Exhibit 10.33
TRADEMARK LICENSE
AGREEMENT
THIS AGREEMENT is entered into on
this 1st day of July, 1995 between THE DIAL CORP
(“Dial”), a Delaware corporation, with its principal
offices at 1850 North Central Avenue, Phoenix, Arizona, and
CONAGRA, INC. (“ConAgra”), a Delaware corporation, with
its principal offices at One ConAgra Drive, Omaha,
Nebraska.
WITNESSETH
WHEREAS, ConAgra entered into a
licensing agreement with Armour-Dial, Inc., Dial’s
predecessor-in-interest, on or about December 18, 1983
(“1983 LICENSING AGREEMENT”); and
WHEREAS, in that 1983 LICENSING
AGREEMENT, ConAgra granted Dial limited rights to use the
trademarks ARMOUR, STAR, ARMOUR STAR, ARMOUR’S, ARMOUR (Logo
type design), and BANNER on certain shelf-stable products specified
in Exhibit B to the 1983 LICENSING AGREEMENT; and
WHEREAS, ConAgra filed suit against
Dial for breach of contract and trademark infringement, Case
No. 8:CV 93-00339 in the United States District Spurt for the
District of Nebraska which suit was dismissed without preiudice in
contemplation of execution of this AGREEMENT; and
WHEREAS the parties desire to enter
into this Agreement to set forth their rights and obligations with
respect to the TRADEMARKS (as hereinafter defined), cancelling and
superseding the 1983 LICENSE AGREEMENT.
AGREEMENT
NOW, THEREFORE, in consideration of
the premises and mutual covenants and agreements hereinafter
contained, it is agreed as follows:
DEFINITIONS
a. NET SALES : In this
Agreement, the term NET SALES shall mean the number obtained by
subtracting cash discounts and product returns and allowances
(excluding trade allowances) from Dial’s gross sales of
SHELF-STABLE PRODUCTS (as hereinafter defined).
b. ROYALTY : In this
Agreement, the term ROYALTY shall refer to the amount owed to
ConAgra by Dial, as calculated according to Section 2
below.
c. SHELF-STABLE PRODUCTS
:
(i) Subject to the provisions
hereinbelow, in this Agreement, the term “SHELF-STABLE
PRODUCTS” shall mean any and all food products sold under or
in connection with the TRADEMARKS which under normal conditions do
not need to be refrigerated, cooled, or frozen while being
transported, inventoried, warehoused, stored, distributed and/or
sold.
(ii) The term SHELF-STABLE PRODUCTS
shall not include any of the food products sold under or in
connection with the TRADEMARKS as of the date of this Agreement
that need to be refrigerated, cooled, or frozen to be transported,
inventoried, warehoused, stored, distributed and/or sold (a list of
all such products is set forth in Schedule C.1 hereto and includes
a product description for each complete with the respective SKU or
UPC for each) regardless of whether future technological
developments make it possible to transport, inventory, warehouse,
store, distribute and/or sell these products without being
refrigerated, cooled, or frozen.
(iii) The term SHELF-STABLE PRODUCTS
shall also exclude products commonly referred to as
“Fresh”, such as fruit and vegetables.
(iv) The term SHELF-STABLE PRODUCTS
includes all processed meat products which fall within Paragraph
c.(i) above excepting, however, the particular dry sausage products
sold by ConAgra or its affiliates under or in connection with the
TRADEMARKS as of the date of this Agreement (a list of all such
products is set forth in Schedule C.2 hereto and includes a product
description for each complete with the respective SKU or UPC for
each). The parties understand and agree that the dry sausage
products set forth in Schedule C.2 are not licensed to Dial, but
that all other processed meat products which fit the definition of
SHELF-STABLE PRODUCTS herein (for example meat sticks and jerky
snacks) are licensed hereunder to Dial.
d. TERRITORY : In this
Agreement, the term TERRITORY shall refer to the United States of
America.
e. TRADEMARKS : In this
Agreement, the term TRADEMARKS shall mean the trademarks and/or
trade names ARMOUR, STAR, ARMOUR STAR, ARMOUR’S, ARMOUR
(logotype design), and BANNER. The term TRADEMARKS shall also
include trademarks incorporating any of the foregoing ( e.g.
, ARMOUR FARMS and CAPTAIN ARMOUR) but only if ConAgra, in the
exercise of its discretion, specifically approves of those new
trademarks in writing.
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GRANT OF LICENSE
Upon the terms and conditions
hereinafter set forth, ConAgra hereby grants to Dial and Dial
hereby accepts from ConAgra the sole and exclusive right to use, in
any lawful manner whatsoever, the TRADEMARKS but solely in
connection with the SHELF-STABLE PRODUCTS in the
TERRITORY.
The parties agree and understand
that, except as provided in this Agreement, ConAgra reserves all
rights with respect to the TRADEMARKS not expressly granted herein
including but not limited to the exclusive right to utilize and/or
license the TRADEMARKS in connection with the manufacture and/or
sale of any product that is not a SHELF-STABLE PRODUCT.
Nothing herein shall be construed as
granting to Dial any right to use the TRADEMARKS for restaurant
services. The foregoing shall not be construed to limit in any
manner, Dial’s channels of distribution of SHELF-STABLE
PRODUCTS.
ROYALTIES
In consideration of the rights
granted herein to Dial, Dial shall pay to ConAgra the following
suits as ROYALTY:
(a) The sum of five hundred thousand
dollars ($500,000.00) which shall be payable as follows:
(i) one hundred twenty-five thousand dollars ($125,000.00)
upon the execution of this Agreement and (ii) fifteen
(15) equal quarterly installments of twenty-five thousand
dollars ($25,000.00) each, payable as follows: July 1,
1995; October 1, 1995; January 1,
1996; April 1, 1996; July 1,
1996; October 1, 1996; January 1,
1997; April 1, 1997; July 1,
1997; October 1, 1997; and January 1,
1998; April 1, 1998; July 1,
1998; October 1, 1998; January 1,
1999.
(b) In addition to the amounts to be
paid under Paragraph 2(a) above, during the period commencing
effective January 1, 1995 through December 31, 1998, Dial
shall pay to ConAgra a percentage royalty based upon annual NET
SALES of SHELF-STABLE PRODUCTS sold as follows:
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For Annual NET SALES of
SHELF-STABLE PRODUCTS
of:
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The Percentage of
Annual NET SALES is:
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0 - $200,000,000
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0%
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$200,000,001 - $300,000,000
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.5%
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$300,000,001 - $500,000,000
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1%
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Over $500,000,001
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1.5%
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For example, if, for the period ending
December 31, 1996, Dial’s annual NET SALES are
$275,000,000, Dial’s percentage royalty under
Section 2(b) would be $375,000. Another example would be if
Dial’s annual NET SALES are $325,000,000, Dial’s
percentage royalty under Section 2(b) would be
$750,000.
(c) In addition to the amounts to be
paid under Paragraph 2(a) above, for all calendar year periods from
and after January 1, 1999, during the term of this Agreement,
Dial shall pay to ConAgra the greater of (i) two hundred fifty
thousand dollars ($250,000.00) annually; or a percentage royalty
based upon annual NET SALES of SHELF-STABLE PRODUCTS as
follows:
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For Annual NET SALES of
SHELF-STABLE PRODUCTS
of:
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The Percentage of
Annual NET SALES is:
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0 - $200,000,000
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0%
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$200,000,001 - $300,000,000
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.7%
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Over $300,000,001
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1.25%
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In no event shall annual royalties
under Section 2(c) exceed two million dollars
($2,000,000).
(d) All sums due pursuant to
Paragraphs 2(b) and (c) above shall be paid on or before
May 1 of each year for the previous calendar year. Along with
said payment, Dial shall provide ConAgra with a final statement,
certified as complete and accurate, of annual NET SALES with
respect to the prior calendar year.
3. ASSIGNMENT
(a) Except as otherwise provided
herein, and so long as ConAgra does nothing to conflict with or
restrict the licensed rights granted to Dial herein, ConAgra may
sell, assign, license, encumber or otherwise transfer
(“Assign” or “Assignment”) this Agreement
and the TRADEMARKS without restriction, provided that, with respect
to an Assignment of this Agreement, the assignee assumes, in
writing, the terms and conditions of this Agreement and all duties
and obligations of the licensor hereunder.
(1) Dial shall have a right of first
refusal to purchase the rights to the TRADEMARKS and associated
goodwill if, and only if, ConAgra is assigning the rights to only
the TRADEMARKS and associated goodwill, and the assignment is not
part of a merger, sale, or other transaction in which assets other
than the TRADEMARKS and associated goodwill are also being
transferred. Prior to assigning the TRADEMARKS and associated
goodwill (if ConAgra is only assigning the TRADEMARKS
and
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associated goodwill and no other assets as noted
above), ConAgra will first offer to sell the TRADEMARKS and
associated goodwill to Dial upon the same terms and conditions as
ConAgra had proposed with the third party. Dial will have twenty
(20) days from its receipt of the written offer to accept such
offer. If Dial does not accept such offer, ConAgra may thereafter
assign the TRADEMARKS and associated goodwill to the third
party.
(2) Dial shall not have a right of
first refusal to purchase the rights to the TRADEMARKS and
associated goodwill if ConAgra is assigning the rights to the
TRADEMARKS and associated goodwill as part of a merger, sale of
assets, or any other transaction in which assets other than the
TRADEMARKS and associated goodwill are also being
transferred.
(b) Except in connection with the
sale or transfer of Dial’s entire Armour business, Dial may
not assign, by operation of law or otherwise, any of its rights,
duties or obligations under this Agreement to any party such third
party is hereinafter referred to as an “Assignee”),
without the prior written consent of ConAgra, which consent will
not be unreasonably withheld. Any such Assignee must assume all of
the terms, covenants and conditions of this Agreement and all of
the duties and obligations of the licensee hereunder.
(c) In determining the
reasonableness of withholding consent to an Assignment, the parties
agree that it shall not be deemed unreasonable for ConAgra to
consider (i) whether the Assignee (or its affiliates) competes
with the business of ConAgra, and (ii) the financial solvency
of the Assignee. The consent of ConAgra, to an Assignment shall not
constitute a consent to any subsequent Assignment by Dial or to any
subsequent or successive Assignment by the Assignee.
(d) Any Assignment in violation of
this Agreement shall be void and a material breach of this
Agreement.
4. BOOKS AND
RECORDS
Dial covenants to keep and maintain
accurate books and records of transactions affecting the
SHELF-STABLE PRODUCTS and the ROYALTY relating thereto. Books and
records for each year shall be retained for a total of three years
following the close of each such year. ConAgra shall have
reasonable access to the books and records of accounts of those
transactions involving the sales of the SHELF-STABLE PRODUCTS in
order to determine and/or clarify the amount of sales and the
ROYALTY due ConAgra. If after such analysis it is determined that
Dial has understated the ROYALTY due ConAgra, then Dial shall pay
the shortage within ten (10) business days following receipt
of written notice and supporting substantiation of the understated
ROYALTY. ConAgra
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agrees that it will not seek access to
Dial’s books and records more than one time each in any
twelve (12) month period and then only during regular business
hours at the location at which such books and records are regularly
or actually maintained.
RELATIONSHIP BETWEEN
PARTIES
Nothing contained in this Agreement
shall be construed to place the parties in the relationship of
legal representatives, partners, joint venturers, agents or
fiduciaries, and no party shall take any action nor incur any
debts, obligations or liabilities in the name of the
other.
6. INDEMNIFICATION AND LIMITATION
OF LIABILITY
(a) Dial agrees to indemnify and
hold ConAgra and ConAgra’s officers, directors, employees,
shareholders, affiliates and agents harmless from any claim, suit,
loss, damage, demand or expense, or cause of action or claim of any
third party (collectively, a “Claim”), arising from or
relating to (i) the inaccuracy or breach, as applicable, of
any representation, covenant or warranty made by Dial in this
Agreement or (ii) Dial’s manufacture, production,
distribution, sale, marketing and/or advertising of the
SHELF-STABLE PRODUCTS or use of the TRADEMARKS.
