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CMC.” Vita further agreed
to pay said royalties to CMC within 10 working days
after the end of the first week said advertising mate-
rials generate sales and continue to pay said royalties
on a weekly basis thereafter.
In order to determine the amount of royalties payable under the
Vita-CMC agreement, that agreement required Vita
to provide a list of the sales sources and gross sales
for each source along with each royalty payment. Said
sales sources shall be defined as “key codes” for
direct mail and space advertisements and 800 [tele-
phone] number assignments.
Gross sales upon which royalties were payable under the Vita-CMC
agreement were determined by using the data processing system
employed by the Braswell sales corporations in order to track
gross sales by means of product codes as well as media codes that
appeared on the advertising material that CMC created for Vita’s
products and other products designated by Vita.
Mr. Revel concluded shortly after the Vita-CMC agreement was
executed that Mr. Braswell was not the type of individual who
involved himself in the bookkeeping and accounting operations of
the Braswell companies. Consequently, whenever Mr. Revel had any
questions under the Vita-CMC agreement about the royalty payments
made to CMC thereunder, he addressed those questions to the
employees working in the bookkeeping, sales, and/or accounting
departments of those Braswell companies who compiled the figures
needed to determine the royalties due CMC under the Vita-CMC
agreement.
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Last modified: May 25, 2011