Common use of Additional Royalties Clause in Contracts

Additional Royalties. In addition to the Royalties, DMG will pay TufAmerica additional quarterly royalties (the “Additional Royalties”) equal to [*] percent ([*]%) of the Net Receipts. For the avoidance of doubt, the Additional Royalties are not subject to recoupment. Payments of Additional Royalties will be made on or before the end of the calendar quarter subsequent to the calendar quarter in which monies relating to the Additional Royalties were actually received by DMG or any * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted provisions. of DMG’s affiliates. TufAmerica shall account directly to any artist for the Additional Royalties, as provided for in the agreements between TufAmerica and artists, and shall, during the Term, provide DMG with copies of the applicable royalty or accounting statements. In the event TufAmerica fails to account directly to any artist for the Additional Royalties or fails, and continues to fail, to provide DMG with copies of the applicable royalty or accounting statements DMG shall have the option to, on TufAmerica’s behalf, pay the Additional Royalties directly to the artists.

Appears in 2 contracts

Sources: Digital Distribution Agreement, Digital Distribution Agreement (Digital Music Group, Inc.)