SETTLEMENT AGREEMENT AND MUTUAL RELEASE
THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (the “Agreement”) is entered into as of June __, 2009, by and between Michael Aston (“Plaintiff”), on the one hand, and Jay Aston (“J. Aston”), James Stevenson (“Stevenson”), Peter Rizzo (“Rizzo”), Chris Bell (“Bell”), Robert Adams (“Adams”) (J. Aston, Stevenson, Rizzo, Bell and Adams will be collectively referred to as “the Band,”), and Libertalia Entertainment, LLC (“Libertalia”) (the Band and Libertalia will be collectively referred to as the “Defendants”), on the other hand. The parties to this Agreement will collectively be referred to as “the Parties.”
RECITALS
On February 15, 2008, Plaintiff commenced a proceeding before the United States District Court, Central District of California, Case No. SACV 08-181 JVS (RNBx), entitled Michael Aston v. Jay Aston, et al. (“the Action”), in which Plaintiff alleged the following causes of action against Defendants in the Complaint (the “Complaint”), based on Defendants’ alleged infringement of the mark GENE LOVES JEZEBEL (the “Mark”) in connection with live musical performances and the sale of musical recordings (in addition to related merchandise collectively )(“Goods & Services”), and U.S. Registration No. 2,694,773 (the “Registration”) owned by Plaintiff (the “Mark”): Trademark Infringement (15 U.S.C. § 1114(1)); Trademark Infringement, Unfair Competition, and False Designation of Origin (15 U.S.C. § 1125(a)); Trademark Infringement (Cal. Bus. & Prof. Code § 14335); Unfair Competition (Cal. Bus. & Prof. Code § 17200, et seq.); False Advertising (15 U.S.C. § 1125(a)); False Advertising (Cal. Bus. & Prof. Code §§ 17500 and 17535); and Common Law Trademark Infringement. Defendants deny the allegations in the Complaint.
On June 30, 2008, Defendant Libertalia filed a First Amended Counterclaim (“Counterclaim”) against Plaintiff alleging, inter alia, fraud, seeking cancellation of the Mark and a declaration of non-infringement of the Mark and Registration by Libertalia. Plaintiff denies the allegations of the Counterclaim.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:
TERMS OF AGREEMENT
Acknowledgment of Plaintiff’s Rights in the Mark and The Bands’ Rights in the UK Mark
The Defendants hereby acknowledge that they are informed and believe that (i) Plaintiff is the sole and exclusive Owner of the Registration and (ii) his rights in and to the Registration and the Mark in connection with the Goods and Services are legal and valid in the US.
Plaintiff hereby acknowledges that he is informed and believes that (i) Gene Loves Jezebel, Ltd. (“Ltd.”) is the sole and exclusive Owner of the registration of the Mark in the United Kingdom (“UK”) pursuant to UK Trademark Registration No. 2342224 (“UK Registration”) and (ii) that Ltd.’s rights in and to the Registration and the Mark in connection with the Goods and Services are legal and valid in the UK. J. Aston, Stevenson and Risingham warrant and represent that they are the principals of Ltd. and have the full power and authority necessary to grant, on behalf of Ltd., the license to Plaintiff for use of the Mark in the UK as set forth hereinbelow.
The Defendants covenant and agree that they will not initiate any action or proceeding challenging Plaintiff’s sole and exclusive ownership of the Registration, the validity of his rights in the Mark in the US in connection with the Goods & Services, or the validity of the Registration including, but not limited to, any action or proceeding seeking a cancellation of the Registration or a declaration or judgment that Plaintiff is not the sole and exclusive owner thereof.
Plaintiff covenants and agrees that he will not initiate any action or proceeding challenging Ltd.’s sole and exclusive ownership of the UK Registration, the validity of Ltd.’s rights in the Mark in the UK in connection with the Goods and Services, or the validity of the UK Registration including, but not limited to, any action or proceeding seeking a cancellation of the UK Registration or a declaration or judgment that Ltd. is not the sole and exclusive owner thereof.
Permanent Injunction
D. If the Band plays a non-Package Tour Performance where it is guaranteed and receives two-thousand-five-hundred dollars ($2,500.00) or more, the Band shall pay Plaintiff ten percent (10%) of the amount actually received by the Band for said Performance. If the Band plays a Package Tour where it is guaranteed and receives an average per Performance of two-thousand dollars ($2,000.00) or more, the Band shall pay Plaintiff ten percent (10%) of the amount actually received by Band for such Package Tour. If the Band plays a Package Tour where it is guaranteed and receives an average per Performance of less than two-thousand dollars ($2,000.00), but it plays an individual Package Tour Performance where it is guaranteed and receives two-thousand dollars ($2000.00) or more, the Band shall pay Plaintiff ten percent (10%) of the amount it received from such individual Performance. The Band shall pay Plaintiff within thirty (30) days of the Band’s receipt of payment.
