Common use of Royalty Reports and Payments Due Clause in Contracts

Royalty Reports and Payments Due. The royalty payments described in Section 8.3 hereof shall be paid by Vertical to Argent on a calendar quarter basis as follows: 8.4.1 Vertical shall pay each Actual Royalty Payment not later than forty-five (45) days following the close of each calendar quarter during the Term hereof. For the avoidance of doubt, the first Actual Royalty Payment for the Products will be due and payable not later than forty-five (45) days following the close of the calendar quarter during which the date of first commercial sale for any of the Products to a Customer occurs in the Territory. The first royalty report shall include all Products sold up to, and including, the last day of the calendar quarter for which the royalty report is being given. Each royalty report shall include all written documentation supporting Vertical’s determination of Net Sales upon which the royalty of Section 8.3.1 above has been calculated. 8.4.2 In the event that Vertical is obligated to pay Argent a Supplemental Royalty Payment hereunder, then Vertical shall pay the required Supplemental Royalty Payment not later than forty-five (45) days following the close of the twelve (12) month period for which a Minimum Annual Royalty is applicable and owed to Argent hereunder.