PAYING ROYALTIES. The monthly royalties applicable under Article 8 shall be collected by the OP3FT as revenue of the OP3FT endowment. These royalties are not subject to value-added tax (VAT), in compliance with French law applicable on the date of entry into force of the Agreement. For each royalties amount corresponding to a month (M), the OP3FT shall send the Frogans Core Registry Operator, at the beginning of the preceding month (M-1), an invoice for an amount equal to 150,000 (one hundred and fifty thousand) euros. The outstanding royalties amount due to the OP3FT for the month (M) shall be invoiced by the OP3FT at the beginning of the next month (M+1) based on declarations made by the Operator. In this regard, the Operator undertakes to provide the OP3FT, before the 10th of each month (M+1), with a declaration containing the list, as well as the amount, of the Frogans Core Registry addressing services which the Operator invoiced over the course of the month (M). Unless otherwise agreed between the Parties, any invoice sent to the Operator by the OP3FT must be paid within no more than 30 (thirty) calendar days as from the invoice date and must be paid in full in one single operation. If the OP3FT grants, on an exceptional basis, a payment extension for an invoice, this cannot be interpreted as an entitlement granted to the Operator in regards to a payment extension for another invoice. The Operator undertakes to pay each invoice by way of bank transfer. The OP3FT’s bank account information is provided on the invoice. In the case of late payment of an invoice to which the Parties have not agreed a payment extension beforehand, the OP3FT shall send, by registered letter with return receipt, a formal notice to the Operator, to regularize the situation within 15 (fifteen) calendar days as from the sending of the registered letter, and shall charge a penalty of 10% (ten percent). If the Operator fails to pay within the deadlines agreed between the Parties, without appropriate justification, then the OP3FT shall be entitled to terminate the Agreement without any other prior notice, in compliance with Article 15. If the OP3FT’s tax regime were to change, for example if the OP3FT were to become subject to value- added tax (VAT), then the amount of the monthly royalties invoiced to the Operator will immediately be adjusted to reflect the new applicable regime, in that it will be increased by the corresponding tax amount. Title IV. MISCELLANEOUS
