Document:

LICENSE AGREEMENT

 

THIS AGREEMENT, by and between TECHNICAL TEXTILES LLC (having the assumed name KENTUCKY TECHNICAL TEXTILES), a limited liability company formed under the laws of the Commonwealth of Kentucky, having a place of business at 4440 Lexington Road. Paris, Kentucky 40361. United States of America (“LICENSOR”) and PERFORMANCE SPORTS BRANDS, a limited liability company formed under the laws of Nevada, having a place of business at 1021 N. Sepulveda Blvd.. Suite G. Manhattan Beach, CA 90266, “United States of America (“LICENSEE”). LICENSOR and LICENSEE may each be referred to herein separately as a “Party” and referred to herein collectively as the “Parties”.

 

WHEREAS, LICENSOR developed a composition for treating fabric, a performance fabric, and a method of preparing performance fabric as described in PCT Patent Application Serial Number PCT/US09/033910 entitled IONIZED PERFORMANCE FABRICS provisional Patent Application Serial Number 11/246.536, and others (“INVENTION”). In addition, LICENSOR has developed a composition using the above pending patent application for delivery of antimicrobial substances for multiple end use applications; and

 

WHEREAS, LICENSOR desires to retain the right to exclude others from making, using, offering to sell, selling, and importing the Invention while granting to LICENSEE an exclusive license to make, use, offer to sell, or sell the Invention and subsequent enhancements world wide in the Licensed Field (as defined below): and

 

WHEREAS, LICENSOR and LICENSEE entered into a License Agreement as of January 4, 2011 (the “Original Agreement”), pursuant to which LICENSEE was granted as exclusive license by LICENSOR to certain intellectual property of LICENSOR; and

 

WHEREAS, following the Original Agreement, LICENSEE and LICENSOR wish to amend certain provision of and to restate and replace the Original Agreement in its entirety.

 

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1. Definitions.

 

1.1 “Patent Rights” shall mean LICENSOR’s rights in all U.S. and foreign patents and patent applications relating to the Invention, including without limitation any and all related patents, patent applications and invention disclosures and any and all divisional, continuation, continuation-in-part applications, and any patents issuing therefrom, and any reissues, reexaminations, renewals, substitutions relating to any of the foregoing, LICENSOR’s pending patent applications are set for the on Exhibit A. attached hereto, and incorporated herein by reference.

 

1.2 “Technology Rights” means LICENSOR’s rights in technical information, know how, processes, procedures, compositions, devices, methods, and formulas which are not covered by the Patent Rights but which are necessary for practicing the Invention.

  

1

  

 

1.3 “Licensed Field” means golf and athletic performance wear. Excluding sports medicine, accessories, sports jewelry, and sports nutrition.

 

1.4 “Effective Date” means the last date in time adjacent the signature of an authorized representative of a Party on the last page of this Agreement.

 

1.5 “Licensed Mark” means a mark that LICENSOR has rights in and designates for marking on Licensed Products and all promotional materials (print and all forms of media).

 

1.6 “Licensed Products” means any product comprising or manufactured using the Patent Rights or Technology Rights.

 

1.7 “Licensed Subject Matter” means inventions and discoveries covered by the Patent Rights or Technology Rights.

 

1.8 “Financial Year” means the period July 1 - June 30.

 

2. TECHNOLOGY LICENSE GRANT AND MARKING.

 

2.1 LICENSOR hereby grants to LICENSEE, and LICENSEE hereby accepts, an exclusive license to use and utilize the Patent Rights and Technology Rights to make, use, promote, and offer to sell or sell Licensed Products within the Licensed Field. This grant is subject to the terms of this Agreement, including payment by LICENSEE to LICENSOR of all consideration as provided herein.

 

2.2 The license granted in Paragraph 2.1 does include the right to grant unilateral sublicenses (“Sublicenses”). LICENSEE shall have the right to enter into good faith discussions with third parties indentified by LICENSEE as potential sublicenses (“Sublicensees”) of the Licensed Products and /or Licensed Subject Matter. Written authority from the LICENSOR must be given to the LICENSEE to issue sublicense to manufacture product under the terms of this Agreement. However, unless agreed in writing by the LICENSOR, any unauthorized grant of a sublicense is void.

 

2.3 LICENSEE shall mark any Licensed Products that it makes, offers to sell, sells and all promotional materials (print and all forms of media) with a patent notice as may be permitted or required under Title 35. United States Code.

 

3. TRADEMARK LICENSE GRANT AND MARKING.

 

3.1 LICENSEE shall mark any Licensed Products that it makes, offers to sell, or sells and all promotional materials (print and all forms of media) with a Licensed Mark in a manner as specified from time to time in writing by LICENSOR.

