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CONFIDENTIAL
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Exhibit 10.1
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CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE
BEEN SEPARATELY FILED WITH THE COMMISSION
Execution Copy
Agreement
This
Agreement (the “ Agreement ”) is entered into as
of April 28, 2008 (the “ Effective
Date ”) by and between TurboChef Technologies, Inc., a
Delaware corporation (the “ Licensee ”), and
Martha Stewart Living Omnimedia, Inc., a Delaware corporation (the
“ Licensor ” and, together with Licensee, each a
“ Party ” and together the “
Parties ”).
WHEREAS
Licensee manufactures, procures, distributes and sells high-quality
residential wall speed cook ovens under Licensee’s
“TurboChef®” brand (such products offered for sale
during the Term (as defined below), the “ Products
”); provided that Products shall not include any (i) ovens
that may be used as countertop or portable appliances or (ii) ovens
intended primarily for commercial use (e.g., in restaurants or
other food service establishments);
WHEREAS
Martha Stewart (“ Stewart ”), Licensor’s
founder and an employee of Licensor, is renowned for her “how
to” skills and expertise in the area of cooking, among other
specialties;
WHEREAS Stewart is a well
known person who is the host of the television show The Martha
Stewart Show, which currently is broadcast on first-run,
syndicated television in the United States;
WHEREAS Emeril Lagasse, III
(“ Lagasse ”), an employee of Licensor, is a
renowned chef who currently operates a number of restaurants and
who is host of certain television programs that currently may be
viewed on cable television in the United States (each of Stewart
and Lagasse are sometimes referred to herein as a “
Celebrity ” and collectively as the “
Celebrities ”); and
WHEREAS Licensee wishes to
license from Licensor the right to use the name and likeness of
Stewart and Lagasse on and in connection with the promotion of
Products, and to obtain certain services of Stewart, Lagasse and
Licensor to promote such Products, all in accordance with this
Agreement;
NOW,
THEREFORE, the Parties agree as follows:
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Grant of
Stewart Publicity Rights : Subject to the terms and conditions
set forth in this Agreement (including Licensor’s approval
rights set forth in Section 3.2), Licensor hereby grants to
Licensee the right and license to use Stewart’s name,
likeness, voice (and, as may be approved by Licensor, other
personal attributes of Stewart) (collectively, “
Stewart’s Image ”) during the Term (as defined
below) solely in connection with the packaging, distribution, sale,
advertisement and promotion of Products throughout the United
States and Canada (the “ Territory ”); provided,
however, that such license is limited to use of Stewart’s
Image solely in connection with the reproduction, performance and
display of (a) the Integrations (as defined below) or excerpts
thereof as may be permitted by Section 3.1.3, (b) the Stewart
Dinner Party Materials (as defined below) as may be permitted by
Section 2.3.2 and (c) the Stewart Demo Film (as defined below) as
may be permitted by Section 2.4.1. Products which are
sold or marketed using Stewart’s Image and/or Lagasse’s
Image (as defined below) under this Agreement are referred to
herein as “ Covered Products .” Any
use of Stewart’s Image in a manner not expressly permitted
under this Agreement shall be deemed a material breach of this
Agreement. Licensor reserves all rights in
Stewart’s Image not expressly granted in this
Agreement.
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Grant of
Lagasse Publicity Rights : Subject to the terms and conditions
set forth in this Agreement (including Licensor’s approval
rights set forth in Section 3.2), Licensor hereby grants to
Licensee the right and license to use Lagasse’s name,
likeness, voice (and, as may be approved by Licensor, other
personal attributes of Lagasse) (collectively, “
Lagasse’s Image ”) during the Term solely in
connection with the packaging, distribution, sale, advertisement
and promotion of Products throughout the Territory. Any
use of Lagasse’s Image in a manner not expressly permitted
under this Agreement shall be deemed a material breach of this
Agreement. Licensor reserves all rights in
Lagasse’s Image not expressly granted in this
Agreement.
