Common use of Royalty Clause in Contracts

Royalty. A. The Operator will pay quarterly to North America a Royalty equal to 8% of the gross contract price of all contracts, including sales of the Subject Matter, whether or not invoiced or paid, for the installation of the Subject Matter, including preparatory and finishing work therefor, carried out by the Operator, or any agent, employee, subcontractor or independent contractor retained for such purpose, in its or any other Territory, such gross contract price (adjusted for all proper change orders and contractually required adjustments) being calculated after adding back trade discounts and other preferences, provided however that such price is calculated at the going commercial rate (i.e. current market price derived from arms length negotiation) and in the event that the Operator carries out installations in the Territory at less than the going commercial rate, then for the purposes of calculation of Royalty due in respect of such work, it will be assumed that the Operator performed such installations at the going commercial rate. The gross contract price shall include the cost of all raw materials necessary to complete the installation of the Subject Matter. If some or all of the raw materials are acquired separately by the ultimate customer the cost thereof shall nevertheless be added to the price charged by the Operator for the purpose of computing Royalty under this Agreement. The gross contract price shall also include the value of any actual, preparatory and/or finishing work performed by any subcontractor or independent contractor, whether retained or hired by Operator, its agents or employees, the ultimate customer, or any other party, when such actual, preparatory and/or finishing work is performed as a part of and/or adjunct to the installation and use of the Subject Matter, and the value of any such work shall nevertheless be added to the price charged by the Operator for the purpose of computing the Royalty under this Agreement. Within 45 days after the end of each calendar quarter or portion thereof the Operator shall submit to North America a written report in such form as may be requested by North America fully detailing all sales and work performed utilizing the Subject Matter during such calendar quarter, whether or not invoiced or paid, the total of amounts invoiced, the contract price and terms for the work performed, the stage of completion, a computation of the Royalty due, and such other information as North America may reasonably request and shall be accompanied by payment in full in favor of North America for the Royalties due North America. Operator shall keep accurate records of all of its operations involving the Subject Matter and of all contracts entered into involving the Subject Matter. North America or its designated agent shall have a right to inspect and audit any and all such records and contracts at all reasonable times at its expense, provided that North America shall not disclose any confidential information so obtained to persons other than employees or agents of North America except pursuant to subpoena of a court of proper jurisdiction.

Royalty. A. The Operator will pay quarterly to North America a Royalty equal to 8% of the gross contract price of all contracts, including sales of the Subject Matter, whether or not invoiced or paid, for the installation of the Subject Matter, including preparatory and finishing work therefor, carried out by the Operator, or any agent, employee, subcontractor or independent contractor retained for such purpose, in its or any other Territory, such gross contract price (adjusted for all proper change orders and contractually required adjustments) being calculated after adding back trade discounts and other preferencespreferences and deducting packaging and shipping charges and any applicable taxes, provided however that such price is calculated at the going commercial rate (i.e. current market price derived from arms length negotiation) and in the event that the Operator carries out installations in the Territory at less than the going commercial rate, then for the purposes of calculation of Royalty due in respect of such work, it will be assumed that the Operator performed such installations at the going commercial rate. The gross contract price shall include the cost of all raw materials necessary to complete the installation of the Subject Matter. If some or all of the raw materials are acquired separately by the ultimate customer the cost thereof shall nevertheless be added to the price charged by the Operator for the purpose of computing Royalty under this Agreement. The gross contract price shall also include the value of any actual, preparatory and/or finishing work performed by any subcontractor or independent contractor, whether retained or hired by Operator, its agents or employees, the ultimate customer, or any other party, when such actual, preparatory and/or finishing work is performed as a part of and/or adjunct to the installation and use of the Subject Matter, and the value of any such work shall nevertheless be added to the price charged by the Operator for the purpose of computing the Royalty under this Agreement. Within 45 days after the end of each calendar quarter or portion thereof the Operator shall submit to North America a written report in such form as may be reasonably requested by North America fully detailing all sales and work performed utilizing the Subject Matter during such calendar quarter, whether or not invoiced or paid, the total of amounts invoiced, the contract price and terms for the work performed, the stage of completion, a computation of the Royalty due, and such other information as North America may reasonably request and shall be accompanied by payment in full in favor of North America for the Royalties due North America. Operator shall keep accurate records of all of its operations involving the Subject Matter and of all contracts entered into involving the Subject Matter. North America or its designated agent shall have a right to inspect and audit any and all such records and contracts at all reasonable times at its expense, provided that North America shall not disclose any confidential information so obtained to persons other than employees or agents of North America except pursuant to subpoena of a court of proper jurisdiction.

Royalty. A. The Operator will pay quarterly to North America INAC a Royalty equal to 8% of the gross contract price of all contracts, including sales of the Subject Matter, whether or not invoiced or paid, for the installation of the Subject Matter, including preparatory and finishing work therefor, carried out by the Operator, or any agent, employee, subcontractor or independent contractor retained for such purpose, in its or any other Territory, such gross contract price (adjusted for all proper change orders and contractually required adjustments) being calculated after adding back trade discounts and other preferences, provided however that such price is calculated at the going commercial rate (i.e. current market price derived from arms length negotiation) and in the event that the Operator carries out installations in the Territory at less than the going commercial rate, then for the purposes of calculation of Royalty due in respect of such work, it will be assumed that the Operator performed such installations at the going commercial rate. The gross contract price shall include the cost of all raw materials necessary to complete the installation of the Subject Matter. If some or all of the raw materials are acquired separately by the ultimate customer the cost thereof shall nevertheless be added to the price charged by the Operator for the purpose of computing Royalty under this Agreement. The gross contract price shall also include the value of any actual, preparatory and/or finishing work performed by any subcontractor or independent contractor, whether retained or hired by Operator, its agents or employees, the ultimate customer, or any other party, when such actual, preparatory and/or finishing work is performed as a part of and/or adjunct to the installation and use of the Subject Matter, and the value of any such work shall nevertheless be added to the price charged by the Operator for the purpose of computing the Royalty under this Agreement. Within 45 30 days after the end of each calendar quarter or portion thereof the Operator shall submit to North America INAC a written report in such form as may be requested by North America INAC fully detailing all sales and work performed utilizing the Subject Matter during such calendar quarter, whether or not invoiced or paid, the total of amounts invoiced, the contract price and terms for the work performed, the stage of completion, a computation of the Royalty due, and such other information as North America INAC may reasonably request and shall be accompanied by payment in full in favor of North America INAC for the Royalties due North America. Operator shall keep accurate records of all of its operations involving the Subject Matter and of all contracts entered into involving the Subject Matter. North America or its designated agent shall have a right to inspect and audit any and all such records and contracts at all reasonable times at its expense, provided that North America shall not disclose any confidential information so obtained to persons other than employees or agents of North America except pursuant to subpoena of a court of proper jurisdictionINAC.