Beginning on the earlier of (a the first year in which a commercial sale is made or (b) [***] as from the EFFECTIVE DATE, a statement of the NET SALES will be provided by COBALT to PULSALYS related to the AGREEMENT, which shall include: • the AGREEMENT number [***]; • the NET SALES per country for each PRODUCT made by COBALT, its AFFILIATES and its SUB-LICENSEES; • the applicable royalty rate; • the amount of SUBLICENSE INCOME and percentage due to PULSALSYS • the calculation of the sums payable to PULSALYS. Regarding Development and Sales Milestones payable to PULSALYS under the Article 6.2 of the AGREEMENT, COBALT shall notify PULSALYS of the achievement of the Development Milestones Event within [***] following their performance and shall specify the respective amount payable to PULSALYS. For each year after the first statement as provided above, a statement of the NET SALES shall be sent to PULSALYS within [***] of the closing date of the accounts for that year. This statement will be certified by a responsible representative of COBALT within [***] of the closing date of the accounts, and delivered to the following address: [***] After [***] following the EFFECTIVE DATE , in the event that no NET SALES have been realised, COBALT shall nonetheless send to PULSALYS, within [***] of COBALT’s closing date, a provisional statement certified by a responsible representative of COBALT certifying the absence of any NET SALES during the year in question and shall state the reasons for the absence of any NET SALES.
