Common use of Royalty Calculation Clause in Contracts

Royalty Calculation. In consideration of the License granted herein, Licensee shall pay Cumberland an earned Royalty of seven percent (7%) of Net Sales, pursuant to the terms and conditions of this Agreement. In addition, the full seven percent (7%) Royalty must be paid on (i) all "free goods" given to retailers (in lieu of slotting fees or otherwise) based upon the Net Sales price which otherwise would have been charged, and (ii) all "private label" sales of the Licensed Product permitted to be sold pursuant to Section 15 herein.