AMG LICENSE AGREEMENT OCT 24 2018 Mark Amended
AMG LICENSE AGREEMENT OCT 24 2018 Mark Amended
AMG LICENSE AGREEMENT OCT 24 2018 Mark Amended
F. “License Proposal” means a bona fide term sheet signed by a potential Licensee which sets forth the basic
business terms of a License Agreement.
2. AGENCY GRANT
(A) Pursuant to the terms hereof, MLD hereby appoints AMG to represent MLD in the Territory in connection
with the merchandising of the Licensed Material on an exclusive basis, subject to MLD’s approval, for the
purpose of generating, negotiating and otherwise exploiting and entering into business opportunities in the
areas of the development of a multi-season television series, initiating visual production of said series,
and secure accompanying music soundtrack, media broadcast & merchandising rights directly
related and tied into these trademark rights and Intellectual Property.merchandising rights as defined
below in Paragraph 5.
(B) MLD agrees to refer to AMG all new inquiries received after the date of this Agreement relating to the
licensing or merchandising rights with respect to the Licensed Material.
(C) AMG shall have no authority to promote, negotiate, administer or manage any licensing arrangement
entered into by MLD prior to the effective date of this Agreement, unless and until such authority is
expressly granted to AMG by MLD in writing.
3. TERM
(A) This Agreement is for a term of 1 year and shall become effective as of November 1st, 2018 (the “Effective
Date”) and shall extend through and including November 1st, 2019 (hereinafter the “Term”), unless
terminated earlier in accordance with any provision herein. In the event the parties wish to renew or extend
this Agreement, beyond November 1st, 2019 a separate written agreement during the first 12 months of this
Agreement signed by each of the parties must be executed.
(B) Engage in such other activities as the parties may mutually agree upon and, in general, use its best efforts
consistent with sound business practices to maximize revenue generated from the exploitation of the rights
granted hereunder and to enhance the value and reputation of the Licensed Material.
(C) While AMG is empowered to propose all necessary art, design, editorial and other related approvals for the
creation of the Licensed Material, as well as to enforce the appropriately high standard of quality for all
such Licensed Material created and produced pursuant to License Agreements entered into pursuant to this
Agreement, MLD retains the right to grant final, or interim when specifically requested, approval on art,
design and editorial matters. AMG agrees to submit to MLD, for final approval, drafts, prototypes, and
finished samples of all Licensed Material and any and all advertising, promotional and packaging material
related to said Licensed Material. MLD will respond to AMG regarding approval within ten (10) business
days after receipt of such samples. Failure to respond within said period shall be deemed disapproval by
MLD. AMG further agrees to provide MLD, prior to the commencement of distribution of any Licensed
Material at least two (2) complete samples of all Licensed Material being manufactured and/or distributed
by each Licensee and all advertising, promotional and packaging material related to same for purposes of
verifying AMG’s approval of quality, as well as to ensure, solely at the discretion of MLD, that the
appropriate trademark and/or copyright notices have been applied to the Licensed Material and to the
advertising, promotional and packaging material related to said Licensed Material. If, in the sole judgment
of MLD, the quality of any Licensed Material or of any advertising, promotional or packaging material
relating to said Licensed Material is not of acceptable standards, MLD reserves the right to require AMG to
use commercially reasonable efforts to remedy the problem with the Licensee in question.
(D) Work together with MLD to explore fully any internal resources that MLD may possess that may be
beneficial to the success of its licensing program established hereunder.
(E) Work together with MLD to explore fully promotional opportunities with other companies that may assist
MLD in its overall business objectives and the success of its licensing program established hereunder.
4. AMG’S COMPENSATION
(A) During the Term of this Agreement, AMG’s sole compensation for the services that it renders pursuant to
this Agreement (excluding the current licenses set forth) shall be a commission based on a percentage of
cumulative Gross Royalty and Advance Income received during the Term of this Agreement, and any
extensions thereof, from Licensees obtained by AMG for all Licensed Material as follows:
15% of the cumulative Gross Royalty Income from all licensees and;
15% of cumulative Gross Advance Income from all licensees;
5% of cumulative Gross Royalty Income from all licensees generating Gross income above
$100,000,000.
(B) For purposes of this Agreement, “Gross Royalty Income” shall mean all royalty payments, including
guarantees, advances paid against royalties, and all other consideration of any type or nature that are
collected and paid to MLD pursuant to a License Agreement.
