Common use of Royalty Calculations Clause in Contracts

Royalty Calculations. (a) For purposes of this Agreement, “Net Sales” of Licensed Products with respect to a particular period means the amounts that Lombard collects against invoices to Third Parties for sales of Licensed Products listed on Exhibit A and Licensed Products covered by the Jervis Patent, less sales discounts, deductions, transactions costs or adjustments. Without limitation of the foregoing, Net Sales shall include all transfers of Licensed Products to Third Parties that Lombard records as a sale pursuant to generally accepted accounting principles consistently applied. The sales that are denominated in currencies other than U.S. Dollars shall be converted into U.S. Dollars based on the daily exchange rates listed in the Wall Street Journal for the last day of the Half Year period in which such sales occurred, or on such other basis to which the parties may hereafter mutually agree in writing.