Common use of Minimum Royalty Payments Clause in Contracts

Minimum Royalty Payments. The Licensee agrees to make royalty payments of not less than $300,000 in the aggregate with respect to Net Sales occurring during the first three years after the date hereof and royalty payments of not less than $150,000 with respect to Net Sales occurring in each year thereafter, provided that if Licensee has not sold sufficient quantities of Royalty Bearing Products to generate such minimum royalty payments Licensee may nevertheless make royalty payments in excess of the amounts that would otherwise be required to be paid in order to achieve such minimum royalty payments. In the event that the Licensee fails to make such minimum royalty payments, the Licensor shall be entitled, upon not less than 30 days written notice from Licensor to Licensee, to terminate the exclusive nature of the rights granted hereunder, and, in the event that such failure is as a consequence of a default by the Licensee in the payment of royalty payments required to be made hereunder the Licensor shall, in addition, have the right to terminate this Agreement in accordance with the provisions of Section 4.3 hereof.