Document:

ex10x8.htm

Exhibit 10.8

 

 

LEASE AGREEMENT

 

THIS LEASE AGREEMENT ("Lease") is made and entered into this 29th day of May, 2013 between Bourbon Brothers, LLC, a Colorado limited liability company whose address is 2 N. Cascade Ave., Ste. 1400, Colorado Springs, Co 80903, herein designated as the "Landlord," and Bourbon Brothers Smokehouse and Tavern Colorado Springs, LLC, a Colorado limited liability partnership whose address is 2 N. Cascade Ave., Ste. 1400, Colorado Springs, CO 80903, herein designated as the "Tenant."

 

WITNESSETH:

 

In consideration of the rent to be paid and the covenants to be performed by Tenant hereunder, Landlord does hereby lease and demise to Tenant, and Tenant does hereby lease and take from Landlord, the Premises described below, upon the following terms and conditions:

 

	
1.  

	
PREMISES. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the following described Real Property:

 

See Exhibit "A", attached hereto and incorporated herein by reference,

 

and land, a building and parking lot generally described in Exhibit A, attached hereto and incorporated herein by reference, to be constructed by Landlord pursuant to the terms of this Lease in accordance with the design plans attached hereto (the "Improvements"), to be constructed on the lot located at 13021 Bass Pro Drive, Colorado Springs, 80921, equaling approximately 1.5 acres, all liens, encumbrances, easements, restrictions, agreements, covenants, rights of way, and any other matters or documents of record, including any document placed of record by Landlord, zoning laws and regulations affecting or governing the Premises and general and special taxes. The Real Property and the Improvements collectively are referred to herein as the "Premises."

 

	
2.  

	
TERM OF LEASE. The term of this Lease shall commence on the date on which Tenant takes possession of the Premises, referred to herein as the "Rent Commencement Date," and shall expire at midnight on the date ten years from the Rent Commencement Date, unless terminated sooner as provided in this Lease. Tenant, at its option, may extend this Lease for one additional ten-year term by providing written notice of its intent to do so at least 120 days before the Lease expires.

 

	
3.  

	
RENTAL.  Tenant hereby covenants and agrees to pay to Landlord annual Base Rent of $385,000.00 for the first sixty 60 months of the Lease term, payable in monthly installments of $32,083.33.   This Base Rent assumes the building cost does not exceed $2,000,000. Any building costs in excess of $2,000,000 will result in the Base Rent being adjusted by 11% of the difference between $2,000,000 and the actual cost, per year.  The first month and the last month installment of rent shall be due upon the Rent Commencement Date. Subsequent monthly installments shall be due on the 1st day of each month thereafter during the term hereof.   Monthly Base Rent for any partial month shall be prorated at the rate of 1/30th of the monthly rent per day.  All Base Rent paid by Tenant under this Lease to Landlord shall be by normally accepted business methods payable in advance and without notice and shall be paid to Landlord at Landlord’s address set forth above, or at such other place as Landlord may from time to time direct in writing.

 

 

 

  

  

  

	
4.  

	
RENT ADJUSTMENTS. Every 60 months from the Rent Commencement Date, the annual rental rate shall be increased by the greater of: (a) ten percent; or (b) the percent change in the average annual Consumer Price Index, for all urban consumers in the Denver­ Boulder-Greeley, Colorado metropolitan area for all items, from the calendar year in which the prior 60-month Lease period commenced to the most recent calendar year prior to the rent adjustment.

 

	
5.  

	
ADDITIONAL  RENT.

 

	
(a)  

	
During the term of the Lease, Tenant shall pay all general and special  real  and personal property taxes and assessments relating to the Premises or Tenant's personal property located on or used in connection with the Premises, all premiums for insurance maintained on the Premises by Landlord, and all  dues  and  assessments levied or charged against the Premises or its owner by Northgate Business Properties or pursuant to any covenants, which shall be Additional Rent payable to Landlord. Tenant shall pay, with each monthly rental payment, an Additional Rent Deposit, representing 1/12 of Landlord's estimate of taxes, assessments and premiums for the Lease year. As soon as feasible (but in no event later than 90 days) after the commencement of each Lease year, Landlord will furnish Tenant a statement ("Landlords Statement") showing the following:

 

	
(i)  

	
The amount of Additional Rent due Landlord for the previous Lease year, less credit for Additional Rent Deposits paid, if any;

 

	
(ii)  

	
Estimated real property taxes and assessments for the new Lease year;

 

	
(iii)  

	
Estimated insurance premiums for the new Lease year;

 

	
(iv)  

	
Estimated assessments by Northgate Business Properties or pursuant to other covenants for the new Lease year;

 

	
(v)  

	
Estimates for any other costs Landlord is entitled to as Additional Rent; and

	
(vi)  

	
The Additional Rent Deposit due monthly in the then current Lease year, including the amount or revised amount due for months prior to the rendition of the statement.

 

	
(b)  

	
Tenant shall pay to Landlord within thirty (30) days after receipt of such statement any amounts for Additional Rent then due in accordance with Landlord's Statement. Any amounts due from Landlord to Tenant pursuant to this Section shall be credited to the Additional Rent Deposit next coming due, or refunded to Tenant if the Term has already expired (which obligation shall survive such expiration) provided Tenant is not  in default hereunder.  No interest or penalties shall accrue on any amounts which Landlord

 

 

  

  

  

 

is obligated to credit to Tenant by reason of this Section. Landlord's failure to deliver Landlord's Statement or in computing the amount of the Additional Rent shall not constitute a waiver by Landlord of its right to deliver such items nor constitute a release of Tenant's obligations to pay such amounts. The Additional Rent Deposit shall be credited against Additional Rent due for the applicable Lease year. During the last complete calendar year or during any partial calendar year in which the Lease terminates, Landlord may include in the Additional Rent Deposit its estimate of Additional Rent that may not be finally determined until after the termination of this Lease. Tenants's obligation to pay Additional Rent (and Landlord's obligation to reimburse Tenant for any excess estimated payments made by Tenant) survives the expiration or termination of the Lease. Tenant will remit all taxes and insurance due as detailed in section 5(a) directly to Landlord and Landlord will pay directly to the taxing authorities and insurance provider.

 

	
(c)  

	
Landlord shall maintain books and records showing real estate taxes and assessments, insurance premiums and dues and assessments paid pursuant to any covenants. The Tenant or its representative shall have the right, for a period of one hundred fifty (150) days following the date upon which Landlord's Statement is delivered  to Tenant, to examine the Landlord's books and records with respect to the items in Landlord's Statement during normal business hours, upon written notice, delivered at least three (3) business days in advance. If Tenant does not object in writing to Landlord's Statement within one year of Tenant's receipt thereof, specifying the nature of the item in dispute and the reasons therefor, then Landlord's Statement shall be considered final and accepted by Tenant. Landlord shall promptly repay Tenant for any overpayments which Tenant or its auditors identify, together with interest thereon at the Interest Rate from the date paid by Tenant until refunded in full.

 

	
6.  

	
LATE PAYMENTS.

 

	
(a)  

	
If Tenant shall neglect or fail to pay, when the same is due and payable, any Base Rent or Additional Rent, or any other amount required to be paid under this Lease, Tenant shall pay to Landlord, in addition to such unpaid amounts, interest upon such unpaid amounts from the due date thereof to the date of payment at the rate of 12% per annum.

