packaging,
promotion and sale of Products;
(ii) use
of
the Licensed Marks in connection with the Products;
(iii) the
methods of advertising, promoting or marketing the Products or Restaurants,
including without limitation, (a) the incorporation of any element of
the
Licensed Marks into any design of the Restaurants, audio or video programming
at
the Restaurants, or other entertainment programming at the Restaurants and
(b) promotions,
12
sponsorships,
advertising or tradeouts in and/or for the Restaurants or that focus primarily
on the Restaurants;
(iv) any
other
materials or articles of any kind or nature that use the Licensed
Marks;
and
(v) the
use
of the “Cheeseburger in Paradise” song in any audio or video promotions or
advertising in and/or for the Restaurants and,
if
approved in writing in advance of such use, any other use of that song approved
by Margaritaville Holdings.
b. Submission
of Proposed Uses for Approval.
Sublicensee shall submit to Sublicensor, for approval, prototypes or samples
of
each Product, prior to the manufacture or dissemination of such Product. The
Product shall be submitted with its proposed labeling and packaging, if
possible, but no Product shall be deemed approved unless and until its labeling
and packaging are also approved, if they are submitted separately. If
Sublicensee elects to first submit a design, which Sublicensor approves,
Sublicensee must still, except with respect to matched print advertising,
thereafter submit a prototype or sample for Sublicensor's
approval. With respect to matched print advertising, Sublicensee must provide
Sublicensor with a copy of the advertisement as it appeared in any and all
media
promptly upon the first appearance of the advertisement in any medium. As an
example, if the identical advertisement is run for three succeeding days in
the
same newspaper, Sublicensee need provide only the first day’s advertisement, but
Sublicensee shall indicate the additional days on which the advertisement will
appear in that newspaper. Prototypes submitted by Sublicensee shall, upon
Sublicensee’s written request, be returned by Sublicensor. It shall not,
however, be a breach of this Agreement if Sublicensor fails to return a
prototype.
Sublicensee shall submit to Sublicensor, for approval, a CD for each audio
use
and a DVD for each video use of the “Cheeseburger in Paradise” song, depicting
the particular use of the song.
c. Sublicensor’s
Approval of Proposed Uses.
Sublicensor
shall use its commercially reasonable efforts to send a written notice of
approval or disapproval of each submission as outlined in Paragraph l0.b.
within fifteen (15) calendar days following Sublicensor’s receipt of the
submitted item. Written approval or disapproval shall be sent via facsimile
or
nationally recognized overnight courier service that obtains acknowledgment
of
receipt by the addressee. Notwithstanding anything to the contrary in this
Agreement, failure of Sublicensee to receive written approval of any such
submitted item within fifteen (15) calendar days following Sublicensor’s receipt
of Sublicensee’s submission, which receipt can be verified by independent
documentation produced by Sublicensee, shall constitute approval of the proposed
use. However, if Sublicensor provides Sublicensee with written confirmation
that
Sublicensee may use such submitted item, even after the expiration of a 15-day
period, Sublicensee is authorized, subject to the terms and conditions of this
sublicense, to use the submitted item. Sublicensor’s approval, given during a
Management Committee meeting (as designated in the Operating Agreement) shall
constitute approval in accordance with the requirements of this Paragraph 10.c.
Sublicensee shall not have the right to use the Licensed Marks or any element
thereof unless the particular use by Sublicensee has been approved by
Sublicensor as provided in this Paragraph l0.c.
13
d. Conformity
of Sublicensed Uses to Approved Samples.
All
Sublicensed Uses shall conform in all respects, including style, appearance,
materials, contents, workmanship and overall quality, to the prototypes or
samples that Sublicensor has approved in writing.
(i) If
any
Sublicensed Use later fails to conform to the approved prototype or sample,
then, within seven (7) calendar days after Sublicensee’s receipt of written
notice to that effect from Sublicensor, Sublicensor shall have the right to
withdraw its approval of the Sublicensed Use(s) by delivery of a further written
notice if the failure identified in the initial notice has not been cured.
Sublicensee shall then, upon receipt of such further notice, immediately cease
use of the particular Sublicensed Use(s) identified in the notice.
(ii) Upon
Sublicensor’s request, Sublicensee will furnish to Sublicensor, without charge,
a reasonable number of samples of each Product, with its usual packaging and
labeling, if applicable, to permit Sublicensor to confirm that Sublicensor’s
standards are being observed. Sublicensor or its representatives shall also
have
the right, at any time during normal business hours for the Restaurants, to
inspect Products at the Restaurants or wherever Products are sold, and take
a
reasonable number of samples for purposes of quality inspection, and shall
have
the right to visit the plant or plants where the Products are made at any time
during normal business hours for purposes of quality inspection. For purposes
of
this Subparagraph 10.d.(ii) only, if any Merchandise comes in various
colors and sizes, such as a T-shirt, all the colors and sizes collectively
shall
constitute one item of Merchandise, and samples of each size and color need
not
be provided.
e. Restaurants.
(i) Material
aspects of the Restaurants’ design and operating plans shall be subject to
Sublicensor’s approval, which right shall not be exercised so as to frustrate
the purpose of the grant of this sublicense. The approval of both parties shall
be required regarding Sublicensee’s policies on accommodating Xxxxx Xxxxxxx fan
clubs at the Restaurants. Sublicensor has the right and shall be given the
opportunity to inspect each Restaurant at any time during its construction
and
after all construction and interior decor and fitting out is completed and
each
Restaurant is ready to open.
(ii) No
material aspect of the System shall be changed without Sublicensor’s approval in
writing, which right shall not be exercised so as to frustrate the purpose
of
the grant of this sublicense.
(iii)
Sublicensor shall have the right to inspect all areas (public and non-public)
of
each Restaurant at any time, to be served food and drink during regular hours
of
service which, when consumed in public areas of each Restaurant, shall be free
of charge during regular hours of service; to interview management and staff;
and to inspect records (including, without limitation, letters or notes
regarding customer complaints) to make sure that Sublicensor’s standards are
being observed. Further, the overall quality of each
14
Restaurant shall not be less than that of either the existing Outback Steakhouse
restaurants or existing Margaritaville Restaurants.
f. Ownership
of Artwork.
(i) All
depictions of the Artwork and the copyright in all Artwork shall be solely
and
exclusively owned by Sublicensor, except as otherwise provided in
Subparagraph 10.f.(iii). Notwithstanding Sublicensor’s ownership of all
Artwork, Sublicensor agrees that prior to the expiration or earlier termination
of this Agreement it will not use Artwork developed by Sublicensee unless
Sublicensee has consented to such use, it being acknowledged by Sublicensee
that
Sublicensor has the right to use any underlying Licensed Xxxx that is
incorporated in any such Artwork.
(ii) Any
and
all original Artwork shall be sent to Sublicensor at no cost and prepaid at
Sublicensor’s request not later than thirty (30) days following the termination
or expiration of this Agreement.
(iii) To
the
extent that Sublicensee uses Outback Property on Products, Sublicensor agrees
that the Outback Property shall continue to be solely owned by Outback and
that
Sublicensor shall not register as a trademark or service xxxx any xxxx that
includes Outback Property. Sublicensor shall indicate on any copyright
application in which the deposit specimen incorporates an element of Outback
Property that the Outback Property is a preexisting work excluded from the
scope
of copyright sought.
g. Approval
not a Warranty.
Sublicensor’s approval of a Sublicensed Use or Artwork does not mean that
Sublicensor has determined that the item conforms to applicable laws, that
the
item is safe or fit for its intended purpose or that the item does not infringe
the intellectual property or contractual tights of others, except as otherwise
expressly set forth herein. Sublicensor may also revoke an approval if the
item
subsequently proves to be unsafe, to be deficient in quality, to violate any
law
or to violate the rights of others that are subsequently learned to have existed
at the time approval was granted.
h. Licensed
Marks and Newly Developed Marks.
(i) Sublicensee
shall have the right to request that existing or newly developed names,
trademarks or service marks that incorporate an element of the Licensed Marks
be
included in Exhibit B hereto as Licensed Marks and Sublicensor shall
have
the right to reasonably grant or deny such request. The denial of such a request
on the ground that Sublicensee does not control the particular element of the
Licensed Marks for which a use is sought, or on the ground that existing rights
of a third party prevent approval of the request, shall not be deemed to
frustrate the purpose of the grant of this Agreement.
(ii) Sublicensee
shall own any Newly Developed Marks, consisting of trademarks or service marks
that do not incorporate any element of the Licensed Marks.
15
(iii) With
respect to elements of the Licensed Marks that are subsequently included in
Exhibit B hereto in accordance with Subparagraphs 10.h.(i) and (ii),
Sublicense must still seek approval of each Sublicensed Use (as defined herein)
of each new element of the Licensed Marks pursuant to Paragraph 10.b.
hereof. To the extent that Sublicensor or Sublicensor’s principal intellectual
property attorneys are, at the time approval is requested, aware of exceptions
to the representations and warranties set forth in this Sublicense as they
relate to certain of such additional Licensed Marks, Sublicensor will provide
Sublicensee with such information. It is contemplated that such information
will
be added to the Disclosures set forth in Exhibit A of this Agreement,
as
appropriate, but it shall not be a breach of this Agreement if instead the
information is conveyed to Sublicensee in written form at the time the approval
is given.
