Common use of Basic Royalty Clause in Contracts

Basic Royalty. In consideration of the license granted under Article 3, Poniard shall pay to AnorMED, without duplication, in respect of each Licensed Product: (a) for all Patent Pending Countries where no Competition exists and all Issued Patent Countries, a royalty on Net Sales of such Licensed Product by Poniard and its Affiliates and any Sublicensees in each calendar year as follows: (i) [ * ] of the first [ * ] of such Net Sales in the calendar year, calculated cumulatively among all Patent Pending Countries where no Competition exists and all Issued Patent Countries, world-wide; (ii) [ * ] of such Net Sales in excess of the first [ * ] but less than [ * ] in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where no Competition exists and all Issued Patent Countries, world-wide; (iii) [ * ] of such Net Sales in excess of the first [ * ] but less than [ * ] in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where no [ * ] Confidential Treatment Requested Competition exists and all Issued Patent Countries, world-wide; and (iv) [ * ] of such Net Sales in excess of [ * ] in the calendar year, calculated cumulatively among all Patent Pending Countries where no Competition exists and all Issued Patent Countries, world-wide; and (b) for all Patent Pending Countries where Competition exists and all Know-How Countries, a royalty on Net Sales of such Licensed Product by Poniard and its Affiliates and any Sublicensees in each calendar year as follows: (i) [ * ] of the first [ * ] of such Net Sales in the calendar year, calculated cumulatively among all Patent Pending Countries where Competition exists and all Know-How Countries, world-wide; (ii) [ * ] of such Net Sales in excess of the first [ * ] but less than [ * ] in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where Competition exists and all Know-How Countries, world-wide; (iii) [ * ] of such Net Sales in excess of the first [ * ] but less than [ * ] in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where Competition exists and all Know-How Countries, world-wide; and (iv) [ * ] of such Net Sales in excess of [ * ] in the calendar year, calculated cumulatively among all Patent Pending Countries where Competition exists and all Know-How Countries, world-wide; in each of Subsections 7.2(a) and 7.2(b), until the later of either: (c) the date of expiration of the last Valid Claim within the AnorMED Patents covering the Licensed Product in the country of manufacture or sale, as applicable; or (d) the expiration of [ * ] years after First Commercial Sale of such Licensed Product in the country of sale. For the purposes of this Section 7.2:

Basic Royalty. In consideration of the license granted under Article 3, Poniard shall pay to AnorMED, without duplication, in respect of each Licensed Product: (a) for all Patent Pending Countries Counties where no Competition exists and all Issued Patent Countries, a royalty on Net Sales of such Licensed Product by Poniard and its Affiliates and any Sublicensees Sublicenses in each calendar year as follows: i. five percent (i5%) [ * ] of the first [ * ] one hundred million dollars (US$100,000,000) of such Net Sales in the calendar year, calculated cumulatively among all Patent Pending Countries Counties where no Competition exists and all Issued Patent Countries, world-wide; ii. six percent (ii6%) [ * ] of such Net Sales in excess of the first [ * ] one hundred million dollars (US$100,000.000) but less than [ * ] four hundred million dollars (US$400,000,000) in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where no Competition exists and all Issued Patent CountriesCounties, world-wide;: iii. eight Percent (iii8%) [ * ] of such Net Sales in excess of the first [ * ] four hundred million dollars (US$400,000,000) but less than [ * ] one billion dollars (US$ 1,000,000,000) in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries Counties where no [ * ] Confidential Treatment Requested Competition exists and all Issued Patent Countries, world-wide; and iv. nine percent (iv9%) [ * ] of such Net Sales in excess of [ * ] one billion dollars (USS1,000,000,000) in the calendar year, calculated cumulatively among all Patent Pending Countries Counties where no Competition exists and all Issued Patent CountriesCounties, world-wide; and (b) for all Patent Pending Countries where Competition exists and all Know-How CountriesCounties, a royalty on Net Sales of such Licensed Product by Poniard and its Affiliates and any Sublicensees in each calendar year as follows: i. two and ono-half percent (i2 1/2%) [ * ] of the first [ * ] one hundred million dollars (US$100,000,000) of such Net Sales in the calendar year, calculated cumulatively among all Patent Pending Countries Counties where Competition exists and all Know-How Countries, world-wide; ii. three percent (ii3%) [ * ] of such Net Sales in excess of the first [ * ] one hundred million dollars (US$ 100,000,000) but less than [ * ] four hundred million dollars (US$400,000,00) in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where Competition exists and all Know-How Countries, world-wide; iii. four percent (iii4%) [ * ] of such Net Sales in excess of the first [ * ] four hundred million dollars (US$400,000,000) but less than [ * ] one billion dollars (US$1,000,000,000) in the calendar year, where such amounts are calculated cumulatively among all Patent Pending Countries where Competition exists and all Know-How Countries, world-wide; and iv. four and one-half percent (iv4 1/2%) [ * ] of such Net Sales in excess of [ * ] alone billion dollars (US$1,000,000,000) in the calendar year, calculated cumulatively among all Patent Pending Countries Counties where Competition exists and all Know-How CountriesCounties, world-wideworldwide; in each of Subsections 7.2(a) and 7.2(b), until until, the later of either: (c) the date of expiration of the last Valid Claim within the AnorMED Patents covering the Licensed Product in the country of manufacture or sale, as applicable; or (d) the expiration of [ * ] 10 years after First Commercial Sale of such Licensed Product in the country of sale. For the purposes of this Section 7.2: