Common use of Purchase Price of Patents Clause in Contracts

Purchase Price of Patents. The purchase price for the Inventions and Patents shall be Seven Million U.S. Dollars ($7,000,000) payable as follows: a. Initial Payments: Buyer has paid to Seller the amount of $530,560 as follows: I. Buyer stock issued to B.I.E.J.C./ EDCI $ 142,245 2. Subscription receivable from Clores Stand stockholders 196,250 3. Buyer stock issued to Clores 130,000 4. Cash payments to Clores 62,065 Total Initial Payments $ 530,560 b. Additional Payments: Payment of the remaining balance of the purchase price in the amount of Six Million Four Hundred Thousand United States Dollars ($6,470,000) shall be payable solely from the net revenues of Buyer from sale of products ("Patented Products") protected by Patents that have been actually issued by the United States Patent and Trademark Office ("USPTO") and remain in force ("Active Patents"), commencing with net revenues from Patented Products in 2017, with such royalties to be paid for the lesser of (i) 18 years from and after January 1, 2017 or (ii) the remaining life of said Active Patent(s) (the "Royalty Period"). The royalty shall be three percent (3%) of such net revenues from Patented Products. Net revenues for this purpose shall be defined as gross sales of Patented Products less returns.