TRADEMARK LICENSE AGREEMENT
CONTENTS
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Clause |
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Page |
Article 1 |
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Definitions |
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4 |
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Section 1.1 |
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Definitions |
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4 |
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Article 2 |
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License Grant |
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4 |
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Section 2.1 |
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Grant |
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Section 2.2 |
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Reservation of Rights |
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5 |
Section 2.3 |
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Licensor Obligations |
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5 |
Section 2.4 |
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Sublicense Right |
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5 |
Section 2.5 |
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License Relating to Corporate Name |
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6 |
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Article 3 |
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License Fee |
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6 |
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Section 3.1 |
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Consideration |
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6 |
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Article 4 |
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Term and Termination |
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Section 4.1 |
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Term |
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Section 4.2 |
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Termination |
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Section 4.3 |
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Survival |
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9 |
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Article 5 |
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Ownership and Registrations |
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9 |
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Section 5.1 |
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Ownership |
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Section 5.2 |
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No Similar Registrations |
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Section 5.3 |
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Registrations |
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Section 5.5 |
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Expenses |
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Section 5.6. |
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Rights Relating to Licensee’s Marks |
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11 |
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Article 6 |
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Enforcement |
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12 |
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Section 6.1 |
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Enforcement |
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Section 6.2. |
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Opposition and Cancellation Proceedings |
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12 |
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Article 7 |
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Use of Licensed Mark |
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Section 7.1 |
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Use of Licensed Mark |
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Section 7.2 |
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Use of Licensed Marks During SSD
Transition Period |
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Section 7.3 |
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Co-Branding of Licensed Mark |
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Section 7.4 |
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Quality Control |
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Section 7.5 |
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Quality Control – Written or Graphic
Matter |
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1
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Section 7.6 |
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Conduct of Business |
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Section 7.7 |
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Applicable Law |
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Section 7.8 |
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Right to Sell Products |
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Section 7.9 |
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Consent or Approval |
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Article 8 |
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Covenants |
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Section 8.1 |
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License Limitations |
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17 |
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Article 9 |
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Breach of Contract |
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18 |
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Section 9.1 |
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Recovery of Direct Losses and Damages |
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18 |
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Article 10 |
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Indemnification |
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18 |
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Section 10.1 |
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Indemnification of Licensor |
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Section 10.2 |
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Recovery of Other Losses and Damages |
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Section 10.3 |
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Representations and Warranties |
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18 |
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Article 11 |
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Resolution of Disputes |
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19 |
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Section 11.1 |
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Dispute Resolution Procedure |
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Section 11.2 |
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Arbitration |
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20 |
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Article 12 |
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Miscellaneous |
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21 |
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Section 12.1 |
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Entire Agreement |
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Section 12.2 |
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Successors and Assigns |
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Section 12.3 |
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Modification and Waiver |
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Section 12.4 |
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Notices |
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Section 12.5 |
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Governing Law |
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Section 12.6 |
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Severability |
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Section 12.7 |
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Schedules |
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Section 12.8 |
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Section Headings |
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Section 12.9 |
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Counterparts |
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22 |
Section 12.10 |
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Relationship of the Parties |
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22 |
Section 12.11 |
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No Strict Construction |
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22 |
Section 12.12 |
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Language |
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Section 12.13 |
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Further Assurances |
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2
TRADEMARK
LICENSE AGREEMENT
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SCHEDULE 1.1 |
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DEFINITIONS |
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SCHEDULE 2.1 |
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MANNER OF USE OF LICENSED
MARKS (i) CO-BRANDED BASIS (ii) STAND ALONE BASIS |
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SCHEDULE 2.5.1 |
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(i) MANNER OF USE OF LICENSED
CORPORATE NAME (ii) MANNER OF USE OF LICENSED CORPORATE NAME IN CERTAIN DOMAIN NAMES |
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EXHIBIT A |
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ACCESSION AGREEMENT |
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THIS TRADEMARK LICENSE
AGREEMENT (“Agreement”), dated as of October 19,
2004, is entered into by and between XYZ Information Technology Limited, a
corporation organised under the laws of the British Virgin Islands (herein
“Licensee”), and MMM (...........) Limited, a company established under the
laws of the People’s Republic of China (“Licensor”), which is a
wholly-owned subsidiary of MMM Group Limited, a company organized under the
laws of the Hong Kong Special Administrative Region of the PRC, (“Seller”).
Licensee and Licensor are each sometimes referred to herein as a “Party”
and collectively as the “Parties” to this Agreement.
WHEREAS, YYY Holdings Inc. (“Purchaser”) and Seller are
parties to an Acquisition Agreement dated as of July 27, 2004, as supplemented
and amended (the “Acquisition Agreement”) pursuant to which Seller has
agreed to sell (and to cause the Selling Subsidiaries to sell) the Assets to
Purchaser (and the Purchasing Subsidiaries), and Purchaser has agreed to
purchase the Assets from Seller and the Selling Subsidiaries, on the terms and
subject to the conditions of the Acquisition Agreement; and
WHEREAS, pursuant to the Acquisition Agreement, as a condition
to Closing, Licensor, as the proprietor of the Licensed Marks (as defined
herein), agrees to license such Licensed Marks on a worldwide basis to Licensee
(with the limited right to sub-license as herein described) and Licensee agrees
to license from Licensor such Licensed Marks solely for use in the Co-Branded
Business (including in the business of the Security Services Division) on the
terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, the Parties, intending to be legally bound, hereby
agree as follows:
ARTICLE 1
DEFINITIONS
Section 1.1. Definitions. The capitalized
terms used in this Agreement have the respective meanings set forth on Schedule
1.1 or as defined herein. All other capitalized terms used and not
otherwise defined in this Agreement have the respective meanings set forth in
the Acquisition Agreement.
ARTICLE 2
LICENSE GRANT
Section 2.1.
Grant. Subject to the terms and conditions set
forth in this Agreement, Licensor hereby grants to Licensee a limited, fully
paid-up, non-exclusive license, without the right to sub-license or assign except
as provided in Sections 2.4 and 12.2, to use the Licensed
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Marks solely (i) in connection with the
offering, providing, manufacturing, developing and distribution of products and
services of the Co-Branded Business worldwide in the manner illustrated on Schedule
2.1(i) (or substantially similar thereto, if it is required by law in a
particular jurisdiction other than the PRC (as defined below) to vary the
presentation of the relevant Licensed Mark with the Licensee’s Mark in order to
prevent endangerment of Licensor’s right to use the relevant Licensed Mark, to
preserve the goodwill and reputation associated with the relevant Licensed Mark
and prevent the relevant Licensed Mark losing trademark significance, whether
due to being confusingly similar to another Mark or the distinctiveness of the
relevant Licensed Mark being diluted, or otherwise, as the case may be in such
jurisdiction (the “Trademark Significance Exception”)), provided that
the Licensed Marks shall not be used outside the People’s Republic of China,
exclusive of Hong Kong, S.A.R., Macao and Taiwan (the “PRC”) prior to 1 April
2005 and (ii) on a stand alone basis in connection with the offering,
providing, manufacturing, developing and distribution of products of the
Security Services Division in the manner identical to that illustrated on Schedule
2.1(ii), subject to the Trademark Significance Exception. Provided that
during the Non-Compete Period, Licensee’s license granted in this Section shall
be exclusive to Licensee for the Co-Branded Business, including the Security
Services Division, in the PRC. For the purpose of this Agreement, an exclusive
license means a license from Licensor conferring on Licensee, to the exclusion
of all other persons (including Licensor), the rights granted in this Agreement
in respect of the Licensed Marks in connection with the conduct of the
Co-Branded Business.
