Common use of Royalties and Reporting Clause in Contracts

Royalties and Reporting. (a) Guaranteed Minimum Royalties. Licensee agrees to pay to Licensor ---------------------------- the GMR set forth in the Basic Terms, in equal monthly installments, in advance on the first day of each month during the Term, without demand, and without offset or deduction of any nature. (It is understood that the full monthly installments of GMR will continue to be payable by Licensee, notwithstanding that Licensee has paid additional Royalties pursuant to Paragraph 2(c), until such time as the sum of the installments of GMR and the Royalties paid pursuant to Paragraph 2(c) for any Year equals the annual GMR, whereupon the payment of monthly installments of GMR shall cease for the remainder of that Year. For example, assume that the annual GMR is $120,000, payable in monthly installments of $10,000 in advance on the first day of each month. Assume further that Licensee pays the $10,000 installment of the GMR on January 1. If Licensee's sales for the month of January result in Royalties earned in the amount of $15,000, Licensee shall be required to pay the additional $5,000 on February 15 and will still be required to pay the full $10,000 installments of the GMR on February 1 and March 1.) Under no circumstances will any portion of the GMR be refundable to Licensee.

Royalties and Reporting. (a) Guaranteed Minimum Royalties. Licensee agrees to pay to Licensor the ---------------------------- the GMR set forth in the Basic Terms, in equal monthly installments, in advance on the first day of each month during the Term, without demand, and without offset or deduction of any nature. (It is understood that the full monthly installments of GMR will continue to be payable by Licensee, notwithstanding that Licensee has paid additional Royalties pursuant to Paragraph 2(c), until such time as the sum of the installments of GMR and the Royalties paid pursuant to Paragraph 2(c) for any Year equals the annual GMR, whereupon the payment of monthly installments of GMR shall cease for the remainder of that Year. For example, assume that the annual GMR is $120,000, payable in monthly installments of $10,000 in advance on the first day of each month. Assume further that Licensee pays the $10,000 installment of the GMR on January 1. If Licensee's sales for the month of January result in Royalties earned in the amount of $15,000, Licensee shall be required to pay the additional $5,000 on February 15 and will still be required to pay the full $10,000 installments of the GMR on February 1 and March 1.) Under no circumstances will any portion of the GMR be refundable to Licensee.