| A G R E E M E N T WHEREAS, Kings Grant
has expended considerable time and effort in the
creation and development of a unique system for
pickup and delivery of dry cleaning and laundry;
WHEREAS, Kings Grant
has innovated and developed unique methods for
the marketing, administration, quality control
and distribution of dry cleaning and laundry
pickup and delivery services;
WHEREAS, Kings Grant
desires to contract the right to develop and
service its customers by means of licensing
independent licensees in various states
throughout the United States and Canada;
WHEREAS, Kings Grant
has developed and established unique standards
and policies applicable to authorized processors
when dry cleaning or laundering the garments of
Kings Grant customers brought to such processors
by Kings Grant licensees;
WHEREAS, Kings Grant
through Licensee can arrange the availability of
adequate production capacity for suitable dry
cleaning and laundering of the items picked up by
Kings Grant licensees;
WHEREAS, Licensee
acknowledges that Kings Grant specifications,
policies and methods provide a substantial
foundation for Kings Grant's unique dry cleaning
and laundry pickup and delivery system;
WHEREAS, Licensee
desires to obtain the benefits of Kings Grant's
unique system for dry cleaning and laundry pickup
and delivery service;
WHEREAS, Licensee
desires to acquire certain rights to develop and
service Kings Grant customers, conducting
operation of its license under the name
"Kings Grant Dry Cleaning and Laundry";
WHEREAS, Kings Grant
desires to grant licensee a license to do
business as an independent contractor operating
its Kings Grant license under the terms and
conditions hereinafter set forth;
NOW THEREFORE, in
consideration of the recitals set forth above,
and the promises and the mutual covenants set
forth herein and intending to be legally bound
hereby, the parties hereto agree as follows:
1. GRANT OF LICENSE
(a) Upon the terms and
subject to the conditions of this Agreement, and
in consideration of the payments made and to be
made by Licensee, as specified in this Agreement,
Kings Grant hereby grants to Licensee, and
Licensee hereby accepts:
(1) A license to
operate a Kings Grant Dry Cleaning & Laundry
license, and
(2) A nonexclusive
license to use Kings Grant's licensed marks in
the operation of the licensed business, and any
of those marks as Kings Grant may authorize and
designate from time to time for use by Licensee.
(b) Licensee hereby
acknowledges that Kings Grant licenses Licensee
to develop and service Kings Grant customers, and
that at no time does Licensee have any right,
title, or interest in any customer serviced by
Licensee.
(c) Kings Grant
reserves the right to grant licenses at its
discretion. This Agreement affords Licensee no
rights of any kind with respect to any other
licenses that Kings Grant has granted in the past
or may grant in the future.
2. FEES PAYABLE TO
KINGS GRANT AND OTHER COSTS
In consideration of
the execution of this Agreement, Licensee shall
make payments to Kings Grant as follows:
(a) A non-returnable ($8,950) payment payable at the time of signing of the Route Licensing Agreement.
(b) A non returnable ($65) per week payment for the (5) year term of this Agreement beginning thirty (30) days following execution of this Agreement.
(c) All payments to
Kings Grant shall be non-refundable and fully
earned when paid, and entitles Licensee to the
following:
1. GENERAL BENEFITS:
Use of Kings Grant Methodology, All Trademarks,
Service Marks, Trade Names, Logo-types &
Other Commercial Symbols and Associated Goodwill;
Initial Training; Start-up Assistance, Licensee
& Processor Support.
2. UNIFORMS: Six (6)
Shirts and Winter Jacket. All garments carry the
Kings Grant logo.
3. MARKETING: The
Proprietary Kings Grant Marketing Program;
(20,000) Kings Grant Personalized Marketing
Pieces; (5,000) Kings Grant five part Carbonless
Invoices; (5,000) Kings Grant Customer Invoice
Envelopes; (50) Reusable Kings Grant Designed
Customer -Convertible Fabric Garment - Laundry
Bags; Five Hundred (500) Personalized Kings Grant
Business Cards.
