Annual Guarantee Clause Samples

Annual Guarantee. For each year of the Initial Term (as defined below) and Renewal Term (as defined below) (if there is a Renewal Term), Licensee shall pay Licensor an annual guaranteed minimum Licensor Royalty (the “Annual Guaranteed Royalty”). Subject to reduction as set forth in this Agreement, the Annual Guaranteed Royalty for the first Contract Year (as defined below) of the Initial Term shall be $2,800,000 (the “Year 1 Minimum Royalty”) and each subsequent Contract Year’s Annual Guaranteed Royalty (each subsequent year ending on June 30) shall be equal to eight percent (8%) of eight times (8X) Licensor’s Direct Response Sales (as defined below) of Covered Products remaining under this Agreement for the six (6) months prior to the commencement of the next subsequent Contract Year, provided that the Annual Guaranteed Royalty for the fourth Contract Year shall not be less than $2,800,000. As used herein, (i) “Direct Response Sales” means sales made directly to consumers from television, internet, print, and radio advertising or any other form of direct response media excluding, for the avoidance of doubt, shopping networks and channels, but including shipping and processing charges, (ii) the first “Contract Year” means initially, the period beginning on the date hereof and ending June 30, 2010, and each subsequent Contract Year means the subsequent twelve (12) month period ending on June 30.

Annual Guarantee. During the Term, SAG shall receive a minimum annual guarantee ("Annual Guarantee") equal to $450,000, payable in accordance with the customary payroll procedures as in effect from time to time for senior executives of the Company.

Annual Guarantee. During the Term, Mountaingate shall receive a minimum annual guarantee ("Annual Guarantee") equal to $262,000, payable in accordance with the customary payroll as in effect from time to time for senior executives of the Company.

Annual Guarantee. For each Agreement Year, the minimum amount the Concessionaire must pay to the State in accordance with Article VI (Fees and Payments).