NOTE: CERTAIN MATERIAL HAS BEEN
REDACTED FROM THIS DOCUMENT AND FILED SEPARATELY WITH THE SEC
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2.
THE LOCATIONS OF THESE REDACTIONS ARE INDICATED THROUGHOUT THE
DOCUMENT BY THE FOLLOWING MARKING: [***]
LICENSE
AGREEMENT
This
License Agreement (the “License Agreement”) is made
effective as of the 1 st
day of
January, 2009 (the “Effective Date”), by and among, on
the one hand, DreamWorks Animation LLC, a Delaware limited
liability company with offices at 1000 Flower Street, Glendale,
California 91201 (“DWA”), and, on the other hand, DW II
Management, Inc., a Delaware corporation with offices at 11400 W.
Olympic Blvd, Suite 550, Los Angeles, California 90064
(“Spielberg Entity”), and, solely with respect to
Paragraph 2(h) (Spielberg Exclusivity) and the applicable
provisions of Paragraph 11 (Miscellaneous), Steven Spielberg, an
individual with offices at 11400 W. Olympic Blvd, Suite 550, Los
Angeles, California 90064 (“Spielberg”), and is made
with reference to the following facts:
RECITALS
A. DWA
is engaged in the business of producing and distributing various
entertainment properties, including animated motion pictures,
animated television programs and other entertainment-related goods
and services, under and in connection with the trademark, service
mark and trade name DREAMWORKS and various other trademarks,
service marks and trade names containing the term
DREAMWORKS, including the trademark, service mark and
trade name DREAMWORKS SKG in both word mark and design mark form
(collectively the “DreamWorks Marks”). The
trademark, service mark and trade name DREAMWORKS SKG in both word
mark and design mark form as set forth in Schedule A are referred
to in this License Agreement as the “Licensed Marks”
(provided that “Licensed Marks” will also include the
word mark DREAMWORKS without the SKG component (the “Non-SKG
Mark”) but only for use in certain contexts as set forth in
Section 2(a)). As between the parties, DWA owns all
right, title and interest in and to the DreamWorks Marks worldwide,
together with all registrations of and applications to register the
DreamWorks Marks and the goodwill of the business pertaining
thereto.
B. Spielberg
Entity desires to sublicense Holding Company (as defined below) to
use the Licensed Marks in connection with the production and
distribution of certain non-animated motion pictures and related
goods and services. DWA is willing to grant to Spielberg
Entity the right to sublicense Holding Company to use the Licensed
Marks on the terms and conditions set forth herein, and Spielberg
Entity is willing to accept such a license.
C. DWA
acknowledges that Spielberg Entity desires to sublicense the rights
granted herein to use the Licensed Marks on the terms and
conditions set forth herein to DreamWorks II Holding Co., LLC and
its wholly-owned and controlled subsidiaries, which as of the
Effective Date consist of DreamWorks II Financial Services, Co.,
LLC, DreamWorks II Distribution Co., LLC, DreamWorks II Production
Co., LLC, and DreamWorks II Development Co., LLC, and may in the
future include additional wholly-owned and controlled subsidiaries
of DreamWorks II Holding Co., LLC provided that Spielberg Entity
provides notice to DWA of any such additional wholly-owned and
controlled subsidiaries (DreamWorks II Holding Co., LLC and all
such wholly-owned and controlled subsidiaries are referred to
collectively herein as “Holding Company”), and the
approved form for granting such sublicense is attached hereto as
Schedule D.
D. Spielberg
Entity is, and will remain throughout the term of this License
Agreement, wholly owned and controlled by Spielberg; DreamWorks II
Holding Co., LLC is, and will remain throughout the term of this
License Agreement, jointly owned and controlled by Reliance Big
Entertainment (US), Inc. (“Reliance Entity”) and DW II
Management, LLC (and, as of the Effective Date, DreamWorks II
Holding Co., LLC is owned fifty percent (50%) by Reliance Entity
and fifty percent (50%) by DW II Management, LLC); DW II
Management, LLC is, and will remain throughout the term of this
License Agreement, managed by and more than seventy-five percent
(75%) owned by DW II Management, LP; Spielberg Entity is, and will
remain throughout the term of this License Agreement, the sole
general partner of DW II Management, LP, and entities solely owned
and controlled by Spielberg are and will remain throughout the term
of this License Agreement the sole owners of DW II Management, LP;
and DreamWorks II Financial Services, Co., LLC, DreamWorks II
Distribution Co., LLC, DreamWorks II Production Co., LLC, and
DreamWorks II Development Co., LLC and any other entities included
in Holding Company (other than DreamWorks II Holding Co., LLC
itself) are, and will remain throughout the term of this License
Agreement, wholly-owned and controlled by DreamWorks II Holding
Co., LLC. Spielberg Entity, DW II Management, LP, DW II
Management, LLC, each entity included in Holding Company, and
Reliance Entity are referred to collectively hereinafter as
“Licensee-Related Entities.”
NOW,
THEREFORE, in consideration of the foregoing recitals (which are
hereby incorporated into this License Agreement) and the mutual
covenants and promises set forth below, and for other good and
valuable consideration (including the payment of $100 by Spielberg
Entity to DWA), DWA and Spielberg Entity hereby agree as
follows:
TERMS AND
CONDITIONS
The
following terms shall have the following meanings in this License
Agreement:
“Animated
Motion Picture” means any Motion Picture that is created
predominantly by one or more non-live-action production methods
(e.g., hand-drawn animation such as Prince of Egypt , CGI
such as Shrek , stop-motion such as Chicken Run
and/or motion capture such as Polar Express ) (each, an
“Animation Method”). However, a Motion
Picture that is created predominantly by one or more live-action
production methods, but in which digital Animation Method(s) are
used, in whole or in part, to create photorealistic characters that
interact with live-action characters in a live-action setting, will
not be deemed an Animated Motion Picture and will be deemed either
a Hybrid Motion Picture or a Live-Action Motion Picture as
applicable. (Photorealistic characters include both
“real world” characters modified by an Animation Method
(e.g., Babe the pig in Babe ) and characters that are
invented but which are depicted in a “real world”
manner by an Animation Method (e.g. Yoda in Star Wars
II: Attack of the Clones , Gollum in Lord of the
Rings , the dinosaurs in Jurassic Park , the robots in
I, Robot , and the toy soldiers in Small Soldiers
).
“Change of
Control” means, with respect to any entity, any
reorganization, merger, consolidation, or other transaction where
more than fifty percent (50%) of the entity’s voting
securities are owned by entities or persons different from the
entities or persons owning such voting securities prior to such
transaction; any sale of all or substantially all of the business
or assets of such entity; or the acquisition by any other entity or
person directly or indirectly of more than fifty percent (50%) of
the voting securities of the entity. However, the
Reliance Entity will not be deemed to have undergone a Change of
Control so long as Reliance-ADA Group Limited (the ultimate parent
of the Reliance Entity) continues, directly or indirectly, to (a)
be the single largest shareholder, (b) hold at least thirty three
and one third percent (33-1/3%) of the voting securities, and (c)
have the legal authority to elect or otherwise direct the
appointment of its management and a majority of its Board members,
in each case with respect to the Reliance Entity.
“Completed
Film” means a Licensee Live-Action Motion Picture or Licensee
Hybrid Motion Picture that was produced (i.e., pre-production has
commenced), acquired and/or released by Holding Company prior to
expiration or termination of this License Agreement pursuant to
Paragraph 3 below, or a Licensee Live-Action Motion Picture or
Licensee Hybrid Motion Picture that Holding Company executed a
binding agreement to acquire or co-produce prior to expiration or
termination of this License Agreement pursuant to Paragraph 3
below.
“Disney
Mark” means any trademark, service mark or trade name of the
Walt Disney Company or any of its affiliates or subsidiaries that
includes any of the following: (a) any of the terms
“Disney” or “Walt Disney”; (b) any acronym
that references any of the terms “Disney” or
“Walt Disney”; or (c) any title, logo, scene, character
or other excerpt from any Motion Picture that is exhibited or
distributed under any trademark, service mark or trade name that
includes the terms “Disney” or “Walt
Disney” or any acronym that references any of the terms
“Disney” or “Walt Disney.” For
avoidance of doubt, TOUCHSTONE is not a Disney Mark.
“Domestic
Territory” means the territorial United States and its
possessions, territories and commonwealths, including, without
limitation, the U.S. Virgin Islands, Puerto Rico, Guam, and the
U.S. Trust Territories of the Pacific Islands, including, without
limitation, the Carolina Islands, the Marshall Islands and the
Mariana Islands, Saipan and American Samoa; the Dominican Republic,
the British Virgin Islands, Nassau, Bahamas, Bermuda, Saba Island,
St. Eustatius Island, St. Kitts Island, St. Maarten Island, and
Freeport; the Dominion of Canada and its possessions, territories
and commonwealths; and all Army, Navy, Air Force, Red Cross and
other national or governmental installations, diplomatic posts,
camps, bases, and reservations of the above-mentioned countries, as
well as oil rigs (including Aramco sites) and maritime facilities
(and other commercial and/or industrial installations of the
above-mentioned countries and territories), wherever any of the
aforementioned facilities or installations are located, to the
extent that sales are made and/or servicing thereof is performed
within the geographical areas set forth above, and all airlines and
ships flying the flag of, or having the registry of, or whose
principal office is located in the United States, Canada or
Bermuda, and other possessions, territories and commonwealths
within the Domestic Territory.
“DWA Event
Picture” means any Animated Motion Picture or Hybrid Motion
Picture produced, acquired, and/or released by DWA or any of its
affiliates or subsidiaries (alone or with others) that (i) is rated
“G,” “PG” or “PG-13” (or a
materially equivalent rating in the event of any changes to the
ratings system); and (ii) is scheduled to be released for
Theatrical Exhibition on not less than two thousand (2,000) screens
in the Domestic Territory (irrespective of the anticipated
theatrical release pattern in the International
Territory).
“DWA
Registered Territory” means each jurisdiction in which DWA
possesses DWA Registered Trademark Rights as of the Effective Date
of this License Agreement, and any additional jurisdiction in which
DWA obtains DWA Registered DWA Trademark Rights in the manner set
forth in Paragraph 2(g).
“DWA
Registered Trademark Rights” means those trademark rights
with respect to the Licensed Marks that DWA has secured with issued
and subsisting registrations in each jurisdiction where DWA has
filed applications to register (or otherwise obtains registrations
of) such Licensed Marks.
“Exhibit”
means transmit, broadcast, display, exhibit or
perform. “Exhibiting” and
“Exhibition” shall have correlative
meanings.
