Common use of Modifications and Improvements Clause in Contracts

Modifications and Improvements. For purposes of calculating sales on which royalty payments are due to the Seller, Purchaser shall pay to Seller royalties on new or modified urine chemistry and BUN products to the extent the Urine Chemistry and BUN Products, as conveyed herein, constitute any part of the new or modified products. In the event Purchaser shall develop and sell urine chemistry products incorporating test elements not presently existing or under development by Seller or Purchaser, Purchaser shall pay to Seller royalties on the Net Revenues derived from sales of such new or modified products only in amounts relative to the extent that any of the 10 Test Urine Strip elements comprise a part of the sales value of any new or modified urine chemistry test strip.