Section 2.2. Reservation of Rights. All
rights not expressly granted by Licensor hereunder are reserved to Licensor.
Without limiting the generality of the foregoing, Licensee expressly
acknowledges and agrees that nothing contained herein shall be construed or
interpreted as a grant, by implication or otherwise, of any licenses other than
the licensed rights specified in Sections 2.1, 2.4 and 2.5. Licensee expressly
acknowledges and agrees that (i) all of its rights to use the Licensed
Corporate Name and the Licensed Marks are set forth herein, and (ii) except as
expressly provided in the Acquisition Agreement, it has not been granted any rights
to use any Marks owned by Licensor or its Affiliates other than the Licensed
Marks, including, without limitation, any Marks owned by Licensor that may be
used in combination with, or may be derivative of, the Licensed Mark.
Section 2.3. Licensor Obligations. Licensor
hereby acknowledges and agrees that it shall execute and deliver any further
instruments or documents and take all such further action as may be necessary
to grant to Licensee the licenses hereunder, and for Licensee to fully enjoy
all of the rights and benefits to, the Licensed Mark as provided in this
Agreement.
Section 2.4. Sublicense Right. Licensor hereby grants to Licensee the right
to sub-license its rights granted under Section 2.1 of this Agreement to
MMM Computer System Technology Services Limited (“LCSTSL”), and a
company to be formed pursuant to Section 5.1 of the Supplement (“LWY”)
and at any given time not more than seven (7) Qualified Subsidiaries of
Purchaser (no more than two (2) of which may be domiciled in the United States
of America, excluding LCSTSL and LWY) engaged in the conduct of the Co-Branded
Business (“Sublicensee”) by means of execution and delivery by
Sublicensee and Licensee of an accession agreement in the form as shown in
Exhibit A establishing contractual privity between
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Sublicensee and
Licensor. The maximum number of juridical entities that may at any time have a
license granted under Section 2.1 shall be seven (7) Qualified
Subsidiaries plus Licensee, LCSTSL and LWY and no such Qualified Subsidiary
shall have a right to sub-license.
Section 2.5. License Relating to Corporate Name.
2.5.1. Subject to the terms and conditions set forth herein, Licensor
hereby grants to Licensee, LCSTSL and LWY and at any time not more than seven
(7) Qualified Subsidiaries of Purchaser (no more than two (2) of which may be
domiciled in the United States of America, excluding LCSTSL and LWY) a
worldwide, limited, non-exclusive, non-transferable, fully paid-up license,
with no right to sub-license, (i) to use its Chinese and English translations
of its corporate name in the manner identical to that set forth in Schedule
2.5.1(i) (the “Licensed Corporate Name”), (ii) to use or incorporate
such Licensed Corporate Name as its or part of its corporate name in connection
with its advertising, publicity releases or publicly distributed materials
(including, without limitation, references on web sites, home pages or
hypertext links) in the operation of the Co-Branded Business and in the conduct
of the business of the Security Services Division and (iii) to use or
incorporate the Licensor’s or Seller’s name “MMM” as part of the domain names
in the manner illustrated in Schedule 2.5.1(ii); provided that
any such Qualified Subsidiary domiciled outside of the PRC shall not use such
Licensed Corporate Name prior to 1 April 2005 outside of the PRC.
2.5.2. Unless terminated sooner in accordance with Section 4.2,
the rights granted in Section 2.5.1 shall expire on the earlier of: (i) the
date that any Governmental Authority requires that such corporate names be
changed, provided such change required by such Governmental Authority is
not caused, initiated, allowed to be caused or initiated by Licensor, Seller or
any Subsidiary of Licensor or Seller, and subject to any time frame or
transition period established by the Governmental Authority (alone or in
consultation with Licensor and Licensee), and (ii) the expiration of the term
of the license as described in Section 4.1. Upon expiration in
accordance with the foregoing clauses, Licensee shall use its best efforts to
effectuate cessation of its use of the Licensed Corporate Name as expeditiously
as possible under the circumstances.
2.5.3. Notwithstanding Section 2.5.1(i), Licensor acknowledges and
confirms that LCSTSL and LWY can use and “MMM” as a corporate name after the Closing Date,
subject to the terms herein.
ARTICLE 3
LICENSE FEE
Section 3.1. Consideration. The consideration for
the licensed rights granted hereunder consists of the substantial benefits
derived by Licensor and Licensee from the Purchaser’s purchase of the Assets
from Seller, as set forth in the Acquisition Agreement, and the consummation of
the transactions contemplated thereby, together with the mutual covenants set
forth in this Agreement, there being no further consideration or royalty
payable in respect thereof.
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ARTICLE 4
TERM AND TERMINATION
Section 4.1. Term
4.1.1. Except as expressly provided herein, the “Term” of this
Agreement and the licenses granted under Sections 2.1, 2.4 and 2.5
will be from the Closing Date until this Agreement is terminated in accordance
with any provision of Section 4.2.
4.1.2. Notwithstanding Section 4.1.1 and anything else in this
Agreement to the contrary, the Licensee’s license granted under Section
2.1(ii) to use the Licensed Marks on a stand-alone basis solely in
connection with the business of the Security Services Division shall terminate
on the expiration of the twelve (12) month period beginning on the Closing Date
(the “SSD Transition Period”).
4.1.3. Notwithstanding Section 4.1.1 and anything else in this Agreement
to the contrary, LCSTSL’s and LWY’s rights under Section 2.5.3 to
continue using the names ……….and “MMM” shall terminate on the expiration
of the LCSTSL Entrustment Period or LWY Entrustment Period, respectively.
4.1.4. Notwithstanding Section 4.1.1 and anything in this
Agreement to the contrary:
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(a) |
the sublicense or license granted to
LCSTSL pursuant to Sections 2.4 and 2.5 respectively shall
terminate upon the expiration of the LCSTSL Entrustment Period if, on the expiration
of the LCSTSL Entrustment Period, the Licensee has already pursuant to Section
2.4 granted sublicenses to seven (7) Qualified Subsidiaries (excluding
the sublicense granted to LWY during the LWY Entrustment Period); and |
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(b) |
the sublicense or license granted to LWY
pursuant to Sections 2.4 and 2.5 respectively shall terminate
upon the expiration of the LWY Entrustment Period if, on the expiration of
the LWY Entrustment Period, the Licensee has already pursuant to Section
2.4 granted sublicenses to seven (7) Qualified Subsidiaries (excluding
the sublicense granted to LCSTSL during the LCSTSL Entrustment Period) |
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Section 4.2. Termination.
4.2.1. Upon providing prior written notice of termination to Licensee,
Licensor may terminate this Agreement if: (a) Licensee violates, defaults or
fails to perform any of its respective covenants, obligations, agreements,
representations or warranties contained herein, which violation, default or
failure is material and not cured within ninety (90) days after receipt of a
written notice thereof from Licensor requesting Licensee to remedy such
violation, default or failure, (b) Licensee violates, defaults or fails to
comply with Section 7.4, 7.5 or 7.6.1 or (c) Licensee violates,
defaults or fails to perform any of its covenants, obligations or agreements
under Sections 5.1, 5.2 or 8.1.1 in any respect, whether
or not such violation, default or failure is material, which violation, default
or failure is not cured within ninety (90) days after written notice thereof
from Licensor. Further, Licensor may automatically terminate this Agreement and
the licenses granted by it hereunder to Licensee, and provide notice thereof as
soon as practicable thereafter, in the event that Licensee commences, or has
commenced against it, proceedings under bankruptcy, insolvency or debtor’s
relief laws or similar laws in any other jurisdiction, which proceedings are
not dismissed within sixty (60) days, or Licensee makes a general assignment
for the benefit of its own creditors, or ceases operations, or is liquidated.