“Greenlight
Authority” means the personal authority required to cause
Holding Company to undertake any of the following activities: (a)
with respect to any Motion Picture, the financing and production of
such Motion Picture, or (b) only with respect to Motion Pictures
initially produced for Theatrical Exhibition, the acquisition of
such Motion Picture, or (c) only with respect to Television Motion
Pictures, the procurement of financing of such Television Motion
Picture from a third party. For avoidance of doubt, the
term “Greenlight Authority” as used in this License
Agreement refers to the authority without which Holding Company
cannot undertake the above activities, but does not include the
authority to direct the activities of any other party whose
approval may also be required to cause Holding Company to undertake
such activities (i.e., Greenlight Authority is necessary, but not
necessarily sufficient, to cause Holding Company to undertake such
activities).
“Hybrid
Motion Picture” means a Motion Picture that is predominately
live-action, but in which at least two of the four characters with
the most screen time, or a majority of the characters with speaking
roles, are created (non-photorealistically) by an Animation Method
( Who Framed Roger Rabbit , Looney Tunes – Back in
Action and Space Jam are examples of Motion Pictures
that meet this condition).
“International
Territory” means each country around the world that is not
included in the Domestic Territory.
“Licensed
Domain Names” means the domain name
dreamworksstudios.com and such other domain names as may be
agreed to in writing by DWA from time-to-time pursuant to Paragraph
8(d).
“Licensed
Goods” means those goods set forth on Schedule B attached
hereto, as Schedule B may be amended from time to time with the
mutual agreement of the parties.
“Licensed
Marks” has the meaning set forth in the recitals.
“Licensed
Services” means those services set forth in Schedule C
attached hereto, as Schedule C may be amended from time to time
with the mutual agreement of the parties.
“Licensee
Hybrid Motion Picture” means a Hybrid Motion Picture that
meets all three of the following conditions: (i) Spielberg
personally has exercised Greenlight Authority on an individual and
specific basis with respect to such Hybrid Motion Picture, (ii)
such Hybrid Motion Picture is produced, acquired or financed by
Holding Company either alone or jointly with a third party, and
(iii) such Hybrid Motion Picture is not released or marketed as a
Walt Disney picture or using any Disney Mark (other than to the
extent expressly permitted under Paragraph 6(f)).
“Licensee
Live-Action Motion Picture” means a Live-Action Motion
Picture that meets all three of the following conditions: (i)
Spielberg personally has exercised Greenlight Authority on an
individual and specific basis with respect to such Live-Action
Motion Picture, (ii) such Live-Action Motion Picture is produced,
acquired or financed by Holding Company either alone or jointly
with a third party, and (iii) such Live-Action Motion Picture is
not released or marketed as a Walt Disney picture or using any
Disney Mark (other than to the extent expressly permitted under
Paragraph 6(f)).
“Live-Action
Motion Picture” means a Motion Picture that is not an
Animated Motion Picture or a Hybrid Motion Picture.
“Live Stage
Performance” means the presentation of literary material
(e.g., a screenplay, play or other written material) upon the
spoken stage with live performers appearing and speaking in the
immediate presence of the viewing audience; provided, however, that
the presentation of literary material upon the spoken stage with
live performers appearing and speaking, whether or not in the
immediate presence of a viewing audience, for the primary purpose
of photographing and recording such presentation for use in or in
connection with a Motion Picture or for the promotion or publicity
of a Motion Picture shall not be deemed a Live Stage
Performance.
“Major
Release” means any theatrical Motion Picture rated
“G,” “PG,” “PG-13” or
“R” (or a materially equivalent rating in the event of
any changes to the ratings system) that is scheduled to be released
for Theatrical Exhibition on not less than two thousand (2,000)
screens in the Domestic Territory (irrespective of the anticipated
theatrical release pattern in the International
Territory).
“Motion
Picture” means any audiovisual product of every kind and
character whatsoever, whether produced by means of any
photographic, electrical, electronic, mechanical or other process
or device now known or hereafter devised, in which pictures,
images, and visual and aural representations are recorded or
otherwise preserved for Exhibition by any means or media now known
or hereafter devised in such manner as to appear to be in motion or
sequence, including computer-generated pictures and graphics;
provided, however, that Video Games will not be deemed to be Motion
Pictures.
“Permitted
Dubbed Version(s)” means any Live-Action Motion Picture(s)
which has been dubbed into Hindi, Bengali, Telugu, Marathi, Tamil,
Urdu, Gujarati, Kannada, Malayalam, Oriya, Punjabi, Assamese, and
other languages that are consented to by DWA in its sole
discretion, and which does not have a soundtrack in any language
other than any of such languages.
“Release
Date” means, with respect to any Motion Picture, the date (if
any) on which such Motion Picture is widely released for Theatrical
Exhibition.
“Reliance
Expatriate Territory” means Africa or any political
subdivision thereof, the Middle East or any political subdivision
thereof, Indonesia, Malaysia, Singapore, the United States, Canada,
and the United Kingdom.
“Similar
Theatrical Motion Picture” means any Motion Picture released
for Theatrical Exhibition that is rated “PG” or a less
restrictive rating (or a materially equivalent rating in the event
of any changes to the ratings system).
“Television
Motion Picture” means any Motion Picture, including
television series, produced or distributed for initial Exhibition
on television, including broadcast, cable, Internet, satellite and
all other forms of television Exhibition.
“Term”
means the term of this License Agreement as set forth in Paragraph
3(a).
“Theatrical
Exhibition” means, with respect to any Motion Picture, the
Exhibition of such Motion Picture in commercial motion picture
theatres or other venues where members of the general public view
such Motion Picture for an admission fee.
“Video
Game” means any and all (a) interactive software games and
other software-based products for all platforms, including, without
limitation, video game consoles (e.g., the Microsoft Xbox 360, the
Nintendo Wii, and the Sony Playstation 3), handheld gaming
platforms (e.g., the Nintendo DS and the Sony PSP), online
platforms (e.g., massively multiplayer online games, casual games,
streaming games, and downloaded games), wireless platforms,
personal computers, and all successor platforms of any of the
foregoing; (b) video game prequels, sequels, expansion packs,
premium modules, add-ons, episodic content, mission packs,
spin-offs, conversions, and ports related to any such interactive
software games; and (c) related documentation in print or
electronic form, including, without limitation, strategy books,
guides and hint books.
“Weekend”
means the period Wednesday through Sunday, inclusive.
2.
Grant of Rights; Amendment; Etc .
(a) DWA
hereby grants to Spielberg Entity, subject to and conditioned upon
the terms and conditions set forth herein, and Spielberg Entity
hereby accepts, a non-assignable (except as set forth in Paragraph
11(c)), royalty-free right and license during the Term in the DWA
Registered Territory or, subject to the fifth sentence of this
Paragraph 2(a), outside the DWA Registered Territory: (i) to use
the Licensed Marks (either alone or with the words
“Studios,” “Studio,”
“Pictures,” “Films,” or
“Television”) as part of Spielberg Entity’s and
its wholly-owned and controlled subsidiaries’ corporate names
and trade names, including, without limitation, use of the trade
names (but not including the Non-SKG Mark) on stationery, business
documents, and business cards; (ii) to use Licensed Marks (but not
including the Non-SKG Mark, except as expressly set forth in the
immediately following sentence) on and in connection with Licensed
Goods and Licensed Services; (iii) to use the Licensed Domain Names
in connection with websites dedicated exclusively to Licensed Goods
and/or Licensed Services; and (iv) to use the Licensed Marks (but
not including the Non-SKG Mark) in the other manners expressly set
forth herein (provided that Spielberg Entity shall not and shall
have no right to exercise the licenses granted in the preceding
subsections (ii), (iii) and (iv) itself, and shall only have the
right to grant Holding Company a Sublicense of such rights as set
forth in Paragraph 2(f)). The license granted in the
preceding sentence includes the right to use the Non-SKG Mark in
presentation credits, one-sheet billing blocks, and press releases
for Licensee Live-Action Motion Pictures and Licensee Hybrid Motion
Pictures, and in other contexts as may be approved by DWA in
writing from time to time, and in other contexts in which the
former DreamWorks Studios generally used the Non-SKG Mark in the
ordinary course of business prior to the Effective
Date. For avoidance of doubt, and notwithstanding
anything to the contrary herein, (i) any use by Spielberg Entity or
any Sublicensee of the word “DreamWorks” as part of a
logo or design mark must be accompanied with (and such logo or
design mark must incorporate) “SKG” as shown in the
registrations listed on Schedule A, and (ii) neither Spielberg
Entity nor any Sublicensee shall have the right to use the Non-SKG
Mark in any context(s) in which the former DreamWorks Studios
generally used a trademark, service mark or trade name
incorporating both “DreamWorks” and “SKG”
in the ordinary course of business prior to the Effective
Date. In addition, as part of the Holding Company
Sublicense granted pursuant to Paragraph 2(f), Spielberg Entity may
grant Holding Company a license to use the Licensed Marks (either
alone or with the words “Studios,”
“Studio,” “Pictures,” “Films,”
or “Television”) as part of Holding Company’s
corporate names and trade names, including, without limitation, use
of the trade names (but not including the Non-SKG Mark) on
stationery, business documents, and business cards. The
use of the Licensed Marks in connection with words other than
“Studios,” “Studio,”
“Pictures,” “Films,” or
“Television” by Spielberg Entity or Holding Company
shall require the prior written consent of DWA. The
right and license granted to Spielberg Entity hereunder shall be
exclusive only as to the use of the Licensed Marks on or in
connection with (1) Licensed Goods which are based on and feature
as the primary element of ornamentation and/or design (A) scenes
and/or characters from Licensee Live-Action Motion Pictures or (B)
the title or logo of a Licensee Live-Action Motion Picture, and (2)
the Licensed Services as applicable to Licensee Live-Action Motion
Pictures. The right and license granted to Spielberg
Entity hereunder shall be non-exclusive in all other respects,
including as to all other Licensed Goods and Licensed
Services. As set forth above, the license granted to
Spielberg Entity hereunder includes the right to use and sublicense
Holding Company to use the Licensed Marks outside the DWA
Registered Territory; provided, however, that notwithstanding
anything to the contrary in this License Agreement or otherwise,
DWA’s obligations hereunder with respect to the Licensed
Marks, including DWA’s obligations with respect to
maintenance and enforcement of the Licensed Marks and DWA’s
indemnification obligations, shall apply only to use in the
DWA
Registered
Territory within the DWA Registered Trademark Rights, and any other
use or sublicensing of the Licensed Marks by Spielberg Entity,
including any use or sublicensing outside the DWA Registered
Territory, shall be at Spielberg Entity’s sole
risk. For avoidance of doubt, Spielberg Entity may also
permit (directly or through Holding Company) Reliance Entity and
Disney (as defined in Section 2(f)) to display the Licensed Marks
to reference Holding Company in connection with accurate
descriptions of Holding Company’s relationship with Reliance
Entity and/or Disney (as applicable) in Reliance Entity’s and
Disney’s corporate documentation and corporate publicity
including, without limitation, Reliance Entity’s and
Disney’s contracts, annual reports, and communications to
shareholders and the general business community, and on the
sections of Reliance Entity’s and Disney’s general
corporate website(s) devoted to partner/alliance relationships;
provided that, (x) for avoidance of doubt, Reliance Entity shall
have no right to use any Licensed Mark as a trademark or service
mark, or as a trade name other than in reference to Holding
Company, and Disney shall have only those rights with respect to
the Licensed Marks expressly granted under the Disney Distribution
Agreement, and (y) Spielberg Entity shall ensure (and shall require
Holding Company to ensure) that all display of Licensed Marks by
Reliance Entity and/or Disney shall be in the same manner
(including with respect to size, prominence and placement) as that
used for Reliance Entity’s and Disney’s display of
other partner trade names and logos.
