Common use of Sublicense Terms Clause in Contracts

Sublicense Terms. Any agreement granting a Sublicense shall state that the Sublicense is subject to the termination of this License Agreement and will include: (a) a provision requiring the performance by Sublicensee of all obligations under this License Agreement except payment of the Minimum Annual Royalty as required in Exhibit B, Article D, (b) a provision requiring payment of royalties to Licensee to meet Licensee’s royalty obligations to Alliance at the rates set forth in this License Agreement, (c) a prohibition on the grant of further Sublicenses, (d) a requirement that any Licensed Products produced under the Sublicense be substantially manufactured in the United States and provisions flowing down Sections 2.4 and 19.3 of this Agreement to all Sublicensees and (e) a prohibition on the ability of any Sublicense, at any tier, to be assigned or pledged as collateral.