4.2.2. Following the expiration of the sixtieth (60th) month following
the Closing Date, Licensor shall have the right to terminate this Agreement
upon providing twenty-four (24) months’ prior written notice to Licensee at any
time Seller (or its Subsidiaries) holds, beneficially or of record, a number of
YYY Shares that is less than the number of Five Year Lock-Up Shares. Such
written notice shall contain a certification from Seller that the aggregate
number of YYY Shares that Seller owns, beneficially or of record, is less than
the number of Five Year Lock-Up Shares.
4.2.3. Notwithstanding any of the foregoing provisions of this Section
4.2, in the event of a Seller Competitor Acquisition, Licensor shall have
the right to terminate this Agreement by providing twenty-four (24) months’
prior written notice of such termination to Licensee.
4.2.4. Upon expiration or termination of (i) this Agreement, all
licenses granted to Licensee herein shall immediately terminate and Licensee
shall immediately cease use of the Licensed Corporate Name and the Licensed
Mark or otherwise benefiting therefrom, and shall have no further rights with
respect thereto and (ii) the SSD Transition Period, the license granted to
Licensee pursuant to Section 2.1(ii) during such SSD Transition Period
shall immediately terminate, and Licensee shall immediately cease use of the
Licensed Marks on a stand alone basis in the conduct of the business of the
Security Services Division or otherwise benefiting therefrom, and shall have no
further rights with respect thereto and (iii) the LCSTSL Entrustment Period or
LWY Entrustment Period, the rights granted to LCSTSL or LWY, as the case may
be, pursuant to Section 2.5.3 shall immediately terminate, and Licensee
shall procure LCSTSL or LWY, as the case may be, immediately cease use of the
name ………….and “MMM” or otherwise benefiting therefrom, and shall have no
further rights with respect thereto, except as expressly provided herein with
respect to the Co-Branded Business.
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4.2.5. Notwithstanding anything to the contrary set forth herein, the
Licensor’s right to terminate under this Section 4.2 shall not be its
sole and exclusive remedy in the event of any violation, default or failure by
Licensee to perform this Agreement and full legal remedies shall remain
available to Licensor in such event, including the right to recover damages or
to secure such other relief appropriate to the circumstances.
Section 4.3. Survival. The rights and obligations of
the Parties hereto under Sections 5.1, 5.2, 5.3.5, 5.4 and Articles 11 and 12
hereof shall survive the expiration or termination of this Agreement and
continue in full force and effect.
ARTICLE 5
Ownership and Registrations
Section 5.1. Ownership. During the Term of this
Agreement and thereafter, Licensee acknowledges that Licensor is the owner of
all right, title and interest in and to the Licensed Marks in any form or
embodiment thereof, as well as any and all rights in such Licensed Marks, and
is the owner of the goodwill attached, or which shall become attached, to the
Licensed Marks in connection with the business, goods and services in relation
to which the same has been, is or shall be used. Licensee’s and Sublicensee’s
use of the Licensed Marks under this Agreement will inure to the benefit of
Licensor. At no time, either while this Agreement is in effect or thereafter,
will Licensee claim any ownership of the Licensed Marks or the goodwill
associated with such Licensed Marks or the assets and businesses of Licensor.
Licensee acknowledges and agrees that, as between the Parties, Licensee has
been extended only a permissive right to use the Licensed Marks as provided in
this Agreement, which is not coupled with any ownership interest. Licensee
agrees that it will not challenge the title of Licensor to the Licensed Marks,
or take any action that challenges the Licensed Marks.
Section 5.2. No Similar Registrations. Licensee agrees not to (i) use or
register in any jurisdiction any Mark either confusingly similar to or
consisting in whole or in part of the Licensed Marks, or which would tend to
dilute the distinctiveness of the Licensed Marks, (ii) register the Licensed
Marks in any jurisdiction or (iii) use or register in any jurisdiction any
Marks (other than the Licensed Marks, with the express prior written consent of
Licensor) identical to the Licensed Marks. Whenever Licensee becomes aware of
any risk of violating the Trademark Significance Exception, Licensee shall take
appropriate steps to promptly remedy or avoid such confusion or risk of
confusion.
Section 5.3. Registrations.
5.3.1. Subject to Licensee’s compliance with its obligations under this Section
5.3, Licensor shall be responsible at its discretion for the execution,
filing and prosecution of any applications and the maintenance and renewal of
the registration of the Licensed Marks.
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5.3.2. Licensor will reasonably cooperate with Licensee in, and Licensor
will take reasonable steps to keep Licensee fully advised of, (i) the
execution, filing and prosecution of any applications relating to the Licensed
Marks that Licensor may choose in its discretion to file, (ii) the maintenance
of registrations existing at the date hereof or filed pursuant to the
immediately preceding clause (i), including the renewals thereof and (iii) the
recording of this Agreement or the entry of Licensee as a registered or authorized
user of the Licensed Marks in any jurisdictions in which such action is
required by Law to protect the Licensed Marks or advisable in the reasonable
opinion of Licensor or requested by Licensee. For the purposes provided in this
Section 5.3.2, Licensee shall supply Licensor with such reasonable
information concerning sales and other dispositions of any products bearing the
Licensed Marks as Licensor may reasonably request, and shall supply to Licensor
such samples, containers, labels, letterheads and other similar materials
bearing the Licensed Marks as may be required by Licensor to aid Licensor in
completing the actions described herein.
5.3.3. If Licensor files any new application for registration of the
Licensed Marks after the date of this Agreement, Licensor shall, to the extent
permitted by Law, register the Licensed Marks (i) for use in connection with
the Co-Branded Business and (ii) for use in connection with the products of the
Security Services Division, if such registration occurs during the SSD
Transition Period, in addition, in the case of clauses (i) and (ii), to any
other uses for which Licensor decides to register the Licensed Marks.
5.3.4. Licensor will own all right, title and interest in and to any and
all applications for registration of the Licensed Marks, whether filed before
or after the date of this Agreement, and such applications and subsequent
registrations shall be deemed incorporated in the defined term “Licensed
Marks”.
5.3.5. Licensee will not, as long as Licensor shall own rights in the
Licensed Marks, do or cause to be done any act or
thing disparaging, disputing, attacking, challenging, impairing, diluting, or
in any way tending to harm the reputation or goodwill of the Licensed Marks
associated with Licensor or its Subsidiaries.
5.3.6. If Licensor is required, or at the sole discretion of Licensor it
is advisable, for the purpose of making this Agreement enforceable, or for the
purpose of maintaining, enhancing or protecting Licensor’s rights in the Licensed
Marks or Licensed Corporate Name, to record this Agreement or to enter Licensee
as a registered or authorized user of the Licensed Mark or Licensed Corporate
Name, Licensor will attend to such recording or entry. Licensee will promptly
and at no cost to Licensor execute and deliver to Licensor such additional
instruments or documentation as Licensor may provide and reasonably request,
including, without limitation, execution and delivery of any agreement required
by local law, with terms consistent with this Agreement, for recordal or
registration in the relevant country or jurisdiction in the event that this
Agreement shall be deemed by Licensor to be unsuitable for recordal or entry.