 

32. LICENSOR grants LICENSEE a nonexclusive license to use the Licensed Mark in association with the manufacture, marketing, and sale of the Licensed Products. Written authority from the LICENSOR may be given to the LICENSEE to issue a sublicense to mark product manufactured under the terms of this Agreement by a sublicensee in accordance with Paragraph 3.1. However, unless agreed in writing by the LICENSOR, any unauthorized grant of a sublicense to use a Licensed Mark is void.

  

2

  

 

4. ROYALTY PAYMENTS.

 

4.1 All payments due under this Section 4 shall be made in United States Dollars.

 

4.2 In consideration of the rights granted by LICENSOR to LICENSEE under this Agreement. LICENSEE shall pay to LICENSOR a royalty monthly (each such payment, a “Royalty Payment”) shall conform with the prescribed minimum royalty payments listed in 4.3.

4.3

	  	 	
GUARANTEED

	 	 	
PRESCRIBED

	 	 	
EXPECTED

	 
	  	 	
MONTHLY

	 	 	
YEARLY

	 	 	
SALES

	 
	
TERM

	 	
MINIMUM

	 	 	
MINIMUM

	 	 	
VOLUME

	 
	
  8/11

	 	$	6,500	 	 	 	N/A	 	 	 	N/A	 
	
  9/11

	 	$	7,500	 	 	 	N/A	 	 	 	N/A	 
	
10/11

	 	$	8,500	 	 	 	N/A	 	 	 	N/A	 
	
11/11

	 	$	9,500	 	 	 	N/A	 	 	 	N/A	 
	
12/11

	 	$	10,500	 	 	 	N/A	 	 	 	N/A	 
	
01/12

	 	$	11,500	 	 	 	N/A	 	 	 	N/A	 
	
02/12

	 	$	12,500	 	 	 	N/A	 	 	 	N/A	 
	
03/12

	 	$	13,500	 	 	 	N/A	 	 	 	N/A	 
	
04/12 - 03/13

	 	$	13,500	 	 	$	165,000	 	 	$	5.0M	 
	
04/13 - 03/14

	 	$	19.250	 	 	$	231,000	 	 	$	7.0M	 
	
04/14 - 03/15

	 	$	24,750	 	 	$	297,000	 	 	$	9.0M	 
	
04/15 - 03/16

	 	$	30,250	 	 	$	363,000	 	 	$	11.0M	 
	
04/16 - 03/17

	 	$	35,750	 	 	$	429,000	 	 	$	13.0M	 

	
  

	
·

	
Payments due by 15th of each month

	
  

	
·

	
Royalty versus sales volume reconciliation on or before June 30th of each year

5. LICENSOR DUTIES

 

5.1 No Obligation to Promote, LICENSOR shall have no responsibilities or obligations to the promotion of the Licensed Products by LICENSEE. LICENSEE can only promote their licensed product.

 

5.2 LICENSEE agrees to employ full time polymer chemist for sourcing, quality control, performance, and overall efficiency of the invention.

 

5.3 Training. LICENSOR shall provide all necessary training to LICENSEE and or authorized sublicensees at the pre-approved expense of the LICENSEE on the method of application of the Invention in the Licensed Field to ensure Licensed Products are manufactured to the quality standard required to ensure the products are fit for purpose and comply with manufacturing specification. Subject to pre-approval, LICENSEE shall pay for any and all travel expenses associated with the LICENSOR training LICENSEE to apply the LICENSOR’s technology.

  

3

  

 

6. QUALITY STANDARDS AND APPROVAL.

 

6.1 Quality Standards. LICENSEE acknowledges that the nature and quality of all Licensed Products manufactured, sold, or otherwise disposed of by LICENSEE shall conform to the reasonable standards set by and under the control of LICENSOR (“Quality Standards”).

 

7.    ENFORCEMENT.

 

In order to protect the value of the license granted herein, LICENSOR may take reasonable and necessary actions to protect and defend the Invention, Patent Rights, Technology Rights and Licensed Mark against any claims of infringement and against any third party infringement. LICENSEE shall not institute any proceeding for infringement of the Invention, Patent Rights, Technology Rights, Licensed Mark or otherwise stemming from the Invention, Patent Rights, Technology Rights, Licensed Mark, without the prior written approval of LICENSOR. LICENSEE shall cooperate fully and in good faith with LICENSOR in the event any infringement or other action is initiated by the LICENSOR that relates to the Invention. Patent Rights. Technology Rights, or Licensed Mark.

 

8. INDEMNITY.

 

8.1 LICENSEE agrees to protect, indemnify, defend and hold LICENSOR harmless and against all claims, suits, demands, losses, damages, liabilities, deficiencies, costs and expenses, including but not limited to reasonable attorneys’ fees and disbursements (whether or not LICENSOR is named as a party to any litigation or other proceeding) {the foregoing “Damages”), arising from or relating to any or all of the following (i) the breach by LICENSEE of any of the terms or provisions of. or any representations or warranties or any covenants or undertakings of LICENSEE contained in. this Agreement {it) any advertising, promotional or marketing activities of LICENSEE in connection with the Licensed Products which makes claims for the Product which have not been supplied by the LICENSOR; (iii) the making or manufacture, sale, use, or manufactures to the specification and using the process defined by LICENSOR; (iv) the alleged or supposed rights of current and former employees, and (v) the enforcement by LICENSOR of any of the foregoing indemnification obligations set forth in the Paragraph 8.1.