 

	
(b)  

	
If any installment of Base Rent or Additional Rent is not received by Landlord  from Tenant by the 10'" day of the month for which such installment is due, Tenant shall immediately pay to Landlord, in addition to any interest on delinquent  amounts, a late charge equal to 1% of such installment. Landlord and Tenant agree that this late charge represents a reasonable estimate of costs and expenses related to the late payment and is fair compensation  to Landlord for its loss suffered by such nonpayment by Tenant. The interest and late charge provisions contained herein are in addition to and do not diminish or represent a substitute for any or all of Landlord's rights contained in this Lease.

 

	
7. 

	
DELIVERY AND CONDITION OF PREMISES.  Landlord shall construct the Improvements on the Real Property and shall deliver the Premises toTenant when the Improvements have been completed to the specifications contained in Exhibit A, attached

  

  

  

 

	
  

	
hereto. Landlord represents, warrants, and covenants that upon delive1y to Tenant, except for any condition owing to the act or negligence of Tenant, the Premises will conform to all applicable laws, orders, ordnances and regulations, and all parts thereof will be in good repair and in good working condition Upon delive1y to Tenant, Tenant shall have and is entitled to exclusive possession of the Premises as set forth in this Lease.

 

	
8.  

	
IMPROVEMENTS BY TENANT. Tenant shall complete the final finish of the Improvements, as described in Exhibit B. No other alterations, additions or improvements may be made and no climate regulating, air conditioning, cooling, heating or sprinkler systems, television or radio antennas, heavy equipment apparatus and fixtures, shall be installed in or attached to the Premises, without the written consent of Landlord. Unless otherwise provided herein, all such alterations, additions or improvements and systems, when made, installed in or attached to the Premises, including improvements as described in Exhibit B, shall belong to and become the property of the Landlord upon expiration or earlier termination of  the Lease and shall be surrendered with the Premises without hindrance, molestation or injury.

 

	
9.  

	
UTITILIES AND SERVICES. Utilities and services, including, without limitation, electric, water, sewer, telephone, gas, television, satelite services, Internet, garbage collection, lawn and landscaping care, shall be Tenant's sole responsibility and all accounts and invoicing for utilities and services shall be in Tenant's sole name. Tenant shall during the Term of this Lease (a) contract with a service company for the servicing and maintenance of all fire extinguishing systems and all mechanical exhaust devices, including, but not  limited  to, hoods, fans and air flues on a monthly, or more frequent if needed, basis; and (b) provide grease interceptors in compliance with all laws and regulations and service and maintain such grease interceptors on a scheduled basis

 

	
10.  

	
REPAIRS AND CARE. Tenant shall (i) maintain the Premises in as good condition as at the Rent Commencement Date, ordinary wear and tear and other matters set forth in this Lease excepted, and shall keep the Premises free of trash and debris; (ii) shall be responsible for all nonstructural repairs and all maintenance of the Premises, including, but not limited to, plumbing, sewer, window replacement or repair, or electrical repair; (iii) be responsible for maintenance  and repair of stairways, elevators, halls, sidewalks and parking areas, if any; (iv) conform to all laws, orders and regulations of the federal, state or local governments, including special districts, or of any of their departments, applicable to the Premises; (v) repair at or before the end of the term, all injury to the Premises; and (vi) at the end of the term, surrender the Premises in as good condition as at the beginning of the term, except for those matters set forth in this Section.

 

	
11.  

	
SIGNS. The Tenant shall not place, nor allow to be placed, any signs of any kind whatsoever, upon, in or about the Premises or any part thereof, except of a design and structure and in or at such places as may be indicated and consented to by Landlord in writing. Landlord or the Landlord's agents, employees or representatives may remove any such signs in order to paint or make any repairs, alterations or improvements in or upon the Premises or any part thereof, but such signs shall be replaced at the Landlord's expense upon completion of such painting, repairs, alterations or improvements. Any signs shall at all times conform to all laws and covenants applicable thereto.

 

	
12.  

	
COMPLIANCE  WITH LAWS, ETC.     Tenant  shall obtain  any  and all government

  

  

  

 

approvals required for Tenant's intended use and occupancy of the Premises, including, but not limited to any Certificate of Occupancy and/or Certificate of Use, Site Plan Approval or Site Plan Waiver, and to  promptly comply with all laws, ordinances, rules, regulations, requirements, orders, and directives of the federal, state, or local governments, including special districts, and of all their departments, agencies, bureaus and subdivisions, applicable to and affecting the use and occupancy of the Premises. Tenant shall correct and abate all nuisances, violations or other grievances in, upon or connected with the Premises and shall promptly comply with all orders, regulations, requirements and directives issued by the Board of Fire Underwriters or similar authority and of any insurance companies that have issued or are about to issue policies of insurance covering the Premises and its contents at the Tenant's own cost and expense. If any federal, state or local governmental authority, including special districts, having jurisdiction over the subject property, requires any improvements be made to the Premises as a result of Tenant's use of the subject property, Tenant shall be solely responsible for same.

 

	
13.  

	
LIABILITY INSURANCE. At the Tenant's sole expense, the Tenant shall obtain and maintain, during the Term, public liability insurance naming the Landlord, its agents and the Tenant as insureds against any and all claims for injury to or death of persons or loss or damage to property occurring upon, in or about the Premises. Such insurance shall afford minimum protection of $1,000,000.00 with respect to bodily injury to or death of any one person, $1,000,000.00 with respect to bodily injury or death in any one occurrence or accident, and $1,000,000.00 for property damage. The Tenant waives all rights of recove1y against the Landlord or Landlords' agents, employees or other representatives for any loss, damages or injury of any nature whatsoever to property or persons for which the Tenant is insured. The Tenant shall obtain from Tenant's insurance carriers and will deliver to the Landlord, waivers of the subrogation rights under the respective policies.

 

	
14.  

	
INDEMNIFICATION. The Tenant also agrees to and shall save, hold and keep harmless and indemnify the Landlord, its  officers, directors, members, shareholders, partners, lenders, agents and employees from and for any and all demands, losses, damages, claims, suits, actions, judgments, fines, penalties, payments, expenses, costs, attorney fees and investigation costs wholly or partially resulting from any acts or omissions by the Tenant or the Tenant's agents, employees, guests, licensees, invitees, contractors, subtenants, assignees or successors, or for any cause or reason whatsoever arising out of or by reason of the occupancy by the Tenant or the conduct of the Tenant's business. If any action or proceeding is brought against Landlord, its officers, directors, members, shareholders, partners, lenders, employees or agents, by reason of any such claim, Tenant, upon notice from Landlord, shall defend the claim at  Tenant's expense with counsel reasonably satisfacto1y to Landlord.

 

	
15.  

	
ASSIGNMENT. The Tenant shall not, without the written consent of the Landlord, assign, mortgage or hypothecate this lease, nor sublet or sublease the Premises or any part thereof.

 

	
16.  

	
USE AND POSSESSION OF PREMISES.  Tenant, its successors or assigns may use the Premises for operation of a restaurant. Any other use shall be permitted only with the written consent of the Landlord, subject to any covenants restricting use of the Premises. The Tenant shall not occupy or use the Premises or any part thereof, nor permit or suffer the same to be occupied or used for any purposes other than as herein limited, nor for any purpose deemed unlawful, disreputable, or extra hazardous, on account of fire or other casualty. Tenant shall not use, store, manufacture or in any manner bring upon the

 

  

  

  

 

Premises any hazardous wastes, hazardous chemicals, hazardous substances or petroleum products, except to the extent reasonable and common for the operation of a restaurant.

 

	
17.

