TRADEMARK LICENSING AGREEMENT

  Whole Doc.

  Agreement made this ___________day of ______________, between ___________(hereinafter called “Licensor”), and ________(hereinafter called “Licensee”):WITNESSETH

  Whereas Licensor  owns  certain  valuable  registered  trademarks  and service marks, and owns and has  merchandising  rights  to  various  other Licensor properties as defined in paragraph 1 of the Rider attached hereto and hereby made a part  hereof  (hereinafter  called  “Name”),  said  Name having been used over the facilities of numerous stations in radio  and/or television  broadcasting  in  allied  fields,  and  in   promotional   and advertising material in different businesses  and  being  well  Known  and recognized by the general public and associated in the  public  mind  with Licensor, and

  Whereas Licensee desires to utilize the Name upon  and  in  connection with the  manufacture,  sale  and  distribution  of  articles  hereinafter described,

  Now,  Therefore,  in  consideration  of  the  mutual  promises  herein contained, it is hereby agreed:

  1 Grant of License

  (a) Articles

  Upon the terms and conditions hereinafter set forth,  Licensor  hereby grants to Licensee as a related company, and Licensee hereby  accepts  the right, license and privilege of utilizing the Name solely  and  only  upon and in connection with the  manufacture,  sale  and  distribution  of  the following articles.

  (insert description)

  (b) Territory

  The license hereby granted extends only to ________________.  Licensee agrees that it will not make, or authorize, any use, direct  or  indirect,of the Name in any other  area,  and  that  it  will  not  knowingly  sell articles covered by this agreement to persons who intend or are likely  to resell them in any other area.

  (c) Term

  The term of the license hereby  granted  shall  be  effective  on  the _______day of ____________ and shall continue until  the  _______  day  of __________, unless sooner terminated in  accordance  with  the  provisions hereof. The term of this license may be automatically renewed from year to year upon all the terms and conditions contained herein,  with  the  final renewal to expire on December 31st, ____________. At the end of each term,beginning with December 31st,  ________________,  this  license  shall  be automatically renewed for a one year term expiring December  31st  of  the following year, unless either party hereto shall be given  written  notice to the contrary at least thirty (30) days prior to the expiration date.

  2 Terms of Payment

  (a) Rate

  Licensee agrees  to  pay  to  Licensor  as  royalty  a  sum  equal  to __________percent of all net sales by Licensee or any of  its  affiliated,associated or  subsidiary  companies  of  the  articles  covered  by  this agreement. The term “net sales”  shall  mean  gross  sales  less  quantity discounts and returns, but no deduction shall be made for  cash  or  other discounts or uncollectible accounts. No costs incurred in the manufacture,sale, distribution or exploitation of the articles shall be deducted  from any royalty payable by Licensee. Licensee agrees  that  in  the  event  it should pay any other Licensor  a  higher  royalty  or  licensing  rate  or commission than that provided herein for the use of the  Name,  than  said higher rate shall automatically and immediately apply to this contract.

  (b) Minimum Royalties

  Licensee  agrees  to  pay  to   Licensor   a   minimum   royalty   of ___________Dollars ($______) as a minimum guarantee against  royalties  to be paid to Licensor during the first contract term, said  minimum  royalty to be paid on or before the last day  of  the  initial  term  hereof.  The advance sum of______________ dollars ($ __________) paid  on  the  signing hereof shall be applied against such guarantee. No part  of  such  minimum royalty shall in any event be repayable to Licensee.

  (c) Periodic Statements

  Within _________ days after  the  initial  shipment  of  the  articles covered by this agreement, and promptly on the _________________  of  each calendar  __________  thereafter,  Licensee  shall  furnish  to   Licensor complete and accurate statements certified  to  be  accurate  by  Licensee showing the number, description and gross sales price, itemized deductions from gross sales price and net sales price of the articles covered by this agreement  distributed  and/or  sold  by  Licensee  during  the  preceding calendar ____________, together with any returns made during the preceding calendar ___________ For this purpose, Licensee shall  use  the  statement form attached hereto, copies of which form may  be  obtained  by  Licensee from Licensor. Such statements shall be furnished to Licensor  whether  or not any of the articles have  been  sold  during  the  preceding  calendar ____________.