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On The
Martha Stewart Show : From time to time during the Term
as Licensor deems editorially appropriate, Licensor will air on
The Martha Stewart Show or any successor television
show hosted by Stewart (the “ Stewart TV Show ”)
a number of integrations of Covered Products, including cooking
demonstrations that feature Covered Products (“
Integrations ”). Licensor shall exercise
commercially reasonable efforts to: (a) create
circumstances so that Integrations would be editorially appropriate
for the Stewart TV Show [CONFIDENTIAL MATERIAL REDACTED AND FILED
SEPARATELY WITH THE COMMISSION] times each period of twelve (12)
months during the Term (the parties acknowledge that the Stewart TV
Show is expected to be in production less than nine (9) months
during any twelve (12) month period); (b) provide Licensee with as
much possible advance notice of any planned Integrations during the
Term (provided, however, that Licensee acknowledges and agrees that
such Integrations may be planned on the day of production and that
it may not be possible to give Licensee advance notice in such
circumstances); (c) permit one (1) representative of Licensee to
have access to the Stewart TV Show studio while any Integration is
being performed, space permitting (provided, however, that Licensee
acknowledges and agrees that such representative will have no right
to appear on-screen or to affect in any manner the content of the
Integration, with respect to which Licensor and Stewart shall have
absolute discretion). The manner, number, duration and
content of such Integrations will be determined by Licensor in its
sole discretion, in consultation with
Licensee. Licensor will permit Licensee to supply
and install, and Licensee shall supply and install, at
Licensee’s sole expense, at the location on the set of the
Stewart TV Show as specified by Licensor (which location may
include the on-camera preparation kitchen, the
“homebase” demonstration kitchen or such other area of
the set as specified by Licensor), a Covered Product as specified
by Licensor for use in such
Integrations. Notwithstanding anything in this Agreement
to the contrary, Licensee acknowledges and agrees that Licensor in
its sole discretion may cease the production of the Stewart TV Show
at any time during the Term and that this Section 2.1 shall apply
only during periods in which the Stewart TV Show may be in
production.
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The Emeril
Green Show : Licensor shall request the producer
of the Emeril Green television show or any successor
television show hosted by Lagasse (the “ Lagasse TV
Show ”) to permit the installation of a Covered Product
on the set of the Lagasse TV Show. If such approval is
obtained, Licensor will permit Licensee to supply and install, and
Licensee shall supply and install, at Licensee’s sole
expense, at the location on the set of the Lagasse TV Show as
specified by Licensor and approved by the producer, a Covered
Product as specified by Licensor for use in connection with the
Lagasse TV Show. Licensee acknowledges and agrees that
the producer of the Lagasse TV Show, and not Licensor, has the
discretion to allow the installation of a Covered Product on the
set of the Lagasse TV Show and the failure of such an installation
to occur shall not constitute a breach of this
Agreement. Notwithstanding anything in this Agreement to
the contrary, Licensee acknowledges and agrees that Licensor in its
sole discretion may cease the production of the Lagasse TV Show at
any time during the Term and that this Section 2.2 shall apply only
during periods in which the Lagasse TV Show may be in
production. Licensor agrees that if it is unable to
obtain permission from the producer of the Lagasse TV Show to
install a Covered Product on the set of the Lagasse TV Show, then,
if Lagasse hosts another television show during the Term, such
other television show shall be included within the definition of
“ Lagasse TV Show .”
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Licensee may request that Stewart make up to three (3) personal
appearances per Agreement Year (as defined below), either in-person
or via satellite or prerecorded film, at designated Licensee events
(“ Licensee Stewart Events ”) in the Territory,
which events Licensee may photograph and videotape for the purpose
of creating an advertising campaign for Covered
Products. Licensee’s use of any photographs, film
or other results of the events containing Stewart’s Image is
subject in all respects to Section 3.2. Each request by
Licensee pursuant to Section 2.3.1 must be made in writing at least
three (3) months prior to the date of the requested appearance and
shall describe in detail the timing, place, purpose, type and size
of the Licensee Stewart Event and the nature of the appearance by
Stewart that Licensee is requesting (e.g., whether Licensee wishes
Stewart to speak publicly). Stewart, if reasonably
permitted by her schedule, will make such requested
appearances, provided that such appearances do not conflict with a
prior commitment made by Stewart that she cannot reasonably
change. Any appearance by Stewart at any Licensee
Stewart Event shall not be required to exceed three (3) hours in
duration in the aggregate, measured from the start of such
appearance until the end of such appearance, unless Stewart
otherwise agrees in her sole discretion. Notwithstanding the
foregoing, in no event will Stewart’s declining to appear at
a Licensee Stewart Event, or Stewart’s failure to appear at a
Licensee Stewart Event at which she agreed to appear because of
circumstances beyond her reasonable control, constitute a breach of
this Agreement.
