Exhibit 10.10
LICENSE AGREEMENT
THIS LICENSE AGREEMENT
(“Agreement”) is made as of the 26th day of February,
2003 (“Effective Date”) by and between AMERICAN BIRDING
ASSOCIATION, INC., a corporation organized under the laws of the
State of Texas, having offices at 720 West Monument Street,
Colorado Springs, Colorado 80904 (hereinafter referred to as
“ABA”), and THANKSGIVING COFFEE COMPANY, a corporation
organized under the laws of the State of California, having an
address of Post Office Box 1918 Fort Bragg, California 95437
(hereinafter referred to as “TCC”).
WHEREAS, ABA is a not-for-profit
corporation which promotes recreational bird watching and awareness
of environmental issues concerning birds; and
WHEREAS, TCC is engaged in the sale
and distribution of coffee and coffee-related products;
and
WHEREAS, ABA is the owner of the
following trademarks registered with the United States Patent and
Trademark Office, SONG BIRD (Reg. No. 2,399,506), AMERICAN BIRDING
ASSOCIATION and Design (Reg. No. 2,026,292), and AMERICAN BIRDING
ASSOCIATION (Reg. No. 2,071,212) as well as the following
unregistered trademarks, AMERICAN BIRDING ASSOCIATION and Design,
BIRDERS’ EXCHANGE and BIRDERS’ EXCHANGE and Design and
all rights associated therewith; and
WHEREAS, ABA is the licensee under
certain license agreements with Terry O’Nele and John Sill
with rights to reproduce and distribute copies of, to prepare
derivative works and to publicly display the following watercolor
paintings, in whole or in part, and to sublicense and authorize
others to do all of the foregoing:
|
|
1.
|
“Black-throated Green
Warbler”
|
|
|
6.
|
“Magnolia
Warbler” and
|
(hereinafter referred to collectively as
“the Works”); and
WHEREAS, ABA and TCC desire to
promote the use of shade grown coffee to preserve and protect bird
habitat; and
WHEREAS, TCC desires to license the
use of certain of ABA’s trademarks in connection with the
sale and distribution of TCC’s shade grown coffee.
NOW, THEREFORE, for and in
consideration of the mutual covenants and promises therein and
hereinafter contained and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:
1. Grant of License.
1.1 During the term of this Agreement and
subject to ABA’s rights, ABA hereby grants to TCC, and TCC
accepts, an exclusive, worldwide, non-indemnified, royalty-bearing,
limited term license to use the SONG BIRD trademark in accordance
with the terms and conditions of this Agreement and only for the
production, sale, advertising and promotion of shade grown coffee
(hereinafter referred to as “Licensed Product”) on the
Licensed Product and on packaging, advertising and written
promotional materials used or distributed in connection with the
Licensed Product, subject to the provisions of Sections 5 and
7.
1.2 In addition during the term of this
Agreement and subject to ABA’s rights, ABA hereby grants to
TCC, and TCC accepts, a non-exclusive, worldwide, non-indemnified,
royalty-free, limited term license to use the AMERICAN BIRDING
ASSOCIATION, AMERICAN BIRDING ASSOCIATION and Designs,
BIRDERS’ EXCHANGE, and BIRDERS’ EXCHANGE and Design
trademarks in accordance with the terms and conditions of this
Agreement and only for the production, sale, advertising and
promotion of the Licensed Product in conjunction with the SONG BIRD
trademark on the Licensed Product and on packaging, advertising and
written promotional materials used or distributed in connection
with the Licensed Product, subject to the provisions of Sections 5
and 7.
1.3 In addition during the term of this
Agreement and subject to ABA’s rights, ABA hereby grants to
TCC, and TCC accepts, a non-exclusive, worldwide, non-indemnified,
royalty-bearing, limited term sublicense to reproduce and
distribute copies of, to prepare derivative works and to publicly
display the Works, in whole or in part, only for the production,
sale, advertising and promotion of the Licensed Product in
accordance with the terms and conditions of this Agreement and only
for the production, sale, advertising and promotion of the Licensed
Product in conjunction with the SONG BIRD trademark on the Licensed
Product and on packaging, advertising and written promotional
materials used or distributed in connection with the Licensed
Product, subject to the provisions of Sections 5 and 7.
1.4 The term of the license shall be for five
(5) years commencing on the Effective Date, unless terminated
earlier in accordance with the provisions of Section 11 below. TCC
shall have the right to affix the SONG BIRD, AMERICAN BIRDING
ASSOCIATION, AMERICAN BIRDING ASSOCIATION and Designs,
BIRDERS’ EXCHANGE, and BIRDERS’ EXCHANGE and Design
trademarks (hereinafter referred to as “Licensed
Marks”) on or to the Licensed Product and on packaging,
advertising and written promotional materials used or distributed
in connection with the Licensed Product in accordance with the
terms and conditions of this Agreement.
1.5 No other right, title, or license is granted
hereunder, ABA retains all right, title and interest to the
Licensed Marks and any goodwill associated therewith as well as its
license rights to the Works.
2. ABA’S Representations, Membership
Mailing List and Credits.