(iv) At
the
time that Sublicensor grants approval of an element of a Licensed Xxxx for
proposed use as a trademark or service xxxx, if the Licensed Xxxx is not already
registered as a federal trademark or service xxxx with the U.S. Patent and
Trademark Office for the goods or services on which the Licensed Xxxx is
proposed to be used, then Sublicensee will bear the cost of searching the
availability of the xxxx for use and registration and prosecution of any
subsequent trademark application. Sublicensor will control the process of
searching, registering and protecting such subject trademark application and
will cooperate with Sublicensor’s intellectual property attorneys in order to
facilitate any search, registration and/or prosecution of such subsequent
trademark application. If Xxxxx Xxxxxxx and/or Sublicensor (and/or any entities
Controlled by Sublicensor and/or Xxxxx Xxxxxxx) thereafter makes use of the
xxxx
for such goods or services outside the Restaurants prior to the expiration
or
earlier termination of this Agreement, Sublicensor will, within seven (7) days
after Sublicensor’s receipt of a written reimbursement request from Sublicensee,
reimburse Sublicensee for Sublicensee’s actual out-of-pocket costs of having
searched the xxxx and prosecuted the trademark application.
i. Third-Party
Consents and Payments.
(i) Any
use
of any element of the intellectual property of Xxxxx Xxxxxxx by Sublicensee,
other than the use of the Licensed Marks pursuant to the terms of this
Agreement, including but not limited to the use by Sublicensee of any element
of
any book, short story or other literary property authored or co-authored by
Xxxxx Xxxxxxx and the use by Sublicensee of any element of any musical
composition recorded by Xxxxx Xxxxxxx such as music, lyrics, song titles or
concert videos (collectively, “Other Use”) shall be subject to Sublicensee’s
obligation: (1) to obtain the consent of all appropriate third parties,
including but not limited to publishers, record companies, unions, guilds,
and
public performance societies; and (2) to pay all third-party license
fees,
royalties and other costs in connection therewith; provided,
however,
that,
if such Other Use is otherwise approved by Sublicensor and/or Xxxxx Xxxxxxx
(and/or any entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx) pursuant
to
this Agreement, Sublicensor and/or Xxxxx Xxxxxxx (and/or any entities Controlled
by Sublicensor and/or Xxxxx Xxxxxxx) shall grant or cause its Affiliates to
grant to Sublicensee the requested consent for such Other Use to
the
16
extent
that Sublicensor and/or Xxxxx Xxxxxxx (and/or any entities Controlled by
Sublicensor and/or Xxxxx Xxxxxxx) control such Other Use, and Sublicensor
and/or
Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor and/or Xxxxx
Xxxxxxx) shall use reasonable efforts to facilitate Sublicensee’s attempts to
obtain third-party consents for such Other Use to the extent that Sublicensor
and/or Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor and/or
Xxxxx
Xxxxxxx) do not control such Other Use.
(ii) Sublicensor
and/or Xxxxx Xxxxxxx (and/or any entities Controlled by Sublicensor and/or
Xxxxx
Xxxxxxx) shall not receive any compensation for their consent to the Other
Use
pursuant to Subparagraph 10.(i)(i)(3) hereof other than
(1) the Royalties and/or Fees described in Paragraph 7 of this
Agreement and (2) royalties, except for the song “Cheeseburger In
Paradise”, ordinarily paid by or to book publishers, music publishers, record
companies and their respective creative contributors (e.g., authors, recording
artists, producers and songwriters) for the exploitation of books, audio
recordings, visual recordings, and audio-visual recordings (collectively,
“Primary Copyright Material”) in any configuration or media now known or
hereinafter developed, including in any electronic media, other than
as an
element of a restaurant design, a menu, or an item of merchandise that is not
an
item of actual Primary Copyright Material.
j. Prototypes.
Both
parties acknowledge that it is the intent but not the obligation of the parties
to use XxXxxxx and Company for the development of the prototype and design
of
the CHEESEBURGER IN PARADISE marks and logos, so long as XxXxxxx and Company
is
reasonable in determining any financial obligation of Sublicensee for such
development. Failure to retain XxXxxxx and Company shall not constitute a breach
of this Agreement.
11. Required
Markings.
Sublicensee will display on Products any legends, markings or notices that
are
required by law or that Sublicensor may reasonably request. Notwithstanding
the
foregoing. Sublicensee shall not make any reference to the Licensed Marks
without including the ® or TM
symbol,
as appropriate, and including the notation “[xxxx] is used under license.”
Sublicensee may only eliminate any or all legends, markings, notices or
references with the express prior approval of Sublicensor. Upon receipt of
written notice from Sublicensor, Sublicensee shall have seven (7) days to cure
any omissions of such legends, markings or notices.
12.
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Ownership
of Licensed Marks.
|
a. Sublicensee
acknowledges that, as between it and Sublicensor, Sublicensor and/or Xxxxx
Xxxxxxx (and/or any entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx)
is
the owner of all rights in the Licensed Marks and the goodwill associated
therewith throughout the world and that Sublicensee has the exclusive right
to
use the CHEESEBURGER IN PARADISE xxxx subject to: (i) the Disclosures
set
forth in Exhibit A, and (ii) this Agreement.
b. Sublicensee
agrees, during the Term of this Agreement and thereafter, never to attack the
rights of Sublicensor and/or Xxxxx Xxxxxxx in and to the Licensed Marks or
the
validity of the sublicense being granted herein.
17
c. Sublicensee
agrees that its use of the Licensed Marks inures to the benefit of Sublicensor
and/or Xxxxx Xxxxxxx and that Sublicensee shall not acquire any rights
whatsoever in the Licensed Marks other than the rights expressly provided in
this Agreement
d. Sublicensor
reserves to itself all rights, if any, not expressly granted to Sublicensee
or
subject to a prohibition on Sublicensor’s use or license to others to
use.
e. Subject
to Sublicensee’s rights pursuant to Paragraph 17
of this
Agreement, Sublicensee agrees and acknowledges that following the expiration
or
earlier termination of this Agreement, Sublicensee will not use any of the
Licensed Marks for any purpose, including without limitation on or in connection
with Restaurants, Products, Food, Menu Items, Alcoholic Beverages or
otherwise.
13.
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Trademark
and Copyright Protection and Infringements.
|
a. Sublicensor
may obtain at its own cost and in Xxxxx Xxxxxxx’x own name or the name of an
Affiliate or Sublicensor, appropriate copyright and trademark protection for
the
Licensed Marks or newly developed marks not designated as Licensed Marks
worldwide, subject only to the attached Exhibits A-l and A-2. Sublicensee
agrees reasonably to cooperate with Sublicensor in protecting the Licensed
Marks, and for that purpose, Sublicensee will supply to Sublicensor or its
representatives from time to time and at no charge such samples, containers,
labels and similar material, and information regarding the Products or services
offered under this Agreement, as reasonably may be required. Sublicensee also
will execute and deliver to Sublicensor and/or Xxxxx Xxxxxxx (and/or any
entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx), at any time, whether
during or after the Term of this Agreement and without further consideration,
such instruments of transfer and other documents as Sublicensor may prepare
and
reasonably request in order to confirm Sublicensor’s and/or Xxxxx Xxxxxxx’x
copyright or trademark ownership rights.
b. Sublicensee
agrees that it shall not at any time, anywhere in the world, apply for any
registration of any copyright, trademark or other designation which would affect
the ownership of the Licensed Marks by Sublicensor and/or Xxxxx Xxxxxxx (and/or
any entities Controlled by Sublicensor and/or Xxxxx Xxxxxxx) nor file any
document with any governmental authority to take any action which would affect
the ownership of the Licensed Marks by Sublicensor and/or by Xxxxx Xxxxxxx
(and/or any entities Controlled by Sublicensor and/or Xxxxx
Xxxxxxx).
c. When
requested by Sublicensor, Sublicensee agrees to assist Sublicensor in connection
with any intellectual property claims dealing with the enforcement of
Sublicensor’s and/or Xxxxx Xxxxxxx’x (and/or any entities Controlled by
Sublicensor and/or Xxxxx Xxxxxxx) rights in the Licensed Marks that Sublicensor
may choose to bring. Sublicensor agrees to reimburse Sublicensee’s reasonable
out-of-pocket expenses incurred in providing such assistance. With respect
to
any intellectual property actions not caused by any breach of this Agreement
by
Sublicensee that Sublicensor may choose to bring, Sublicensor shall, at
Sublicensor’s cost and expense, employ counsel of its own choice to direct the
handling of such claims and any settlement thereof. Sublicensor shall be
entitled to receive and retain all amounts awarded as damages, profits or
otherwise in connection with such suits.