(d) In consideration
for the services rendered by Processor Licensee,
Kings Grant Route Licensee shall pay Processor
Licensee fifty percent (50%) of Route Licensee(s)
gross billing to customers, including fifty
percent (50%) of any and all up-charges but
excluding any point-of-sale taxes and deposits
for reusable garment bags, for those garments
satisfactorily processed by Processor Licensee.
(e) Payment to
Processor Licensee shall be made by Kings Grant
Route Licensee on a weekly basis two (2) weeks
after the receipt of processed garments by Kings
Grant Route Licensee(s).
3. TERM OF LICENSE
(a) This agreement
shall take effect upon its execution by all
parties hereto ("the effective date")
and shall extend for a period (5) years from the
effective date (the "initial term") at
the then current terms and conditions.
(b) Licensee shall
have the right to renew the license for an
additional term of five (5) years, and so on for
every five (5) years thereafter at the then
current terms and conditions of the Kings Grant
Route Licensing Agreement.
4. OPERATING
ASSISTANCE
In connection with the
grant of the license, Kings Grant shall provide
the following:
(a) Licensee may
represent itself as a Kings Grant licensee for
dry cleaning and laundry services.
(b) Licensee may use
Kings Grant service marks, trademarks, trade
names, and logotypes on vehicles, stationery,
business cards, advertising material, and signs
and in promotional and other literature. However,
Licensee must not use "Kings Grant" or
any other name or mark in which Kings Grant has a
proprietary interest as part of the legal name of
its licensed business.
(c) Provide Licensee
with all initial training, support, information,
techniques, guidance as deemed necessary by Kings
Grant to enable Licensee to operate a Kings Grant
dry cleaning and laundry pick up, and delivery
service.
(d) Provide assistance
in developing marketing procedures and activities
in such manner, form, and frequency, as Kings
Grant may deem appropriate.
(e) Provide advice
concerning operating methods, techniques, or
operations, as Kings Grant may deem appropriate.
(f) Work with Licensee
to select and designate a dry cleaning and
laundry processor who shall provide Licensee with
the dry cleaning and laundry services required.
Such services shall include: 1) quality dry
cleaning and laundry processing in accordance
with Kings Grant's recommendations; 2) Kings
Grant recommended packaging and; 3) Kings Grant
recommended handling procedures.
5. TRAINING
(a) Licensee's
training program shall be scheduled and conducted
by Kings Grant and/or its authorized agent(s) at
such times and location(s), as Kings Grant shall
designate.
(b) There is no
tuition charge for the initial training. Licensee
is responsible for the cost of all travel, food,
and lodging incident to the initial training
program. Any costs associated with subsequent
training also shall be the responsibility of
Licensee.
6. RELATIONSHIP OF THE
PARTIES
(a) Licensee is and at
all times shall be an independent contractor, and
nothing in this Agreement or in the business
relationship of the parties shall be construed to
make Licensee an employee, agent, legal
representative or fiduciary of Kings Grant for
any purpose whatsoever.
(b) Licensee shall
enter into contracts necessary to operate its
licensed business at its sole risk and expense.
(c) Licensee
acknowledges that it does not have any right,
title or interest in or to any Kings Grant
customer, and acknowledges that it does not have
any authority to incur any obligations or
responsibilities on behalf of Kings Grant or to
bind Kings Grant by any representations or
warranties, and agrees not to hold itself out as
having any such authority.
(d) Kings Grant shall
not violate Licensee's status as an independent
contractor, and shall provide only such
supervision and training in connection with the
operation of Licensee's business as Kings Grant
deems necessary or appropriate to protect Kings
Grant's good-will, reputation, trademarks, trade
name, service marks, copyrights, trade secrets,
confidential information, revenues, other
proprietary rights and quality standards for
products and services.
