Common use of Royalties and Payment Terms Clause in Contracts

Royalties and Payment Terms. 4.1 CONSIDERATION FOR GRANT OF RIGHTS. (a) LICENSE ISSUE FEE AND PATENT COST REIMBURSEMENT. COMPANY shall pay to M.I.T. on the EFFECTIVE DATE a license issue fee of [**] dollars ($[**]). This payment is nonrefundable. (b) LICENSE MAINTENANCE FEES. COMPANY shall pay to M.I.T. the following license maintenance fees on the dates set forth below: [**] and each [**] every year through [**] $ [**] [**] $ [**] [**] $ [**] and each [**] every year thereafter $ [**] This annual license maintenance fee is nonrefundable; however, the license maintenance fee may be credited to running royalties subsequently due on NET SALES earned during the same calendar year, if any. License maintenance fees paid in excess of running royalties due in such calendar year shall not be creditable to amounts due for future years.