 

8.2 LICENSOR agrees to indemnify LICENSEE from any Damages arising from (i) any product liability claims arising from the making or manufacture, sale. use. or importation of the Licensed Products in the Licensed Products have been manufactured to the specification and using the process defined by LICENSOR, (ii) the breach by LICENSOR of any of the terms or provisions of, or any representatives or warranties or any covenants or undertakings of LICENSOR contained in. this Agreement;(iii) any advertising, promotional or marketing activities by LICENSEE in connection with the LICENSED Products which makes claims for the Product which have been supplied by the LICENSOR, and (iv) the enforcement by LICENSEE of any of the foregoing indemnification obligations set forth in the Paragraph 8.2.

 

9. NO ASSIGNMENT AND OWNERSHIP.

 

9.1 This Agreement may not be assigned or otherwise transferred by LICENSEE without prior written consent of the LICENSOR, which will not be unreasonably withheld. Any unauthorized assignment or transfer shall be void.

  

4

  

 

9.2 LICENSOR represents and warrants that is unconditionally owns the Inventions, Patent Rights. Technology Rights, and the Licensed Mark and has full and absolute power and authority to grant the LICENSEE the exclusive license set forth herein. Based upon the foregoing representation and warranty, LICENSEE acknowledges that LICENSOR owns the Invention, Patent Rights. Technology Rights, and Licensed Mark, including all rights therein. Nothing in this Agreement shall give the LICENSEE any right, title, or interest in or to the Invention, Patent Rights. Technology Rights, and Licensed Mark, other than pursuant to the licenses granted herein.

 

9.3 LICENSEE shall not do anything inconsistent with LICENSOR’s ownership of the Invention, Patent Rights, Technology Rights, and Licensed Mark. Licensee shall not challenge directly or indirectly, the Invention. Patent Rights. Technology Rights or Licensed Mark nor LICENSOR’s right, title, or interest in the Invention, Patent Rights. Technology Rights, or Licensed Mark.

 

9.4 LICENSEE shall not register, attempt to register, or use any trade name or trademark which, in whole or in part, incorporates or is confusingly similar to the Licensed Mark.

 

9.5 In the event the LICENSEE develops an enhancement, improvement, or modification to the Invention, which enhancements, improvements or modifications were at the sole expense of LICENSOR, the right of first refusal shall be granted to the LICENSEE to such enhancement, improvement, or modification.

 

10. TERMS AND TERMINATION.

 

10.1 litis agreement will commence on the Effective Date. Unless previously terminated in accordance with one or more of the other provisions hereunder, the Agreement shall expire at the end of ten (10) years. The LICENSEE may renew this agreement, every ten (10) years after the initial term for a period often (10) years unless the LICENSEE has caused a material breach of the Agreement terms.

 

10.2 The LICENSEE shall provide to the LICENSOR a brief sales forecast and marketing plan for each Year. Plan shall be submitted in draft form to the LICENSOR by no later the October 1 preceding the commencement of each Financial Year. On receipt of the business plan, the parties shall forthwith consult on the content and objectives of that plan and the LICENSEE shall provide a final business plan to LICENSOR for approval by the LICENSOR no later than December 15th preceding the commencement of each Financial Year. The business plan will include projected sales; marketing initiatives including advertising, product-sourcing details, expected growth of the Licensed Products by region, and such other matters may be reasonably requested by the LICENSOR.

 

10.3 This Agreement will terminate earlier than the period outlined in Paragraph 10.1

 

(a)

 

if LICENSEE becomes bankrupt, and /or LICENSEE’s business is placed in the hands of a receiver, or trustee, whether voluntarily or otherwise, in which case this Agreement will automatica1ly terminate;

 

(b)

 

upon thirty (30) days written notice from LICENSOR, if LICENSEE breaches or defaults on its obligation to make payments in accordance with the terms of Sections 4 and 5. unless, before the end of this thirty (30) day period, LICENSEE has cured the breach or default and provide LICENSOR written notification stating the manner cure;

  

5

  

 

(c)

 

upon thirty (30) days written notice from LICENSOR, if LICENSEE breaches or defaults on any other obligation of this Agreement unless, before the end of the thirty(30) day period. LICENSEE has cured the breach or default and provides LICENSOR written notification stating the manner of cure;

 

(d)

 

at any time by mutual written agreement between the Parties.

