Common use of BASIS FOR COMPUTATION OF ROYALTIES Clause in Contracts

BASIS FOR COMPUTATION OF ROYALTIES. All royalties due to VDI shall accrue upon the sale of the Licensed Products, regardless of the time of collection by the Licensee. For purposes of this Agreement, an Article shall be considered "sold" as of the date on which such Article is billed, invoiced, shipped, or paid for, whichever event occurs first. If any Licensed Products are consigned to a distributor by the Licensee, the Licensed Products shall be considered "sold" by the Licensee as of the date on which such distributor bills, invoices, ships, or receives payment for any of the Licensed Products, whichever event occurs first.