Common use of PAYABLE BY GI TO METAMORPHIX Clause in Contracts

PAYABLE BY GI TO METAMORPHIX. GI shall pay to MetaMorphix a royalty on sales made by GI, its Affiliates or sublicensees of each GI Type A Product, the manufacture, USE or sale of which is covered by a Valid Claim under the applicable Factor Patent Rights, which royalty shall be calculated using the following formula: (A+B+C+D+E)-F where A equals either (i) four percent (4%) of the Net Sales obtained from such sales of such GI Type A Product. if the First Member of such GI Type A Product's TGF-(beta) Class is a GDF or a Collaborative Factor of JHU and MetaMorphix. or (ii) two percent (2%) of Net Sales of such GI Type A Product. if the First Member of such GI Type A Product's TGF-(beta) Class is a Collaborative Factor of GI and JHU or GI and MetaMorphix; B equals one percent (1%) of Net Sales obtained from such sales of such GI Type A Product, multiplied by the number (if any) of Subsequent Members in that GI Type A Product's TGF-(beta) Class (not to exceed three (3) which are GDFs or Collaborative Factors of JHU and-MetaMorphix; C equals one-half percent (1/2%) of Net Sales obtained from such sales of such GI Type A Product, multiplied by the number (if any) of Subsequent Members in that Product's TGF-(beta) Class (not to exceed three (3) which are Collaborative Factors of GI and JHU or GI and MetaMorphix; D equals one percent (1 %) of Net Sales obtained from such sales of such GI Type A Product, if that GI Type A Product is labeled for an indication which is covered by a Valid Claim of a Use Patent within the MetaMorphix Patent Rights, the JHU Patent Rights or the Joint Patent Rights of JHU and MetaMorphix; E equals one-half percent (1/2%) of the Net Sales obtained from such sales of such GI Type A Product, if that Product is labeled for an indication which is covered by a Valid Claim of a Use Patent within the Joint Patent Rights of GI and JHU or GI and MetaMorphix: and F equals the royalty payable by GI to JHU under Section 7.3.2.2 below, PROVIDED. HOWEVER, that In no event shall the sum of A. B and C exceed seven percent (7%).

PAYABLE BY GI TO METAMORPHIX. GI shall pay to MetaMorphix a royalty on the sales made by GI, its Affiliates or sublicensees of Other TGF-(beta) Products, which royalty shall be calculated using the formula: royalty =(A+B+C+D)-E where A equals one-half percent (1/2%) of the Net Sales obtained from sales made in North America of any Other TGF-(beta) Product based on a Factor known to GI as BMPs 2, 4, 5, 6, 7, 9 or 12, multiplied by the number (if any) of GDFs or Collaborative Factors of JHU and MetaMorphix (not to exceed three (3) for each GI Type A ProductTGF-beta Class), the manufacture, USE use or sale of which is covered by a Valid Claim under the applicable Factor Patent Rights, which royalty shall be calculated using belong to a TGF-(beta) Class containing the following formula: (A+B+C+D+E)-F where A Factor on which the Other TGF-(beta) Product being sold is based; B equals either (i) four one-quarter percent (41/4%) of the Net Sales obtained from such sales made in North America of such GI Type A Product. if the First Member of such GI Type A Product's any Other TGF-(beta) Class is Product based on a GDF or a Collaborative Factor of JHU KNOWN to GI as BMPs 2, 4, 5, 6, 7, 9 and MetaMorphix. or (ii) two percent (2%) of Net Sales of such GI Type A Product. if the First Member of such GI Type A Product's TGF-(beta) Class is a Collaborative Factor of GI and JHU or GI and MetaMorphix; B equals one percent (1%) of Net Sales obtained from such sales of such GI Type A Product12, multiplied by the number (if any) of Subsequent Members in that Collaborative Factors of GI Type A Product's TGF-(beta) Class and JHU, or GI and MetaMorphix (not to exceed three (3) for each TGF-(beta) Class), the manufacture. use or sale of which are GDFs or Collaborative Factors of JHU and-MetaMorphix; is covered by a Valid Claim under the applicable Factor Patent Rights, which belong to a TGF-(beta) Class containing the Other TGF-(beta) Factor on which the Other TGF-(beta) Product being sold is based: C equals one-half one percent (1/21 %) of the Net Sales obtained from such sales the sale of such any Other TGF-(beta) Product (excluding Other TGF-P Products based on the Factors known to GI Type A Productas BMPs 2, 4, 5, 6, 7, 9 and 12), multiplied by the number (if any) of Subsequent Members in that Product's TGF-(beta) Class GDFs and Collaborative Factors of JHU and MetaMorphix (not to exceed three (3) which are Collaborative Factors for each TGF-beta Class), the manufacture, use or sale of GI and JHU or GI and MetaMorphix; D equals one percent (1 %) of Net Sales obtained from such sales of such GI Type A Product, if that GI Type A Product is labeled for an indication which is covered by a Valid Claim of a Use Patent within under the MetaMorphix applicable Factor Patent Rights, which belong to a TGF-(beta) Class .containing the JHU Patent Rights or Other TGF-(beta) Factor on which the Joint Patent Rights of JHU and MetaMorphixOther TGF-(beta) Product being sold is based; E D equals one-half percent (1/2%) of the Net Sales obtained from such sales the sale of such any Other TGF-(beta) Product (excluding Other TGF-(beta) Products based on the Factors known to GI Type A Productas BMPs 2, 4, 5, 6, 7, 9 and 12), multiplied by the number (if that Product is labeled any) of Collaborative Factors of GI and JHU, or GI and MetaMorphix (not to exceed three (3) for an indication each TGF-(beta) Class), the manufacture, use or sale of which is covered by a Valid Claim of under the applicable Factor Patent Rights, which belong to a Use Patent within TGF-(beta) Class containing the Joint Patent Rights of GI Other TGF-(beta) Factor on which the Other TGF-(beta) Product being sold is based; and JHU or GI and MetaMorphix: and F E equals the royalty payable by GI to JHU under Section 7.3.2.2 below, PROVIDED. HOWEVER, that In no event shall the sum of A. B and C exceed seven percent (7%)7.3.5.3 above.