Ask HN: Question on startup license

So first, yes I am already talking to an attorney but I am looking for ideas/comments too.

First, I have a technology I invented, software/hardware based, and I have been approached by a small group of people that are wanting to create a startup around it. As a side note, I do not have a patent on this specific implementation but have provisionals on similar solutions.

I am actually quite ok with licensing this to them exclusively, but I wanted to do something like this.

   1. License and tech in exchange of X percent of an equity stake (quite minor overall)
 
   2. For the first X years (dunno yet what), I expect a license payment of $Y made annually.  Again, something reasonable but is in lieu of taking a larger equity stake and generates some cash flow for me. 
 
   3. If they go insolvent before they have made X annual payments then the license is revoked and the asset returns to me.  Likewise if they make those payments then the tech is theirs and my only upside is the equity which is totally fine.  And in the end I wouldn't get anything back if they went insolvent after making all the payments, my only upside in that case would be the 3-5 payments.  If the didn't make the payments reasonably timely then I could revoke the license or renegotiate the terms.
  

What I don't want to do is unintentionally hurt them with terms that would affect their ability to raise money or would be arduous and impossible for them to be successful. But my other choice is take a larger equity stake, which I am not sure I want to do at this point.

Any ideas? Does this seem reasonable/unreasonable to you?