  (d) Royalty payments

  Royalties in excess of the aforementioned minimum royalty shall be due on  the  ___________  day  of  the  ____________  following  the  calendar _____________ in which earned, and payment shall accompany the  statements furnished as required above. The receipt or acceptance by Licensor of  any of the statements furnished pursuant to this agreement or of any royalties paid hereunder (or the cashing of any royalty checks paid hereunder) shall not preclude Licensor from questioning  the  correctness  thereof  at  any time, and in the event that any inconsistencies or mistakes are discovered in such statements or payments, they shall immediately  be  rectified  and the  appropriate  payment  made  by  Licensee.   Payment   shall   be   in _______________. Domestic taxes payable in the licensed territory shall be payable by Licensee.

  3 Exclusivity

  (a) Nothing in this agreement shall be construed to  prevent  Licensor from granting any other licenses for the use of the Name or from utilizing the Name in any manner whatsoever, except that Licensor agrees that except as provided herein it will grant no other licenses for  the  territory  to which this license extends effective during the term  of  this  agreement,for the use of the Name in  connection  with  the  sale  of  the  articles described in paragraph 1.

  (b) It is agreed that if Licensor should convey an offer  to  Licensee to purchase any of the articles listed in paragraph 1, in connection  with a premium, giveaway or other promotional arrangement, Licensee shall  have _______ days within which to accept or reject such an offer. In the  event that Licensee fails to accept such  offer  within  the  specified  _______ days, Licensor shall have the right to enter into  the  proposed  premium,giveaway  or  promotional  arrangement  using  the  services  of   another manufacturer, provided, however, that in such event Licensee shall have  a three (3) day  period  within  which  to  meet  the  best  offer  of  such manufacturer for the production of such articles  if  the  price  of  such manufacturer is higher than the price offered  to  Licensee  by  Licensor. Licensee agrees that it shall not, without the prior  written  consent  of Licensor, (i) offer the articles as a premium in connection with any other product or service, or (ii) sell or distribute the articles in  connection with another product or service which product or service is a premium.

  4 Good Will

  Licensee recognizes the great value of the good will  associated  with the Name, and acknowledges that the Name and all rights therein  and  good will pertaining thereto belong exclusively to Licensor, and that the  Name has a secondary meaning in the mind of the public.

  5 Licensor’s Title and Protection of Licensor’s Rights

  (a) Licensee  agrees  that  it  will  not  during  the  term  of  this agreement, or thereafter, attack the title or any rights  of  Licensor  in and to the Name or attack the validity of this  license.  Licensor  hereby indemnifies Licensee and undertakes to hold it harmless against any claims or suits arising solely out  of  the  use  by  Licensee  of  the  Name  as authorized in this agreement, provided that  prompt  notice  is  given  to Licensor of any such claim or suit and provided,  further,  that  Licensor shall have the option to undertake and conduct the defense of any suit  so brought and no settlement of any such claim or suit is  made  without  the prior written consent of Licensor.

  (b) Licensee agrees to assist Licensor to the extent necessary in  the procurement of any protection or to protect any of  Licensor’s  rights  to the Name, and Licensor, if it so desires may  commence  or  prosecute  any claims or suits in its own name  or  in  the  name  of  licensee  or  join Licensee as a party thereto. Licensee shall notify Licensor in writing  of any infringements or imitations by others in the Name on articles the same as or similar to those  covered  by  this  agreement  which  may  come  to Licensee’s attention, and Licensor shall have the sole right to  determine whether or  not  any  action  shall  be  taken  on  account  of  any  such infringements or imitations. Licensee shall not institute any suit or take any action on account of any  such  infringements  or  imitations  without first obtaining the written consent of the Licensor so to do.