18
d. With
the
exception of any matters disclosed in the attached Exhibit A-1 and A-2,
Sublicensee hereby warrants that, as of the date of this Agreement, it has
no
knowledge that anyone other than Sublicensor and/or Xxxxx Xxxxxxx has any
rights, including without limitation copyright or trademark rights, in or to
the
CHEESEBURGER IN PARADISE xxxx, or any element thereof, in the United
States.
e. Sublicensor
agrees that it shall promptly take commercially reasonable steps to apply for
and register the CHEESEBURGER IN PARADISE xxxx in the countries within the
Territory that are specifically designated by Sublicensee in which Sublicensee
can demonstrate a legitimate intent to open a Restaurant within eighteen (18)
months of Sublicensee’s request that Sublicensor pursue the CHEESEBURGER IN
PARADISE xxxx in that country.
14.
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Indemnification.
|
a. Indemnification
by Sublicensee.
Sublicensee will defend, indemnify, and hold Sublicensor, and its affiliated
companies, and the respective officers, directors, employees, agents, attorneys,
heirs, members, successors, parents and assigns of the foregoing, harmless
against and in respect of: (i) any and all loss, damage, or liability resulting
from any breach or claim of breach of any representation or warranty or the
no
fulfillment of any covenant, agreement or obligation on the part of Sublicensee
hereunder; and (ii) any and all actions, suits, proceedings, demands,
assessments, judgments, costs and expenses (including reasonable attorneys’ fees
and expenses) instant to the foregoing, or resulting from tort claims or other
claims arising out of Sublicensee’s use of the Licensed Marks, including,
without limitation (A) product liability or similar claims based on
sale of
Products produced by, or to the order of, Sublicensee, and (B) injury,
wrongful death, negligence or battery claims by customers of the Restaurants
or
their estates, except claims by a third party, based on facts or circumstances
not otherwise disclosed in Exhibit A-1 or A-2 of this Agreement, that
use
of the CHEESEBURGER IN PARADISE xxxx pursuant to the terms of this Agreement
infringes or otherwise violates a third party’s intellectual
property.
b. Indemnification
by Sublicensor.
Sublicensor will defend, indemnify and hold Sublicensee and its officers,
directors, employees, agents, attorneys, members, successors, parents and
assigns harmless against and in respect of: (i) any and all loss, damage,
or liability resulting from any breach or claim of breach of any representation
or warranty or the non-fulfillment of any covenant, agreement or obligation
on
the part of Sublicensor hereunder (ii) any and all claims, actions,
suits,
proceedings, demands, assessments, judgments, costs and expenses (including
reasonable attorneys’ fees and expenses), collectively referred to as “Claims”
instant to the foregoing; and (iii) any and all Claims by a third party
based on facts not otherwise disclosed in Exhibit A-1 or A-2 to this
Agreement that use of the CHEESEBURGER IN PARADISE xxxx pursuant to this
Agreement infringes or otherwise violates such third-party’s intellectual
property rights. For avoidance of doubt, there is no indemnification to
Sublicensee with respect to Sublicensee’s use of any of the Licensed Marks
outside the United States, including U.S. territories, or for use of Licensed
Marks other than the CHEESEBURGER IN PARADISE xxxx within the United
States.
c. Notification.
If any
demand, claim or suit is asserted or instituted with respect to which a party
may be entitled to indemnification under the foregoing provisions, such party
will
19
give
prompt notice thereof to the party who or which may be liable for
indemnification, including full details to the extent known.
d. Third-Party
Intellectual Property Claims.
With
respect to infringement claims by third parties against Sublicensee asserting
that Sublicensee’s use of the Licensed Marks infringes their rights, Sublicensee
will give prompt notice thereof to Sublicensor and Sublicensor shall have the
sole right to direct and control the defense and settlement of such claims
at
Sublicensor’s sole expense, unless such claims are based on the breach of this
Agreement by Sublicensee, in which case such costs shall be borne exclusively
by
Sublicensee. Such rights shall not be exercised in an arbitrary or capricious
manner.
15. Video
Simulcasts.
If
Margaritaville Holdings, LLC receives a transmission of a concert or other
performance, of music performed by Xxxxx Xxxxxxx, except for a transmission
of a
live concert or other live performance intended to be transmitted within a
one
(1)-mile radius, in the United States, Sublicensor shall cause Margaritaville
Holdings, LLC to permit Sublicensee, if Sublicensee elects to do so, to have
the
transmission simultaneously broadcast to the Restaurants. Notwithstanding
the above, the Sublicensor has no duty to permit the transmission of any such
broadcast unless the Sublicensee maintains its own equipment with an operating
level that is substantially equal to or greater than the
equipment found at Xxxxx Xxxxxxx’x Margaritaville in Orlando,
Florida.
16.
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Insurance.
|
a. Sublicensee
shall, throughout the Term of this Agreement, obtain and maintain at its own
cost and expense, from a qualified insurance company, standard liability and
product liability insurance, the form of which must be acceptable to
Sublicensor, naming Sublicensor and Xxxxx Xxxxxxx as additional named insureds.
The amount of coverage shall be a minimum of ten million dollars (S 10 million)
combined single limit with a two hundred fifty thousand ($250,000) self-insured
retention deductible amount for each single occurrence for bodily injury and/or
for property damage. No events can erode the coverage unless directly connected
to the operation of the Restaurants. The policy shall provide for ten (10)
days
notice to Sublicensor from the insurer by registered or certified mail, return
receipt requested, in the event of any modification, cancellation or termination
of the insurance. Sublicensee agrees to furnish Sublicensor a certificate of
insurance evidencing same within thirty (30) days after execution of this
Agreement and, in no event, shall Sublicensee use the Licensed Marks prior
to
receipt by Sublicensor of such evidence of insurance.
b. Errors
and Omission/Advertising Liability Insurance.
Sublicensee shall use its best efforts to obtain an insurance policy naming
Sublicensee and Sublicensor as named insureds and covering a minimum of ten
million dollars ($10 million) resulting from any and all loss, damage, or
liability resulting from Sublicensee’s use of the Licensed Marks pursuant to
this Agreement. If Sublicensee is able to identify the availability of such
a
policy, then, prior to obtaining the policy, Sublicensee shall provide notice
to
Sublicensor specifying the precise terms
20
and
coverage of the policy, including the annual premium for the policy, and
Sublicensee and Sublicensor jointly shall negotiate the terms of the policy
with
the insurer, such terms to be subject to the mutual approval and agreement
of
Sublicensee and Sublicensor. The annual premium for the policy initially
shall
be paid by Sublicensee, provided that, at the end of each fiscal year during
which the policy is in place, Sublicensee may deduct from the royalties payable
to Sublicensor hereunder an amount equal to twenty percent (2074 of the total
annual premium for the policy paid during such fiscal year. Notwithstanding
the
foregoing provisions of this Paragraph 16.b.,
if
Sublicensor, in Sublicensor’s absolute discretion, believes that the annual
premium for the policy is not economically justified, then it shall so notify
Sublicensee, in which case Sublicensee shall not be required to purchase
the
policy; provided that if Sublicensee then decides to purchase the policy,
Sublicensee must then do so at its sole expense.
17.
|
Termination
and Cure of Breach.
|
In
the
event that any party objects to an alleged breach by another party, the party
alleging the breach shall give detailed written notice of the alleged breach
to
the other party. Except as otherwise provided below or elsewhere in this
Agreement, the other party shall then have thirty (30) days after the date
of
the receipt of such notice either to cure the breach (in the case of breaches
that reasonably can be cured within that period) or to begin to cure the breach
(in the case of breaches that cannot reasonably be cured within that period;
provided, however, that the other party diligently pursues the cure thereafter).
The party claiming breach shall have no right to file suit for breach of this
Agreement unless and until the thirty (30) day cure period has expired or,
in
the case of breaches that cannot reasonably be cured within thirty (30) days
and
in which the other party is diligently pursuing a cure, a reasonable additional
period has expired.
a. In
the
circumstances set forth in this Paragraph, Sublicensor may terminate this
Agreement upon seven (7) days’ advance, written notice to
Sublicensee:
(i)
|
Sublicensee
is dissolved, unless Sublicensee is administratively dissolved and
the
dissolution is cured within thirty (30)
days;
|
(ii)
|
Sublicensee
files a petition in bankruptcy or is adjudicated a bankrupt or insolvent,
or makes an assignment for the benefit of creditors, or an arrangement
pursuant to any bankruptcy law, or if a receiver is appointed for
Sublicensee (or Sublicensee’s business) who or which is not discharged
within thirty (30) days; or
|
(iii)
|
If,
two or more times during a twelve (12) month period, Sublicensee
fails to
pay royalties or fails to make submission of royalty statements within
thirty (30) days of the due date;
or
|
(iv)
|
Sublicensee,
its Affiliates, entities and their directors and senior officers
take or
cause Sublicensee or any of Sublicensee’s directors or senior officers to
take any actions in connection with the Licensed Marks that materially
damage Sublicensor and/or the Licensed Marks or materially disparage
Sublicensor and/or Xxxxx Xxxxxxx. Notwithstanding
the
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21
|
foregoing,
Sublicensee acknowledges an affirmative responsibility to take
commercially reasonable action to stop the conduct by any officers,
directors, agents or employees of Sublicensee or its Affiliates
in the
event that any of the foregoing take or cause Sublicensee or any
of
Sublicensee’s officers, directors, agents or employees to take any actions
in connection with the Licensed Marks that materially damage Sublicensor
and/or the Licensed Marks or materially disparage Sublicensor and/or
Xxxxx
Buffet Sublicensor reserves the right to pursue legal action against
any
individual or entity referenced in this paragraph in the event
that the
foregoing occurs. Both parties acknowledge that the above Subparagraph
17.a.(iv)
shall not prohibit internal communication by Sublicensee, its officers,
directors, agents or employees for the purpose of evaluating the
relationship set forth in this Agreement between Sublicensor and
Sublicensee.
