Common use of Payment Mechanism Clause in Contracts

Payment Mechanism. All sums due under this Agreement: 4.2.1 are exclusive of Value Added Tax, or similar sales tax, which where applicable will be paid by Nuvectis to University in addition; 4.2.2 shall be paid in US DOLLARS (unless stated otherwise) in cash (cleared funds) by transferring an amount to the bank account as specified by the University in Schedule 11, and in the case of Net Sales generated and Sub-Licensee Revenues received by Nuvectis in a currency other than US DOLLARS, the rate of exchange to be used for converting such other currency into US DOLLARS shall be the average of the exchange rate published in the Wall Street Journal, Western Edition, under the heading “Currency Trading” on the first Business Day of each month in the Quarter. All costs of transmission and currency conversion shall be borne by Nuvectis; 4.2.3 shall be made without deduction of income tax or other taxes charges or duties that may be imposed, except insofar as Nuvectis is required to deduct the same to comply with applicable laws. The Parties shall cooperate and take all steps reasonably and lawfully available to them to avoid deducting such taxes and to obtain double taxation relief. If Nuvectis is required to make any such deduction it shall provide University with such certificates or other documents as it can reasonably obtain to enable University to obtain appropriate relief from double taxation of the payment in question; and 4.2.4 shall be made by the due date, failing which University may charge interest on any outstanding amount from the due date onwards on a daily basis at a rate equivalent to [***] per cent ([***]%) per annum above the Royal Bank of Scotland plc base lending rate then in force in Edinburgh, provided in each case that University has notified Nuvectis in writing of such non-payment.