  6 Indemnification by Licensee and Product Liability  Insurance

  Licensee hereby indemnifies Licensor and undertakes to defend Licensee and/or Licensor against and hold Licensor harmless from any claims, suits,loss and damage arising out of  any  allegedly  unauthorized  use  of  any trademark,  patent,  process,  idea,  method  or  device  by  Licensee  in connection with the articles  covered  by  this  agreement  or  any  other alleged action by Licensee and also  from  any  claims,  suits,  loss  and damage arising out of alleged defects in  the  articles.  Licensee  agrees that it will obtain, at its own expense, product liability insurance  from a recognized insurance company which  has  qualified  to  do  business  in ____________, providing adequate protection (at least  in  the  amount  of _______) for Licensor (as well for Licensee) against  any  claims,  suits,loss or damage arising out of any alleged  defects  in  the  articles.  As proof of such insurance, a fully  paid  certificate  of  insurance  naming Licensor as an insured party will be submitted to Licensor by Licensee for Licensor’s prior approval before any article is distributed or  sold,  and at the latest within ______ days after the date first written  above;  any proposed change  in  certificates  of  insurance  shall  be  submitted  to Licensor for its prior approval. Licensor shall be entitled to a  copy  of the then prevailing certificate of insurance,  which  shall  be  furnished Licensor by Licensee. As Used in the first 2 sentences of  this  paragraph 6, “Licensor” shall also include  the  officers,  directors,  agents,  and employees of the Licensor, or any of its subsidiaries or  affiliates,  any person(s) the use of whose name may be  licensed  hereunder,  the  package producer and the cast of the radio and/or television  program  whose  name may be licensed hereunder,  the  stations  over  which  the  programs  are transmitted, any sponsor of said programs and its advertising agency,  and their respective officers, directors, agents and employees.

  7 Quality of Merchandise

  Licensee agrees that the articles covered by this agreement  shall  be of high standard and of such  style,  appearance  and  quality  as  to  be adequate and suited to their exploitation to the best advantage and to the protection and enhancement of  the  Name  and  the  good  will  pertaining thereto, that such articles will be manufactured, sold and distributed  in accordance with all applicable Federal, State and local laws, and that the same shall not reflect adversely upon the good name of Licensor or any  of its programs or the Name. To this end Licensee shall,  before  selling  or distributing any of the articles, furnish to Licensor free  of  cost,  for its written approval, a reasonable number of samples of each article,  its cartons, containers and packing and wrapping  material.  The  quality  and style of such articles as well as of any carton, container or  packing  or wrapping material shall be subject to the approval of Licensor.  Any  item submitted to Licensor shall not be deemed approved unless  and  until  the same shall be approved by Licensor in writing.  After  samples  have  been approved pursuant to this paragraph, Licensee shall not  depart  therefrom in any material respect without  Licensor’s  prior  written  consent,  and Licensor shall not withdraw its approval of the approved samples except on _______ days’ prior written notice to Licensee. From time  to  time  after Licensee has commenced selling the articles and  upon  Licensor’s  written request, Licensee shall furnish without cost to  Licensor  not  more  than additional random samples of each article being manufactured and  sold  by Licensee hereunder, together with any cartons, containers and packing  and wrapping material used in connection therewith.

  8 Labeling

  (a) Licensee agrees that it will cause to appear  on  or  within  each article sold by it under this license and on or  within  all  advertising,promotional or display material bearing the Name the notice  “Copyright(c) ____________ (year)” in connection with Name properties  (e)  and  (f)  in Rider, paragraph 1, and any other notice desired by  Licensor  and,  where such article or advertising,  promotional  or  display  material  bears  a trademark or service mark, appropriate statutory notice of registration or application for registration thereof. In the event  that  any  article  is marketed in a  carton,  container  and/or  packing  or  wrapping  material bearing the Name, such notice shall also  appear  upon  the  said  carton,container and/or packing or wrapping material. Each and every tag,  label,imprint or other device containing any such notice  and  all  advertising,promotional or display material bearing the Name  shall  be  submitted  by Licensor for its written approval prior to use by  Licensee.  Approval  by Licensor shall not constitute waiver of Licensor’s  rights  or  Licensee’s duties under any provision of this agreement.

