UNITED STATES DEPARTMENT OF ENERGY WASHINGTON, D.C. 20585 NONEXCLUSIVE PATENT LICENSE
EXHIBIT 10.34
XXXXXX XXXXXX XXXXXXXXXX XX XXXXXX
XXXXXXXXXX, X.X. 00000
XXXXXXXXXX, X.X. 00000
NONEXCLUSIVE PATENT LICENSE
This LICENSE made this 7th day DECEMBER, 2006, by and between the United
States of America, as represented by the United States Department of Energy
(hereinafter “LICENSOR” or “DOE”) and USEC Inc. (hereinafter called “LICENSEE”).
(Each of the LICENSOR and the LICENSEE a “Party” and collectively the “Parties”.)
ADDRESS OF LICENSEE:
|
0000 Xxxxxxxxx Xxxxx | |
| Xxxxxxxx, XX 00000 | ||
LICENSED INVENTIONS:
|
Inventions owned by DOE or in which DOE has the right to license or otherwise grant the right to use that were made or conceived by DOE employees or by DOE contractor or subcontractor employees under contracts or subcontracts awarded by DOE or by its Oak Ridge, Tennessee facilities contractors, that pertain to the enrichment of uranium using gas centrifuge technology, including the design and fabrication of gas centrifuge machines and related systems. See Exhibit A, List of LICENSED INVENTIONS. If either Party becomes aware of additional inventions owned by DOE that pertain to gas centrifuge technology or systems related thereto that LICENSEE may desire to use for enriching uranium using gas centrifuge technology, DOE agrees to take reasonable steps to add those inventions to this LICENSE, subject to any licenses that may exist for those inventions. | |
LICENSE TERM:
|
This LICENSE shall be effective upon the execution of this LICENSE by both Parties and shall terminate upon the (i) termination or expiration of the DOE lease for facilities used by the LICENSEE for its centrifuge plant and return of such facilities to DOE or, if LICENSEE utilizes the LICENSED INVENTIONS on property not leased from DOE, then upon |
| termination of operations and completion of decontamination and decommissioning of the facility utilizing the LICENSED INVENTIONS; (ii) upon the expiration of all patents on LICENSED INVENTIONS; or (iii) as provided by Paragraph 15 hereto, whichever is earlier. This LICENSE shall be conditioned on LICENSEE’s acquiring and maintaining a License from the Nuclear Regulatory Commission for the operation of a gas centrifuge facility. To the extent LICENSEE wants to extend the term of this LICENSE, a grant of an extension will not be withheld unreasonably. | ||
SCOPE OF LICENSE:
|
Nonexclusive license for LICENSEE’s use or manufacture (or use or manufacture on the LICENSEE’s behalf) of the LICENSED INVENTIONS for the enrichment of uranium in the U.S., or the sale of enriched uranium products, and using the LICENSED INVENTIONS in accordance with the Advanced Technology Demonstration and Deployment milestones contained in Article 3 of the June 17, 2002 Agreement Between DOE and LICENSEE (the “June 17, 2002 Agreement”). |
WITNESSETH:
WHEREAS: LICENSOR is the owner of or has the right to grant a license
in the above-identified LICENSED INVENTIONS.
WHEREAS: LICENSEE desires to obtain a nonexclusive license in the
above-identified LICENSED INVENTIONS.
WHEREAS: The licensing of said LICENSED INVENTIONS under the terms provided
herein is determined to be in the public interest and is in accordance with
the policy of the regulations on licensing of government-owned inventions, 37
C.F.R. Part 404, as promulgated under the authority of Section 208 of Pub. L.
96-517, (35 U.S.C. 208) and 10 C.F.R. Part 781.
NOW, THEREFORE, in consideration of the foregoing premises and of the
mutual covenants and obligations hereinafter contained, and other good and
valuable consideration, the Parties hereto agree as follows:
2
1. LICENSOR hereby grants to LICENSEE and LICENSEE hereby accepts, subject to the terms and
conditions herein recited, a non-exclusive license to the LICENSED INVENTIONS (as specified herein)
for the LICENSE TERM (as specified herein) solely for the purposes specified by the SCOPE OF
LICENSE.
2. LICENSEE agrees to carry out the plan for development, using and/or marketing of the LICENSED
INVENTIONS as provided for in the June 17, 2002 Agreement, and thereafter to continue to make the
benefits of the LICENSED INVENTIONS reasonably accessible to the public through the production
and/or sales of uranium enrichment or enriched uranium products utilizing the LICENSED INVENTIONS.
