Payment of Service Fees. Effective as of the Closing, AE shall pay to CMGO 7.5% of revenues received by AE from all business, clients or other sources of net revenue procured by CMGO, its employees, officers or subsidiaries and directed to AE as the principal referral source except that the percentage shall be 10% in the case of revenues received from a company designated by the parties in a separate document. Net revenue shall mean gross revenue less cost of revenue. Amounts due hereunder shall be payable on a quarterly basis commencing with the calendar quarter in which the Closing occurs with respect to revenues for such quarter. Payment shall be made within fifteen business days from the end of a calendar quarter and shall be accompanied by a statement from AE stating in reasonable detail the calculation of amounts payable. As an additional service fee, within ninety days from the Closing, AE shall deliver to CMGO restricted shares of its common stock representing 0.05% of AE’s issued and outstanding shares of its capital stock as of the Closing. All amounts payable hereunder shall be without duplication of amounts payable under the Royalty Agreement.
Appears in 4 contracts
Samples: Services Agreement (CMG Holdings Group, Inc.), Services Agreement (CMG Holdings Group, Inc.), Services Agreement (CMG Holdings Group, Inc.)