(C) Upon expiration or termination (whichever is sooner) of this Agreement (collectively referred to herein as
the “termination date”), AMG shall be entitled to compensation according to the commission percentage in
Subparagraph 4(A) above for a period of perpetuity following such termination date, for all Gross Royalty
Income derived from license agreements entered into during the term of this Agreement except as per 6.
(D), below. At the termination date of this Agreement, if MLD, within twelve months of the termination
date, should enter into a License Agreement with a third party based upon a License Proposal from a
potential Licensee received by AMG and presented to MLD within twelve (12) months prior to the
termination date hereof, then AMG shall be entitled to compensation from said license agreement
according to the commission percentage in Subparagraph 6(A) above for a period of 36 months following
such termination date, for all Gross Royalty Income derived from the license agreement. AMG shall
provide to MLD a list of said License Proposals within 30 days of termination date.
Mark S. Berry, Bobby Tarantino, Duane Farley – Executive Producers for AMG
AMG Music Film & Television Logo Credit
All direct AMG development expenses pertaining to the IP will be taken from development fund monies
initialized as outlined in a USE of FUNDS document to be generated by AMG.
6. TRADEMARK PROTECTION
(A) It is understood that all Licensees shall be required to take any necessary precautions as specified by MLD
to protect the Trademarks, including the placing of appropriate trademark notices on all Licensed Material
as well as on all advertising, promotional and packaging material relating to said Licensed Material. The
following notices, at a minimum, will be required of all such Licensees:
™
and/or ® Designates a Trademark of MLD.
(B) MLD shall bear the responsibility and cost of obtaining and maintaining those trademark registrations
which, in the sole opinion of MLD, should be obtained and maintained; provided, however, that MLD shall
use its best efforts to obtain trademark registrations for all product categories for which the Trademarks
have been licensed and which are actively marketed within the Territory for which registration is
requested.
(C) AMG agrees to give MLD prompt written notice of any unlicensed use by third parties of Licensed
Material or Trademarks, and AMG will not, bring or cause to be brought any criminal prosecution, lawsuit
or administrative action for infringement, interference with or violation of any rights to Licensed Material
or Trademarks either by itself or on behalf of MLD. AMG shall not have any right to recover or share in
any damages or other monetary relief that MLD recovers for any violation of its rights to the Licensed
Material or Trademarks for which AMG does not participate as a party. AMG shall have no responsibility
or obligation to participate as a party in any action without its prior written consent which is subject to
AMG’s sole and absolute discretion, and should AMG elect to give its consent and become a party, MLD
agrees to reimburse AMG for its reasonable expenses incurred at MLD’s request, including reasonable
attorney’s fees. Only in the event that AMG shares in the expenses of said action shall AMG be entitled to
share in any damages or other monetary relief recovered, in proportion to AMG’s share of the expense.
7. WARRANTIES AND INDEMNIFICATIONS
(A) MLD represents and warrants that it is the owner of all rights in and to the Trademarks and that it has the
right to grant the rights herein granted to AMG. MLD further represents that it has not granted any other
person or firm the right and authority to represent MLD with respect to the Trademarks in such a capacity
that, to MLD’s knowledge, would be in conflict with this Agreement.
(B) During and after the term hereof, MLD agrees to defend, indemnify and hold AMG, its stockholders,
directors, officers, employees, agents, parent companies, subsidiaries, and affiliates, harmless from and
against any claims, liabilities, judgments, penalties, and taxes, civil and criminal, and all costs, expenses
(including, without limitation, reasonable attorneys’ fees) which may arise out of or be related to MLD’s
warranty, as above stated.
(C) During and after the term hereof, AMG hereby agrees to defend, indemnify and hold MLD and any of its
related entities, including each of their stockholders, directors, officers, employees, agents, parent
companies, subsidiaries, and affiliates, harmless from and against any and all claims, liabilities, judgments,
penalties, and taxes, civil and criminal, and all costs, expenses (including, without limitation, reasonable
attorneys’ fees) which may arise out of any intentional or negligent acts by AMG, other than as it may
relate to the MLD’s warranty, as above stated.
(D) AMG and MLD agree to give each other prompt written notice of any claim or suit which may arise under
the indemnity provisions set forth above.
8. BOOKS AND RECORDS; RECONCILIATION; RIGHT TO AUDIT
(A) AMG MLD agrees to keep and maintain accurate and up-to-date books and records relating to its
obligations under this Agreement, the MLD attorney IOLTA Royalty Account, and each License
Agreement. AMG MLD shall preserve such records for a period of two (2) years after either termination or
expiration of this Agreement.
