StockMarketWire.com - Carclo's board has agreed to license CIT Technology's fine line technology to UniPixel Inc.

In consideration for the grant of an initial five year FLT patent licence to Unipixel, CIT will receive per annum payments of the greater of US$1.65m or 1.67% of annual net product sales.

An initial cash prepayment of US$4.67m has been received by CIT at completion and this is non-refundable.

Royalty payments in excess of the initial cash prepayment may be paid by UniPixel in either secured loan notes or cash. CIT has also granted a royalty free intellectual property licence for UniPixel to use CIT's know-how for metal mesh touch screen technology. UniPixel has been granted an option to extend the patent and IPR licences beyond the initial five year term for a further 10 year term in exchange for annual royalty payments of 1.67% of net product sales. During this renewal term, total cumulative royalties are capped at US$8.25m.




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