Common use of Royalty Calculation Clause in Contracts

Royalty Calculation. (a) In payment for the licenses, rights, and releases granted hereunder to WS and its RELATED COMPANIES by LUCENT GRL, WS shall pay a license fee payable in warrants in the form of a grant to Lucent-GRL of five hundred thousand (500,000) shares of WS' Series F Preferred Stock at a price of one United States cent (US $0.01) per share. Such warrants shall be in the form attached hereto as Appendix B. The warrants are granted to Lucent-GRL as of EXECUTION, also referred to hereinafter as the "Grant Date", which shall not be later than September 30, 2000. Such warrants may be exercised at any time. (b) In addition to any consideration provided in Section 2.01(a) above, in the event WS' including any of its RELATED COMPANIES' total combined gross cumulative revenue (FAIR MARKET VALUE) attributable to the of the sale or use of CASCADED FUSED FIBER COUPLERS and/or MACH ▇▇▇▇▇▇▇ INTERFEROMETERS, exceeds * (hereinafter referred to as the "Royalty Accrual Level"), then royalty shall accrue and be payable to LUCENT GRL, at the applicable rate of * on each CASCADED FUSED FIBER COUPLER and/or MACH ▇▇▇▇▇▇▇ INTERFEROMETER which is sold, leased or put into use by WS, or any of its RELATED COMPANIES after attainment of such Royalty Accrual Level. Such royalty rate shall be applied, except as otherwise provided in this Article II, to the FAIR MARKET VALUE of such CASCADED FUSED FIBER COUPLERS and/or MACH ▇▇▇▇▇▇▇ INTERFEROMETERS. For purposes of this Section 2.01(b) the total combined gross cumulative revenue shall include revenues made prior to the Effective Date of this Agreement. (c) In addition to any consideration provided in Section 2.01(a) above, in the event WS' including any of its RELATED COMPANIES' total combined gross cumulative revenue (FAIR MARKET VALUE), attributable to the sale or use of PLANAR LIGHTWAVE CHIPS and/or OTHER OPTICAL DEVICES/SERVICES, exceeds * (hereinafter referred to as the "Royalty Accrual Level"), then royalty shall accrue and be payable to LUCENT GRL, at the applicable rate of * on each PLANAR LIGHTWAVE CHIP and/or OTHER OPTICAL DEVICES/SERVICES which is sold, leased or put into use by WS, or any of its RELATED COMPANIES after attainment of such Royalty Accrual Level. Such royalty rate shall be applied, except as otherwise provided in this Article II, to the FAIR MARKET VALUE of such PLANAR LIGHTWAVE CHIPS. For purposes LUCENT GRL CONFIDENTIAL * Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respected to the omitted portions. ▇▇ ▇▇▇▇▇ ▇▇▇-▇▇▇ - ▇▇▇▇▇▇ of this Section 2.01(c) the total combined gross cumulative revenue shall include revenues made prior to the Effective Date of this Agreement.