Common use of Combination Sales Clause in Contracts

Combination Sales. If BioTrove sells a Licensed Product or Products in combination with other products which are not Licensed Products (“Other Items”), the Net Sales for purposes of determining Royalty payments on the combination product shall be calculated as follows: S00-099:MMM Exclusive Agreement 5/26/2004 (A) If all Licensed Products and Other Items contained in the combination are available separately, the Net Sales for purposes of the royalty payments will be calculated by multiplying the Net Sales of the combination by the fraction A/A+B, where A is the selling price of all Licensed Products in the combination, and B is the selling price of all Other Items in the combination. (B) If the combination includes Other Items which are not sold separately (but all Licensed Products are available separately), the Net Sales for purposes of royalty payments will be calculated by multiplying the Net Sales of the combination by A/C, where A is defined above and C is the selling price of the combination. (C) If neither the Licensed Products nor the Other Items contained in the combination are sold separately, the Net Sales for the purpose of calculating the royalty payments will be calculated by multiplying the Net Sales of the combination by the fraction D/D+E, where D is the Cost of all Licensed Products in the combination and E is the Cost of all Other Items in the combination. (D) As used herein, “Cost” means standard fully-absorbed cost arrived at using the standard accounting procedures of Licensee in accordance with generally-accepted accounting practices