Common use of Payment of Sales Royalty Clause in Contracts

Payment of Sales Royalty. The Sales Royalty hereunder shall be accounted for and paid quarterly within thirty (30) days after close of each calendar quarter during the term of this Agreement (or portion thereof in the event of prior termination for any reason). The Sales Royalty payable for each accounting and payment period during each Annual Period shall be computed on the basis of Net Sales during such Annual Period, with a credit for any Guaranteed Minimum Royalty and Sales Royalty payments theretofore made to the Company for said Annual Period. Deductions for returns or other authorized credits shall be made in the accounting and payment period in which the exchange is given (and no adjustment shall be made in the period in which the original sale was accounted for).