|
b. In
the
circumstances set forth in this Paragraph, Sublicensee must commence and
complete the cure of the breach as soon as possible and in no event later than
seven (7) days from Sublicensor’s notice of breach with respect to
Subparagraph 17.b.(i)
and
thirty (30) days from Sublicensor’s notice of breach with respect to
Subparagraphs 17.b.(ii),
and b.(iii):
(i)
|
Sublicensee
is subject to any voluntary order of any government agency involving
the
safety, health or other hazards or risks to the public or, according
to a
government agency having jurisdiction, operates the Restaurants m
a manner
that is dangerous to the health and safety of the public; provided,
however, that Sublicensee shall not be required to completely remedy
such
a breach within seven (7) days where that is not reasonably practicable,
if it has promptly commenced and is diligently pursuing a
cure;
|
(ii)
|
Sublicensee
breaches any provision of this Agreement that prohibits Sublicensee
from
directly or indirectly assigning, transferring, sublicensing or otherwise
encumbering this Agreement or any of its rights or obligations thereunder;
or
|
(iii)
|
Sublicensee
sells dangerously defective Merchandise, Food or Alcoholic Beverages
without taking steps to reasonably correct or repair the defect
immediately upon receipt of notice of the defect by Sublicensee.
In
addition to any other available remedies, Sublicensor shall have
the right
to withdraw approval of Sublicensee’ s use of the Licensed Marks in
conjunction with Merchandise, Food or Alcoholic Beverages in the
event a
defect is not cured within sixty (60) days from the date Sublicensee
first
becomes aware of the defect.
|
18.
|
Effect
of Termination.
|
a. Buy-Out
by Sublicensor.
If
Sublicensor exercises and closes on its exclusive right and option to buy out
Outback’s interest in Sublicensee pursuant to Section 3
(“Buy-Out”),
22
then
all
rights granted to Sublicensee pursuant to this Sublicense shall immediately
revert back to Sublicensor.
b. Change
of Name of Venue.
Upon
the expiration or termination of this Agreement with no Buy-Out by Sublicensor,
Sublicensee shall have five (5) days to remove all Restaurant signage and sixty
(60) days to sell any Food, Alcoholic Beverages or Merchandise manufactured
prior to the expiration or termination of this Agreement Sublicensee
acknowledges that, in the event that this Agreement expires or is terminated,
all tights in and to the Licensed Marks shall revert immediately back to
Sublicensor.
c. Products.
Upon
the expiration or earlier termination of this Agreement for any reason
whatsoever, Sublicensee shall have no further right to manufacture or sell
the
Products, to display the Licensed Marks or to use the Licensed Marks in any
way,
and all uses of the above-referenced marks by Sublicensee shall cease,
including, without limitation, the manufacture or sale of the Products, except
as otherwise approved in writing by Sublicensor. Sublicensee will then destroy
all Products, unless Sublicensor consents in writing to another manner of
disposition. However, if this Agreement expires, or if this Agreement is earlier
terminated, other than under a provision that gives rise to a right of
termination under Paragraph 17.a.
of
this Agreement, (i) Sublicensee shall promptly furnish Sublicensor a
full
and complete inventory showing all Products on hand and in the process of
manufacture, and (ii) Sublicensee shall provide written assurance to
Sublicensor that Products in process of manufacture shall not be
completed.
d. Upon
the
expiration or earlier termination of this Agreement, notwithstanding anything
to
the contrary herein, all accrued and unpaid royalties due hereunder shall become
due and payable within seven (7) days after such event.
e. Sublicensee
acknowledges that its failure to cease the use of the Licensed Marks, or any
class or category thereof at the expiration or earlier termination of this
Agreement, will result in immediate and irreparable damage to Sublicensor and
to
the rights of any subsequent Sublicensee of Sublicensor. Sublicensee
acknowledges and admits that there is no adequate remedy at law for failure
to
cease the manufacture, sale or distribution and Sublicensee agrees that, in
the
event of such failure, Sublicensor shall be entitled to equitable relief by
way
of injunctive relief and such other relief as any court with jurisdiction may
deem just and proper.
19.
|
Notices.
|
Except
as
provided in Subparagraph 8.a. of this Agreement with respect to royalty
and
service fee payments and Accounting Statements, all notices required to be
sent
to a party shall be in writing to the following addresses unless notification
of
a new address is properly provided in accordance herewith. All notices shall
be
delivered by facsimile and a nationally recognized overnight courier service
that obtains written acknowledgment of receipt by the addressee. Notice shall
be
deemed given upon receipt.
23
To
Sublicensor:
Cheeseburger
Holding Company, LLC
000
Xxxxx
Xxxxxx
Xxxxx
X-X
Xxxx
Xxxxx, Xxxxxxx 00000
Attention: Xxxx
Xxxxxx
Facsimile: 000-000-0000
and Xxxxxxx
X. Xxxxx
Xxxxxxxxx
Xxxxxxx, LLP
0000
Xxxxxxxx Xxxx, Xxxxx 000
Xxxxxxx,
Xxxxxxx 00000
Facsimile: 000-000-0000
To
Sublicensee:
Cheeseburger
in Paradise, LLC
0000
X.
Xxxxxxxxx Xxxx.
Xxxxx
000
Xxxxx,
XX
00000
Attention: Xxxxx
Xxxxxxxx
Facsimile: 000-000-0000
With
a
copy to:
Xxx
Xxxxx, Esq.
5th
Floor
0000
X.
Xxxxxxxxx Xxxx.
Xxxxx
000
Xxxxx,
XX
00000
Facsimile: 000-000-0000
20.
|
Dispute
Resolution.
|
Sublicensor
and Sublicensee acknowledge that it is their respective best interests to
resolve disputes arising out of the relationship created through this Agreement
through mutual agreement without the assistance of the judicial process wherever
reasonably possible. Sublicensor and Sublicensee agree that as a condition
precedent to the institution of any litigation of issues between Sublicensor
and
Sublicensee arising out of this Agreement, the following efforts will be
undertaken:
a.
|
First,
disputes which are not promptly resolved by Sublicensee’s employee charged
with responsibility for the day-to-day operation of the Restaurants
and
Sublicensor or Sublicensor’s designated representative shall be submitted
for review and discussion to the senior executives of Sublicensee
and
Sublicensor who have full authorization to make decisions necessary
to
resolve the dispute.
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b.
|
Second,
in the event the dispute is not resolved through the efforts of the
senior
executives within ten (10) days following submission of the issue
to the
senior executives, either party may invoke mandatory mediation of
the
dispute utilizing the services of an independent licensed Mediator.
The
costs of the Mediator shall
|
24
|
be
shared equally between Sublicensor and Sublicensee. Senior executives
from
both parties shall personally participate in the mediation proceedings
contemplated herein and shall endeavor in good faith to achieve
a
resolution of the dispute though mutual agreement The senior executives,
who shall have full authority to decide on behalf of and bind their
respective entities, will allocate at least one (1) full business
day of
their time in for the mediation process on any issue submitted
to
mediation hereunder.
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c.
|
Third,
in the event mutual agreement cannot be achieved though the foregoing
process, within thirty (30) days from the date mediation begins,
either
party may submit the dispute for arbitration in Orlando, Florida.
In the
event a dispute is submitted for arbitration, both parties agree
that the
rules of the American Arbitration Association (AAA) shall
govern.
|
d.
|
Fourth,
any party to this Agreement may apply to any court of competent
jurisdiction for equitable relief, after complying with the notice
procedure set forth in Paragraph 19.a.
|
21.
|
Choice
of Laws.
|
This
Agreement shall be governed by, and its terms and conditions construed in
accordance with, applicable common law and statutes of the State of Delaware,
without giving effect to the conflict of law rules of that State.
22.
|
Waiver.
|
No
waiver
by any party of a breach or a default hereunder shall be deemed a waiver by
such
party of a subsequent breach or default of a similar nature.
23.
|
Severability.
|
In
the
event that any term or provision of this Agreement shall for any reason be
held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other term or provision
and
this Agreement shall be interpreted and construed as if such term or provision,
to the extent the same shall have been held to be invalid, illegal or
unenforceable, had never been contained therein.
