Emerson Radio Amends Licensing Deal with Funai, Minimum Royalty Payment $3.75/Year
On December 17, 2012, and effective as of December 1, 2012, Emerson Radio Corp. (NYSE: MSN) and Funai Corporation, Inc. ("Funai") entered into an amendment to the License Agreement dated effective January 1, 2001, as amended, between the Company and Funai (the "License Agreement"), under which the term of the License Agreement was extended until March 31, 2015. The Agreement provides that Funai will continue to manufacture, market, sell and distribute specified products bearing the Emerson^® trademark to customers in the U.S. and Canadian markets. Under the terms of the License Agreement, the Company receives non-refundable minimum annual royalty payments of $3.75 million each calendar year ($937,500 per calendar quarter) and license fees on sales of products subject to the License Agreement in excess of the minimum annual royalties.
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