Section 5 — Royalties Sample Clauses
Section 5 — Royalties defines the payment obligations related to royalties that one party must pay to another, typically in exchange for the use of intellectual property, such as patents, copyrights, or trademarks. This clause outlines the percentage or amount of royalties due, the calculation method, and the schedule for payments, often specifying reporting requirements and audit rights to ensure accurate accounting. Its core function is to establish clear financial terms and expectations, thereby preventing disputes over compensation and ensuring both parties understand their monetary rights and responsibilities.
Section 5 — Royalties. Section 5.2 of the Agreement, is hereby amended by adding the following to the Minimum Royalties table set forth therein: 2008 $ 3,000,000 2009 $ 3,000,000 2010 $ 3,000,000 2011 $ 3,000,000
Section 5 — Royalties. Section 5.5. of the Agreement is hereby amended to add the following sentence at the end of that Section: "Anything elsewhere contained in this Section 5.5. to the contrary notwithstanding, the $250,000 payment due in the month of December 2002 shall be deferred to and paid in October 2003, and the $250,000 payment due in the month of January 2003 with respect to the Minimum Royalties to be paid in Calendar Year 2003 with respect to the Minimum Royalties to be paid in Calendar Year 2003 shall be deferred to and paid in November 2003".
Section 5 — Royalties. Section 5.5 of the Agreement is hereby amended by adding the following sentence immediately following the last sentence thereof: “Notwithstanding anything contained in this Agreement to the contrary, the $250,000, $250,000, $250,000, and $250,000 royalty payments due in the months of February, March, April and May, 2008, respectively, shall be deferred to and be paid no later than December 31, 2009, together with all principal and accrued interest thereon. All deferred payments shall bear interest at the rate of 10% per annum.”
Section 5 — Royalties. Section 5.5 of the Agreement is hereby amended by adding the following to the end thereof: "Anything elsewhere contained in this Section 5.5 to the contrary notwithstanding:
(a) the 2004 Minimum Royalties shall be paid, as follows:
(i) the sum of $2,250,000 shall be paid in ten installments, each in the amount of $225,000, on the first day of each month commencing in March 2004 and continuing to and including December 2004; and
(ii) subject to the provisions of Section 5.5(c) hereof, the sum of $750,000 shall be paid in equal installments on the first day of each month during the 18 month period commencing in July 2005;
(b) subject to the provisions of Section 5.5(c) hereof, the aggregate amount of the actual Royalties in excess of the 2004 Minimum Royalties shall be paid in equal installments on the first day of each month during the 18 month period commencing in July 2005; and
(c) if, at any time prior to the date when Licensee's obligations under Sections 5.5(a)(ii) and (b) hereof shall be paid in full, the Licensee shall be entitled, pursuant to the provisions of the agreement that shall be in effect between Licensee and the provider of its revolving credit facility during calendar years 2005 and 2006, to pay any Quarterly Payment Amount (as such term is defined in the amended and restated subordinated secured promissory note dated May 21, 2002 made by Licensee and delivered to Textile Investment International S.A. (the "Note")):
(i) Licensee, in lieu of paying such Quarterly Payment Amount under the Note, shall pay to Licensor all of such amount, or any portion of such amount that shall not be paid to Licensor pursuant to Amendment no. 9 of even date herewith to the Trademark License and Technical Assistance Agreement for Women's Collections dated March 4, 1998 between Licensor and Licensee;
(ii) each such amount so paid shall be credited against and reduce the aggregate unpaid amount of Licensee's obligations under Sections 5.5(a)(ii) and (b) hereof; and
(iii) any amount paid or payable by Licensee pursuant to the provisions of this Section 5.5 (c) shall be in addition to, and not in substitution of, Licensee's obligations pursuant to Sections 5.5(a)(ii) and (b) hereof."