  (b) Licensee agrees to cooperate fully and in good faith with Licensor for the purpose of securing and preserving Licensor’s (or any  grantor  of Licensor’s) rights in and to the Name. In the  event  there  has  been  no previous registration of the Name  and/or  articles  and/or  any  material relating thereto, Licensee  shall,  at  Licensor’s  request  and  expense,register  such  a  copyright,  trademark  and/or  service  mark   in   the appropriate class in the name of Licensor or, if Licensor so requests,  in Licensee’s own name. However, it is agreed that nothing contained in  this agreement shall be construed as an assignment or grant to the Licensee  of any right, title or interest in or to the Name, it being  understood  that all rights relating thereto are  reserved  by  Licensor,  except  for  the license hereunder to Licensee of the right to use  and  utilize  the  Name only as specifically and expressly provided in  this  agreement.  Licensee hereby agrees that at the termination  or  expiration  of  this  agreement Licensee will be deemed to have  assigned,  transferred  and  conveyed  to Licensor any rights, equities, good will, titles or other rights in and to the Name which may have been obtained by Licensee or which may have vested in Licensee in  pursuance  of  any  endeavors  covered  hereby,  and  that Licensee will execute any instruments requested by Licensor to  accomplish or confirm the foregoing. Any  such  assignment,  transfer  or  conveyance shall be  without  other  consideration  than  the  mutual  covenants  and considerations of this agreement.

  (c) Licensee hereby agrees that its every use of such name shall inure to the benefit of Licensor and that Licensee shall not at any time acquire any rights in such name by virtue of any use it may make of such name.

  9 Promotional Material

  (a) In all cases where Licensee  desires  artwork  involving  articles which are the subject of this license to be executed,  the  cost  of  such artwork and the  time  for  the  production  thereof  shall  be  borne  by Licensee. All artwork and designs involving the Name, or any  reproduction thereof, shall, notwithstanding their invention or use by Licensee, be and remain the property of Licensor and Licensor shall be entitled to use  the same and to license the use of the same by others.

  (b) Licensor shall  have  the  right,  but  shall  not  be  under  any obligation, to use the Name and/or the name of Licensee so as to give  the Name, Licensee, Licensor and/or Licensor’s  programs  full  and  favorable prominence and publicity. Licensor  shall  not  be  under  any  obligation whatsoever to continue broadcasting any radio or television program or use the Name or any person, character, symbol, design or  likeness  or  visual representation thereof in any radio or television program.

  (c) Licensee agrees not to offer for sale or  advertise  or  publicize any of the articles licensed hereunder on radio or television without  the prior written approval of Licensor, which approval Licensor may  grant  or withhold in its unfettered discretion.

  10 Distribution

  (a) Licensee agrees that during the  term  of  this  license  it  will diligently and continuously manufacture, distribute and sell the  articles covered by this agreement and that it  will  make  and  maintain  adequate arrangement for the distribution of the articles.

  (b) Licensee shall not, without prior  written  consent  of  Licensor,sell or distribute such articles to  jobbers,  wholesalers,  distributors,retail stores or merchants whose sales or distribution are or will be made for publicity or promotional tie-in purposes, combination sales, premiums,giveaways, or similar methods of merchandising, or whose business  methods are questionable.

  (c) Licensee agrees  to  sell  to  Licensor  such  quantities  of  the articles at as low a rate and on as good terms as Licensee  sells  similar quantities of the articles to the general trade.

  11 Records

  Licensee agrees to keep accurate books of account and records covering all transactions relating to the license hereby granted, and Licensor  and its duly authorized representatives shall have the right at all reasonable hours of the day to an examination of said books of  account  and  records and of all other documents and materials in the possession  or  under  the control of Licensee with respect to the subject matter and terms  of  this agreement, and shall have free and full access thereto for  said  purposes and for the purpose of making extracts therefrom. Upon demand of Licensor,Licensee shall at its own expense furnish to Licensor a detailed statement by  an  independent  certified  public  accountant  showing  the   number,description, gross sales price, itemized deductions from gross sales price and net sale price of the articles covered by this  agreement  distributed and/or sold by Licensee to the date of Licensor’s  demand.  All  books  of account and records shall be kept available for at least __________  years after the termination of this license.

  12 Bankruptcy, Violation, etc.

  (a) If Licensee shall not have commenced in good faith to  manufacture and distribute in  substantial  quantities  all  the  articles  listed  in paragraph 1 within ________ months after the date of this agreement or  if at any time thereafter in any calendar month Licensee fails to sell any of the articles (or any class or  category  of  the  articles),  Licensor  in addition to all other remedies available to  it  hereunder  may  terminate this license with respect to any articles or  class  or  category  thereof which have not been manufactured and distributed  during  such  month,  by giving written notice of termination to Licensee.  Such  notice  shall  be effective when mailed by Licensor.

