Common use of Calculation of Royalties Clause in Contracts

Calculation of Royalties. For purposes of calculating royalties on the Sale of Cutera Combination Products, and Cutera Modules for them, the “Aggregate Net Sales” shall be used, wherein such term shall mean all of the Net Sales attributable to all the components of a particular Cutera Combination Product, i.e., the Cutera Combination Product and all associated Cutera Modules, whether one or more than one Sales were involved. Accordingly, upon each Sale of a Cutera Combination Product, or a Cutera Module associated therewith, the royalties due Palomar shall be calculated or recalculated, as the case may be, as follows: (1) On the first Sale of a Cutera Combination Product, the royalty shall be calculated as provided in the table above on the Net Sales attributable to such Cutera Combination Product (including any Cutera Modules Sold therewith), which shall be the Aggregate Net Sales for such purposes; (2) For a Cutera Combination Product previously Sold, upon the Sale of a Cutera Module to be used with such Cutera Combination Product, the Net Sales from clause (1) above and the Net Sales attributable to such Cutera Module shall be summed to give the Aggregate Net Sales, and the royalty shall be calculated as provided in the table above, with the understanding that the percentage of Aggregate Net Sales to be used to calculate the royalty owed may change if the type of Cutera Combination Product were to change as a result of the Sale of such Cutera Module, and either (A) a credit shall be taken by Cutera if and only to the extent that Cutera has already paid royalties on such Cutera Combination Product (and no other Cutera Product) in excess of the new royalty calculated, or (B) an additional amount shall be paid by Cutera to Palomar for any increase in the royalties owed; and (3) The process in clause (2) above shall be repeated for each Sale of a Cutera Module to be used with such Cutera Combination Product. Exhibit F sets forth examples of calculating royalties owed for the Sale of Cutera Combination Products.

Calculation of Royalties. For purposes of calculating royalties on the Sale of Cutera Combination Products, and Cutera Modules for them, the “Aggregate Net Sales” shall be used, wherein such term shall mean all of the Net Sales attributable to all the components of a particular Cutera Combination Product, i.e., the Cutera Combination Product and all associated Cutera Modules, whether one or more than one Sales were involved. Accordingly, upon each Sale of a Cutera Combination Product, or a Cutera Module associated therewith, the royalties due Palomar shall be calculated or recalculated, as the case may be, as follows: (1) On the first Sale of a Cutera Combination Product, the royalty shall be calculated as provided in the table above on the Net Sales attributable to such Cutera Combination Product (including any Cutera Modules Sold therewith), which shall be the Aggregate Net Sales for such purposes; (2) For a Cutera Combination Product previously Sold, upon the Sale of a Cutera Module to be used with such Cutera Combination Product, the Net Sales from clause (1) above and the Net Sales attributable to such Cutera Module shall be summed to give the Aggregate Net Sales, and the royalty shall be calculated as provided in the table above, with the understanding that the percentage of Aggregate Net Sales to be used to calculate the royalty owed may change if the type of Cutera Combination Product were to change as a result of the Sale of such Cutera Module, and either (A) a credit shall be taken by Cutera if and only to the extent that Cutera has already paid royalties on such Cutera Combination Product (and no other Cutera Product) in excess of the new royalty calculated, or (B) an additional amount shall be paid by Cutera to Palomar for any increase in the royalties owed; and (3) The process in clause (2) above shall be repeated for each Sale of a Cutera Module to be used with such Cutera Combination Product. Exhibit F sets forth examples of calculating royalties owed for the Sale of Cutera Combination Products.

Calculation of Royalties. For purposes of calculating royalties on the Sale of Cutera Laserscope Combination Products, and Cutera Laserscope Modules for them, the “Aggregate Net Sales” shall be used, wherein such term shall mean all of the Net Sales attributable to all the components of a particular Cutera Laserscope Combination Product, i.e., the Cutera Laserscope Combination Product and all associated Cutera Laserscope Modules, whether one or more than one Sales were involved. Accordingly, upon each Sale of a Cutera Laserscope Combination Product, or a Cutera Laserscope Module associated therewith, the royalties due Palomar shall be calculated or recalculated, as the case may be, as follows: (1) On the first Sale of a Cutera Laserscope Combination Product, the royalty shall be calculated as provided in the table above on the Net Sales attributable to such Cutera Laserscope Combination Product (including any Cutera Laserscope Modules Sold therewith), which shall be the Aggregate Net Sales for such purposes; (2) For a Cutera Laserscope Combination Product previously Sold, upon the Sale of a Cutera Laserscope Module to be used with such Cutera Laserscope Combination Product, the Net Sales from clause (1) above and the Net Sales attributable to such Cutera Laserscope Module shall be summed to give the Aggregate Net Sales, and the royalty shall be calculated as provided in the table above, with the understanding that the percentage of Aggregate Net Sales to be used to calculate the royalty owed may change if the type of Cutera Laserscope Combination Product were to change as a result of the Sale of such Cutera Laserscope Module, and either (A) a credit shall be taken by Cutera Laserscope if and only to the extent that Cutera Laserscope has already paid royalties on such Cutera Laserscope Combination Product (and no other Cutera Laserscope Product) in excess of the new royalty calculated, or (B) an additional amount shall be paid by Cutera Laserscope to Palomar for any increase in the royalties owed; and (3) The process in clause (2) above shall be repeated for each Sale of a Cutera Laserscope Module to be used with such Cutera Laserscope Combination Product. Exhibit F sets forth examples of calculating royalties owed for the Sale of Cutera Laserscope Combination Products.

