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EXTENSION TO DISTRIBUTION AGREEMENT

Extension Agreement

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This Extension Agreement involves

MRS FIELDS FAMOUS BRANDS LLC | TCBY Systems, LLC

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Title: EXTENSION TO DISTRIBUTION AGREEMENT
Date: 3/21/2006

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Exhibit 10

Exhibit 10.68

 

EXTENSION TO DISTRIBUTION AGREEMENT

 

This Extension to Distribution Agreement (the “Extension Agreement”) is made and entered into effective as of this 2nd day of February, 2006, by and between the parties to that certain Food and Packaging Distribution Agreement dated November 14, 2002 (the “Distribution Agreement”) between Blue Line Distributing, a division of Little Caesar Enterprises, Inc. (“BLD”) and TCBY Systems, LLC (“TCBY”). BLD and TCBY are sometimes collectively referred to in this Extension Agreement as the “parties.”  Capitalized terms used but not otherwise defined herein shall have the same meaning given to them in the Distribution Agreement.

 

A.                                   On August 5, 2005, TCBY received a notice from BLD (the “Termination Notice”), exercising BLD’s option to terminate the Distribution Agreement, effective 180 days from the date of such notice (the “Termination Effective Date”).

 

B.                                     The parties thereafter entered into negotiations about the possibility of amending the Distribution Agreement and/or extending the Termination Effective Date, and the parties now wish to enter into this Extension Agreement to document their understanding.

 

NOW, THEREFORE, in consideration of the covenants set forth herein, the parties agree as follows:

 

1.                                       Extension of Termination Effective Date; Rescission of Price Increase.  Subject to each of the covenants and conditions set forth herein, BLD will continue to perform under the Distribution Agreement, notwithstanding the Termination Notice, until the earlier to occur of (a) 30 days following the date when TCBY notifies BLD in writing that it has obtained a new distributor, and (b) 30 days following the date, if any, when BLD notifies TCBY in writing that BLD reasonably determines that TCBY is no longer making best efforts and progress to obtain a new distributor (the “Final Termination Date”). The period from the date of this Extension Agreement to the Final Termination Date is referred to herein as the “Extension Period”. During the Extension Period, the Distribution Agreement will remain in full force and effect as modified by this Extension Agreement. BLD hereby rescinds its notice of price increase dated September 23, 2005.

 

2.                                       TCBY Payments to BLD; Guarantees.

 

(a)                                  TCBY Account Balance.  Upon full execution of this Extension Agreement, TCBY shall pay to BLD the amount of $98,983, in full payment of BLD’s bad debt balance.

 

(b)                                 Monthly Payment – Price Increase.  BLD shall receive a monthly amount of $100,000 (the “Monthly Payment”), payable as set forth below. For purposes of this provision, the effective date of this Agreement

 

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