The terms and conditions of this Agreement (and not the terms and conditions of
such agreement required by local law entered into for recording or entry
purposes) shall remain binding between the Parties and shall govern and control
any controversy that may arise with
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respect to each Party’s rights and
obligations hereunder; provided, however, that if specific terms
and conditions of any such agreement required by local law differ from the
comparable terms and conditions of this Agreement and enforcement of the
comparable terms and conditions of this Agreement pursuant to this Section
5.3.6 either (i) would be uncertain or improper under the laws of a
jurisdiction or (ii) would adversely affect Licensor’s rights in and to the
Licensed Marks or Licensed Corporate Name in a jurisdiction, then the specific
terms and conditions of the agreement required by local law shall be
controlling in such jurisdiction.
5.3.7. Upon the termination or expiration of this Agreement, Licensee
and each Sublicensee that has “MMM” or ………in its corporate name shall
immediately file to have its name changed by removing “MMM” or …………………as the
case may be.
Section 5.4. Further Assistance. Except as
otherwise expressly provided herein, in support of its obligations under Sections
5.1, 5.2 and 5.3, Licensee will, at the cost and expense of
Licensee, execute and deliver to Licensor during the Term and without further
consideration, such instruments or documents as Licensor may reasonably request
to confirm or establish Licensor’s ownership rights in the Licensed Marks.
Section 5.5. Expenses. Licensee will
reimburse Licensor for Licensor’s actual out-of-pocket expenses reasonably
incurred in connection with (i) notwithstanding anything in this Agreement to
the contrary, any actions approved by Licensee in writing in advance in
obtaining, defending or maintaining any registrations for the Licensed Marks,
or part thereof, which relate to Licensee’s license under this Agreement
(which, for the avoidance of doubt, shall not include expenses described in Sections
5.3.1, 5.3.2(i) and (ii), none of which shall be borne by
Licensee), (ii) recording this Agreement, (iii) obtaining the entry of Licensee
as a registered or authorized user pursuant to Section 5.3.2(iii) above
and (iv) notwithstanding anything in this Agreement to the contrary, any actions
approved by Licensee in writing in advance relating to any opposition or
cancellation proceeding relating to Licensee’s license under this Agreement.
Licensor shall bill Licensee within ninety (90) days after the end of each
calendar year during the Term (or within ninety (90) days after termination of
this Agreement) for such reimbursable expenses incurred by Licensor during the
preceding calendar year (or during the full or partial calendar year preceding
the date of termination). Licensor’s billing hereunder shall include reasonable
supporting documentation for the expenses included therein. Licensee shall
reimburse Licensor for such billed expenses within sixty (60) days after
receipt of the bill and supporting documentation from Licensor. Licensor may
abandon any application, registration or any cancellation, opposition or other
proceeding, or part thereof, for which Licensee declines or refuses to provide
reimbursement of expenses pursuant to this Section 5.5. In no event shall
Licensee be liable for costs associated with any acts described in this Section
undertaken at Licensor’s discretion and having no connection to Licensee’s use
of the Licensed Marks in a particular jurisdiction.
Section 5.6. Rights Relating to Licensee’s Marks.
Nothing contained in this Agreement shall be construed as a restriction or
limitation on Licensee’s right, title and interest in and to its Marks.
Licensor acknowledges Licensee’s rights in such Marks of Licensee and any use
of such Marks shall inure to the benefit of Licensee and Licensor undertakes
that it shall
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not challenge or claim any right and title in and to such
Marks of Licensee. For the avoidance of doubt, and as acknowledged by Licensor,
nothing contained in this Agreement gives the Licensor any right to use any of
the Licensee’s Mark in any form or manner without the consent and license from
Licensee.
ARTICLE 6
ENFORCEMENT
Section 6.1. Enforcement. Licensee agrees to
promptly notify Licensor in writing of any known or presumed infringement of
the Licensed Marks in, or which affects, the Co-Branded Business or the
Security Services Division or otherwise obstructs, affects, or infringes upon
Licensee’s use of the Licensed Marks in the manner contemplated in this Agreement
of which Licensee becomes aware. In the event of any such infringement,
Licensor will have the right at its sole discretion to determine an appropriate
course of action to enforce against such infringement or otherwise abate the
infringement thereof and to take (or refrain from taking) appropriate action to
enforce such Licensed Marks, and, in the event that Licensor elects to take
action, to control any litigation or any other enforcement action, to enter
into or permit the settlement of any such litigation or other enforcement
action with respect to such Licensed Marks, and to recover and retain any
monetary damages, settlement, royalties or other recovery arising from such
litigation or other enforcement action. Licensee will use reasonable efforts to
cooperate with Licensor, at Licensor’s expense, in any litigation or
enforcement action referred to under this Section 6.1, and Licensee will, at
the cost and expense of Licensor (including litigation costs and expenses
imposed on Licensor and Licensee by the court or competent governmental
authority in such action or proceeding), join as a party to such litigation or
any other enforcement action as required by Law. In the event that Licensor
decides, within fifteen (15) days of Licensee’s notice thereof, not to take
action to enforce against such infringement, Licensee shall have the right (if
permitted by applicable law and subject at all times to not violating the
Trademark Significance Exception) to take appropriate enforcement action and
Licensor shall use reasonable efforts to cooperate with Licensee, at Licensee’s
expense, in any litigation or enforcement action referred to under this
Section, and Licensor will, at the cost and expense of Licensee (including
litigation costs and expenses imposed on Licensee and Licensor by the court or
competent governmental authority in such action or proceeding), join as a party
to such litigation or any other enforcement action as required by Law.
Section 6.2. Opposition and Cancellation Proceedings.
Notwithstanding Sections 5.5 and 6.1, in the event that Licensor becomes aware
of any Mark owned by any Third Party that is identical to, is confusingly
similar to or tends to dilute the distinctiveness of the Licensed Marks or
tends to obstruct, affect or otherwise infringe upon the Licensee’s use of the
Licensed Marks in the manner contemplated by this Agreement, Licensor will
notify Licensee of such Mark owned by such Third Party, and Licensee may within
thirty (30) days of such notice request that Licensor file an opposition or
cancellation proceeding with respect to such Mark at Licensee’s sole expense.
In the event that Licensee declines to request such an opposition or
cancellation proceeding, Licensor may elect to file and prosecute such
opposition or cancellation proceeding at Licensor’s sole expense.
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ARTICLE 7
USE OF LICENSED MARK
Section 7.1. Use of Licensed Mark.