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In
addition to the appearances that may be requested pursuant to
Section 2.3.1, Licensee may request that Stewart attend up to two
(2) dinner parties (“ Licensee Stewart Dinner Parties
”) per Agreement Year hosted by Licensee in the
Territory, including at least one (1) at Stewart’s
primary residence (which, as of the Effective Date, is for purposes
of this Agreement only, is deemed to be in Bedford, New York;
provided that Stewart may change her primary residence at her sole
discretion), which events Licensee may photograph and videotape for
the purpose of creating an advertising campaign for Covered
Products around the theme “dinner party with TurboChef”
or such other theme as the Parties may agree upon in writing (any
still or moving images or audio recordings from the Licensee
Stewart Dinner Parties shall be referred to herein as the “
Stewart Dinner Party Materials ”). Licensee
shall be responsible for, and shall bear all costs and expenses
associated with, hosting, photographing and filming such Licensee
Stewart Dinner Parties and obtaining all rights required for use of
the resulting photographs and film. Licensee’s use
of any photographs, film or other results of the events containing
Stewart’s Image is subject in all respects to Section
3.2. Each request by Licensee pursuant to Section 2.3.2
must be made in writing at least three (3) months prior to the date
of the requested appearance and shall describe in detail the
timing, place and size of the Licensee Stewart Dinner Party and the
list of intended invitees (each person of which shall be subject to
Licensor’s prior approval). Stewart, if reasonably
permitted by her schedule, will attend such Licensee Stewart
Dinner Parties, provided that such Licensee Stewart Dinner Parties
do not conflict with a prior commitment made by Stewart that she
cannot reasonably change. Any personal appearance by Stewart at any
Licensee Stewart Dinner Party shall not be required to exceed three
(3) hours in duration in the aggregate, measured from the start of
such appearance until the end of such appearance, unless Stewart
otherwise agrees in her sole discretion. Notwithstanding the
foregoing, in no event will Stewart’s declining to appear at
a Licensee Stewart Dinner Party, or Stewart’s failure to
appear at a Licensee Stewart Dinner Party at which she agreed to
appear because of circumstances beyond her reasonable control,
constitute a breach of this Agreement.
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Licensee will reimburse Licensor for Stewart’s travel, meal,
lodging, security and related expenses reasonably incurred in
connection with Stewart’s appearance at any Licensee Stewart
Event or Licensee Stewart Dinner Party, including the cost of
Stewart’s private plane travel to and from such Licensee
Stewart Event or Licensee Stewart Dinner Party, first-class hotel
accommodations and first-class ground transportation to and from
airports and between the hotel and the site of such Licensee
Stewart Event or Licensee Stewart Dinner Party; it being understood
that such costs also shall include the costs of security and other
personnel who travel with Stewart in the ordinary
course. To the extent that Licensor and Licensee have
agreed in writing prior to the incurrence of the expenses, Licensee
also will reimburse Licensor for the specifically agreed upon
travel and related expenses incurred by additional staff that
travel with Stewart for the Licensee Stewart Event or Licensee
Stewart Dinner Party. If Stewart’s appearance is
via satellite or prerecorded film in lieu of a personal appearance,
Licensee will reimburse Licensor for all reasonable expenses
incurred by Licensor in connection with such appearance, including
any and all costs associated with Creative Services (as defined
below) hereunder. Licensee will reimburse Licensor for
all such expenses within ten (10) days after receipt of
Licensor’s written invoice documenting such
expenses.
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Licensee may request that Lagasse make up to three (3) personal
appearances per Agreement Year, either in-person or via satellite
or prerecorded film, at designated Licensee events (“
Licensee Lagasse Events ”) in the
Territory, which events Licensee may photograph and videotape
for the purpose of creating an advertising campaign for Covered
Products. Licensee’s use of any photographs, film
or other results of the events containing Lagasse’s Image is
subject in all respects to Section 3.2. Each request by
Licensee pursuant to Section 2.3.4 must be made in writing at least
three (3) months prior to the date of the requested appearance and
shall describe in detail the timing, place, purpose, type and size
of the Licensee Lagasse Event and the nature of the appearance by
Lagasse that Licensee is requesting (e.g., whether Licensee wishes
Lagasse to speak publicly). Lagasse, if reasonably
permitted by his schedule, will make such requested appearances,
provided that such appearances do not conflict with a prior
commitment made by Lagasse that he cannot reasonably
change. Any appearance by Lagasse at any Licensee
Lagasse Event shall not be required to exceed three (3) hours in
duration in the aggregate, measured from the start of such
appearance until the end of such appearance, unless Lagasse
otherwise agrees in his sole discretion. Notwithstanding the
foregoing, in no event will Lagasse’s declining to appear at
a Licensee Lagasse Event, or Lagasse’s failure to appear at a
Licensee Lagasse Event at which he agreed to appear because of
circumstances beyond his reasonable control, constitute a breach of
this Agreement.