7. LICENSED MARKS
(a) Licensee
acknowledges that Kings Grant is the exclusive
owner of the Kings Grant system and the licensed
marks. Licensee agrees to use these items
strictly in accordance with the terms of this
Agreement.
(b) Licensee
acknowledges that it shall acquire no right,
title, or interest in the Kings Grant system or
the licensed marks except as expressly provided
in this Agreement.
(c) All goodwill
associated with the Kings Grant system and the
licensed marks shall inure to the benefit of
Kings Grant. Licensee agrees to forbear from
contesting the validity, ownership, or
enforceability of the licensed marks or the
goodwill associated therewith.
(d) Licensee
acknowledges that it shall not use any licensed
marks as part of Licensee's legal name or with
any corporation, partnership, or other legal
entity in which Licensee has a direct or indirect
interest. Notwithstanding the foregoing, Kings
Grant may permit Licensee to utilize the name
Kings Grant Dry Cleaning and Laundry as part of
Licensee's trade name or other name under which
it conducts business. Licensee shall make timely
notice to Kings Grant of any use, by any person
or legal entity other than Kings Grant or any
license of Kings Grant, of any licensed marks,
names or logos in which Kings Grant claims a
proprietary interest.
8. CONFIDENTIAL
INFORMATION
(a) Licensee
acknowledges that it has obtained from Kings
Grant, confidential information, trade secrets
and techniques and other business practices
developed and owned by Kings Grant which are
necessary and essential to the operation of the
licensed business. Licensee further acknowledges
that such confidential information was unknown to
it prior to the negotiation with Kings Grant, and
that the methods developed by Kings Grant for the
licensed operations of Kings Grant are innovative
and unique. Licensee shall take all precautions
necessary, at its own expense, to protect such
confidential information, and that it will not
use or divulge same without the express prior
written consent of Kings Grant.
(b) During the term of
this Agreement and thereafter, Licensee shall not
communicate directly or indirectly, divulge to,
or use for its benefit or the benefit for any
other person, partnership, or corporation, any
trade secrets which are proprietary to Kings
Grant or any information or knowledge deemed
confidential by Kings Grant except as permitted
by Kings Grant. Licensee may disclose
confidential information to any temporary
replacement of Licensee on a need to know basis.
Anyone to whom such information is conveyed shall
be informed that the information is confidential
and proprietary to Kings Grant and that it may
not be used without the prior express written
consent of Kings Grant. Licensee shall require
every temporary replacement to execute an
agreement for the benefit of Licensee and Kings
Grant acknowledging the need to protect the
confidentiality of the Kings Grant system and
agreeing not to use such information for its own
benefit and not to disclose it to third parties.
9. TRANSFER AND
ASSIGNMENT
(a) This Agreement is
personal, being entered into by Kings Grant in
reliance upon and in consideration of the skill,
qualifications and representations of, and trust
and confidence reposed in Licensee who has
represented that it will actively and personally
participate in the ownership and operation of the
license. Therefore, neither this Agreement nor
any of its rights or privileges shall be
assigned, transferred, sold, shared or divided
(collectively hereinafter "transfer")
by operation of law or otherwise, in any manner,
without the prior written consent of Kings Grant;
any such purported transfer shall be void. Said
consent shall not be unreasonably withheld, but
may be subject to certain conditions including,
but not limited to:
(1) Kings Grant
receives at least ninety- (90) days prior written
notice of such proposed transfer. Said notice
shall contain all the information then required
by Kings Grant as a condition of such transfer;
(2) Licensee and the
proposed transferee satisfy the then current
terms and conditions of transfer as required by
Kings Grant;
(3) Transferee, in the
judgment of Kings Grant, is a person of good
standing, reputation, ability, and financial
responsibility;
(4) Transferee
executes all agreements considered necessary or
appropriate by Kings Grant to protect Kings
Grant's interests;
(5) Without limiting
the terms and conditions Kings Grant may impose,
transferee shall execute a then current License
Agreement, which may contain materially different
terms than those contained in this Agreement, and
Licensee shall satisfy all outstanding
obligations to Kings Grant and shall execute a
general release for the benefit of Kings Grant.