(B) All payments received shall be payable to the law firm of MLD, which firm shall initially be Maier
Gutierrez and Associates (“MGA”), or such other law firm as may be designated by MLD. All funds shall
be held in the attorney IOLTA, and shall be distributable to the parties no less than once per calendar
month. AMG shall conduct a quarterly reconciliation and the duly designated law firm shall endeavor to
remit to MLD and AMDAMG within forty (40) days, but in no event longer than forty-five (45) days of
the end of each Quarter all Net Revenues not already remitted by AMG the law firm during such Quarter.
“Quarter” shall be defined as a calendar quarter beginning on January 1, April 1, July 1, and October 1 of
each calendar year during the Term. “Net Gross Revenues” shall be defined as Gross Royalty Income less
AMG’s compensation and expense reimbursements permitted pursuant to the terms of Paragraph 6 4
hereof. All payments under this subparagraph to MLD AMG shall be accompanied by a quarterly report
reconciling the payments to MLD.
(C) During the Term of this Agreement and for a period of two (2) years after either termination or expiration
of this Agreement, MLD either party may, during reasonable business hours, audit the books and records
of AMG the law firm relating to monies collected under this Agreement and of the MLD law firm’s
IOLTA Royalty Account in order to verify the accuracy thereof and of the royalty reports generated by
AMG and funded in distribution to the parties by the law firm hereunder. In the event that there is any
discrepancy in MLD’s either parties’ favor between the amount actually paid MLD one party and that
which was owed MLDthat party, AMG the overpaid party shall immediately remit payment to MLD the
underpaid party in the amount of such discrepancy plus any interest calculated at the then-prevailing prime
rate. In the event that there is any discrepancy in MLD’s favor between the amount actually paid MLD and
that which was owed MLD, and such amount exceeds $5,000 for each year the Agreement is in effect,
AMG shall be responsible for payment of MLD’s costs of auditing the books and records of AMG.
9. RELATIONSHIP OF THE PARTIES
This Agreement shall not be construed to place the parties in the relationship of partners or joint venturers.
It is understood and agreed that AMG is acting as an independent contractor and that neither party shall
have any right or power to obligate, bind, or commit the other to any expense, liability, or matter other
than as expressly provided and authorized in this Agreement. Specifically, AMG and MLD acknowledge
that AMG has no authority to bind MLD to any licensing commitment to any potential licensees, and all
such commitments are only binding upon MLD pursuant to a License Agreement fully executed by both
MLD and Licensee.
10. ASSIGNMENT/SUB-LICENSE
AMG’s rights and/or obligations hereunder shall not be assigned or delegated by any act of AMG except
upon the express written approval of MLD. AMG shall have no right to grant any licenses or sub-licenses
without MLD’s prior express written approval. MLD shall, however, have the right to assign its rights and
delegate its obligations under the Agreement without the prior approval of, but with reasonable written
notice to, AMG.
(C) Notwithstanding anything to the contrary herein, at any time subsequent to the initial six month period of
the Term, MLD shall have the ability to terminate this Agreement, should MLD deem, in its sole and
absolute discretion, that AMG has not made sufficient progress. In the event that MLD enters into active
negotiations for usage of the IP, in any capacity, the agreement extends for an additional 6 months from the
expiry date of the initial term.
13. NOTICES
All notices hereunder shall be given by addressing them as indicated below
and by depositing them as certified mail or registered mail, return receipt
requested, postage prepaid, or by delivering them to a national overnight
courier service. Such notice shall be effective as of the date of receipt by the
other party. The addresses of the parties until further notice are:
Mark Berry
Chairman & CEO
Jay Bloom, Jonathan Scott AMG (8880654 CANADA INC)
Chairman & CEO / MLD 141 Spadina Avenue, Suite 204
Toronto, ON Canada M5V2K8
14. JURISDICTION AND CHOICE OF LAW
This Agreement and the enforcement hereof shall be subject exclusively to the internal laws (but not the
choice or conflicts of law rules) of the Sate of Nevada, Country of USA. The parties hereby irrevocably
waive any right they may have to assert the application of any other law of any other state or nation in any
legal action between them. The parties agree that no action or proceeding may be maintained by one
against the other except either in Superior Court for the state of Nevada and that this court shall have
exclusive jurisdiction over such action or proceeding.
