Document:

License Agreement

 Exhibit 10.10 
  
 LICENSE AGREEMENT 
  
 THIS LICENSE AGREEMENT (“Agreement”) is made as of the 26th day of February, 2003 (“Effective Date”) by and between AMERICAN BIRDING
ASSOCIATION, INC., a corporation organized under the laws of the State of Texas, having offices at 720 West Monument Street, Colorado Springs, Colorado 80904 (hereinafter referred to as “ABA”), and THANKSGIVING COFFEE COMPANY, a
corporation organized under the laws of the State of California, having an address of Post Office Box 1918 Fort Bragg, California 95437 (hereinafter referred to as “TCC”). 
  
 WHEREAS, ABA is a not-for-profit corporation which promotes recreational bird watching and awareness of environmental issues
concerning birds; and 
  
 WHEREAS, TCC is engaged in the sale and
distribution of coffee and coffee-related products; and 
  
 WHEREAS, ABA is the owner of the following trademarks registered with the United States Patent and Trademark Office, SONG BIRD (Reg. No. 2,399,506), AMERICAN BIRDING ASSOCIATION and Design (Reg. No. 2,026,292), and AMERICAN BIRDING
ASSOCIATION (Reg. No. 2,071,212) as well as the following unregistered trademarks, AMERICAN BIRDING ASSOCIATION and Design, BIRDERS’ EXCHANGE and BIRDERS’ EXCHANGE and Design and all rights associated therewith; and 
  
 WHEREAS, ABA is the licensee under certain license agreements with Terry
O’Nele and John Sill with rights to reproduce and distribute copies of, to prepare derivative works and to publicly display the following watercolor paintings, in whole or in part, and to sublicense and authorize others to do all of the
foregoing: 
  

	 	1.	“Black-throated Green Warbler” 

  

	 	2.	“Baltimore Oriole” 

  

	 	3.	“Indigo Bunting” 

  

	 	4.	“Ovenbird” 

  

	 	5.	“American Redstart” 

  

	 	6.	“Magnolia Warbler” and 

  

	 	7.	“Wilson’s Warbler” 

  
 (hereinafter referred to collectively as “the Works”); and 
  
 WHEREAS, ABA and TCC desire to promote the use of shade grown coffee to preserve and protect bird habitat; and 
  
 WHEREAS, TCC desires to license the use of certain of ABA’s trademarks
in connection with the sale and distribution of TCC’s shade grown coffee. 
  
 NOW, THEREFORE, for and in consideration of the mutual covenants and promises therein and hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree as follows: 

 1. Grant of License. 
  
 1.1 During the term of this Agreement and subject to ABA’s rights, ABA hereby grants to TCC, and TCC accepts, an exclusive, worldwide, non-indemnified,
royalty-bearing, limited term license to use the SONG BIRD trademark in accordance with the terms and conditions of this Agreement and only for the production, sale, advertising and promotion of shade grown coffee (hereinafter referred to as
“Licensed Product”) on the Licensed Product and on packaging, advertising and written promotional materials used or distributed in connection with the Licensed Product, subject to the provisions of Sections 5 and 7. 
  
 1.2 In addition during the term of this Agreement and subject to ABA’s rights, ABA
hereby grants to TCC, and TCC accepts, a non-exclusive, worldwide, non-indemnified, royalty-free, limited term license to use the AMERICAN BIRDING ASSOCIATION, AMERICAN BIRDING ASSOCIATION and Designs, BIRDERS’ EXCHANGE, and BIRDERS’
EXCHANGE and Design trademarks in accordance with the terms and conditions of this Agreement and only for the production, sale, advertising and promotion of the Licensed Product in conjunction with the SONG BIRD trademark on the Licensed Product and
on packaging, advertising and written promotional materials used or distributed in connection with the Licensed Product, subject to the provisions of Sections 5 and 7. 
  
 1.3 In addition during the term of this Agreement and subject to ABA’s rights, ABA hereby grants to TCC, and TCC accepts, a
non-exclusive, worldwide, non-indemnified, royalty-bearing, limited term sublicense to reproduce and distribute copies of, to prepare derivative works and to publicly display the Works, in whole or in part, only for the production, sale, advertising
and promotion of the Licensed Product in accordance with the terms and conditions of this Agreement and only for the production, sale, advertising and promotion of the Licensed Product in conjunction with the SONG BIRD trademark on the Licensed
Product and on packaging, advertising and written promotional materials used or distributed in connection with the Licensed Product, subject to the provisions of Sections 5 and 7. 
  