24.
|
Revocation
of Prior Agreements.
|
Any
and
all prior agreements, including (a) any and all prior agreements between
Sublicensee, on one hand, and Sublicensor, on the other, and (b) any and all
prior agreements between Sublicensee and any other corporation or entity
controlled by Sublicensor, relative to the licensing of all or part of the
Licensed Marks and to any other matters discussed herein, are hereby revoked,
and the provisions of this Agreement alone shall be determinative of the
conditions pursuant to which Sublicensee shall be Sublicensed to use the
Licensed Marks and the resolution of such other described matters.
25
25.
|
Headings.
|
The
headings in this Agreement are solely for convenience and shall not be used
to
interpret or construe this Agreement.
26.
|
Integration.
|
The
Agreement represents the entire understanding between the parties hereto with
respect to the subject matter hereof and supersedes all previous
representations, understandings or agreements, oral or written, between the
parties with respect to the subject matter hereof and cannot be modified except
by a written instrument signed by all of the parties hereto.
27.
|
Time.
|
Time
is
of the essence in this Agreement.
28.
|
Third-Party
Beneficiaries.
|
Nothing
in this Agreement shall give rise to any rights to any Person not a party to
this Agreement or to any Affiliates of the parties.
29.
|
Ambiguities.
|
Any
ambiguities in the language, content or structure of this Agreement shall not
be
construed against the drafter. The parties acknowledge that they have, through
their own attorneys, participated in the drafting of this
agreement.
30.
|
Signatures.
|
This
Agreement may be executed in any number of counterparts, each of which shall
constitute an original and all of which together shall constitute one and the
same agreement. The signature of a party obtained via facsimile shall be valid
and binding for all purposes.
31.
|
Injunctive
Relief.
|
Sublicensor
agrees that a breach of any of the covenants contained in
Paragraph(s) 2.a., 2.e.,
and
2.f.(i)
of
this Agreement may cause irreparable injury to Sublicensee for which the remedy
at law may be inadequate and would be difficult to ascertain. Therefore, in
the
event of the breach of threatened breach of any such covenants, Sublicensee
shall be entitled, in addition to any other rights and remedies it may have
at
law or in equity, to seek an injunction to restrain Sublicensor from any
threatened or actual activities in violation of any such covenants. Sublicensor
hereby consents and agrees that temporary and permanent injunctive relief may
be
granted in any proceedings which might be brought to enforce any such covenants
without the necessity of proof of actual damages, and in the event Sublicensee
does apply for such an injunction, Sublicensor shall not raise as a defense
thereto that Sublicensee has an adequate remedy at law.
26
32.
|
Binding
Effect.
|
This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective Affiliates, sublicensees, successors and permitted
assigns.
By
their
execution below, the parties hereto have agreed to all of the terms and
conditions of this Agreement.
CHEESEBURGER HOLDING COMPANY, LLC | |||
By: | /s/ Xxxx Xxxxxx | ||
Name: | Xxxx Xxxxxx | ||
Title: | Chief Executive Officer | ||
CHEESEBURGER IN PARADISE, LLC | |||
By: | /s/ Xxxxx X. Xxxxxx | ||
Name: | Xxxxx X. Xxxxxx | ||
Title: | President |
By
their
execution below, Xxxxx Xxxxxxx has agreed to the terms and conditions set forth
in Subparagraphs 2.b., 2.d., 2.e.(i), 2.h.(i) and 2.h.(ii) of this
Agreement, and Holdings has agreed to the terms and conditions set forth in
Subparagraphs 2.d., 2.e.(i), 2.h.(i), 2.h.(ii) and the last sentence
of
Subparagraph 2.c. of this Agreement.
By: | /s/ Xxxxx Xxxxxxx |
27
MARGARITAVILLE HOLDINGS | |||
By: | /s/ Xxxx Xxxxxx | ||
Name: | Xxxx Xxxxxx | ||
Title: | Chief Executive Officer |
28
EXHIBIT
A-1
Summary
of Existing Agreements
I. Restaurant/Store
License Agreements
A. Key
West Restaurant
License
Agreement dated as of November 14, 1989 by and between Xxxxx Xxxxxxx and Xxxxx
Xxxxxxx'x Margaritaville Restaurant of Key West, Inc., granting a non-exclusive,
non-assignable, non-transferable license, without the right to grant
sublicenses, to use the name and likeness of Xxxxx Xxxxxxx, and any and all
copyrights, song titles (including but not limited to "Cheeseburger in
Paradise"), trademarks and other intellectual property owned or created by
Xxxxx
Xxxxxxx (the "Property") solely in connection with the operation of one
restaurant in Key West, Florida. All artwork relating to the Property,
notwithstanding its invention, is property of Buffett.
B. Key
West Store
License
Agreement dated as of November 1, 1991 by and between Xxxxx Xxxxxxx and the
Margaritaville Store, Inc., granting a non-exclusive, non-assignable,
non-transferable license, without the right to grant sublicenses, to use the
name and likeness of Xxxxx Xxxxxxx, and any and all copyrights, song titles
(including but not limited to "Cheeseburger in Paradise"), trademarks and other
intellectual property owned or created by Xxxxx Xxxxxxx (the "Property") solely
in connection with the operation of a souvenir store in Key West, Florida.
All
artwork relating to the Property, notwithstanding its invention, is property
of
Buffett.
28
C. New
Orleans Restaurant
License
Agreement dated as of March 1, 1993 by and between Xxxxx Xxxxxxx and
Margaritaville Cafe of New Orleans, Inc., granting a non-exclusive,
non-assignable, non-transferable license, without the right to grant
sublicenses, to use the name and likeness of Xxxxx Xxxxxxx, and any and all
copyrights, song titles (including but not limited to "Cheeseburger
in Paradise"), trademarks and other intellectual property owned or created
by
Xxxxx Xxxxxxx (the "Property")
solely in connection with the operation of one restaurant at 0000-00 Xxxxxxx
Xxxxxx, Xxx Xxxxxxx, Xxxxxxxxx 00000. All artwork relating to the Property,
notwithstanding its invention, is property of Buffett.
D. New
Orleans Store
License
Agreement dated as of May 8,
1992
by and between Xxxxx Xxxxxxx and Margaritaville New Orleans, Inc., granting
a
non-exclusive, non-assignable, non-transferable license, without the right
to
grant sublicenses, to use the name and likeness of Xxxxx Xxxxxxx, and any and
all copyrights, song titles (including but not limited to "Cheeseburger
in Paradise"), trademarks and other intellectual property owned or created
by
Xxxxx Xxxxxxx (the "Property")
solely in connection with the operation of a souvenir store at #0 Xxxxxx Xxxxxx
Xxxxx, Xxx Xxxxxxx, Xxxxxxxxx. All artwork relating to the Property,
notwithstanding its invention, is property of Buffett.
E. Charleston
Store
License
Agreement dated as of 1999
by and
between Xxxxx Xxxxxxx and Margaritaville Charleston, Inc., granting a
non-exclusive, non-assignable, non-transferable license, without the right
to
grant sublicenses, to use the name and likeness of Xxxxx Xxxxxxx, and any and
all copyrights, song titles (including but not limited to "Cheeseburger
in Paradise"), trademarks and other intellectual property owned or created
by
Xxxxx Xxxxxxx
(the "Property") solely in connection with the operation of a retail store
located at 000 Xxxx Xxxxxx, Xxxxxxxxxx, Xxxxx Xxxxxxxx 00000. All artwork
relating to the Property, notwithstanding its invention, is property of
Buffett.
29
|
F.
Las Vegas Store/Restaurant
|
Parball,
Inc., Margaritaville Las Vegas, LLC, and Margaritaville Holdings, LLC formed
MP
Flamingo, LLC for the sole purpose of developing, constructing, operating,
maintaining, and managing a restaurant (including bar, entertainment venue,
and
retail store) at the Flamingo Casino in Las Vegas, Nevada. License Agreement
dated as of June 5, 2002 between Margaritaville Holdings, LLC and MP Flamingo,
LLC., granting a non-exclusive license to use the tradename, service marks,
trademarks, logos, recipes, menus, operations manuals, concepts, trade secrets,
culinary expertise, training programs, and other intellectual property
associated with the Margaritaville restaurants and retail concept, including
the
right to use the Xxxxx Xxxxxxx name and sell merchandise bearing the properties.
The agreement includes territory restrictions for other Margaritaville
Holdings-affiliated restaurants, excluding the Outback Steakhouse/ Cheeseburger
in Paradise restaurants in Xxxxx County, Nevada, or within a 50-mile radius
from
Parball-owned facilities outside Xxxxx County.
G.
Jamaica
Agreement
Xxxxx
Xxxxxxx/Margaritaville Holdings entered into a license agreement in April 2001
with Margaritaville Ltd., a company incorporated under the laws of Jamaica,
granting a non-exclusive, non-assignable, non-transferable license to use the
MARGARITAVILLE, XXXXX XXXXXXX’X MARGARITAVILLE, XXXXX XXXXXXX’X, and
CHEESEBURGER IN PARADISE marks,
as
well as the name and approved likeness of Xxxxx Xxxxxxx, copyrights, songs,
play
and book titles, song lyrics, trademarks and other intellectual property for
the
development of restaurants and related merchandise in the
Caribbean. The
agreement specifically provides for the development of restaurants and sale
of
products in a Territory consisting of:
Jamaica,
Cayman Islands, St. Lucia, Dominican Republic, Dominica, Barbados, Antigua,
Grenada, St. Maarten, Turks & Caicos Islands, British Virgin Islands, U.S.
