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EX-10.36
(This is the form of
Trademark\Tradename
Licensing Agreement
for Nu Skin USA,
Inc. and the other North American Private affiliates. Payments are paid in the
local currency of the country in which the private affiliate
operates)
NU SKIN INTERNATIONAL, INC.
AND
NU SKIN USA, INC.
TRADEMARK\TRADENAME LICENSING AGREEMENT
<PAGE>
TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS..................................................2
1.1
"Agreement".................................................2
1.2 "Business
Portfolios".......................................2
1.3 "Commercial
Materials"......................................2
1.4 "Independent
Distributor Network"...........................2
1.5 "Intercompany
Agreements"...................................2
1.6
"Know-How"..................................................3
1.7 "Licensed Marks
and Names"..................................3
1.8 "Net
Sales".................................................3
1.9 "NSI Independent
Distributor"...............................3
1.10 "NSI
Trademark"............................................3
1.11 "NSI
Tradename"............................................3
1.12
"Product"..................................................4
1.13 "Proprietary
Information"..................................4
1.14 "Sales
Aid"................................................5
1.15
"Territory"................................................5
ARTICLE II GRANT OF
EXCLUSIVE LICENSE; ROYALTIES........................5
2.1 Grant of Exclusive
License..................................5
2.2 NSI's Interest in
Licensed Marks and Names..................5
2.3 Recitals of Value
of Licensed Marks and Names...............5
2.4 Warranty of
Title...........................................6
2.5
Royalties...................................................6
ARTICLE III COMPUTATION AND
PAYMENT TERMS................................6
3.1 Royalty
Payments............................................6
3.2
Records.....................................................7
3.3 Payment
Terms...............................................7
3.4 Default
Rate................................................7
ARTICLE IV CERTAIN
COVENANTS............................................7
4.1 Use of Licensed
Marks and Names.............................7
4.2
Modifications...............................................8
4.3 Prejudicial
Use.............................................8
4.4
Labels......................................................8
4.5
Goodwill....................................................8
4.6 Export of
Products..........................................9
ARTICLE V
TERM.........................................................9
<PAGE>
ARTICLE VI
TERMINATION..................................................9
ARTICLE VII EFFECT OF
TERMINATION........................................10
7.1 Obligation of
NSUSA Upon Termination........................10
7.2 Survival of
Obligations.....................................11
7.3 Reversion of
Rights.........................................11
ARTICLE VIII
GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS.................11
ARTICLE IX INFRINGEMENT;
INDEMNIFICATION................................12
ARTICLE X
CONFIDENTIALITY..............................................13
ARTICLE XI NATURE OF
RELATIONSHIP.......................................14
ARTICLE XII MAINTENANCE OF
TRADEMARKS; RECORDING;
REGISTRATION OF TRADEMARK..................................14
ARTICLE XIII
MISCELLANEOUS................................................15
13.1
Assignment..............................................15
13.2
Force Majeure...........................................15
13.3
Governing Law and Dispute Resolution....................16
13.4
Waiver and Delay........................................17
13.5
Notices.................................................17
13.6
Integrated Contract.....................................18
13.7
Modification and Amendment..............................18
13.8
Severability............................................18
13.9
Counterparts and Headings...............................18
<PAGE>
TRADEMARK \ TRADENAME LICENSING AGREEMENT
THIS TRADEMARK
\ TRADENAME
LICENSING AGREEMENT (hereinafter the
"Agreement") is entered into and made effective this 31st day of
December, 1997,
between Nu Skin International, Inc., a corporation organized under the laws of
the State of Utah, U.S.A., (hereinafter referred to as
"NSI"), and Nu Skin USA,
Inc., a corporation
organized under the
laws of the State of Delaware, U.S.A.
(hereinafter "NSUSA"). Hereinafter, NSI and NSUSA shall
collectively be referred
to as the "Parties" and each shall be individually referred to as
"Party."
