Common use of ROYALTIES AND OTHER CONSIDERATION Clause in Contracts

ROYALTIES AND OTHER CONSIDERATION. 5.1 For the rights, privileges and license granted hereunder, LICENSEE shall pay royalties and other compensation to UNIVERSITY in the manner hereinafter provided to the end of the term of the PATENT RIGHTS or until this Agreement shall be earlier terminated: (a) LICENSEE shall pay to UNIVERSITY on or before thirty (30) days after the EFFECTIVE DATE one half ($7,500) of a nonrefundable initial license fee of fifteen thousand dollars ($15,000) and the balance of $7,500 on or before the first anniversary of the EFFECTIVE DATE. (b) LICENSEE shall pay to UNIVERSITY twenty-five thousand dollars ($25,00O) within thirty (30) days after the FIRST COMMERCIAL SALE in the U.S. (c) LICENSEE shall pay to UNIVERSITY a minimum annual royalty in accordance with the following schedule: (i) $5,000 per year commencing February 10, 2007, increasing to (ii) $7,000 per year on February 10, 2009, and each year thereafter. Such minimum royalty payments shall be offset against University Royalties due during the applicable year. (d) LICENSEE shall pay to UNIVERSITY the following running royalties ("UNIVERSITY Royalties"): (i) 4.0% of NET SALES of up to $1M; (ii) 3.0% of NET SALES greater than $1M, but less than $10M; (iii) 2.0% of NET SALES greater than $10M. Provided, however, that the total royalty payments paid by LICENSEE to UNIVERSITY shall not exceed $20M, and the license granted hereunder shall be royalty free after such amount has been paid. (e) A one-time success payment of $250,000 in the first year that the aggregate Net Sales of LICENSED PRODUCTS exceeds $10M. This payment shall be made in addition to any royalties due.

ROYALTIES AND OTHER CONSIDERATION. 5.1 For the rights, privileges and license granted hereunder, LICENSEE shall pay royalties and other compensation to UNIVERSITY in the manner hereinafter provided to the end of the term of the PATENT RIGHTS or until this Agreement shall be earlier terminated: (a) LICENSEE shall pay to UNIVERSITY on or before thirty (30) days after the EFFECTIVE DATE one half ($7,500) of a nonrefundable initial license fee of fifteen thousand dollars ($15,000) and the balance of $7,500 on or before the first anniversary of the EFFECTIVE DATE. (b) LICENSEE shall pay to UNIVERSITY twenty-five thousand dollars ($25,00O25,000) within thirty (30) days after the FIRST COMMERCIAL SALE in the U.S. (c) LICENSEE shall pay to UNIVERSITY a minimum annual royalty in accordance with the following schedule: (i) $5,000 per year commencing February 10, 2007, increasing to (ii) $7,000 7, 000 per year on February 10, 2009, and each year thereafter. Such minimum royalty payments shall be offset against University Royalties due during the applicable year. (d) LICENSEE shall pay to UNIVERSITY the following running royalties ("“UNIVERSITY Royalties"”): (i) 4.0% of NET SALES of up to $1M; (ii) 3.0% of NET SALES greater than $1M, but less than $10M; (iii) 2.0% of NET SALES greater than $10M. Provided, however, that the total royalty payments paid by LICENSEE to UNIVERSITY shall not exceed $20M, and the license granted hereunder shall be royalty free after such amount has been paid. (e) A one-time success payment of $250,000 in the first year that the aggregate Net Sales of LICENSED PRODUCTS exceeds $10M. This payment shall be made in addition to any royalties due.