  (b) If Licensee files a petition in bankruptcy  or  is  adjudicated  a bankrupt or if a petition in bankruptcy is filed against Licensee or if it becomes insolvent, or makes an assignment for the benefit of its creditors or  an  arrangement  pursuant  to  any  bankruptcy  law,  or  if  Licensee discontinues its business or if a receiver is  appointed  for  it  or  its business,  the  license  hereby  granted  shall  automatically   terminate forthwith without any notice whatsoever being necessary. In the event this license  is  so  terminated,  Licensee,  its  receivers,  representatives,trustees, agents, administrator, successors and/or assigns shall  have  no right to sell, exploit or in any way deal with or in any articles  covered by this agreement or any carton, container, packing or wrapping  material,advertising, promotional or display material  pertaining  thereto,  except with and under  the  special  consent  and  instructions  of  Licensor  in writing, which they shall be obligated to follow.

  (c) If Licensee shall violate any of its other obligations  under  the terms of this agreement, Licensor shall have the right  to  terminate  the license hereby granted upon ______  days’notice  in  writing,  and  such notice  of  termination  shall  become  effective  unless  Licensee  shall completely remedy the violation within the ______ day period  and  satisfy Licensor that such violation has been remedied.

  (d) Termination of the license under the provisions  of  paragraph  12 shall be without prejudice to any rights which Licensor may otherwise have against Licensee. Upon the termination of  this  license,  notwithstanding anything to the contrary herein, all royalties on sales  theretofore  made shall become immediately due and payable and no minimum royalties shall be repayable or avoidable.

  13 Sponsorship by Competitive Product

  In the event that any of the articles listed in paragraph 1  conflicts with any product of a present or future sponsor of a program on which  the Name appears or is used, or with any product of a subsidiary or  affiliate of such sponsor, then Licensor shall have  the  right  to  terminate  this agreement as to such article or articles by  written  notice  to  Licensee effective not less than _______ days after the date such notice is  given. In the event of such termination, Licensee shall have ________ days  after the effective date of such termination to dispose of all of such  articles on hand or in process of manufacture prior to such notice,  in  accordance with  the  provisions  of  paragraph  15.  However,  in  the  event   such termination is effective as to all the articles subject to this  agreement and the advance guarantee for the then current year  has  not  been  fully accounted for by actual royalties by  the  end  of  the  _______  disposal period, Licensor shall refund  to  Licensee  the  difference  between  the advance guarantee which has been paid  for  such  contract  year  and  the actual royalties. The refund provision contained in the preceding sentence pertains only to termination occurring pursuant to this paragraph 13,  and shall not  affect  the  applicability  of  any  other  paragraph  to  such termination except as expressly contradicted herein.

  14 Final Statement Upon Termination or Expiration

  ______ days before the expiration of this license and, in the event of its termination, ______ days after receipt of notice of termination or the happening of the event which terminates this agreement where no notice  is required, a statement showing  the  number  and  description  of  articles covered by this agreement on hand or in  process  shall  be  furnished  by Licensee to Licensor. Licensor shall have the right  to  take  a  physical inventory to ascertain or verify such inventory and statement, and refusal by Licensee to submit to such physical inventory by Licensor shall forfeit Licensee’s right to dispose of  such  inventory,  Licensor  retaining  all other legal and equitable rights Licensor may have in the circumstances.

  15 Disposal of Stock Upon Termination or Expiration

  After termination of the license under the provisions of paragraph 12,Licensee, except as otherwise provided in this agreement, may  dispose  of articles covered by this agreement which are on hand or in process at  the time notice of termination is received for a period of ________ days after notice of termination, provided advances and  royalties  with  respect  to that period are paid and statements  are  furnished  for  that  period  in accordance with paragraph 2.  Notwithstanding  anything  to  the  contrary herein, Licensee shall not manufacture, sell or dispose  of  any  articles covered by this license after its expiration or its termination  based  on the failure of Licensee to affix notice of copyright, trademark or service mark  registration  or  any  other  notice  to  the   articles,   cartons,containers, or packing or wrapping material or advertising, promotional or display material, or because of the departure by Licensee from the quality and style approved by Licensor pursuant to paragraph 7.