 

11. OBLIGATION UPON TERMINATION.

 

Upon the Termination of this Agreement for any reason, all licenses granted to LICENSEE shall terminate and all rights granted herein shell immediately revert to LICENSOR. LICENSEE shall have thirty(30) days after the date of Termination to fulfill any orders for Licensed Products received prior to the Termination of this Agreement, Otherwise, LICENSEE shall immediately cease all uses of the Invention. Patent Rights. Technology Rights, and Licensed Mark, and any making, marketing, promotion or sales of the Licensed Products upon such Termination. Termination shall not relieve the Parties from their respective duties regarding Indemnity (Section 8) or Confidentiality (Section 12). Termination of the license shall be in addition to and not in lieu of any equitable remedies available to the Parties. No Termination of this Agreement shall in any way relieve LICENSEE of its obligation to pay any amounts due to LICENSOR at the time of Termination or relieve either Party of its obligation to fulfill any other obligations to the other Party incurred prior to such Termination. In the event of termination of this Agreement for any reason, all Sublicenses which may have been granted by Licensee under the terms of Sublicensee’s existing sublicense agreement with LICENSEE by advising LICENSOR of its election in writing within thirty (30) days of Sublicensee’s receipt of written notice of such termination if provided for in the sublicense agreement.

 

12. CONFIDENTIALITY.

 

The terms of this Agreement are and shall remain confidential and neither Party shall disclose (other than to their respective attorneys and/or accountants or other agents and advisors on a “need to know” basis) any specific terms hereof without the Party’s written consent.

 

13. GOVERNING LAW.

 

After good faith compliance with Section 14, below, all actions or proceedings arising in connection with this Agreement shall be tried and litigated exclusively in the State and Federal courts located in Bourbon County, in the Commonwealth of Kentucky, United States of America. The aforementioned choice of venue is intended by the Parties to be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the Parties with respect to or arising out of this Agreement in any jurisdiction other than that specified in this Section 13. Each Party hereby waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this Section 13, and stipulates that the State and Federal courts located in Bourbon County, in the Commonwealth of Kentucky. United States of America, shall have in persona jurisdiction and venue over each of them for the purpose of litigating, controversy, or proceeding arising out of or related to this Agreement. Each Party hereby authorizes and accepts service of process sufficient for personal jurisdiction in any action against it as contemplated by this Section 13 by registered or certified mail, return receipt requested, postage prepaid, to the address for the giving of notices as set forth in Section 17. Any final judgment rendered against a Party in any action or proceeding shall be conclusive as to the subject of such final judgment and may be enforced in other jurisdictions in any manner provided by law. If any party shall commence any action or proceeding against another party in order to enforce the provisions hereof, or to recover damages as the result of the alleged breach of any of the provisions hereof, the prevailing parly therein shall be entitled to recover all reasonable cost incurred in connection therewith, including, hut not limited to, reasonable attorneys” fees.

  

6

  

 

14. DISPUTES.

 

14.1 Procedure: If a dispute arises in relation to this Agreement, the Parties shall attempt to resolve the dispute using the dispute process set out below.

 

14.2 Informal resolution: Either party can initiate the dispute resolution process by giving written notice to the other Party of the dispute (“Dispute Notice”). The Parties shall work together in good faith to resolve any dispute or difference arising between them in connection with this Agreement. Pending resolution of a dispute, each Party, to the extent it is able, shall continue to perform its obligations under this Agreement.

 

14.3 Mediation: The Parties shall attempt to resolve the dispute by negotiation. If the parties cannot resolve the dispute by negotiation within 30 days after the delivery of the Dispute Notice, the dispute shall be submitted to settlement proceedings under the ICC ADR Rules. If the dispute has not been settled pursuant to the said Rules within 45 days following the filing of a Request for ADR or within such other period as the parties may agree in writing, the parties shall have no further obligations under this paragraph. The legal place of arbitration shall be in Bourbon County, Kentucky, “united States, and the language to be used in the arbitral proceedings shall be English.

 

14.4 Interlocutory relief: Nothing in this Agreement shall prevent either party, at any time. From seeking any urgent interlocutory relief from a court of competent jurisdiction as referred to in section 13 in relation to any matter that arises under this Agreement.

 

15. WAIVER OF COMPLIANCE.

 

Any failure by LICENSOR to enforce any term or condition of this Agreement shall not be considered a waiver of LICENSOR’s right thereafter to enforce each and every term and condition of this Agreement.

 

16. ENTIRE AGREEMENT; AMENDMENTS.

 

Each Party acknowledges that is has read this Agreement understands it, and agrees to be bound by its terms. This Agreement states the entire agreement of the Parties with respect to its subject matter. Upon its execution, this Agreement shall supersede all prior negotiations, understandings and agreements, whether oral or written, with respect to the subject matter hereof, including the Original Agreement. Any modification or amendment of any provisions of this Agreement shall not be binding on each Party unless in writing and signed by the authorized representatives of both Parties.

