License Agreement20 Jan.docx
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License Agreement20 Jan.docx
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LicenseAgreement20Jan
LICENSEAGREEMENT
THISTECHNICALSERVICESAGREEMENTmadethedayof,
BETWEEN:
_________________abodycorporatepursuanttothelawsofHongKongSpecialAdministrativeRegionwithaheadofficeat__________________________(hereinaftercalledthe"Owner")
OFTHEFIRSTPART,
AND
C.T.E.W.Hospitality(Asia)Limited,abodycorporatepursuanttothelawsofHongKongSpecialAdministrativeRegionwithacorporateofficeat16/FEmpressPlaza,17-19ChathamRoadSouth,TsimShaTsui,Kowloon,HongKong(hereinafter“Rhombus”asthetitleof“RhombusHotels&Resorts”,istheproprietarypropertyofC.T.E.W.)
OFTHESECONDPART.
ThedefinitionsofcapitalizedandcertainothertermsarefoundinAppendixA.Inconsiderationofthefollowingmutualpromises,thepartiesagreeasfollows:
1.LICENSE-RHOMBUShastheexclusiverighttolicenseandfranchisetothespecifiedpropertythedistinctive"RhombusHotels"Systemforprovidingguesthotel/lodgingservices.WegranttoyouandyouaccepttheLicense,effectiveandcommencingontheOpeningDateandendingontheearliesttooccuroftheTerm’sexpiration,aTransferoraTermination.YouwillcalltheFacilitya“RhombusHotels&Resorts-”orothernameasmutuallyagreed.Thetitle,“RhombusHotels&Resorts”,istheproprietarypropertyofC.T.E.W.HospitalityandshouldthisAgreementbeterminatedthetitle“RhombusHotels&Resorts”maynolongerbeusedorassociatedwiththeoperationasdetailedinSection12.YoumayadoptadditionalorsecondarydesignationsfortheFacilitywithourpriorwrittenconsent,whichwemaywithhold.
Trademarks,servicemarksorothertraderegistrationofC.T.E.W.Hospitality,RhombusHotels&Resorts,RhombusInternationalHotelsGrouporanyofitssubsidiarieswhichmaybeusedinconnectionwiththeproperty,doesnotresultinanyrightbeingacquiredorimpliedtoanytrademark,servicemarkorothertraderegistrationofonepartytotheotherparty.
AspartoftheLicenseAgreement,theoperationisclassifiedandpromotedaspartofRhombusInternationalHotelsGroup.AcknowledgementoftheassociationismadebythelogoandnameRhombusInternationalHotelsGrouponprintedmaterials,collateralandotherappropriateareasanditemsofidentificationinlinewithRhombusStandards,policiesandprocedures.TheRhombusnameandlogoaretheproprietarypropertyofC.T.E.W.HospitalityandshouldthisAgreementbeterminated,suchacknowledgementmaynolongerbeusedasdetailedunderSection12.
2.TERM–TheTermbeginsontheEffectiveDateandexpiresonthedaypriortothe5thanniversaryoftheOpeningDatewithanoptiontorenewalforanadditionalfive(5)-yearterm,however,someofyourdutiesandobligationswillsurviveterminationorexpirationofthisAgreement.
ThisAgreementshallbeconcurrentwiththeManagementServiceAgreement;however,theLicenseAgreementisabletooperateindependentlyoftheManagementServiceAgreement.
3.MARKETINGASSOCIATION-Youshallbecomeandremainamemberingoodstandingof,participateinandsupporttheactivitiesof,aMarketingAssociation.ThepurposeoftheMarketingAssociationistoadvancetheinterestofthememberstoprovidemeansforco-operativesalespromotionandadvertisingprograms,topromotethegeneralwelfareofthechainasawholeandtoencouragetheuseofgoodmerchandisingpracticesforthebenefitoftheChain.
4.YOURIMPROVEMENTANDOPERATINGOBLIGATIONS-Yourobligationstoimprove,operateandmaintaintheFacilityare:
4.1Improvements-YoumustselectandacquiretheLocation,andyoumustalsoacquire,equipandsupplytheFacilityinaccordancewithRhombusSystemStandards.YoumustprovideuswithproofthatyouownorleasetheFacility(fortheTerm)beforeorwithinthirty(30)daysaftertheEffectiveDate.
AllimprovementswillcomplywithRhombusSystemStandards.YourgeneralcontractororyoumustcarrytheinsurancerequiredunderthisAgreementduringanyandallrenovations.YoumustcompletetheimprovementsspecifiedonthePunchListandtheFacilitymustpassitspre-openingqualityassuranceinspectionbeforeweconsidertheFacilitytobereadytoopenundertheSystem.
Wemayatoursolediscretion,terminatetheAgreementbygivingwrittennoticetoyou(subjecttoapplicablelaw)if:
(i)youdonotcommenceorcompletetheimprovementsoftheFacilitybythedatesspecifiedinScheduleC;or(ii)youprematurelyidentifytheFacilityasaChainFacilityorbeginoperationundertheSystemnamedescribedinScheduleBinviolationofSection4.3andyoufailtoeithercompletethepre-openingImprovementObligationorceaseoperatingand/oridentifyingtheFacilityundertheMarksandSystemwithinfive(5)daysafterwesendyouwrittennoticeofdefault.
