Common use of Sublicense Fees and Royalties Clause in Contracts

Sublicense Fees and Royalties. (a) Licensee shall pay to Licensor thirty five percent (35%) of any lump sum fee that is not an earned royalty, including but not limited to any fixed fee, license fee, milestone payment, unearned portion of any minimum royalty payment, equity, joint marketing fee, intellectual property cross license, research and development funding in excess of Licensee’s cost of performing such research and development, and any other property, consideration, or thing of value given or exchanged for a sublicense regardless of how the Licensee and Sublicensee characterize such payments or consideration (collectively, “Sublicense Income”). Once Licensee has raised over ten million dollars ($10M) in funding or five years have passed from the Effective Date, whichever occurs first, the sublicensing rate in this Section 4.5(a) shall decrease from thirty five percent (35%) to fifteen percent (15%).

Sublicense Fees and Royalties. (a) Licensee shall pay to Licensor thirty five percent (35%) of any lump sum fee that is not an earned royalty, including but not limited to any fixed fee, license fee, milestone payment, unearned portion of any minimum royalty payment, equity, joint marketing fee, intellectual property cross license, research and development funding in excess of Licensee’s cost of performing such research and development, and any other property, consideration, consideration or thing of value given or exchanged for a sublicense regardless of how the Licensee and Sublicensee characterize such payments or consideration (collectively, “Sublicense Income”). Once Licensee has raised over ten million dollars ($10M) in funding or five years have passed from the Effective Date, whichever occurs first, the rate sublicensing rate in this Section 4.5(a) shall decrease from thirty five percent (35%) % to fifteen percent (15%).