Common use of Ongoing Royalty Clause in Contracts

Ongoing Royalty. Subject to the provisions of this Article III, ARES shall during the Term pay or cause to be paid to SIGNAL royalties on Net Sales of Licensed Products or Combination Products at the following rates: (i) [***] of total annual Net Sales of Licensed Products and Combination Products at or below [***]; (ii) [***] of total annual Net Sales of Licensed Products and Combination Products above [***]; (iii) [***] of total annual Net Sales of Licensed Products and Combination Products above [***]; and (iv) [***] of total annual Net Sales of Licensed Products and Combination Products above [***]; ***Confidential Treatment Requested 23 provided, however, that upon the expiration or invalidation of the last remaining Valid Claim of a SIGNAL Patent or Joint Patent in effect in a country that covers such Licensed Product or Combination Product, royalties payable for such country with respect to such Licensed Product or Combination Product shall be reduced by [***]