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By Daniel Baxter |
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October 12, 2010 -
EasyJet, the
EasyJet Airline is
a British airline headquartered at The amended and re-stated license agreement continues EasyJet’s worldwide rights to the use of its brand on a basis which protects EasyJet’s current commercial activities and provides clarity and certainty over the terms of the license. |
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Operational
flexibility is considerably improved and EasyJet will have the freedom
to enter new co-branding agreements with other travel service providers
as well as white label partners such as car hire, hotels and travel
insurance companies. In addition, EasyJet will have the right to enter
co-branding promotions with other leading brands.
The rights will
continue for a fifty year term, with a minimum commitment of ten years
in return for an annual royalty payment of 0.25% of EasyJet’s revenues.
The payment is fixed at £3.9 million and £4.95 million for the first two
years of the agreement.
Upon obtaining
shareholder approval for the revised brand license, Sir Stelios has
agreed to give up the right to appoint himself as EasyJet Chairman and
end easyGroup’s rights of representation on the Board of EasyJet. “EasyJet has grown and developed since the brand license was signed and the license agreement needed to be clarified to allow the Company to move forward. I believe the revised agreement better aligns the interests of EasyJet shareholders and the Licensor. I’d like to thank Sir Stelios for his constructive approach to our discussions over the past few weeks. Sir Stelios created EasyJet and its success is a tribute to his vision and energy” said EasyJet Chairman Sir Mike Rake. |