E. Any albums recorded by the Band which have not yet been produced, printed or released by the Band in the US as of the date of this Agreement (“New Albums”) shall include the Modified Mark in the artwork, liner notes, and any and all advertising, promotion, publicity, or marketing therefore. Any albums that have already been released, produced or printed as of the date of this Agreement, or that are being sold by third parties, e.g., import music stores, shall not require the use of the Modified Mark in any manner. Any merchandise sold by the Band or its agents or representatives in the US, including but not limited to Tour merchandise or merchandise sold at any individual Performance, and any advertising, promotion, publicity or marketing for any such merchandise, shall include the Modified Mark. Any merchandise sold by third parties, e.g., import music stores, shall not require the use of the Modified Mark in any manner. Nothing in this Section modifies the Band’s obligation(s) to utilize the Modified Mark in US Sales.
F. For any and all actions pursuant to this license, Plaintiff shall not interfere with (i) the Band’s use of the Modified Mark, (ii) the Band’s activities in booking US Performances, or (iii) any of the Band’s Performances once booked.
D. If Plaintiff plays a non-Package UK Tour Performance where it is guaranteed and receives two-thousand-five-hundred dollars ($2,500.00) or more, Plaintiff shall pay the Band ten percent (10%) of the amount actually received by Plaintiff for said Performance. If Plaintiff plays a UK Package Tour where it is guaranteed and receives an average per Performance of two-thousand dollars ($2,000.00) or more, Plaintiff shall pay the Band ten percent (10%) of the amount actually received Plaintiff for such UK Package Tour. If Plaintiff plays a UK Package Tour where he is guaranteed and receives an average per Performance of less than two-thousand dollars ($2,000.00), but it plays an individual UK Package Tour Performance where it is guaranteed and receives two-thousand dollars ($2000.00) or more, Plaintiff shall pay the Band ten percent (10%) of the amount he received from such individual Performance. Plaintiff shall pay the Band within thirty (30) days of the Plaintiff’s receipt of payment.
E. Any albums recorded by Plaintiff which have not yet been produced, printed or released by Plaintiff in the UK as of the date of this Agreement (“New Albums”) shall include the UK Modified Mark in the artwork, liner notes, and any and all advertising, promotion, publicity, or marketing therefore. Any albums that have already been released, produced or printed as of the date of this Agreement, or that are being sold by third parties, e.g., import music stores, shall not require the use of the UK Modified Mark in any manner. Any merchandise sold by Plaintiff or his agents or representatives in the UK, including but not limited to UK Tour merchandise or merchandise sold at any individual Performance, and any advertising, promotion, publicity or marketing for any such merchandise, shall include the UK Modified Mark. Any merchandise sold by third parties, e.g., import music stores, shall not require the use of the UK Modified Mark in any manner. Nothing in this Section modifies Plaintiff’s obligation(s) to utilize the UK Modified Mark in UK Sales.
B. No party shall post or publish derogatory statements about the other on that party’s website or elsewhere online. If third parties post derogatory statements about a Party(ies) on their Party’s(ies’) website(s), the party shall cause the derogatory post(s) to be deleted from his/their website. Each party shall have ten (10) business days after receipt of written notice of a breach of this provision to cure said breach and come into compliance.
C. Prior hereto, the Band and Plaintiff each had a MySpace page/account utilizing the Mark, as well as pages/accounts on other websites and social networking services, e.g., Facebook. Upon receiving a written request from the other, the Plaintiff or the Band, as the case may be, shall notify the provider of such page(s) or account(s) that he/they have no objection to the other party’s use of said page(s) or account(s) or the restoration of the such other party’s page(s) or account(s); provided, however, that this does not remove or reduce the requirements set forth hereinabove for the Band’s use of the Modified Mark or the Plaintiff’s use of the UK Modified Mark.
Jurisdiction and Venue
Mutual Releases.
Except as to the rights and obligations created by or arising from this Agreement, and in consideration of the terms and provisions of this Agreement, Plaintiff, on the one hand, and Defendants, on the other, shall and hereby do forever relieve, release and discharge each other and their respective predecessors, successors, assigns, affiliates, parent corporations, subsidiaries, agents, officers, directors, shareholders, and attorneys from any and all claims, cross‑claims, demands, debts, liabilities, obligations, promises, acts, agreements, costs, offsets, expenses, damages, actions and causes of action of whatever kind or nature, whether known or unknown, suspected or unsuspected which exist, or have existed at any time up to and including the date hereof arising out of or in connection with the allegations of the Complaint or the Counterclaim.
The Parties acknowledge that they may hereafter discover facts different from or in addition to those which they now know or believe to be true with respect to any release herein made, and agree that every release herein made is now and will remain effective notwithstanding such different or additional facts or the discovery thereof. The Parties hereto expressly waive and relinquish any and all rights and benefits conferred upon them by the provisions of section 1542 of the California Civil Code, which are as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
The Parties acknowledge that the foregoing waiver of the provisions of section 1542 of the California Civil Code is part of the consideration hereunder. The Parties expressly consent that the mutual releases set forth herein shall be given full force and effect in accordance with each and all of their express terms and provisions, including those terms and provisions relating to unknown and unsuspected Claims, demands and causes of action, if any, to the same effect as those terms and provisions relating to any other Claims, demands and causes of action hereinabove specified.