Virgin Islands, and Cuba, including airports in those countries.
H. Orlando
Restaurant
Xxxxx
Xxxxxxx entered into a trademark license agreement on September
11,
1997
with Universal City Restaurant Partners, L.P., the general partner of which
is
Margaritaville Holdings,
30
L.L.C.
and the limited partner of which is Universal City Development Partners.
Pursuant to this agreement, Buffett granted to Universal an exclusive license
to
develop a Xxxxx Xxxxxxx'x
Margaritaville Cafe restaurant or a restaurant, night club or other venue
primarily for food or beverage in the
"exclusive territory".
Buffett agreed not to open a competing establishment in a territory
consisting of: a territory that is within (1) a
150
mile radius of the Universal venue or (2) any
gated-attraction theme park (or entertainment complex attached to a theme
park)
in the State of Florida with an annual attendance of at least 500,000 customers.
Further, Buffett granted a non-exclusive license to Universal to use any
and all
copyrights, song titles, trademarks, and other intellectual property owned
by
Buffett (or any Buffett affiliate), except
the xxxx MARGARITAVILLE as a promotional slogan in connection with the sale
of
xxxxxxxxx cocktails in restaurants (pursuant to the Chi-Chi’s Agreement), and
A1A and Design for clothing and headwear.
The
CHEESEBURGER IN PARADISE xxxx is specifically licensed to Universal for
:
(1)
T-shirts
and sweatshirts and (2)
sandwiches; the XXXXX XXXXXXX’X xxxx is specifically licensed to Universal for
restaurant/nightclub and souvenir store services; and the MARGARITAVILLE
and
XXXXX XXXXXXX’X MARGARITAVILLE marks are specifically licensed for
restaurant/nightclub and souvenir store services, T-shirts, sweatshirts,
polo
shirts, outerwear, headwear, beverage glassware and cups.
However,
the license agreement is potentially broad enough to include uses of the
above
marks
by
Universal for unlimited goods and services sold either through the restaurant
or
channels of trade with approval by Buffett, which approval can be withdrawn
at
any time at Buffett's
sole
discretion upon seven (7) days notice to Universal. Such discretion must be
exercised reasonably according to the express terms of the agreement based
on
circumstances other than a legal issue raised by Universal’s use of such item,
or a use by Universal that is inconsistent with an approved use previously
granted by Buffett for a particular item. Uses of the marks other than for
the
specifically designated goods
are
designated non-essential to the terms of the license in Paragraph
3(b).
All
artwork depicting the marks, notwithstanding its invention, is property of
Buffett, but can only be used by Buffett with Universal’s consent during the
term of the license.
31
I. Cancun
Restaurant
Xxxxx
Xxxxxxx/Margaritaville Holdings
entered
into an
exclusive license agreement for
a
Margaritaville
restaurant in Cancun, Mexico. The agreement contemplates a non-exclusive right
to use
certain
service marks, trademarks, trade names, copyrights, slogans, logos and trade
dress as are used in conjunction with Orlando and other existing Margaritaville
restaurants.
The
Agreement explicitly excludes the right to use
CHEESEBURGER IN PARADISE as
the
name of a restaurant, the right to use MARGARITAVILLE as a promotional slogan
in
connection with the sale of xxxxxxxxx cocktails in restaurants in the U.S.,
the
right to use DON’T STOP THE CARNIVAL for any goods and services, and the right
to use A1A & Design for clothing and hats. The Agreement was executed on
January 16, 2002 for a ten-year term, with two ten-year renewal periods. Airport
locations in or near Cancun are also being negotiated.
J. Cozumel
Restaurant
Xxxxx
Xxxxxxx/Margaritaville Holdings entered into an exclusive license agreement
for
a Margaritaville restaurant in Cozumel, Mexico. The agreement contemplates
a
non-exclusive right to use certain service marks, trademarks, trade names,
copyrights, slogans, logos and trade dress as are used in conjunction with
Orlando and other existing Margaritaville restaurants. The Agreement explicitly
excludes the right to use CHEESEBURGER IN PARADISE as the name of a restaurant,
the right to use MARGARITAVILLE as a promotional slogan in connection with
the
sale of xxxxxxxxx cocktails in restaurants in the U.S., the right to use DON’T
STOP THE CARNIVAL for any goods and services, and the right to use A1A &
Design for clothing and hats. The Agreement will be executed in the near future
for a ten-year term, with two ten-year renewal periods. Airport locations in
or
near Cozumel are also being negotiated.
II. Other
License Agreements
A. License
Agreement between Margaritaville Holdings, Inc. and Xxxx’x,
Inc.
Margaritaville
Holdings granted
an exclusive license agreement to Xxxx’x, Inc.
to
manufacture, label, package, distribute and sell ready-to-drink pre-mixed
alcoholic beverages and alcoholic and non-alcoholic cocktail mixers within
the
United States, Canada and
Mexico
32
under
the
MARGARITAVILLE xxxx and variations thereof. The license was entered into
on
September 30, 2000, for a term of four years, with an option to renew for
two
additional terms of two years each.
B. License
Agreement between Margaritaville Shrimp Holding Co.,
Margaritaville
Holdings,
LLC and Fishery Products International
Margaritaville
Holdings granted Fishery Products an exclusive license to package and distribute
frozen pre-packaged food products that contain shrimp under the xxxx
MARGARITAVILLE SHRIMP in the United States, with provisions in the Agreement
for
expansion of the products to include other seafood and automatic expansion
of
the territory to include countries in which Buffett acquires trademark rights
in
MARGARITAVILLE SHRIMP. The Agreements were executed on June 15, 2002, for a
three year term and provide for two renewal periods.
C. License
Agreement between Cheeseburger Holding Company, LLC and
Cheeseburger
in Paradise, LLC
Pursuant
to master licenses from Xxxxx Xxxxxxx to Margaritaville Holdings and
Margaritaville Holdings to Cheeseburger Holding Company, LLC (“CHC”), CHC has
granted an exclusive license to Cheeseburger in Paradise, LLC (a subsidiary
of
OS Tropical, Inc./ “Outback”) for use of the CHEESEBURGER IN PARADISE xxxx for
restaurants, merchandise, prepared, packaged foods, alcoholic beverages, menu
items and promotional items. The exclusive license grant is subject to
exceptions which allow Xxxxx Xxxxxxx and/or his controlled entities to use
the
xxxx in existing Margaritaville stores and restaurants and on tour merchandise
and merchandise sold through the Coconut Telegraph in a manner materially
consistent with current use of the xxxx, and allow Xxxxx Xxxxxxx the exclusive
right to use the xxxx in connection with music and literary compositions. Xxxxx
Xxxxxxx and/or his controlled entities are expressly forbidden from using or
granting licenses to third parties to use the xxxx for any other goods or
services without prior approval.
Xxxxx
Xxxxxxx also granted a non-exclusive license to use his name, image, likeness,
song titles, literary titles, and images related to Xxxxx Xxxxxxx (i.e. parrots,
fins, a seaplane) with prior written approval, not to be unreasonably
withheld.
33
The
territory covered by the agreement is worldwide with the express exclusion
of
Japan, Hawaii and Mexico. The term of the agreement is perpetual subject to
express termination provisions set forth in the agreement.
Further,
the agreement defines Margaritaville Restaurants as (A) a large scale
“entertainment” concept with entertainment elements constructed as part of the
interior of the building, (B) featuring live entertainment, (C) having the
size
of not less than 7,500 square feet, and (D) having an interior improvement
cost
(excluding cost of land and building) of not less than $300 per square foot,
and
restricts Xxxxx Xxxxxxx and his controlled entities from operating
Margaritaville Restaurants other than as described above. However, the agreement
allows the continued existence of the New Orleans and Key West Margaritaville
Restaurants, which do not meet the above criteria, and allows the operation
of
Margaritaville Restaurants in the Caribbean, defined as Jamaica, Cayman Islands,
St. Lucia, Dominican Republic, Dominica, Barbados, Antigua, Grenada, St.
Maarten, Turks and Caicos Islands, British Virgin Islands, U.S. Virgin Islands
and Cuba, that meet the criteria of (A) through (C), above, but not (D).
Further, Buffett and his controlled entities shall have the right to operate,
or
sublicense others to operate a Margaritaville Restaurant at the Jamaica Airport
at Montego Bay, Jamaica that does not meet the criteria of (A)-(D)
above.
D. License
Agreement Between Margaritaville
Tequila,
LLC and Xxxxx Xxxxxxx Corp.
