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This excerpt taken from the LUX 20-F filed Jun 28, 2006. Royalty Agreements— The Company is obligated under non-cancellable distribution agreements with designers, which expire at various dates through 2015. In accordance with the provisions of such agreements, the Company is required to pay royalties and advertising fees based on a percentage of sales (as defined) with, in certain agreements, minimum guaranteed payments in each year of the agreements. In the first half of 2003, the Company terminated its license agreement for the production and distribution of the Giorgio Armani and Emporio Armani eyewear collections and signed a ten-year worldwide license agreement for the production and distribution of eyewear of Versace, Versus and Versace Sport frames. The agreement is renewable at the Company’s discretion for an additional ten years. In the second half of 2003, a license agreement was signed for the production and distribution of products with the Prada and Miu Miu trade names. The Prada license agreement expires in 2013. In June 2004, the Company signed a new licensing agreement for the design, production and worldwide distribution of Donna Karan and DKNY prescription frames and sunglasses. The initial term of the agreement is five years, which began on January 1, 2005 and is renewable for an additional five years. In October 2004, the Company signed a new licensing agreement for the design, production and worldwide distribution of Dolce & Gabbana and D&G Dolce & Gabbana prescription frames and sunglasses. The initial term of the agreement is five years, which began on January 1, 2006, with an automatically renewable extension for an additional five years upon meeting certain targets. In October 2005, the Company announced the signing of a 10-year license agreement for the design, production and worldwide distribution of prescription frames and sunglasses under the Burberry name. The agreement began on January 1, 2006. Minimum payments required in each of the years subsequent to December 31, 2005 are detailed as follows (thousands of Euro):
Total royalties and related advertising expenses for the years ended December 31, 2003, 2004 and 2005 aggregated Euro 64.3 million, Euro 83.0 million and Euro 82.0 million, respectively. Total payments for royalties and related advertising expenses for the years ended December 31, 2003, 2004 and 2005 aggregated Euro 124.2 million, Euro 68.5 million and Euro 119.8 million, respectively. This excerpt taken from the LUX 20-F filed Jun 29, 2005. Royalty Agreements—
The Company is obligated under non-cancellable license agreements with designers, which expire at various dates through 2013. In accordance with the provisions of such agreements, the Company is required to pay royalties and advertising
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fees based on a percentage of sales (as defined) with, in certain agreements, minimum guaranteed payments in each year of the agreements. In the first half of 2003, the Company terminated its license agreement for the production and distribution of the Giorgio Armani and Emporio Armani eyewear collections and has signed a ten-year worldwide license agreement for the production and distribution of eyewear of Versace, Versus and Versace Sport frames. The agreement is renewable at the Company’s discretion for an additional ten years. In the second part of 2003, a license agreement was signed for the production and distribution of products with the Prada and Miu Miu trade names. The Prada license agreement expiration date is in 2013. In June 2004, the Company signed a new licensing agreement for the design, production and worldwide distribution of Donna Karan and DKNY prescription frames and sunglasses. The initial term of the agreement is five years, which began on January 1, 2005 and is renewable for an additional five years. In October 2004, the Company signed a new licensing agreement for the design, production and worldwide distribution of Dolce & Gabbana and D&G Dolce & Gabbana prescription frames and sunglasses. The initial term of the agreement is five years, which will begin on January 1, 2006, with an automatically renewable extension for an additional five years upon meeting certain targets. On December 27, 2004 the Company and the current license agreed to advance the initial term of the license to October 1, 2005.
Minimum payments required in each of the years subsequent to December 31, 2004 are detailed as follows (thousands of Euro):
Total royalties and advertising expenses for the years ended December 31, 2002, 2003 and 2004 aggregated Euro 88.7 million, Euro 64.3 million and Euro 83.0 million, respectively.
Total payments for royalties and advertising expenses for the years ended December 31, 2002, 2003 and 2004 aggregated Euro 70.3 million, Euro 124.2 million and Euro 68.5 million, respectively.
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