(b) Notwithstanding
Spielberg Entity’s exclusivity as set forth above, DWA shall
retain the right to use the Licensed Marks in connection with (i)
Live-Action Motion Pictures intended for family audiences; (ii)
live-action online/digital family content; (iii) all services
related to the production, distribution or other exploitation of
Live-Action Motion Pictures intended for family audiences
and
live-action online/digital family content; and (iv) all other goods
and services based on, incorporating or otherwise related to
Live-Action Motion Pictures intended for family audiences
and
live-action online/digital family content; provided, however, that
DWA shall not use a trademark that combines the word
“DreamWorks” with the words “Studios,”
“Studio,” “Pictures,” “Films,”
or “Television” unless DWA includes
“Animation” or another word in between
“DreamWorks” and any
of “Studios,” “Studio,”
“Pictures,” “Films,” or
“Television” (e.g., DWA may use “DreamWorks
Animation Television” or “DreamWorks Family
Television” but not “DreamWorks
Television”). DWA shall retain the right to
license others to use the Licensed Marks in connection with its
distribution agreements (e.g., its Paramount distribution
agreement), subdistribution agreements, and promotion agreements,
and all services related to the production, distribution or other
exploitation of DWA’s Live-Action Motion Pictures intended
for family audiences and live-action online/digital family content
and all other goods and services based on, incorporating or
otherwise related to Live-Action Motion Pictures intended for
family audiences and live-action online/digital family content, but
DWA will not sublicense any third party to use any Licensed Marks
in connection with the production and distribution of
such third party’s Live-Action Motion Picture intended for
family audiences. DWA shall consult in good faith with
Spielberg Entity prior to using the Licensed Marks in connection
with a family-oriented Live-Action Motion Picture pursuant to this
Paragraph 2(b).
(c) Notwithstanding
anything to the contrary herein, Spielberg Entity acknowledges and
agrees that the rights granted to Spielberg Entity under this
License Agreement are subject to the following preexisting rights
of third parties (and that DWA shall not be in breach of any of its
representations, warranties or other obligations under this License
Agreement as a result of such preexisting rights): (i) UMG
Recordings, Inc. has been granted an exclusive license to use
“DreamWorks Records” as more fully set forth in the
License Agreement dated as of January 8, 2004, between DreamWorks
LLC and UMG Recordings, Inc., and (ii) Paramount Pictures
Corporation, as DreamWorks LLC’s successor-in-interest as a
result of Paramount Pictures Corporation’s purchase of
DreamWorks LLC, shall have the right to use
“DreamWorks” and/or the Licensed Marks as more fully
set forth in the License Agreement dated as of October 27, 2004,
between DreamWorks Animation LLC and DreamWorks LLC.
(d) Notwithstanding
anything in this License Agreement to the contrary, the right and
license granted to Spielberg Entity hereunder does not include the
right to (and Spielberg Entity shall not) use or sublicense any
third party to use the Licensed Marks in connection
with:
(i) any Video Game for any online platform (or any online
functionality included in any other platform) that (A) permits ten
(10) or more users (in the aggregate including all rooms, worlds
and areas associated with such Video Game) in different physical
locations to interact in real time using animated avatars in a
virtual world, or (B) includes features of a persistent virtual
world (i.e., a virtual world that continues to change and develop
even while some users are not playing, or where user-initiated
changes to the virtual world or to a user’s avatar persist
beyond one play session (i.e., a single period of uninterrupted
play)), including, without limitation, any “massively
multiplayer online game” or other persistent or
partially-persistent online game or community (including, by way of
example only and without limitation, games with interactive or
persistent features or functionality similar to Second Life, World
of Warcraft, Club Penguin or Webkinz) (collectively
“Interactive/Persistent Online Games”) (provided that,
for avoidance of doubt, clause (B) of this subsection (i) will not
prohibit use or sublicensing of the Licensed Marks in connection
with Video Games that permit the user to create an animated avatar
which can be used more than once (such as the animated avatars
users create to play Wii) as long as enhancements, add-ons or
modifications made to such avatar during play do not persist beyond
one play session; or
(ii) Video Games for any online platform that are not
Interactive/Persistent Online Games
(“Non-Interactive/Persistent Online Games”) except
solely in connection with the promotion of Theatrical Exhibition of
a Licensee Live-Action Motion Picture or Licensee Hybrid Motion
Picture during the period commencing three (3) months before the
initial Theatrical Exhibition of the Motion Picture and continuing
through the initial video distribution window, but not longer than
three (3) months after the initial home video (e.g., DVD, Blu-Ray
disc) release of the Motion Picture; and provided further that
Spielberg Entity may only use (or sublicense) the Licensed Marks in
connection with (A) such Non-Interactive/Persistent Online Games on
online platforms that are solely promotional and
non-income-producing (except that the website that hosts the
applicable Non-Interactive/Persistent Online Games may contain
advertising), and (B) no more than two (2)
Non-Interactive/Persistent Online Games for each Licensee
Live-Action Motion Picture or Licensee Hybrid Motion Picture
(provided that, for avoidance of doubt, this subsection (ii) will
not prohibit use or sublicensing of the Licensed Marks in
connection with Video Games for non-online platforms that include
an element of online functionality as long as such Video Games for
non-online platforms are not Interactive/Persistent Online
Games).
(e) Holdbacks.
Spielberg Entity will ensure that Holding Company does not commence
or authorize the commencement of the initial Theatrical Exhibition
of any Similar Theatrical Motion Picture under any Licensed Marks
in any territory during any Holdback Period in such
territory. With respect to each DWA Event Picture, the
“Holdback Period” in each applicable territory (i.e.,
in the Domestic Territory and in each International Territory) is
the period commencing on the first day of the Weekend prior to the
Release Date of such DWA Event Picture in such territory and
continuing throughout and including the Weekend following such
Release Date (e.g., if the DWA Event Picture is being released on a
(i) Friday, then the Holdback Period commences two Wednesdays
before such Friday and ends two Sundays after such Friday; (ii)
Wednesday, then the Holdback Period commences on the Wednesday one
week before such Wednesday and ends two Sundays after such
Wednesday). In addition, Spielberg Entity will ensure
that Holding Company does not commence or authorize the
commencement of the initial Theatrical Exhibition of any Major
Release under any Licensed Marks in any territory (i.e., in the
Domestic Territory and in each International Territory) on the same
Weekend as the Release Date for a DWA Event Picture in such
territory. The holdback obligation described in the
previous sentence is conditioned on DWA providing Spielberg Entity
at least twelve (12) months’ prior notice of the scheduled
Release Date for a DWA Event Picture in the Domestic Territory and
each International Territory. If DWA changes a Release
Date after the date that is twelve (12) months before the scheduled
Release Date in the applicable territory and Holding Company had
already set the Release Date for one of its Motion Pictures to
comply with this Paragraph 2(e) based on the Release Date
originally set forth in DWA’s notice, Spielberg Entity shall
not be obligated to require Holding Company to change such
previously set Release Date to comply with the provisions of this
Paragraph 2(e) based on DWA’s revised Release
Date. In addition, Spielberg Entity agrees that it will
ensure that Holding Company consults in good faith with DWA prior
to scheduling the initial Theatrical Exhibition of a Motion Picture
under any Licensed Marks that is rated “PG-13” (or a
materially equivalent rating in the event of any changes to the
ratings system) in the Domestic Territory and in each of the
International Territories during the period one (1) Weekend on
either side of the applicable Release Date of each DWA Event
Picture in the Domestic Territory and in each of the International
Territories, respectively; provided that, if Holding Company
determines in its good faith business judgment after such
consultation with DWA to proceed with the initial Theatrical
Exhibition of such Motion Picture during such period, Spielberg
Entity will not be deemed to have violated the provisions of
this Paragraph 2(e). DWA acknowledges that in
certain International Territories, such holdback restrictions may
be inappropriate or impracticable to enforce due to differences in
ratings’ categories and, accordingly, the parties will
attempt to accomplish as closely as possible their agreement with
respect to the holdback restrictions as set forth in this Paragraph
2(e) in any such International Territory, taking into account such
differences in ratings’ categories.
