Alliance Products. *1. Any products containing cyanuric acid as a primary active ingredient in the product forms (e.g., sticks, tablets, pucks, granulated product, etc.) described in Exhibit 3.1(a).
Alliance Products. After MICL has recovered one hundred percent (100%) of the amounts described in Section 5.3(a), Infinity shall pay to MICL a royalty, on an Alliance Product-by-Alliance Product basis, on annual Net Sales of such Alliance Product (other than FAAH Products) in the Infinity Territory at the following rates: Calendar Year Net Sales of Alliance Product Royalty Rate Less than or equal to US$250,000,000 1 % Greater than US$250,000,000 and less than or equal to US$500,000,000 2 % Greater than US$500,000,000 3 % Once Net Sales of the applicable Alliance Product in the applicable Infinity Territory during a calendar year reach the second or third threshold specified above, then the royalty rate set forth for such threshold shall apply to all Net Sales of such Alliance Product in such calendar year. For example, if, during the first calendar quarter of a year, the Net Sales of an Alliance Product in the Infinity Territory is US$200,000,000, then Infinity shall pay a royalty rate of 1% on such Net Sales, resulting in a payment of US$2,000,000. If, during the second calendar quarter of such year, the Net Sales of such Alliance Product in the Infinity Territory is US$200,000,000, so that the cumulative Net Sales for such Alliance Product during such year-to-date is US$400,000,000, then the 2% royalty rate shall apply retroactively to all Net Sales during such calendar year, resulting in a payment of US$6,000,000 for such calendar quarter (i.e., US$8,000,000 minus the US$2,000,000 paid for the first calendar quarter).
Alliance Products
