Common use of Annual Minimums Clause in Contracts

Annual Minimums. The following Annual Minimums must be paid during the Term of the Agreement, which has been extended to include Deferred Compensation Annual Minimum Payments: Annual Period Annual Minimum Year 1 (Effective Date through 12/31/2014) $ 0 Year 2 (2015 – Due 12/31/2015) through Year 6 (2020 – Due 12/31/2020) $ 100,000 Year 7 and every year thereafter that there is no market approval from the US FDA or a foreign equivalent $ 0 The first year with a market approval from the US FDA or a foreign equivalent and every year thereafter until the first commercial sale of a Product $ 350,000 The first year with a commercial sale of a Product and every year thereafter $ 400,000 The following one-time Milestone payments must be paid during the Term of the Agreement, which has been extended in accordance with Section 3.4 and may be treated as Deferred Compensation.