Common use of Payments to Licensor Clause in Contracts

Payments to Licensor. In consideration of the aforesaid LICENSE GRANT and as a condition of its continuation in force, LICENSEE shall make the following payments to LICENSOR: 1. An initial non-refundable payment upon execution of this Agreement of thirty thousand (30,000) shares of the common stock of LICENSEE which is traded on NASDAQ, said shares to be included in a registration statement to be filed with the U.S. Securities and Exchange Commission (SEC) at the earliest practical time, presently estimated to be within thirty (30) days of the date hereof, said shares to have a value of at least $US30, 000 on the date of execution of this License Agreement; 2. A non-refundable payment of $US35, 000.00 to Elbit Systems Ltd. as per the assignment document set forth in Annex A hereto; and 3. In respect of each LICENSED PRODUCT sold by LICENSEE or any sublicensee, royalties as follows: 3% (Three Percent) of the GROSS SALES PRICE of LICENSED PRODUCTS for sales of LICENSED PRODUCTS of up to $US50 million per calendar year; and 1 (One Percent) of the GROSS SALES PRICE of LICENSED PRODUCTS for sales of LICENSED PRODUCTS in excess of $US50 million per calendar year. The royalty payments under this subparagraph will be paid twice a year, one month following both June 30 and December 31 of each year, in respect of the proceeding six month calendar period. LICENSEE will provide LICENSOR before February 1 of each year with a full statement of all LICENSED PRODUCTS which were sold prior to January 1 of such year and at the same time will pay the balance of the royalties due for all LICENSED PRODUCTS sold. The statement will be certified by LICENSEE'S auditor.