Internal Development by Lantern Clause Samples

Internal Development by Lantern. (a) In the event Lantern develops and commercializes the Compound or Product itself or through its Affiliates, then Lantern will make cash royalty payments to the Schedule A Parties based on the percentages of Net Revenue set forth in the following table, to be applied as a percentage of Net Revenue amounts actually received by Lantern or its Affiliates (subject to reductions as permitted by Sections 3.3, 3.6, 4.2, 4.3 and 5.2): (in U.S. Dollars) $0-100 Million [***]% $100 Million-250 Million [***]% $250 Million-500 Million [***]% $500 Million-1.0 Billion [***]% $1.0 Billion and above [***]% (b) The royalty payments under this Section 3.4 shall be paid on a quarterly basis within sixty (60) days after the end of each calendar quarter, and the payment shall be accompanied with a report containing Net Revenue with respect to sales of the Products on a country-by-country and Product-by-Product basis. (c) If, with respect to a particular country in the Territory, either (i) the Product is generating Net Revenue in such country at a time when a Generic Product is being sold in such country, or (ii) the Product is generating Net Revenue in such country at a time when no patents or patent applications Controlled by Lantern or any direct or indirect successor, assignee, licensee, sublicensee or Affiliate of Lantern are then in force in such particular country with claimed subject matter covering the Compound or Product, processes to make the Compound or Product, uses of the Compound or Product, or methods of administration or treatment with respect to the Compound or Product, then the royalty rate applicable to Net Revenue of the Product in such country shall be reduced by [***] percent ([***]%); it being understood that the remaining royalties payable with respect to such country shall be for the assignment in such country of non-patented Information and BioNumerik Improvements. (d) In the event the development, use or commercialization of Compound or Product in the Field in the Territory by Lantern, its Affiliates or licensees or sublicensees in accordance with terms of this Agreement would infringe the intellectual property rights of any third party absent a license thereunder, which manufacturing, use or sale activity necessitates Lantern to reasonably obtain a license under such third party intellectual property rights, then Lantern may deduct from the royalties that would otherwise be due to the Schedule A Parties pursuant to this Section 3.4 [***] percent (...