Common use of Royalty Amount Clause in Contracts

Royalty Amount. Within thirty (30) days following the end of each calendar quarter ending March 31, June 30, September 30 and December 31 from and after April 1, 2000, PSF shall pay to Covol quarterly royalty payments in an amount equal to (i) $** multiplied by (ii) the total dollar amount of tax credits under Section 29 of the Internal Revenue Code available to PSF as a result of sales of synthetic fuel produced by the Facility and sold by PSF during the calendar quarter just ended, regardless of whether PSF uses such tax credits; provided, however, royalty payments shall not be computed on, and no royalty payment shall be due with respect to, sales of synthetic fuel that are in excess of the "Maximum Annual Royalty Tonnage." For purposes of this Agreement, the "Maximum Annual Royalty Tonnage" is achieved in any calendar year whenever the aggregate amount of synthetic fuel produced and sold by the Facility and the Other Facilities in such calendar year equals 1,440,000 tons; provided, however, that if any of the Other Facilities is the subject of a Facility Sub License or Facility Assignment, then the Maximum Annual Royalty Tonnage shall be reduced by 360,000 tons per calendar year for each Other Facility that is the subject of a Facility Sub License or Facility Assignment; provided, further, that if the Facility is the subject of a Facility Sub License or Facility Assignment, royalty payments in any calendar year shall not be computed on, and no royalty payment shall be due with respect to, sales of synthetic fuel produced by the Facility in such calendar year in excess of 360,000 tons without regard to the volume of production and sale of synthetic fuel from the Other Facilities.

Royalty Amount. Within thirty (30) days following the end of each calendar quarter ending March 31, June 30, September 30 and December 31 from and after April 1, 2000, PSF BSF shall pay to Covol quarterly royalty payments in an amount equal to (i) $** multiplied by (ii) the total dollar amount of tax credits under Section 29 of the Internal Revenue Code available to PSF BSF as a result of sales of synthetic fuel produced by the Facility and sold by PSF BSF during the calendar quarter just ended, regardless of whether PSF BSF uses such tax credits; provided, however, royalty payments shall not be computed on, and no royalty payment shall be due with respect to, sales of synthetic fuel that are in excess of the "Maximum Annual Royalty Tonnage." For purposes of this Agreement, the "Maximum Annual Royalty Tonnage" is achieved in any calendar year whenever the aggregate amount of synthetic fuel produced and sold by the Facility and the Other Facilities in such calendar year equals 1,440,000 tons; provided, however, that if any of the Other Facilities is the subject of a Facility Sub License or Facility Assignment, then the Maximum Annual Royalty Tonnage shall be reduced by 360,000 tons per calendar year for each Other Facility that is the subject of a Facility Sub License or Facility Assignment; provided, further, that if the Facility is the subject of a Facility Sub License or Facility Assignment, royalty payments in any calendar year shall not be computed on, and no royalty payment shall be due with respect to, sales of synthetic fuel produced by the Facility in such calendar year in excess of 360,000 tons without regard to the volume of production and sale of synthetic fuel from the Other Facilities.