EXHIBIT 10.64
MARKETING ALLOWANCE
AGREEMENT
THIS MARKETING ALLOWANCE
AGREEMENT (the
“Agreement”) is entered into effective as of December
24, 2004, by and between MRS. FIELDS FRANCHISING, LLC, a Delaware
limited liability corporation (“MFF”), and SHADEWELL
GROVE IP, LLC (“Shadewell”). MFF and Shadewell
sometimes are referred to in this Agreement individually, as a
“Party” and collectively, as the
“Parties.”
RECITALS
WHEREAS , MFF and Shadewell are
parties to several trademark license agreements including the
license agreement of January 3, 2000 to develop, manufacture and
sell shelf-stable cookies, the license agreement of February 21,
2001 to distribute and sell ready-to-eat pre-baked cookie product
through other distribution channels, the license agreement of March
31, 2003 to package, distribute, market and sell chocolate chips,
and other similar licensing agreement now being negotiated or
recently executed regarding shelf-stable brownies and toppings
(such license agreement, the “Brownie License”, and
collectively with the other license agreements set forth in this
paragraph, the “License Agreements”) that allow
Shadewell to develop, produce and sell various products under the
marks and trade names held by MFF or its affiliated entities
(“Licensed Marks”) in exchange for the payment of
royalties (these products are more precisely defined under each of
the License Agreements as “Royalty Bearing
Product(s)”);
WHEREAS , MFF desires to grant
Shadewell certain one-time marketing allowances to be credited
against royalty payments that would otherwise be made by Shadewell
to MFF, which allowances shall be given under the terms and
conditions set out herein (“Marketing Allowance”) to
assist Shadewell to have additional marketing funding to further
establish and promote the Royalty Bearing Products and MFF brand in
the market; and
WHEREAS , Shadewell is willing to
accept the Marketing Allowances to promote the Royalty Bearing
Products and the MFF brand, and is willing to agree to the terms
and conditions proposed by MFF to receive those Marketing
Allowances;
AGREEMENT
NOW, THEREFORE
, in consideration of the foregoing
recitals and the mutual promises and covenants set forth herein,
the Parties hereby agree as follows:
1.
General Provisions and Terms . All terms not otherwise
defined in the Agreement shall have the meanings given similar
terms in the License Agreements and Sections 15, 21 and 22 of the
Brownie License shall be incorporated herein.
2.
First Marketing Allowance . MFF hereby grants
Shadewell an initial Marketing Allowance for the 2006 fiscal year
of One Hundred Twenty-Five Thousand U.S. dollars ($125,000.00 USD)
to promote the Royalty Bearing Products and MFF
1
brand on the terms set forth herein. This
Marketing Allowance will be credited against the first royalty
monies due to MFF from Shadewell during the 2006 fiscal year,
beginning with the first quarter, which rebate will continue to be
granted until the time the full amount outlined herein is realized
by Shadewell. Shadewell hereby agrees to use the Marketing
Allowance in the manner and for the purposes as set out in Section
5 below.
3.
Second Marketing Allowance . MFF hereby grants
Shadewell an additional Marketing Allowance for the 2007 fiscal
year
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