Common use of Minimum Annual Royalty Clause in Contracts

Minimum Annual Royalty. In no event shall Licensee pay a Royalty that is less than the Minimum Annual Royalty. The Minimum Annual Royalty per Contract Year shall be defined to be: • 600,000 Euros for Contract Year 1 • 1,000,000 Euros for Contract Year 2 • 1,250,000 Euros for Contract Years 3, 4 and 5 • 1,500,000 Euros for Contract Years 6, 7 and 8 • 1,750,000 Euros from Contract Year 9 onwards Should the Royalties paid under Section 3.4 not be at least the Minimum Annual Royalty amount for that Contract Year, Licensee shall pay KeyGene the difference between the applicable Minimum Annual Royalty and the Royalties paid under Section 3.4 for that Contract Year within sixty (60) days after receipt of a written invoice delivered by KeyGene to Licensee at or after the end of such Contract Year. Licensee’s failure to pay at least the Minimum Annual Royalty for an applicable Contract Year shall be considered a material breach of this Agreement, subject to a notice of material breach and a reasonable cure period.

Minimum Annual Royalty. In no event shall Licensee pay a Royalty that is less than the Minimum Annual Royalty. The Minimum Annual Royalty per Contract Year shall be defined to be: • 600,000 Euros for Contract Year 1 • 1,000,000 Euros for Contract Year 2 • 1,250,000 Euros for Contract Years 3, 4 and 5 • 1,500,000 Euros for Contract Years 6, 7 and 8 • 1,750,000 Euros from Contract Year 9 onwards Should the Royalties paid under Section 3.4 not be at least the Minimum Annual Royalty amount for that Contract Year, Licensee shall pay KeyGene the difference between the applicable Minimum Annual Royalty and the Royalties paid under Section 3.4 for that Contract Year within sixty (60) days after receipt of a written invoice delivered by KeyGene to Licensee at or after the end of such Contract Year. Licensee’s failure to pay at least the Minimum Annual Royalty for an applicable Contract Year shall be considered a material breach of this Agreement, subject to a notice of material breach and a reasonable cure period.. 3.6