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In
addition to the appearances that may be requested pursuant to
Section 2.3.4, Licensee may request that Lagasse attend up to two
(2) dinner parties (“ Licensee Lagasse Dinner Parties
”) per Agreement Year hosted by Licensee in the Territory,
which events Licensee may photograph and videotape for the purpose
of creating an advertising campaign for Covered Products around the
theme “dinner party with TurboChef” or such other theme
as the Parties may agree upon in writing (any still or moving
images or audio recordings from the Licensee Lagasse Dinner Parties
shall be referred to herein as the “ Lagasse Dinner Party
Materials ”). Licensee shall be responsible
for, and shall bear all costs and expenses associated with,
hosting, photographing and filming such Licensee Lagasse Dinner
Parties and obtaining all rights required for use of the resulting
photographs and film. Licensee’s use of any
photographs, film or other results of the events containing
Lagasse’s Image is subject in all respects to Section
3.2. Each request by Licensee pursuant to Section 2.3.5
must be made in writing at least three (3) months prior to the date
of the requested appearance and shall describe in detail the
timing, place and size of the Licensee Lagasse Dinner Party and the
list of intended invitees (each person of which shall be subject to
Licensor’s prior approval). Lagasse, if reasonably
permitted by his schedule, will attend such Licensee Lagasse Dinner
Parties, provided that such Licensee Lagasse Dinner Parties do not
conflict with a prior commitment made by Lagasse that he cannot
reasonably change. Any personal appearance by Lagasse at any
Licensee Lagasse Dinner Party shall not be required to exceed three
(3) hours in duration in the aggregate, measured from the start of
such appearance until the end of such appearance, unless Lagasse
otherwise agrees in his sole discretion. Notwithstanding the
foregoing, in no event will Lagasse’s declining to appear at
a Licensee Lagasse Dinner Party, or Lagasse’s failure to
appear at a Licensee Lagasse Dinner Party at which he agreed to
appear because of circumstances beyond his reasonable control,
constitute a breach of this Agreement.
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Licensee will reimburse Licensor for Lagasse’s travel, meal,
lodging, security and related expenses reasonably incurred in
connection with Lagasse’s appearance at any Licensee Lagasse
Event or Licensee Lagasse Dinner Party, including the cost of
Lagasse’s private plane travel to and from such Licensee
Lagasse Event or Licensee Lagasse Dinner Party, first-class hotel
accommodations and first-class ground transportation to and from
airports and between the hotel and the site of such Licensee
Lagasse Event or Licensee Lagasse Dinner Party; it being understood
that such costs also shall include the costs of security and other
personnel who travel with Lagasse in the ordinary
course. To the extent that Licensor and Licensee have
agreed in writing prior to the incurrence of the expenses, Licensee
also will reimburse Licensor for the specifically agreed upon
travel and related expenses incurred by additional staff that
travel with Lagasse for the Licensee Lagasse Event or Licensee
Lagasse Dinner Party. If Lagasse’s appearance is
via satellite or prerecorded film in lieu of a personal appearance,
Licensee will reimburse Licensor for all reasonable expenses
incurred by Licensor in connection with such appearance, including
any and all costs associated with Creative Services
hereunder. Licensee will reimburse Licensor for all such
expenses within ten (10) days after receipt of Licensor’s
written invoice documenting such expenses.
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Filmed
Cooking Demonstrations :
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Stewart will participate as host in a filmed cooking demonstration
featuring Covered Products to be produced by Licensee at
Licensee’s sole cost and expense (the “ Stewart Demo
Film ”), which film may be displayed solely on
Licensee’s website www.turbochef.com and/or microsite
www.theovenreinvented.com or any other website
operated by Licensee that is exclusively devoted to the promotion
and sale of Licensee products and/or information about Licensee and
its products (“ Licensee Sites ,” which, for
avoidance of doubt, shall exclude any websites that (i) are
operated by third parties or (ii) operated by Licensee that promote
or offer for sale products other than those of Licensee and/or
provide information about entities other than Licensee or products
or services of such entities except branded or non-branded
consumable supplies and accessories related to Licensee’s
products), and solely during the Term. The Stewart Demo
Film will be not more than thirty (30) minutes in
length. Production will be conducted at a time and place
acceptable to Stewart in light of Stewart’s schedule and
prior commitments, and in no event will Stewart be required to be
available more than one (1) day and for longer than seven (7)
hours on such day. The Stewart Demo Film
and Licensee’s use of it are subject in all respects to
Licensor’s prior approval in accordance with Section
3.2. Without limiting the foregoing, Licensor must
approve the script of the Stewart Demo Film and the aspects of its
physical production (including the selection of the director and
director of photography thereof, and the lighting thereof); shall
be entitled to select a hair and make-up provider of
Licensor’s choosing (the costs of which shall be borne by
Licensee); must approve the presence and identity of any
photographer whom Licensee may wish to invite on-set; and must
approve the use of any images of Stewart taken by any such
photographer. No rights shall be given to use
Stewart’s Image on any out-takes, b-roll or similar footage
except to the extent that Licensor, in its sole and absolute
discretion, grants any such rights in writing.