Miscellaneous.
No Admission of Liability or Fault. The Parties hereto expressly understand and agree that this Agreement is a good faith compromise and settlement of disputed claims.
Headings and Interpretations. The titles and headings of the various paragraphs of this Agreement are intended solely for convenience of reference and are not intended to define, limit, extend, explain, modify or place any construction on any of the provisions of this Agreement. This Agreement has been prepared by and through the combined efforts of the parties and their respective attorneys, and shall not be interpreted more strictly against any party(ies) than any other party(ies.)
Entire Agreement/Amendments. This Agreement is integrated and, with the attached exhibit, constitutes the entire understanding of the Parties. This Agreement may not be altered or modified except by a writing executed by the Parties at the time of the alteration or modification.
Assignment. This Agreement, including without limitation the mutual releases herein, shall inure to the benefit of and be binding on the Parties and their respective successors, heirs, legal representatives and assigns.
Severability. The fact that a covenant, condition or other provision herein contained may be held to be invalid, void or illegal by a court of competent jurisdiction will not automatically render this Agreement, in its entirety, invalid, void, or illegal.
Waiver. No breach of any provision hereof can be waived except in writing by the party against whom enforcement of the waiver is sought. Waiver of one breach of any provision hereof shall not be deemed to be a waiver of any other breach of the same or any other provision hereof.
Choice of Law and Venue. This Agreement is entered into in the State of California and shall be construed and interpreted according to its laws.
Counterparts. This Agreement may be executed in counterparts. When each party has signed and delivered such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, shall constitute an Agreement which shall be binding upon and effective as to all of the Parties. No counterpart shall be effective until all parties hereto have executed and exchanged an executed counterpart hereof. A signature will be deemed binding and the party bound upon receipt of a fax copy of the signature page.
Effective Date. This Agreement shall become effective upon execution of this Agreement by all of the Parties.
Modification. No modification, amendment, supplement to or waiver of any provision of this Agreement shall be binding upon the parties hereto unless made in writing and duly signed by both parties.
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. Any unenforceable provision will be replaced by a provision which comes closest to the intention of the parties at the time the original provision was agreed upon.
Use of Terms. Use of the terms herein, hereunder and hereof mean in this Agreement. Terms herein shall be deemed to refer to masculine, feminine, neuter, singular, and or plural, in each instance as the context and/or particular facts may require male or female and singular or plural.
Notices. All notices will be in writing and will be delivered personally or sent by confirmed facsimile transmission, overnight letter or United States certified mail, proper postage prepaid at the addresses specified below:
If to Plaintiff:
Michael Aston |
With a copy to: |
If to the Band at:
Gene Loves Jezebel, Ltd. * * |
With a copy to: |
If to Libertalia at:
Libertalia Entertainment, LLC |
With a copy to: |
Independent Parties. This Agreement in way makes any party an agent, representative or partner of the any other party. This Agreement neither creates nor contemplates that any party shall have any right, power or authority to enter into any agreement for, or on behalf of, or incur any obligation or liability of, or to otherwise bind, the another party. This Agreement shall not be interpreted or construed to create an association, agency, joint venture or partnership between the Parties or to impose any liability attributable to such relationship upon any Party, and no express or implied representations to the contrary shall be made by any party.
Ownership. The Parties represent that they are the sole and lawful owner of all right, title, and interest in and to every claim and every matter that they purport to release hereby, and that they have not heretofore assigned or transferred, or purported to assign or transfer to any person or entity any claims or other matter herein released.
Additional Acts or Documents: Plaintiff and the Band shall promptly execute all papers and perform such other proper acts as the Plaintiff or Band may deem necessary to enforce this Agreement and secure their rights set forth herein in the US or the UK.
IN WITNESS WHEREOF, the Parties hereby execute this Agreement.
DATED: ___________, 2009 _____________________________________
MICHAEL ASTON
DATED: ___________, 2009 _____________________________________
JAY ASTON
DATED: ____________, 2009 _____________________________________
LIBERTALIA ENTERTAINMENT, LLC
Its: __________________________________
DATED: ___________, 2009 _____________________________________
JAMES STEVENSON
DATED: ___________, 2009 _____________________________________
PETER RIZZO
DATED: ___________, 2009 _____________________________________
CHRIS BELL
DATED: ___________, 2009 _____________________________________
ROBERT ADAMS
AGREED TO AS TO FORM AND CONTENT:
LAW OFFICES OF MICHAEL R. BLAHA
DATED: ___________, 2009 _____________________________________
MICHAEL R. BLAHA, Attorneys for Plaintiff
SAMADANI LAW, APC
DATED: ___________, 2009 _____________________________________
ARASH SAMADANI, Attorneys for Defendants