3.1.1 In consideration of the License herein granted to it and subject to the deduction set forth in Article 3.1.2. hereafter, Licensee shall pay MEIDEN a license fee in the amount of 0.35% of the semi-annual sales amount of the Licensee. This semi-annual sales shall exclude the sales amount to Meiden Group Companies.
3.1.2 The subject semi-annual sales shall be sales less the cost for products and services that the Licensee purchased from MEIDEN.
3.1.3 In determining the license fee rate percentage, it was decided with due consideration to its aim: to share brand management costs properly within the Meiden Group abroad and invest in brand equity through advertising and other marketing activities as well as development of innovations in technologies and improvement of product offerings unique to the global markets to improve the brand consciousness.