 1.4 The term of the license shall be for five (5) years commencing on the Effective Date, unless terminated earlier in accordance with the
provisions of Section 11 below. TCC shall have the right to affix the SONG BIRD, AMERICAN BIRDING ASSOCIATION, AMERICAN BIRDING ASSOCIATION and Designs, BIRDERS’ EXCHANGE, and BIRDERS’ EXCHANGE and Design trademarks (hereinafter referred
to as “Licensed Marks”) on or to the Licensed Product and on packaging, advertising and written promotional materials used or distributed in connection with the Licensed Product in accordance with the terms and conditions of this
Agreement. 
  
 1.5 No other right, title, or license is granted hereunder, ABA
retains all right, title and interest to the Licensed Marks and any goodwill associated therewith as well as its license rights to the Works. 
  
 2. ABA’S Representations, Membership Mailing List and Credits. 
  
 2.1 ABA warrants and represents that ABA has the right to grant to TCC all of the rights conveyed under this Agreement. TCC shall have no right, license or permissions
except as herein expressly granted. All rights not specifically transferred by this Agreement are reserved to ABA 
  
  

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 2.2 From time to time, but no less then twice per year, during the term of this Agreement, ABA agrees to make available
to TCC, at ABA’s expense, ABA’s then current membership mailing list for certain circumscribed activities aimed at increasing the market for the Licensed Product. In each instance ABA’s membership list shall be made available to TCC
upon the mutual agreement of the parties for a one time use with respect to promoting the Licensed Product only, so long as this Agreement remains in full force and effect. 
  
 2.3. TCC shall identify ABA as the owner of the Licensed Marks and shall also place the web site address
[www.americanbirding.org/Thanksgiving] on all packaging as such packaging is reprinted and in all publicity for the Licensed Product. This page shall explain the links between Song Bird Coffee and Birders’ Exchange. The Licensed Marks shall not
be conjoined with any third party’s name without ABA’s prior express written permission. 
  
 3. Royalties and Statements of Account. 
  
 3.1 TCC agrees to pay ABA a nonrefundable royalty on all sales of the Licensed Product of Fifteen Cents ($0.15) per pound (16 ounces) of Licensed Product sold. On sale of Licensed Product in packages of less than one pound (16 ounces), TCC
shall pay a nonrefundable royalty of Fifteen Cents ($0.15) per package (“Unit”). No cost incurred in the manufacture, sale, distribution, promotion or exploitation of the Licensed Product shall be deducted from any royalties due to ABA,
with TCC to have the obligation and responsibility for all such costs. Royalties shall be deemed to accrue when TCC receives payment for the Licensed Product. 
  

3.2 TCC shall furnish to ABA statements of royalties due for the periods ending December 31, March 31, June 30, and September 30 within thirty (30) days after each
respective date. Within such thirty day period TCC shall pay ABA the amounts shown to be due on the statements. Each statement shall itemize the total number of Licensed Product identified by specific type of coffee used in connection therewith, and
the total number of pounds and Units of Licensed Product sold by TCC during the quarter, and the total royalty due ABA for the period. In addition, TCC will provide ABA, within fifty (50) days after the end of each calendar year, a compliance
certificate duly executed by one of TCC’s officers certifying that TCC paid to ABA all royalties due during the just concluded year. ABA will provide TCC, within fifty (50) days after the end of each calendar year, a certificate duly executed
by one of ABA’s officers certifying the royalties paid by TCC to ABA during the just concluded year. 
  
 3.3. If ABA has not received the royalty payment as required by the foregoing Section 3.2 within thirty (30) days following the end of each calendar quarter, a monthly service charge of one-half percent (0.5%) shall
accrue thereon and become due and owing from the date on which such royalty payment became due and owing. 
  
 4. Books and Records. 
  
 4.1 TCC agrees
to keep complete and accurate books and records relating to the sale and other distribution of the Licensed Product and Related Licensed Products sold by TCC. TCC will preserve such books and records for at least five (5) years after the date of the
royalty payment to which they apply. Such books and records will be open for inspection by representatives or agents of ABA at all reasonable times, with reasonable notice given. ABA will 
  
  

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 pay the costs incurred by its representatives or agents to examine TCC’s books and records. However, if there is an
error adverse to ABA in TCC’s royalty accounting of more than five percent (5%) of the total royalties due for any year, then TCC will pay ABA within ten (10) days the costs incurred by ABA for such examination. TCC shall also pay ABA within
ten (10) days the amount necessary to correct any error. 
  