3. For the sole purpose of operating facilities within the U.S. and in accordance with the June 17,
2002 Agreement, this LICENSE may extend to subsidiaries that are controlled by the LICENSEE, but it
is not assignable or otherwise transferable without approval of LICENSOR in writing, which approval
will not be withheld unreasonably. No request will be approved unless, at a minimum, the assignee
or transferee is a U.S. company that is a successor of that part of
the LICENSEE’s business to
which the LICENSED INVENTIONS pertain, and the U.S. Company meets applicable FOCI, security
clearance, and facility clearance requirements. If LICENSEE extends this LICENSE to a subsidiary,
LICENSEE shall promptly notify the LICENSOR in writing. Subject to
LICENSOR’s approval in writing,
LICENSEE may grant sublicenses in the LICENSED INVENTIONS.
4. LICENSEE agrees that any centrifuge machines and major components thereof embodying the LICENSED
INVENTIONS or produced through the use of the inventions will be manufactured substantially in the
United States and that any enrichment of uranium performed using centrifuge machines embodying the
LICENSED INVENTIONS will be performed in the U.S.
5. LICENSEE shall submit periodic written reports, annually within 30 days of the anniversary date
of this LICENSE, and such other reports as reasonably requested by the LICENSOR, on its efforts to
bring the LICENSED INVENTIONS to a point of practical application, with particular reference to the
Milestones set forth in the June 17, 2002 Agreement, and the extent to which the LICENSEE
thereafter continues to make the benefits of the inventions reasonably accessible to the public.
Subject to compliance with this paragraph, LICENSEE may satisfy these reporting requirements
through the reporting requirements in Article 3 of the June 17, 2002 Agreement with a copy to
LICENSOR pursuant to Paragraph 18 of this LICENSE.
6. ROYALTY PROVISIONS:
The LICENSEE agrees to pay to the LICENSOR the royalty amount specified in Exhibit B hereto.
At the request of the LICENSEE, LICENSOR will consider in good faith a request by LICENSEE to
modify the royalty payments due under this LICENSE based
3
on a substantial change in business or market conditions. Additionally, upon written request by
USEC, not later than sixty days before royalty payments become due and payable, DOE may approve a
request to adjust the royalties due under the LICENSE in any given year: (1) where third parties
assert a claim for patent infringement against USEC, the alleged infringement necessarily arises
out of the practice of the DOE-owned licensed inventions and USEC incurs costs in defending against
such claim; or (2) where USEC owes royalties to third parties for use of third party-owned patents
that are necessary for the practice of the DOE-owned licensed inventions. Except as provided in
this Section 6 there shall be no other royalty, fee, or other charge or cost due or payable by
LICENSEE for this LICENSE or for the use of the LICENSED INVENTIONS or data provided under this
LICENSE.
7. LICENSEE shall pay to LICENSOR, on or before April 1 of each year, any royalty or other payments
due and payable under this Agreement for use of the LICENSED INVENTIONS during the preceding
calendar year. LICENSEE shall keep true books of account containing an accurate record of all data
necessary for the computation of any fees payable under this LICENSE, and shall render to LICENSOR
annually, on or before April 1 of each year, an accurate statement of performance under the
LICENSE, whether or not royalties, other than the annual fees, are due and payable under the
LICENSE. Such a statement shall be in writing, showing in reasonable detail the identification of
SWU produced using the LICENSED INVENTIONS and sold during the previous year. The statement shall
include the computation of the license fees and royalties due and payable. LICENSEE shall from time
to time permit the LICENSOR, by its authorized representative, to examine the books of account of
LICENSEE to such an extent as may be reasonably necessary for LICENSOR to determine the accuracy of
any such statement.
8. LICENSEE shall promptly report to LICENSOR any change in mailing address, name, or company
affiliation during the period of this LICENSE, and LICENSEE shall promptly report any decision to
discontinue producing enriched uranium or providing uranium enrichment using centrifuge machines
embodying the LICENSED INVENTIONS in the U.S.
9. LICENSOR makes no warranty or representation as to the validity or patentability of any LICENSED
INVENTIONS or that the exercise of this LICENSE will not result in the infringement of any
patent(s), nor shall LICENSOR assume any liability whatsoever resulting from the exercise of this
LICENSE.
10. LICENSOR makes no representations, extends no warranties of any kind, either express or
implied, and assumes no responsibilities whatever with respect to manufacture, use, sale, or other
disposition by LICENSEE, or its vendees or transferees, of products incorporating or made by use of
LICENSED INVENTIONS.