7.1.1. Under the licenses and rights granted in this Agreement, Licensee
is authorized to use the Licensed Marks only as provided in Article 2, Article
5 and this Article 7 and under no circumstances may Licensee use the
Licensed Marks in a manner that could reasonably be expected to damage the
reputation or goodwill of the Licensed Marks associated with Licensor, or its
Subsidiaries. The Licensed Marks shall not be used outside the
7.1.2. Notwithstanding Section 2.1 but without implying any
additional rights to Licensee beyond those granted under Section 2.1,
Licensee will not use the Licensed Marks, nor may any particular products of
the Co-Branded Business bearing the Licensed Marks be marketed, distributed or
offered for sale or sold, (i) in any jurisdiction until the relevant Licensed
Mark has been registered (or, after application for registration, if
permissible under the law of the relevant jurisdiction without violating the
Trademark Significance Exception, in each case at Licensee’s expense if
registration or application is pursuant to Licensee’s request), or Licensor
determines in good faith on advice of its trademark counsel that it would be
legally preferable not to seek to register the Licensed Marks in that country
but that there is no material impediment to the use of the Licensed Marks
therein, and (ii) in a British Commonwealth country or any other country where
entry of Licensee or Purchaser as a registered or authorized user is required,
prior to the execution of an appropriate registered user agreement or similar
type agreement and the filing thereof with the appropriate governmental agency
(except where failure to do so prior to use will not have a material adverse
effect on the Licensed Marks); provided, that (i) Licensor shall
promptly file any applications as provided herein in such jurisdiction upon the
request of Licensee or seek advice from its legal counsel and (ii)
notwithstanding anything to the contrary contained in this Section 7.1.2,
in the event that Licensee is using the Licensed Marks in a jurisdiction where
it is not registered, in violation of the provisions of this Section 7.1.2,
then Licensor, at its sole discretion, shall have the option to require such
registration at Licensee’s expense.
7.1.3. Without implying any additional rights to Licensee beyond those
granted under Section 2.1, if Licensor determines on the advice of
trademark counsel that the use of the Licensed Marks on any or all products of
the Co-Branded Business in any jurisdiction might result in any potential
trademark liability to a Third Party other than licensees or sublicensees of Licensor
of the Licensed Marks on the part of Licensor or Licensee, or violates the
trademark or other rights of a Third Party other than licensees or sublicensees
of Licensor of the Licensed Marks, upon receipt of notice from Licensor,
Licensee will take reasonable action to suspend its marketing, sale and
distribution of the affected products of the Co-Branded Business bearing such
Licensed Marks in that jurisdiction. Licensee shall comply fully within a
reasonable period of time following Licensee’s receipt of written notice
thereof, with all guidelines adopted from time to time by Licensor for the
purpose of addressing any potential trademark liability with respect to such
Third Party.
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Section 7.2. Use of Licensed Marks During SSD Transition Period.
(a) During the SSD Transition Period, for purposes of and in connection with
the conduct of the business of the Security Services Division only, Licensee is
authorized to use the Licensed Marks on a “stand-alone basis” meaning on its
own and without proximity to any other Marks provided that Licensee will
not use its name or the names of its Subsidiaries so as to cause confusion in
connection with the ownership of the Licensed Marks or the source or origin of
the products of the Security Services Division, and at all times will ensure
that the company name of Licensee and its Subsidiaries and any Marks of
Licensee and its Subsidiaries will be displayed separate and distinct from the
Licensed Marks, and at all times will indicate the ownership by Licensor of the
Licensed Marks on all packaging, labels and other materials bearing the
Licensed Marks in connection with any products of the Security Services
Division by superscribing an asterisk or other footnote reference symbol
immediately after the Licensed Marks and adding either of the following
appropriate footnotes: “Registered Trademark of [Licensor] and used under
License” or “Trademark of [Licensor] and used under License” save that the
requirements set forth above regarding indication of ownership of the Licensed
Marks shall not apply in relation to any Information Security Products which
form part of the Inventory. Licensee shall further comply with such additional
trademark usage requirements as Licensor may reasonably prescribe and notify
Licensee in writing in advance from time to time.
Section 7.3. Co-Branding of Licensed Mark.
7.3.1. Other than the use of the Licensed Marks during the SSD
Transition Period as set forth in Sections 7.1 and 7.2 above, the
license and other rights granted to Licensee under Section 2.1 and Section
2.4 are limited to the use of the Licensed Marks in the manner illustrated
in Schedule 2.1(i), (subject to the Trademark Significance Exception)
solely in connection with and for the conduct of the Co-Branded Business. Licensee
agrees not to use any other Mark in proximity to the Licensed Marks so as to
effectively create a unitary composite mark. Except as specifically provided
for in this Agreement, or as specifically authorized by Licensor, Licensee and
any Sublicensees will not combine the Licensed Marks with any other Mark or
term, shall not use the Licensed Marks in any of its or their corporate names
or trade names, and will make no use of the Licensed Marks which will
materially diminish the goodwill of Licensor in the Licensed Marks.
7.3.2. To the extent that Licensor authorises Licensee to use the
Licensed Marks in proximity to any other Mark in accordance with this Section
7.3, such use of the Licensed Marks by Licensee shall only be permitted in
conjunction with products and services in the conduct of the Co-Branded
Business, including the promotion thereof. Licensor shall have the right to
review and approve, prior to each first use, all uses of any of the Licensed
Marks by Licensee, which approval shall not be unreasonably withheld or
delayed.
Section 7.4. Quality Control.
7.4.1. Licensee acknowledges the goodwill and reputation
associated with the Licensed Marks, shall use the Licensed Marks in a manner
that maintains and promotes such
14
valuable goodwill and reputation and shall
refrain from taking any action that is reasonably likely to impair or damage
the reputation or the goodwill of the Licensed Marks associated with Licensor
or its Subsidiaries. Licensee shall cooperate fully to protect the Licensed
Marks and the goodwill each represents.
7.4.2. Licensee will use the Licensed Marks in accordance with the usage
guidelines and in compliance with the standards of quality, appearance, service
and other standards as may be agreed upon by Licensor and Licensee from time to
time during the Term, which is designed to ensure Licensor’s control over the
Licensed Marks (the “Quality Standards”); provided, however,
that if no applicable standards exist, the nature and quality of all products
and services of the Co-Branded Business bearing the Licensed Marks and all
related advertising, promotional and other uses of the Licensed Marks,
undertaken by or on behalf of Licensee, shall comply with product specifications,
standards and quality control procedures at least (i) the same as the level of
quality standards that Licensor employs as of the Closing Date in the
development, marketing and sale of any products sold and services provided
prior to or as of the Closing Date and (ii) substantially the same standards of
quality, appearance, service and other standards that are observed as of the
Closing Date by Licensor with respect to products and services similar to the
products and services of the Co-Branded Business, and such specifications,
standards and quality control procedures shall be deemed incorporated in the
definition of “Quality Standards”.
7.4.3. In order to promote adherence to the Quality Standards and for
the purpose of protecting and maintaining the goodwill associated with the
Licensed Marks and the reputation of Licensor, Licensor will have the right to
make reasonable written requests of samples of the products bearing the
Licensed Marks from Licensee and Licensee shall permit Licensor to promptly
examine samples of products bearing the Licensed Marks and the packaging and
marketing materials of the products bearing the Licensed Marks as Licensor may
reasonably require to verify that such products bearing the Licensed Marks
provided by Licensee meet the Quality Standards and that Licensee’s use of the
Licensed Marks complies with Licensee’s obligations under this Agreement.
7.4.4. In the event that Licensor reasonably considers that any products
bearing the Licensed Marks or any packaging and marketing materials thereof do
not meet the Quality Standards or otherwise are not in compliance with this Article
7, Licensor will notify Licensee in writing. Licensee will have thirty (30)
Business Days from the date it receives such notification from Licensor to
provide certification of its compliance with the Quality Standards or of this Article
7. Such certification must be signed by at least one (1) of Licensee’s
Chief Executive Officer, Chief Financial Officer or Legal Counsel. If Licensee
fails to bring such products bearing the Licensed Marks into conformity within
such thirty (30) Business Days period (or such other time period mutually
agreed upon by the Parties), then Licensee shall immediately suspend selling
and offering to sell such products bearing Licensed Marks or provide such
services under and by reference to the Licensed Marks until such non-conformity
is cured and certification of such cure is provided as set forth in this Section
7.4.4.
