Common use of Net Royalties Clause in Contracts

Net Royalties. If the Facility Operator licenses to a Licensee, Facility Operator’s obligation to make Annual Royalty Payments to the Sponsor shall commence from the date that the Net Royalties calculation is positive. Annual Royalty Payments are payable in annual installments and are due the first day of March for Net Royalties calculations made and Annual Royalty Payments collected for the Facility Operator’s prior fiscal year. The Facility Operator is responsible for notifying the Sponsor, on an annual basis, of Net Royalties received as a result of its licensing of intellectual property under this Agreement. Net Revenues. If the Facility Operator is the licensee, the Facility Operator’s obligation to make payments to the Commission shall commence upon the first sale of the Licensed Product. Payments are payable in annual installments and are due the first day of March for the prior fiscal year of the Facility Operator and extend until ten (10) years from the Agreement’s end date. Facility Operator agrees to pay an amount equivalent to 10% of the Net Revenues by check made payable to the California Energy Commission. Facility Operator agrees to pay Sponsor Annual Royalty Payments in an amount equivalent to 10% of the total annual Net Royalties calculated for the prior fiscal year from each intellectual property in each license that is subject to Net Royalties in this Agreement. Annual Royalty Payments shall be made by check, made payable to the California Energy Commission, PIER Fund. Annual Royalty Payments from Net Revenues and Net Royalties received resulting from the sale, license, or assignment of each Subject Invention, Copyrighted Project Work or Other Intellectual Property right shall extend for a period of ten (10) years from the Agreement’s end date that funded the licensed intellectual property or until the underlying patent, copyright, or Other Intellectual Property protection expires, whichever occurs first. Unless an early buyout is made, total royalty payments under this Agreement for all licensed intellectual property will be limited to three (3) times the amount of funds paid by the Energy Commission under the Agreement. If a Licensed Product, Subject Inventions, Copyrightable Works or Generated Information were developed in part with Match Funds or non-Energy Commission funds (e.g., federal funds) during the Agreement term, the Net Revenues or Net Royalties payment will be reduced in accordance with the percentage of development activities that were funded with Match Funds or non-Energy Commission funds. Example 1, Net Revenues: if 10% of the development activities were funded with Match Funds during the Agreement and Net Revenues totaled $100,000 in one year, the Recipient would owe the Energy Commission $1350 for the year (1.5% of $100,000 = $1500; 10% of $1500 = $150; $1500 - $150 = $1350). Example 2, Net Royalties: if 80% of the development activities were funded with Match Funds or non-Energy Commission funds during the Agreement and Net Royalties totaled $100,000 in one year, the Recipient would owe the Energy Commission $2,000 for the year (10% of $100,000 = $10,000; 80% of $10,000 = $8,000; $10,000 - $8,000 = $2,000). Notwithstanding, the Facility Operator is not required to report or make an Annual Royalty Payment for any calendar year in which Net Royalties are less than $1,000 U.S. Dollars.

Net Royalties. If the Facility Operator licenses to a Licensee, Facility Operator’s obligation to make Annual Royalty Payments to the Sponsor shall commence from the date that the Net Royalties calculation is positive. Annual Royalty Payments are payable in annual installments and are due the first day of March for Net Royalties calculations made and Annual Royalty Payments collected for the Facility Operator’s prior fiscal year. The Facility Operator is responsible for notifying the Sponsor, on an annual basis, of Net Royalties received as a result of its licensing of intellectual property under this Agreement. Net Revenues. If the Facility Operator is the licensee, the Facility Operator’s obligation to make payments to the Commission shall commence upon the first sale of the Licensed Product. Payments are payable in annual installments and are due the first day of March for the prior fiscal year of the Facility Operator and extend until ten (10) years from the Agreement’s end date. Facility Operator agrees to pay an amount equivalent to 10% of the Net Revenues by check made payable to the California Energy Commission, EPIC Fund. Facility Operator agrees to pay Sponsor Annual Royalty Payments in an amount equivalent to 10% of the total annual Net Royalties calculated for the prior fiscal year from each intellectual property in each license that is subject to Net Royalties in this Agreement. Annual Royalty Payments shall be made by check, made payable to the California Energy Commission, PIER EPIC Fund. Annual Royalty Payments from Net Revenues and Net Royalties received resulting from the sale, license, or assignment of each Subject Invention, Copyrighted Project Work or Other Intellectual Property right shall extend for a period of ten (10) years from the Agreement’s end date that funded the licensed intellectual property or until the underlying patent, copyright, or Other Intellectual Property protection expires, whichever occurs first. Unless an early buyout is made, total royalty payments under this Agreement for all licensed intellectual property will be limited to three (3) times the amount of funds paid by the Energy Commission under the Agreement. If a Licensed Product, Subject Inventions, Copyrightable Works or Generated Information were developed in part with Match Funds or non-Energy Commission funds (e.g., federal funds) during the Agreement term, the Net Revenues or Net Royalties payment will be reduced in accordance with the percentage of development activities that were funded with Match Funds or non-Energy Commission funds. Example 1, Net Revenues: if 10% of the development activities were funded with Match Funds during the Agreement and Net Revenues totaled $100,000 in one year, the Recipient would owe the Energy Commission $1350 for the year (1.5% of $100,000 = $1500; 10% of $1500 = $150; $1500 - $150 = $1350). Example 2, Net Royalties: if 80% of the development activities were funded with Match Funds or non-Energy Commission funds during the Agreement and Net Royalties totaled $100,000 in one year, the Recipient would owe the Energy Commission $2,000 for the year (10% of $100,000 = $10,000; 80% of $10,000 = $8,000; $10,000 - $8,000 = $2,000). Notwithstanding, the Facility Operator is not required to report or make an Annual Royalty Payment for any calendar year in which Net Royalties are less than $1,000 U.S. Dollars.