11. LICENSEE will indemnify and hold harmless LICENSOR for any liability arising
4
from activity under this LICENSE by LICENSEE, its agents, employees or contractors at any tier. In
the event of any inconsistency between this indemnification provision and any provision in the
lease by the LICENSEE of the DOE facilities used by the LICENSEE for its centrifuge plant using the
LICENSED INVENTIONS then the provisions of the lease will govern.
12. The grant of this LICENSE or anything related thereto shall not be construed to confer on any
person any immunity from or defenses under the antitrust laws or from a charge of patent misuse,
and the acquisition and use of rights pursuant to this LICENSE shall not be immunized from the
operation of State or Federal law by reason of the source of the grant.
13. Nothing contained in this LICENSE shall be interpreted to give to LICENSEE any rights with
respect to any invention(s) other than the LICENSED INVENTIONS.
14. If the LICENSE involves application(s) for Letters Patent, LICENSOR makes no representation or
warranty that Letters Patent will issue on such patent application(s).
15. Subject to the notice and cure provisions in Paragraphs 17 and 20, this LICENSE may be
terminated by LICENSOR in whole or in part (a) if DOE determines that LICENSEE is not complying
with Article 3 of the June 17, 2002 Agreement, and that, in accordance with the terms of the June
17, 2002 Agreement DOE terminates the June 17, 2002 Agreement, (b) for failure to make any payments
or periodic reports required by this LICENSE, (c) for willfully making a false statement or willful
omission of a material fact in the LICENSE application which resulted in this LICENSE or in any
required report, (d) for substantial breach of any covenant or agreement contained herein, or (e)
if DOE determines that such action is necessary to meet requirements for public use as specified by
Federal regulations issued after the date of this LICENSE, and such requirements are not reasonably
satisfied by the LICENSEE. The Parties agree that the construction and operation of a uranium
enrichment facility in accordance with the June 17, 2002 Agreement reasonably satisfy the
requirements for public use.
16. This LICENSE is contingent on LICENSEE having a valid authorization to have access to
Classified Information. It is LICENSEE’S duty to safeguard all Classified Information, special
nuclear material (SNM), and Unclassified Controlled Nuclear Information (UCNI) in compliance with
applicable laws and regulations. LICENSEE shall, in accordance with applicable DOE or NRC security
regulations and requirements, be responsible for safeguarding all Classified Information, UCNI, and
for protection against sabotage, espionage, loss and theft, of the classified documents and
material in LICENSEE’S possession in connection with the performance of work under this License.
Except as otherwise expressly provided, LICENSEE shall, upon termination of the June
17, 2002 Agreement, or upon permanent cessation of the operations of any facility that
incorporates the LICENSED INVENTIONS, transmit to DOE or dispose in accordance
with applicable DOE or NRC regulations any classified matter or UCNI in the
LICENSEE’S possession or in the possession of any person under LICENSEE’S control
5
in connection with performance under this LICENSE. Failure to comply with applicable laws and
regulations governing the safeguard of classified information, SNM, or UCNI may result in
termination of this LICENSE.
17. Before terminating this LICENSE, in whole or in part, for any cause, LICENSOR shall furnish
LICENSEE a written notice of LICENSOR’S intention to terminate this LICENSE, with reasons
therefore, and LICENSEE shall be allowed sixty (60) days from the date of the mailing of such
notice to remedy any breach of any term or condition referred to in the notice, or to show cause
why the LICENSE should not be so terminated.
18. Notices. In order to be effective, any notice, demand, offer, response, request or other
communication made with respect to this LICENSE must be in writing and signed by the Party
initiating the communication and must be hand-delivered or sent by registered letter, telefax or by
a recognized overnight delivery service that requires evidence of receipt, to the addresses
specified herein for the other Party. The effective date of any communication shall be the date of
the receipt of such communication by the addressee.
Notices shall be sent to:
For the LICENSOR:
Office of the Assistant General Counsel
for Technology Transfer
and Intellectual Property
U.S. Department of Energy
0000 Xxxxxxxxxxxx Xxx., X.X.
Xxxxxxxxxx, XX 00000
for Technology Transfer
and Intellectual Property
U.S. Department of Energy
0000 Xxxxxxxxxxxx Xxx., X.X.
Xxxxxxxxxx, XX 00000
Fax: (000) 000-0000
6
For the LICENSEE:
Fax:(000)000-0000
The Parties have the right to change the place to which notices or communications are sent or
delivered by similar notice sent or delivered to the other Party.