(f)
Sublicenses. Spielberg Entity shall have the right
during the Term to sublicense, solely through a written sublicense
in the form shown in Schedule D attached hereto, the rights granted
herein with respect to the Licensed Marks only to Holding Company
(the “Holding Company Sublicense”). As set
forth in Schedule D, Holding Company shall have the right to grant
further sublicenses to (i) Walt Disney Company
(“Disney”) for the distribution of Motion Pictures
worldwide (the “Disney Distribution Agreement”); (ii)
Reliance Big Entertainment Ltd. (“Reliance Big,” and
together with Disney, the “Distributors”) for
distribution of Motion Pictures in India and the Reliance
Expatriate Territory (but with respect to the Reliance Expatriate
Territory only for Permitted Dubbed Versions) (the “Reliance
Distribution Agreement,” and together with the Disney
Distribution Agreement, the “Distribution Agreements”);
and/or (iii) consumer products and promotional partner
sublicensees, in each case subject to the terms and conditions set
forth in this License Agreement (each, a “Consumer Products
Sublicense”). Holding Company may also, with
DWA’s prior written approval in each case, enter into
additional distribution agreements that contain
sublicenses
of the Licensed
Marks, and any such additional approved distribution agreements
shall be included in “Distribution Agreements” for all
purposes under this License Agreement. DWA has
pre-approved Paramount Pictures, Universal Pictures, Twentieth
Century Fox, Columbia Pictures, and Warner Brothers as distributors
for purposes of the preceding sentence. The Distribution
Agreements and each and every Consumer Products Sublicense shall
contain at least the terms set forth in Schedule E and shall
otherwise comply with the terms of this License Agreement
(including, without limitation, Schedule D). Holding
Company (if it is granted a sublicense by Spielberg Entity) and all
sublicensees of Holding Company are referred to in this License
Agreement, individually and collectively, as
“Sublicensees,” and the Holding Company Sublicense and
all sublicenses granted by Holding Company (including the
Distribution Agreements and Consumer Products Sublicenses) are
referred to in this License Agreement, individually and
collectively, as “Sublicenses.” Without
limitation of the foregoing, each and every Sublicense shall
automatically terminate (except for the permitted continued use of
the Licensed Marks as expressly set forth in Paragraph 3(c) below)
upon any termination or expiration of this License
Agreement. Any changes to the form of Holding Company
Sublicense shown in Schedule D, or any deviation from the terms set
forth in Schedule E, shall require DWA’s prior written
consent, including, without limitation, any changes to the
provisions in any Sublicense related to automatic termination of
such Sublicense. Spielberg Entity agrees that the
maximum length of the term of each Consumer Products Sublicense
shall be consistent with and no longer than the average length of
the terms of the sublicense agreements (including any mandatory
extensions thereof, if any) actually entered into by the prior
DreamWorks LLC under the 2004 License Agreement in connection with
the same or similar Licensed Goods. Spielberg
Entity agrees that each Sublicensee shall be a reputable company
capable of performing the Licensed Services and/or producing the
Licensed Goods bearing the Licensed Marks under its Sublicense of
the same general level of quality as under license
agreements between DWA and third parties prior to the Effective
Date of this License Agreement. Spielberg Entity shall
provide DWA with the names and addresses of all Sublicensees and
the subject matter of each Sublicense. At DWA’s
request, Spielberg Entity shall provide DWA a copy of each
Sublicense promptly following execution. Spielberg
Entity shall ensure that its Sublicensees comply with the terms of
all Sublicenses, and any breach of a Sublicense by a Sublicensee
shall be deemed a breach by Spielberg Entity of this License
Agreement. DWA shall be an express third party
beneficiary of all Sublicenses with respect to the provisions of
such Sublicenses related to the Licensed Marks and shall have the
right to enforce such provisions of all Sublicenses to the same
extent as if DWA were a party to such Sublicenses. Without
limitation of the generality of the foregoing, in the event that
Spielberg Entity or Holding Company becomes aware that any Consumer
Products Sublicensee has materially breached any provision of the
applicable Consumer Products Sublicense related to the Licensed
Marks, Spielberg Entity shall promptly issue (or, as applicable,
cause Holding Company to issue) a thirty (30) day termination
notice to such Sublicensee, and if such Sublicensee does not cure
such breach within thirty (30) days of such notice, Spielberg
Entity shall (or, as applicable, shall cause Holding Company to)
immediately terminate the applicable Consumer Products
Sublicense. In the event that Spielberg Entity or
Holding Company becomes aware that any Distributor has materially
breached the terms of any Distribution Agreement related to the
Licensed Marks, Spielberg Entity shall promptly issue (or cause
Holding Company to issue) a notice to such Distributor specifying
such breach and take appropriate steps to enforce the terms of the
applicable Distribution Agreement and protect the Licensed
Marks. If such Distributor does not cure such breach of
the Distribution Agreement within thirty (30) days of such
notice,
Spielberg Entity
shall (or shall cause Holding Company to) either immediately
terminate such Distributor’s right to use the Licensed Marks,
suspend such Distributor’s right to use the Licensed Marks
until such time as the breach is cured, or meet in person with such
Distributor in order to resolve such Distributor’s
non-compliance. If such Distributor still has not cured
the breach of the Distribution Agreement within sixty (60) days of
the original notice, Spielberg Entity shall (or shall cause Holding
Company to) either immediately terminate such Distributor’s
right to use the Licensed Marks or suspend such Distributor’s
right to use the Licensed Marks until such time as the breach is
cured. If such Distributor still has not cured the
breach of the Distribution Agreement within ninety (90) days of the
original notice, Spielberg Entity shall (or shall cause Holding
Company to) immediately terminate such Distributor’s right to
use the Licensed Marks. Except as expressly set forth in
this Paragraph 2(f), Spielberg Entity and Holding Company shall
have no right to sublicense any of the rights or licenses granted
under this License Agreement, and any attempt by Spielberg Entity
or Holding Company to grant a Sublicense other than as expressly
permitted by this Paragraph 2(f) shall be void and shall convey no
rights to the purported Sublicensee with respect to the Licensed
Marks.
(g) Additions
to DWA Registered Territory. This License Agreement
shall be automatically amended to add jurisdictions to the DWA
Registered Territory (with respect to the Licensed Goods and the
Licensed Services for which DWA obtains trademark registrations in
the applicable jurisdictions only) in the event that DWA obtains
additional trademark registrations in the Licensed Marks through
new registrations in jurisdictions not already included on Schedule
A. Spielberg Entity may request in writing DWA’s
agreement to amend the Licensed Goods in Schedule B to add goods
and such agreement will not be unreasonably withheld (provided that
Spielberg Entity agrees that it will not be unreasonable for DWA to
withhold DWA’s agreement to add (i) any goods related to
Animated Motion Pictures, (ii) any goods not based on and featuring
as the primary element of ornamentation and/or design scenes and/or
characters from Licensee Live-Action Motion Pictures or Licensee
Hybrid Motion Pictures, or (iii) any goods with respect to which
DWA has granted or commenced preparations to grant a license to use
any Licensed Marks to a third party on an exclusive
basis). Upon any amendment, Spielberg Entity may cause
all pertinent Sublicenses to be amended to reflect any additions to
Schedules A and/or B.
(h) Spielberg
Exclusivity. During the Term, Spielberg agrees to be
exclusive to DWA with respect to the development, production,
distribution and/or other exploitation (including, without
limitation, Spielberg’s personal directing, producing,
writing, etc. services) of Animated Motion Pictures (other than
Motion Pictures based on the “Tintin” stories and
characters created by the author Hergé); provided, however,
that Spielberg may render direction, production, writing or similar
services with respect to an Animated Motion Picture fully-funded by
Spielberg, Reliance and/or a third party only (a “Spielberg
Animated Picture”), so long as such Spielberg Animated
Picture is exclusive to DWA with respect to all distribution and/or
other exploitation. Spielberg and/or Spielberg Entity
may approach DWA for funding for an Animated Motion Picture, but
regardless of whether Spielberg and/or Spielberg Entity approaches
DWA for such funding, during the Term, neither Spielberg nor
Spielberg Entity will (i) take such Animated Motion Picture to or
set up such Animated Motion Picture with another person or entity,
or (ii) unless otherwise agreed by DWA in writing, render any
services on such Animated Motion Picture except in the event it is
fully-funded by Spielberg, Reliance and/or a third party only as a
Spielberg Animated Picture as described in the immediately
preceding sentence. If Spielberg or Spielberg Entity
delivers (as
such term is
customarily understood with respect to distribution in the
entertainment industry) a fully-financed and completed Spielberg
Animated Picture to DWA, DWA agrees to release such Animated Motion
Picture on terms to be negotiated in good faith by the parties
subject to any then-existing DWA distribution arrangement(s) with a
third party(ies) which are deemed pre-approved by Spielberg and
Spielberg Entity; provided, however, that if the parties do not or
cannot agree on such terms, such Spielberg Animated Picture will
not be distributed in any manner during the Term.
(i) Spielberg
Entity acknowledges that DWA has pre-existing contractual
arrangements with its third party strategic partners McDonalds,
Intel and Hewlett-Packard that may limit DWA’s ability to
license the Licensed Marks to Spielberg Entity, and to permit
Spielberg Entity to grant Sublicenses with respect to the Licensed
Marks, for certain uses, as described in Schedule
I. Spielberg Entity hereby agrees that the rights and
license granted to Spielberg Entity under this License Agreement
shall be subject to the terms of DWA’s pre-existing
contractual arrangements with its strategic partners as described
in Schedule I, including any extensions and renewals of such
arrangements (and that DWA shall not be in breach of any of its
representations, warranties or other obligations under this License
Agreement as a result of such pre-existing contractual
arrangements). In the event that Spielberg Entity or any
Sublicensee wishes to use any Licensed Marks for any Licensed Good
or Licensed Service in a manner that would conflict with
DWA’s pre-existing contractual arrangements, DWA will use
reasonable commercial efforts to assist Spielberg Entity to secure
permission for such use from the applicable third party strategic
partner.
(a) The
Term of this License Agreement shall commence on the Effective Date
and, unless terminated sooner pursuant to Paragraph 3(b), shall
continue thereafter until the first to occur of (a) the initial
Release Date of the thirtieth (30 th
)
Motion Picture produced (or co-produced), acquired, distributed or
released by or for Holding Company, or (b) the sixth (6
th
)
anniversary of the Effective Date.
(b) This
License Agreement may be terminated in its entirety by Spielberg
Entity at any time upon notice to DWA. This License
Agreement may be terminated in its entirety by DWA (i) at any time
on or after the fourth (4 th
)
anniversary of the Effective Date, provided that DWA gives
Spielberg Entity at least sixty (60) days’ prior notice of
such termination, (ii) immediately upon notice to
Spielberg Entity in the event of a material breach by Spielberg
Entity that remains uncured for a period of thirty (30) days after
DWA provides written notice to Spielberg Entity of such claimed
material breach, (iii) immediately upon notice to Spielberg Entity
in the event of a material breach by Spielberg Entity of any
provision of Paragraphs 2(e), 6(a) or 6(d), or a material breach by
Spielberg of Paragraph 2(h), (iv) immediately upon notice to
Spielberg Entity in the event of a material breach by Spielberg
Entity of any provision of Paragraphs 6(b), 6(c), 6(e), 6(f) or
6(g) that remains uncured for a period of five (5) days after DWA
provides written notice to Spielberg Entity of such claimed
material breach, (v) immediately upon notice to Spielberg Entity in
the event that Spielberg ceases to have Greenlight Authority over
each and every Motion Picture financed, produced, acquired and/or
released by Holding Company, (vi) immediately upon notice to
Spielberg Entity in the event that Spielberg does not exercise
Greenlight Authority during any period of twenty-four (24)
consecutive months with respect to at least one Motion Picture for
Theatrical Exhibition or one Television Motion Picture, in each
case that is produced or acquired by Holding Company and is
released under the Licensed Marks, (vii) immediately upon notice to
Spielberg Entity in the event that Spielberg dies or Spielberg has
a physical or mental incapacity that impairs his ability to
exercise Greenlight Authority over each and every Motion Picture
financed, produced, acquired and/or released by Holding Company for
a period of three (3) months or longer, (viii) immediately upon
notice to Spielberg Entity in the event that that (A) any
Licensee-Related Entity undergoes a Change of Control, (B)
Spielberg Entity is no longer solely and wholly owned and
controlled by Spielberg, (C) DW II Management, LLC is no longer
managed by and more than seventy-five
percent (75%)
owned by DW II Management, LP, (D) Spielberg Entity is no longer
the sole general partner of DW II Management, LP, or entities
solely owned and controlled by Spielberg are no longer the sole
owners of DW II Management, LP; or (E) any of DreamWorks II
Financial Services, Co., LLC, DreamWorks II Distribution Co., LLC,
DreamWorks II Production Co., LLC, or DreamWorks II Development
Co., LLC is no longer solely and wholly owned and controlled by
DreamWorks II Holding Co., LLC; (ix) immediately upon notice to
Spielberg Entity in the event that (A) Holding Company has not
acquired funding of at least $325,000,000 by the initial official
launch of Holding Company, (B) Reliance Entity does not fund
Holding Company by the initial official launch of Holding Company,
(C) Reliance Entity ceases to beneficially own at least twenty-five
percent (25%) of the outstanding equity securities of Holding
Company, or (D) any entity or person other than Reliance Entity or
DW II Management, LLC becomes the beneficial owner of a ten percent
(10%) or greater equity interest in Holding Company without the
prior written approval of DWA, (x) immediately upon notice to
Spielberg Entity in the event that (A) any Licensee-Related Entity
(other than Reliance Entity) files any petition under any
bankruptcy, insolvency or similar laws, (B) any involuntary
petition under any bankruptcy or similar statute is filed against
any Licensee-Related Entity (other than Reliance Entity) or a
receiver or trustee is appointed to take possession of all or a
substantial part of any Licensee-Related Entity’s (other than
Reliance Entity’s) assets, (C) any Licensee-Related Entity
(other than Reliance Entity) makes a general assignment for the
benefit of creditors or becomes unable to meet its obligations as
they mature, or (D) any Licensee-Related Entity’s (other than
Reliance Entity’s) financial condition becomes such as to
materially impair or to be reasonably likely to materially impair
its performance in accordance with the terms and conditions of this
License Agreement. Spielberg Entity shall promptly
provide written notice to DWA of the occurrence of an event set
forth in this Paragraph 3(b)(v) through (x). In the
event of termination of this License Agreement in its entirety by
DWA under this Paragraph, all Sublicenses shall automatically
terminate by their terms as required by Paragraph 2(f) above (other
than as expressly set forth in Paragraph 3(c)), Spielberg Entity
will cease (and will cause all Sublicensees to cease) all further
use of the Licensed Marks except as expressly permitted hereunder,
and Spielberg Entity will take such steps (and cause Holding
Company to take such steps) as are necessary to change its
corporate names and trade names to ones that do not include any
Licensed Mark, to cease use of any domain names containing any
Licensed Mark, and to delete all listings of its corporate names
and trade names in directories, databases, indices, and other
public and private listings, all as soon after termination as
commercially possible. In the event that the License
Agreement expires pursuant to Paragraph 3(a) or terminates because
DWA exercised its right to terminate pursuant to this Paragraph
3(b) other than for Spielberg Entity’s material breach
pursuant to any of Paragraphs 3(b)(ii)-(iv) (a “Non-Breach
Termination”), DWA agrees that Holding Company or Holding
Company’s successor(s)-in-interest may use the Licensed Marks
in connection with Completed Films, but only in the manner set
forth in Paragraph 3(c) below, and provided that, notwithstanding
anything to the contrary in this License Agreement, the parties
acknowledge and agree that there shall not be more than thirty (30)
Completed Films in the aggregate.
