What happen to the $300,000.00 PAYMENT OF ROYALTY that DGRI was supposed to get from ABBA MEDIX.
PAYMENT OF ROYALTY. AM will pay to DGRI a royalty which shall be calculated as follows: Fifteen percent of gross profits resulting in any way from the Authored Work as per the attached schedule as set forth in Exhibit D. With each royalty payment, AM will submit to DGRI a written report that sets forth the calculation of the amount of the royalty payment. An Advance Royalty Payment shall be due at the execution of this agreement in the amount for Three Hundred Thousand Dollars US ($300,000) payable Fifty Thousand Dollars US ($50,000) to be paid via wire transfer at the execution of this Agreement, and Fifty Thousand Dollars US ($50,000) to be paid via wire transfer thirty days from the execution of this agreement, and with the balance to be paid in cash, stock in AM if publicly traded, or in equity in the Joint Venture referenced above. In connection to the Joint Venture Agreement referenced above, DGRI shall have the right and obligation to convert its share in the equity of the JointVenture into common stock of AM, if and when AM becomes a publicy traded company, at which time the remaing Advance Royalty Payment will be deemed to have been converted and no further obligation from AM will exist. If AM does not become a publicly traded company, then DGRI shall have the right to convert the remaining Advance Royalty Payment into equity in the Joint Venture. In the event that AM distributes DGRI produced products in its described geographical area, AM will purchase such product at a discount of 85% of the gross wholesale profit. It is contemplated that the royalty streams will be converted to equity interests in the above described Joint Venture.
AI