19. In the event of any judicial or administrative proceeding challenging the validity or
patentability of LICENSED INVENTIONS, LICENSOR shall promptly provide notice thereof to LICENSEE.
LICENSEE and LICENSOR shall, within thirty (30) days of said notice, mutually agree on an
appropriate level of cost-sharing of direct and indirect expenses that may be involved in
participating in defending the validity of LICENSED INVENTIONS. If mutual agreement cannot be
reached within said thirty day period, LICENSEE, at its option, may undertake any action in defense
of the validity of the LICENSED INVENTIONS at its own expense and, at LICENSEE’S request, LICENSOR
agrees to cooperate with LICENSEE in such actions, subject to the reimbursement by LICENSEE of all
LICENSOR’S costs incurred at the request of LICENSEE. If mutual agreement cannot be reached as to
cost sharing and LICENSEE does not take action to defend the validity, then LICENSOR may take any
action at its discretion concerning the subject matter thereof, including allowing the LICENSED
INVENTIONS to lapse.
20. LICENSEE has a right to appeal, in accordance with procedures specified in 10 CFR 781, any
decision concerning the modification or termination, in whole or in part, of this LICENSE.
21. LICENSEE may terminate this LICENSE, after the first or any subsequent anniversary date of this
LICENSE, upon not less than sixty (60) days prior written notice to the LICENSOR.
22. LICENSEE is responsible for compliance with all applicable Federal, state and local regulatory
requirements, including, without limitation, compliance with U.S. Export Control statutes and
regulations.
23. To the extent practicable, LICENSEE shall xxxx all licensed products in accordance
with the statutes of the United States relating to the marking of patented articles (35
U.S.C. 287) as applicable.
7
24. In addition, to the extent consistent with security and classification requirements
and restrictions, and subject to any access permit requirements and compliance with its terms,
LICENSOR grants to LICENSEE the right to reproduce, modify and use technical data related to the
gas centrifuge technology for uranium enrichment applications owned by DOE or in which DOE has the
right to license or otherwise grant the right to use.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date and year first written
above.
| UNITED STATES DEPARTMENT OF ENERGY |
||||
| BY: | 
|
|||
| Xxxx X. Xxxxxxxx | ||||
| Assistant General counsel for Technology Transfer and Intellectual Property |
||||
WITNESS:
|
||
|
| USEC, Inc.: |
||||
| BY: | 
|
|||
| Xxxxxxx X. Xxxxxx | ||||
| Senior Vice President American Centrifuge and Russian HEU |
||||
WITNESS:
|
||
|
8
Exhibit A
LICENSED INVENTIONS
LICENSED INVENTIONS
| DOE CASE FILE NO. | ||
| (S-NUMBER) | TITLE OF INVENTION | |
27604
|
Baffle for Gas Centrifuges | |
27701
|
Baffle Rotor Assembly for Gas Centrifuge | |
30005
|
Magnetic Suspension of Centrifuge Rotors | |
30824
|
Centrifuge Drive System | |
31130
|
Supercritical Centrifuge Bearing System | |
31133
|
Improved Baffle for Gas Centrifuge | |
31607
|
Damping System for Gas Centrifuge | |
32496
|
Subcritical and Supercritical Gas Centrifuge Drive System and Method | |
33393
|
Damper-suspension System for Centrifuge | |
34064
|
Cut-control System for Gas Centrifuge | |
34622
|
Suspension System for Supercritical Centrifuge | |
34623
|
Damped Suspension System for Centrifuge | |
35429
|
Improved End Cap for Centrifuges | |
36433
|
Rotor Assembly for Gas Centrifuge | |
36453
|
End Cap-baffle Assembly for Gas Centrifuge | |
38691
|
Rotor Assembly for Gas Centrifuge | |
39555
|
High Speed End Closure for Gas Centrifuge Rotor Tube | |
39571
|
Damper Suspension System for High-speed Gas Centrifuge | |
40315
|
Gas Removal System for Gas Centrifuge | |
40321
|
Damped-suspension System for Gas Centrifuge | |
