6. RECORDS AND AUDIT RIGHTS
a. Licensee agrees to maintain complete, accurate, and up-to-
date records for purposes of reporting sales and calculating payments
under this Agreement. Records will be maintained for five (5) years
beyond the date on which the record was created. Licensee will
permit authorized agents or representatives of Licensor to inspect
and make copies of such records, at any reasonable times during
business hours, to verify the records, reports, and royalty amounts
due Licensor hereunder. Licensor will provide at least five (5) days
written notice to Licensee prior to such audits at which time
Licensee will be prepared to make its records available and
accessible to Licensor. Licensor will bear any costs and expenses
(excluding Licensee's) associated with such audit, except that in the
event the results of any audit show the amounts payable to Licensor
are greater by five (5) percentage points than the amounts reported
and paid to Licensor for the audited period, then Licensee (i) will
pay Licensor for costs and expenses associated with such audit, and
(ii) pay Licensor all amounts determined to be owed to Licensor with
interest as calculated in section 5(a). Such amounts will be paid to
Licensor by Licensee within thirty (30) days of Licensee's receipt of
written notice from Licensor.
Agents or representatives of Licensor will also have the right to
verify Licensee's (i) use of Licensed Marks are within the scope of
the grant in section 1 – Grant of License; (ii) compliance with its
obligations to use and protect Licensor's Other Intellectual Property
as set forth in section 2 – Other Intellectual Property; and (iii)
compliance with the manner and form of trademark usage and quality of
Articles.
Licensor will have the right to conduct audits associated with this
section subsequent to any effective date of termination or
cancellation of this Agreement.
7. CANCELLATION.
a. In the event that Licensee fails to perform or otherwise
breaches any obligation under section 3. of this Agreement, or in the
event that Licensee fails to perform or otherwise breaches any other
provision of this Agreement and fails to remedy such breach within
thirty (30) days of receipt of written notice thereof, or in the
event that Licensee discontinues business, becomes insolvent, has a
receiver appointed, goes into liquidation, or becomes party to any
action relating to the bankruptcy or insolvency of Licensee which is
instituted and not dismissed within thirty (30) days, or in the event
of the failure of Licensee's trustee in bankruptcy or Licensee as a
debtor in possession to assume this Agreement within sixty (60) days
after the filing of a bankruptcy petition; then Licensor will have
the option to either (i) terminate all of Licensee's rights and
Licensor's unperformed obligations with respect to this Agreement
effective immediately upon written notice to Licensee or (ii)
continue this Agreement in full force and effect without waiving any
rights or remedies of Licensor. Licensee agrees to promptly notify
Licensor of the occurrence of any of the events set forth in this
subsection 7.a. relating to Licensee's continuing business operations
or financial condition.
b. Cancellation of this Agreement or termination pursuant to any
of its provisions will not relieve Licensee of its obligations
incurred prior to such termination or cancellation, will not preclude
or limit any of Licensor's rights or remedies as set forth in other
sections of this Agreement or provided by law in the event of default
or breach by Licensee, and will not preclude or limit Licensor in
seeking and obtaining damages or other relief from Licensee. Upon
termination or cancellation of this Agreement by Licensor, royalties
accrued up to and including the effective date of such termination or
cancellation will be immediately due and owing to Licensor by
Licensee.
c. Licensor will not be liable to Licensee for damages of any
kind, including, without limitation, incidental or consequential
damages, on account of the cancellation of this Agreement in
accordance with this section 7. Licensee expressly waives any right
it might otherwise have to receive any compensation or reparations on
termination or cancellation of this Agreement. Licensor will not be
liable to Licensee, on account of termination or cancellation of this
Agreement, for reimbursement or damages for loss of goodwill,
prospective profits or anticipated orders, or on account of any
expenditures, investments or commitments made by Licensor or Licensee
or for any other reason whatsoever based upon or arising out of such
termination or cancellation.
d. In the event that this Agreement expires or is terminated by
Licensor pursuant to subsection 7.a. hereof, Licensee will promptly
destroy all Articles, packaging, and promotional materials in
Licensee's possession or control which carry any of the Licensed
Marks unless Licensor has agreed in writing to an alternative
disposition thereof.
8. INFRINGEMENTS BY THIRD PARTIES.
Licensee will promptly notify Licensor of any infringement or
suspected infringement of any of the Licensed Marks, and Licensee
will not communicate with any infringer or suspected infringer
without obtaining the prior written approval of Licensor. Licensor
will have the exclusive right to sue infringers of Licensed Marks
and/or Licensor's rights in Other Intellectual Property, and Licensee
will have no claim to the proceeds of any such lawsuits or
settlements related thereto. Licensor will have the sole right to
determine whether or not to sue, and failure to sue will not affect
Licensee's obligations under this Agreement. Licensee will, upon the
request of Licensor and at Licensor's expense, assist Licensor in the
investigation of, and any legal action related to, any such
infringement.
