Common use of Minimum Royalty Clause in Contracts

Minimum Royalty. Subject to the terms and conditions of this Agreement, [*] (the "Minimum Royalty Commencement Date"), and at each anniversary of the Minimum Royalty Commencement Date during the Term, PathoGenesis shall pay to AeroGen, in arrears, a minimum annual royalty payment of [*] within [*] of such Minimum Royalty Commencement Date or anniversary thereof; provided that any and all royalty payments actually made with respect to Net Sales during such calendar year shall be credited against such minimum royalty amount. In the event PathoGenesis fails to make such payment, and such payment is not made within [*] written notice thereof, AeroGen shall have the right to [*].