42323
|
Gas Centrifuge | |
42366
|
Top Bearing for Gas Centrifuge Rotor | |
42981
|
Process Gas Control System for Gas Centrifuge | |
43729
|
Cut-control System for Gas Centrifuge |
Page 1 of 5
Exhibit A
LICENSED INVENTIONS
LICENSED INVENTIONS
| DOE CASE FILE NO. | ||
| (S-NUMBER) | TITLE OF INVENTION | |
43732
|
Gas Centrifuge Drive System | |
43775
|
Cascade Arrangement for Gas Centrifuge | |
43786
|
Top Suspension for Gas Centrifuge Rotor | |
44149
|
Suspension System for Gas Centrifuge | |
44199
|
Damped Suspension System for Centrifuge | |
45124
|
Gas Centrifuge | |
45162
|
Gas Centrifuge Seal | |
45188
|
Centrifuge Malfunction Detection System | |
45190
|
Bottom Suspension System for Gas Centrifuge | |
00000
|
Xxxxxx and Apparatus for Producing End Closures for Gas Centrifuge | |
45192
|
Tube Fabrication Facility | |
45194
|
Gas Centrifuge | |
45711
|
Gas Centrifuge End Cap Assembly | |
45716
|
Vacuum Seal | |
45741
|
Damped Suspension System for Centrifuge | |
45759
|
Gas Centrifuge Having Improved Operating Characteristics | |
46508
|
Gas Centrifuge Mount | |
46509
|
Method of Operating Gas Centrifuges to Provide Improved Separative Capacity | |
46538
|
Suspension System for Gas Centrifuge | |
47104
|
Centrifuge Malfunction Detection System | |
47134
|
Gas Centrifuge Scoop Assembly | |
47893
|
End Cap and Baffle Configuration for a Gas Centrifuge | |
49065
|
Suspension System for Centrifuge | |
50033
|
Top Suspension for Gas Centrifuge Rotor |
Page 2 of 5
Exhibit A
LICENSED INVENTIONS
LICENSED INVENTIONS
| DOE CASE FILE NO. | ||
| (S-NUMBER) | TITLE OF INVENTION | |
52973
|
Lower Suspension System for Gas Centrifuge | |
56316
|
Means for Increasing Separative Capacity of Gas Centrifuge | |
56557
|
Rotor Tube/for Gas Centrifuge | |
57541
|
Scoop-development Apparatus for Gas Centrifuges | |
58549
|
Gas Centrifuge Baffle Structure and Method for Making Same | |
00000
|
Xxxxxx for Increasing the Separative Performance of a Gas Centrifuge | |
59959
|
Lower Suspension Vapor Seal for Gas Centrifuge |
LICENSOR has related technology, other than LICENSED INVENTIONS, in the form of
invention disclosures for which patent protection was not pursued, and in the
form of patent applications that were abandoned during prosecution, that are
listed below. LICENSEE may utilize that technology within the scope of activity
under this LICENSE.
| DOE CASE FILE NO. | ||
| (S-NUMBER) | TITLE OF INVENTION | |
23190
|
Application of the Gas Centrifuge as an Instrument | |
24899
|
Ultra Fast Freezing of Centrifuge Particles | |
25933
|
Dipolar-seal Centrifuge Rotor | |
25981
|
Seal for Centrifuge | |
27607
|
Centrifuge Core | |
27736
|
Ultracentrifuge for Liquids | |
30099
|
Seal for Low-speed Liquid Centrifuges | |
30805
|
Centrifuge Instrumentation for Registering | |
30815
|
Upper Damped Bearing for High Speed Centrifuges | |
30827
|
Damper Mechanism for Gas Centrifuge | |
30869
|
Semicontinuous Flow Centrifuge Rotor |
Page 3 of 5
Exhibit A
LICENSED INVENTIONS
LICENSED INVENTIONS
| DOE CASE FILE NO. | ||
| (S-NUMBER) | TITLE OF INVENTION | |
00000
|
Xxxxxx for Lining a Centrifuge Rotor | |
31602
|
Band-scanner for Liquid Centrifuges | |
32428
|
Centrifuge for Saline Water Purification | |
32466
|
Interferometer for the Measurement of Sedimentation in an Ultracentrifuge | |
34602
|
Multi-shell High Speed Centrifuge | |
34640
|
Scoop-positioner for Gas Centrifuge | |
36446
|
Centrifuge Rotor Axial | |
36447
|
Modal Balancing Supercritical Centrifuge Rotors | |
37236
|
High-speed End Closure for Gas Centrifuge Rotor Tube | |
39519
|
Centrifuge Rotor and Method Fabrication | |
45178
|
Apparatus for Manufacture of Centrifuge Rotors | |
45179
|
Gas Centrifuge Rotor | |
45717
|
Tube Cutter | |
46552
|
Apparatus | |
46553
|
Centrifuge Arrangement | |
46559
|
