Common use of Payment of the Merchandise Royalty or Merchandise Guarantee Clause in Contracts

Payment of the Merchandise Royalty or Merchandise Guarantee. as applicable, shall begin either when The World of Xx. Xxxxx or first Theme Park is open to the public or on December 31, 2001, whichever shall occur first, and succeeding annual payments shall be made on each anniversary date thereof (the "Anniversary Date"). The payment due upon the opening of "The Second Gate" or first Theme Park shall be the minimum Merchandise Guarantee described above. Thereafter, each annual Merchandise Guarantee or Merchandise Royalty shall be *** at "The Second Gate". Any appropriate *** shall be made within 30 days following the end of the quarter in which the Anniversary Date occurs. Any *** shall be treated as a credit toward the following year's payments. Failure to make any Merchandise Royalty or Merchandise Guarantee payment when due accompanied by a written notice of license termination by MCA or, subject to the cure provision contained in Section 12 of the Terms and Conditions, failure to make any Merchandise Royalty or Merchandise Guarantee payment when due without written notice of license termination by MCA shall cause MCA's license under this Formal Agreement to terminate (and MCA will discontinue operation of The World of Xx. Xxxxx or any other Attractions containing Xx. Xxxxx Elements) and neither party shall have any further obligations under this Formal Agreement and this Formal Agreement shall terminate, provided, however, that MCA shall have the right to sell off merchandise and accept returns as to merchandise inventoried or stocked or tied into the Theme Park for a period of six-months.

Payment of the Merchandise Royalty or Merchandise Guarantee. as applicable, shall begin either when The World of Xx. Xxxxx or first Theme Park is open to the public or on December 31, 2001, whichever shall occur first, and succeeding annual payments shall be made on each anniversary date thereof (the "“Anniversary Date"”). The payment due upon the opening of "“The Second Gate" ” or first Theme Park shall be the minimum Merchandise Guarantee described above. Thereafter, each annual Merchandise Guarantee or Merchandise Royalty shall be *** at "“The Second Gate"”. Any appropriate *** shall be made within 30 days following the end of the quarter in which the Anniversary Date occurs. Any *** shall be treated as a credit toward the following year's ’s payments. Failure to make any Merchandise Royalty or Merchandise Guarantee payment when due accompanied by a written notice of license termination by MCA or, subject to the cure provision contained in Section 12 of the Terms and Conditions, failure to make any Merchandise Royalty or Merchandise Guarantee payment when due without written notice of license termination by MCA shall cause MCA's ’s license under this Formal Agreement to terminate (and MCA will discontinue operation of The World of Xx. Xxxxx or any other Attractions containing Xx. Xxxxx Elements) and neither party shall have any further obligations under this Formal Agreement and this Formal Agreement shall terminate, provided, however, that MCA shall have the right to sell off merchandise and accept returns as to merchandise inventoried or stocked or tied into the Theme Park for a period of six-months.