  16 Effect of Termination or Expiration

  Upon and after the expiration or  termination  of  this  license,  all rights granted to Licensee hereunder shall forthwith revert  to  Licensor,who shall be free to license others to use the Name in connection with the manufacture, sale and distribution of  the  articles  covered  hereby  and Licensee will refrain  from  further  use  of  the  Name  or  any  further reference to it, direct or indirect, or anything deemed by Licensor to  be similar  to  the  Name  in  connection  with  the  manufacture,  sale   or distribution of Licensee’s products, except as provided in paragraph 15.

  17 Licensor’s Remedies

  (a) Licensee  acknowledges  that  its  failure  (except  as  otherwise provided herein) to commence in good faith to manufacture  and  distribute in substantial quantities any one  or  more  of  the  articles  listed  in paragraph 1 within ______ months after the date of this agreement  and  to continue  during  the  term  hereof   to   diligently   and   continuously manufacture, distribute and sell the articles covered by this agreement or any class  or  category  thereof  will  result  in  immediate  damages  to Licensor.

  (b) Licensee  acknowledges  that  its  failure  (except  as  otherwise provided herein) to cease the manufacture, sale  or  distribution  of  the articles covered by this agreement or any class or category thereof at the termination or expiration of this agreement will result in  immediate  and irremediable damage to Licensor  and  to  the  rights  of  any  subsequent licensee. Licensee acknowledges and  admits  that  there  is  no  adequate remedy at law for such failure to cease manufacture, sale or distribution,and Licensee agrees that in the event of such failure  Licensor  shall  be entitled to equitable relief by way of temporary and permanent injunctions and such other further relief as any court with jurisdiction may deem just and proper.

  (c) Resort to any remedies referred to herein shall not  be  construed as a waiver of any other rights and remedies to which Licensor is entitled under this agreement or otherwise.

  18 Excuse For Nonperformance

  Licensee shall be released from its  obligations  hereunder  and  this license shall terminate in the  event  that  governmental  regulations  or other causes arising out of a state of national emergency or war or causes beyond the control of the parties render performance  impossible  and  one party so informs the other in writing of such causes and its desire to  be so released. In such events, all royalties on sales theretofore made shall become immediately due and payable  and  no  minimum  royalties  shall  be repayable.

  19 Notices

  All notices and statements to be given, and all payments  to  be  made hereunder, shall be given or made  at  the  respective  addresses  of  the parties as set forth above unless notification of a change of  address  is given in writing, and the date of mailing shall be  deemed  the  date  the notice or statement is given.

  20 No Joint Venture

  Nothing herein contained shall be construed to place  the  parties  in the relationship of partners or joint venturers, and Licensee  shall  have no power to obligate or bind Licensor in any manner whatsoever.

  21 No Assignment or Sublicense by Licensee

  This agreement and all rights and duties  hereunder  are  personal  to Licensee and shall not,  without  the  written  consent  of  Licensor,  be assigned, mortgaged, sublicensed or otherwise encumbered by Licensee or by operation of law.

  Licensor may assign but shall furnish written notice of assignment.

  22 No Waiver, etc.

  None of the terms of this agreement can be waived or  modified  except by an express agreement in writing signed by both parties.  There  are  no representations, promises, warranties,  covenants  or  undertakings  other than those contained  in  this  agreement,  which  represents  the  entire understanding of the parties.  The  failure  of  either  party  hereto  to enforce, or the delay by either party in  enforcing,  any  of  its  rights under this agreement  shall  not  be  deemed  a  continuing  waiver  or  a modification thereof and either party may, within  the  time  provided  by applicable law, commence appropriate legal proceeding to  enforce  any  or all of such  rights.  No  person,  firm,  group  or  corporation  (whether included in the Name or otherwise) other than Licensee and Licensor  shall be deemed to have acquired any rights by reason of anything  contained  in this agreement, except as provided in paragraphs 6 and 21.

  In witness whereof, the parties have caused this instrument to be duly executed as of the day and year first above written.

  ___________________, Licensor

  By________________________

  Title:

  ___________________, Licensee

  By________________________

  Title: