Document:

Exhibit
10.63

 

 

AMENDMENT TO

TRADEMARK LICENSE AGREEMENTS

 

This Amendment to Trademark
License Agreements, dated as of December 24, 2004 (this” Amendment”), to the
Trademark License Agreements described below, is entered into by and between
Mrs. Fields Franchising, LLC (“MFF”), a Delaware limited liability company, as
successor-in-interest to The Mrs. Fields’ Brand, Inc. and/or Mrs. Fields’
Original Cookies, Inc., and Shadewell Grove IP, LLC (“Shadewell”), a Delaware
limited liability company, as successor-in-interest to Nonni’s Food Company,
Inc. (“Nonni’s”), a Florida corporation.  
MFF and Shadewell are sometimes collectively referred to herein as the
“parties.”

 

A.            The parties wish to amend the following Trademark License
Agreements entered into between their predecessors-in-interest:  (a) Trademark License Agreement dated January
3, 2000, as previously amended (the “January 2000 TMLA”); (b) Trademark License
Agreement dated February 21, 2001 (the
“February 2001 TMLA”), as previously amended; and (c) Trademark License
Agreement dated March 31, 2003 (the “March 2003 TMLA”; and all agreements
collectively, the “Existing Agreements”), upon the terms set forth herein.

 

                B.            The capitalized terms used but not
otherwise defined herein shall have the meanings ascribed thereto in the
Existing Agreements.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

 

1.             Amendment to Section 5 — Running Royalties Payment
Due Date.  Section 5 of each of the
Existing Agreements currently provides that Shadewell will pay Running
Royalties to MFF on the last day of the month following the end of each
calendar quarter covered by the respective Existing Agreements.  Each Existing Agreement is hereby amended to
reflect that, effective as of the date of this Agreement, Shadewell shall remit
such Running Royalties to MFF no later than 60 days following the end of each
calendar quarter covered by the Existing Agreement.

 

2.             Amendment to Section 6 of January 2000 TMLA —
Guaranteed Royalty Payment Due Date. 
Section 6 of the January 2000 TMLA currently provides that Shadewell
will pay any Guaranteed Royalties to MFF within 45 days following the end of
the respective 12-month period.  The
January 2000 TMLA is hereby amended to reflect that, effective as of the date
of this Agreement, Shadewell shall remit Guaranteed Royalties to MFF within 60
days following the end of the corresponding 12-month period.

 

3.             Amendment to Sections 6 and 7 of March 2003 TMLA
—  Deletion of Guaranteed Royalties and
Addition of Sales Increase Commitments. 
Section 6 of the March 2003 TMLA is deleted in its entirety, effective
as of the date of this Agreement,

 

 

 

and the words “Intentionally Deleted” are
inserted in its place.  All other
references to the defined terms “Guaranteed Royalty” or “Guaranteed Royalties”
are hereby also deleted, and any changes in form and grammar necessary as a
result of such deletions are hereby made to protect the remaining content of
the March 2003 TMLA.  Section 7 of the
March 2003 TMLA is hereby amended and restated as follows:

 

“If, during each annual
period from March 31, 2005 through March 31, 2008,  Shadewell fails to either (i) generate a
minimum of a 2% increase in year-over-year sales or (ii) pay to MFF the Running
Royalty attributable to the amount by which, in a given year, the increase in
year-over-year sales has been less than 2%, MFF shall have the option either to
terminate this Agreement or to treat it for the remainder of its term as a
non-exclusive license.”  

 

4.             Amendment to Section 8 — Report Due Dates.  Section 8(a) of each of the Existing
Agreements currently provides that Shadewell will submit certain statements
regarding Royalty Bearing Products on or before the last day of the month
following the last month of each calendar quarter covered by the respective
Agreement.  Each such Existing Agreement
is hereby amended to reflect that, effective as of the date of this Agreement,
Shadewell shall submit such statements to MFF no later than 60 days following
the end of each calendar quarter covered by the Existing Agreement.

 

5.             Continuing Effect.  The Existing Agreements, as amended herein,
shall each continue in full force and effect according to its respective terms.

 

6.             Miscellaneous.

 

6.1           This Amendment shall be binding upon
and shall inure to the benefit of the parties hereto and the respective
successors and assigns.