 5. Quality of
Licensed Product, Approval and Advertising. 
  
 5.1. TCC agrees that the
Licensed Product shall be of the highest standard and quality and of such style and appearance as to be best suited to their exploitation to the best advantage and to the protection and enhancement of the Licensed Product and the goodwill pertaining
thereto. The Licensed Product shall be manufactured, sold and distributed in accordance with all applicable national, state and local laws. TCC agrees to include an ABA membership application form provided by ABA in each shipment of the Licensed
Product by TCC. 
  
 5.2. In order to insure that the development, manufacture,
appearance, quality and distribution of the Licensed Product is consonant with ABA’s good will associated with its reputation, copyrights and trademarks, ABA shall have the right to approve in advance the quality of the Licensed Product and all
packaging and literature for the Licensed Product. 
  
 5.3. TCC shall be
responsible for delivering all items requiring prior approval pursuant to Section 5.2. without cost of ABA. ABA agrees not to withhold approval unreasonably. 
  
 5.4 TCC shall not release or distribute the Licensed Product without securing each of the prior approvals provided for in Section 5.2. TCC shall not depart from any
approval secured in accordance with Section 5.2. without ABA’s prior written consent. 
  
 6. Exclusive and Nonexclusive Rights. 
  
 6.1 During the term of this Agreement, TCC shall not develop, promote, distribute or sell another brand of coffee in conjunction with any other birding organization. 
  
 6.2 Nothing in this Agreement shall be construed to prevent ABA from granting other licenses for the use of the Licensed Marks and/or Works,
or from utilizing the Licensed Marks and/or Works in any manner whatsoever other than with respect to Licensed Product in the case of the SONG BIRD trademark. The foregoing notwithstanding, during the term of this Agreement, ABA will not enter into
any agreement to develop, promote, distribute or sell any brand of coffee with any person or entity other than TCC. 
  
 7. Nonacquisition of Rights. 
  
 7.1 TCC’s use of the Licensed Marks shall inure to the benefit of ABA. TCC acknowledges ABA’s rights in the Licensed Marks, and the goodwill associated
therewith. TCC shall take no action inconsistent with ABA’s rights in trademarks nor assist any third party with such an action. This includes seeking any registrations for any trademarks similar to ABA’s trademarks or derivatives thereof.
If at any time TCC acquires any rights in, or registration(s) or application(s) for the Licensed Marks or similar or derivative trademarks by operation of law or otherwise, TCC will immediately and at no expense to ABA assign such rights,
registrations, or applications to ABA, along with any and all associated goodwill. 
  

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 8. TCC’S Representations. 
  
 8.1 TCC warrants and represents that during the course of this Agreement TCC shall use its best efforts to promote the sale and distribution
of the Licensed Product and Related License Products. TCC further warrants and represents that during the course of this Agreement and for any time thereafter, TCC, or any affiliated, associated or subsidiary companies, will not copy, imitate or
authorize the imitation or copying of the Licensed Marks, or any distinctive feature of the foregoing or any other designs submitted to TCC by ABA. Without prejudice to any other remedies ABA may have, royalties as provided herein shall accrue and
be paid by TCC on all items embodying and incorporating imitated or copied Licensed Marks. 
  
 9. Registrations and Infringements. 
  
 9.1 ABA shall maintain, at its own cost, appropriate copyright, trademark and other intellectual property protection for the Licensed Marks. 
  
 9.2 TCC shall not at any time apply for or abet any third party to apply for copyright, trademark or other intellectual property protection which would affect ABA’s
ownership of any rights in the Licensed Marks or any designs incorporating same. 
  
 9.3 TCC shall notify ABA in writing immediately upon discovery of any infringements or imitations by others of any of the Licensed Marks. ABA in its sole discretion may bring any suit, action or proceeding ABA deems appropriate to protect
ABA’s rights in the Licensed Marks, including, without limitation, for copyright and trademark infringement and for unfair competition. TCC shall cooperate fully, at ABA’s expense, in any enforcement of ABA’s rights in the Licensed
Marks. The right to enforce ABA’s rights in the Licensed Marks rests entirely with ABA and shall be exercised in ABA’s sole discretion. TCC shall not commence or participate in any action or claim to enforce ABA’s rights in the
Licensed Marks. 
  