(6) Payment of all
outstanding monetary obligations due Kings Grant
by Licensee;
10. POST TERMINATION
AND POST EXPIRATION OBLIGATIONS
Upon termination or
transfer of this Agreement by Licensee, or upon
termination or non-renewal of this Agreement by
Kings Grant, Licensee shall:
(a) Immediately pay
Kings Grant all monetary obligations due Kings
Grant to the date of termination or transfer.
(b) Immediately cease
to represent itself as a Kings Grant license and
discontinue the use of the Kings Grant service
marks, trademarks, trade names, logotypes and any
marks or names confusingly similar thereto or any
other designations indicating affiliation between
Kings Grant and Licensee including but not
limited to telephone numbers, procedures and
techniques. Licensee shall not promote or
advertise the fact that it was formerly a license
or affiliate of Kings Grant.
(c) Immediately return
and surrender its customer lists and any and all
documents containing trade secrets and/or
proprietary information.
(d) Immediately cease
the use of all Kings Grant printed material,
advertising and all other materials received by
Licensee pursuant to this Agreement and forever
desist from further use of same.
(e) Take such action
as may be required by Kings Grant to discontinue,
transfer or assign any telephone listing, white
and yellow page telephone references, and all
trade and similar name registrations and business
licenses for the Kings Grant Dry Cleaning &
Laundry business to Kings Grant or its designee,
and to discontinue any radio, newspaper or other
advertising in any other form of commitment which
may in any way identify Licensee with Kings
Grant.
(f) Immediately
deliver to Kings Grant a list of all past,
present, and prospective customers. Kings Grant
shall have the right to notify all customers
served by Licensee that, as of the date of
termination of the Agreement, Licensee is no
longer associated with Kings Grant, and Kings
Grant thereafter may service said customers as
Kings Grant deems appropriate.
(g) Immediately and
permanently discontinue all advertising as a
Kings Grant licensee including without
limitation, the immediate removal of all
identifying marks from Licensee's delivery van,
office (if any), or any other advertising medium
utilized by Licensee, and discontinue use or
wearing of Kings Grant uniforms indicating or
tending to indicate that the Licensee is or was a
Kings Grant license.
(h) Termination,
transfer and non-renewal of this Agreement does
not modify or discharge any obligation, or debt,
contingent or otherwise, of Licensee existing or
arising in connection with the Kings Grant
license.
(i) Termination,
transfer, or non-renewal of this Agreement does
not modify or discharge any other agreement
between Licensee and Kings Grant.
(j) Upon termination,
expiration, transfer, or non-renewal of this
Agreement, Licensee shall have no further
interest in the Kings Grant Dry Cleaning &
Laundry system, the licensed marks or any other
assets of Kings Grant, and Licensee shall not be
entitled to receive payment of any kind from
Kings Grant.
(k) Should Kings Grant
incur attorney's fees and costs in order to
en-force the terms and conditions of this
Agreement including post termination covenants,
whether or not a legal action is instituted,
Kings Grant shall be entitled to reimbursement of
such attorney's fees and costs in addition to any
other remedies Kings Grant may have at law or in
equity.
11. INDEMNIFICATION
(a) Licensee agrees to
protect, defend, indemnify, and hold Kings Grant
and its respective officers, directors, agents,
attorneys, shareholders, employees and
representatives, jointly and severally, harmless
from and against any and all claims, actions,
proceedings, damages, costs, expenses and other
losses or liabilities, consequently, directly or
indirectly incurred, including without limitation
attorney's fees as a result of, arising out of,
or connected with the operation of the license.