(c) Following
any Non-Breach Termination, and subject to all of Spielberg
Entity’s obligations under this License Agreement and Holding
Company’s obligations under the Holding Company Sublicense,
Holding Company may (i) continue to exercise the rights and
licenses granted under the Holding Company Sublicense to use the
Licensed Marks in connection with any of the following activities,
to the extent such activities are included in Licensed Services:
(1) distributing or exhibiting any Completed Film; (2) releasing or
re-releasing any Completed Film; (3) editing any Completed Film for
television Exhibition, DVD Exhibition, or Exhibition in any other
media, now known or hereafter developed, or for purposes of
territorial distribution, and dubbing or sub-titling any Completed
Film into a different language, or for reasons of public taste, or
for legal reasons, including but not limited to a claim or the
threat of a claim that such Completed Film without such editing
might infringe the rights of any third party, and then releasing,
distributing, and exhibiting such edited Completed Film; (4) using
the Licensed Marks for attribution purposes only, solely to the
extent necessary to indicate the fact that such Completed Film was
produced and/or distributed by Holding Company, or (5) using and
authorizing the use of phrases such as “Based on the Film
________ Produced [or Presented] by DreamWorks Pictures
[or
DreamWorks Studios
or DreamWorksFilms]” (provided that only one such
construction may be used for all Completed Films) for attribution
purposes only, solely to the extent required to indicate the
relationship between a Completed Film and any sequel to or remake
of a Completed Film, and provided that no Licensed Marks are used
in connection with such sequel or remake other than as required to
indicate such relationship; (ii) for a period of six (6) months
after the date of expiration or termination (the “Tail
Period”), continue to enter into Consumer Products
Sublicenses with respect to Licensed Goods based on and featuring
as the primary element of ornamentation and/or design scenes and/or
characters from a Completed Film; and (iii) for the remainder of
the then-current term (without any extension or renewal) of any
Consumer Products Sublicenses entered into during the Term of this
License Agreement or during the Tail Period, continue to
distribute, advertise and promote Licensed Goods pursuant to such
Sublicenses. Except as expressly set forth in this
Paragraph 3(c), following any termination or expiration of this
License Agreement, Spielberg Entity and Holding Company shall
immediately cease and cause their respective Sublicensees to cease
all use of the Licensed Marks, including, without limitation, all
Exhibition of Motion Pictures under the Licensed Marks, all sales
and distribution of any goods or services under the Licensed Marks,
and all use of any domain names containing any Licensed
Marks. The following sections of this License Agreement
shall survive any termination or expiration: 1, 3(c),
6(a)-(e), 9(c), 9(d), 10 and 11. In addition, (A) all
limitations, restrictions and other terms of this Agreement
applicable to Spielberg Entity’s or any Sublicensee’s
continued use of any Licensed Marks after expiration or termination
pursuant to this Paragraph 3(c) shall survive during the period of
such continued use, and (B) Spielberg Entity shall remain
responsible for enforcing the provisions of any Sublicenses
applicable to the Licensed Marks to the extent that such provisions
survive the termination or expiration of such
Sublicenses.
4.
Attribution Notice; Usage Guidelines .
Spielberg Entity
agrees that in connection with any use of the Licensed Marks under
this License Agreement, it will comply with, and will cause all
Sublicensees to comply with, such usage guidelines regarding the
use and display of the Licensed Marks, including, without
limitation, with respect to notices regarding DWA’s ownership
of the Licensed Marks, as DWA may reasonably require from time to
time (provided that any changes that DWA makes to its usage
guidelines in effect as of the Effective Date will be reasonable
and will not materially impair Holding Company’s or its
Sublicensees’ use of the Licensed Marks). Without limitation
of Paragraph 2(f), Spielberg Entity agrees that it will include
(and will cause Holding Company to include) in any Sublicense a
requirement that all Sublicensees will comply with such guidelines
and use such notices as may be reasonably required by
DWA.
5.
Further Assurances, Etc .
(a) DWA
shall take such steps as DWA determines are reasonably necessary
under the laws of the various jurisdictions in the DWA Registered
Territory, as the DWA Registered Territory may be amended from time
to time in the manner set forth in Paragraph 2(g), to record this
License Agreement, at DWA’s sole expense, in order to
facilitate Holding Company’s and the other
Sublicensees’ use of the Licensed Marks and enable DWA to
enforce the Licensed Marks. If Spielberg Entity or
Holding Company has a bona fide intent to use or grant a Sublicense
to use the Licensed Marks in a particular jurisdiction where
applicable law requires recordal of trademark license agreements
and DWA has not previously recorded this License Agreement in such
jurisdiction, then Spielberg Entity may request that DWA record the
License Agreement in such jurisdiction, and DWA will not
unreasonably refuse such request. DWA shall have no
obligation to record this License Agreement in any jurisdiction
outside the DWA Registered Territory.
(b) Spielberg
Entity will (and will require its Sublicensees to) execute such
documents and to take such steps, at Spielberg Entity’s sole
expense, including, without limitation, by making available to DWA
and its counsel documents, information, and witnesses, as may be
required by DWA to perfect, confirm, acknowledge, or record this
License Agreement in any jurisdiction, to enforce the Licensed
Marks as provided in Paragraph 8 below, or otherwise to effectuate
the purposes of this License Agreement.
6.
Acknowledgment of DWA’s Ownership of Licensed Marks,
Etc.
(a) Spielberg
Entity acknowledges and agrees that DWA owns all right, title and
interest in and to the Licensed Marks throughout the world, that
Spielberg Entity will acquire no ownership interest in or to the
Licensed Marks under this License Agreement, and that Spielberg
Entity’s interest in the Licensed Marks is limited solely to
the license interest conferred by the license expressly granted
under this License Agreement. There are no implied
licenses under this License Agreement. Spielberg Entity
further acknowledges and agrees that all uses of the Licensed Marks
by it under this License Agreement and by all Sublicensees under
all Sublicenses inure and shall inure to the benefit of DWA and
that all goodwill in the Licensed Marks is and shall be owned by
DWA.
(b) Spielberg
Entity agrees that it will not file, and that it will cause all
Sublicensees not to file, any applications to register any Licensed
Marks, or any other mark that consists of, colorably imitates, or
is confusingly similar to any of the Licensed Marks or any other
DreamWorks Marks, in the DWA Registered Territory or in any
jurisdiction outside the DWA Registered
Territory. Spielberg Entity agrees that it will not
register, and that it will cause all Sublicensees not to register,
any domain name that includes any Licensed Marks or that consists
of, colorably imitates, or is confusingly similar to any of the
Licensed Marks or any other DreamWorks Marks, in the DWA Registered
Territory or elsewhere in the world.
(c) Spielberg
Entity agrees that, except as specifically permitted hereunder, it
will make no use, and will cause all Sublicensees to make no use,
of any mark that consists of, colorably imitates, or is confusingly
similar to, any of the Licensed Marks or any other DreamWorks
Marks.
(d) Spielberg
Entity agrees that it will not challenge, or assist any third
party, including, without limitation, any Sublicensee, to
challenge, the validity of the Licensed Marks or any other
DreamWorks Marks or DWA’s ownership thereof or the
enforceability of DWA’s rights therein. Spielberg
Entity agrees that it will include in each Sublicense a provision
that each Sublicensee will not challenge, or assist any third party
to challenge, the validity of the Licensed Marks.
(e) Spielberg
Entity agrees that it will not, and will cause all Sublicensees not
to, alter or modify any Licensed Marks, or combine any Licensed
Marks with any other trademark in a manner that creates or may
reasonably be deemed to create a composite mark.