 

6.2           In case any provision or obligation
hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

6.3           Section headings herein are included
herein for convenience of reference only and shall not constitute a part hereof
for any other purpose or be given any substantive effect.

 

6.4           THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF UTAH.

 

2

 

6.5            This Amendment may be executed in
any number of counterparts, each of which when so executed and delivered shall
be deemed an original, but all such counterparts together shall constitute one
and the same instrument.

 

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their respective authorized officers as of the date first set forth above.

 

	
   

  	
  SHADEWELL GROVE IP, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Bruer

  	
   

  
	
   

  	
   

  	
  Tim Bruer

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MRS. FIELDS FRANCHISING,
  LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Ward

  	
   

  
	
   

  	
   

  	
  Michael Ward

  
	
   

  	
  Its:

  	
  Executive Vice President,
  General Counsel

  

 

3EXHIBIT 10.64

 

 

MARKETING
ALLOWANCE AGREEMENT

 

THIS MARKETING ALLOWANCE AGREEMENT (the
“Agreement”) is entered into effective as of December 24, 2004, by and between
MRS. FIELDS FRANCHISING, LLC, a Delaware limited liability corporation (“MFF”),
and SHADEWELL GROVE IP, LLC (“Shadewell”). 
MFF and Shadewell sometimes are referred to in this Agreement
individually, as a “Party” and collectively, as the “Parties.”

RECITALS

WHEREAS,
MFF and Shadewell are parties to several trademark license agreements including
the license agreement of January 3, 2000 to develop, manufacture and sell
shelf-stable cookies, the license agreement of February 21, 2001 to distribute
and sell ready-to-eat pre-baked cookie product through other distribution
channels, the license agreement of March 31, 2003 to package, distribute,
market and sell chocolate chips, and other similar licensing agreement now
being negotiated or recently executed regarding shelf-stable brownies and
toppings (such license agreement, the “Brownie License”, and collectively with
the other license agreements set forth in this paragraph, the “License
Agreements”) that allow Shadewell to develop, produce and sell various products
under the marks and trade names held by MFF or its affiliated entities
(“Licensed Marks”) in exchange for the payment of royalties (these products are
more precisely defined under each of the License Agreements as “Royalty Bearing
Product(s)”);

WHEREAS,
MFF desires to grant Shadewell certain one-time marketing allowances to be
credited against royalty payments that would otherwise be made by Shadewell to
MFF, which allowances shall be given under the terms and conditions set out
herein (“Marketing Allowance”) to assist Shadewell to have additional marketing
funding to further establish and promote the Royalty Bearing Products and MFF
brand in the market; and

WHEREAS,
Shadewell is willing to accept the Marketing Allowances to promote the Royalty
Bearing Products and the MFF brand, and is willing to agree to the terms and
conditions proposed by MFF to receive those Marketing Allowances;

AGREEMENT

NOW, THEREFORE, in consideration of the
foregoing recitals and the mutual promises and covenants set forth herein, the
Parties hereby agree as follows:

 

                1.             General Provisions and Terms.  All terms not otherwise defined in the
Agreement shall have the meanings given similar terms in the License Agreements
and Sections 15, 21 and 22 of the Brownie License shall be incorporated herein.

 

2.             First Marketing Allowance.  MFF hereby grants Shadewell an initial Marketing
Allowance for the 2006 fiscal year of One Hundred Twenty-Five Thousand U.S.
dollars ($125,000.00 USD) to promote the Royalty Bearing Products and MFF 

 

1

 

brand on the terms set forth herein.  This Marketing Allowance will be credited
against the first royalty monies due to MFF from Shadewell during the 2006
fiscal year, beginning with the first quarter, which rebate will continue to be
granted until the time the full amount outlined herein is realized by
Shadewell.  Shadewell hereby agrees to
use the Marketing Allowance in the manner and for the purposes as set out in
Section 5 below.

 

3.             Second Marketing Allowance.  MFF hereby grants Shadewell an additional
Marketing Allowance for the 2007 fiscal year of Two Hundred Thousand U.S.
dollars ($200,000.00 USD) to promote the Royalty Bearing Products and MFF brand
on the terms set forth herein.  This
Marketing Allowance will be credited against the first royalty monies due to
MFF from Shadewell during the 2007 fiscal year, beginning with the first
quarter, which rebate will continue to be granted until the time the full
amount outlined herein is realized by Shadewell.    Shadewell hereby agrees to use the
Marketing Allowance in the manner and for the purposes as set out in Section 5
below.

