USE OF MIX AND PRODUCTION EQUIPMENT SYSTEM Sample Clauses

USE OF MIX AND PRODUCTION EQUIPMENT SYSTEM. Associate recognizes the importance of the Krispy Kreme name and agrees to use his best efforts to maintain the high standards of the System. In connection with the license of the System, Associate recognizes that the Mix is an essential ingredient of the Krispy Kreme Doughnut and a key element and important factor in the uniqueness and uniformity of the System. Associate also recognizes that the Mix (1) is distinctive, (2) is made from a secret formula, (3) has been developed after many years of experimentation, (4) is considered a trade secret by Krispy Kreme and (5) is the result of careful blending of the ingredients under strict quality control to produce its unique texture and taste. Associate also recognizes that Krispy Kreme will make a profit on the sale of Mix to Associate and that the price of the Mix may be changed upon written notification of Krispy Kreme. Associate shall purchase from Krispy Kreme and from no other source and Krispy Kreme shall sell to Associate, such quantities of Krispy Kreme's Mix as shall be needed to produce and sell Krispy Kreme Doughnuts under this Agreement. Associate shall order and pay for all shipments of Mix on terms and prices currently in effect at the time of the sale. Each shipment by Krispy Kreme to Associate shall constitute a separate sale. Associate recognizes that the use of Krispy Kreme's Production Equipment System is essential to the uniqueness and uniformity of the System and is a key element in the production of Krispy Kreme Doughnuts; that the Production Equipment System (1) is the product of years of research and development by Krispy Kreme, (2) is being continually improved and (3) is considered a trade secret by Krispy Kreme; and that Krispy Kreme will make a profit or return from the sale or lease of the Production Equipment System to Associate. Associate shall purchase or lease, as shall be determined by Krispy Kreme, from Krispy Kreme and from no other source, and Krispy Kreme shall sell or lease to Associate, such numbers and components of its Production Equipment System of such size and capacity as in the opinion of Krispy Kreme shall be needed by Associate to produce and sell Krispy Kreme Doughnuts under this Agreement. If the Production Equipment System is sold to Associate, Associate shall order and pay for it on terms, conditions (which conditions include Krispy Kreme's right or option to repurchase on the termination of this Agreement) and prices as specified by Krispy Kreme. If the Pro...
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Related to USE OF MIX AND PRODUCTION EQUIPMENT SYSTEM

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