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Lagasse will participate as host in a filmed cooking demonstration
featuring Covered Products to be produced by Licensee at
Licensee’s sole cost and expense (the “
Lagasse Demo Film ”), which film may be displayed
solely on Licensee Sites and solely during the
Term. The Lagasse Demo Film will be not more than thirty
(30) minutes in length. Production will be
conducted at a time and place acceptable to Lagasse in light of
Lagasse’s schedule and prior commitments, and in no event
will Lagasse be required to be available more than one (1) day and
for longer than seven (7) hours on such
day. The Lagasse Demo Film and Licensee’s use of
it are subject in all respects to Licensor’s prior approval
in accordance with Section 3.2. Without limiting the
foregoing, Licensor must approve the script of the Lagasse Demo
Film and the aspects of its physical production (including the
selection of the director and director of photography thereof, and
the lighting thereof); shall be entitled to select a hair and
make-up provider of Licensor’s choosing (the costs of which
shall be borne by Licensee); must approve the presence and identity
of any photographer whom Licensee may wish to invite on-set; and
must approve the use of any images of Lagasse taken by any such
photographer. No rights shall be given to use
Lagasse’s Image on any out-takes, b-roll or similar footage
except to the extent that Licensor, in its sole and absolute
discretion, grants any such rights in writing.
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Links and
Features on Licensor Site :
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During the Term, Licensor shall maintain, at a location on
Licensor’s websites www.marthastewart.com
and www.emerils.com (the “ Licensor
Sites ”) as determined by Licensor in its sole
discretion, a hyperlink (the “ Hyperlink ”) to
any of Licensee Sites as Licensee may notify Licensor in
writing. The Hyperlink will be accessible if an end user
of a Licensor Site clicks on certain visual materials (the size and
content of which visual materials shall be determined by Licensor
in its sole discretion, provided that Licensor shall consult with
Licensee as to such matters) displayed on the Licensor Sites
pursuant to the first sentence of this Section 2.5.1; and provided
further that the Hyperlink shall be accessible within three (3)
mouse clicks of the primary home page of each respective Licensor
Site.
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During the Term, to the extent that any Licensor Site has a
“Shop” section, and such “Shop” section has
a page (a “ From the Show Shop Page ”)
accessible from a link named “From the Show” or a name
substantially similar thereto (as the Effective Date, the Licensor
Site www.marthastewart.com contains a From the Show Shop
Link), Licensor shall maintain a hyperlink to any of Licensee Sites
as Licensee may notify Licensor in writing, which hyperlink will be
accessible if an end user of a Licensor Site clicks on certain
visual materials (the size and content of which visual materials
shall be determined by Licensor in its sole discretion, provided
that Licensor shall consult with Licensee as to such matters)
displayed on the Licensor Sites pursuant to this Section
2.5.2. Notwithstanding anything in this Agreement to the
contrary, Licensor shall retain sole and absolute discretion over
all matters related to the design, structure and “look and
feel” of the Licensor Sites and may determine no longer to
display a From the Show Shop Page. The failure to
maintain a From the Show Shop Page shall not constitute a breach of
this Agreement.
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At
Licensee’s request but in no event more often than
[CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE
COMMISSION] times per Agreement Year, and subject to applicable
privacy and other laws, rules, regulations and guidelines
(including opt-in or opt-out limitations), Licensor will provide
Licensee, at Licensee’s expense, on a blind basis through a
bonded agency acceptable to Licensor, with access to its file of
active subscribers of Martha Stewart Living magazine
(“ MSL ”) who have affirmatively opted to
receive third-party messages, for use to send one (1) written
communication (whether in print or via electronic mail) solely
promoting Covered Products, provided that Licensor shall have prior
approval over the content and “look and feel” of any
such communication sent by Licensee to such subscribers; and
provided further that Licensee shall ensure that the sending of
such communication shall comply (and represents and warrants that
it will comply) with all applicable rules and regulations,
including without limitation the CAN-SPAM Act.
