Exhibit 10.3
▇▇▇▇ ▇▇▇▇ FINANCIAL CORPORATION
EXCLUSIVE PRODUCT LICENSE AGREEMENT
This Exclusive Product License Agreement (the "Agreement") is made as of
this 30th day of June, 1998 (the "Effective Date"), by and between ▇▇▇▇ ▇▇▇▇
Financial Corporation, a Nevada corporation located at ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ ("WCFC"), and Entity Planners, Inc., a
Nevada corporation located at ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇ ("EPI").
1. GRANT OF LICENSE.
(a) Distribution and Marketing License. Subject to the terms and
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conditions of this Agreement, and that certain Stock Purchase Agreement between
WCFC, EPI and B&C Limited Liability Company ("B&C") dated June 30, 1998 (the
"Purchase Agreement"), WCFC hereby grants to EPI an exclusive license to use,
produce, market, sell and distribute the Products listed in Exhibit A of the
Purchase Agreement in the United States of America (the "Territory"). EPI agrees
not to sell, market or distribute the Products outside the Territory boundaries
at any international seminars, or to utilize the Products and WCFC trademarks,
trade names and service marks to promote or provide offshore entity structuring
services. All speakers at EPI-organized seminars, or speakers at seminars
involving WCFC customers, shall attend the WCFC seminar training courses at
least once per quarter as offered by WCFC on a regular basis.
(b) License Conditions. EPI acknowledges and agrees that the Products
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and any copies thereof are owned or licensed by WCFC and are protected by United
States copyright laws and international treaty provisions. Therefore, EPI must
treat the Products like any other copyrighted material, and agrees not to rent,
lease or lend the Products. EPI will promptly notify WCFC of any infringements
or alterations of Products or packaging that come to EPI's attention and assist
WCFC in any prosecutions that WCFC may undertake. EPI will not remove, destroy,
obfuscate or conceal any copyright or other proprietary markings or confidential
legends placed upon or contained upon the Products, and shall reproduce all
notices and restricted rights legend on the Products as directed by WCFC. EPI
will immediately advise WCFC of any legal notices served on EPI that might
reasonably be anticipated to affect WCFC or its proprietary rights.
(c) Trademarks. Subject to the terms and conditions of this Agreement
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and the Purchase Agreement, WCFC grants EPI the non-exclusive license to use and
publish in the Territory any trade name, service ▇▇▇▇ or trademark used by WCFC
which is related to the Products, provided all such marks and names are so
indicated by appropriate symbol or designation in advertising and other
marketing activities to identify the Products. Such activities may take the form
of magazine advertising, direct mail promotions, and trade show displays and
such other activities as WCFC may approve in advance.
(d) No Other Rights Granted. Apart from the grant of rights pursuant
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to this Section, EPI shall not have the right to engage in any other licensable
activity, including but not limited to the preparation of derivative works, nor
any ownership right, title or interest, nor any security interest or other
interest, in the Products.
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2. PAYMENT OF ROYALTIES.
(a) Royalties. For each copy of the Products distributed by EPI, EPI
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shall pay WCFC a royalty in the amount and in the manner specified in the
applicable schedule in Section 2.2(b) of the Purchase Agreement (the
"Royalties"). EPI shall pay to WCFC payments of Royalties in the amounts, in the
manner, and at the times specified In Section 2.3 of the Purchase Agreement.
(b) Royalty Reports and Records. EPI shall also maintain reports and
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records of the distribution and sale of Products, as set forth in Section 2.6 of
the Purchase Agreement.
(c) Taxes. EPI shall pay (or reimburse WCFC upon invoice) all
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national, state and local sales, use, value-added and other taxes, customs
duties and similar tariffs and fees, imposed by any jurisdiction and based on
this Agreement or any deliveries made hereunder, exclusive of any income taxes
levied on WCFC's net income.
(d) Products Licensed "AS-IS". EXCEPT AS PROVIDED ABOVE, THE PRODUCTS
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ARE LICENSED "AS IS" WITHOUT WARRANTY, EXPRESS OR IMPLIED, AS TO PERFORMANCE,
MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE. THE ENTIRE RISK AS TO
THE RESULTS AND PERFORMANCE OF THE PRODUCTS IS ASSUMED BY EPI. Licensee's sole
and exclusive remedy in the event of a warranty claim hereunder is expressly
limited to the remedies in this Agreement.