 

4.             Royalty Waiver Marketing Allowance.  MFF hereby grants Shadewell an additional
Marketing Allowance, which shall be effective only during the Royalty Waiver
period (as defined in Section 5(b) of the Brownie License), to promote the
Royalty Bearing Products and MFF brand on the terms set forth herein.  The amount of this additional Marketing
Allowance shall be equal to the amount of the Royalty Waiver.  At the conclusion of the Royalty Waiver
Period, Shadewell must demonstrate and provide evidence that the Marketing
Allowance set forth in this Section 4 has been used in the manner and for the
purposes as set out in Section 5  below
during such Royalty Waiver Period.  If
MFF’s review shall indicate that Shadewell has not spent or committed to spend
an amount at least equal to the Marketing Allowance on Promotional Activities,
MFF shall send Shadewell an invoice in the amount of the discrepancy, and
Shadewell shall remit the same to MFF within 30 business days of receipt or, at
Shadewell’s option, shall propose additional Promotional Activities acceptable
to MFF and complete the same within 45 days to expend the remainder of the
Marketing Allowance.

 

5.             Approved Marketing Allowance Uses.  Shadewell shall use the Marketing Allowance
for advertising and promotional activities designed by Shadewell in its
reasonable discretion to promote the Licensed Marks and market the Royalty
Bearing Products (the “Promotional Activities”) within any Designated
Distribution Channel during the calendar year the Marketing Allowance is
granted.   The Promotional Activities may
include, without limitation, Shadewell’s slotting fees and similar
merchandising expenses related to the Royalty Bearing Products, discounts and
fees arising from sale of the Royalty Bearing Products to the trade, and
production and distribution of marketing, promotional and point of sale
materials.  Shadewell’s use of the
Licensed Marks in any Promotional Activities must comply with provisions in the
License Agreements related to use of such Marks, including any approval or
consent rights that Mrs. Fields may have thereunder.

 

6.             Accounting Issues.  No later than 45 days following the end of
MFF’s fiscal year in which a Marketing Allowance has been granted, Shadewell
shall provide 

 

2

 

MFF with an accounting of the Marketing
Allowance in form and content reasonably satisfactory to MFF, including a
breakdown indicating a brief description of the types of Promotional
Activities, the payees, and the amounts of Marketing Allowance expenditures
related to each Activity.  If required by
MFF auditors or internal accounting department in connection with any audit of
any Mrs. Fields entity within 45
days following its receipt of the accounting, MFF shall have the right, upon
reasonable notice to Shadewell and during regular business hours, to review
Shadewell’s records concerning the Marketing Allowance and Promotional
Activities.  If in MFF’s review it is
determined that Shadewell has not spent an amount at least equal to the
Marketing Allowance on Promotional Activities during the given year or period,
or that Shadewell’s records do not provide adequate support that Shadewell has
met its obligations under this paragraph, MFF shall send Shadewell an invoice
in the amount of the discrepancy, and Shadewell shall remit the same to MFF
within 30 business days of receipt, or, at Shadewell’s option, shall propose
additional Promotional Activities acceptable to MFF and complete the same
within 45 days to expend the remainder of the Marketing Allowance.

 

7.             Counterparts.  This Agreement may be signed in counterparts,
which shall be considered one original.

8.             Integration.  This Agreement and the trademark license
agreements referred to in the Recitals above sets forth the entire agreement
and understanding between and among the Parties hereto with respect to the
subject matter hereof and supercedes all prior written and oral agreements,
term sheets, negotiations and understandings; shall be binding upon the
successors, assigns, heirs, and personal representatives of the parties, and
may not be rescinded, cancelled, terminated, supplemented, amended, or modified
in any manner whatsoever without the prior written consent of all parties.

Executed as of the date
first set forth above.

 

	
   

  	
  MRS.
  FIELDS FRANCHISING, LLC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Michael Ward

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Michael
  Ward

  	
   

  
	
   

  	
  Its:

  	
   

  	
  Executive
  Vice President, General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SHADEWELL
  GROVE IP, LLC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/
  Tim Bruer

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Tim
  Bruer

  	
   

  
	
   

  	
  Its:

  	
   

  	
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]