W I T N E
S S E T H
WHEREAS, NSI is
engaged in the design,
production and
marketing of
Products (as
defined below) and related Sales Aids (as defined below) for
distribution in worldwide markets through a network of independent
distributors;
and,
WHEREAS, NSUSA
acts as the exclusive wholesale distributor of
Products in the
Territory (as hereafter defined) , having entered into a
separate Wholesale Distribution Agreement with NSI dated as of the
date hereof,
WHEREAS, NSUSA desires
to affix NSI Trademarks (as defined below) to
Products and to affix NSI Tradenames (as defined below) to
Commercial
Materials
it envisions for the Territory thereby deriving benefit from the
goodwill, value
and reputation
such marks and names shall lend when used to identify such
Products and Commercial Materials; and,
WHEREAS, the Parties
desire to enter into this Trademark \ Tradename
Licensing Agreement as set forth herein;
NOW THEREFORE, in consideration of the premises, the mutual
promises,
covenants, and
warranties
hereinafter
set forth and for other valuable
consideration, the
sufficiency
of which is hereby
acknowledged,
the Parties
agree as follows:
<PAGE>
ARTICLE I
DEFINITIONS
For the purposes of this Agreement, the following words and terms
shall have the meaning assigned to them in this Article I:
1.1 "Agreement"
shall mean this Trademark\Tradename
Licensing
Agreement (together
with any exhibits and schedules hereto), as the same may be
modified, amended or supplemented from time to time.
1.2 "Business
Portfolios" shall mean those materials approved by NSI
and not purchased from
NSI that are intended for sale in conjunction with the
execution of a
distributor
contract to NSI
Independent
Distributors
in the
Territory explaining
the Nu Skin independent business opportunity, the
contractual
relationship with NSI
and the marketing
support programs for
the
Territory.
1.3 "Commercial
Materials"
shall mean, without limitation, any
business marquis, sign, letterhead, business card, pamphlet,
brochure, magazine,
flyer, newsletter,
Sales Aid, advertisement or other associated tangible
materials NSUSA uses in its activities with the Independent
Distributor
Network
or the public to enhance its image and competitiveness in the Territory that
NSUSA has not
purchased from NSI.
Commercial
Materials shall not, for the
purposes of this Agreement, include Business Portfolios (as defined
below).
1.4 "Independent
Distributor Network"
shall mean the network of all
NSI Independent Distributors.
1.5 "Intercompany
Agreements" shall mean The Wholesale Distribution
Agreement, The Licensing and Sales Agreement, The Management
Services Agreement,
and The Trademark/Tradename Agreement between the Parties.
<PAGE>
1.6 "Know-How"
shall mean any information, including, without
limitation, any
commercial or business information, lists, marketing methods,
marketing surveys, processes, specifications, quality control
reports, drawings,
photographs, or any
other information
owned by NSI, whether
or not considered
proprietary, relating
to the Independent
Distributor Network,
NSI Independent
Distributors, the NSI distributor lists, and the NSI sales
compensation plan.
1.7 "Licensed
Marks and Names" shall mean any NSI Trademark,
including those affixed to any Product for purposes of identifying,
promoting or
selling such Product in the Territory to any NSI Independent Distributor, and
any NSI Tradename,
including those affixed to or used in
connection with
any
Commercial Materials
produced to further NSUSA's commercial activities in the
Territory and any product formula as agreed to by the Parties from
time to time.
1.8 "Net Sales" shall mean, for any period, the number of Products,
Commercial Materials
and Introductory Kits
(or any part thereof) sold by NSUSA
during such period,
multiplied by NSUSA's
then current
selling price to NSI
Independent
Distributors for
each such Product, Commercial Material and
Introductory Kits,
less applicable consumption taxes and returns or refunds
reasonably accepted and credited by NSUSA during such period.
1.9 "NSI Independent
Distributor"
shall mean a person or
business
entity authorized
by contract with NSI to distribute, as an independent
contractor, Products and Sales Aids.
1.10 "NSI Trademark" shall mean any NSI service mark, trademark,
logo
or device (or
combination thereof)
used or for which NSI has a bonafide intent
to use, registered or otherwise.
1.11 "NSI Tradename"
shall mean any
commercially valuable
"mark,"
"name," or "device" or combination thereof whether or not similar in
appearance
to any NSI Trademark of which NSI is the owner, registered or
otherwise.
<PAGE>
1.12 "Product"
shall mean any of the following bearing an NSI
Trademark: any product, including, without limitation, cosmetics, nutritional
products, dietary
supplements, vitamins,
over-the-counter
drugs, quasi-drugs,
drugs and
pharmaceutical
products, and other
products, which NSUSA designs,
manufactures,
produces and/or
distributes
or causes to be designed,
manufactured, produced
or distributed in the Territory, that NSUSA has not
purchased from NSI.
