Common use of Licensed Articles Clause in Contracts

Licensed Articles. The parties acknowledge that all line extensions and items of merchandise that utilize characters or brands associated with the Licensed Articles are intended to be treated as Licensed Articles in accordance with Section 7)e) of the Agreement, including, without limitation, all items that use the “SIP WITH ME” or derivative trademarks or branding, or that use characters or artwork for the Licensed Articles such as, without limitation, the items depicted in Exhibit A attached hereto and incorporated herein by this reference. All line extensions will be paid a 2% royalty fee.