	
SUBORDINATION. This Lease and Tenant's rights under this Lease are subject and subordinate to any first mortgage, first deed of trust, or other first lien encumbrance or indenture, together with any renewals, extensions, modifications, consolidations, and replacements thereof that now or at any subsequent time affects the Premises or any interest of Landlord in the Premises or Landlord's interest in this Lease and the estate created by this Lease. Tenant agrees to execute, acknowledge and deliver to Landlord, at any time and from time to time, upon demand by Landlord, documents requested by Landlord, any mortgage or any holder of a deed of trust or other instrument described in this section, to confirm or effect the subordination provided herein. Any refusal by Tenant to execute and deliver such documents shall be a material breach of this Lease.

 

	
18.  

	
ESTOPPEL CERTIFICATE. Landlord and Tenant agree at any time and from time to time, upon not less than 20 days' prior written request by either of them to the other, to execute, acknowledge and deliver to the requesting party a statement in writing ce1iifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified, and stating the modifications), and the date to which the rental and other charges have been paid in advance, if any, it being intended that any such statement delivered pursuant to this section may be relied upon by any prospective purchaser of the fee, or mortgagee or assignee of any mortgage upon the fee or leasehold interest in the Premises, or by any assignee of the Tenant.

 

	
19.  

	
CONDEMNATION. If the Premises, or the land or property of which the Premises are a part, or any po1iion thereof, is taken under eminent domain or condemnation proceedings, or is sold or conveyed in lieu of any formal eminent domain or condemnation proceedings or actions, then this Lease shall terminate, and the term thereof shall end as of the date possession is taken. Tenant shall have no claim or right to claim or be entitled to any portion of any amount that may be awarded as damages or paid as the result of such taking or sale; and all rights of the Tenant to damages, if any, are hereby assigned to the Landlord.

 

	
20.  

	
FIRE AND OTHER CASUALTY. Tenant shall immediately notify Landlord of any fire or other casualty at the Premises. If the Premises is damaged by fire or other casualty, but not so as to render the Premises untenantable, the Landlord shall repair the same as speedily as practicable, but the Tenant's obligation to pay the rent hereunder shall not cease. If, in the opinion of the Landlord, the Premises be so extensively and substantially damaged as to render it untenantable, then the rent shall cease until such time as the Premises shall be made tenantable by the Landlord. However, if, in the opinion of the Landlord, the Premises be totally destroyed or so extensively and substantially damaged as to require practically a rebuilding thereof, then Landlord shall either: (a) notify Tenant that the Lease is terminated; or (b) notify Tenant that Landlord intends to rebuild the Premises, in which case, rent shall be abated from the date of the fire or other casualty until issuance of a certificate of occupancy for the Premises, during which time Tenant may terminate this Lease by written notice to Landlord. In no event however, shall the provisions of this clause become effective or be applicable, if the fire or other casualty results from the carelessness, negligence or improper conduct of the Tenant or the Tenant's agents, employees, guests, contractors, licensees, invitees, subtenants, assignees or successors. In such case, the Tenant's liability for the payment of the rent and the performance  of all the covenants,

  

  

  

conditions and terms hereof on the Tenant's part to be performed shall continue and the Tenant shall be liable to the Landlord for the damage and loss suffered by the Landlord. Tenant shall repair all damages caused to the Premises by vandalism or burglary.

 

	
21.  

	
REIMBURSEMENT OF LANDLORD. If the Tenant shall fail or refuse to comply with and perform any conditions and covenants of this Lease, the Landlord may if the Landlord so ·elects, carryout and perform such conditions and covenants, at the cost and expense of the Tenant. All costs and expenses incurred by Landlord pursuant to this section shall be Additional Rent and shall be due and payable within 15 days after written demand from Landlord to Tenant. This remedy shall be in addition to any other remedies the Landlord may have upon Tenant's breach of any of the covenants and conditions in this Lease.

 

	
22.  

	
INSPECTION AND REPAIR. Landlord, its agents, employees or other representatives, may enter into and upon the Premises, or any pmt thereof, at all reasonable hours, for the purpose of examining the same or making such repairs or alterations therein as may be necessary for the safety and preservation thereof. This clause shall not be deemed to be a covenant by the Landlord nor be construed to create an obligation on the part of the Landlord to make such inspection or repairs.

	
23.

	
RIGHT TO EXHIBIT. Landlord, its agents,  employees  or  other  representatives,  may enter into and upon the Premises, or any part thereof, at all reasonable hours, to show the premises to persons wishing to rent or purchase the same. Beginning 90 days prior to the expiration of this Lease, the Landlord , its agents, employees or other representatives, shall have the right to place notices on the front of the Premises or any part thereof, offering the Premises for rent or for sale; and the Tenant hereby agrees to permit the same to remain thereon without hindrance or molestation.

 

	
24.  

	
INCREASE OF INSURANCE RATES.  If for any reason it shall be impossible to obtain fire and other hazard insurance on the buildings and improvements of which it is a part, in an amount and form and with insurance companies acceptable to the Landlord, the Landlord may, if the Landlord so elects at any time thereafter, terminate this Lease, upon giving the Tenant fifteen days notice in writing of such termination.

 

	
25.  

	
LANDLORD'S REMEDIES ON DEFAULT.

 

	
(a)  

	
The failure of Tenant to perform each covenant made under this Lease, including any abandonment of the Premises by Tenant, shall constitute a default hereunder. However, Landlord shall not commence any action to terminate Tenant's right of possession as a consequence of a default until the period of grace with respect thereto, if any, has  elapsed.

 

	
(i)  

	
Tenant shall have a period of three (3) days from the date of written notice from Landlord within which to cure any default in the payment of any monetary obligations of Tenant under this Lease.

 

	
(ii)  

	
Tenant shall have a period of fifteen (15) days from the date of written notice from Landlord within which to cure any other default under this Lease which is capable  of being  cured; provided,  however, that with

  

  

  

 

	
  

	
respect  to  any  curable  default  which  cannot  reasonably  be  cured within fifteen (15) days, the default shall not be deemed to be uncured if Tenant commences to cure within fifteen (15) days from Landlord's notice and thereafter prosecutes diligently and continuously  to  completion  all acts required to cure the default.

 

	
(b)  

	
If Tenant fails to cure a default, Landlord shall have the following rights and remedies in addition to any other rights and remedies available to Landlord at law or in equity:

 

	
(i)  

	
The right to continue this Lease in effect and to enforce all of Landlord's rights and remedies under this Lease, including the right  to  recover rent as it becomes due, for so long as Landlord does not terminate Tenant's right to possession. Acts of maintenance or preservation, eff01is to relet the Premises, or the ex parte appointment of a receiver upon Landlord's initiative to protect its interest under this  Lease shall not constitute a termination of Tenant's right to possession;

 

	
(ii)  

	
The right to terminate this Lease by giving notice to Tenant in accordance with applicable law. Tenant shall be entitled to retain possession of the Premises for a period of one hundred twenty (120) days following service of such notice;

 

	
(iii)  

	
If Tenant has vacated the Premises, the right and power to enter the Premises and remove therefrom all persons and property, to store such property in a public warehouse or elsewhere at the cost of and for the account of Tenant. Landlord may from time to time sublet the Premises or any part thereof for such term or terms (which may extend beyond the Term of this Lease) and at such rent and such other terms as Landlord in its discretion may deem advisable, with the right to make alterations  and repairs to the Premises. Rents received from such subletting shall be applied first, to payment of any indebtedness other than rent due hereunder, from Tenant to Landlord; second, to payment of any costs of such subletting and of such alterations and repairs; third, to payment of rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of future  rent  as  the  same  becomes due hereunder. Such deficiency shall be calculated and paid monthly. No taking possession of the Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease unless a written notice of such intention is given to Tenant. Notwithstanding any such subletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach; and

 

	
26.

