Common use of Guaranteed Royalty Clause in Contracts

Guaranteed Royalty. Distributor shall pay a guaranteed, irrevocable, non-refundable payment (recouped against royalties as hereinafter provided) for the Sales Year (as the same may be increased in accordance with this Section 4.2.1 below, the "Guaranteed Royalty") in the amount of $13,000,000. If and to the extent that, within sixty (60) days after the Commencement Date, Riverdeep receives third party consents from one or more licensors sufficient to enable it to license the Consent-Required Products to Distributor in accordance with the terms of this Agreement (collectively, "Third Party Consents"), then, Riverdeep shall notify Distributor as to the Consent-Required Products as to which it has received such Third Party Consent prior to the end of such 60-day period and upon the expiration of such period, Distributor shall increase the Guaranteed Royalty by an amount equal to the product of (i) $2,000,000, and (ii) the sum of the allocable percentages corresponding to those Consent-Required Products as to which Riverdeep has received such Third Party Consents by the end of such 60-day period. If a request for a Third Party Consent is denied by a licensor, the Product shall be removed from Exhibit A and the same shall not be deemed to constitute a Loss Event with respect thereto.

Guaranteed Royalty. 4.2.1 Distributor shall pay a guaranteed, irrevocable, non-refundable payment (recouped against royalties as hereinafter provided) for the Sales Year (as the same may be increased in accordance with this Section 4.2.1 below, the "Guaranteed Royalty") in the amount of $13,000,000. If and to the extent that, within sixty (60) days after the Commencement Date, Riverdeep receives third party consents from one or more licensors sufficient to enable it to license the Consent-Required Products to Distributor in accordance with the terms of this Agreement (collectively, "Third Party Consents"), then, Riverdeep shall notify Distributor as to the Consent-Required Products as to which it has received such Third Party Consent prior to the end of such 60-day period and upon the expiration of such period, Distributor shall increase the Guaranteed Royalty by an amount equal to the product of (i) $2,000,000, and (ii) the sum of the allocable percentages corresponding to those Consent-Required Products as to which Riverdeep has received such Third Party Consents by the end of such 60-day period. If a request for a Third Party Consent is denied by a licensor, the Product shall be removed from Exhibit A and the same shall not be deemed to constitute a Loss Event with respect thereto.