INTERPRETATION OF THE AGREEMENT BETWEEN CHAD KNIGHT AND MIGHTY JAXX
- Grant of license
Chad Knight allows Mighty Jaxx to develop, manufacture, market, promote, and distribute the licensed products.
Mighty Jaxx will pay Chad on or before the end of the 30th day of each quarter of the year. Mighty Jaxx shall retain all documents relating to the payment, Chad can inspect them upon serving Mighty Jaxx sufficient notice.
- Licensed Products
- Mighty Jaxx will show Chad the preliminary drawings of proposed models of the Licensed Product. Chad will review the concepts and drawings and respond before 7 days expiry. For toys with a retail market of below USD 1000, Mighty Jaxx will provide Chad with 10 samples whereas those above USD 1000, Mighty Jaxx will provide Chad with 2 samples. The samples provided to Chad will not be resold by him.
- Mighty Jaxx can sub-contract the manufacture and distribution of licensed products.
- Mighty Jaxx has the sole discretion of setting the prices for the products.
- Marketing Obligations
- Both Parties will apply their best efforts in marketing and promoting the sale of the licensed product. Chad allows Mighty Jaxx to use, alter, and touch up or Record Chad’s work.
- Chad agrees to feature in any videos or blog posts in order to market the products
- Both parties agree to keep the aspects of the agreement and any material information confidential.
- Chad’s Representations and Warranties
Chad represents that he is the sole and exclusive owner of all intellectual property rights in relation to the licensed products.
This Contract will be from 30th November 2020 to 30th December 2020. If parties wish to renew, it will be from 1st January 2024 to 30th December 2025. However, the Contract can be terminated earlier if the following instances:
- Chad gives Mighty Jaxx a written notice detailing, Mighty Jaxx’s breach of the contract, if after 14 days Mighty Jaxx does not cure the default, the contract will be terminated.
- If Mighty Jaxx manufactures or sells Chad’s licensed products without obtaining prior permission from Chad.
- If Mighty Jaxx fails to pay Chad any amounts due to him.
- If Mighty Jaxx becomes bankrupt.
Mighty Jaxx may terminate the Contract if:
- Chad commits any material breach of the agreement and within 14 days’ notice, Chad does not correct the breach.
- Chad manufactures or sells or appoints a third party to manufacture and sell merchandise similar to that of Mighty Jaxx.
- If Chad transfers his rights to a third party with relation to licensed products.
- If Chad engages in conduct that adversely affects the reputation and value of the Licensed Products.
- If Chad is declared bankrupt.
IF THE CONTRACT TERMINATES
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