	
 REMOVAL OF TENANT'S PROPERTY. Any equipment, fixtures, goods or other prope1iy of the Tenant not removed by the Tenant upon the termination of this Lease, or upon any quitting, vacating or abandonment of the Premises by the Tenant, or upon the Tenant's eviction, shall be considered as abandoned and the Landlord shall have the right, without any notice to the Tenant, to sell or otherwise dispose of the same, at the expense of the Tenant, and shall not be accountable to the Tenant for any part of the proceeds for such, sale, if any.

  

  

  

	
27.

	
NON-LIABILITY OF LANDLORD. The Landlord shall not be liable for, and Tenant hereby releases and waives any claim against Landlord arising out of, any damage or injury which may be sustained by the Tenant or any other person, as a consequence of the failure, breakage, leakage or obstruction of water, plumbing, steam, sewer, waste or soil pipes, roof, drains, leaders, gutters, valleys, downspouts or the like or of the electrical, gas, power, conveyor, refrigeration, sprinkler, air conditioning or heating systems, elevators, or hoisting equipment or by reason of the elements; or attributable to any interference with, interruption of or failure beyond the control of the Landlord, of any services to be furnished or supplied by the Landlord.

 

	
28.  

	
NON-WAIVER OF LANDLORD. The various rights, remedies, options and elections of the Landlord, expressed herein, are cumulative, and the failure of the Landlord to enforce strict performance by the Tenant of the conditions and covenants of this Lease or to exercise any election or option or to resort or have recourse to any remedy herein confirmed or the acceptance by the Landlord of any installment of rent after any breach by the Tenant, in any one or more instances, shall not be construed and deemed to be a waiver or a relinquishment for the future by the Landlord of any such conditions and covenants, options, elections or remedies, but the same shall continue in full force and effect.

	
29.  

	
NON-PERFORMANCE BY LANDLORD.  This lease and the obligation of the Tenant to pay the rent hereunder and to comply with the covenants and conditions hereof, shall not be affected, curtailed, impaired or excused because of the Landlord's inability to supply any service or material called for herein, by reason of any rule, order, regulation or preemption by any governmental entity, authority, department, agency or subdivision or for any delay which may arise by reason of negotiations for the adjustment of any fire or other casualty loss or because of strikes or other labor trouble or for any cause beyond the control of the Landlord.

 

	
30.  

	
SEVERABILITY. The terms, conditions, covenants and provisions of this Lease shall be deemed to be severable. If any clause or provision herein contained shall be adjudged to be invalid or unenforceable by a court of competent jurisdiction or by operation of any applicable law, it shall not affect the validity of any other clause or provision herein, but such other clauses or provisions shall remain in full force and effect.

 

	
31.  

	
NOTICES. All notices required under the terms of this Lease shall be given and shall be completed by hand-delivery or mailing such notices by certified or registered mail, return receipt requested, to the address of the parties as shown at the head of this Lease or to such other address as may be designated in writing, which notice of change of address shall be given in the same manner.

 

	
32.  

	
TITLE AND QUIET ENJOYMENT. The Landlord covenants and represents that the Landlord is the owner of the Premises and has the right and authority to enter into, execute and delivery this Lease and does further covenant that the Tenant, on paying the rent and performing the conditions and covenants herein contained, shall and may peaceably and quietly have, hold and enjoy the Premises for the term of the Lease.

 

	
33.

	
TERMINATION  BASED  ON PURCHASE  AGREEMENT.   The Landlord possesses limited rights to compel the prior owner of the Real Estate to purchase the Real Estate back from Landlord. Landlord shall provide Tenant written notice of Landlord's exercise of the right to compel repurchase within 10 days after exercise of such right and this Lease shall terminate upon delivery of such notice.

 

 

  

  

  

 

 

	
34.  

	
ENTIRE CONTRACT. This Lease contains the entire contract between  the  parties relating to the subject matter of this Lease. No additions, changes or modifications, renewals or extensions hereof shall be binding unless reduced to writing and signed by the Landlord and the Tenant.

 

	
35.  

	
MECHANICS LIENS. No one shall have any lien or claim against the Landlord or Landlord's interest in the Premises for work done or materials supplied at the insistence of Tenant. If any mechanics' or other liens are created or filed against the Premises, or the land upon which it is located, by reason of labor performed or materials furnished for the Tenant in the erection, construction, completion, alteration, repair or addition to any building or improvement, the Tenant shall upon demand, at the Tenant's own cost and expense, cause such lien or liens to be satisfied and discharged of record together with any Notices of intent that may have been filed.

	
36.  

	
SECURITY. The Tenant has this day deposited with the Landlord the sum of $32,083.33, representing one (1) month of rent as security payment of the rent hereunder and the full and faithful performance by the Tenant of the covenants and conditions herein. Said sum shall be returned to the Tenant, without interest, after the expiration of the term hereof, provided that the Tenant has fully and faithfully performed all such covenants and conditions and is not in arrears in rent. During the term hereof, the Landlord may, if the Landlord so elects, have recourse to such security, to make good any default by the Tenant, in which event the Tenant shall, on demand, promptly restore said security to its original amount. Liability to repay said security to the Tenant shall run with the reversion and title to the Premises, whether any change in ownership thereof be by voluntary alienation or as the result if judicial sale, foreclosure or other proceedings, or the exercise of a right of taking or entry by any mortgagee. The Landlord shall assign or transfer said security, for the benefit of the Tenant, to any subsequent owner or holder of the reversion or title to the Premises, in which case the assignee shall become liable for the repayment  thereof  as herein provided, and the assignor shall be deemed to be released by the Tenant from all liability to return such security. This provision shall be applicable to eve1y alienation or change in titled and shall in no wise be deemed to permit the Landlord to retain the security after termination of the Landlord's ownership of the reversion or title. The Tenant shall not mortgage, encumber or assign the security without the written consent of the Landlord.

 

	
37.  

	
HOLDOVER. Any rule of law to the contrary notwithstanding, in the event the Tenant remains in possession of the Premises or any part thereof subsequent to the expiration of the term hereof and such holding over shall be with the  consent of the Landlord, it shall be conclusively deemed that such possession and occupancy shall be for a tenancy from month-to-month, subject to all of the other terms and conditions of this Lease, including, without limitation, Rent Adjustments.

 

	
38.  

	
BROKERS. Neither Landlord nor Tenant has not dealt with any broker or finder with regard to the Premises  or this Lease.  Tenant  will  indemnify  Landlord  against  any  loss, liability and expense (including attorneys' fees and court costs) arising out of claim fees or commissions from anyone with whom Tenant has dealt in regard to the Premises or this Lease. Landlord will indemnify Tenant against any loss, liability and expense (including attomeys' fees and court costs) arising out of claims for fees or commissions from anyone with whom Landlord has dealt in regard to the Premises or this Lease.

 

  

  

  

 

 

	
39.  

	
RECORDATION. Tenant shall not file this Lease in the real property records of any county clerk and recorder.

	
40.  

	
INTERPRETATION. This Lease is the product of negotiations between the Parties, therefore, the rule of construction which provides that ambiguities in a contract shall be construed against the drafter shall not apply to this Lease and all Parties waive any such defense to the terms of this Lease. In all references herein to any parties, persons, entities or corporations the use of any particular gender or the plural or singular number is intended to include the appropriate gender or number as the text of the within instrument may require.

