Common use of Reporting and Payment Clause in Contracts

Reporting and Payment. Licensee must purchase a runtime license for each Distribution of the Application. For purposes hereof, a “Distribution of the Application” shall mean any and all copies of the Application installed, used, distributed, leased or sold by Licensee and any of its customers, employees, distributors, resellers, affiliates or other channel partners. If the Application is installed on a server or network by Licensee or its customers, the number of Distributions that must be reported and the number of runtime licenses that must be purchased hereunder will be the number of computers that are permitted access to the Application via the network or server. No additional runtime licensing is required for updates and upgrades to the Application distributed to users of the Application for which runtime licenses have been paid and accounted for hereunder unless a major new version of the Software is included in the upgrade. If a major new version of the Software is included in an upgrade to the Application, each user that is upgraded will be considered to be a new Distribution for purposes of runtime license payment and reporting hereunder. All amounts due hereunder are based on United States currency. Licensee agrees to maintain full, clear and accurate records as to all Distributions of the Application. Licensee will submit to Licensor, within thirty (30) days of the close of each calendar quarter, a report setting forth the number of Distributions of the Application made during such quarter, and, provided that Licensee has not prepaid Licensor for Distributed runtime licenses in accordance with Schedule 1, each such report shall be accompanied by a check in the amount of runtime licensing that is due, if any. If no Distributions have been made during said quarter, Licensee will provide a certification so stating. Licensee shall keep adequate records to accurately determine the payments due under this Agreement.

Reporting and Payment. Licensee must purchase a runtime license for each Distribution Deployment of the ApplicationApplication Software. For purposes hereof, a “Distribution "Deployment of the Application” Application Software" shall mean any and all copies of the Application Software installed, used, distributed, leased leased, or sold by Licensee and any of its customers, employees, distributors, resellers, affiliates or other channel partners. If the Application Software is installed on a server or network by Licensee or its customers, the number of Distributions Deployments that must be reported and the number of runtime licenses that must be purchased hereunder will be the number of computers that are permitted access to the Application Software via the network or server. (However, see paragraph 4 hereof for server license options.) No additional runtime licensing is required for updates and upgrades to the Application Software distributed to users of the Application Software for which runtime licenses have been paid and accounted for hereunder unless a major new version of the Software (e. g. LEADTOOLS version 12, 13 etc.) is included in the upgrade. If a major new version of the Software is included in an upgrade to the ApplicationApplication Software, each user that is upgraded will be considered to be a new Distribution Deployment for purposes of runtime license payment and reporting hereunder. All amounts due hereunder are based on United States currency. Licensee agrees to maintain full, clear and accurate records as to all Distributions Deployments of the ApplicationApplication Software. Licensee will submit to LicensorLEAD, within thirty (30) days of the close of each calendar quarter, a report in substantially the form of EXHIBIT A setting forth the number of Distributions Deployments of the Application Software made during such quarter, and, provided that Licensee has not prepaid Licensor for Distributed runtime licenses in accordance with Schedule 1, each and accompanying such report shall will be accompanied by a check in the amount of runtime licensing that is due, if any. If no Distributions Deployments have been made during said quarter, Licensee will provide a certification so stating. Licensee shall keep adequate records to accurately determine the payments due under this Agreement. LEAD shall have the right, no more than once during any calendar year, to have an independent certified public accountant or other disinterested third party inspect the relevant records of Licensee on thirty (30) business days notice and during regular business hours to verify the reports and payments required to be made hereunder. Should an underpayment in excess of five percent (5%) be discovered, Licensee shall pay the cost of the audit. If Licensee is more than thirty (30) days late with any payment of amount due hereunder, interest will accrue from the date due until paid at the lesser of (i) 1.5% per month or (ii) the maximum rate of interest permitted by law.