Common use of Stacking Royalties Clause in Contracts

Stacking Royalties. In the event that it is necessary in order for POINT or its Sublicensee(s) to sell the Product in a Sub-Territory or to obtain a license and to pay royalties to one or more Third Parties on Net Sales of any Product(s), and if the aggregate royalty burden payable on any Product(s) for those Third Party licenses is greater than [***]% of Net Sales, then POINT may reduce the Royalty Fees or Sublicensing Fees due to the Parties for sales of such Product in such Sub-Territory by [***] percent ([***]%) of such necessary royalties actually paid to the Third Party(ies) on Net Sales of Product in such Sub-Territory within the same royalty period.

Stacking Royalties. In the event that it is necessary in order for POINT or its Sublicensee(s) to sell the Product in a Sub-Territory or to obtain a license and to pay royalties to one or more Third Parties on Net Sales of any Product(s), and if the aggregate royalty burden payable on any Product(s) for those Third Party licenses is greater than [***]% of Net Sales, then POINT may reduce the Royalty Fees or Sublicensing Fees due to the Parties for sales of such Product in such Sub-Territory by [***] fifty percent ([***]50%) of such necessary royalties actually paid to the Third Party(ies) on Net Sales of Product in such Sub-Territory within the same royalty period. [***] = Indicates confidential information omitted from the exhibit.