 

	
41.  

	
BINDING EFFECT; BENEFIT. All the terms covenants and conditions herein contained shall be for and shall inure to the benefit of and shall bind the respective patties hereto, and their heirs, executors, administrators,  personal or legal representatives, successors and assigns.

 

	
42.  

	
APPLICABLE LAW. This Lease is made and entered into, and shall be governed by and construed in accordance with, the laws of the State of Colorado. Any suits, proceedings, arbitrations, or other actions relating to, arising out of or in connection with this Lease shall be submitted to the jurisdiction of the comts located exclusively in the State of Colorado, City of Colorado Springs.

 

	
43.  

	
ATTORNEYS' FEES AND COSTS. In the event an arbitration, suit or action is brought by any Party to this Agreement to enforce any terms of this Agreement, or in any appeal therefrom, it is agreed that the prevailing Party shall be awarded its costs and expenses incurred in the proceeding, including without limitation, reasonable attorney fees, expert witness fees, filing fees, arbitrator fees and interest, to be fixed by the arbitrator, trial court, and/or appellate comt.

 

    IN WITNESS WHEREOF, the patties have hereunto set their hands and seals, the day and year written herein below:

 

	
LANDLORD:

 

Bourbon Brothers, LLC

 

	 	 	
TENANT:

 

Bourbon Brothers Smokehouse and Tavern Colorado Springs, LLC

	 
	
/s/ J.W. Roth

	 	 	
/s/ Robert B. Mudd

	 
	
Title:  Manager Cathedral Peaks Capital, LLC

(the acting manager of Bourbon brothers, LLC)

	 	 	
Title:  Manager Bourbon Brothers Smokehouse and Tavern LLC

	 
	
 

Date:  5-29-13

	 	 	
 

Date:  5-29-13

	 

/ex10x9.htm

Exhibit  10.9

 

 

AMENDED AND RESTATED LICENSE AGREEMENT

 

 

THIS AGREEMENT is made effective as of April 18, 2013, although it is being signed at a later date, by and between BOURBON BROTHERS, LLC, a Colorado limited liability company with an address of 2 N. Cascade Ave., Suite 1400, Colorado Springs, CO 80903 ("Licensor"), and BOURBON BROTHERS HOLDING COMPANY, LLC, a Colorado limited liability company, BOURBON BROTHERS BRAND, LLC, a Colorado limited liability company, BOURBON BROTHERS FRANCHISE, LLC, a Colorado limited liability company, BOURBON BROTHERS RESTAURANT GROUP, LLC, a Colorado limited liability company, and BOURBON BROTHERS SMOKEHOUSE AND TAVERN COLORADO SPRINGS, LLC, a Colorado limited liability company, each with an address of 2 Cascade Ave., Suite 1400, Colorado Springs, CO 80903 (hereinafter, each is a "Licensee" and together they are referred to as "Licensees"). Licensees and Licensor may be collectively referred to herein as "Parties."

 

WHEREAS, Licensor is the owner of and intends to use the service mark "Bourbon Brothers" USPTO Serial Number 85,858,267, application filed on February 23, 2013, ("Service Mark") and related Intellectual Property, defined below, in connection with the development of restaurants featuring southern-style food and beverages ("Bourbon Brothers Restaurants");

 

WHEREAS, Bourbon Brothers Holding Company, LLC ("Bourbon Brothers Holding"), a Licensee, is the parent company of the other Licensees and the other Licensees are each wholly-owned subsidiaries of Bourbon Brothers Holding;

 

WHEREAS, Bourbon Brothers Franchise, LLC ("Bourbon Brothers Franchise"), a Licensee, desires to offer franchises for Bourbon Brothers Restaurants pursuant to the terms of franchise agreements between Bourbon Brothers Franchise and third-party franchisees ("Franchisees");

 

WHEREAS, Licensor is affiliated with Licensees through common ownership and Licensor is willing to grant an exclusive license to Licensees to use and to sub-license the use of the Marks and Intellectual Property, defined below, under the terms and conditions provided herein;

 

WHEREAS, the Parties previously entered into a License Agreement dated April 18, 2013 (the "First License Agreement"), whereby Licensor granted the Licensees limited rights to use the Service Mark;

 

WHEREAS, Bourbon Brothers Holding Corporation, the predecessor of Bourbon Brothers Holding Company, LLC, signed the First License Agreement and since that time, has assigned all of its assets and liabilities to Bourbon Brothers Holding Company, LLC, its successor in interest; and

 

WHEREAS, the Parties desire to amend, supplement, and clarify certain terms of the License Agreement;

 

1

 

NOW, THEREFORE, in consideration of the mutual covenants and restrictions herein and the payment by Licensees to Licensor of $10.00, the Parties agree as follows:

 

1. GRANT.    Licensor hereby grants to Licensees the exclusive rights ("Rights"), subject to Licensor's continuing right to use the Marks in any manner, to use the Service Mark and associated trademarks, trade names, service marks, logos, brands, slogans, domain names, and identifying features, owned by Licensor or which hereafter are created and owned by Licensor (collectively, the "Marks") and certain Intellectual Property, defined below, throughout the United States in c01mection with the operation of and offer and sale of franchises for Bourbon Brothers Restaurants, the sublicensing of the Marks and Intellectual Property to Franchisees to operate Bourbon Brothers Restaurants, and to themselves use the Marks and Intellectual Property to develop and operate Bourbon Brothers Restaurants throughout the United States ("Licensed Territory"). Bourbon Brothers Franchise shall use its best efforts to promote and sell franchises for Bourbon Brothers Restaurants in the Licensed Territory. The Licensed Territory may not be expanded to include any areas outside of the United States without the express prior written consent of Licensor. Licensor agrees that no other individuals or entities, except Licensor, shall have the privilege of using the Rights in the Licensed Territory during the term of this Agreement. All Rights not specifically granted to Licensee hereunder are specifically reserved to Licensor subject to the terms and conditions as stated herein.

 

2. INTELLECTUAL PROPERTY.   The term "Intellectual Property," as used in this Agreement is defined as: (i) all manuals, designs, plans, blueprints, layouts, adve1iising and marketing materials, and methods, training programs, and all computer software, including source code, object code, firmware, development tools, files and records, and operating systems and other works, including any copyrights therein; (ii) all patents, design patents and other inventions (whether patentable or not) and improvements thereto, and all registrations associated with the foregoing; and (iii) proprietary business methods, processes and operating systems, and distinctive business formats, trade dress, trade secrets, proprietary information and know-how, customer lists, recipes, and all documentation relating to the development, operation, and offer of franchises of Bourbon Brothers Restaurants.

 

3. TERM AND RENEWAL. This Agreement shall c01mnence on the date first written above and shall continue for an initial term of 10 years unless sooner terminated as provided in this Agreement. This Agreement shall automatically renew for additional terms of 10 years each without any action required to be taken by either party, unless sooner terminated as provided in this Agreement.

 

4. SUPERVISION. Licensor shall have the right to supervise the use of the Marks for the purpose of protecting and maintaining the standards of quality associated with the Marks as decided by Licensor in Licensor's sole discretion. Licensees shall use, display, sub-license and franchise the Marks only in strict compliance with any standards that may be periodically mandated by Licensor. Licensees shall take no action which would impair Licensor's right, title and interest in and to the Marks. If Licensor, at any time, finds that the use of the Marks by a Licensee or its sublicensee is deficient in the quality and standards determined by Licensor for the use of said Marks, or is misleading in any manner, or is otherwise in violation of this Agreement, then Licensor may notify the Licensees in writing of such deficiency and the Licensees shall take such corrective measures as are necessary so that the Licensees and their sublicensees' use of the Marks is not deficient.

 

 

2

 

 

5. EQUAL STANDARDS. Licensor shall maintain and exercise adequate control and supervision over the use of the Marks at each location where Licensor uses the Marks in order to maintain the high standards of quality associated with the Marks.

 

6. NON-INTERFERENCE.    It is the express intention of the Parties to enable Licensor, on the one hand, and Licensees, on the other hand, to own, operate, license and/or franchise Bourbon Brothers Restaurants associated with the Marks without interference from the other Parties (except to the extent necessary to maintain and enhance the quality of service and good will associated with the Marks), each within their respective areas of authorized use. In furtherance of the foregoing, neither Party shall restrict nor otherwise attempt to limit the business or activities of the other Party except for such business or activity directly associated with the Marks and only as described herein.

 

7. INDEMNIFICATION. Each Licensee shall indemnify, defend and hold Licensor harmless from any claims, demands, liabilities, obligations or lawsuits against the Licensee arising out of acts or omissions related to the Licensee's use or licensing of the Marks or Intellectual Property, including, but not limited to, claims for personal injury or property damage, claims related to contracts entered into between the Licensee and Franchisees and other third parties, taxes of any kind owed by the Licensee or any other tort, contract claim, or public liability claim against the Licensee.

 

8. DISCLAIMER OF PARTNERSHIP.  Nothing herein shall be construed in any way to create a partnership or a subsidiary relationship between Licensees and Licensor, and Licensees shall not have any right, title or interest in Licensor's business except the right to use the Marks and the Intellectual Properly in c01mection with the activities of the Licensees described herein.

 

9. WARRANTY OF TITLE.   Licensor represents and warrants that to its actual knowledge, it owns all right, title and interest in and to the Marks and Intellectual Property. In addition, Licensor represents and warrants that there are no agreements currently in effect which limit the rights of Licensor to use or license the use of the Marks and there are no infringing uses actually known to Licensor that can materially affect Licensees' use and sub-license thereof. Except as expressly stated, Licensor makes no warranty, express or implied, with respect to the ownership of any rights relating to the Marks or Intellectual Property described herein. The Parties understand that local rights to the Marks may exist prior to the date of this Agreement over which the Parties have no control and/or about which the Parties currently have no knowledge.

 

10. COMPLIANCE WITH APPLICABLE LAWS. Each Licensee agrees to comply with all municipal, local, county, state or federal regulations and laws and to reasonably supervise any Franchisees who are granted sub-licenses to use the Marks and the Intellectual Property.

 

 

3

 

 

11. LICENSOR'S RIGHTS UPON LICENSEE'S DEFAULT.    Licensor shall have the right to terminate this Agreement as it relates to a defaulting Licensee upon the occurrence of any one or more of the following events of default:

 

	
a.  

	
Licensee's failure to comply with the terms and conditions of this Agreement within 30 days of receiving written notice from Licensor that Licensee is in default of this Agreement; provided, however, that if the default is of such a nature that it cannot be reasonably cured within 30 days, the cure period shall be extended for such period as Licensee is diligently pursuing a cure to completion.

 

	
b.  

	
Licensee's insolvency, which shall be defined as: (i) Licensee's failure to pay its debts as they come due; or (ii) when the fair market value of Licensee's assets are less than the value of Licensee's accrued liabilities.

 

	
c.  

	
Licensee's assignment for the benefit of its creditors or any other unapproved assignment or transfer of Licensee's rights under this Agreement.

 

	
d.  

	
The placement of Licensee's assets in the hands of a trustee or receiver.

 

Licensor may exercise its right of termination by giving the defaulting Licensee, its trustees, receivers, or assigns 30 days written notice of Licensor's election to terminate, after which this Agreement will terminate. Upon termination of this Agreement for any reason, the Licensee shall be deemed to have assigned or transferred its right, title and interest in and to any franchise or license agreement between Licensee and any Franchisee to Licensor or to any assignee that Licensor shall designate at the time of such deemed assignment or transfer and Licensee shall execute any documents reasonably required by Licensor to effectuate such assignment or transfer. Upon termination of this Agreement for any reason, Licensee shall immediately discontinue the use of the Marks and the Intellectual Property and cease to identify itself as having any relationship with Licensor or any right to use the Marks and the Intellectual Property.

 

In addition to Licensor's right to terminate this Agreement as described above, if Licensee commits a breach of any express or implied term herein, Licensor may bring an action for injunctive relief, including ex parte relief, or bring a claim for damages. All remedies shall be cumulative.

 

12. LICENSEE'S RIGHT TO TERMINATE. Each Licensee shall have the right to terminate this Agreement for any reason upon 30 days prior written notice to Licensor.

 

13. SEVERABILITY. In the event that any of the terms and conditions herein are held invalid, the remaining parts and conditions and obligations of this Agreement shall remain in full force and effect.

 

4

 

 

14. ASSIGNMENT AND TRANSFER. No Party may assign or transfer any of its rights hereunder without the prior written consent of the other Parties, and such consent shall not be unreasonably withheld, delayed or conditioned. A transfer by Licensor includes the transfer of any federal, state, or common law rights that Licensor has to the Marks and the Intellectual Property. Upon assignment or transfer, this Agreement shall inure to the benefit of the parties' respective assignees or other legal successors in interest.

 

15.  MISCELLANEOUS.

	
a.  

	
Singular-Plural.   Wherever the singular or plural are used, this Agreement shall be deemed amended to reflect the appropriate form.

 

	
b.  

	
Attorney  Fees.      If a Part commits a breach of this Agreement, the non­ defaulting Parties shall be entitled to reasonable attorneys' fees and costs, including costs of depositions taken and litigation incurred in the enforcement of any term herein or in the collection of any damages incurred as a result of such breach.

 

	
c.  

	
Integration; Modification. This Agreement contains the entire understanding of the Parties with respect to the subject matter herein contained and shall supersede and replace the First License Agreement in its entirety. The Parties may, from time to time modify, vary, or alter any of the provisions of this Agreement, but only by a written agreement duly executed by all Parties.

 

	
d.  

	
Notices. All notices, reports or other documents and communications that are required or permitted to be given to the Parties under this Agreement shall be sufficient if given in writing and delivered in person, by overnight courier, or by registered or certified mail, postage prepaid, return receipt requested, to the receiving Party at the address listed on the first page of this Agreement or to such other address as such Party may have given to the other by written notice pursuant to this Section. Notice shall be deemed given on the date of delive1y, in the case of personal delivery, or on the delivery or refusal date, as specified on the return receipt, in the case of overnight courier or registered or certified mail.

 

	
e.  

	
Governing Law. Except to the extent governed by the Lanham Act or other federal law, this Agreement shall be governed by the laws of the State of Colorado, irrespective of the choice of law rules of any jurisdiction. The Parties agree that venue and jurisdiction for any litigation arising from this Agreement shall only be proper in the state or federal court located in Denver County, Colorado. The Parties hereby consent to the personal and subject matter jurisdiction of the federal and state courts of the State of Colorado for any and all disputes arising out of this Agreement.

 

	
f.  

	
Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Agreement except by written instruments signed by the Party charged with the waiver or estoppel. No waiver shall be deemed a continuing waiver unless specifically stated therein, and the written waiver shall operate only as to the specific term or condition waived, and not for the future or as to any act other than that specifically waived.