  

7

  

 

17. NOTICES.

 

Any notice given under this Agreement shall be in writing and addressed to the other Party at the address shown for such Party listed below, or to such other address as either Party shall have designated in writing to the other, and sent by registered or certified mail, hand delivery or facsimile transmission.

 

If to LICENSOR:

 

Dan C. Short, Kentucky Technical Textiles LLC. 4440 Lexington Road, Paris, Kentucky 40361

 

If to LICENSEE:

 

Steve Abram, Performance Sports Brands, 1021 N. Sepulveda Blvd., Suite G, Manhattan Beach, California 90266

 

18. SEVERABILITY.

 

If any provision of this Agreement is declared illegal or unenforceable, the remainder of this Agreement shall be valid and enforceable to the extent permitted by applicable law. In such event, the Parties shall use their best efforts to replace the invalid or unenforceable provision by a provision that, to the extent permitted by applicable law, achieves the purpose intended under the invalid or unenforceable provision.

 

19. AUTHORIZATION.

 

Each individual signing this Agreement below warrants and represents that he or she has the full right an authority to enter into this Agreement and is duty authorized and empowered to execute this Agreement on behalf of the Party for which he or she signs.

 

20. ADVICE OF INDEPENDENT LEGAL COUNSELING COERCION.

 

20.1 Each Party warrants and represents to the other that they have obtained the advice of independent legal counsel of their choosing to review the form and content of this Agreement and advise them as to the legal effect thereof.

 

20.2 Each Party warrants and represents that they have had sufficient time to review this Agreement and decided to enter into this Agreement voluntarily, knowingly, and without coercion of any kind.

  

8

  

 

21. AUTHORIZATION. Each individual signing the Agreement below warrants and represents that he or she has the full right and authority to enter into this Agreement and is duly authorized and empowered to execute this Agreement on behalf of the Party for which he or she signs.

 

22. FACSIMILE SIGNATURES. The Parties hereby agree that faxed signatures of the Parties to this Agreement shall be as binding and enforceable as original signatures. This Agreement may be executed in multiple counterparts with the counterparts together being deemed to constitute the complete agreement of the Parties.

 

IN WITNESS HEREOF, the Parties caused their duly authorized representatives to execute this Agreement as of the Effective Date.

 

	
KENTUCKY TECHNICAL TEXTILES

	 	
PERFORMANCE SPORTS BRANDS, INC.

	  	 	  
	
by:

	
/s/ Dan Short

	 	
by:

	
/s/ Michael F. Abram

	  	 	  
	
Name: Dan Short

	 	
Name: Michael F. Abram

	  	 	  
	
Title: President

	 	
Title: President

	  	 	  
	
Date:  7/26/11

	 	
Date: 7/26/11

  

9AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made and entered as of this 1st day of January, 2010, by and between TOUR STRIKER-TGA LLC, a California Limited Liability Corporation (hereinafter referred to as “Company”) and GARY MCCORD (hereinafter referred to as “McCord”).

 

RECITALS

 

	
A.

	
Company produces a “line of golf training clubs” known as the “Tour Striker” (the “Product”). Company intends to market the Tour Striker using an infomercial and accompanying Instructional Video as well as other media promotions.

 

	
B.

	
Company wants Gary McCord (“McCord”) to endorse Tour Striker and to host the direct response television program (the “Infomercial”) and Instructional video.

 

	
C.

	
Gary McCord, a television analyst whose name, picture, voice, likeness, and endorsement are of commercial value, desires to host the Infomercial and Instructional Video and to endorse the Product on the terms and conditions set forth herein.

 

NOW THEREFORE, for and in consideration of full, fair and adequate consideration hereby deemed received, including but not limited to the mutual covenants set forth herein, the parties agree as follows;

 

	
1.

	
DEFINITIONS

 

1.1       McCord Endorsement: “McCord Endorsement” shall mean and include the name Gary McCord and all variations thereof (including pseudonyms and “nicknames” of McCord), pictures and likeness of McCord, the voice of McCord, and all other indicia of McCord, including but not limited to any description of McCord, historical facts relating to McCord, and all other matters that concern or relate in any manner or fashion to McCord.

 

1.2       Infomercial and Other Ad Formats: “Infomercial” shall mean a 28:30 minute segment as well as 30 and 60 second commercials, print ads, email ads, and online ads promoting the Tour Striker line of golf products.

 

1.3       Instructional Video: “Instructional Video” shall mean a promotional video and/or audio segment of up to 30 minutes in length that will provide an introduction to and endorsement of the Product, which the Company intends to distribute with each order of its product.

 

1.4       Product or Products: “Product” or “Products” shall mean the line of training clubs identified as Tour Striker.

  

  

  

 

1.5       Contract Territory: “Contract Territory” shall mean the whole world.

 

1.6       Contract Term: “Contract Term” shall initially mean two years, beginning January 1, 2010 through December 31, 2011, and include Option Periods.

