Common use of Development Fees Clause in Contracts

Development Fees. (a) For the development services described in Section 8 above, IMG will pay VERITAS at the "Annual Rate". The initial Annual Rate shall be one hundred eighty thousand dollars ($180,000) per person-year. Commencing January 1, 2002, the Annual Rate shall be adjusted to equal the product of the then current Annual Rate multiplied by a fraction, the numerator of which is the Consumer Price Index published for the December immediately preceding the January 1 in question and the denominator of which is the Consumer Price Index published for the immediately preceding December; provided, however, that any such increase in the Annual Rate shall not be greater than seven percent (7%) of the immediately preceding Annual Rate. (b) IMG will recover any development fees or other NRE charges paid to VERITAS by a fifteen percent (15%) reduction in the royalties paid by IMG to VERITAS, with respect to the product(s) resulting from that development, until all such amounts are recovered by IMG. Any amounts not so recovered by IMG upon termination of this Agreement shall be retained by VERITAS.

Development Fees. (a) For the development services described in Section 8 4 above, IMG Seagate will pay VERITAS at the "Annual Rate". The initial Annual Rate shall be one hundred eighty thousand dollars ($180,000) per person-year. Commencing January 1, 2002, the Annual Rate shall be adjusted to equal the product of the then current Annual Rate multiplied by a fraction, the numerator of which is the Consumer Price Index published for the December immediately preceding the January 1 in question and the denominator of which is the Consumer Price Index published for the immediately preceding December; provided, however, that any such increase in the Annual Rate shall not be greater than seven percent (7%) of the immediately preceding Annual Rate. (b) IMG Seagate will recover any development fees or other NRE charges paid to VERITAS by a fifteen percent (15%) reduction in the royalties paid by IMG Seagate to VERITAS, with respect to the product(s) resulting from that development, until all such amounts are recovered by IMGSeagate. Any amounts not so recovered by IMG Seagate upon termination of this Agreement shall be retained by VERITAS.