(f) Without
limitation of anything else in this Paragraph 6, Spielberg Entity
shall not, and shall cause its Sublicensees not to, use or display
any Licensed Mark with any Disney Mark, including, without
limitation, by using or displaying any Licensed Mark on or in any
product, advertising or marketing material, packaging or label,
signage or display on or in which any Disney Mark also
appears. Notwithstanding the preceding sentence,
Spielberg Entity may permit Holding Company or Disney (if Disney is
a Sublicensee) to display (i) a Walt Disney distribution credit in
a form substantially similar to one of the following:
“Distributed by WALT DISNEY STUDIOS MOTION PICTURES” or
“Distributed by WALT DISNEY MOTION PICTURES” or
“Distributed by WALT DISNEY STUDIOS” (each a
“Disney Distribution Credit”), only in conjunction with
the Touchstone logo in a manner substantially similar to that shown
on the attached Schedule F (including with respect to the relative
proportions of the Disney Distribution Credit and the Touchstone
logo), on or in (A) Video game and DVD packaging that displays
Licensed Marks as otherwise permitted under this License Agreement,
and (B) paid advertising for Licensee Live-Action Motion Pictures
and Licensee Hybrid Motion Pictures marketed or distributed under
Licensed Marks as otherwise permitted under this License Agreement,
including in-theater “standees” for such Licensee
Live-Action Motion Pictures and Licensee Hybrid Motion Pictures;
(ii) a Disney Distribution Credit in the end of the end crawl of
Licensee Live-Action Motion Pictures in a manner consistent with
the use of such distribution credit in Touchstone Live-Action
Motion Pictures released prior to the Effective Date (such as
“Swing Vote”); (iii) Disney Marks and Licensed Marks
(as otherwise permitted under this License Agreement) in
presentation booklets and similar marketing materials used to offer
both Disney Motion Pictures and Licensee Live-Action Motion
Pictures and/or Licensee Hybrid Motion Pictures to buyers and
potential buyers of such Motion Pictures; and (iv) Disney Marks and
Licensed Marks (as otherwise permitted under this License
Agreement) on convention or tradeshow booth/suite signage displayed
at, and marketing materials distributed at, conventions or
tradeshows where Disney showcases both Disney Motion Pictures and
Licensee Live-Action Motion Pictures and/or Licensee Hybrid Motion
Pictures.
(g) For
avoidance of doubt, Paragraph 6(f) will not prevent Holding Company
and its Sublicensees from selling Licensed Goods that bear Licensed
Marks in retail stores owned and operated by the Walt Disney
Company, or retail stores and online portals and catalogs operated
under Disney Marks, provided that such Licensed Goods (and any
related advertising or marketing material, packaging and label,
signage and display, and other material) do not bear, display or
otherwise use any Disney Mark, except to the extent expressly
permitted under Paragraph 6(f). In addition, Paragraph
6(f) will not prevent Holding Company from exhibiting, advertising,
marketing or promoting Licensee Live-Action Motion Pictures and
Licensee Hybrid Motion Pictures on ESPN, the Disney Channel, ABC or
ABC Family as otherwise permitted by this License
Agreement.
(a) Spielberg
Entity agrees to consult (and to cause Holding Company to consult)
in good faith with DWA prior to the use of the Licensed Marks in
connection with any Licensed Goods and Licensed Services. Without
limitation of the foregoing, Spielberg Entity shall not (and shall
cause Holding Company not to) use any Licensed Marks in connection
with any Television Motion Pictures without DWA’s approval in
advance in writing, such approval not to be unreasonably
withheld. For avoidance of doubt, if DWA approves a
television series, such approval shall apply to all episodes in
such series, provided that the foregoing shall not limit Spielberg
Entity’s or Holding Company’s quality control
obligations with respect to all episodes in such series, nor shall
it limit DWA’s rights to inspect and approve such quality as
set forth in Paragraph 7(d).
(b) Spielberg
Entity agrees that it will use, and will cause all Sublicensees to
use, the Licensed Marks only in connection with Licensed Goods and
Licensed Services of such quality as will protect and enhance the
goodwill, image and reputation adhering to the Licensed Marks, and,
without limiting the generality of the foregoing, of a quality at
least equal to that of similar goods and services provided or sold
by DWA and DWA’s other licensees. Licensed Goods
and Licensed Services that are of a quality at least equal to that
of similar goods and services provided or sold by DWA and
DWA’s other licensees will be deemed to have met the
foregoing quality requirement.
(c) Spielberg
Entity agrees to conform its uses, and to cause all Sublicensees to
conform their uses, of the Licensed Marks under this License
Agreement to the usage guidelines set forth in Schedule G attached
hereto, which Schedule G may be amended by DWA from time to time
through written notice to Spielberg Entity in the manner set forth
in Paragraph 11(a) below (and provided that Spielberg Entity and
its Sublicensees will be given a reasonable period of time in which
to apply any such changes). In the event that Spielberg
Entity wishes to use or permit any Sublicensee to use the Licensed
Marks in a manner that deviates from the usage guidelines set forth
in Schedule G attached hereto, Spielberg Entity shall seek approval
from DWA in writing for such use.
(d) DWA
shall have the right to inspect and approve the quality of all
Licensed Goods and Licensed Services in connection with which
Spielberg Entity or any Sublicenses uses any Licensed Marks, and
Spielberg Entity shall not (and shall ensure that its Sublicensees
do not) use any Licensed Mark in connection with any Licensed Goods
or Licensed Services that have been disapproved by
DWA. As requested by DWA, Spielberg Entity agrees to
submit to DWA for review and approval a sample of any Licensed
Goods in connection with which Spielberg Entity or any Sublicenses
is using or intends to use any Licensed Marks, and a sample of any
materials and information regarding any Licensed Services in
connection with which Spielberg Entity or any Sublicensee is using
or intends to use any Licensed Marks, which approval shall not be
unreasonably withheld by DWA. DWA’s failure to
disapprove a sample in writing within 10 business days of receipt
shall be deemed approval. DWA agrees to specify in
writing the reasons for its disapproval of any such sample in the
applicable disapproval notice. For avoidance of doubt,
DWA’s inspection and approval rights as set forth in this
Paragraph 7(d) are only to allow DWA to ensure that the Licensed
Goods and Licensed Services meet the quality standards set forth in
this License Agreement, and do not give DWA creative control over
Holding Company’s Motion Pictures. In addition,
Spielberg Entity and Holding Company will not be required to submit
Motion Pictures intended for initial Theatrical Exhibition for
approval by DWA, [***].
NOTE: CERTAIN MATERIAL HAS BEEN
REDACTED FROM THIS DOCUMENT AND FILED SEPARATELY WITH THE SEC
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2.
THE LOCATIONS OF THESE REDACTIONS ARE INDICATED THROUGHOUT THE
DOCUMENT BY THE FOLLOWING MARKING: [***]
(e) Spielberg
Entity shall ensure that once DWA has approved any sample pursuant
to Paragraph 7(d), the applicable Licensed Goods and Licensed
Services will not thereafter materially deviate from the sample
approved by DWA.
(f)
Spielberg Entity shall, and shall cause each Sublicensee to, (a)
conduct its business in accord with the highest business and
ethical standards (provided that a Sublicensee shall be deemed to
have satisfied this standard if it complies with standards at least
equivalent to those that DWA requires of its own third party
licensees), and in a manner that reflects positively on the
Licensed Marks; (b) not derogate DWA’s rights in the Licensed
Marks or the value of the Licensed Marks; (c) take no action that
would interfere with, diminish or tarnish those rights or value;
(d) not engage in any unfair, anticompetitive or unlawful business
practices in connection with any use of the Licensed Marks or the
manufacturing, sale, marketing and distribution of any Licensed
Goods or the performance of any Licensed Services under the
Licensed Marks; (e) not use the Licensed Marks or conduct its
business in any manner that infringes or misappropriates any third
party’s trademark, copyright, patent, trade secret, privacy
or publicity right, or other intellectual property or proprietary
right, or that is defamatory or obscene; and (f) comply with all
applicable local, state and federal laws, regulations, rules, and
ordinances governing its business in connection with any use of the
Licensed Marks or the manufacturing, sale, marketing and
distribution of any Licensed Goods or the performance of any
Licensed Services under the Licensed Marks. Spielberg
Entity shall, and shall cause each Sublicensee to reasonably
cooperate with and assist DWA to monitor and ensure Spielberg
Entity’s and each Sublicensee’s compliance with this
Paragraph 7(f).
8.
Enforcement; Expansion of Rights; Etc.
(a) Spielberg
Entity agrees to advise DWA promptly and in writing of any
instances of possible infringement or dilution of, or unfair
competition or cybersquatting regarding, the Licensed Marks in the
DWA Registered Territory or elsewhere in the world that come to the
attention of Spielberg Entity or Holding Company (collectively
“Infringements”). Upon receipt of such
notification or at any time, DWA may take such action as it deems
appropriate to protect the Licensed Marks, after consultation in
good faith with Spielberg Entity if the Infringement is in the DWA
Registered Territory and within the scope of the DWA Registered
Trademark Rights and relates to goods or services within
the field of use of Spielberg Entity’s license hereunder
(provided that the final decision of whether or not to take such
action shall be in DWA’s sole discretion), including, without
limitation, criminal, civil, or administrative proceedings and
litigation, through counsel of DWA’s choice, which counsel
shall be reasonably acceptable to Spielberg Entity if the
Infringement is in the DWA Registered Territory and within the
scope of the DWA Registered Trademark Rights and relates to goods
or services within the field of use of Spielberg Entity’s
license hereunder. DWA shall have the sole right (but no
obligation) to take any such action and shall have the sole right
to control any litigation or other proceeding. Where
litigation or other proceeding by DWA involves an Infringement, the
attorneys’ fees and other expenses of such litigation or
other proceeding (collectively “Expenses”), and any
sums obtained by way of judgment or settlement from such litigation
or other proceeding (a “Recovery”), shall be allocated
as follows: (i) if the Infringement involves only the Licensed
Marks and only Licensed Goods or Licensed Services as to which
Spielberg Entity has an exclusive license of the Licensed Marks,
and Spielberg Entity has agreed that such action should be taken,
Spielberg Entity shall reimburse DWA for all documented Expenses
and shall keep any Recovery (and DWA agrees that any such
reimbursed Expenses allocable to
attorneys’
fees or other third party professional services shall be charged at
hourly rates that do not deviate materially from the hourly rates
that DWA pays to the applicable service providers in matters
undertaken on its own behalf); and (ii) if the Infringement
involves any DreamWorks Marks other than the Licensed Marks and/or
any Licensed Goods or Licensed Services as to which Spielberg
Entity has a non-exclusive license of the Licensed Marks, or if
Spielberg Entity does not agree that such action should be taken,
DWA shall bear all Expenses and shall keep any
Recovery. Where litigation by DWA against an
Infringement also includes claims by Spielberg Entity based upon
Spielberg Entity’s intellectual property rights or other
rights unrelated to the Licensed Marks (e.g., Spielberg
Entity’s rights in a Motion Picture), each of DWA and
Spielberg Entity shall bear its own Expenses and shall keep any
Recovery that pertain to the claims asserted by it, unless DWA and
Spielberg Entity elect to assert their respective claims through
the same counsel, in which case they shall agree in good faith
regarding the allocation of Expenses and
Recovery. Nothing in this License Agreement imposes any
obligations on DWA with respect to any infringement or dilution of,
or unfair competition or cybersquatting regarding, the Licensed
Marks outside the DWA Registered Territory or outside the scope of
the DWA Registered Trademark Rights.
