for the rights, services and benefits granted by North hereunder, Company agrees to pay North a non-refundable Guaranteed Service Fee and Marketing Retainer (hereinafter referred to as "Guaranteed Fee") of fifty-five thousand dollars ($55,000USD) in Contract Year 2011 and seventy thousand dollars ($70,000USD) in Contract Year 2012. (i) Twenty-Five thousand dollars ($25,000USD) on or before two days after this Agreement is fully executed. (ii) Fifteen thousand dollars ($15,000USD) on or before July 1, 2011. (iii) Fifteen thousand dollars ($ 15,000USD) on or before November 1, 2011. (i) Twenty-Five thousand dollars ($25,000USD) on or before February 1, 2012 (ii) Twenty-Five thousand dollars ($25,000USD) on or before July 1, 2012 (iii) Twenty thousand dollars ($20,000USD) on or before November 1, 2012 b. Royalties. In addition to payments due North by Company as set forth in paragraphs 7.a. above, Company further agrees to pay North a one percent (1%) royalty on all Gross Revenue generated from the sale of all Company Products (herein "Royalties"). c. Payment of Royalties/Statement of Accounts. (i) Company agrees to pay all royalties due as set forth in section 7.b. above on or before thirty (30) days following the end of each quarterly period during the Contract Period. The quarterly royalty payment shall be accompanied by a statement of account indicating the quantities of Products sold, the Gross Revenue generated from all sales of the Product where the sales were derived from (i.e. direct sales or retail sales) and the royalty payment that is due to North. (ii) Company shall keep, at its principal office, 1021 N. Sepulveda Blvd., Suite G, Manhattan Beach, CA 90266, a complete and accurate set of books and records maintained in accordance with generally accepted accounting principles and business practices. Said books and records shall be maintained for a two (2) year period following