OPTIONS AND EXTENDED TERMS Clause Samples

OPTIONS AND EXTENDED TERMS. JC hereby grants to BBC three successive -------------------------- options (the "Option(s)") to extend the term of this Agreement for additional ten-year periods (the "Extended Terms"). In order to exercise each Option, BBC must provide JC with written notice of its intention to exercise each Option and such written notice must be received by JC at least two months prior to, and no more than six months prior to, the expiration of the term then in effect. BBC's performance in each Extended Term shall be pursuant to the same terms and conditions recited herein for the First Term, except as modified by an agreement of the parties. In order to exercise an Option, BBC must pay JC the Minimum Annual Royalty (as defined in Section 4.3 below), for the last Contract Year prior to the end of the First Term, or Extended Term, as appropriate. A "Contract Year" shall be any calendar year during the First Term or any Extended Term. JC /s/ P.V. BBC /s/ JAW -------- ------- 2. GRANT OF LICENSE ----------------