(b) ConAgra agrees to indemnify and
hold Dial and Dial’s officers, directors, employees,
shareholders, affiliates and agents harmless from any claim, suit,
loss, damage, demand or expense, or cause of action or claim of any
third party (collectively, a “Claim”) arising from or
relating to (i) the inaccuracy or breach, as applicable, of
any representation, covenant or warranty made by ConAgra in this
Agreement or (ii) ConAgra’s use of the TRADEMARKS in
connection with products or services other than the SHELF-STABLE
PRODUCTS.
THE TRADEMARKS, OWNERSHIP, USE,
INFRINGEMENT
(a) Subject to Section 7(b)
below, ConAgra shall retain the full and complete ownership of the
TRADEMARKS, including all goodwill associated therewith, subject
only to the specific rights granted to Dial pursuant to this
Agreement. All goodwill arising from Dial’s use of the
TRADEMARKS will inure solely to the benefit of ConAgra. Dial shall
cooperate if ConAgra registers, files or prosecutes, at
ConAgra’s expense, any application that ConAgra may desire to
file for TRADEMARKS, and, for that purpose, Dial shall supply
ConAgra with such samples, containers, labels and similar materials
as may be reasonably requested by ConAgra.
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(b) If Dial incorporates new terms
or matter (collectively hereinafter “NEW MATTER”) with
any of the TRADEMARKS to create new trademarks that receive
ConAgra’s approval for Dial’s use under this Agreement,
then at the time of ConAgra’s approval, Dial and ConAgra
shall agree in writing as to the ownership rights of the NEW
MATTER. The parties understand that the intent of this paragraph is
to recognize Dial’s ownership interest in and to NEW MATTER
which is developed independently of ConAgra while ensuring that as
between Dial and ConAgra, ConAgra retains the full, complete, sole
and exclusive ownership interest in and to the
TRADEMARKS.
(c) The SHELF-STABLE PRODUCTS shall
be sold on an exclusive basis by Dial within the TERRITORY and may
bear the TRADEMARKS as they exist as of the date of this Agreement
or as they may from time to time be changed, modified or altered by
ConAgra during the term of this Agreement. Nothing set forth herein
shall limit or affect the right of ConAgra to modify or change the
TRADEMARKS; however, ConAgra agrees that Dial’s form and
manner of use of the TRADEMARKS as of the date of this Agreement or
as may be approved by ConAgra from time to time, may
continue.
(d) Each party shall promptly notify
the other party in writing of any known or suspected infringements,
imitations, or unauthorized uses of the TRADEMARKS by third
parties. ConAgra in the first instance shall have the right and
discretion to institute actions against third parties for
infringement of the TRADEMARKS. ConAgra shall have the right to
control any such action instituted by it, including employment of
counsel selected by ConAgra. Dial shall cooperate with ConAgra, at
ConAgra’s expense, in connection with any such action
instituted by ConAgra. ConAgra may not without Dial’s written
consent, enter into any settlement agreement, stipulated judgment
or the like that would restrict or limit in any manner the rights
granted to Dial in this Agreement.
If any such litigation instituted by
ConAgra for infringement of the TRADEMARKS does not relate to
allegedly infringing use in respect of SHELF-STABLE PRODUCTS, then
ConAgra shall bear all expenses of such litigation and shall be
entitled to all monetary recoveries, if any, as a result of such
action. If any such litigation instituted by ConAgra for
infringement of the TRADEMARKS does relate to an allegedly
infringing use in respect of SHELF-STABLE PRODUCTS, then ConAgra
shall give Dial the opportunity to pay one-half of all expenses of
such litigation, including attorney’s fees, and to be
entitled thereby to receive one-half of all monetary recoveries, if
any, as a result of such action.
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If ConAgra declines to institute an
action against a third party for infringement of the TRADEMARKS
with respect to the SHELF-STABLE PRODUCTS, then Dial