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Royalty Rates and Guidelines

License Agreement Type Royalty Rate
Standard Rate 2% – 5%
Incentivized Rate 1% – 2%

– Initial license fee and an ongoing royalty fee for every product shipped
– The royalty fee will be calculated as a percentage of the total unit sale price
– Royalty fee will apply for every unit shipped with the VirnetX™ techniques independent of the usage by customer
– Potential Incentives may include
• Good standing
• Annual Volume Commitment
• Prepaid Royalty