Margaritaville
Tequila, LLC, pursuant to license agreement with Margaritaville Holdings, Inc.,
granted Xxxxx Xxxxxxx
an
exclusive license to use and/or sublicense affiliates or third parties to use
the MARGARITAVILLE xxxx for all purposes relating to the manufacturing,
bottling, labeling, packaging, importing, selling, advertising, marketing and
distributing tequila
products worldwide as well as the non-exclusive license to use and/or sublicense
affiliates or third parties to use the MARGARITAVILLE xxxx for promotional
items
relating to tequila. The agreement was executed on June 14, 2002, for an initial
term of ten years, with options to renew for two additional ten year
periods.
34
E. License
Agreement Between Margaritaville SPI, LLC
and
Sunbeam Products, Inc.
Pursuant
to master licenses from Xxxxx Xxxxxxx to Margaritaville Holdings, LLC, and
Margaritaville Holdings to Margaritaville SPI, LLC (“SPI”), SPI has granted an
exclusive license to Sunbeam Products, Inc. for use of the MARGARITAVILLE Design
Xxxx including the Hemisphere Dancer Cartouche Design, for blenders, coolers,
and grills, with provisions in the Agreement for expansion of the products
to
include small appliances for food and beverage preparation and cooking, and
indoor and outdoor cookware, indoor and outdoor tabletop accessories, indoor
and
outdoor tableware and indoor and outdoor gas and electric lighting products.
The
license was entered into on July 14, 2004, for a term expiring on December
31,
2013, with options to renew for three additional terms of five years each.
F. License
Agreement Between Margaritaville Footwear, LLC
and
ACI
International
Pursuant
to master licenses from Xxxxx Xxxxxxx to Margaritaville Holdings, LLC, and
Margaritaville Holdings to Margaritaville Footwear, LLC (“Footwear”), Footwear
has granted an exclusive license to ACI International to advertise, merchandise,
promote, publicize, and sell footwear under the xxxx MARGARITAVILLE to mid-tier
retailers (such as department stores, family footwear stores, sporting goods
stores, specialty retailers and surf shops), clubs (such as Costco, Sam's,
Price
Club, etc.),
and
price retailers (such as T.J. Maxx, Ross, etc.),
in
any location where the xxxx is registered. The license was entered into on
July
19, 2004, for a term expiring on December 31, 2007.
G. License
Agreement between Xxxxx Xxxxxxx and Chi-Chi’s, Inc.
In
1988,
Xxxxx Xxxxxxx and Chi-Chi’s, Inc. entered into a perpetual exclusive license
agreement granting Xxxxx Xxxxxxx a license to use Margaritaville as “all or part
of the name of restaurants in the United States," based upon Chi-Chi’s prior use
and registration for Margaritaville for restaurant services. Pursuant to this
agreement, Chi-Chi’s agreed to use the Margaritaville xxxx only as the name of
particular rooms or areas within restaurants and/or as promotional slogans
and
advertising in restaurants operated by it or its affiliates. Xxxxx Xxxxxxx
further agreed not to use Margaritaville “as a promotional slogan in connection
with the sale of
35
xxxxxxxxx
cocktails in restaurants.” In 2004, Xxxxx Xxxxxxx purchased Chi-Chi’s prior
registrations of the Margaritaville xxxx.
III. Settlement/Coexistence
Agreements
A. Cheeseburger
In Paradise, Inc.
Hawaii
Settlement Agreement
The
owners of a restaurant in Hawaii (CIPI) own U. S. Registration No. 1,765,057
for
CHEESEBURGER IN PARADISE and Design for restaurant and bar services;
Registration
No. 2,418,610
for
CHEESEBURGER IN PARADISE
for
restaurant and bar services; Application
Ser. No. 75/553,387
for
CHEESEBURGER IN
PARADISE
& Design
for
restaurant and bar services;
and
Application Ser. No. 75/978,135
for
CHEESEBURGER IS
A STATE
OF MIND
for
restaurant and bar services.
Pursuant
to a confidential settlement agreement and Court Order issued by the United
States District Court for the Central District of California, Western Division,
CIPI has limited its use of the CHEESEBURGER IN PARADISE marks
within
the United States to (1) the
name
of no more than one restaurant in Lahaina, Maui, Hawaii and one restaurant
in
Waikiki, Oahu, Hawaii; (2) menu
items at each of the two restaurants; and (3) promotion
of the restaurants. Outside of the U.S., CIPI has limited its use of the
CHEESEBURGER IN PARADISE marks
to
Mexico and Japan.
Pursuant
to that same Settlement Agreement and Court Order, Xxxxx Xxxxxxx or any company
in which Xxxxx Xxxxxxx is a majority shareholder or controlling
party,
has the
right to use the CHEESEBURGER IN PARADISE xxxx anywhere in the
world, except
that in
Hawaii, Mexico and Japan only, Buffett shall not use the xxxx on, in connection
with or as a name of a bar, casino, restaurant, nightclub, lodging or resort
services; as a food item; or on a food menu
other
than either in an ornamental manner with at least, and no more prominently
than
one other song, book or play title or other word xxxx of [Buffett]; or as a
xxxx
for or in connection with merchandise items, provided other merchandise items
without that xxxx also appear or are mentioned in the same section of the menu.
¶7(a)(ii).
36
The
agreement expressly states that CIPI shall not be limited in the number of
restaurants it may open in Hawaii bearing the CHEESEBURGER IN PARADISE xxxx.
Additionally, CIPI has limited rights to sell merchandise bearing the
CHEESEBURGER IN PARADISE xxxx.
Buffett
may not use or display the CHEESEBURGER IN PARADISE xxxx anywhere in the world
in the manner specifically depicted in CIPI's
Registration No. 1,765,057
(below):
(CIPI
Design)
Buffett
is permitted to use the CHEESEBURGER IN PARADISE song title or xxxx anywhere
in the world in conjunction with the promotion, advertising or marketing of
any
goods, merchandise, services or businesses in any media, including via the
Internet, mass mailings of catalogs or any other means, provided that
within
the U.S., such marketing, advertising or promotion is not disseminated primarily
to Hawaii,"
and
“within Mexico and/or Japan, such advertising, marketing or promotion is not
primarily targeted to areas where Defendants [CIPI] have provided [Buffett]
with
written notice . . . that [CIPI] . . . or any other company of which any one
or
more of the Defendants [CIPI] is a majority shareholder or controlling party,
owns or operates a restaurant under the name ‘Cheeseburger in
Paradise’.”
Despite
this
Settlement Agreement, CIPI has recently opposed Licensor’s use of
the
CHEESEBURGER IN PARADISE &
Design marks for jewelry, beverage glassware, clothing and nightclub services
in
the U.S. (Single Palm Design and Multiple Palm Design). The Board dismissed
the
oppositions with prejudice. A lawsuit filed by Xxxxx Xxxxxxx against CIPI in
federal court in California for violations of the Settlement Agreement is
currently pending.
B. Co-Existence
Agreement between Xxxxx
Xxxxxxx and Tropic Isle Foods, Inc.
Pursuant
to the terms of a co-existence agreement between Buffett and Tropic Isle Foods,
Inc., Tropic Isle will not object to use or registration of MARGARITAVILLE
by
Buffett for any goods, services and business throughout the world, including
Northern California and Hawaii, except Buffett cannot use MARGARITAVILLE as
the
name of a restaurant in Northern California or on the four main Hawaiian
islands.
37
Tropic
Isle can use MARGARITAVILLE in the name of three existing restaurants in
Northern California, up to 15 additional restaurants in Northern California
(defined as “north of a line running entirely through California from east to
west along the southernmost limits of a city of San Xxxx Obispo”) and one
restaurant on each of the four Hawaiian islands of Hawaii (main island), Maui,
Oahu and Kauai. As a minor sideline to the restaurant, Tropic Isle can
manufacture, sell or give away, in their MARGARITAVILLE restaurants in Northern
California and Hawaii, certain souvenir items at a cashier’s counter or another
small counter in the restaurant or in response to unsolicited remote orders.
Tropic Isle retains state registrations for MARGARITAVILLE in California and
Hawaii.
C. Agreement
between Xxxxx Xxxxxxx and Kukai Caliente
On
July
31, 1990, Xxxxx Xxxxxxx and Kukai Caliente, Inc. entered into a settlement
agreement as a result of Kukai Caliente’s use of MARGARITAVILLE as the name of a
chain of Mexican restaurants in Connecticut, Massachusetts and Maine. Pursuant
to the agreement, Kukai Caliente agreed to immediately and permanently cease
all
use of the MARGARITAVILLE xxxx and within 60 days file express abandonments
or
cancellations of any federal, state or foreign trademark or service xxxx
registrations including the term MARGARITAVILLE. The agreement further provided
for phase-out of various forms, menus, and promotional items, with the longest
phase-out period not to exceed thirty-six months.
Xxxxx
Xxxxxxx agreed to release Kukai Caliente from all claims contingent upon full
performance of the agreement by Kukai Caliente. Further, Xxxxx Xxxxxxx agreed
not to object to Kukai Caliente’s use or registration of XXXXXXXXX or
MARGARITA’S as the new name of its restaurants.
IV. Tour
Sponsorship Agreements
A. Assignment
Agreement with Margaritaville Merchandising, Inc.