TimeisoftheessencefortheImprovementObligation.Wemay,however,atoursolediscretiongrantoneormoreextensionoftimetoperformanyphaseoftheImprovementObligation.Thegrantofanextensionwillnotwaiveanyotherdefaultexistingatthetimetheextensionisgranted.
4.2ImprovementPlans-YouwillcreateplansandspecificationsfortheworktomeetRhombusSystemStandardsandifwesorequestandsubmitthemforourapprovalbeforestartingimprovementoftheLocation.WewillnotunreasonablywithholdordelayourapprovalwhichisintendedonlytotestcompliancewithSystemStandards,andnottodetecterrorsoromissionsintheworkofyourarchitects,engineers,contractorsorthelike.Ourreviewdoesnotcovertechnicalarchitecturalorengineeringfactors,orcompliancewithfederal,provincialorlocallaws,regulationsorcoderequirements.Wewillnotbeliabletoyourlenders,contractors,employees,guests,othersoryouonaccountofourrevieworapprovalofyourplans,drawingsorspecifications,orourinspectionoftheFacilitybefore,duringorafterrenovationorconstruction.AnymaterialvariationfromtheApprovedPlansrequiresourpriorwrittenapproval.Youwillpromptlyprovideuswithcopiesofpermits,jobprogressreports,andotherinformationaswemayreasonablerequest.Wemayinspecttheworkwhileinprogresswithoutpriornotice.
4.3Pre-Opening-YoumayidentifytheFacilityasaChainFacilitypriortotheOpeningDate,orcommenceoperationoftheFacilityunderaMarkandusingtheSystem,onlyafterfirstobtainingourapproval.IfyouidentifytheFacilityasaChainFacilityoroperatetheFacilityunderaMarkbeforetheOpeningDatewithoutourexpresswrittenconsent,theninadditiontoourremediesunderSections4.1andSection11,youwillbeginpayingtheRoyaltytous,asspecifiedinSection7.1,fromthedateyouidentifyoroperatetheFacilityusingtheMark.WemaydelaytheOpeningDateuntilyoupaytheRoyaltyaccruingunderthisSection.
4.4Operation-YouwilloperateandmaintaintheFacilitycontinuouslyaftertheOpeningDateonayear-roundbasisasrequiredbyRhombusSystemStandardsandofferguesthotel/lodgingandotherrelatedservicesoftheFacility(includingthosespecifiedinScheduleB)tothepublicincompliancewiththelawandRhombusSystemStandards.YouwillkeeptheFacilityinaclean,neatandsanitarycondition.Youwillclean,repair,replacerenovate,refurbish,paintandredecoratetheFacilityanditsFF&EasandwhenneededtocomplywithRhombusSystemStandards.TheFacilitywillacceptpaymentfromguestsbyallcreditanddebitcardswedesignateintheRhombusSystemStandardsManual.Youmayaddtoordiscontinuetheamenities,servicesandfacilitiesdescribedinScheduleB,orleaseorsubcontractanyserviceofportionoftheFacility,onlywithourpriorwrittenconsentwhichwewillnotunreasonablywithholdordelay.Yourfrontdeskoperation,telephonesystem,parkinglot,swimmingpoolandotherguestservicefacilitiesmaynotbesharedwithorusedbyguestsofanotherlodgingfacility.
4.5Training-You(orapersonwithexecutiveauthorityifyouareanentity)ortheFacility’sgeneralmanagerwillattendthetrainingprogramsdescribedinSection5.1wedesignateasmandatoryforlicenseesorpersonneloflicensees,respectively.YouwilltrainorcausethetrainingofallFacilitypersonnelasandwhenrequiredbyRhombusSystemStandardsandthisAgreement.Youwillpayforalllodging,mealsandcompensationexpensesofthepeopleyousendfortrainingprograms,thecostoftrainingmaterialsandotherreasonablechargeswemayimposefortrainingunderSection5.1,andalltravel,lodging,mealandfacilityandequipmentrentalexpensesofourrepresentativeiftrainingisprovidedattheFacility.
4.6Marketing
4.6.1YouwillparticipateinSystemmarketingprograms,includingtheDirectoryandtheReservationSystemorinanysuchprogramsprovidedbyus.YoumustobtainandmaintainthecomputerandcommunicationsserviceandequipmentwespecifytoparticipateintheReservationSystem.Youwillcomplywithourrulesandstandardsforparticipation,andwillhonourreservationsandcommitmentstoguestsandtravelindustryparticipants.YouwilladvertiseandpromotetheFacilityonalocalorregionalbasis,theformandcontentofwhichshallbeinconformitywithRhombusSystemStandardsandconsistentwiththestyleofadvertisinginusebytheChain.YouradvertisingmaterialsmustusetheMarkscorrectlyandmustcomplywithRhombusSystemStandardsorbeapprovedinwritingbyuspriortopublication.Youwillstopusinganynon-conforming,outdatedormisleadingadvertisingmaterialsifwesorequest.
4.6.2Youmayparticipateinanyregionalmarketingtrainingormanagementallianceorco-operativeofChainlicenseesformedtoservetheChainFacilitiesinyourareas.Wemayassisttheco-operativecollec
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