 

 

5

 

 

	
g.  

	
Bankruptcy  of Licensor. The Parties intend that the license and right under this Agreement shall constitute a license of "intellectual property rights" within the meaning of Section 365(n) of the U.S. Bankruptcy Code and, as such, this Agreement may remain in full force and effect under such law if Licensor is insolvent, makes an assignment for the benefit of its creditors, is subject to any voluntary  or involuntary  bankruptcy  proceeding and such proceeding is not dismissed within thirty (30) days of commencement, or otherwise ceases to do business.

 

	
h.  

	
Counterparts. This Agreement may be executed in any number of counterparts and by any number of counterpart signature pages, each of which shall be an original with the san1e effect as if each of the signatures were affixed to the same instrument. Signatures may be electronic and signature pages may be transmitted electronically, and such signatures and signature pages shall be deemed original signature pages for all purposes.

 

	
  

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

 

 

6

 

	
LICENSEE:

 

BOURBON BROTHERS HOLDING COMPANY, LLC

 

	 	 	
LICENSOR:

 

BOURBON BROTHERS, LLC

	 
	
/s/ Robert B. Mudd

	 	 	
/s/ J.W. Roth

	 
	
Its:  Manager

	 	 	
 

	 
	
 

	 	 	
 

	 

 

	
LICENSEE:

 

BOURBON BROTHERS BRAND, LLC

 

	 	 	 
	
/s/ Robert B. Mudd

	 	 	 
	
Its: Manager

	 	 	 
	
  

	 	 	 

	
LICENSEE:

 

BOURBON BROTHERS FRANCHISEE, LLC

 

	 	 	 
	
/s/ Robert B. Mudd

	 	 	 
	
Its: Manager

	 	 	 
	
  

	 	 	 

 

	
LICENSEE:

 

BOURBON BROTHERS RESTAURANT GROUP, LLC

 

	 	 	 
	
/s/ Robert B. Mudd

	 	 	 
	
Its: Manager

	 	 	 
	
  

	 	 	 

	
LICENSEE:

 

BOURBON BROTHERS SMOKEHOUSE AND TAVERNS COLORADO SPRINGS, LLC

 

	 	 	 
	
/s/ Robert B. Mudd

	 	 	 
	
Its: Manager

	 	 	 
	
  

	 	 	 

	
LICENSEE:

BOURBON BROTHERS HOLDING COMPANY, LLC

	 	 	 
	
/s/ Robert B. Mudd

	 	 	 
	
Its: Manager

	 	 	 
	
  

	 	 	 

  

 

 

 

7

 

 

LICENSE AGREEMENT

 

This License Agreement (hereinafter, "Agreement") is entered into as of the 18th day of April 2013 ("Effective Date"), by and between Bourbon Brothers Holding Corporation, a Colorado corporation, Bourbon Brothers Brand, LLC, a Colorado limited liability company, Bourbon Brothers Franchise, LLC, a Colorado limited liability company, Bourbon Brothers Restaurant Group, LLC, a Colorado limited liability company, and Bourbon Brothers Smokehouse and Tavern Colorado Springs, LLC a Colorado limited liability company, each with an address at 2 North Cascade Avenue, Suite 1400 Colorado Springs, CO 80903 (hereinafter, each is a "Licensee" and together they are the Licensees) and Bourbon Brothers, LLC, a Colorado limited liability company with an address at 2 North Cascade Avenue, Suite 1400, Colorado Springs, CO 80903 (hereinafter, "Licensor"). Licensees and Licensor may each be referred to as a "Party" or together as the "Parties".

 

RECITALS

 

WHEREAS, Licensor owns the Trademark defined below.

 

WHEREAS, Licensees desire to acquire a royalty-free, non-exclusive license to the Trademark.

 

AGREEMENT

 

NOW THEREFORE, for the foregoing reasons, and in consideration of the conditions, covenants and agreements set fotih below, the receipt and sufficiency of which are hereby acknowledged, the Patties agree as follows:

 

Definitions. In addition to terms defined elsewhere in this Agreement, the following terms shall have the meanings set fotih below:

 

"Licensed Product(s)" shall mean all products that incorporate, utilize or are made with the use of the Trademark.

 

"Trademark" shall mean the trademark "Bourbon Brothers," federal serial number 85858267 with an application filing date of February 23, 2013.

 

License. Licensor hereby grants to each Licensee, a fully paid-up, nonexclusive, world­ wide, perpetual, irrevocable and royalty free license to make, have made for Licensee, use, offer to sell, sell, distribute, export or import Licensed Products and further for the use of the Trademark in the restaurant and bar industry. Use of license outside of the restaurant and bar industry shall be approved by Licensor on a case-by-case basis and an addendum to this agreement would document approval.

 

Each Licensee shall have the right to sublicense the Trademark so long as Licensee has obtained Licensor's prior written consent. Licensee shall be responsible for its sublicensee's compliance with the terms of its sublicense. The sublicense shall be no less stringent than, and shall not conflict with the tem1s of this Agreement; however, the sublicense shall not be perpetual and shall be revocable in the event the sublicensee materially breaches the terms of the sublicense.

 

  

1

  

Licensee acknowledges that the Trademarks are unique and original to Licensor and that Licensor is the owner thereof. Licensee shall not, at any time during or after the term of this Agreement, dispute or contest, directly or indirectly, Licensor's ownership and title to the Trademark or the validity thereof.

 

Consideration. In exchange for the license of the Trademark, Licensee shall pay Licensor an aggregate amount of $1.00 ("Payment") on the Effective Date.

 

1.           Modification  of Trademark.  Licensee shall not make any modifications to the Trademark. It is understood and agreed that Licensor shall retain all ownership and title in any modifications or improvements made to the Trademark, but Licensee shall have a license to use any such modifications or improvements as set forth above in Section 2.

 

Limited Rights with Respect to the Trademark.  Licensee acknowledges and agrees that Licensor is the exclusive owner of all right, title and interest in the Trademark and that Licensee has only the limited rights expressly set forth in this Agreement. Licensee shall not represent in any manner that it owns the Trademark. Licensee shall not take any action that may impair, impede or diminish any rights Licensor has in or to the Trademark.  Licensee's use of the Trademark, and any goodwill created thereby, shall inure to the benefit of Licensor. Licensee shall not, at any time during the term of this Agreement or after its termination or expiration, contest the validity or ownership of the Trademark or assist any other person in contesting the validity or ownership of the Trademark.

 

Limitations on Use.  Licensee shall not use the Trademark or portion thereof as part of any business entity name or trade name, with any prefix, suffix or other modifying words, terms, designs or symbols or in any modified form, without the prior written consent of Licensor. The following entity names are hereby consented to by Licensor: (a) Bourbon Brothers Holding Company, (b) Bourbon Brothers Brand, LLC, (c) Bourbon Brothers  Franchise, LLC, (d) Bourbon Brothers Restaurant Group, LLC, (e) Bourbon Brothers Smokehouse and Tavern Colorado Springs, LLC, and (f) Bourbon Brothers Investment,  LLC. Bourbon Brothers Investment, LLC is licensed to use the entity name of the Licensor and has no other rights to use the Trademark. Licensee shall not register or seek to register the Trademark with the United States Patent and Trademark Office or any state or foreign country. Licensee shall not use, register or seek to register as a trademark or service mark, either with the United States Patent and Trademark Office or any state or foreign country, any trademark or service mark that is confusingly similar to the Trademark.

