Common use of License Rates Clause in Contracts

License Rates. The applicable royalty rate for the License will be as follows: (a) [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) of Net Revenue from the sale of Products which use, incorporate or are derived from Burcon Technology manufactured in the Semi- works Production Facility before the commencement of Full-commercial Production (the "Semi-works Production Royalty"); (b) [commercially sensitive information redacted]percent ([commercially sensitive information redacted]%) of Net Revenue from the sale of Products which use, incorporate or are derived from Burcon Technology after the commencement of Full- commercial Production (the "Full Commercial Production Royalty"); (c) the Semi-works Production Royalty rate described in Section 4.3(a) and the Full Commercial Production Royalty rate described in Section 4.3(b) will be reduced by [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) if a patent application of Burcon directed towards a composition of matter and covering the Products filed with the United States Patent and Trademarks Office does not issue within the earlier of: [commercially sensitive information redacted] provided that the Semi-works Production Royalty and the Full Commercial Production Royalty will revert to their original levels after such patent is issued; (d) [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) of Net Revenue of Products which use, incorporate or are derived from Burcon Technology if, and beginning after, Burcon elects to convert the License to the Non-Exclusive License, which rate will revert to the Full Commercial Production Royalty if ADM exercises its right under Section 2.6; (e) the Full Commercial Production Royalty will be reduced by [commercially sensitive information redacted]% (or [commercially sensitive information redacted]% while Section 4.3(c) is in effect) upon each occurrence of the following: (i) ADM or any of its Affiliates sells the Products in a New Geographic Region; (ii) such sales are bona fide arms' length sales to a Person or Persons located in that New Geographic Region for use in that New Geographic Region; and (iii) the minimum annual sales to such arms' length Person or Persons in that New Geographic Region are greater than [commercially sensitive information redacted]tonnes. For greater certainty, the maximum aggregate reduction in the Full Commercial Production Royalty as a result of the application of this provision will be [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%), or [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) if Section 4.3(c) is in effect, and in each instance the reduction will only apply in each calendar year in which annual sales of Products in and for use in the relevant New Geographic Region exceed [commercially sensitive information redacted] tonnes, as evidenced by the report provided by ADM to Burcon pursuant to Section 5.1(b) in respect of that calendar year. As ADM achieves sales of at least [commercially sensitive information redacted] tonnes to qualify for the reduced royalty in each New Geographic Region, such reduction in royalty will carry over to the succeeding year and such reduced royalty will continue to apply until such sales do not meet [commercially sensitive information redacted] tonnes; and (f) ADM will qualify for the maximum royalty reduction under 4.3(e), i.e. down to [commercially sensitive information redacted]% (or [commercially sensitive information redacted]% if 4.3(c) is in effect), once ADM achieves [commercially sensitive information redacted] tonnes of minimum annual sales of Products in the Territory.

License Rates. The applicable royalty rate for the License will be as follows: (a) [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) of Net Revenue from the sale of Products which use, incorporate or are derived from Burcon Technology manufactured in the Semi- works Production Facility before the commencement of Full-commercial Production (the "Semi-works Production Royalty"); (b) [commercially sensitive information redacted]percent ([commercially sensitive information redacted]%) of Net Revenue from the sale of Products which use, incorporate or are derived from Burcon Technology after the commencement of Full- commercial Production (the "Full Commercial Production Royalty"); (c) the Semi-works Production Royalty rate described in Section 4.3(a) and the Full Commercial Production Royalty rate described in Section 4.3(b) will be reduced by [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) if a patent application of Burcon directed towards a composition of matter and covering the Products filed with the United States Patent and Trademarks Office does not issue within the earlier of: [commercially sensitive information redacted] provided that the Semi-works Production Royalty and the Full Commercial Production Royalty will revert to their original levels after such patent is issued; (d) [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) of Net Revenue of Products which use, incorporate or are derived from Burcon Technology if, and beginning after, Burcon elects to convert the License to the Non-Exclusive License, which rate will revert to the Full Commercial Production Royalty if ADM exercises its right under Section 2.6; (e) the Full Commercial Production Royalty will be reduced by [commercially sensitive information redacted]% (or [commercially sensitive information redacted]% while Section 4.3(c) is in effect) upon each occurrence of the following: (i) ADM or any of its Affiliates sells the Products in a New Geographic Region; (ii) such sales are bona fide arms' length sales to a Person or Persons located in that New Geographic Region for use in that New Geographic Region; and (iii) the minimum annual sales to such arms' length Person or Persons in that New Geographic Region are greater than [commercially sensitive information redacted]tonnes. For greater certainty, the maximum aggregate reduction in the Full Commercial Production Royalty as a result of the application of this provision will be [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%), or [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) if Section 4.3(c) is in effect, and in each instance the reduction will only apply in each calendar year in which annual sales of Products in and for use in the relevant New Geographic Region exceed [commercially sensitive information redacted] tonnes, as evidenced by the report provided by ADM to Burcon pursuant to Section 5.1(b) in respect of that calendar year. As ADM achieves sales of at least [commercially sensitive information redacted] tonnes to qualify for the reduced royalty in each New Geographic Region, such reduction in royalty will carry over to the succeeding year and such reduced royalty will continue to apply until such sales do not meet [commercially sensitive information redacted] tonnes; and (f) ADM will qualify for the maximum royalty reduction under 4.3(e), i.e. down to [commercially sensitive information redacted]% (or [commercially sensitive information redacted]% if 4.3(c) is in effect), once ADM achieves [commercially sensitive information redacted] tonnes of minimum annual sales of Products in the Territory.

