EXHIBIT 10.19
[This Agreement now between Princeton Publishing, Inc., as assignee of G.T.
Publishing, Inc., and Xxxxx Xxx Xxxxxxx d/b/a KNC, Inc.]
LICENSING AGREEMENT BETWEEN KNC, INC. AND G.T. PUBLISHING, INC.
G.T. Publishing, Inc., hereinafter called GT, whose principal place of
business is located at 000 Xxxxxx Xxxxxx, Xxx Xxxx, XX 00000, and Xxxxx Xxx
Xxxxxxx d/b/a KNC, Inc., hereinafter called KNC, whose principal place of
business is located at 0000 Xxxxxx Xxxxxx, Xxx Xxxxx, XX 00000, hereby agree
to the following:
GT shall pay KNC an initial licensing fee of $5,000 each for Dream, Obsessions
and Stars magazines (for a total of $15,000) payable in monthly increments of
$1500 per month over the next consecutive ten (10) months beginning with May
1992. Thereafter the license fee shall be renewed with an annual fee of $1
per magazine per year during the life of this agreement.
GT shall further pay KNC a packaging fee of $5,000 per magazine issue for
finished artwork of a minimum of nine issues per year (or a minimum of one
issue of each title every five and one half weeks) for each of the following
titles: Dream, Obsessions, Stars and Numbers. Payment will be divided as one
half ($2,500) on inception of each issue of each magazine and the balance of
$2,500 per issue per magazine on delivery of each issue of each magazine to
GT's offices.
KNC shall also receive two advertising pages for each issue of each magazine
to use at its discretion providing said ads are not sold or traded in conflict
with advertising sales generated by GT. Revenues, if any, generated by the
sales of said ads will be split equally between GT KNC and will meet with GT's
approval.
KNC and GT agree to share revenues generated by the Malebox classified section
of STARS magazine beginning with the September 1992 (Vo. 1 No. 9) issue and
its related 900 ad identified as 000 000-0000, with GT receiving 70% of
combined revenues and KNC receiving 30% of combined revenues for monitoring
the 900 line and administering the forwarding of letters. KNC will provide GT
with a monthly computer report of revenues received, accompanied by a check
representing GT's 70% share.
Advertising space sales are to be handled and collected by GT.
If at any point the magazine sales of Dream, Stars, Obsessions and/or any
other replacement or newly developed GT/KNC title individually exceed a thirty
(30) percent sale, those revenues for each title generated in excess of thirty
(30) percent shall be divided evenly between GT and KNC.
GT shall also employ KNC exclusively for subscription development of all GT
magazines, licensed or otherwise, including Dream, Obsessions, Stars, Numbers,
Blueboy, Jock and Jock Collection, and any and all new gay titles, one shots
and spin offs.
GT will pay KNC three dollars and twenty-five cents ($3.25) for each new
subscription generated plus one-half dollar ($.50) per month per subscription
for file maintenance, customer service and generating mailing labels for
subscription fulfillment on new and existing subscriptions. This same
arrangement shall apply to any other magazines GT or Xxxxx Magazine
Distributors, Inc. chooses to place with KNC for subscription building. GT
will likewise offer KNC said subscription building contracts for any other
publishing entities associated with GT or Xxxxx, including, but not limited
to, Oui and Creem magazines providing KNC can match or better any other valid
bids by competitive subscription fulfillment companies.
GT shall accept responsibility for prior approved printing of brochures, cost
of mailing lists, postage, any and all peripheral charges in association with
subscription campaigns.
GT further agrees to pay Xxxxx Xxx Xxxxxxx a salary of $50,000 per year to
oversee production of magazines and to design and manage subscription
campaigns.
GT also agrees to accept all responsibility for any debts of Xxxxxxx Group,
Xxxxxxx Hills Bluebook or KNC, Inc., or the magazines herein named due to
Raven Press, Inc. and Xxxxx Distributing Company.
This agreement shall cover an initial period of sixty (60) months beginning
with the first day of June, 1992, and expiring on the thirtieth day of May,
1997. The agreement will thereafter be renewable annually with the mutual
assent of both parties three months prior to the end of the five-year
agreement and sealed by the payment and acceptance of one dollar ($1) per
year, per title for Dream, Obsessions and Stars magazines.
In the event GT elects to discontinue publishing any title herein by reason of
non-profitability, the remaining titles affected by this licensing agreement
shall remain unaffected and all terms herein enforced providing the following
conditions are met:
1) GT provides notice on issue prior to said cancellation;
2) GT agrees to transfer or convert all remaining paid subscriptions to an
existing or new GT/KNC title to be bound under the same terms of this
agreement or refund the monies due subscribers for non-received magazines and
will, in either event, hold KNC harmless from all liability resulting
therefrom.
KNC and Xxxxx Xxx Xxxxxxx agree to work exclusively for the corporation in the
publication of gay magazines. It is understood that any breach of this
exclusive agreement by Xxxxxxx or any other person working in his behalf will
automatically trigger a suit for damages and summary judgment in behalf of
GT. This covers advertising sales, production, art preparation on these or
any other gay titles KNC or Xxxxx Xxxxxxx work on.
Agreed: /s/ Xxxxx Xxx Xxxxxxx Agreed: /s/ Xxx Xxxxx
Xxxxx Xxx Xxxxxxx for G.T. Publishing, Inc.
for KNC, Inc.
Dated: 07-27-92
