Common use of Additional Royalty Clause in Contracts

Additional Royalty. Subject to Section 4(a)(iii), JMI will provide Company, free of charge, any API which is delivered during the period of time occurring immediately after the completion of the validation process and continuing until API is delivered for use in Company’s Commercial Launch. In consideration thereof, notwithstanding payment of the Minimum Royalty, Company shall pay JMI an additional royalty on the Net Profits of the Product sold in each Calendar Quarter in accordance with the following tiered royalty rate based on the Annual Gross Sales of the Product in such Calendar Year (“Additional Royalty”): Annual Gross Sales (in USD) of the Product Royalty Rate on Net Profits For the First $[*] [ *]% From Greater than $[*] up to and including $[*] [ *]% From $[*] or greater [ *]%