Common use of Royalty Reporting Clause in Contracts

Royalty Reporting. a. Licensee shall furnish written royalty reports and royalty payments to Bitstream within thirty (30) days after the end of each calendar quarter indicating the number of Licensed Products sublicensed during the preceding calendar quarter and the number of output devices that used Licensed Products as described above. A royalty report form is attached hereto as Attachment 1 to record each Licensed Product sublicensed, the number of sublicensed copies and the applicable royalty rate(s). b. Licensee shall maintain invoices and other documentation necessary to substantiate the number of royalty payments due under this Agreement for a period of three years from the date the applicable royalty report was sent to Bitstream. Bitstream or its authorized representative may at Bitstream expense, inspect and copy such documentation at all reasonable times during normal business hours. A royalty period may not be inspected more than once. If a royalty period has not been inspected within said three (3) years, then the royalty reports rendered for such period shall be deemed to Bitstream. Bitstream agrees to keep all information obtained during any royalty report inspection confidential and agrees that such information shall not be used for any purpose except to verify and collect the royalties due under this Agreement. Licensee shall provide to Bitstream financial statements and such other financial information, certified by an officer of Licensee, as Bitstream shall request from time to time, so long as any money may be due or may become due from Licensee to Bitstream under this Agreement. By: *** By: *** Print Name: *** Print Name: *** Title: Vice President, Sales & Marketing Title: Gen. Mgr. Cob Dig. Receivers Date: 15-24-97 Date: 23-12-97 Bitstream Inc. *** OEM/ISV License Agreement Philips Business Electronics B.V. 11