 10. Indemnification. 
  
 10.1 TCC hereby agrees to indemnify and hold ABA harmless against all liability, cost, loss,
expense (including reasonable attorney’s fees) or damages paid, incurred or occasioned by any claim, demand, suit, settlement or recovery against ABA, without limitation, arising out of the breach or claim of breach of this Agreement; the use
of the Licensed Marks by TCC; the manufacture, distribution and sale of the Licensed Product and/or Related Licensed Products; and for any alleged defects in the Licensed Product and/or Related Licensed Products. TCC hereby consents to submit to the
personal jurisdiction of any court, tribunal or forum in which an action or proceeding is brought involving a claim to which this foregoing indemnification shall apply. 
  
 11. Termination. 
  
 11.1 ABA shall have the right to terminate this Agreement by written notice to TCC upon the occurrence of any of the following: (a) TCC fails to comply with or fulfill
any of the material terms or conditions of this Agreement within a thirty (30) day cure period after TCC’s receipt of prior written notice of such failure, (b) any attempt of TCC to sublicense any of the Licensed 
  

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 Marks and/or Works or assign Agreement to any third party without the prior written consent of ABA, (c) the filing by or
against TCC of a petition for bankruptcy or judicial or administrative declaration of insolvency of Company, or in the event of government expropriation of any of the assets of TCC that relate to TCC’s activities contemplated by this Agreement,
(d) cessation of TCC’s business for any reason, (e) any challenge made by or on behalf of TCC against any of ABA’s trademarks including the Licensed Marks, (f) TCC discontinues production of shade grown coffee, removes shade grown coffee
from its mail order catalog, or discontinues shade grown coffee from the price and variety lists provided to its customers, (g) the total royalties received by ABA from TCC’s sales of the Licensed Product for a twelve month period are less than
$9,000.00, or (h) TCC ceases to use the SONG BIRD trademark for any consecutive six month period. Upon such termination, all rights granted to TCC shall revert forthwith to ABA and all royalties and other payments shall become due and payable
immediately. 
  
 11.2 TCC, as quickly as possible, but in no event later than
thirty (30) days after such termination, shall submit to ABA the statements required in Section 3 for all sales and distributions through the date of termination. ABA shall have the right to conduct an actual inventory on the date of termination or
thereafter to verify the accuracy of said statements. 
  
 11.3 Upon termination of
this Agreement, TCC shall immediately cease use of the Licensed Marks, subject to the provisions of Section 13. 
  
 11.4 If during the term of this Agreement the environmental value to bird habitat of shade grown coffee is publicly questioned by credible scientific sources, and ABA
desires to terminate this Agreement, it shall so notify TCC. If TCC does not agree to terminate this Agreement within thirty (30) days after such notice, then ABA may submit the issue to arbitration conducted in accordance with the Commercial
Dispute Resolution Rules and Procedures of the American Arbitration Association, said arbitration to take place in Colorado Springs, Colorado, with each party to pay one-half the arbitration costs, including the arbitrator’s fees. If the
arbitrator determines that, based upon the most recent credible scientific evidence, shade grown coffee has no environmental value to bird habitat, then this Agreement shall terminate immediately upon the arbitrator’s decision, which shall be
final. 
  
 11.5 In the event this Agreement is terminated in accordance with
Section 11.4 or in the event ABA ceases to promote the sale of Licensed Product by virtue of a statement to its general membership in “Birding” Magazine or other communication that ABA will no longer be associated with the Licensed
Product, TCC shall have the right to purchase the rights to the SONG BIRD trademark from ABA upon giving written notice of the intent to purchase within sixty (60) days of such termination or statement. The purchase price for the SONG BIRD trademark
shall be One Hundred Thousand and No/100 Dollars ($100,000.00). The closing shall be held within thirty (30) days of the date of the written notice of intent to purchase and the purchase price shall be paid in immediately available funds at the
closing. 
  
 11.7 In the event of termination, all payments theretofore made to
ABA shall belong to ABA without prejudice to any other remedies ABA may have. 
  
 11.8 The obligations of the parties under the provisions of Sections 3, 4, 8, 10, 11, 13, 14 and 15 shall remain in force notwithstanding the termination of this Agreement. 
  
  

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 12. Sales of Licensed Product to ABA. 
  
 12.1 During the term of this Agreement, TCC agrees to sell the Licensed Product to ABA or its affiliate ABA Sales, Inc. at TCC’s then
current lowest wholesale price reflecting TCC’s best volume discount extended to preferred customers. 
  