3. LIMITATION OF LIABILITY. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO
EVENT SHALL WCFC OR ANYONE ELSE INVOLVED IN THE CREATION, PRODUCTION, DELIVERY
OR LICENSING OF THE PRODUCTS BE LIABLE TO EPI OR ANY THIRD PARTY FOR ANY
INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, OR ANY OTHER DAMAGES
WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS,
BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION, OR OTHER PECUNIARY LOSS)
ARISING OUT OF THE USE OR INABILITY TO USE THE PRODUCT, WHETHER OR NOT THE
POSSIBILITY OR CAUSE OF SUCH DAMAGES WAS KNOWN TO WCFC. EXCEPT IN RESPECT OF
LIABILITY WHICH IS BY LAW INCAPABLE OF EXCLUSION, IN NO EVENT SHALL WCFC'S
LIABILITY, (WHETHER BASED ON AN ACTION OR CLAIM IN CONTRACT, TORT OR OTHERWISE)
TO EPI ARISING OUT OF OR RELATING TO THE ORDER OR DELIVERY OF ANY UNIT OF A
PRODUCT EXCEED THE PER UNIT LICENSE FEE ACTUALLY PAID BY EPI TO WCFC FOR SUCH
PRODUCT.
4. GOVERNMENTAL APPROVALS; EXPORT LIMITATIONS. EPI shall at all times and
at its own expense strictly comply with all applicable laws, rules, regulations
and governmental orders, now or hereafter in effect, relating to its performance
of this Agreement. Without limiting the generality of the foregoing obligation,
EPI specifically acknowledges that each of the Products and certain information
relating to the Products supplied to EPI in
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accordance with the terms of this Agreement are subject to United States export
controls, pursuant to Export Administration Regulations, 15 C.F.R. Parts
768-799. EPI shall comply strictly With all requirements of the Export
Administration Regulations with respect to each Product. Without limiting the
generality of the foregoing obligation, EPI hereby expressly agrees that,
without the prior written authorization of WCFC and the United States
Government, EPI will not, and will cause its representatives to agree not to,
export, re-export, divert or transfer any Product to any destination, company or
person prohibited by the Export Administration Regulations or other export
control laws and regulations. EPI shall make its records available to WCFC at
WCFC's request, in order to permit WCFC to confirm EPI's compliance with its
obligations as set forth in this Section 4.
5. PROHIBITED MARKETING ACTIVITIES. In addition to the restrictions upon
the provision of offshore entity structuring services contained in Section 1(a),
in marketing the Products, EPI shall not, and shall not permit its resellers to
(i) make false or misleading representations with regard to WCFC or the
Products; (ii) employ or cooperate in the publication or employment of any
misleading or deceptive advertising with regard to the Products; (iii) make
representations, warranties or guarantees to their end users or to the trade
with respect to the specifications, features or capabilities of the Products
other than those which are consistent with the then-current WCFC-approved
documentation and materials; or (iv) enter into any contract or engage in any
practice in conflict with its obligations hereunder.
6. PROMOTIONAL MATERIALS. WCFC shall have the right of prior approval of
all documents, devices, promotional, marketing and seminar materials used in or
related to the sale, marketing, or distribution of the Products (the
"Materials") bearing its trademarks, trade names or service marks prior to their
anticipated use. Once such Materials are approved by WCFC, EPI will not need to
seek further WCFC approval of the Materials unless and until there are changes
made in the Materials. However, upon prior written notice by WCFC, use of the
Materials shall thereafter be subject to WCFC's prior review and approval of the
anticipated use.
7. INDEMNIFICATION.
(a) By WCFC. WCFC shall indemnify, defend and hold harmless EPI
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against any claim that the Products infringe any United States patent issued as
of the date of this Agreement, United States copyright, United States trademark
(provided use of such trademark has been in accordance with this Agreement), or
trade secret, provided that WCFC is given prompt notice of such claim and is
given information, reasonable assistance, and sole authority to defend or settle
the claim. If WCFC becomes aware that the products do or may infringe any such
rights, WCFC may, at its option, obtain the right to continue using and
licensing the Products, replace or modify the Products so that they become
non-infringing, or if such remedies are not reasonably available, to require
return of the Products and provide a refund of the Royalties paid with respect
to such returned Products. Should WCFC provide EPI with a modified version of
the Products, EPI shall, upon receipt of the new version of Products,
immediately cease distribution and use of the previous version of the Products.
Other than WCFC's obligation of indemnification as set forth in this Section,
WCFC shall have no liability to EPI from allegations that the Products or
activities related to the Products infringe or
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constitute wrongful use of any proprietary right. Notwithstanding anything
contained in this Agreement to the contrary, WCFC shall not be liable to EPI for
any claim arising from any alteration or modification of Products, or arising
from the distribution of an earlier version of the Products manufactured
following the delivery to EPI of a new non-infringing version of the Products
pursuant to this Section.
(b) By EPI. EPI shall be responsible for any and all claims, losses or
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damages arising out of or incurred in connection with the publishing, marketing,
or distribution of the Products by EPI, or any false, deceptive or misleading
representations or advertising with regard to WCFC or the Products; or
representations, warranties and guarantees made by EPI with respect to the
Products or the information contained in the Products. EPI agrees to indemnify
and hold WCFC harmless from and with respect to any such claim, loss or damage
(including without limitation attorney's fees and costs).