2.1 ABA warrants and represents that ABA has the
right to grant to TCC all of the rights conveyed under this
Agreement. TCC shall have no right, license or permissions except
as herein expressly granted. All rights not specifically
transferred by this Agreement are reserved to ABA
2
2.2 From time to time, but no less then twice
per year, during the term of this Agreement, ABA agrees to make
available to TCC, at ABA’s expense, ABA’s then current
membership mailing list for certain circumscribed activities aimed
at increasing the market for the Licensed Product. In each instance
ABA’s membership list shall be made available to TCC upon the
mutual agreement of the parties for a one time use with respect to
promoting the Licensed Product only, so long as this Agreement
remains in full force and effect.
2.3. TCC shall identify ABA as the owner of the
Licensed Marks and shall also place the web site address
[www.americanbirding.org/Thanksgiving] on all packaging as such
packaging is reprinted and in all publicity for the Licensed
Product. This page shall explain the links between Song Bird Coffee
and Birders’ Exchange. The Licensed Marks shall not be
conjoined with any third party’s name without ABA’s
prior express written permission.
3. Royalties and Statements of
Account.
3.1 TCC agrees to pay ABA a nonrefundable
royalty on all sales of the Licensed Product of Fifteen Cents
($0.15) per pound (16 ounces) of Licensed Product sold. On sale of
Licensed Product in packages of less than one pound (16 ounces),
TCC shall pay a nonrefundable royalty of Fifteen Cents ($0.15) per
package (“Unit”). No cost incurred in the manufacture,
sale, distribution, promotion or exploitation of the Licensed
Product shall be deducted from any royalties due to ABA, with TCC
to have the obligation and responsibility for all such costs.
Royalties shall be deemed to accrue when TCC receives payment for
the Licensed Product.
3.2 TCC shall furnish to ABA statements of
royalties due for the periods ending December 31, March 31, June
30, and September 30 within thirty (30) days after each respective
date. Within such thirty day period TCC shall pay ABA the amounts
shown to be due on the statements. Each statement shall itemize the
total number of Licensed Product identified by specific type of
coffee used in connection therewith, and the total number of pounds
and Units of Licensed Product sold by TCC during the quarter, and
the total royalty due ABA for the period. In addition, TCC will
provide ABA, within fifty (50) days after the end of each calendar
year, a compliance certificate duly executed by one of TCC’s
officers certifying that TCC paid to ABA all royalties due during
the just concluded year. ABA will provide TCC, within fifty (50)
days after the end of each calendar year, a certificate duly
executed by one of ABA’s officers certifying the royalties
paid by TCC to ABA during the just concluded year.
3.3. If ABA has not received the royalty payment
as required by the foregoing Section 3.2 within thirty (30) days
following the end of each calendar quarter, a monthly service
charge of one-half percent (0.5%) shall accrue thereon and become
due and owing from the date on which such royalty payment became
due and owing.
4. Books and Records.
4.1 TCC agrees to keep complete and accurate
books and records relating to the sale and other distribution of
the Licensed Product and Related Licensed Products sold by TCC. TCC
will preserve such books and records for at least five (5) years
after the date of the royalty payment to which they apply. Such
books and records will be open for inspection by representatives or
agents of ABA at all reasonable times, with reasonable notice
given. ABA will
3
pay the costs incurred by its representatives or
agents to examine TCC’s books and records. However, if there
is an error adverse to ABA in TCC’s royalty accounting of
more than five percent (5%) of the total royalties due for any
year, then TCC will pay ABA within ten (10) days the costs incurred
by ABA for such examination. TCC shall also pay ABA within ten (10)
days the amount necessary to correct any error.
5. Quality of Licensed Product, Approval and
Advertising.
5.1. TCC agrees that the Licensed Product shall
be of the highest standard and quality and of such style and
appearance as to be best suited to their exploitation to the best
advantage and to the protection and enhancement of the Licensed
Product and the goodwill pertaining thereto. The Licensed Product
shall be manufactured, sold and distributed in accordance with all
applicable national, state and local laws. TCC agrees to include an
ABA membership application form provided by ABA in each shipment of
the Licensed Product by TCC.
5.2. In order to insure that the development,
manufacture, appearance, quality and distribution of the Licensed
Product is consonant with ABA’s good will associated with its
reputation, copyrights and trademarks, ABA shall have the right to
approve in advance the quality of the Licensed Product and all
packaging and literature for the Licensed Product.
5.3. TCC shall be responsible for delivering all
items requiring prior approval pursuant to Section 5.2. without
cost of ABA. ABA agrees not to withhold approval
unreasonably.
5.4 TCC shall not release or distribute the
Licensed Product without securing each of the prior approvals
provided for in Section 5.2. TCC shall not depart from any approval
secured in accordance with Section 5.2. without ABA’s prior
written consent.
6. Exclusive and Nonexclusive
Rights.
6.1 During the term of this Agreement, TCC shall
not develop, promote, distribute or sell another brand of coffee in
conjunction with any other birding organization.
6.2 Nothing in this Agreement shall be construed
to prevent ABA from granting other licenses for the use of the
Licensed Marks and/or Works, or from utilizing the Licensed Marks
and