Common use of Merchandise Coordinator Program Clause in Contracts

Merchandise Coordinator Program. Licensee shall participate in Licensor's Merchandise Coordinator Program on a direct cost basis to be reasonably determined by Licensor. In no event shall the amount of Licensee's required participation for the First Annual Period exceed $100,000.00 and for each Annual Period thereafter exceed _____ (___%) percent of its Net Sales. Licensee shall be responsible for paying for the portion of such cost of the program as is dedicated to Licensee relative to the other licensees included in the program. Effective May 1, 1998, Licensor shall no longer include mens and boys footwear in Licensor's Merchandise Coordinator Program, however Licensee shall continue to pay to Licensor _____ (___%) percent of Net Sales of Licensed Products for the month of May 1998. Effective June 1, 1998, Licensor shall establish a separate merchandise coordination staff dedicated to the coordination of the Licensed Products (the "Program"). Thereafter, and throughout the Term, Licensee shall pay to Licensor on a quarterly basis, _____ (___%) percent of Net Sales of all Licensed Products (excluding Licensed Products sold in Licensee owned and operated stores, Seconds and Close-Outs) to support the Program. By September 30th of each Annual Period, the parties shall mutually agree upon an annual budget which shall set forth the allocation of funds in the Program for the following Annual Period ("Program Budget"). Any funds contained in the Program, but not expended during the Annual Period for which such funds were budgeted to be spent, shall roll-over into the Program Budget for following Annual Period. The Program Budget shall include all costs associated with in-store staffing and store planning allocations. All out-of-pocket expenses for the design, preparation and distribution of all materials to be used for marketing programs, as ordering mechanisms, for product knowledge or for product updates ("Sales Materials"), shall be incurred and borne by Licensee, separate and apart from the Program Budget. Licensee shall submit all such Sales Materials to Licensor for approval prior to such Sales Materials going into final production. Licensor shall endeavor to approve such submitted Sales Materials in a timely manner, and Licensee shall endeavor to make any necessary modifications to the Sales Materials indicated by Licensor. The percentage of Net Sales paid by Licensee for the Program which are a result of sales in Canada shall be designated for use in Canada.

Merchandise Coordinator Program. Except as set forth herein, Licensee shall participate in Licensor's Merchandise Coordinator Program on a direct cost basis to be reasonably determined by Licensor. In no event shall the amount of Licensee's required participation for the First Annual Period exceed $100,000.00 and for each Annual Period thereafter exceed _____ (___%) percent of its Net Sales. Licensee shall be responsible for paying for the portion of such cost of the program as is dedicated to Licensee relative to the other licensees included in the program. Effective May 1, 1998, Licensor shall no longer include mens and boys footwear Mens Footwear in Licensor's Merchandise Coordinator Program, however Licensee shall continue to pay to Licensor ______ (___%) percent of Net Sales of Licensed Products for the month of May 1998. Effective June Beginning April 1, 19981999, Licensor shall establish a separate merchandise coordination coordinator staff dedicated to the coordination of the Licensed Products (the "Program"), which Program shall, at its inception, include twelve (12) merchandise coordinators. ThereafterLicensee shall be responsible for all costs associated with the Program. Licensee shall also be responsible for its pro rata portion of the expenses incurred by the Vice President of the Program, the Assistant to the Vice President and throughout the Termall regional managers (5 at Program inception), which expenses shall include, but not be limited to, salaries, benefit, travel, entertainment and all other Program related expenses. In Licensor's discretion, Licensor may, by written notice to Licensee, require Licensee to resume participation in Licensor's Merchandise Coordination Program, in which event, Licensee shall pay to Licensor Licensor, on a quarterly basis, _____ one (___1%) percent of Net Sales of all Licensed Products Mens Footwear and two (2%) percent of Net Sales of Womens Footwear (excluding Licensed Products sold in Licensee owned and operated stores, Seconds and Close-Outs) to support the Program. By September 30th of each Annual Period, the parties shall mutually agree upon an annual budget which shall set forth the allocation of funds in the Program for the following Annual Period ("Program Budget"Closeouts). Any funds contained in the Program, but not expended during the Annual Period for which such funds were budgeted to be spent, shall roll-over into the Program Budget for following Annual Period. The Program Budget shall include all costs associated with in-store staffing and store planning allocations. All out-of-pocket expenses for the design, preparation and distribution of all materials to be used for marketing programs, as ordering mechanisms, for product knowledge or for product updates ("Sales Materials"), shall be incurred and borne by Licensee, separate and apart from the Program Budget. Licensee shall submit all such Sales Materials to Licensor for approval prior to such Sales Materials going into final production. Licensor shall endeavor to approve such submitted Sales Materials in a timely manner, and Licensee shall endeavor to make any necessary modifications to the Sales Materials indicated by Licensor. The percentage of Net Sales paid by Licensee for the Program which are a result of sales in Canada shall be designated for use in Canada.