8. AGREEMENT TERMS CONFIDENTIAL. Neither party shall disclose the terms
of this Agreement to any third party except as required by law or as reasonably
required to protect or enforce a party's rights hereunder. The disclosing party
shall provide the other with prior written notice of any such required
disclosure.
9. TERM AND EFFECT OF TERMINATION.
(a) Term. The term of this Agreement will be five (5) years from the
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Effective Date unless terminated as provided herein. Thereafter, this Agreement
may be extended for a successive five (5) year term upon the agreement of both
parties to each such extension. Such renewal shall be in the form of an
amendment attached hereto as Exhibit A-1.
(b) Termination for Cause. Either party hereto may terminate this
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Agreement upon (a) 30 days written notice to the other following any material
breach or omission by the other with respect to any term, representation,
warranty, condition, or covenant hereof and (b) the failure of such other party
to cure such breach or omission prior to the expiration of such 30-day period.
This Agreement shall terminate automatically if (i) a receiver is appointed for
EPI or its property; (H) EPI makes an assignment for the benefit of its
creditors; (iii) any proceedings are commenced by, for or against EPI under any
bankruptcy, insolvency or debtor's relief law; or (iv) EPI is liquidated or
dissolved.
(c) Effect of Termination. Upon termination of this Agreement the
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rights and licenses granted to EPI hereunder will immediately cease and EPI
shall immediately stop all distribution of Products. WCFC reserves the right to
seek and obtain all other legal remedies available to it if EPI violates any
provisions hereof. EPI agrees to promptly return all Products and confidential
and proprietary information of WCFC to WCFC, including but not limited to client
lists, databases, financial information and documents, and sales and marketing
strategy, and to refrain from representing itself as an affiliate of, or service
provider to WCFC, or using any of WCFC's trademarks, trade names and service
marks after the termination date. Following the normal reporting timetable under
this Agreement as set forth in Section 2(b), EPI will render a complete and
final accounting and will promptly pay all monies due WCFC.
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(d) Survival. WCFC's rights and EPI's obligations to pay WCFC all
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amounts due hereunder, as well as the provision of Sections 1 (d), 3, 7, 8, and
9(c), will survive the termination, for any reason, of this Agreement.
11. MISCELLANEOUS. This Agreement and the Exhibits hereto contain all the
agreements, understandings, representations, conditions, warranties and
covenants, and constitutes the sole and entire agreement between the parties
hereto pertaining to the subject matter hereof and supersedes all prior
communications or agreements, written or oral, except for any prior
confidentiality or nondisclosure agreements. The terms of this Agreement shall
be binding on the parties, their subsidiaries, affiliates and any party
controlling, controlled by or under common control with, the parties, the
successors, licensees, agents, employees and associated individuals of the
parties. All modifications to this Agreement must be in writing, signed by the
parties hereto. EPI may assign and/or transfer some or all of its rights and/or
delegate some or all of its obligations under this Agreement, as long as such
assignment, transfer and/or delegation includes substantially similar terms and
conditions as those contained herein, and the prospective assignee/transferee
agrees to be bound by such terms and conditions prior to the effective date of
such assignment/transfer/delegation. The invalidity or unenforceability of any
provision hereof shall in no way affect the validity or enforceability of any
other provision. All notices provided pursuant to this Agreement shall be in
Writing and hand delivered or deposited in the United States mail first class,
postage prepaid, and addressed to the addresses set forth in the preamble, or
such other address as the party to receive the notice so designates by notice to
the other. The parties agree that this Agreement will be governed by the laws of
the State of Nevada, without regard to conflict of laws principles. Suits
relating to this Agreement shall be brought in the appropriate state or federal
court in the State of Nevada, and the parties submit to the jurisdiction of such
Nevada courts. The parties agree that injunctive relief is available for
breaches of this Agreement, without the need to prove damages or harm, or to
post any bond. In the event legal action is brought by either WCFC or EPI to
enforce the terms of this Agreement, the prevailing party shall be entitled to
recover reasonable attorney fees and expenses for any proceeding, at or before
trial and upon appeal, in addition to any other relief deemed appropriate by the
court.
This Agreement constitutes the complete agreement between WCFC and EPI, and
supersedes all prior agreements between the parties relating to the Products.
IN WITNESS WHEREOF, the parties have executed this Agreement by their duly
authorized representatives as of the date first written above.
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▇▇▇▇ ▇▇▇▇ FINANCIAL CORPORATION ("Licensor")
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
Title: President
ENTITY PLANNERS, INC. ("Licensee")
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
Title: President
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