 13. Sell-off Right. 
  
 13.1 Provided TCC
is not in default of any material term or condition of this Agreement, TCC shall have the right for a period of ninety (90) days from the termination of this Agreement to sell inventory on hand subject to the terms and conditions of this Agreement,
including the payment of royalties on sales which continue during this additional period. 
  
 14. Limitation of Liability. 
  
 14.1
OTHER THAN AS SET FORTH IN SECTION 2.1, ABA MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND RESPECTING THE LICENSED MARKS AND WORKS, EXCLUDING THE VALIDITY OF ABA’S RIGHTS IN THE LICENSED MARKS AND WORKS AND DISCLAIMS ANY AND ALL WARRANTIES
THAT MIGHT OTHERWISE BE IMPLIED BY APPLICABLE LAW. 
  
 14.2. TO THE FULLEST EXTENT
PERMITTED BY LAW, IN NO EVENT WILL ABA BE LIABLE, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE OR BREACH OF STATUTORY DUTY), STRICT LIABILITY OR OTHERWISE, FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL LOSS, DAMAGE,
COST OR EXPENSE OF ANY KIND WHATSOEVER THAT ARISES DUE TO THIS AGREEMENT. THROUGH USE OF LICENSED MARKS, OR CLAIM OR ACTION ASSOCIATED THEREWITH, HOWSOEVER CAUSED, INCLUDING LOSS OF PROFIT, CONTRACTS, LOSS OF GOODWILL OR WASTED MANAGEMENT TIME, EVEN
IF ABA HAS BEEN ADVISED OF THEIR POSSIBILITY OR THEY ARE FORESEEABLE. ABA AGREES TO PROVIDE TCC WITH PROMPT NOTICE OF ANY SUCH CLAIMS AND SHALL PROVIDE TCC WITH REASONABLE ASSISTANCE IN THE DEFENSE OF SUCH CLAIMS. 
  
 14.3. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE ALLOCATION OF RISK CONTAINED IN THIS
AGREEMENT IS FAIR AND IS REASONABLE IN ALL THE CIRCUMSTANCES HAVING REGARD TO ALL RELEVANT FACTORS, INCLUDING EACH PARTY’S ABILITY TO RELY ON ITS OWN INSURANCE ARRANGEMENTS AND RESOURCES TO BEAR OR RECOVER ANY COSTS OR DAMAGE INCURRED FOR WHICH
THE OTHER IS NOT LIABLE. 
  
 15. Governing Law and Jurisdiction.

  
 15.1 The validity, construction and performance of this Agreement shall
be governed by the laws of the State of Colorado, without reference to conflict of laws principles. The parties agree that before any litigation can be initiated (except as provided below), any dispute between them shall be submitted to negotiation
between the Senior Management of the parties. If this is not successful, then the issue shall be submitted to non-binding mediation in front of a mediator who has at least ten years experience as an attorney representing clients in trademark
matters. Such mediation shall take place in Colorado Springs, Colorado. Each party shall be responsible for 
  

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 paying its own costs and expenses (including legal fees, if necessary) for the mediation, however, the cost of the
mediator shall be borne equally by the parties. In the event that the mediation is unsuccessful, either party may initiate litigation to address the dispute. Other than as provided in Section 11.4, any litigation arising out of or related to this
Agreement shall be brought in the United States District Court for the District of Colorado located in Denver, Colorado or the El Paso County District Court located in Colorado Springs, Colorado. Each of the parties irrevocably submits to and
accepts jurisdiction and venue of each of these courts and waives any objection to such jurisdiction and venue. Notwithstanding the foregoing, any dispute in which specific performance or injunctive relief is sought need not be submitted to
mediation, but may instead be immediately brought by the aggrieved. The prevailing party in any litigation proceeding arising out of or related to this Agreement shall be entitled, in addition to any other rights and remedies it may have, to
reimbursement for its expenses incurred in such action, including court order costs and reasonable attorney’s fees. 
  
 16. General Terms and Conditions. 
  
 16.1 Assignment. The rights granted to TCC and associated obligations hereunder are personal, and may not be assigned or sublicensed by TCC, either voluntarily, by
operation of law, or otherwise, without the prior written consent of ABA, which ABA may give or withhold in its sole discretion. Any such purported assignment or transfer shall be deemed a material breach of this Agreement and shall be null and
void. The foregoing notwithstanding, TCC may assign its rights and obligations hereunder in connection with any sale of more than 50% of its capital stock or all of its assets or in connection with any merger, reorganization, spin-off, split-up or
split-off of all or part of that party so long as the assignee agrees in writing to be bound by all terms and conditions of this Agreement. 
  
