Common use of Testers Clause in Contracts

Testers. (A) Subject to clauses 15.9.2(C) and 15.9.2(D) below, Testers shall only be disposed of by the Licensee to Retailers, by Distributors to Retailers and by Retailers to consumers as a free promotional item with the sale of Licensed Products which are Products. (B) If Burberry reasonably believes that any Retailer has sold or is likely to sell Testers for money or money's worth, Burberry shall be entitled to withdraw immediately its Approval of such Retailer. (C) If Testers are sold for money or money's worth by the Licensee to Retailers or by Distributors or Retailers to other Distributors or Retailers, as the case may be, a Licence Fee shall be payable on such Testers, which shall be calculated by multiplying a notional price for such Testers (reasonably determined by Burberry) by [____](25). (D) If Testers are sold by the Licensee for money or money's worth to Distributors a royalty shall be payable on such sales of Testers, which shall be calculated by multiplying the actual total price (being the actual price payable by the Distributors in respect of such sales) of such Testers by [_____](26) (the "Tester Royalty"). The Tester Royalty will be paid every six months, with the first Tester Royalty payment being due on the 31 December 2004 and then every 30 June and 31 December thereafter and shall be payable within 30 days of such date. The provisions of clauses 10.10, 10.11, 10.12 and 10.13 shall apply, and the provisions of clause 11 shall apply mutatis mutandis, to such Tester Royalty. (E) For the purposes of clause 15.9.2, Testers shall be deemed to be Advertising and Promotional Expenditure and have a value of no more than the manufacturing cost price of such Testers plus [_____](27).