IONIC BRANDS ANNOUNCES LICENSING AGREEMENT
Ionic Brands Corp. has entered into a licence agreement with a third party licensee granting the licensee the exclusive use of certain trade secrets, know-how, trademarks and domains of the company.
The Company granted the Licensee an unlimited, exclusive, worldwide (other than certain excluded states in the United States), royalty-fee, non-transferable and sublicensable license (the "License") to use, improve and exploit the Licensed Assets. In consideration for the License, the Licensee has agreed to pay the Company a fee of US$250,000. The initial term of the License Agreement is one year, and may be renewed for up to nine additional one-year terms at the option of the Licensee upon payment of US$250,000 for each additional renewal term.
Pursuant to the terms of the License Agreement, six months following the date of the License Agreement, upon repayment of US$625,000 by the Company to the Licensee, the License will become non-exclusive for any jurisdictions where the Licensee has not used or is not then using any of the Licensed Assets.