(b) Spielberg
Entity agrees (and will cause its Sublicensees to agree) at
DWA’s request to be and, as necessary, to remain, the sole
party or a joint party with DWA, and otherwise to cooperate with
and assist DWA, in any litigation or other proceeding involving a
claim based upon the Licensed Marks, including, without limitation,
in the event that the substantive law of a particular jurisdiction
requires Spielberg Entity or any Sublicensee to be a party, whether
because the status of the recordation of an assignment, this
Licensed Agreement or any related documents in that jurisdiction as
of the time of the commencement of such litigation or other
proceeding does not permit DWA to proceed without Spielberg Entity
or such Sublicensee joining as a party, or for any other
reason. The allocation of Expenses and Recovery in
litigation or other proceeding, in which Spielberg Entity or any
Sublicensee must be a joint party with DWA, or a sole party, shall
also be governed by Paragraph 8(a) above to the extent
applicable.
(c) DWA
and Spielberg Entity agree that in connection with any litigation
or other proceeding by DWA to which sub-Paragraph 8(a)(i) above
applies, DWA shall not compromise the litigation in a manner that
affects Spielberg Entity’s rights hereunder without good
faith consultation with Spielberg Entity, and that in any other
litigation by DWA, including, without limitation, any litigation to
which sub-Paragraph 8(a)(ii) above applies, DWA may prosecute and
compromise the litigation in its sole discretion.
(d)
Spielberg Entity may request DWA to file applications to register
the Licensed Marks for the Licensed Goods and Licensed Services in
countries outside the DWA Registered Territory, to register the
Licensed Marks in jurisdictions in the DWA Registered Territory for
goods and services in addition to the Licensed Goods and Licensed
Services, and to register domain names containing the Licensed
Marks. In response to any such request, DWA shall decide
whether to file such applications for trademark and service mark
registration, and to register such domain names, in the exercise of
its reasonable business judgment. The attorneys’
fees and expenses in connection with the filing and prosecution of
such applications that DWA agrees to file, or the registration of
such domain names that DWA agrees to register, shall be shared
equally by DWA and Spielberg Entity. DWA agrees to
prosecute any such applications for trademark or service mark
registration and to maintain all existing and future registrations
of the Licensed Marks and domain name registrations, unless DWA
decides in its reasonable business judgment to abandon any such
applications or not to renew any such registrations (and DWA will
not abandon any such application or
fail to renew any
such registration in any jurisdiction in the DWA Registered
Territory where Spielberg Entity is then using the applicable
Licensed Mark for the applicable Licensed Goods or Licensed
Services without good faith consultation with Spielberg
Entity). Nothing in this License Agreement imposes any
obligations on DWA with respect to prosecution or maintenance of
any applications or registrations for Licensed Marks outside the
DWA Registered Territory or outside the scope of the DWA Registered
Trademark Rights (other than to exercise its reasonable business
judgment in considering requests for additional filings as
expressly set forth above). Without limitation of
Paragraph 6(a), DWA will own all domain names that incorporate any
DreamWorks Marks, including the Licensed Domain
Names. DWA will use commercially reasonable efforts to
cause the Licensed Domain Names to resolve to such websites as are
directed by Spielberg Entity, provided that the use of any
DreamWorks Marks on such websites and any materials displayed on or
otherwise made available through such websites complies with the
terms of this License Agreement.
9.
Representations and Warranties .
(a) DWA
represents and warrants to Spielberg Entity that: (i) it has the
right, power, and authority to enter into and fully perform its
obligations under this License Agreement; and (ii) this License
Agreement is a binding agreement as to DWA that is enforceable
against DWA according to its terms.
(b) Spielberg
Entity represents and warrants to DWA that: (i) Spielberg Entity
will throughout the Term of this License Agreement maintain
sufficient control over all Sublicensees to fulfill Spielberg
Entity’s obligations to cause all Sublicensees to comply with
the Sublicenses and otherwise take or refrain from taking the
actions specified hereunder; (ii) Spielberg Entity’s and its
Sublicensees’ use of the Licensed Marks, and the conduct of
its and their business under the Licensed Marks, shall be in
accordance with all applicable laws, (iii) Spielberg Entity has the
right, power, and authority to enter into and fully perform its
obligations under this License Agreement; and (iv) this License
Agreement is a binding agreement as to Spielberg Entity that is
enforceable against Spielberg Entity according to its
terms.
(c) The
Licensed Marks are provided to Spielberg Entity “as is”
without any warranty express or implied, and DWA hereby
specifically disclaims any warranties, express or implied,
including, without limitation, the warranties of merchantability,
fitness for a particular purpose, title and non-infringement of
third-party rights, and any warranties that may arise due to course
of performance, course of dealing or usage of trade, related to the
Licensed Marks or, except as expressly set forth in Paragraph 9(a)
above, any other subject matter of this License
Agreement.
(d) In
no event shall DWA be liable for any indirect, special or
consequential damages, or damages for loss of profits, loss of
goodwill or otherwise, arising from or relating to this License
Agreement or the Licensed Marks, even if DWA is expressly advised
of the possibility of such damages. DWA’s total
liability arising from or relating to this License Agreement or the
subject matter hereof shall not exceed two hundred fifty thousand
dollars ($250,000). The foregoing limitation of liability and
exclusion of certain damages shall apply regardless of the failure
of essential purpose of any remedies available to either
party.
10.
Indemnification.
(a) DWA
agrees to indemnify, defend, and hold harmless Spielberg Entity
from and against any claim, demand, cause of action, or suit for
trademark, service mark, or trade name infringement, or for
dilution, cybersquatting, or unfair competition that is asserted
against Spielberg Entity by a third party solely to the extent
based on Spielberg Entity’s or any Sublicensee’s use of
the Licensed Marks for Licensed Goods or Licensed Services in the
DWA Registered Territory and within the scope of the DWA Registered
Trademark Rights as expressly permitted under this License
Agreement (each a “Trademark Claim”), subject to the
limitation of liability in Paragraph 9(d). Spielberg Entity agrees
that upon receipt of notice of any Trademark Claim, it will
promptly tender such Trademark Claim in writing to DWA in the
manner set forth in Paragraph 11(a) below, and DWA agrees that it
will defend Spielberg Entity against such Trademark Claim at
DWA’s expense and through counsel of DWA’s
choosing. DWA may defend or compromise any Trademark
Claim and agrees to pay any judgment or settlement on any Trademark
Claim (in each case, subject to the limitation of liability set
forth in Paragraph 9(d)), provided that DWA will not agree to any
settlement that affects Spielberg Entity’s rights hereunder
without good faith consultation with Spielberg
Entity. Spielberg Entity agrees that it will cooperate
fully with, and will cause all applicable Sublicensees to cooperate
fully with, DWA and its counsel in DWA’s defense of any
Trademark Claim. DWA agrees to carry such insurance as
may be reasonable to insure the fulfillment of DWA’s
indemnity obligations with respect to Trademark
Claims. In the event of any Trademark Claim, DWA may, in
its discretion (i) procure for Spielberg Entity the right to
continue using and/or sublicensing (as applicable with respect to
the claim at issue) the Licensed Marks that are allegedly
infringing, (ii) provide Spielberg Entity with substitute marks
that do not infringe any third party trademarks, or (iii) if
neither (i) nor (ii) is feasible using commercially reasonable
efforts, terminate Spielberg Entity’s license with respect to
the applicable Licensed Marks in the relevant jurisdiction and for
the relevant Licensed Goods or Licensed Services, as DWA deems
necessary to avoid any further infringement or alleged
infringement. Under no circumstances shall DWA be
obligated to defend, indemnify or hold harmless Spielberg Entity
with respect to continued use of any Licensed Mark after DWA has
taken any of steps (i), (ii) or (iii) as described in the preceding
sentence. Spielberg Entity agrees that, notwithstanding
anything to the contrary in this License Agreement, in the event
that Spielberg Entity seeks indemnification from DWA with respect
to any claim for which Holding Company or another Sublicensee has
sought indemnification from Spielberg
Entity under any
Sublicense, as a condition to any obligation of DWA to provide such
indemnification hereunder, Spielberg Entity shall give DWA the
option (to be exercised in DWA’s sole discretion) to assume
and control the defense and settlement of such claim through
counsel of DWA’s choosing. In such circumstances,
DWA may fulfill any obligations it may have to Spielberg Entity
under this Paragraph 10(a) by doing either of the following in
DWA’s sole discretion: (1) permitting Spielberg
Entity to control the defense and settlement of the claim against
the Sublicensee, and reimbursing Spielberg Entity for the
reasonable costs of such defense and for any judgment or settlement
amounts paid by Spielberg Entity as otherwise required by this
Paragraph 10(a), subject to the limitation of liability set forth
in Paragraph 9(d) (and provided that any such settlement is
approved by DWA), or (2) assuming control of the defense and
settlement of the claim against the Sublicensee, and paying any
such judgment and settlement amounts itself, subject to the
limitation of liability set forth in Paragraph
9(d). DWA’s right to control the defense and
settlement of such claim shall continue until such time as DWA
gives notice to Spielberg Entity that DWA’s aggregate costs
of such defense (including, without limitation, attorneys’
fees), and any judgment or settlement amounts, equal or exceed the
amount of DWA’s limitation of liability set forth in
Paragraph 9(d) and that DWA, therefore, has fulfilled its entire
indemnification obligation to Spielberg Entity (such notice, a
“ Limitation Notice ”). Upon receipt
of a Limitation Notice with respect to any claim, Spielberg Entity
may assume control of the defense and settlement (and DWA shall
have no further obligation to indemnify or defend DW II with
respect to such claim); provided, however, that DWA shall retain
the right (but not the obligation) to participate in the defense
and settlement of the claim with counsel of its choice at its own
expense, and to control any aspects of such defense and settlement
that relate to, or that have the potential to impact, DWA or any
DreamWorks Marks (or DWA’s rights therein or ownership
thereof), including, without limitation, the scope, validity or
enforceability of any DreamWorks Marks (collectively,
“ DWA-Controlled Matters ”), and Spielberg
Entity shall not file any papers or otherwise take any position in
the defense of the claim or enter into any settlement with respect
to any DWA-Controlled Matters without DWA’s prior written
approval. Spielberg Entity shall ensure that each
Sublicense in which any indemnification related to the Licensed
Marks is provided to the applicable Sublicensee requires such
Sublicensee to agree that DWA may, at its option, assume and
control the defense and settlement of such claim through counsel of
DWA’s choosing as described above.