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In
addition to Licensee’s rights set forth in Section 2.6.1, at
Licensee’s request but in no event more often than
[CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE
COMMISSION] times per Agreement Year, and subject to applicable
privacy and other laws, rules, regulations and guidelines
(including opt-in or opt-out limitations), Licensor will at its
election either (i) provide Licensee, at Licensee’s expense,
on a blind basis through a bonded agency acceptable to Licensor,
with access to its file of active subscribers of MSL who have
affirmatively opted to receive third-party electronic mail
messages, for use to send one (1) written communication via
electronic mail, solely promoting Covered Products or (ii) on
behalf of Licensee, send to Licensor’s file of active
subscribers of MSL who have affirmatively opted to receive
third-party electronic mail messages, one (1) written communication
via electronic mail, solely promoting Covered Products; provided
that Licensor shall have prior approval over the content and
“look and feel” of any such communication sent by
Licensee to such subscribers; and provided further that, except
with respect to actions of Licensor and Licensor’s agents,
Licensee shall ensure that the sending of such communication shall
comply (and represents and warrants that it will comply) with all
applicable rules and regulations, including without limitation the
CAN-SPAM Act.
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Ad Hoc
Promotions : Stewart may, at Stewart’s
sole discretion, promote Covered Products in other public forums,
such as during appearances on Martha Stewart Living Radio
. Lagasse may, at Lagasse’s sole discretion,
promote Covered Products in other public forums.
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Press
Day : The
Parties shall work together to host a “press day” event
at the set of the Stewart TV Show or other venue on
which the Parties may agree, at which Stewart shall announce the
fact that the Parties have entered into this Agreement to promote
the Products (provided that the financial terms of this Agreement
shall not be disclosed at such “press day” event
without the consent of each Party, which may be withheld in its
sole discretion). Lagasse, if reasonably permitted by
his schedule, shall attend such “press day”
event. The Parties shall work together to identify the
list of persons to be invited to attend such “press
day” event. The date of such “press
day” event shall be subject to Licensor’s approval and
shall be chosen to accommodate Stewart’s
schedule. In the event that the “press day”
announcement is made on the Stewart TV Show (which Licensor shall
not be under any obligation to cause to happen), such announcement
shall be deemed to be an Integration.
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Recipe
Booklet : Licensor shall use commercially
reasonable efforts to obtain permission from Crown
Publishing Group, a division of Random House, Inc. (“
RH ”) to allow Licensor to develop recipes based upon
use of the Covered Products (“ Covered Product Recipes
”) and to permit such Covered Product Recipes to be published
in a booklet that would be distributed as referenced below, subject
to RH’s written consent. Licensee acknowledges and
agrees that RH may refuse to grant such permission and that such
refusal shall not constitute a breach of this
Agreement. In the event that such permission is obtained
from RH, (a) Licensor shall use commercially reasonable efforts to
develop within six (6) months of the date such permission is
obtained, fifty (50) Covered Product Recipes to be promoted as
being authored by Stewart and fifty (50) Covered Product Recipes to
be promoted as being authored by Lagasse and (b) subject to Section
3.2, Licensee may create a booklet in print form containing the
Covered Product Recipes (the “ Booklet ”) that
may be packaged with the Covered Products and/or distributed
without charge by Licensee or retailers of Licensee products to
purchasers of Covered Products or to targeted prospective
purchasers of Covered Products; provided that the Booklet may not
contain any advertisements or promote any goods or services (other
than the Covered Products); and provided further that under no
circumstances may the Booklet be sold separately from a Covered
Product.
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As used in this Agreement, any
obligation of Licensor to use “commercially reasonable
efforts” shall under no circumstances be interpreted to
require Licensor, Stewart, Lagasse or any of their respective
affiliates to (a) pay any consideration to any party or (b) waive
or refrain from exercising any right or (c) alter, modify or amend,
in any manner that Licensor deems unfavorable, the terms of any
contract to which Licensor, Stewart, Lagasse or any of their
respective affiliates is a party.
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Emeril Restaurants
: Licensor shall use commercially reasonable efforts to
request that Lagasse install Covered Products (or appropriate
commercial grade oven products of Licensee) in at least half of the
“Emeril” branded restaurants that Lagasse owns (each an
“ Emeril Restaurant ”). Licensee
acknowledges that such restaurants are not owned by Licensor and
that Lagasse owes neither Licensor nor Licensee any obligation to
agree to any such installation. Notwithstanding clause
(a) of Section 2.10, but subject to Section 2.15, with respect to
each Emeril Restaurant, Licensor shall agree to purchase one (1)
Covered Product at Licensee’s cost of manufacture and to pay
the reasonable costs of installation of such Covered Product at
such Emeril Restaurant; up to a maximum obligation of $60,000 in
the aggregate. In the event that Covered Products or
appropriate commercial grade oven products of Licensee become
installed in at least half of the Emeril Restaurants, Licensee
shall be able to publicly reflect Lagasse and those specific Emeril
Restaurants as users of Licensee products.
