Common use of Compensation and Royalties Clause in Contracts

Compensation and Royalties. 5.1 In consideration of the license granted herein, Licensee shall pay Licensor an upfront license fee of $5,000,000 USD ("License Fee"). 5.2 The Licensee has exercised an option to acquire the license and has paid $100,000 USD as an option fee. The License Fee payable by the Licensee shall be reduced by the amount of the option fee already paid. 5.3 Upon execution of this Agreement, the Licensee shall pay $300,000 USD toward the License Fee, which shall be non-refundable. 5.4 The remaining balance of the License Fee, after deducting the option fee and the deposit, shall be covered by a loan provided by Cede Capital ("Loan"). The terms and conditions of the Loan shall be set forth in a separate agreement between the Licensee and Cede Capital. 5.5 As collateral for the Loan, Cede Capital shall utilise asset custody services provided by ILOCX to hold the Licensing rights granted to the Licensee under this Agreement. The collateral shall remain with ILOCX until the Loan is fully paid in accordance with the terms of the Loan agreement. 5.6 Until the Loan is fully paid, any sublicensing of the licensed rights by the Licensee shall require the prior approval of Cede Capital. 5.7 The Licensee shall diligently make payments toward the Loan in accordance with the agreed-upon schedule and shall comply with all terms and conditions of the Loan agreement. 5.8 Licensee shall pay a royalty of $1,000 on the sale of each iLamp. 5.9 Licensee shall pay a royalty of 20% on all revenues derived from Power as a Service (PaaS) related to the licensed products. 5.10 Royalties or any other payments received by CPG after the due date shall bear interest at the rate of 18% per annum from the due date or the maximum rate permitted by law, if less than 18%. 5.11 Licensee may request changes to existing website, documents, PDFs, videos, or other work provided by CPG. Requested changes will be subject to compensation at our preferential rate for license partners. Licensee agrees to compensate CPG for any requested work performed by CPG or third parties contracted by CPG. Estimates for the costs can be provided upon request.