15
Section 7.5. Quality Control – Written or Graphic Matter.
Licensee agrees to furnish from time to time to Licensor for Licensor’s
inspection and judgment of quality and design at Licensor’s reasonable request,
true, representative samples of any written or other graphic matter bearing the
Licensed Marks (including, without limitation, galleys, drafts and samples of
all labels, tags, packaging, advertisements, promotional mailings and the like
associated with the products bearing the Licensed Marks). On written
notification by Licensor, Licensee will take reasonable steps to correct within
sixty (60) days of such notice any use of the Licensed Marks which Licensor
determines does not comply with the Quality Standards or proper trademark usage
as set forth in Section 7.1 or which, in the good faith, reasonable opinion of
Licensor on the advice of trademark counsel detracts from the goodwill and
reputation of Licensor or the Licensed Marks, contributes to the Licensed Marks
losing trademark significance, or endangers Licensor’s right to use the Licensed
Marks. If Licensee fails to comply with the terms of this Section 7.5, Licensor
may terminate this Agreement upon notice to Licensee in accordance with Section
4.2.
Section 7.6. Conduct of Business.
7.6.1. Licensee shall operate the Co-Branded Business and the business
of the Security Services Division in accordance with at least the same
standards of quality, appearance, service and other standards that are observed
as of the Closing Date by Licensor. In order to promote adherence to such standards
and for the purpose of protecting and maintaining the goodwill associated with
the Licensed Marks and Licensed Corporate Name and the reputation of Licensor,
Licensor shall have the right to obtain from Licensee reasonable information as
to (i) the quality standards used in the operation of that part of the
Co-Branded Business and the business of the Security Services Division that
uses the Licensed Marks or the Licensed Corporate Name and (ii) the manner in
which the Licensed Marks are used in connection with the corporate names used
by Licensee in the conduct of such business. If at any time, Licensee fails, in
the reasonable judgment of Licensor, to conform to the standards set forth in
this Section 7.6, Licensor shall notify Licensee of such failure in
writing. Licensee shall take all necessary steps to bring the nonconforming
aspects of its business into conformity with such standards. If Licensee fails
to bring the nonconforming aspects of its business into conformity with such
standards within thirty (30) Business Days (or such other time period mutually
agreed upon by the parties) after Licensee’s receipt of such notice, then
Licensee shall use its best efforts to effectuate cessation of use by it of the
Licensed Mark and Licensed Corporate Name as expeditiously as possible under
the circumstances.
7.6.2. Licensee shall be accurate in its descriptions of the
relationship between Licensor and Licensee. Licensee shall not make any
statements on or in connection with its use of the Licensed Marks or Licensed
Corporate Name to suggest, state or imply that Licensor has certified or
approved any products bearing the Licensed Marks or that Licensor is the source
of any products bearing the Licensed Marks. Furthermore, Licensee shall not use
the Licensed Marks or Licensed Corporate Name in such a way as to suggest that
Licensee’s business is owned, controlled, endorsed, guaranteed or otherwise
associated with Licensor.
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Section 7.7. Applicable Law. Licensee will comply with all
applicable Law with reference to its use of the Licensed Marks and Licensed
Corporate Name, including, without limitation, those pertaining to the proper
use and designation of Marks and pertaining to the development, distribution,
promotion and sale of products bearing the Licensed Marks, and the offering,
provision and promotion of services, and strictly comply with the Quality
Standards. If Licensee uses the Licensed Marks on labels, on packaging, in
marketing, advertising or promotional materials, on billing and shipping papers,
in correspondence and in other written or graphic matter, Licensee will use
such Licensed Marks as a Mark and not as a generic term, and will exercise
commercially reasonable efforts to protect the reputation and goodwill
represented by the Licensed Marks and Licensed Corporate Name.
Section 7.8. Right to Sell Products. This Agreement will not be
construed in any way to restrict Licensee’s right to sell any product, except
and to the extent it is sold under the Licensed Marks or Licensed Corporate
Name.
Section 7.9. Consent or Approval. Unless specifically provided
for in this Article 7, Licensor shall, within 14 days of receipt of any
materials required to be provided to it for approval or consent under this
Article and pursuant to the notice provisions applicable to this Agreement,
notify Licensee of its approval or consent to the use of such materials, or
disapproval or rejection with appropriate reasons set forth in writing. The
same time limit shall apply to any revised and amended material re-submitted
for approval or consent. Licensor shall be deemed to have consented or approved
such materials if Licensee does not receive any notification from Licensor
within the period so prescribed.
ARTICLE 8
COVENANTS
Section 8.1.
License Limitations.
8.1.1 Notwithstanding anything in this Agreement to the contrary,
Licensee agrees to use the licenses pursuant to Section 2.1, 2.4
and 2.5 hereunder to the Licensed Marks and Licensed Corporate Name
solely in accordance with the terms set forth herein.
8.1.2 Nothing in this Agreement shall be construed to convey any rights
to Licensee in any Marks owned by Licensor or its Subsidiaries other than the
Licensed Marks, including, without limitation, any Marks owned by Licensor
which may be used in combination with, or may be derivative of, the Licensed
Marks.
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ARTICLE 9
BREACH OF CONTRACT
Section 9.1. Recovery of Direct Losses and Damages. If a Party
shall breach its obligations under this Agreement, such breaching party shall
be responsible to the other Parties for all direct losses or damages caused by
such breach. The Parties expressly agree that, in the event a Party violates,
defaults or fails to perform any of its respective covenants, obligations,
agreements, representations or warranties contained herein, in addition to
Licensor’s right to terminate under Section 4.2, full legal remedies shall
remain available to the non-defaulting Party in such violation, default or
failure, including the right to recover monetary damages or to secure such
other relief appropriate to the circumstances.
ARTICLE 10
INDEMNIFICATION
Section 10.1. Indemnification of Licensor. Licensee will
indemnify and hold harmless Seller and its Subsidiaries (collectively, the
“Licensor Indemnified Parties”) from and against any and all Losses that may be
asserted against or paid, suffered or incurred by any Licensor Indemnified
Party that arise out of, result from, are based upon or relate to Licensee’s,
and any Sublicensee’s use of the Licensed Mark or Licensed Corporate Name; provided
that Licensee shall not be liable for any Losses that are found by the Board of
Arbitration in accordance with Section 11.2 or by express agreement between the
Parties to be due to the breach of any representation and warranty herein by
any Licensor Indemnified Party or default by the Licensor Indemnified Party.
Section 10.2. Recovery of Other Losses and Damages. Neither Party
is liable to the other Party, whether for negligence, breach of contract,
misrepresentation or otherwise, for:
10.2.1. except as expressly provided in Section 10.1 of this
Agreement, loss or damage incurred by the other Party as a result of Third
Party claims; or
10.2.2. indirect or consequential damage suffered by the other Party,
including without limitation, loss of profit, goodwill, business opportunity or
anticipated savings.
Section 10.3 Representations and Warranties.