 

1.7       Contract Year: “Contract Year” shall mean each successive twelve (12) month period commencing January 1, 2010 during the Term of this Agreement.

 

1.8       Option Period: “Option Period” shall be a Contract Year on the same terms and conditions as the initial Contract Year, except no additional lump sum payment of Twenty Five Thousand Dollar ($25,000) is due and payable to McCord as provided in the 1st Contract Year.

 

1.9       Net Sales: “Net Sales” shall mean gross revenues for Product sold by Company, its Affiliates, its or their licensees less Product returns and allowances, in the Contract Territory.

 

1.10     Royalty: “Royalty” shall mean One Percent (1%) of Net Sales.

 

2.     LICENSE TO COMPANY

 

2.1       McCord Endorsement Grant: McCord hereby grants to Company during the Contract Term and any Option Periods the non-exclusive (subject to paragraphs 2.2 and 2.3 below), perpetual right and license to use the McCord Endorsement in connection with (i) the marketing and promotion of Company's Tour Striker line of golf products. Infomercial and DVD throughout the world, and (ii) the marketing and promotion of Company in any manner as the Company shall determine in its sole and unfettered discretion. The foregoing right and license shall include, but not be limited to, Company's use of the McCord Endorsement in its advertising copy and materials as well as its broadcasts, marketing, promotions, and all other forms of media, whether radio or television advertisement, infomercials, commercials, brochures, newsletters, or other promotional material. Notwithstanding the foregoing, Company may use the McCord Endorsement only in connection with advertisement and promotion of the Tour Striker line of golf products and/or the Company, and only as specifically permitted by the terms hereof. No advertising or promotional material shall contain any statement by McCord that constitutes an endorsement by McCord of any product or service other than Tour Striker without the prior written consent of McCord.

 

2.2       McCord Covenant Not to Compete: During the Contract Term, McCord agrees not to contract the McCord Endorsement for any similar competitive line of training clubs.

 

2.3       Gary McCord Warranties: McCord warrants that no current contracts or agreements conflict with or are inconsistent with the provisions of this Agreement.

  

  

  

 

3.  GARY MCCORD ASSISTANCE

 

3.1       Creation and Hosting of the Informercial: McCord shall appear in and host the Infomercial and DVD. McCord shall provide his creative input on his segments of the Infomercial and DVD after reviewing the proposed script. McCord' services shall be rendered for approximately one (1) day of photographing (the “Shoot”). Such services shall be rendered in Arizona or California, or such other place as may be mutually determined, and will commence within 30 days, or such other date as may be mutually determined by Company and McCord. Work days shall not exceed ten (10) hours, commencing when McCord reports to Company at location or studio and concluding when Company dismisses McCord from such location or studio. Company will reimburse McCord for direct, out-of-pockct commercial air travel and lodging (2 night) expenses (without markup) incurred by McCord in connection with his obligations under this Agreement.

 

3.2       Personal Appearances: In addition to the services set forth in paragraph 3.1 above, McCord shall consult with Company and shall make himself available from time to time for publicity functions relating to the Tour Striker line of golf products. Those personal appearances and/or golf exhibitions may include, but shall not be limited to appearing on QVC, HSN, and The Golf Channel, granting press interviews for the news media, radio and television (network, satellite or cable) broadcasts to promote the Tour Striker line of golf products. Infomercial and DVD, playing golf with Company customers and contest winners, and playing host to Company clients at sales meetings, Company shall establish the schedule for these publicity functions and related services at least thirty (30) days in advance of the proposed date and shall coordinate such appearances with Tour Talent LLC (“Tour Talent”). It is understood that Company will make every effort to schedule personal appearances during the time McCord spends in or near the appearance site. Company shall provide McCord with first class travel and other reasonable out-of-pocket pocket expenses incurred by McCord in connection with each personal appearance. Fees for each of these personal appearances shall be negotiated between Company and Tour Talent and shall be in addition to the compensation otherwise provided.

 

4.  COMPENSATION

 

4.1       Minimum Guaranteed Payment: As and for the rights, licenses and services set forth in Paragraphs 2 and 3 above. Company shall pay to McCord the sum of Twenty Five Thousand Dollars ($25,000) as follows: Twelve Thousand Five Hundred Dollars ($12,500) one week prior to the filming of the “host” shoot, and Twelve Thousand Five Hundred Dollars ($12,500) within thirty (30) days following completion of the Shoot.

 

4.2       Additional Payment: If Company requires McCord's services in principal photography for more than one (1) day as provided in Paragraph 3.1 above, for a reason other than the occurrence of a force majeure or other event beyond Company's control, McCord shall be paid $12,500 for each additional day of service by McCord and $6,250 for each additional half-day or less of service by McCord. These payments shall be made to McCord within 30 days following performance of the additional days.