 16.2 Equitable Relief. TCC recognizes and acknowledges that breach of any covenants, agreements, or undertakings hereunder will cause ABA irreparable damage, which cannot
be readily remedied by monetary damages in an action at law, and may, in addition thereto, constitute an infringement of ABA’s intellectual property rights and rights under the laws of unfair competition. Accordingly, in the event of any
default or breach by TCC, including any action by TCC which could cause some loss or dilution of ABA’s goodwill, reputation, or rights in any trademarks, shall be entitled to an immediate injunction in addition to any other remedies available,
to stop or prevent such irreparable harm, loss, or dilution. 
  
 16.3
Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, such determination shall not affect the validity of the remaining provisions. 
  
 16.4 Waiver. The failure of any party to enforce at any time the provisions of this Agreement
shall in no way be construed to be a present or future waiver of such provisions, nor in any way affect the ability of any party to enforce each and every such provision thereafter. 
  
 16.5 Relationship of the Parties. No agency, partnership, joint venture, franchise, or employment relationship is created between ABA and
TCC as a result of this Agreement. Neither party is authorized to create any obligation, express or implied, on behalf of the other party. 
  

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 16.6 Endorsements. TCC acknowledges that ABA makes no claims on behalf of TCC as to the quality of the products or
services offered by TCC other than the Licensed Product. TCC may make the claims that ABA endorses the Licensed Product during the term of this Agreement. 
  
 16.7 Entire Agreement. This Agreement and its attachments constitute the entire agreement between the parties concerning the subject matter hereof and supersedes all
proposals, oral or written, all negotiations, conversations, and/or discussions between the parties relating to this Agreement and all past courses of dealing or industry customs. This Agreement shall be binding upon and inure to the benefit of the
parties, their successors and permitted assigns. This Agreement may not be modified, amended or changed in any way except by written agreement signed by authorized representatives of both parties. 
  
 16.8 Notices. All notices, demands, requests and consents shall be sent in writing by
certified mail, return receipt requested, and all royalty statements, payments and other communications shall be sent by first class mail, postage prepaid, to the addresses set forth below, or to such other address or the attention of such other
person given in conformity herewith, and shall be deemed to have been given when so deposited or hand delivered: 
  

			
	 ABA:
	  	 American Birding Association

	 	  	 Attn: Paul Green, Executive Director

	 	  	 Post Office Box 6599

	 	  	 Colorado Springs, CO 80934-6599

		
	 TCC:
	  	 Thanksgiving Coffee Company

	 	  	 Attn: Paul Katzeff, Chief Executive Officer

	 	  	 Post Office Box 1918

	 	  	 Fort Bragg, CA 95437

  
 16.9 Captions. The captions of this
Agreement are for convenience only and are not to be construed as part of this Agreement and shall not be construed as defining or limiting in any way the scope or intent of the provisions hereof. 
  
 16.10 Recitals. The recitals are incorporated herein by reference and made a part of this
Agreement. 
  
  

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 IN WITNESS WHEREOF, the parties have executed this License Agreement as of the date first set forth above. 
  

					
	 	 	 AMERICAN BIRDING ASSOCIATION, INC.

			
	 	 	 By:
	 	 /s/ Paul Green

	 	 	 	 	 Paul Green, Executive Director

		
	 	 	 THANKSGIVING COFFEE COMPANY

			
	[SEAL APPEARS HERE]	 	 By:
	 	 /s/ Paul Katzeff

	 	 	 	 	 Paul Katzeff, Chief Executive Officer

  

			
	 STATE OF COLORADO
	 	 )

	 	 	 ) ss:

	 COUNTY OF EL PASO
	 	 )

  
 The foregoing
instrument was acknowledged before me, a notary public, this 22nd day of February, 2003 by Paul Green, Executive
Director of American Birding Association, Inc. 
  

	
	 WITNESS my hand and official seal.

	 My commission expires: 7/3/2006

			
	 	 	 Michele A. Snider

 NOTARY PUBLIC

		
	 STATE OF CALIFORNIA
	 	 )

	 	 	 ) ss:

	 COUNTY OF MENDOCINO
	 	 )

  
 The foregoing
instrument was acknowledged before me, a notary public, this          day of February, 2003 by Paul Katzeff as Chief Executive Officer of Thanksgiving Coffee Company. 
  

