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XTouch Metal Mesh Touch Sensors and Diamond Guard Hard Coat Resin (Glass Replacement Technology)

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n addition, the Amendment adds that the Company shall pay Atmel a separate Royalty Rate of 5.7% for any GIS sublicenses, based on the manufacturing costs used by the Company to calculate the royalty payable under its sublicense agreement with GIS 

 

Furthermore, the maximum cumulative annual royalties payable for the GIS sublicense is $13,250,000. Royalties from the GIS sublicense are separate from and do not count toward the minimum annual royalty amount paid for Display’s license under the Patent License Agreement during the Initial Term 

 

So someone please tell me that I am reading/figuring this wrong.  The royalty rate of 5.7% is based on the cost, not the sale price.  This agreement stands on its own and is separated from the prior sublicense agreement made with Atmel in January regarding sublicensing to companies other than GIS.  $13,250,000 is 5.7% of a manufacturing cost of over $232 million per year!  Anything over and above that number, no fee is due Atmel.  So if we would be paying Atmel a fee of 5.7% of GIS's manufacturing costs, what percentage could Unxl be getting?

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