Common use of Yield Improvements Clause in Contracts

Yield Improvements. For each increase of [*] percentage points in manufacturing Yield in excess of [*] Yield (as such Yield level may be adjusted pursuant to Section 4.2(a)), as calculated at the completion of the first [*] Batches of Drug Substance at [*]L Commercial Scale that comply with the warranties in Section 8.1(a) pursuant to Sections 4.2(a) and (b), Onyx will pay to XOMA a milestone payment of [*]. Increases in Yield must be evidenced by the average Yield of the [*] Batches of Drug Substance (or, if the Yield for one Batch differs by at least [*] percentage points from the average Yield of the other [*] Batches, the average Yield of such [*] Batches and the next Batch at Commercial Scale that complies with the warranties in Section 8.1(a)) at or in excess of [*] Yield (as so adjusted). For purposes of example: If [*] consecutive Batches result in Yields of [*], respectively, XOMA will have earned an aggregate milestone payment of [*], as there has been a demonstrated Yield improvement of [*] percentage points, which is equal to [*] increments of [*] percentage points so that XOMA would receive [*] milestone payments of [*]. If [*] consecutive Batches result in Yields of [*], respectively, and a [*] Batch results in a Yield of [*], the [*] Batch would be disregarded, and XOMA will have earned an aggre-

Yield Improvements. For each increase of [*] percentage points in manufacturing Yield in excess of [*] Yield (as such Yield level may be adjusted pursuant to Section 4.2(a)), as calculated at the completion of the first [*] Batches of Drug Substance at [*]L Commercial Scale that comply with the warranties in Section 8.1(a) pursuant to Sections 4.2(a) and (b), Onyx ONYX will pay to XOMA a milestone payment of [*]. Increases in Yield must be evidenced by the average Yield of the [*] Batches of Drug Substance (or, if the Yield for one Batch differs by at least [*] percentage points from the average Yield of the other [*] Batches, the average Yield of such [*] Batches and the next Batch at Commercial Scale that complies with the warranties in Section 8.1(a)) at or in excess of [*] Yield (as so adjusted). For purposes of example: If [*] consecutive Batches result in Yields of [*], respectively, XOMA will have earned an aggregate milestone payment of [*], as there has been a demonstrated Yield improvement of [*] percentage points, which is equal to [*] increments of [*] percentage points so that XOMA would receive [*] milestone payments of [*]. If [*] consecutive Batches result in Yields of [*], respectively, and a [*] Batch results in a Yield of [*], the [*] Batch would be disregarded, and XOMA will have earned an aggre-aggregate milestone payment of [*] based upon the other [*] Batches, as there has been a demonstrated Yield improvement of [*] percentage points, which is equal to [*] increments of [*] percentage points so that XOMA would receive [*] milestone payments of [*]. Milestone payments for Yield improvements under this Section 6.5(b) shall be payable only once for each [*] percentage points of Yield improvement.

Yield Improvements. For each increase of [*[ * ] percentage points in manufacturing Yield in excess of [*[ * ] Yield (as such Yield level may be adjusted pursuant to Section 4.2(a)), as calculated at the completion of the first [*[ * ] Batches of Drug Substance at [*[ * ]L Commercial Scale that comply with the warranties in Section 8.1(a) pursuant to Sections 4.2(a) and (b), Onyx will pay to XOMA a milestone payment of [*[ * ]. Increases in Yield must be evidenced by the average Yield of the [*[ * ] Batches of Drug Substance (or, if the Yield for one Batch differs by at least [*[ * ] percentage points from the average Yield of the other [*[ * ] Batches, the average Yield of such [*[ * ] Batches and the next Batch at Commercial Scale that complies with the warranties in Section 8.1(a)) at or in excess of [*[ * ] Yield (as so adjusted). For purposes of example: If [*[ * ] consecutive Batches result in Yields of [*[ * ], respectively, XOMA will have earned an aggregate milestone payment of [*[ * ], as there has been a demonstrated Yield improvement of [*[ * ] percentage points, which is equal to [*[ * ] increments of [*[ * ] percentage points so that XOMA would receive [*[ * ] milestone payments of [*[ * ]. If [*[ * ] consecutive Batches result in Yields of [*[ * ], respectively, and a [*[ * ] Batch results in a Yield of [*[ * ], the [*[ * ] Batch would be disregarded, and XOMA will have earned an aggre-aggregate milestone payment of [ * ] based upon the other [ * ] Batches, as there has been a demonstrated Yield improvement of [ * ] percentage points, which is equal to [ * ] increments of [ * ] percentage points so that XOMA would receive [ * ] milestone payments of [ * ].

Yield Improvements. For each increase of [*[ * ] percentage points in manufacturing Yield in excess of [*[ * ] Yield (as such Yield level may be adjusted pursuant to Section 4.2(a)), as calculated at the completion of the first [*[ * ] Batches of Drug Substance at [*[ * ]L Commercial Scale that comply with the warranties in Section 8.1(a) pursuant to Sections 4.2(a) and (b), Onyx ONYX will pay to XOMA a milestone payment of [*[ * ]. Increases in Yield must be evidenced by the average Yield of the [*[ * ] Batches of Drug Substance (or, if the Yield for one Batch differs by at least [*[ * ] percentage points from the average Yield of the other [*[ * ] Batches, the average Yield of such [*[ * ] Batches and the next Batch at Commercial Scale that complies with the warranties in Section 8.1(a)) at or in excess of [*[ * ] Yield (as so adjusted). For purposes of example: If [*[ * ] consecutive Batches result in Yields of [*[ * ], respectively, XOMA will have earned an aggregate milestone payment of [*], [ * ] as there has been a demonstrated Yield improvement of [*[ * ] percentage points, which is equal to [*[ * ] increments of [*[ * ] percentage points so that XOMA would receive [*[ * ] milestone payments of [*[ * ]. If [*[ * ] consecutive Batches result in Yields of [*], [ * ] respectively, and a [*[ * ] Batch results in a Yield of [*], [ * ] the [*[ * ] Batch would be disregarded, and XOMA will have earned an aggre-aggregate milestone payment of [ * ] based upon the other [ * ] Batches, as there has been a demonstrated Yield improvement of [ * ] percentage points, which is equal to [ * ] increments of [ * ] percentage points so that XOMA would receive [ * ] milestone payments of [ * ] Milestone payments for Yield improvements under this Section 6.5(b) shall be payable only once for each [ * ] percentage points of Yield improvement.