Common use of Guaranteed Minimum Royalties Clause in Contracts

Guaranteed Minimum Royalties. Paragraph 7 of the License Agreement is deleted in its entirety and replaced with the following: "Siboney will pay NECTAR a guaranteed minimum royalty payment totaling $350,000 (in U.S. Dollars). This guaranteed royalty will accrue in specified amounts (each, a "Guaranteed Amount") for certain periods (each, a "Guarantee Period) and be payable as follows: $100,000 will accrue on December 31, 1999 and be payable January 31, 2000; $125,000 will accrue on December 31, 2000 and be payable January 31, 2001 and $125,000 will accrue on December 31, 2001 and be payable January 31, 2002. Earned Royalties will be credited against the applicable Guaranteed Amount, if any. Earned Royalties for any Guarantee Period in excess of the Guaranteed Amount for that period shall be credited dollar for dollar to reduce the Guaranteed Amount for the following guarantee period. For example, if Earned Royalties accrued as of December 31, 1999 total $120,000, then the Guaranteed Amount payable January 31, 2001 shall be reduced to $105,000. The guaranteed minimum royalty payment does not affect Siboney's obligation to pay all Earned Royalties accrued during a particular period."

Guaranteed Minimum Royalties. Paragraph 7 of the License Agreement is deleted in its entirety and replaced with the following: "Siboney will pay NECTAR a guaranteed minimum royalty payment totaling $350,000 180,000 (in U.S. Dollars). This guaranteed royalty will accrue in specified amounts (each, a "Guaranteed Amount") for certain periods (each, a "Guarantee Period) and be payable as follows: $100,000 30,000 will accrue on December 31, 1999 and be payable January 31, 2000; $125,000 60,000 will accrue on December 31, 2000 and be payable January 31, 2001 and $125,000 90,000 will accrue on December 31, 2001 and be payable January 31, 2002. Earned Royalties will be credited against the applicable Guaranteed Amount, if any. Earned Royalties for any Guarantee Period in excess of the Guaranteed Amount for that period shall be credited dollar for dollar to reduce the Guaranteed Amount for the following guarantee period. For example, if Earned Royalties accrued as of December 31, 1999 total $120,00040,000, then the Guaranteed Amount payable January 31, 2001 shall be reduced to $105,00050,000. The guaranteed minimum royalty payment does not affect Siboney's obligation to pay all Earned Royalties accrued during a particular period."