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Form #1444

LICENSE CONTRACT BETWEEN CORPORATIONS

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LICENSE CONTRACT BETWEEN CORPORATIONS


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License contract between corporations.

Agreement made at the City of _________, State of _________, the _________ day of _________, _________[year], between the N Company, a _________ corporation, referred to as N, and the A Company, a _________ corporation, referred to as A, provides that:

A proposes to enter into the _________ business in the City of _________ and is desirous of acquiring an adequate and proper system for the conduct of that business.

N, under the terms and provisions of a certain contract in writing of _________[date], acquired from the L Company of _________, a _________ corporation, a license to use _________ system, and the right to license other persons, firms or corporations to use the same exclusively in restricted districts in certain cities in the United States, and to use the name "_________," and all plans, designs, forms, working sheets and data used by the L Company of _________ in the establishment and operation of _________ companies such as have used the _________ system in _________, together with all improvements and additions.

The City of _________, is one of the cities selected by N for the establishment and operation of such a _________ company.

A desires to acquire from N the exclusive right to use the _________ system in the City of _________.

A has been organized with provisions in its charter whereby the total number of shares that may be issued by the corporation is _________, of which _________ shares of the par value of $_____ per share amounting in the aggregate to $_____ shall be _________ percent preferred stock and $_____ common which shares are without nominal or par value, and may be issued by the corporation from time to time for such consideration as may be fixed by the board of directors but which is intended to be sold at $_____ per share.

In consideration of the mutual undertakings and agreements of the parties, it is agreed as follows:

1. N agrees to and does grant to A an exclusive and perpetual franchise for the City of _________, for the use of _________ system, including all appurtenances, as it is authorized to do by and under the terms of the contract of _________[date], with the L Company of _________, and in that connection, to give to A the advantage of counsel and advice, and to provide A with weekly statement or monthly report forms.

2. A agrees to accept and does accept the exclusive franchise for the use of _________ system, together with all appurtenances, and agrees to use it exclusively in the operation of a _________ company in the City of _________, and in the conduct of its business it agrees to conform to the system, and in so doing from time to time to advise and consult with N or its duly authorized representative; and agrees that when ready to open for business it will pay to N $_____, being consideration for services rendered and to be rendered, and the granting of the franchise. A agrees to have made an audit of its business by a firm of certified public accountants, to be agreed upon, quarterly, if considered practical and economical, but in no event less than immediately after the close of each fiscal year, and to furnish N a copy of any and all audits. A also agrees to systematically use the system of report forms furnished by N, and to send them promptly to N for consideration and advice by N.

3. N will pay all the expenses of the incorporation of A. N agrees to select a manager for the business of A, subject to the approval of the board of directors of A. N will consult with the board in the matter of the location for the business and purchase of fixtures, the execution of a proper lease for the premises to be occupied, and all details necessary to the establishment of the business ready for operation. N will also furnish all necessary forms to install the _________ system with which to conduct the business; furnish all necessary advisory service through a service technician to be employed and paid by N. This technician, in addition to teaching the employees of A the mechanics of the business under _________ system, will call upon _________ persons in the City of _________ to acquaint them with the advantages they may secure by availing themselves of the service of A; furnish a copy of the customary advertising program in connection with _________; and complete a business structure for A with a view of obtaining subordinate or subsidiary capital at favorable rates.

A further agrees that N shall be granted the right to have one representative on the board of A.

4. This agreement includes within it the entire agreement between the parties to, and no addition or modification shall be binding upon either party, unless the addition or modification is in writing signed by the parties and attached as a rider.

Contributed by
King and Spelling LLC
 
Total Forms Contributed 117
 

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Terms Of Use

Submissions to this site, including any legal or business forms, posts, responses to questions or other communications by contributors are not intended as and should not be construed as legal advice. You are strongly encouraged to consult competent legal council before engaging in any action based upon content contained on this site.

These downloadable forms are only for personal use. Retransmission, redistribution, or any other commercial use is prohibited. This includes reposting forms from this site to another site offering free legal or other document forms for download.

Please note that the donator may have included different usage terms regarding this form, and you agree to abide by these terms. It is highly recommended that you have a licensed attorney review any legal documents for which you are searching in order to make sure that your needs are being properly and completely satisfied.

Your use of this site constitutes your acceptance of our terms of use and your agreement to hold this site, its officers, employees and any contributors to this site harmless for any damage you might incur from your use of any submissions contained on this site. If you do not agree to the above terms, please do not proceed.

These forms are provided to assist business owners and others in understanding important points to consider in different transactions. They are offered with the understanding that no legal advice, accounting, or other professional service is being offered by these documents or on this website. Laws vary in the different states. Agreements acceptable in one state may not be enforced the same way under the laws of another state. Also, agreements should relate specifically to the particular facts of each situation. Therefore, it is important to consult legal counsel whenever utilizing these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com is not engaged in recommending or referring members on the site or making claims about the competence, character or qualifications of its participating members.
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