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Notwithstanding anything in
this Agreement to the contrary, the definition of “
Products ” for purposes of Licensor’s,
Stewart’s and Lagasse’s obligations set forth in
Section 2 shall not, without the written consent of such respective
party, include any products that were not offered for sale as of
the Effective Date. For avoidance of doubt, the
preceding sentence shall not affect in any manner the definition of
“ Products ” for purposes of the grant of rights
to use Stewart’s Image and Lagasse’s Image set forth in
Section 1.
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Availability for Consulting Service s : Licensor shall make Stewart and
Lagasse available for a limited amount of consulting services (not
to exceed three (3) hours per year each) on TurboChef promotions
and contests and TurboChef oven designs and prototypes; provided,
however, that if a party to any agreement with Licensor or any of
Licensor’s affiliates (including agreements as to which
Licensor or any of Licensor’s affiliates is assignee) in
effect as of the Effective Date asserts that the provision by
Stewart and/or Lagasse of any consulting services referenced in the
preceding sentence would violate any obligation owed to such party,
Licensor shall be relieved of the obligation set forth in the
preceding sentence with respect to such services.
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Stewart will permit Licensee
to install, and Licensee will install, within four (4) months of
the Effective Date, a Covered Product of Stewart’s selection,
in a kitchen in a housing structure of Stewart’s selection on
the property of her Bedford, New York residence (the Parties
acknowledge and agree that Stewart’s Bedford residence
contains multiple housing structures and more than one
kitchen). In addition, Stewart will permit Licensee to
temporarily install, and Licensee will temporarily install, within
one (1) month of the Effective Date, a Covered Product of
Stewart’s selection, in a kitchen in a housing structure of
Stewart’s selection on the property of her Bedford, New York
residence (the Parties acknowledge and agree that Stewart’s
Bedford residence contains multiple housing structures and more
than one kitchen), in a rolling cabinet configuration the (“
Temporary Product ”). At Stewart’s
request upon installation of the Covered Product referenced in the
first sentence of this Section 2.14, Licensee shall remove the
Temporary Product and return the kitchen in which Temporary Product
was installed to the condition of such kitchen prior to the
installation of the Temporary Product. All costs
associated with carrying out the obligations of this Section 2.14
shall be borne by Licensee.
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Lagasse will permit Licensee
to install, and Licensee will install, within four (4) months of
the Effective Date, one (1) Covered Product of Lagasse’s
selection, in an Emeril Restaurant or such other location as
Lagasse, Licensor and Licensee may agree in writing. All
costs associated with carrying out the obligations of this Section
2.15 shall be borne by Licensee.
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Licensee
Advertising and Promotion .
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In
General : At
all times in the exercise of its rights under this Agreement,
Licensee will cause each Celebrity to be depicted in a tasteful and
appropriate manner consistent with such Celebrity’s
professional image and standing in the media and entertainment
industry, Licensor’s use of Stewart’s Image and
Lagasse’s Image, and Licensor’s and such
Celebrity’s reputation for good taste and
quality. Licensee may not use or permit the use of
Stewart’s Image and Lagasse’s Image or any other
intellectual property of Licensor in any manner which derogates or
defames Stewart, Lagasse or Licensor or is not approved as set
forth in Section 3.2 of this Agreement.
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In Martha Stewart
Living Magazine : At Licensee’s request from
time to time, Licensor will make available to Licensee for
purchase, advertising pages in MSL for the purpose of advertising
Covered Products. [CONFIDENTIAL MATERIAL REDACTED AND FILED
SEPARATELY WITH THE COMMISSION]. In order to purchase
such advertising Licensee shall be required to sign
Licensor’s standard form of insertion order for the purchase
of such advertising and such purchase shall be subject to the terms
and conditions of such insertion orders (except to the extent, if
any, that any such term or condition is expressly contradicted by a
term or provision of this Agreement, in which case the term or
provision of this Agreement shall control). Licensee
shall comply with Licensor’s standard requirements regarding
timeliness of delivery of signed insertion orders, creative
materials and other matters. Notwithstanding anything in
this Agreement to the contrary, Licensee acknowledges and agrees
that Licensor in its sole discretion may at any time increase or
decrease the frequency of publication of (or sell or cease to
publish), or increase or decrease the circulation of, MSL at any
time during the Term and that this Section 3.1.1 shall apply only
during periods in which Licensor is publishing MSL.