			
	 WITNESS my hand and official seal.
	 	 
	 My commission expires:
                    .
	 	 
	 	 	  

	 	 	 NOTARY PUBLIC

  

 10Promissory Note

 Exhibit 10.11 
  

	
	Savings Bank
	OF MENDOCINO COUNTY
	A Full Service Commercial Bank

  
 PROMISSORY NOTE

  

															
	 Principal

	 	 Loan Date

	 	 Maturity

	  	Loan No

	  	Call/Coll

	  	Account

	  	Officer

	  	Initials

	$358,000.00	 	11-19-2004	 	12-01-2009	  	7010042308	  	51/410	  	00000000074018	  	TEB	  	 

  
 References in the
shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations. 
  

							
	Borrower:	  	 Thanksgiving Coffee Company, Inc.
 PO BOX 1918

FORT BRAGG, CA 95437
	  	Lender:	  	 Savings Bank of Mendocino County
 Main Office

PO BOX 3600
 200 N SCHOOL ST
 UKIAH, CA 95482

  

					
	Principal Amount: $358,000.00	 	Interest Rate: 7.750%	 	Date of Note: November 19, 2004

  
 PROMISE TO PAY. Thanksgiving
Coffee Company, Inc. (“Borrower”) promises to pay to Savings Bank of Mendocino County (“Lender”), or order, in lawful money of the United States of America, the principal amount of Three Hundred Fifty-eight Thousand & 00/100
Dollars ($358,000.00), together with interest at the rate of 7.750% per annum on the unpaid principal balance from November 19, 2004, until paid in full. 
  
 PAYMENT. Borrower will pay this loan in 59 regular payments of $4,307.02 each and one irregular last payment estimated at $217,987.40. Borrower’s first
payment is due January 1, 2005, and all subsequent payments are due on the same day of each month after that. Borrower’s final payment will be due on December 1, 2009, and will be for all principal and all accrued interest not yet paid.
Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; and then to any late charges. Interest on this Note is computed on a
365/365 simple interest basis; that is, by applying the ratio of the annual interest rate over the number of days in a year (366 during leap years), multiplied by the outstanding principal balance, multiplied by the actual number of days the
principal balance is outstanding. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing. 
  
 PREPAYMENT; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not
be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. In any event, even upon full prepayment of this Note, Borrower understands that Lender is entitled to a minimum interest
charge of $100.00. Other than Borrower’s obligation to pay any minimum interest charge, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing,
relieve Borrower of Borrower’s obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send
Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower will remain obligated
to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes “payment in full” of the amount owed or that is
tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Savings Bank of Mendocino County, 200 N SCHOOL ST UKIAH, CA 95482. 
  
 LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged $10.00.

  
 INTEREST AFTER DEFAULT. Upon default, the total sum due under this Note
will bear interest at the interest rate on this Note. 
  
 DEFAULT. Each of
the following shall constitute an event of default (“Event of Default”) under this Note: 
  
 Payment Default. Borrower fails to make any payment when due under this Note. 
  
 Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition
contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. 
  
 Environmental Default. Failure of any party to comply with or perform
when due any term, obligation, covenant or condition contained in any environmental agreement executed in connection with any loan. 
  
 False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Note or
the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. 
  
 Insolvency. The dissolution or termination of Borrower’s existence as a going business, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against
Borrower. 
  
 Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a
garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis
of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by
Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
  
 Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor’s estate to assume unconditionally the obligations arising under
the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. 
  
 Change in Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. 
  
 Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance
of this Note is impaired. 
  
 Cure Provisions. If any
default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same 

					
	Loan No: 7010042308	 	 PROMISSORY NOTE
 (Continued)
	 	Page 2

  
 provision of this Note
within the preceding twelve (12) months, it may be cured if Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days,
immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably
practical. 
  
 LENDER’S RIGHTS. Upon default, Lender may declare the
entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. 
  
 ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This
includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there is a lawsuit, including attorneys’ fees, expenses for bankruptcy proceedings (including efforts to
modify or vacate any automatic stay or injunction), and appeals. Borrower also will pay any court costs, in addition to all other sums provided by law. 
  
