Common use of Creditable Payments Clause in Contracts

Creditable Payments. The license maintenance fee for a year may be offset against earned royalty payments due on Net Sales occurring in that year. For example: (A) if Licensee pays Stanford a $10 maintenance payment for year Y, and according to Section 7.10 $15 in earned royalties are due Stanford for Net Sales in year Y, Licensee will only need to pay Stanford an additional $5 for that year’s earned royalties. (B) if Licensee pays Stanford a $10 maintenance payment for year Y, and according to Section 7.10 $3 in earned royalties are due Stanford for Net Sales in year Y, Licensee will not need to pay Stanford any earned royalty payment for that year. Licensee will not be able to offset the remaining $7 against a future year’s earned royalties.

Creditable Payments. The license maintenance fee for a year may be offset against earned royalty payments due on Net Sales occurring in that year. For example: (A) if Licensee Telomolecular pays Stanford a $10 maintenance payment for year Y. and according to Section 7.7 $15 in earned royalties are due Stanford for Net Sales in year Y, Telomolecular will only need to pay Stanford an additional S5 for that year's earned royalties. (B) if Telomolecular pays Stanford a $10 maintenance payment for year Y, and according to Section 7.10 $15 in earned royalties are due Stanford for Net Sales in year Y, Licensee will only need to pay Stanford an additional $5 for that year’s earned royalties. (B) if Licensee pays Stanford a $10 maintenance payment for year Y, and according to Section 7.10 7.7 $3 in earned royalties are due Stanford for Net Sales in year Y, Licensee Y. Telomolecular will not need to pay Stanford any earned royalty payment for that year. Licensee Telomolecular will not be he able to offset the remaining $7 against a future year’s 's earned royalties.