Regulations of the Operation and Management of National Defense Technology Institutions by Private Entities Article 12

Paragraph (1)The authority-in-charge shall collect the royalty when conducting the commissioned operation in accordance with these Rules.Paragraph (2)The "royalty" referred to in the preceding Paragraph includes the contracting royalty and the operation royalty.Paragraph (3)The "contracting royalty" referred to in the preceding Paragraph means the fixed royalty the Private Entity(ies) shall pay in lump sum when entering into the contract of the commissioned operation. The "operation royalty" means the amount calculated with the agreed percentage in accordance with the annual sales volume of the Private Entity(ies) by operating the National Defense Technology Institutes or the property and facilities, excluding sales resulting from products or services provided to the agency(ies) supervised or governed by the competent authority as well as sales resulting from military goods produced or services provided by the institution commissioned for operation which is to supersede the same originally provided by the institutions or the property and facilities commissioned to the Private Entity(ies) for operation.Paragraph (4)The minimum operation royalty to be collected in each year shall be specified in the contract of the commissioned operation and the amount shall be calculated in accordance with the information set forth in the operation plans provided by the Private Entity(ies) in tender.