(b) Spielberg
Entity agrees to indemnify, defend, and hold harmless DWA, and to
obligate each Sublicensee to indemnify, defend, and hold harmless
DWA, from and against any claim, demand, cause of action, or suit
that is asserted against DWA by a third party arising out of or
relating to (i) any Licensed Goods or Licensed Services, including,
without limitation, Spielberg Entity’s or any
Sublicensee’s manufacture, advertisement, promotion,
marketing, offering for sale, sale, or distribution of any Licensed
Goods, or Spielberg Entity’s or any Sublicensee’s
advertisement, promotion, marketing, offering for sale, sale, or
rendition of any Licensed Services, unless such claim, demand,
cause of action, or suit is a Trademark Claim for which DWA is
required to indemnify Spielberg Entity pursuant to Paragraph 10(a),
(ii) any Sublicense, unless such claim, demand, cause of action, or
suit is a Trademark Claim for which DWA is required to indemnify
Spielberg Entity pursuant to Paragraph 10(a), or (iii) Spielberg
Entity’s or any Sublicensee’s use of any Licensed Mark
outside the DWA Registered Territory or outside the scope of the
DWA Registered Trademark Rights or any use other than as expressly
permitted by this License Agreement or other breach of this License
Agreement (each a “Licensee
Claim”). Licensee Claims include, without
limitation, all claims, demands, causes of action, or suits for
copyright infringement, libel, violation or infringement of the
right of publicity, violation or invasion of the right of privacy,
disparagement, theft of ideas, patent infringement, breach of
contract, negligence, strict liability, and product liability
arising out of or relating to Licensed Goods or Licensed Services,
including, without limitation, Spielberg Entity’s or any
Sublicensee’s manufacture, advertisement, promotion,
marketing, offering for sale, sale, or distribution of Licensed
Goods, and Spielberg Entity’s or any Sublicensee’s
advertisement, promotion, marketing, offering for sale, sale, or
rendition of Licensed Services (except where such
claims, demands, causes of action, or suits are based solely upon
Spielberg Entity’s or any Sublicensee’s use of
the
Licensed Marks as
expressly permitted under this License Agreement in the DWA
Registered Territory and within the scope of the DWA Registered
Trademark Rights). DWA agrees that, upon receipt of any
Licensee Claim for which it wishes to receive indemnification
hereunder, it will promptly tender such claim in writing to
Spielberg Entity in the manner set forth in Paragraph 11(a) below,
and Spielberg Entity agrees that it will defend DWA against such
Licensee Claim at Spielberg Entity’s expense and through
counsel of Spielberg Entity’s choosing, provided that DWA may
participate in the defense using counsel of its choice at its own
expense. Spielberg Entity may defend or compromise any
Licensee Claim and agrees to pay any judgment or settlement on any
Licensee Claim, provided that Spielberg Entity will not agree to
any settlement that imposes any material obligations on DWA or
affects any Licensed Marks or DWA’s rights therein without
the approval of DWA, which approval shall not be unreasonably
withheld. Spielberg Entity shall maintain in full force
and effect at all times while this License Agreement is in effect
and for three years thereafter, (1) commercial general liability
insurance, including products and completed operations coverage,
broad form property damage, contractual liability, bodily injury
(including death), and personal and advertising injury liability,
with minimum limits of $1,000,000 each occurrence and $2,000,000 in
the aggregate, and including a waiver of subrogation in favor of
DWA; (2) umbrella excess liability insurance with minimum limits of
$5,000,000 each occurrence and $5,000,000 in the aggregate; and (3)
errors and omissions liability insurance with minimum limits of
$10,000,000 each claim and $10,000,000 in the aggregate, covering
all of Spielberg Entity’s and its subsidiaries’ and
affiliates’ business activities in the field of
entertainment. The general liability and errors and
omissions liability policies shall name as additional insureds DWA
and its parents, subsidiaries, affiliates, successors and assigns
and the directors, officers, employees, agents and representatives
of the foregoing. All coverage shall be primary and
non-contributory, and must be underwritten by a carrier with a
minimum Best’s Guide rating of A-, VII. Spielberg
Entity shall deliver to DWA a certificate of insurance evidencing
satisfactory coverage and indicating that DWA shall receive thirty
(30) days unrestricted prior written notice of cancellation,
non-renewal or any material change in coverage. For
avoidance of doubt, Spielberg Entity will be deemed to have met the
above insurance requirements if it is designated as a named insured
on insurance policies maintained by Holding Company that meet such
requirements. Compliance herewith in no way limits
Spielberg Entity’s indemnity obligations
hereunder.
11.
Miscellaneous
(a) Any
notices required or which may be given hereunder shall be in
writing and shall be delivered personally, or sent by certified
mail, return receipt requested, by facsimile (with confirmation of
receipt), or by e-mail (with confirmation of receipt), to the
addresses set forth above, or such other addresses as may be
designated by the parties from time to time in writing under this
License Agreement. All notices sent to DWA and Spielberg
Entity shall be sent to the attention of the General
Counsel. All notices sent to Spielberg may be sent to
the address for Spielberg Entity. All notices are
effective upon confirmed receipt.
(b) The
parties agree that any dispute to interpret or enforce, or
otherwise arising out of or relating to, this License Agreement
shall be determined by final and binding arbitration before JAMS
according to the then most applicable JAMS Comprehensive
Arbitration Rules and Procedures (“JAMS”), provided
always that: (a) the arbitration shall be conducted
before a single neutral arbitrator with at least ten (10) years
experience in the trademark licensing business, appointed by mutual
agreement of the parties within five (5) business days from the
date the notice of arbitration is delivered by the petitioning
party; (b) the parties shall be entitled to discovery as
provided in California Code of Civil Procedure
sections 1283.05
and 1283.1; (c) in deciding any such matter, the arbitrator
shall follow the substantive law of the State of California or
Federal Law as it would be applied by California courts; (d) the
place of arbitration shall be Los Angeles, California,
(e) nothing in this Paragraph 11(b) shall prevent either from,
without waiving its right to arbitration, seeking preliminary or
interlocutory relief from a court of competent jurisdiction;
(f) all arbitration proceedings (including any discovery and
other evidence in connection therewith) shall be closed to the
public and shall remain confidential; and (g) arbitration
awards hereunder may be entered and enforced as provided in
California Code of Civil Procedure sections 1285 et seq . If
the arbitrator is not selected by mutual consent within five (5)
business days from the date the notice of arbitration is delivered
by the petitioning party, the rules of JAMS with respect to the
selection of an arbitrator shall apply. Notwithstanding
the foregoing, before proceedings are initiated hereunder, the
Parties or their designated representatives shall meet and in good
faith attempt to resolve the dispute. Notwithstanding
the foregoing, any disputes submitted to binding arbitration
pursuant to Paragraph 11(b), above, that affect the timely release
of a motion picture for initial theatrical exhibition shall
commence within seven (7) business days from the date the notice is
delivered by the petitioning party and the arbitrator shall rule
not later than ten (10) business days after the date the notice is
delivered. The hearing shall be conducted by the arbitrator for as
many days as the arbitrator determines to allow; provided ,
that the hearing shall conclude, and the arbitrator shall rule, not
later than ten (10) business days after the date the notice is
delivered.
(c) With
the express written consent of DWA, which consent shall not be
unreasonably withheld, Spielberg Entity may assign this License
Agreement in its entirety only to another entity wholly owned and
controlled by Spielberg and for which Spielberg has, and is able to
exercise, Greenlight Authority with respect to such entity’s
activities related to the production, distribution and financing of
Motion Pictures. Except as expressly set forth in the
previous sentence, neither Spielberg Entity nor Spielberg shall
have any right to assign, sell, transfer, delegate or otherwise
dispose of, whether voluntarily or involuntarily, by operation of
law or otherwise, this License Agreement or any rights or
obligations under this License Agreement without DWA’s
express written consent, which DWA may withhold or deny in its sole
discretion. Except as provided herein, any
purported assignment, transfer, or delegation by Spielberg Entity
or Spielberg shall be null and void. DWA may assign,
sell, transfer, delegate or otherwise dispose of this License
Agreement freely. Subject to the foregoing, this License
Agreement shall be binding upon and shall inure to the benefit of
the parties and their respective successors and permitted
assigns. For avoidance of doubt, nothing in this
Paragraph 11(c) shall prevent Spielberg Entity from granting
Sublicenses as otherwise expressly permitted by this License
Agreement.
(d) Notwithstanding
anything in this License Agreement to the contrary, Spielberg
Entity and Spielberg hereby irrevocably waive any right to seek
and/or obtain equitable and/or injunctive relief related to
DWA’s or any of its affiliates’ production,
distribution, license and/or other exploitation of any Motion
Picture and/or other production, content, material, goods or
services; and Spielberg Entity’s and Spielberg’s sole
and exclusive remedy in connection therewith shall be an action for
damages. The foregoing shall not prevent Spielberg
Entity from seeking injunctive relief against any sublicensee of
DWA to whom DWA has granted a license to use the Licensed Marks in
connection with non-family oriented Live-Action Motion Pictures in
violation of the exclusivity granted to Spielberg Entity in this
License Agreement.
(e) This
License Agreement shall be governed by, and construed in accordance
with, the laws of the State of California applicable to contracts
made and to be performed therein and without regard to its
conflicts of laws rules that would result in the application of the
laws of another jurisdiction.
(f) This
License Agreement, together with the Schedules thereto, constitutes
the entire agreement between DWA, Spielberg Entity and Spielberg
with respect to its subject matter, and supersedes any prior
agreement, understanding, representation, promise, or negotiations
between the parties, whether oral or written, express or
implied.
(g) If
any provision of this License Agreement is found to be
unenforceable, the remainder shall be enforced as fully as possible
and the unenforceable provision shall be deemed modified to the
limited extent required to permit its enforcement in a manner most
closely approximating the intention of the parties as expressed
herein.
(h) DWA,
Spielberg Entity and Spielberg are not, and shall not be considered
to be, joint venturers, partners, agents or employees of each
other, and no party shall have the power to bind or obligate any
other party except as specifically set forth in this License
Agreement. Except as expressly set forth herein or
otherwise agreed to in writing by the parties, there shall be no
liability on the part of one party hereto for any debts incurred by
any other party.
(i) The
subject headings of this License Agreement are included for
purposes of convenience only, and shall not affect the construction
or interpretation of any of its provisions.
(j) The
waiver by any party of a breach of or a default under any provision
of this License Agreement shall not be effective unless in writing
and shall not be construed as a waiver of any subsequent breach of
or default under the same or any other provision of this License
Agreement, nor shall any delay or omission on the part of any party
to exercise or avail itself of any right or remedy that it has or
may have hereunder operate as a waiver of any right or
remedy.
(k) This
License Agreement is made and entered into for the sole protection
and benefit of the parties hereto and is not intended to convey any
rights or benefits to any third party, nor will this License
Agreement be interpreted to convey any rights or benefits to any
person or entity except the parties hereto.
[SIGNATURES ON NEXT
PAGE]
WHEREFORE, the parties have
executed this License Agreement as of the Effective Date by the
signature below of their duly-authorized
representatives.
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DW II
MANAGEMENT, INC.
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DREAMWORKS
ANIMATION LLC
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By:
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By:
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Name:
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Name:
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Position:
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Position:
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STEVEN
SPIELBERG
(with respect
to Paragraph 2(h) (Spielberg Exclusivity)
and the applicable provisions of Paragraph 11
(Miscellaneous) only)
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