Common use of Anti-Stacking Clause in Contracts

Anti-Stacking. If Company, its Affiliates or Sublicensees is required to pay royalties to any Third Party in order to make use of or sell a Licensed Product, and if the royalties required to be paid to such Third Party for such license, together with those royalties payable to Licensor under this Agreement, in the aggregate, exceed [*] of Net Sales for such Licensed Product in [*], then Company shall have the right to credit [*] of such Third Party royalty payments against the royalties payable to Licensor under Section 4.3.1 (as adjusted, if applicable, under Section 4.3.2) with respect to Net Sales of such Licensed Product in such quarter; provided, however, that Company shall not reduce the amount of the royalties paid to Licensor under Section 4.3.1 by reason of this Section 4.3.3, to less than [*] of the royalties that would otherwise be due under Section 4.3.1.

Appears in 2 contracts

Sources: Exclusive License and Collaboration Agreement, Exclusive License and Collaboration Agreement (Audentes Therapeutics, Inc.)