 GOVERNING LAW. This Note will be governed by, construed and enforced in accordance with federal law and the laws of the State of California. This Note has been
accepted by Lender in the State of California. 
  
 CHOICE OF VENUE. If
there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of MENDOCINO County, State of California. 
  
 DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $10.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge with
which Borrower pays is later dishonored. 
  
 COLLATERAL. Borrower
acknowledges this Note is secured by the following collateral described in the security instrument listed herein: a Deed of Trust dated November 19, 2004, to a trustee in favor of Lender on real property located in MENDOCINO County, State of
California. That agreement contains the following due on sale provision: Lender may, at Lender’s option, declare immediately due and payable all sums secured by the Deed of Trust upon the sale or transfer, without Lender’s prior written
consent, of all or any part of the Real Property, or any interest in the Real Properly. A “sale or transfer” means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or
equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or
transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. If any Borrower is a corporation, partnership or limited liability company,
transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of such Borrower. However, this option shall not be
exercised by Lender if such exercise is prohibited by applicable law. 
  
 ADDITIONAL PROVISIONS. THIS NOTE IS SECURED BY A DEED OF TRUST AND A COMMERCIAL SECURITY AGREEMENT, BOTH OF EVEN DATE HEREWITH. 
  
 DISPUTE RESOLUTION. Borrower and Lender desire to resolve quickly and efficiently any disputes that might arise between them. For any controversy, claim or
judicial action arising from or relating to this Note or any related agreement, transaction or conduct, whether sounding in contract, tort or otherwise; Judicial Reference. Where an action is pending before a court of any judicial district of the
State of California, Borrower and Lender shall each have the right to require that all questions of fact or law be submitted to general reference pursuant to California Code of Civil Procedure Section 638 et seq., and any successor statutes thereto.
(1) A single referee who is a retired superior court judge shall be appointed by the court pursuant to Code of Civil Procedure 640 and shall preside over the reference proceeding. If Borrower and Lender do not agree upon the referee, each of them
may submit to the court up to three nominees who are retired superior court judges. (2) If Borrower and Lender do not agree on how the payment of the referee’s fees and expenses will be shared, the court may apportion such fees and expenses
between Borrower and Lender in a fair and reasonable manner that is consistent with Code of Civil Procedure Section 645.1. (3) Borrower and Lender shall be entitled to discovery, and the referee shall oversee discovery and may enforce all discovery
orders in the same manner as any trial court judge. (4) The referee’s statement of decision shall contain written findings of fact and conclusions of law, and the court shall enter judgment thereon pursuant to Code of Civil Procedure Sections
644(a) and 645. The decision of the referee shall then be appealable as if made by the court. No provision of this section shall limit the right of any party to exercise self-help remedies, to foreclose against or sell any real or personal property
collateral or to obtain provisional or ancillary remedies, such as injunctive relief or appointment of a receiver, from a court of competent jurisdiction before, after, or during the pendency of any reference proceeding. The exercise of a remedy
does not waive the right of either party to resort to reference, Jury Trial Waiver. In any action pending before any court of any jurisdiction, Borrower waives, and Lender shall not have, any right to a jury trial. ATTORNEYS’ FEES, in any
action arising from or relating to this Note and subject to any limits under applicable law, the prevailing party shall be entitled to reasonable attorneys’ fees in accordance with California Civil Code Section 1717. Whether or not an action is
involved, the expenses of Lender described in the paragraph of this Note titled “Expenses” include, without limitation, attorneys’ fees incurred by Lender. 
  
 Successor Interests. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives,
successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. 
  
 NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice
describing the specific inaccuracy(ies) should be sent to us at the following address: Savings Bank of Mendocino County 200 N SCHOOL ST UKIAH, CA 95482 
  
 General Provisions. Lender may delay or forgo enforcing any of its rights of remedies under this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, waive any applicable statute of limitations, presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in
writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability, All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or
release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such
parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. 

					
	  
 Loan No: 7010042308
	 	 PROMISSORY NOTE
 (Continued)
	 	  
 Page 3

  
 PRIOR TO SIGNING THIS NOTE,
BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE. 
  
 BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. 
  
 BORROWER: 
  
 THANKSGIVING COFFEE COMPANY, INC. 
  

							
	By:	 	 COPY

	 	By:	 	 COPY

	 	 	Joan Katzeff, President of Thanksgiving Coffee Company, Inc.	 	 	 	Paul Katzeff, Secretary of Thanksgiving Coffee Company, Inc.

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