(b) Kings Grant agrees
to protect, defend, indemnify, and hold Licensee
harmless from and against all claims for
trademark or service mark infringement arising
out of Licensee's authorized use of the licensed
marks in accordance with this Agreement provided
that Licensee gives written notice to Kings Grant
within thirty (30) days, or such shorter period
as is necessary to avoid prejudice, after
learning of any claim, and also provided that
Kings Grant has the right to control any
litigation or proceeding resulting from any such
claim.
(c) Kings Grant agrees
to protect, defend, indemnify, and hold Licensee
harmless from and against all claims for
copyright infringement arising out of Licensee's
authorized use of Kings Grant's written
materials.
12. ACKNOWLEDGMENT
(a) Licensee
acknowledges that no warranties or
representations other than those contained in
this Agreement have been made or given by Kings
Grant or any of its representatives.
(b) Licensee has been
informed and hereby acknowledges that, because of
the highly competitive nature of the dry cleaning
and laundry business, successful operation of its
license will depend in part upon application of
its best efforts and capabilities, and its
management and efficient operation of the
licensed business, as well as general economic
trends and other local market conditions; that
representations or projections (if any) shall not
be construed as a guarantee of profitability or
success of the Licensee; and that any such
projections and data and the sources upon which
they are based are subject to variation depending
upon regional and market conditions.
13. WAIVERS
(a) Failure of Kings
Grant to exercise any of its rights reserved by
this Agreement shall not constitute a waiver or
estoppel of Kings Grant's right to demand exact
compliance with any provision contained in any
section herein. Any waiver of any provision of
this Agreement, to be enforceable, must be in
writing and signed by the waiving party.
(b) A waiver or
approval by Kings Grant of any particular default
by Licensee shall not be deemed a continuing
waiver of that obligation or any other obligation
under this Agreement.
(c) Kings Grant
specifically reserves the right to vary or waive
any provision or condition with respect to any
particular licensee based upon the peculiarities
of the given situation, without granting the same
variance or waiver to other licensees. Licensee
shall have no entitlement to a like or similar
variance or waiver, and shall have no recourse
against Kings Grant because of any variation from
standard practices given to an other licensee.
14. ENTIRE AGREEMENT
This Agreement
constitutes the entire agreement between the
parties, superseding all prior oral or written
agreements, and the provisions hereof shall be
binding upon the parties, their heirs, executors,
administrators, successors and assigns and may
not be modified or amended except in writing
signed by both parties.
15. GOVERNING LAW AND
ARBITRATION
This Agreement shall
be construed and governed by the laws of the
State of Pennsylvania; provided however, that the
foregoing choice of law shall not be a waiver of
Licensee's or Kings Grant's rights under any
applicable State Law.
16. CONSTRUCTION AND
SEVERABILITY
(a) Headings contained
in this Agreement are for purposes of reference
only and shall not affect the construction or
interpretation of any provision of this
Agreement.
(b) If any provision
of this Agreement shall be determined to be
wholly, invalid, such determination shall not
affect any other provision in this Agreement.
(c) If any provision
of this Agreement shall be determined to be
partially invalid or unenforceable, the remainder
of said provision should remain in full force
according to the intent of the parties.
(d) This Agreement is
intended to be gender neutral and therefore any
reference or use of pronouns shall be deemed to
include the other number and gender.
(e) This Agreement is
intended to be gender neutral and therefore any
reference or use of pronouns shall be deemed to
include the other number and gender.
17. BINDING
OBLIGATIONS
This Agreement shall
be binding upon the parties and their respective
heirs, legal representatives, successors, and
assigns.
18. AUTHORIZED
VOLUNTARY EXECUTION
Both parties hereto
represent that they have read and understand the
contents of this Agreement and the attachments
hereto and that they are authorized to execute
this Agreement on behalf of the respective
parties hereto.
19. EXCLUSIVE PROPERTY
The form and content
of this Agreement and customers are the exclusive
property of Kings Grant and may not be reproduced
in whole or in part or disclosed by Licensee or
others, without the prior written consent of
Kings Grant or as otherwise permitted in this
Agreement.
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