License Rates. The (1) Subject to Section 4.2(2), the applicable royalty rate for the License will be as follows: (a) [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) of Net Revenue from Revenue, until the sale of Products which use, incorporate applicable royalty rate is reduced pursuant to Section 4.2(1)(b) or are derived from Burcon Technology manufactured in the Semi- works Production Facility before the commencement of Full-commercial Production (the "Semi-works Section 4.2(1)(c) or Section 4.2(1)(d)(the “Flex Production Royalty"”); (b) [commercially sensitive information redacted]percent ([commercially sensitive information redacted]%) of Net Revenue Revenue, from the sale of Products which use, incorporate or are derived from Burcon Technology and after the commencement of Full- date that the Corporation has provided a Full-commercial Production Election Notice to Burcon, until the applicable royalty rate is reduced pursuant to Section 4.2(1)(c) or Section 4.2(1)(d) (the "“Pre-Full Commercial Production Royalty"”); (c) the Semi-works Production Royalty rate described in Section 4.3(a) and the Full Commercial Production Royalty rate described in Section 4.3(b) will be reduced by [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) if a patent application of Burcon directed towards a composition Net Revenue upon completion of matter the Construction and covering Commissioning of the Products filed with Full-commercial Production Facility (the United States Patent and Trademarks Office does not issue within the earlier of: [commercially sensitive information redacted] provided that the Semi-works Production Royalty and the “Full Commercial Production Royalty will revert to their original levels after such patent is issued;Royalty”); and (d) [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) of Net Revenue of Products which use, incorporate or are derived from Burcon Technology if, and beginning after, Burcon elects to convert the Exclusive License to the Non-Exclusive License, which rate will revert provided that the Corporation does not expand its annual production capacity in relation to the Products and Blended Products beyond the aggregate annual production capacity reached by the Corporation at the time Burcon provides the notice to the Corporation set out in Section 3.5(2). (2) The Flex Production Royalty, the Pre-Full Commercial Production Royalty and the Full Commercial Production Royalty if ADM exercises its right under Section 2.6; (e) the Full Commercial Production Royalty Royalty, in so far as such royalty relates to pea products, will be reduced by [commercially sensitive information redacted]% (or [commercially sensitive information redacted]% while Section 4.3(c) is in effect) upon each occurrence of the following: (i) ADM or any of its Affiliates sells the Products in a New Geographic Region; (ii) such sales are bona fide arms' length sales to a Person or Persons located in that New Geographic Region for use in that New Geographic Region; and (iii) the minimum annual sales to such arms' length Person or Persons in that New Geographic Region are greater than [commercially sensitive information redacted]tonnes. For greater certainty, the maximum aggregate reduction in the Full Commercial Production Royalty as a result of the application of this provision will be [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%), or [commercially sensitive information redacted] percent ([commercially sensitive information redacted]%) if Section 4.3(c) is in effect, and in each instance the reduction will only apply in each calendar year in which annual sales of Products in and for use in the relevant New Geographic Region exceed Specified Patent does not issue within [commercially sensitive information redacted] tonnes]) years after the Effective Date, as evidenced by provided that the report provided by ADM Flex Production Royalty, the Pre-Full Commercial Royalty and the Full Commercial Production Royalty will, on a going forward basis, revert to Burcon pursuant to Section 5.1(b) in respect of that calendar year. As ADM achieves sales of at least [commercially sensitive information redacted] tonnes to qualify for their original levels after the reduced royalty in each New Geographic Region, such reduction in royalty will carry over to the succeeding year and such reduced royalty will continue to apply until such sales do not meet [commercially sensitive information redacted] tonnes; and (f) ADM will qualify for the maximum royalty reduction under 4.3(e), i.e. down to [commercially sensitive information redacted]% (or [commercially sensitive information redacted]% if 4.3(c) Specified Patent is in effect), once ADM achieves [commercially sensitive information redacted] tonnes of minimum annual sales of Products in the Territoryissued thereafter.