 

Indemnification  of Use of Trademark. Either Party shall immediately notify the other Party in writing of any apparent infringement of or challenge to Licensor's or Licensees' use of the Trademark of which it becomes aware. Licensor may, at its option, control the defense of any action or proceeding; however Licensee shall pay for all expenses incurred by Licensor and Licensees in any trademark or similar proceeding disputing Licensor's or Licensee's rights to or use of the Trademark. This indemnification shall not apply to litigation between Licensor and Licensee wherein Licensees' use of the Trademark is disputed or challenged by Licensor.

 

  

2

  

 

Right to Inspect. To preserve the quality and integrity of the Trademark, Licensor and its designees have the right to enter and inspect each Licensee's business or sublicensee's businesses at all reasonable times. Licensor also has the right to inspect all materials and manner in which the Trademark is used. In the event the Trademark is not used in a manner that maintains the quality and integrity of the Trademark, as determined by Licensor, Licensor has the right to suspend the license under this Agreement until such Licensee or its sublicensees have remedied the issue.

 

Representations and Warranties by Licensee. Licensee represents and warrants that (a) it is free to enter into this Agreement; and (b) it has not, and will not, enter into any other agreement that would conflict with the terms of this Agreement.

 

Representations and Warranties by Licensor.  Licensor represents and warrants that (a) it owns all right, title, and interest in and to the Trademark on file as of the Effective Date; (b) it is free to enter into this Agreement; and (c) it has not, and will not, enter into any other agreement that would conflict with the terms of this Agreement.

 

Term: Termination. This Agreement will continue perpetually. Provided, however, in the event of a material breach, the Licensee shall cure, or cause the breach to be cured within 30 days of receiving written notice of the breach. If the breach is not cured during the 30-day period, Licensor may terminate this Agreement as to that Licensee notwithstanding that the license granted in Section 2 would otherwise be perpetual and irrevocable.

 

Notices. All notices, reports or other documents and communications that are required or permitted to be given to the Patties under this Agreement shall be sufficient if given in writing and delivered in person, by email, by overnight courier, or by registered or ce1tified mail, postage prepaid, return receipt requested, to the receiving Party at the address listed on the first page of this Agreement or to such other address as such Patty may have given to the other by written notice pursuant to this Section. Notice shall be deemed given on the date of delivery, in the case of personal delivery or confirmed receipt email, or on the delivery or refusal date, as specified on the return receipt, in the case of overnight courier or registered or certified mail.

 

Governing Law. This Agreement shall be governed by the laws of the State of Colorado, irrespective of the choice of law rules of any jurisdiction. The Parties agree that venue and jurisdiction for any litigation arising from this Agreement shall only be proper in the State of Colorado, Denver County and that no other court shall have jurisdiction over such matters. The Patties hereby consent to the personal and subject matter jurisdiction of the federal and state courts of the State of Colorado for any and all disputes arising out of this Agreement.

 

Entire Agreement. This Agreement contains the final, entire and complete understanding between the Patties as to the subject matter of this Agreement, and supersedes all prior discussions between them and/or their respective counsel. This Agreement may not be modified or terminated orally, and no claimed amendment, rescission or waiver shall be binding on a Party unless in a writing signed by a duly authorized representative of such Patty.

 

Modification. This Agreement shall not be modified except in a written instrument signed by a duly authorized representative for each Patty.

 

  

3

  

 

Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Agreement except by written instruments signed by the Party charged with the waiver or estoppel. No waiver shall be deemed a continuing waiver unless specifically stated therein, and the written waiver shall operate only as to the specific term or condition waived, and not for the future or as to any act other than that specifically waived.

 

No Joint Venture. Nothing herein contained shall be construed to place the Parties in the relationship of partners or joint ventures or agents. Neither Party shall represent to any third party that it has the authority to create any binding obligation upon the other Party.

 

Survival of Terms and Conditions. Except as otherwise specifically provided for in this Agreement, the terms and conditions of this Agreement shall survive the expiration  or termination of this Agreement to the full extent necessary for their enforcement and for the protection of the Party in whose favor they operate.

 

Cumulative Remedies. Each Party shall have all remedies available at law or in equity for breach of this Agreement, including, without limitation, termination of this Agreement, all of which remedies shall be cumulative.

 

Bankruptcy  of  Licensor.  The Parties intend that the license and right under this Agreement shall constitute a license of "intellectual prope1iy rights" within the meaning of Section 365(n) of the U.S. Bankruptcy Code and, as such, this Agreement may remain in full force and effect under such law if Licensor is insolvent, makes an assignment for the benefit of its creditors, is subject to any voluntary or involuntary bankruptcy proceeding and such proceeding is not dismissed within thirty (30) days of commencement, or otherwise ceases to do business.

 

Legal Consultation.  Each Party represents and warrants that it consulted with an attorney prior to signing this Agreement and that it was given sufficient time to do so.

 

Counterparts. This Agreement may be executed in any number of counterparts and by any number of counterpart signature pages, each of which shall be an original with the same effect as if each of the signatures were affixed to the same instrument. Signatures may be electronic and signature pages may be transmitted electronically, and such signatures and signature pages shall be deemed original signature pages for all purposes.

 

No Third-Party Beneficiary Rights.  No provision of this Agreement is intended nor shall be interpreted to provide or create any third party beneficiary rights and all provisions hereof shall be personal solely between the Parties hereto.

 

No Assigmnent.     This Agreement will not be assignable or transferable by either Licensee without the express written consent of the Licensor.

 

Further Assurances. Each Party agrees that it will take whatever action or actions as are deemed by the Parties' respective counsel to be reasonably necessary or desirable from time to time to effectuate the provisions or intent of this Agreement, and to that end, each Party agrees that it will execute, acknowledge, seal, and deliver any further instruments or documents which

 

  

  

4

  

may be necessary to give full force and effect to this Agreement or any of the provisions hereof, or to carry out the intent of this Agreement.

 

[Signature Page Follows]

 

  

5

  

 

 

IN WITNESS THEREOF, this License aud Assignment Agreement has been executed as of the date stated above.

 

	
Licensor:

 

BOURBON BROTHERS, LLC

 

	 	 	
Licensees:

 

BOURBON BROTHERS HOLDING COMPANY, LLC

 

 

	 
	
/s/ J.W. Roth

	 	 	
/s/ David Lavigne

	 
	
Name:  J.W. Roth

	 	 	
Name:  David Lavigne

	 
	
  

	 	 	
  

	 

  

	
 

	 	 	
BOURBON BROTHERS BRAND, LLC

	 
	
 

	 	 	
/s/ Robert B. Mudd

	 
	
 

	 	 	
 Robert B. Mudd, Manager

	 
	
  

	 	 	
  

	 

	 	 	 	
BOURBON BROTHERS FRANCHISE, LLC

	 
	
  

	 	 	
/s/ Robert B. Mudd

	 
	
  

	 	 	
Robert B. Mudd, Manager

	 
	
  

	 	 	
  

	 

	 	 	 	
BOURBON BROTHERS RESTAURANT GROUP, LLC

	 
	
  

	 	 	
/s/ Robert B. Mudd

	 
	
  

	 	 	
Robert B. Mudd, Manager

	 
	
  

	 	 	
  

	 

	 	 	 	
BOURBON BROTHERS SMOKEHOUSE AND TAVERN COLORADO SPRINGS, LLC

	 
	
  

	 	 	
/s/ Robert B. Mudd

	 
	
  

	 	 	
Robert B. Mudd, Manager

	 
	
  

	 	 	
  

	 

 

6

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