 

4.3       Royalty on Product Sales: In further consideration for the McCord Endorsement license and in addition to the compensation provided under 4.1 and 4.2 above, Company agrees to make the following payments to McCord during the Contract Term:

  

  

  

 

(a) During each Contract Year, Company shall pay to McCord a Royalty of One Percent (1%) of Product Net Sales sold by Company, its Affiliates and its licensees in the Contract Territory. During the First Contract Year, Royalty Payments to McCord pursuant to Section 4.3 shall be a minimum of Twelve Thousand Five Hundred Dollars ($12,500). During the Second Contract Year and each succeeding Contract Year, Royalties to Professional shall be a minimum of Twenty Five Thousand Dollars ($25,000). If Royalty Payments in a Contract Year do not exceed the minimum amount provided. McCord may terminate the Agreement upon thirty (30) days written notice to Company prior to expiration of that Contract Year. If Royalty Payments exceed the minimum amount provided in each Contract Year. Company may extend the Agreement for an Option Period.

 

(b) All payments due and payable to McCord under Section 4,3 hereof as a result of Product Sales shall be paid to McCord no later than forty five (45) days following the end of each calendar half with June 30, 2010 deemed to be the end of the first such half. Each Royalty Payment shall be accompanied by a statement showing the calendar half, the amount of Net Sales and the net amount payable to McCord in connection therewith. Further, Company shall keep and maintain accurate books and records with respect to Net Sales of the Product and the computation of Royalties with respect thereto, which books and records shall be available for inspection by McCord or his representatives at all times during business hours prior to the conclusion of a two (2) year period following the termination of this Agreement.

 

5.     ADVERTISING AND PROMOTION

 

5.1       Endorsement Approval: McCord shall approve or disapprove in advance and in writing all advertising, promotional and publicity material containing the McCord Endorsement. Only approved material shall be used for advertising, promotional, endorsement and publicity purposes. Provided that such material shall be consistent with the quality of advertising materials produced by Company in its developments generally, such consent shall not be unreasonably withheld.

 

5.2       Advertising Approval Procedure: Company agrees to submit copies of the advertising, promotional and publicity material to McCord free of cost for McCord's approval. All approved material returned to Company by McCord shall be deemed approved only if marked approved, except that, if McCord fails to approve or disapprove of any material pursuant to paragraph 5.1 within one (1) week of the date of submission to McCord by Company. McCord shall be deemed to have approved such material and Company shall be free to use such material as otherwise provided herein.

 

6.     DEBTS AND INDEMNIFICATION

 

6.1       McCord shall not be liable for any debts or obligations of Company resulting directly or indirectly from the aforesaid use and exploitation of the McCord Endorsement. Company shall make no representation or in any way imply in its actions or failure to act that McCord is or will be liable for debts or obligations of Company. Company shall indemnify and hold McCord harmless against any and all such debts and obligations. Such indemnification shall include legal expenses incurred in defense of all such claims. Further, Company shall furnish McCord with proper notice of any claims or legal procedures initiated against any of the parties herein which are based upon the services, materials or rights furnished in performance or attempted performance of this Agreement.

  

  

  

 

6.2       Company shall indemnify and hold harmless McCord from and against any and all liability for injuries to persons or damage to property arising out of or caused by McCord' performance hereunder. This indemnity shall extend to all claims made against McCord including, but not limited to, claims for commercial losses, personal injury, property damages, loss of use, consequential damages or otherwise, but shall exclude, specifically, any and all tortuous, negligent or intentional conduct undertaken by McCord not reasonably considered to be within the scope of services herein provided or contemplated, and which results in injury(ies) and/or such claims.

 

7. TERMINATION

 

7.1       If Company breaches any of the terms and provisions of this Agreement on its part to be performed, whether such breach pertains to a default in payment or otherwise, or if a petition in bankruptcy or for reorganization is filed by or against it or if any insolvency proceedings are instituted by or against it under State or Federal laws, or if it makes an assignment for the benefit of its creditors, or if a receiver is appointed for its property and business, McCord shall have the right, if he so elects, to serve upon Company a written notice of his intention to terminate this Agreement.

 

(a)       Company shall thereupon have a period of fifteen (15) days within which to remedy the breach as to monetary defaults, or as to non-monetary defaults, to commence to cure and diligently prosecute such cure to completion.

 

(b)       If Company fails duly to remedy the same or to commence to remedy as provided in this Section (a) above, then upon the expiration of the fifteen (15) days, this Agreement shall terminate and Company shall have no further rights hereunder.

 

(c)       Notwithstanding such termination, McCord's rights arising out of this Agreement or in connection therewith or existing prior thereto, shall nevertheless continue in full force and effect, including McCord's right to sue for damages caused to it by Company's breach and McCord's right to receive earned, but unpaid, compensation; provided, however, if Company pays such compensation to McCord, this Agreement shall be revived and all of Company's rights hereunder shall continue uninterrupted in full force and effect as if not terminated.