Products shall not, for the purposes of this Agreement,
include Business Portfolios.
1.13 "Proprietary
Information" shall mean, without limitation, all
information other than information in published form or expressly
designated by
either party in
writing as
non-confidential,
which is directly or
indirectly
disclosed to the other party, regardless of the form in which it is
disclosed,
relating in any way to the following property owned by the Parties or
which the
Parties have been
licensed to use or
sub-license: (1)
proprietary
technical
information related to the Licensed Marks and Names and the
Business Portfolios;
(2) information
respecting actual or
potential customers or
customer contacts
and customer sales strategies, names, addresses, phone numbers,
identification
numbers, database information and its organization, unique business
methods; (3)
market studies, penetration data, customers, products, contracts, copyrights,
computer programs,
applications,
technical data, licensed technology, patents,
inventions,
procedures, methods,
designs, strategies, plans, liabilities,
assets, cost revenues,
sales costs,
production costs, raw material sources and
other market
information; (4) other
sales and marketing
plans, programs and
strategies; (5) trade
secrets, Know-How, designs and proprietary commercial and
technical information,
methods, practices, procedures, processes, formulae with
respect to
manufacturing,
assembly, design or
processing products
subject to
this Agreement and any
component, part or
manufacture
thereof; (6) profits,
organization, employees, agents, distributors, suppliers,
trademarks, tradenames
and services; (7)
other business and commercial practices in general relating
directly or indirectly to the foregoing; (8) computer disks or other
records or
documents, originals
or copies, containing in whole or in part any of the
foregoing; and (9) tax information, returns and other financial
information.
<PAGE>
1.14 "Sales Aid" shall mean materials, in whatever form and/or
design
produced to assist in
the marketing
of Products or the Nu Skin independent
business opportunity in the Territory.
1.15 "Territory" shall
mean the United States of America, including
its territories.
ARTICLE II
GRANT OF NON EXCLUSIVE LICENSE; ROYALTIES
2.1 Grant of Exclusive License. NSI hereby grants to NSUSA an
exclusive license
and right to use, the Licensed Marks and Names in the
Territory, provided
that all such uses
shall comply in all
material respects
with the terms of this Agreement.
2.2 NSI's Interest in
Licensed Marks and
Names. NSI hereby
retains
legal title to the Licensed Marks and Names for all purposes,
including but not
limited to, the bringing or defending of any legal action in the
Territory which
it deems reasonable to protect its rights therein. NSUSA agrees to
assist NSI in
any manner to protect NSI's rights in the Licensed Marks and Names
which NSI may
reasonably request. NSI shall reimburse NSUSA for any third party
costs incurred
by NSUSA in providing such assistance.
2.3 Recitals of Value of Licensed Marks and Names. NSUSA recognizes
and agrees that NSI has expended considerable time, effort and resources to
develop, register,
apply for registrations, maintain and enhance the value
and
reputation of the Licensed Marks and Names. NSUSA further agrees it will
derive
a considerable
benefit from its use of the Licensed Marks and Names in the
Territory and from NSI's efforts and expenditures respecting the Licensed Marks
and Names.
<PAGE>
2.4 Warranty of Title. NSI hereby represents and warrants that it
is
the sole and exclusive
owner of the
Licensed Marks and Names and that to
the
best of its
knowledge and information no claim exists or has been made
contesting the ownership and title of said Licensed Marks and
Names.
2.5 Royalties. As
compensation for the
exclusive licenses
granted
pursuant to the terms of this Agreement, NSUSA shall pay to NSI a royalty
equal
to five percent (5%) (or as otherwise mutually agreed upon by the Parties) of
its Net Sales in the
Territory during the
entire term of this
Agreement.
If
NSUSA elects to produce and/or purchase any Products from a third
party rather
than through
or from NSI, and such Product is based on or contains NSI
proprietary
information, formulas
or ingredients, and such Product bears
Licensed Marks and Names, the applicable royalty shall be eight percent
(8%) of
Net Sales, or as otherwise mutually agreed upon by the Parties.
ARTICLE III
COMPUTATION AND PAYMENT TERMS
3.1 Royalty Payments.
3.1(a) Within 30 days
following the close of each month, NSUSA
shall deliver to NSI, by electronic transmis






