no matter what you call it , it is based upon operating income
earnings before interest and taxes (EBIT), also called operating profit or operating income is a measure of a firm's profit that excludes interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then operating income is sometimes used as a synonym for EBIT and operating profit
I thought they were going to be after one year and then quarterly after that, don't recall exactly, was to be based upon profits of HZO. Good luck with that. My money says we will not see royalties from that deal. Thus it is never discussed by management. Others on this rag may disagree. The accounting is long over due!