Margaritaville
Merchandising, Inc. has entered into an assignment agreement with Xxxxx Xxxxxxx
assigning to Buffett all rights, titles and interests of every kind and nature
whatsoever in and to all illustrations commissioned by independent illustrators
for use in connection with apparel and other merchandise for the various
Margaritaville Stores. As part of the agreement,
38
Margaritaville
Merchandising waives its “moral rights” and specifically gives Buffett the right
to add to, subtract from ,
rearrange, edit and/or change the work.
B. Tour
Merchandising Agreements with Giant Merchandising, Inc.
Xxxxx
Xxxxxxx has entered into tour merchandising agreements with Giant Merchandising
for clothing and similar merchandise to be sold in conjunction with Xx.
Xxxxxxx’x concert tours and events within the United States.
C. Tour
Sponsorship Agreement between Xxxxx Xxxxxxx and The
Gambrinus
Company
Tour
agreement for the purpose of receiving promotional benefit for Corona Extra
Beer
and Corona Light Beer and providing financial support to Xxxxx Xxxxxxx’x
2000-2001 Summer Tours fully executed. This agreement was not renegotiated
in
light of the potential license agreement with Anheuser Xxxxx for MARGARITAVILLE
ICE. However, it appears that Gambrinus and Xxxxx have continued to operate
under an implied license.
D. Tour
Sponsorship Agreement
between Xxxxx Xxxxxxx and Xxxxxx
Xxxxx,
Ltd.
Tour
agreement for the purpose of providing promotional benefit for Corona Extra
Beer
and Corona Light Beer and providing financial support to Xxxxx Xxxxxxx’x
2000-2001 Summer Tours fully executed. This agreement was not renegotiated
in
light of the potential license agreement with Anheuser Xxxxx for MARGARITAVILLE
ICE. However, it appears that Xxxxxx and Xxxxx have continued to operate under
an implied license.
E. Tour
Sponsorship Agreement between Xxxxx Xxxxxxx
and
Xxxxx
Xxxxxxx Corporation
Xxxxx
Xxxxxxx Corp. agrees to provide financial support to and serve as a co-sponsor
for Jimmy’s tours in return for certain promotional benefits of Margaritaville
Tequila. No other entities may co-sponsor the tours except Corona Beer, Anheuser
Xxxxx, or radio stations. The sponsorship agreement is applicable through
December 31, 2004, with options to renew on an annual basis
thereafter.
39
F. License
Agreement between Surf Safari, Inc., Margaritaville
Longboard,
LLC, and Xxxxxxx Xxxxxxxxx
Margaritaville
Longboard, LLC entered into an agreement with Surf Safari, Inc. d/b/a Longboard
Magazine to serve as the Tour Title Sponsor for the 2002 Professional Longboard
Surfing Championships. The agreement includes a license to use the
MARGARITAVILLE LONGBOARD intellectual property for promotional purposes and
on
videos and tour merchandise, including hats, T-shirts, beach towels, and mugs.
Margaritaville Longboard shall have a right of first refusal with respect to
future tour sponsorships, through the 2005 series.
40
EXHIBIT
A-2
Unauthorized
Uses of the CHEESEBURGER IN PARADISE XXXX - United States
In
the
U.S., there are unauthorized third-party uses of marks or business names that
include components of the CHEESEBURGER IN PARADISE xxxx. Most are small
producers of T-shirts and other merchandise and single-location restaurants
and
bars. It can be extremely difficult to detect such small unauthorized users
and
it is likely that there are other unauthorized users of which Sublicensor is
unaware. The continuing unauthorized uses about which Sublicensor knows, and
their status, are identified below.
For
purposes of this Exhibit, Licensor’s
knowledge is defined as actual knowledge or the actual knowledge of Licensor’s
principal intellectual property attorneys. Licensor
does not
regularly survey business databases and the Internet looking for unauthorized
uses. Past infringements that to the best of Licensor’s
knowledge have ended are not included in this Exhibit. Below is an initial
summary of existing third-party infringements:
Online
Infringements
- There
are a number of online infringers, who utilize eBay, CafePress, or their own
domain names to sell unauthorized merchandise. We regularly police and shut
down
these infringers. If you would like information on specific online
infringements, please request it in writing.
Altoona,
Iowa
- The
Prairie Xxxxxxx Racetrack and Casino purportedly offered “Paradise
Cheeseburgers” in connection with a “Xxxxx Xxxxxxx night” in June 2004. We
contacted them and they agreed to stop this infringement.
We
have docketed the matter for follow-up in June 2005 to confirm they do not
use
the xxxx again in 2005.
Boone/Blowing
Rock, North Carolina
- We
received a report in 1995 that this single-location restaurant is operating
under the name Cheeseburger
in Paradise."
At
one
time, the restaurant owner filed a federal trademark application to register
CHEESEBURGERS IN PARADISE NEIGHBORHOOD GRILLE&
BAR
(and Design) for restaurant services, which application was abandoned in 1993.
40
The
restaurant owner agreed to change the name of his
restaurant to CHEESEBURGERS GRILLE AND PARADISE BAR.
We are
in the process of negotiating
a
settlement agreement.
Xxx
Island, Florida -
We
received a report of the Cabbage Key Restaurant making claims that its “Cabbage
Key Burger” was the inspiration behind “Cheeseburger in Paradise.” Investigation
suggests that Cabbage Key Restaurant does not offer a “Cheeseburger in Paradise”
menu item. We are in the process of following up on this matter.
Milwaukee,
Oregon
- We
received a report that the River Road house Sports Bar &
Grill restaurant features “Burgers in Paradise,” Bigger Burgers in Paradise” and
“Chicken in Paradise” menu items and a Xxxxx Xxxxxxx-related theme. We are in
the process of following
up
on
this
matter.
Naples,
Florida
- We
received a report that a
Xxxxx
Bahamas Cafe has a menu item called “Paradise Nation Cheeseburger.”
We
are
in
the
process of following
up
on
this
matter.
Pittsburgh,
Pennsylvania
- We
received a report that Xxxxx B's
Restaurant has a "Cheeseburger
in Paradise"
menu
item. We are in the process of following
up
on
this
matter.
Pittsburgh,
Pennsylvania
- In
1997, we received a report of this “Margaritaville” restaurant which also offers
a “Cheeseburger in Paradise” menu item. A cease and desist letter was sent but
the restaurant owners refused to cooperate aside from discontinuing the
restaurant’s website. Based on the restaurant’s length of use of the marks, this
matter was not pursued.
Redmond,
Washington
-
We
received a report that Medtronic
Physio-Control was
offering
a “Cheeseburger in Paradise”promotion.
We are
in the process of following
up on
this matter.
41
Sandusky,
Ohio
- This
existing “Margaritaville” restaurant operates under a license from Chi-Chi’s
restaurant and offers a “Cheeseburger in Paradise” menu item.
St.
Augustine, Florida
-
We
received a report that
a
Sunset Grille restaurant has a menu item called “Cheeseburger in Paradise”. We
are in the process of following up on this matter.
Tampa,
Florida -
We
received a report that
a
Gordo’s
Gulfcoast restaurant has a menu item called“Cheeseburger
in Paradise.”
We are
in the process of following up on this matter.
00
XXXXXXX
X
XXXXXXXX
XXXXX -Xxxxxx Xxxxxx
App.
Ser. No./Reg. No.
|
Goods
& Services Subject of
Application
and
Registrations
listed herein
|
|
CHEESEBURGER
IN PARADISE
|
Reg.
No. 1,935,684
|
T-shirts
and sweatshirts
|
CHEESEBURGER
IN PARADISE
|
Reg.
No.
2,468,644
|
Sandwiches
|
CHEESEBURGER
IN PARADISE
|
Reg.
No.
2,790,010
|
Restaurant,
bar and nightclub services
|
CHEESEBURGER IN PARADISE |
Serial
No. 78/211,425
|
Jewelry,
lapel pins and watches
|
CHEESEBURGER
IN PARADISE
|
Serial
No. 78/211,424
|
Jewelry,
lapel pins and watches
|
CHEESEBURGER IN PARADISE |
Serial
No. 78/211,449
|
Clothing,
namely shirts, T-shirts, sweatshirts and baseball caps
|
CHEESEBURGER
IN PARADISE
|
Serial
No. 78/211,432
|
Clothing,
namely shirts, T-shirts, sweatshirts and baseball caps
|
CHEESEBURGER IN PARADISE |
Serial
No. 78/211,448
|
Restaurant
and bar services, and providing information in the field of restaurant
and
bar services, namely food and drink menus, location information and
driving directions via the Internet; and
Nightclub
services and providing information in the field of nightclub services,
namely live entertainment event calendars, location information and
driving directions via the Internet.
|
CHEESEBURGER
IN PARADISE
|
Serial
No. 78/211,430
|
Beverage
glassware, shot glasses and foam drink holders.
|
CHEESEBURGER
IN PARADISE
|
Serial
No. 78/211,429
|
Beverage
glassware, shot glasses and foam drink
holders.
|
41