Article 6.
Payment
1. In consideration of
the Technical
Information and the
Industrial Property
Rights furnished by
Licensor to Licensee
hereunder, Licensee
shall pay to Licensor
the following royalties
in the amount and in the
manner specified below.
(a) Initial Payment
Licensee shall pay
Licensor the initial
payment in (currency)
equivalent to ( ),
Payment of the Initial
Payment shall be made by
means of ( ) remittance
within ( ) days from the
date of approval of this
Agreement by the
authorities concerned
(country).
(b) Royalty
( ) percent of net
selling price for each
sale of the Licensed
Products.
(c) Net selling price
shall be the gross
invoice price of the
Licensed Products sold
or otherwise disposed of
by Licensee in normal,
bona fide, commercial
transaction without any
deduction other than the
following items of
expenses, if any, to the
extent to which they are
actually paid and
included in the gross
invoice price.
(1) Sales discount
(2) Sales returned
(3) Indirect taxes on
sales
(4) Insurance premium on
sales
(5) Packing expenses on
sales
(6) Transport expenses
on sales
(7) Sales commissions
(8) Advertisement fee
(9) Installation
expenses at places where
the Licensed Products
are to be used.
(10) CIF price, and
import duties of the raw
materials, intermediate
goods, parts and other
components purchased
from Licensor.
2. For the supervision
and assistance by
Licensor under paragraph
3 of Article 4, Licensee
shall pay to Licensor
service fees at the
rates specified in
Appendix ( ) within ( )
days after receipt of an
invoice from Licensor.
3. All payments due
under this Article shall
be made in (currency)
strictly in accordance
with this article.
4. All payments made to
Licensor hereunder shall
be by means of ( ) in (
) in the name of
Licensee and shall be
remitted to the bank
designated by Licensor. |