9. SUPPORT AND ASSISTANCE OF LICENSEE.
In the event that Licensor desires or attempts to obtain additional
registrations for Licensed Marks in any country, or to record or
cancel the recording of this Agreement in any country, Licensee will
support Licensor's efforts in that regard and, at Licensor's request
and expense, assist Licensor in all respects including, but not
limited to, the providing of information, the preparation and making
of affidavits, and the execution of documents. Licensee will not,
however, seek to register any of the Licensed Marks in any
jurisdiction unless specifically requested in writing by Licensor.
10. REFERENCE TO BOEING.
Licensee will not, without the prior written approval of Licensor,
make reference to Boeing, Boeing Management Company, The Boeing
Company, this Agreement, or any relationship between Licensor and
Licensee, in the promotion, sale, or distribution of Articles.
11. DISCLAIMER.
LICENSOR MAKES NO WARRANTIES OR GUARANTEES EITHER EXPRESS OR IMPLIED,
ARISING BY LAW OR OTHERWISE, WITH RESPECT TO LICENSED MARKS, OTHER
INTELLECTUAL PROPERTY, OR ANY OTHER THING PROVIDED TO LICENSEE UNDER
THIS AGREEMENT. LICENSOR SPECIFICALLY DISCLAIMS, AND LICENSEE AGREES
THAT LICENSOR WILL HAVE NO OBLIGATION OR LIABILITY FOR, ANY: (A)
IMPLIED WARRANTY OF MERCHANTABILITY; (B) IMPLIED WARRANTY OF FITNESS
FOR A PARTICULAR PURPOSE; (C) IMPLIED WARRANTY ARISING FROM COURSE OF
PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE; (D) IMPLIED
WARRANTY OF TITLE; (E) CLAIM OF INFRINGEMENT; (F) CLAIM UNDER FEDERAL
OR STATE TRADEMARK LAWS, FEDERAL COPYRIGHT LAWS, PATENT LAWS, OR ANY
OTHER INTELLECTUAL PROPERTY OR UNFAIR COMPETITION LAWS; OR (G)
OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR NOT
ARISING IN WHOLE OR IN PART FROM LICENSOR'S NEGLIGENCE (WHETHER
ACTIVE, PASSIVE, OR IMPUTED), FAULT, STRICT LIABILITY OR PRODUCT
LIABILITY.
12. WAIVER AND RELEASE BY LICENSEE.
LICENSEE WAIVES, RELEASES AND RENOUNCES (A) ALL WARRANTIES,
OBLIGATIONS AND LIABILITIES OF LICENSOR, AND RIGHTS, CLAIMS AND
REMEDIES OF LICENSEE AGAINST LICENSOR, EXPRESS OR IMPLIED, ARISING BY
LAW OR OTHERWISE, WITH RESPECT TO LICENSED MARKS, OTHER INTELLECTUAL
PROPERTY, OR ANY OTHER THING PROVIDED TO LICENSEE UNDER THIS
AGREEMENT, OR ANY ANTICIPATED, ATTEMPTED OR ACTUAL USE OF LICENSED
MARKS, OTHER INTELLECTUAL PROPERTY, OR ANY OTHER THING PROVIDED TO
LICENSEE UNDER THIS AGREEMENT, WHETHER OR NOT ARISING FROM THE
NEGLIGENCE OF LICENSOR (WHETHER ACTIVE, PASSIVE, OR IMPUTED), (B) ALL
RIGHTS, CLAIMS AND REMEDIES FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OF
ANY THIRD-PARTY RIGHT ARISING FROM LICENSEE'S MANUFACTURE, SALE, USE,
OR DISTRIBUTION OF ARTICLES, AND (C) ALL RIGHTS, CLAIMS, AND REMEDIES
ARISING FROM ANY FAULT OR DEFECT IN ANY ARTICLE MADE IN ACCORDANCE
WITH, OR OTHERWISE RESULTING FROM, ANY LICENSED MARKS, OTHER
INTELLECTUAL PROPERTY, OR ANY OTHER THING PROVIDED TO LICENSEE UNDER
THIS AGREEMENT, WHETHER ARISING IN WHOLE OR IN PART FROM THE
NEGLIGENCE OF LICENSOR (WHETHER ACTIVE, PASSIVE, OR IMPUTED).
13. EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES.
LICENSOR AND LICENSEE SPECIFICALLY AGREE THAT LICENSOR WILL HAVE NO
OBLIGATION OR LIABILITY, WHETHER ARISING IN CONTRACT (INCLUDING,
WITHOUT LIMITATION, WARRANTY), TORT (INCLUDING, WITHOUT LIMITATION,
ACTIVE, PASSIVE OR IMPUTED NEGLIGENCE OR STRICT LIABILITY), OR
OTHERWISE, FOR LOSS OF USE, REVENUE OR PROFIT, OR FOR ANY OTHER
DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WITH RESPECT TO ANY
LICENSED MARKS, OTHER INTELLECTUAL PROPERTY, OR ANY OTHER THING
PROVIDED TO LICENSEE UNDER THIS AGREEMENT.