The existing brand arrangement dated 07 December 2009 will continue to govern use of PNB trademark until PNB's shareholding in the Company is 30% or more. Upon PNB's shareholding falling below 30%, the new Agreement will replace the existing Agreement.
The key terms of the revised Agreement dated 24 May 2021 are as under -
a. In the event PNB's shareholding in PNB Housing falls below 20%, PNB would have the right to terminate the revised Agreement. In case of such termination, PNB Housing shall be allowed a transition period of up to 24 months for change of Brand name.
b. Royalty Fee: PNB Housing will pay a royalty which is higher of 0.2% of Revenue and 2% of PAT subject to a minimum charge of Rs 14.97 crore and a maximum charge of Rs 30 crore. The royalty will be payable upon PNB's stake falling below 30%.
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