15. CAPTIONS
The captions used in connection with the paragraphs and subparagraphs of this Agreement are inserted
only for purposes of reference. Such captions shall not be deemed to govern, limit, modify or in any other
manner affect the scope, meaning or intent of the provisions of this Agreement or any part thereof nor
shall such captions otherwise be given any legal effect.
16. CONSTRUCTION
The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair
meaning and not strictly for or against any of the parties. Headings of paragraphs herein are for
convenience of reference only and are without substantive significance.
17. GOODWILL
AMG acknowledges that the rights and powers retained by MLD hereunder are necessary to protect
MLD’s trademarks, copyrights and property rights, and, specifically, to conserve MLD’s goodwill and
good name, and the Trademarks, and therefore AMG agrees that AMG will not allow the same to become
involved in matters which will, or could, detract from or impugn the public acceptance and popularity
thereof, or impair their legal status.
18. MODIFICATIONS OR EXTENSIONS OF THIS AGREEMENT
Except as otherwise provided herein, this Agreement can only be extended or modified by a writing signed
by both parties; provided, however, that certain modifications shall be effective if signed by the party to be
charged and communicated to the other party.
19. INTEGRATION
This Agreement constitutes the entire understanding of the parties, and revokes and supersedes all prior
agreements between the parties, and is intended as a final expression of their Agreement. It shall not be
modified or amended except in a writing specifically referring to this Agreement. This Agreement shall
take precedence over any other documents which may be in conflict with said Agreement.
20. POWER TO SIGN
The parties warrant and represent that their respective representatives signing this Agreement have full
power and proper authority to sign this Agreement and to bind the parties.
21. SURVIVAL OF OBLIGATIONS
The respective obligations of the parties under this Agreement, which by their nature would continue
beyond the termination or expiration of this Agreement, shall survive termination or expiration of this
Agreement.
22. SEVERABILITY OF PROVISIONS
The terms of this Agreement are severable and the invalidity of any term of this Agreement shall not affect
the validity of any other term.
23. FORCE MAJEURE
If either party is delayed, or interrupted in, or prevented from the performance of its obligations hereunder
by reason of an act of God, fire, flood, war, public disaster, strikes or labor difficulties, governmental
enactment, regulation or order, or any other cause beyond its control, and if such party has given the other
party prompt notice thereof and, on request, such confirmatory documentation as the other party may
reasonably request and has in good faith kept the other party apprised of when the delay, interruption or
prevention is expected to be resolved, the time for the performance of the party’s obligations shall
thereupon be extended for a period equal to the duration of the contingency that occasioned the delay,
interruption or prevention, but not exceeding ninety (90) days unless otherwise mutually agreed. If the
force majeure condition continues for more than ninety (90) days, either party may terminate this
Agreement upon written notice to the other party.
24. Non-Circumvention. The parties do hereby jointly and severally agree and mutually guarantee
each other, that: neither party nor any and all other associates thereof shall directly or indirectly
interfere with, circumvent, or attempt to circumvent, avoid, by-pass, or obviate each other's interest(s)
and/or the interest(s) of any and all other party(ies) and/or assigns hereof, specifically but not limited
to: producers, publicists, media, licensees, promoters, buyers, brokers, distributors, merchandisers,
financial institutions, technology owners, whether foreign or domestic; whether to satisfy curiosity,
change or avoid established procedures, contractual and/or other provisions, prices, fees, and/or for any
other purpose(s) whatsoever; such being the sole and exclusive domain of AMG and/or duly authorized
assigns thereof.
25. Confidentiality/Nondisclosure. The parties do hereby jointly and severally agree, that: for a
period of not less than Ten (10) years following the date of expiration of this agreement: any and all
contents hereof, and any and all addendums hereto being a part hereof, specific provisions or
otherwise, and any and all documentations whatsoever (ie: faxes, email, any and all correspondence,
recorded, written or otherwise) with respect hereto: are confidential: and shall be held and otherwise
kept in absolute confidentiality from any and all other persons, parties and/or entities
what/whomsoever not a signatory hereto, and neither party hereof shall use, or attempt to use, the
other party and/or any and all associates and/or assigns thereof, with respect to reference(s) of any
form and/or nature whatsoever.
By: By:
JAY BLOOM - MLD
MARK S. BERRY
Title: Title:
Date: Date:
By:
JONATHAN SCOTT - MLD
Title
:
Date
: