Emerson Radio Corp. (MSN: Quote) announced that On December 17, 2012, and effective as of December 1, 2012, Emerson and Funai Corporation Inc. entered into an amendment to the License Agreement dated effective January 1, 2001, as amended, between the Company and Funai, 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.
As per the terms of the License Agreement, Emerson Radio 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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by RTT Staff Writer
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