Calculation of Royalties. For purposes of calculating royalties on the Sale of Cutera Combination Products, and Cutera Modules for them, the “Aggregate Net Sales” shall be used, wherein such term shall mean all of the Net Sales attributable to all the components of a particular Cutera Combination Product, i.e., the Cutera Combination Product and all associated Cutera Modules, whether one or more than one Sales were involved. Accordingly, upon each Sale of a Cutera Combination Product, or a Cutera Module associated therewith, the royalties due Palomar shall be calculated or recalculated, as the case may be, as follows: (1) On the first Sale of a Cutera Combination Product, the royalty shall be calculated as provided in the table above on the Net Sales attributable to such Cutera Combination Product (including any Cutera Modules Sold therewith), which shall be the Aggregate Net Sales for such purposes; ; (2) For a Cutera Combination Product previously Sold, upon the Sale of a Cutera Module to be used with such Cutera Combination Product, the Net Sales from clause (1) above and the Net Sales attributable to such Cutera Module shall be summed to give the Aggregate Net Sales, and the royalty shall be calculated as provided in the table above, with the understanding that the percentage of Aggregate Net Sales to be used to calculate the royalty owed may change if the type of Cutera Combination Product were to change as a result of the Sale of such Cutera Module, and either (A) a credit shall be taken by Cutera if and only to the extent that Cutera has already paid royalties on such Cutera Combination Product (and no other Cutera Product) in excess of the new royalty calculated, or (B) an additional amount shall be paid by Cutera to Palomar for any increase in the royalties owed; and and (3) The process in clause (2) above shall be repeated for each Sale of a Cutera Module to be used with such Cutera Combination Product. Exhibit F sets forth examples of calculating royalties owed for the Sale of Cutera Combination Products. (iii) Counting Cutera Modules. With respect to the foregoing table in Section 4.4(c)(i), for purposes of determining the number of Cutera Modules associated with a particular Cutera Combination Product: (1) Each separate Cutera Module shall count as either a Cutera Hair Module or a Cutera Other Module, even if such module may be used for multiple treatment purposes (e.g., a Cutera Other Module that was marketed for treatment of both wrinkles and acne would count as one Cutera Other Module for the tally); and (2) Each Cutera Module may only be associated with a single Cutera Combination Product, even if such Cutera Module is used with more than one Cutera Combination Product, and each Cutera Module shall be associated with that Cutera Combination Product that gives to the greatest extent possible an equal number of each type of Cutera Module to all of the Cutera Combination Products that use such Cutera Module.

Calculation of Royalties. For purposes of calculating royalties on the Sale of Cutera Cynosure Combination Products, and Cutera Cynosure Modules for them, the “Aggregate Net Sales” shall be used, wherein such term shall mean all of the Net Sales attributable to all the components of a particular Cutera Cynosure Combination Product, i.e., the Cutera Cynosure Combination Product and all associated Cutera Cynosure Modules, whether one or more than one Sales were involved. Accordingly, upon each Sale of a Cutera Cynosure Combination Product, or a Cutera Cynosure Module associated therewith, the royalties due Palomar shall be calculated or recalculated, as the case may be, as follows: (1) On the first Sale of a Cutera Cynosure Combination Product, the royalty shall be calculated as provided in the table above on the Net Sales attributable to such Cutera Cynosure Combination Product (including any Cutera Cynosure Modules Sold therewith), which shall be the Aggregate Net Sales for such purposes; (2) For a Cutera Cynosure Combination Product previously Sold, upon the Sale of a Cutera Cynosure Module to be used with such Cutera Cynosure Combination Product, the Net Sales from clause (1) above and the Net Sales attributable to such Cutera Cynosure Module shall be summed to give the Aggregate Net Sales, and the royalty shall be calculated as provided in the table above, with the understanding that the percentage of Aggregate Net Sales to be used to calculate the royalty owed may change if the type of Cutera Cynosure Combination Product were to change as a result of the Sale of such Cutera Cynosure Module, and either (A) a credit shall be taken by Cutera Cynosure if and only to the extent that Cutera Cynosure has already paid royalties on such Cutera Cynosure Combination Product (and no other Cutera Cynosure Product) in excess of the new royalty calculated, or (B) an additional amount shall be paid by Cutera Cynosure to Palomar for any increase in the royalties owed; and (3) The process in clause (2) above shall be repeated for each Sale of a Cutera Cynosure Module to be used with such Cutera Cynosure Combination Product. Exhibit F H sets forth examples of calculating royalties owed for the Sale of Cutera Cynosure Combination Products.