Considering if licensee can NOT pay royalty fees they are in breach I'd say this OPTION for the licensor to CHOOSE to take shares is a weighted one on their belief that the licensee has a product that's shares may be well worth the acceptance of shares on occasion in lieu of cash in whole or part each quarter.
No one says if they take them it's to sell them.
Say I can get $35,000 cash or I can get $35,000 worth of shares - well if I believe those shares will be worth 2x the price I can get them for in a month then why not? Isn't that like doubling up on my quarterly payment by doing so?
Just my opinion but I believe this was VERY well thought out and has been in the works for several months and we have just been shown the path they have worked to hard to get to and used many mops and buckets to clean out the garbage.