Cascade Design for Asymetrically Operating Gas Centrifuge | |
47814
|
Centrifuge Balance | |
47816
|
Centrifuge/cascade Control System | |
49057
|
Sample Collection Ring for a Multisample Centrifuge | |
52159
|
Gas Centrifuge Design | |
52995
|
Centrifuge Center Support | |
54055
|
Dynamic Controller for Centrifuge | |
54898
|
Method for Improving Seismic Capability of Centrifuge Machines | |
56507
|
Countercurrent Flow Generation in a Gas Centrifuge | |
56512
|
Centrifuge Rotor |
Page 4 of 5
Exhibit A
LICENSED INVENTIONS
LICENSED INVENTIONS
| DOE CASE FILE NO. | ||
| (S-NUMBER) | TITLE OF INVENTION | |
56542
|
Proposed Method of Reducing Centrifuge Cap Stress | |
56545
|
Proposed Method of Increasing the Separative Power of Gas Centrifuges | |
56546
|
Proposed Method for Measuring Centrifuge Motor Cap | |
58017
|
Gas Centrifuge Xxxxxx Signal Simulator | |
59975
|
Centrifuge Rotor Repair Device | |
60527
|
Light Gas Removal System for Operating Gas Centrifuge Machines | |
60902
|
Gas Extractor for a Gas Centrifuge (Livermore) | |
61173
|
Safety Pressure-relief Device for Centrifuges | |
61830
|
Vertical Travel Linkage System for Gas Centrifuges | |
61856
|
Design for Centrifuge Rotor End Caps | |
61876
|
Direction of Rotating Verification Technique for Gas Centrifuge Machines | |
62535
|
Improved Gas Centrifuge Drive Mechanism | |
63508
|
Improved Rotor Design for Advanced Gas Centrifuge Machines | |
63533
|
Centrifuge Fabrication Method | |
00000
|
Xxxxxxxxxxx Xxxxx for Gas Centrifuge | |
65929
|
Process Gas Seal for Centrifuge Machine |
Page 5 of 5
Exhibit B
Royalty Payments
Royalty Payments
1. Definitions
The following terms when capitalized and used in this LICENSE shall have the meanings
specified below:
“Gas Centrifuge Annual Gross Revenue” shall mean the gross revenues (excluding any taxes) resulting
from sales of Separative Work Units (SWU) production from an American Centrifuge Plant and any
other SWU production resulting from LICENSEE‘S use of the LICENSED INVENTIONS during the calendar
year. For clarification, the following SWU amounts would not be included (i) SWU produced
using the gaseous diffusion process; (ii) SWU purchased by LICENSEE under the Russian HEU agreement
or from third parties; (iii) SWU obtained from HEU; (iv) SWU inventory as of January 1, 2009,
including any existing Paducah GDP SWU inventory, Russian HEU and US HEU inventory. Further,
revenue resulting from the sale of uranium, conversion services or other services or products are
not included.
“Separative Work Unit” or “SWU” is a unit of measurement of the effort needed to separate the U-235
and U-238 atoms in natural uranium in order to create a final product that is richer in U-235
atoms.
2. Amount of Annual Royalty
Subject to paragraph 3 below, for each calendar year commencing on or after January 1, 2009 USEC
shall pay an annual royalty equal to:
a) $100,000.00 for any Gas Centrifuge Annual Gross Revenue that is equal to or less than
$110,000,000.00; plus
b) One percent (1%) of the Gas Centrifuge Annual Gross Revenue for any Gas Centrifuge Annual
Gross Revenue that is greater than $110,000,000.00 and less than or equal to $400,000,000.00;
plus
c) Two percent (2%) of the Gas Centrifuge Annual Gross Revenue for any Gas Centrifuge Annual
Gross Revenue that is greater than $400,000,000.00 and less than or equal to $600,000,000.00;
plus
d) One percent (1%) of the Gas Centrifuge Annual Gross Revenue for any Gas Centrifuge Annual
Gross Revenue that is greater than $600,000,000.00.
No royalty shall be due or payable for any SWU produced or sold prior to January 1, 2009.
3. Maximum Cumulative Royalty
The maximum cumulative royalty due or payable under this LICENSE shall be $100,000,000.00. When the
LICENSEE has paid $100,000,000.00 in royalties under this LICENSE then this LICENSE shall continue
royalty-free thereafter.