 

7.2       Company shall have the right, but not the obligation, to terminate this Agreement upon ten (10) days prior written notice to McCord in the event of: (i) McCord's death, permanent disability, conviction of a felony involving moral turpitude, or (ii) breach of the obligations of McCord under this Agreement. In the event of such termination and in addition to any other right or remedies available at law or in equity, any payments due McCord under the terms of this Agreement, as of the date of the event giving rise to Company's right to terminate, shall be pro rated to such date and the parties shall be relieved of any further obligations under the terms of this Agreement.

  

  

  

 

8.  MANAGEMENT REPRESENTATION

 

McCord acknowledges and represents that he has appointed Tour Talent as his exclusive management representative in this Agreement. Company and McCord agree that Tour Talent shall be deemed to be the exclusive management representative of McCord for the purposes of this Agreement and that all payments, notices, statements or other documents required or permitted to be given hereunder shall be sent directly to McCord in care of Tour Talent at the address provided in Section 9.1 or as Tour Talent solely may otherwise direct.

 

9.  NOTICES

 

9.1       Addresses: All notices, statements, and payments provided for by the Agreement shall be sent to the respective addresses of the parties as set forth below, unless notification of a change of address is given in writing:

	
Gary McCord

	 	
Tour Striker-TGA LLC

	
c/o Tour Talent

	 	
c/o The Golf Agency

	
843 N, Cleveland-Massillon Road, Suite 6

	 	
1021 N, Sepulveda Blvd, Ste. G

	
Akron, Ohio 44333

	 	
Manhattan Beach, CA 90266

	
Fax: 330/670-8577

	 	
Fax: 310.796.9423

	
Phone: 330/670-8588

	 	
Phone: 310.796.9422

 

9.2        Manner of Notice: Whenever notice is required to be given under this Agreement, such notice shall be given in writing, signed by the party giving notice will sent by registered US mail, postage prepaid, return receipt requested to the other party, and such notice shall be deemed received on the date shown on the return receipt.

 

10.  NO JOINT VENTURE, PARTNER

 

Nothing contained within this Agreement shall be construed to constitute the parties as partners or joint venturers. McCord shall be an independent consultant and not an employee of Company. Both Company and McCord agree that they shall have no power to obligate or bind the other in any manner whatsoever.

 

11.  ASSIGNMENT

 

This Agreement is an agreement for the personal services of McCord and shall not be assignable by McCord. Nothing herein shall prevent McCord from assigning the monetary benefits of this Agreement as he may so desire.

 

12.  CONTROLLING LAW AND ARBITRATION

 

This Agreement shall be construed in accordance with the laws of the State of California, entirely independent of the forum in which the Agreement or any part of it may come up for construction, interpretation or enforcement, and without reference to conflict of laws. All disputes, claims and controversies arising under or in connection with this Agreement shall be finally settled by binding arbitration under the rules of the American Arbitration Association and such arbitration shall take place in the City of Los Angeles, State of California. Judgment may be entered in any court of competent jurisdiction on any arbitration award so rendered. Such arbitration shall be a condition precedent to the entry of any court order except for an injunction prohibiting Company from the wrongful use of the McCord Endorsement.

  

  

  

 

13.  WAIVER MODIFICATION

 

No term hereof may be waived or modified except by writing, signed by all parties. The failure or delay of any party in enforcing any of its rights under this Agreement shall not be deemed a continuing waiver or a modification thereof, and any party may within the time provided by applicable law, commence appropriate legal proceedings to enforce any or all such rights.

 

14.  HEADINGS

 

The titles to the paragraphs and subparagraphs of this Agreement and included herein solely for convenience, are not a part of this Agreement and do not in any way limit or amplify the terms of this Agreement. All nouns, pronouns and relative terms shall be deemed to be masculine, feminine or neuter, singular or plural, as the context may indicate.

 

15.  BINDING EFFECT

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs or permitted successors, assigns and legal representatives.

 

16.  AUTHORIZATION

 

Company hereby represents that all necessary corporate proceedings have been taken by it to authorize the transaction contemplated by a duly authorized Company officer and, upon execution, shall constitute a valid and binding Agreement of in accordance with its terms.

 

17.  COUNTERPARTS

 

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

18.  ENTIRE AGREEMENT

 

This Agreement contains the entire understanding of the parties. There are no representations, warranties, promises, covenants, or undertakings, other than those hereinabove contained, and all prior and contemporaneous negotiations, discussions and agreements of every type and nature whatsoever are merged herein.

 

WHEREAS, this Agreement is made and entered as of the date first written above.

	
TOUR STRIKER-TGA LLC,

	  	
GARY MCCORD, An Individual

	 	 	 
	
By:

	
/s/ Richard Massey

	  	
By:

	
/s/ Gary McCord

	  	
Authorized Signatory

	  	  	
Gary McCord SS# ###-##-####

	  	
Co-manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]