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On the Licensor Sites
: At Licensee’s request from time to time,
Licensor will make available to Licensee for purchase, banner
advertising in standard positions on pages of the Licensor Sites
for the purpose of advertising Covered Products. [CONFIDENTIAL
MATERIAL REDACTED AND FILED SEPARATELY WITH THE
COMMISSION]. In order to purchase such advertising
Licensee shall be required to sign Licensor’s standard form
of insertion order for the purchase of such advertising and such
purchase shall be subject to the terms and conditions of such
insertion orders (except to the extent, if any, that any such term
or condition is expressly contradicted by a term or provision of
this Agreement, in which case the term or provision of this
Agreement shall control). Licensee shall comply with
Licensor’s standard requirements regarding timeliness of
delivery of signed insertion orders, creative materials and other
matters. Notwithstanding anything in this Agreement to
the contrary, Licensee acknowledges and agrees that Licensor in its
sole discretion may at any time cease to operate either or both of
the Licensor Sites at any time during the Term and that this
Section 3.1.2 shall apply only during periods in which Licensor is
operating a Licensor Site.
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Use of Stewart’s
Image and Lagasse’s Image by Licensee’s Customers
: Licensee may not
sublicense or otherwise authorize or permit any third party
(including any of Licensee’s customers) to use
Licensee’s rights under this Agreement (including without
limitation Licensee’s rights to use Stewart’s Image,
Lagasse’s Image and/or to use any Exploitation Materials (as
defined below)), including in such customers’ physical retail
stores or on their websites; provided, however, that subject to
Licensor’s prior approval in accordance with Section 3.2,
Packaging containing Covered Products and Consumer Facings may be
displayed in physical retail stores where Covered Products are
sold. Notwithstanding the immediately preceding
sentence, Licensee is hereby granted a revocable license to
display, and to sublicense third parties to display, (a) the
Integrations in their entirety only, without any editing or
combination with any other content (including without limitation
any advertisements or other editorial matter) and (b) excerpts of
the Integrations, combined with other material subject to
Licensor’s approval rights set forth in Section 3.2;
provided, however, in either event that neither Licensee nor any
such third party receives any consideration for such display; and
provided, further that if Licensor determines that the Integrations
are being displayed in contravention of the restrictions in this
sentence, Licensor may give written notice (“ Take-Down
Notice ”) revoking the license granted in this sentence
and upon receipt of such a notice, Licensee shall (i) promptly (and
in any event within one (1) business day) cease any further display
of the Integrations specified in the Take-Down Notice, (ii)
promptly (and in any event within one (1) business day) send
written notice (which may be by electronic mail) to each third
party displaying the Integrations demanding that such third party
immediately cease any further display of the Integrations specified
in the Take-Down Notice and (iii) cooperate with Licensor (with
Licensee to bear its costs associated with such cooperation) as
Licensor may request in any efforts by Licensor to cause the
display of the Integrations by Licensee or any third parties to
cease.
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Licensor shall have the right
to approve all uses by Licensee of Stewart’s Image,
Lagasse’s Image and/or Licensor’s name, including uses
(i) on or relating to the Covered Products or packaging used in
connection with Covered Products (“ Packaging
”); (ii) on in-store displays, signage and fixtures used in
connection with Covered Products (“ Consumer Facings
”); (iii) in all advertising, marketing and publicity
materials, including brochures and other literature used to market
Covered Products (“ Advertising Materials ”);
and (iv) any other exploitation materials relating to the Covered
Products, including editorial or promotional content placed by
Licensee on, or accessed via links from, Licensee’s Site
(together with Packaging, Consumer Facings and Advertising
Materials, the “ Exploitation Materials
”). Licensee shall make no use of Stewart’s
Image or Lagasse’s Image or Licensor’s name in the
Exploitation Materials without Licensor’s prior written
approval, and shall not modify such items once approved without
resubmitting them for Licensor’s approval. Those
portions of Exploitation Materials containing Stewart’s Image
or Lagasse’s Image and the images associated with them are
the property of Licensor. However nothing in this
Agreement shall be construed as granting ownership rights of any
kind to Licensor of Licensee’s Products.
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Licensee shall submit all
items for Licensor’s prior approval free of charge to a
representative designated by Licensor in accordance with submission
instructions provided by Licensor. Licensor will strive
to respond in writing to Licensee’s requests
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