- 7 -
into an exclusive perpetual license of the new technology if the
new technology was patentable. If CemCom chose to exercise that
option, it would be obligated to make a series of annual royalty
payments (minimum royalty payments) based upon a percentage of
CemCom's cumulative gross revenues but at least $10,950,000.
The payments were due at the following intervals:
Date Minimum Payment
12/31/84 $430,000
6/30/85 430,000
12/31/85 430,000
6/30/86 455,000
12/31/86 455,000
6/30/87 480,000
12/31/87 480,000
6/30/88 505,000
12/31/88 505,000
6/30/89 300,000
12/31/89 300,000
6/30/90 325,000
12/31/90 325,000
6/30/91 350,000
12/31/91 350,000
6/30/92 375,000
12/31/92 375,000
6/30/93 400,000
12/31/93 400,000
6/30/94 425,000
12/31/94 425,000
6/30/95 450,000
12/31/95 450,000
6/30/96 475,000
12/31/96 475,000
6/30/97 500,000
12/31/97 500,000
If the actual computation of the royalty was greater than
the minimum royalty payments, CemCom would be obligated to make
greater royalty payments. If the new technology was not
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011