10.3.1 Licensor represents and warrants to Licensee and Purchaser
that:
(a) to Licensor’s knowledge, the Licensed Mark does not infringe upon or
misappropriate any intellectual property rights of any Third Party;
(b) Licensee’s use of any of the Licensed Marks strictly in accordance
with this Agreement and the express instructions of Licensor do not and will
not infringe upon any Intellectual Property rights or any other rights of any
Third Party in jurisdictions in which Licensor currently has applied for
registration or has registration of the Licensed Marks;
18
(c) in the last twenty-four (24) months, Licensor has not made any
written claim and is not involved in any pending legal proceeding alleging that
any Third Party has infringed or misappropriated the Licensed Marks; and
(d) Licensor has full right and authority to grant the license set out
in Section 2.1, 2.4 and 2.5.
ARTICLE 11
RESOLUTION OF DISPUTES
Section 11.1. Dispute Resolution Procedure. The Parties will
cooperate in good faith and use commercially reasonable efforts to informally
resolve any dispute, controversy or claim (“Dispute”) arising out of or
relating to this Agreement, or the interpretation, breach, termination or
validity hereof. Except as otherwise provided in Section 11.2.4, if the Parties
are not able to informally resolve a dispute under this Agreement within thirty
(30) days after such dispute arises, the following procedure will be used:
11.1.1. one Party will serve upon the other Party a “Notice of
Dispute” that summarizes the nature of the dispute and the efforts taken to
resolve that Dispute to date;
11.1.2. within fifteen (15) Business Days of receipt of the Notice of
Dispute, the Parties will conduct one or more meetings (which may take place by
teleconference) of management level-representatives of each Party with knowledge
of the subject matter of the dispute, which representatives will use
commercially reasonable efforts to resolve the Dispute;
11.1.3. if the Dispute is not resolved at the meeting or meetings
described in Section 11.1.2, then within fifteen (15) Business Days from
the date of the last meeting, the Parties will schedule one or more meetings
(which may take place by teleconference) of executive-level representatives of
each Party, which representatives will use commercially reasonable efforts to resolve
the dispute; and
11.1.4. if, following the last executive level meeting, the dispute
remains unresolved, then such dispute will be finally settled by binding
arbitration conducted in accordance with Section 11.2 below.
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Section 11.2. Arbitration. Except as otherwise provided in
Section 11.2.4 below, if the Parties are unable to resolve a Dispute in
accordance with Section 11.1, then the Party that served the Notice of Dispute
on the other Party must submit the Dispute to arbitration by the Hong Kong
International Arbitration Centre under the rules of UNCITRAL (the “Rules”) as
are in force at the date of the notice of arbitration commencing any such
arbitration, but subject to the amendments made to the Rules by the rest of
this Section 11.2. For the purpose of such arbitration, there shall be a board
of arbitration (the “Board of Arbitration”) consisting of three arbitrators,
each of Licensor and Licensee shall select one (1) member and the third member
shall be selected by mutual agreement of the other members, or if the other
members fail to reach agreement on a third member within twenty (20) days after
their selection, such third member shall thereafter be selected by the Hong
Kong International Arbitration Centre upon application made to it for such
purpose. The place of arbitration shall be in
11.2.1 Each Party shall cooperate in good faith to expedite (to the
maximum extent practicable) the conduct of any arbitral proceedings commenced
under this Agreement.
11.2.2 The costs and expenses of the arbitration, including the fees of
the arbitration, shall be borne equally by each Party to the Dispute or claim,
and each Party shall pay its own fees, disbursements and other charges of its
counsel.
11.2.3 Any award made by the Board of Arbitration shall be final and
binding on each of the Parties that were Parties to the Dispute. The Parties
expressly agree to waive the applicability of any laws and regulations that
would otherwise give the right to appeal the decisions of the arbitration
tribunal so that there shall be no appeal to any court of law from the award of
the arbitration tribunal, and a Party shall not challenge or resist the
enforcement action taken by any other Party in whose favor an award of the
arbitration tribunal was given.
11.2.4 Notwithstanding this Section 11.2 or any other provision
to the contrary in this Agreement, no Party shall be obligated to follow the
foregoing arbitration procedures where that Party intends to apply to any court
of competent jurisdiction for an interim injunction or similar equitable relief
against the other, provided there is no unreasonable delay in the
prosecution of that application.
11.2.5 This Agreement and the rights and obligations of the Parties
shall remain in full force and effect pending the award in any arbitration
proceeding hereunder.
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ARTICLE 12
MISCELLANEOUS
Section 12.1. Entire Agreement. This Agreement (including the
Schedules attached hereto or delivered in connection herewith), the Acquisition
Agreement (including the Schedules and Exhibits attached thereto or delivered
in connection therewith) and the other Transaction Documents constitute the
entire agreement between the Parties and supersede all prior agreements and
understandings, oral and written, between the Parties with respect to the
subject matter hereof and thereof, including, without limitation, Section 5.19
of the Acquisition Agreement. If there is a conflict or contradiction between
this Agreement and the other agreements mentioned above, this Agreement shall
prevail in relation to any issues arising out of or in connection with the
Licensed Mark.
Section 12.2. Successors and Assigns.
12.2.1 The terms and conditions of this Agreement will inure to the
benefit of, and be binding upon, the respective successors and assigns of the
Parties hereto. This Agreement and the license and other rights granted or
created hereunder may not be assigned, in whole or in part, by Licensee without
the prior written consent of Licensor, and any attempted assignment shall be
null and void.
12.2.2 In the event that Licensee ceases to be a wholly-owned Subsidiary
of Purchaser, Licensee shall promptly assign this Agreement and the license and
other rights granted or created hereunder to Purchaser or a wholly-owned
Subsidiary of Purchaser.
Section 12.3. Modification and Waiver. No amendment, modification
or alteration of the terms or provisions of this Agreement will be binding
unless the same is in writing and duly executed by each of the Parties hereto,
except that any of the terms or provisions of this Agreement may be waived in
writing at any time by the Party which is entitled to the benefits of such
waived terms or provisions. No waiver of any of the provisions of this
Agreement will be deemed to or will constitute a waiver of any other provision
hereof (whether or not similar). No delay on the part of any Party to this
Agreement in exercising any right, power or privilege hereunder will operate as
a waiver thereof.
Section 12.4. Notices. Any notice, request, instruction or other
document or communications required or permitted to be given hereunder by any
Party to any other Party shall be provided in accordance with the terms of
Section 9.1 of the Acquisition Agreement.
Section 12.5. Governing Law. The validity, interpretation,
construction, performance and enforcement of this Agreement will be governed by
and construed in accordance with the laws of the State of
Section 12.6. Severability. If any provision of this Agreement or
the application of any such provision to any Person, Party or circumstance will
be held invalid, illegal or unenforceable in any respect by a court of
competent jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision of this Agreement and this Agreement will remain
in full force and effect and will be effectuated as if such illegal, invalid or
unenforceable provision is not part thereof.
21
Section 12.7. Schedules. The Parties hereto acknowledge and agree
that the Schedules attached hereto are an integral part of this Agreement, and
are hereby incorporated by reference herein and made a part hereof.
Section 12.8. Section Headings. The Recitals, the Table of
Contents, the List of Schedules and the headings of the articles, sections and
paragraphs contained in this Agreement are inserted for convenience only and
will not be deemed to constitute part of this Agreement or to affect the
construction thereof.
Section 12.9. Counterparts. This Agreement may be executed in two
or more counterparts, each of which will for all purposes be deemed to be an
original but all of which together will constitute one and the same instrument.
Section 12.10. Relationship of the Parties. The Parties
acknowledge and agree that none of the Parties is the employee, employer,
agent, partner or joint venture party of the other Parties. Neither Party shall
have, or hold itself out as having, the right or authority to assume or create
any obligation or responsibility, whether express or implied, on behalf of or
in the name of the other, except with the express written authority of the
other.
