Common use of Seconds Clause in Contracts

Seconds. Licensee shall only sell Licensed Products which are Seconds in a way which shall not reduce the value of the Trademark or detract from its reputation and shall obtain the express prior written consent of Licensor with respect to the terms and method of such disposal. All Seconds approved for sale by Licensor shall be clearly marked "Seconds" or "Irregular". The Net Sales of Seconds of any of the Licensed Products which may be disposed of pursuant to this Paragraph 8.13 (a) shall not, in any event, exceed five (5%) percent of the Net Sales of Licensed Products distributed or sold by Licensee in any Annual Period.

Seconds. Licensee shall only sell Licensed Products which are Seconds in a way which shall not reduce the value of the Trademark or detract from its reputation and shall obtain the express prior written consent of Licensor with respect to the terms and method of such disposal. All Seconds approved for sale by Licensor shall be clearly marked "Seconds" or "Irregular". The Net Sales percentage of Seconds of any of the Licensed Products which may be disposed of pursuant to this Paragraph 8.13 (a) shall not, in any event, exceed five (5%) percent of the Net Sales total number of units of Licensed Products distributed or sold by Licensee in any Annual PeriodLicensee.