Common use of Initiation Fee Clause in Contracts

Initiation Fee. In partial consideration of the licenses and rights granted by PVI to Licensees under this Agreement, Cablevision shall pay PVI an initiation fee of US $7,500,000 ("Initiation Fee") as follows: $2,500,000 shall be paid upon the First Closing as defined under that certain Stock and Warrant Purchase Agreement between PVI Holding, LLC, a wholly-owned indirect subsidiary of Cablevision, and PVI dated this date (the "Stock Purchase Agreement"), and $5,000,000 shall be paid upon the Second Closing as defined under the Stock Purchase Agreement (provided, that if there is no Second Closing for any reason other than solely attributable to default by Cablevision, the second $5,000,000 payment shall be considered irrevocably waived). Payment of the Initiation Fee shall be creditable against the payment of any future royalty, revenue sharing obligation, enhancement fee, equipment fee or other monetary obligation of any Licensees to PVI under this Agreement or any other agreement between the parties as they may so provide therein. The Initiation Fee payable hereunder shall also be creditable against the payment of future royalty, revenue sharing obligation, enhancement fee, equipment fee or other monetary obligation of Licensees under the Joint Collaboration and License Agreement to be entered into by the parties.