Section 12.11. No Strict Construction. Licensor and Licensee each
acknowledge that this Agreement has been prepared jointly by the Parties and shall
not be strictly construed against any Party.
Section 12.12. Language. This Agreement is in the English and
Chinese languages. Any Chinese version of this Agreement shall be for
convenience purposes only and shall not affect the interpretation hereof.
Section 12.13. Further Assurances. Each Party shall do and
execute, or arrange for the doing and executing of, each necessary act,
document and thing to implement this Agreement.
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IN WITNESS WHEREOF, Licensee and Licensor have caused this Agreement to
be duly executed in duplicate originals by their duly authorized
representatives as of the day and year first above written.
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MMM (BEJING) LIMITED |
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Chief Executive Officer |
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LICENSEE |
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XYZ INFORMATION TECHNOLOGY LIMITED |
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Name: |
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President and Chief Executive Officer |
23
Trademark License Agreement
Schedule 1.1
Definitions
As used in this Agreement, each of the
following capitalized terms will have the respective meanings set forth below:
“Agreement” means this Trademark
License Agreement and each and all of the Schedules and the Exhibit referred to
in, or attached to this Agreement, as may be amended from time to time by
mutual agreement of the Parties.
“Co-Branded Business” means the
provision by Purchaser or its Subsidiaries after the Closing Date of products
(other than personal computers and mobile phone handsets) and services (other
than hardware maintenance and support services) offered by the
Non-Telecommunications Business prior to the Closing Date (and any such product
or service after the Closing Date whose components have been enhanced or
upgraded if the resulting product or service provides the same function as the
product or service to which it is a successor) to any customer segment, but in
all events excluding individual customers and consumers.
“Law” means all national or local
laws, regulations and rules or, as applicable, the federal, state or local
constitutions, statutes, codes, rules, regulations, ordinances, executive
orders, decrees or edicts of any Governmental Authority having jurisdiction.
“LCSTSL Entrustment Period” means
the period from and including the Closing Date to, but excluding the date on
which the LCSTSL Equity Transfer has been effectuated pursuant to Section
4.1(d) of the Supplement.
“Licensed Marks” means the Marks
set forth in Schedule 2.1(ii).
“LWY Entrustment Period” means the
period from and including the Closing Date to, but excluding the date on which
the LWY Equity Transfer has been effectuated pursuant to Section 4.1(d) of the
Supplement.
“Marks” means trademarks, service
marks, trade names (whether registered or unregistered), service names, brand
names, brand marks, Internet domain names, identifying symbols, logos, emblems,
signs or insignia.
“Non-Compete Period” means the
period as set out in Section 5.8 of the Acquisition Agreement, where applicable
as modified or amended by the Supplement or any other agreement in writing.
“Qualified Subsidiary” means a
Subsidiary of Purchaser engaged only in the Co-Branded Business, none of the
outstanding share capital or other ownership interests of which will at the
time be owned by any Third Party engaged in one or more lines of business as
Seller is then engaged at the time such Subsidiary uses either the Licensed
Corporate Name or Licensed Marks, and Purchaser.
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“Supplement” means the Supplement
and Amendment No. 1 to the Acquisition Agreement.
“Third Party” means a Person other
than a Party or any director, officer, employee of a Party or an Affiliate of a
Party or their successors and assigns hereunder.
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Schedule 2.1
Manner of Use of Licensed Marks
(i) Licensed Marks to be used in the
following manner in connection with the Co-Branded Business:
OMISSIS
(ii) Licensed Marks to be used on a stand
alone basis
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OMISSIS
27
Schedule
2.5.1
(i)
Manner of Use of Licensed Corporate Name
1. |
When used in the name of any Subsidiary
domiciled outside the People’s Republic of |
2. |
When used in the name of any Subsidiary
domiciled outside the People’s Republic of |
“YYY MMM”
provided that no such use shall be made prior to
3. |
When used in the name of any Subsidiary
domiciled in the People’s Republic of |
and in English as “MMM YYY”.
(ii)
Manner of Use of Licensed Corporate Name in Certain Domain Names
(i) |
MMMsec.com |
(ii) |
MMMAI.com |
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Exhibit A
ACCESSION AGREEMENT
THIS ACCESSION AGREEMENT (this “Agreement”), dated as of ,
20 , is entered into by and between
(“Sublicensee”), a corporation organized under the laws of ,
XYZ Information Technology Limited (“Licensee”), a corporation organized
under the laws of the British Virgin Islands, and MMM (...........) Limited, a
company established under the laws of the People’s Republic of China (“Licensor”).
WHEREAS, reference is made to that certain Acquisition
Agreement dated as of July 27, 2004, as supplemented and amended (the “Acquisition
Agreement”) by and between YYY Holdings Inc. and MMM Group Limited (“Seller”)
and that certain Trademark License Agreement (this “License Agreement”),
dated as of ,
2004, by and between Licensee and Licensor.
WHEREAS, pursuant to Section 5.19 of the Acquisition
Agreement, Seller and Licensee agreed on the terms and conditions of licensing
Seller’s Licensed Marks to Licensee pursuant to the License Agreement.
WHEREAS, the License Agreement allows Licensee to sublicense
certain rights to Sublicense and Licensee wishes Sublicensee to accede to the
License Agreement in order to establish contractual privity with Licensor and
thereby obtain the same rights and obligations of Licensee under the License
Agreement without releasing Licensee from its obligations thereunder.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, the Parties, intending to be legally bound, hereby
agree as follows:
Section 1. Capitalized terms used but not defined herein have the
respective meanings ascribed to them in the License Agreement.
Section 2. Sublicensee hereby accedes to the License Agreement as if
originally a party thereto for purposes of the rights granted to it pursuant to
Section 2.1 thereof and subject to all terms and conditions pertaining to such
rights, with such terms and conditions applying mutatis mutandis to
Sublicensee (it being understood that Sublicensee shall not thereby acquire the
right to sub-license under Section 2.5 of the License Agreement), and
Sublicensee having contractual privity with Licensor.
Section 3. Licensee hereby acknowledges that it remains bound by the
terms and conditions of the License Agreement and that Sublicensee’s accession
to the License Agreement shall not operate as a novation, assignment,
substitution or release, of any kind, of Licensee from any of its duties or
obligations under the License Agreement. Licensee acknowledges that it shall be
responsible for the acts of Sublicensee under the License Agreement and shall
require that Sublicensee complies with all of the obligations imposed on
Licensee in relation to the rights sublicensed hereunder that are contained in
the License Agreement which obligations shall be fully incorporated in the
sublicense granted hereunder. Failure of or breach by Sublicensee to meet its
obligations under the sublicense granted hereunder shall be deemed a failure or
breach attributable to Licensee, as though Licensee itself had committed the
act or omission of Sublicensee and shall entitle Licensor to take action
against Licensee or Sublicensee as set forth in the License Agreement to
terminate the license grant.
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IN WITNESS WHEREOF, each of the Parties have caused this Agreement to be
duly executed in duplicate originals by their duly authorized representatives
as of the day and year first above written.
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LICENSOR |
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MMM (...........) LIMITED |
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Title: |
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LICENSEE |
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XYZ INFORMATION TECHNOLOGY LIMITED |
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By: |
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Name: |
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Title: |
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SUBLICENSEE |
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[
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By: |
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Name: |
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Title: |
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