Common use of Creditable Payments Clause in Contracts

Creditable Payments. The license maintenance fee for a year may be offset against Running Royalty payments due occurring in that year. For example: (A) if BioVest pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 $15 in Running Royalties are due Stanford for in year Y, BioVest will only need to pay Stanford an additional $5 for that year’s earned royalties. (B) if BioVest pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 $3 in Running Royalties are due Stanford in year Y, BioVest will not need to pay Stanford any Running Royalty payment for that year. BioVest will not be able to offset the remaining $7 against a future year’s Running Royalties.

Creditable Payments. The license maintenance fee for a year may be offset against Running Royalty earned royalty payments due on Net Sales occurring in that year. For example: S00-099:MMM Exclusive Agreement 5/26/2004 (A) if BioVest BioTrove pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 7.3 $15 in Running Royalties earned royalties are due Stanford for Net Sales in year Y, BioVest BioTrove will only need to pay Stanford an additional $5 for that year’s earned royalties. (B) if BioVest BioTrove pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 7.3 $3 in Running Royalties earned royalties are due Stanford for Net Sales in year Y, BioVest BioTrove will not need to pay Stanford any Running Royalty earned royalty payment for that year. BioVest BioTrove will not be able to offset the remaining $7 against a future year’s Running Royaltiesearned royalties.

Creditable Payments. The license maintenance fee for a year may be offset against Running Royalty payments due occurring in that year. For example: (A) if BioVest pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 $15 in Running Royalties are due Stanford for in Printed on: 9/30/2004 at 2:45 PM Page: 3 of 3 year Y, BioVest will only need to pay Stanford an additional $5 for that year’s earned royalties. (B) if BioVest pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 $3 in Running Royalties rRoyalties are due Stanford in year Y, BioVest will not need to pay Stanford any Running Royalty payment for that year. BioVest will not be able to offset the remaining $7 against a future year’s Running Royalties.