Common use of PROGRESS AND ROYALTY REPORTS Clause in Contracts

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28, 1998, and semi-annually thereafter, Licensee will submit to The Regents a progress report covering activities by Licensee related to the development, including clinical trials and testing, of all Patent Products and the obtaining of the governmental approvals necessary for marketing. These progress reports will be provided to The Regents to cover the progress of the research and development of the Patent Products until their first commercial sale in the United States. 6.2 The progress reports submitted under Paragraph 6.1 will include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Products: o summary of work completed; o summary of work in progress; o current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as of the time of the report; o market introduction date of Patent Products; and o activities of sublicensees, if any. 6.3 Licensee will also report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) in each country where the Licensee has sought marketing approval. 6.4 After the first commercial sale of a Patent Product, Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, and November 30 of each year. Each such royalty report will cover the most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 10.1 Beginning February 28August 31, 1998, 2003 and semi-annually thereafter, the Licensee will shall submit to The Regents a progress report covering the Licensee’s (and any Affiliate’s or sublicensee’s) activities by Licensee related to the development, including clinical trials development and testing, testing of all Patent Licensed Products and/or Licensed Methods and the obtaining of the governmental approvals necessary for marketing. These progress Progress reports will be provided to The Regents to cover are required for each Licensed Product and Licensed Method until the progress of the research and development of the Patent Products until their first commercial sale of that Licensed Product or that Licensed Method occurs in the United StatesStates and shall be again required if commercial sales of such Licensed Product or Licensed Method are suspended or discontinued. 6.2 The progress 10.2 Progress reports submitted under Paragraph 6.1 will 10.1 shall include, but are not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Productstopics: o – summary of work completed; o completed – key scientific discoveries – summary of work in progress; o progress – current schedule of anticipated events or milestones specified – market plans for introduction of Licensed Products and/or Licensed Methods, and – a summary of resources [*] spent in Paragraph 5.3 and the dates when said milestones have been met or will be met, as reporting period. 10.3 The Licensee has a continuing responsibility to keep The Regents informed of the time large/small business entity status (as defined by the United States Patent and Trademark Office) of the report; o market introduction date of Patent Products; itself and o activities of sublicensees, if anyits sublicensees and Affiliates. 6.3 10.4 The Licensee will also shall report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) Licensed Product and/or Licensed Method in each country where the Licensee has sought marketing approvalin its immediately subsequent progress and royalty report. 6.4 10.5 After the first commercial sale of a Patent ProductLicensed Product and/or Licensed Method anywhere in the world, the Licensee will provide The Regents with shall make quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, 31 and November 30 of each year. Each such royalty report will cover the Licensee’s most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 show (a) the gross sales and Net Sales of Patent Licensed Products and/or Licensed Methods sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 ; (b) the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 each type of Licensed Product and/or Licensed Method sold; (c) the royalties, in U.S. dollars, payable hereunder with respect to Net Salessales of Licensed Products and/or Licensed Methods; and 6.4.4 (d) the method used to calculate the royalty; and (e) the exchange rates used, if any. 6.5 10.6 If no sales of Patent Licensed Products and/or Licensed Methods have been made during any reporting period after the first commercial sale of a Patent Productperiod, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28, 1998, and semi-annually thereafter, Licensee will submit to provide The Regents with a progress report covering activities by Licensee related to every six months beginning on August 31, 2000, and continuing until the development, including clinical trials and testing, of all Patent Products and the obtaining of the governmental approvals necessary for marketing. These progress reports will be provided to The Regents to cover the progress of the research and development of the Patent Products until their first commercial sale in the United States, Europe, and Japan for each of the following Product categories: Covered Product, Identified Product, and Services. 6.2 The progress reports submitted under Paragraph 6.1 will cover the development and testing of all Products, and the receipt of all governmental approvals necessary for the marketing of these Products. In particular, the progress reports will include, but not be limited to, the following topics directly related to Products so that The Regents may be able to determine the Licensee's progress of the development of Patent Productsin developing and testing Products and whether Licensee has met its diligence obligations set forth in Article 5 (Due Diligence) above: o • summary of work completed; o completed • key scientific discoveries • summary of work in progress; o progress • current schedule of anticipated anticipates events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as of the time of the report; o market introduction • anticipated date of Patent first commercial sale, which date shall not be required to be reported earlier than 6 months prior to such date, for Covered Products (if applicable), Identified Products; , and o Services (if applicable), in the United States, Europe and Japan • activities of Affiliates, Joint Ventures and sublicensees, if any. 6.3 The Licensee will also report to The Regents in its immediately subsequent progress the first date Licensee receives Profits and royalty report the date of first commercial sale of a Patent Product(s) each Product in each country where the Licensee has sought marketing approvalUnited States, Europe and Japan by reporting these dates in its subsequent progress and royalty reports. 6.4 After the first commercial sale of a Patent Product, the Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, and November 30 of each year. Each such royalty report will cover the most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 (a) the Sublicense Fees, Service Revenues, gross sales and Net Sales of Patent Products sold by the Licensee and reported to Licensee as its Affiliates, Joint Ventures, sublicensees, and the Profits based on Service Products sold by its sublicensees a third party during the most recently completed calendar quarter; 6.4.2 (b) the number of Patent Products Products; sold or distributed and the Profits received by Licensee the Licensee, its Affiliates, Joint Ventures, sublicensees, and reported to Licensee as the number of Service Products; sold or distributed by its sublicenseesa third party; 6.4.3 (c) the royaltiespatent applications and patents contained in Patent Rights that either claim the Products or were used to identify the Identified Products and Service Products. If neither Patent Rights claim the Products nor were the Patent Rights used to identify Identified Products and Service Products, then the Biological Materials or Non-Patent Products used to make or use the Products or identify the Identified Products and Service Products; (d) the royalties and Sublicense Fees paid in U.S. dollars, payable hereunder with respect to Net Sales; andUnited States currency; 6.4.4 (e) the exchange rates used, if any; and (f) the method used to calculate the royalty, including all deductions taken. 6.5 If no sales of Patent Products have been made on Products or no Profits have been received by Licensee during any reporting period after the first commercial sale of a Patent ProductProduct or the first date Profit were received, then a statement to this effect that fact is required.

PROGRESS AND ROYALTY REPORTS. 6.1 9.1. Beginning February 28May 31, 19982003, and semi-annually thereafter, Licensee will shall submit to The Regents Berkeley Lab a progress report covering Licensee's activities by Licensee related to the development, including clinical trials development and testing, testing of all Patent Licensed Products and the obtaining of the governmental approvals necessary for marketingmarketing Licensed Products. These Licensee shall make these progress reports will be provided to The Regents to cover until the progress later of the research and development completion of the Patent Products until their first milestones listed in Exhibit C or commercial sale in the United States.sales of any Licensed Product start. 8 of 25 L-03-1370 6.2 9.2. The progress reports submitted Licensee submits under Paragraph 6.1 will paragraph 9.1 must include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Products: o topics: 9.2.1. summary of work completed; o completed related to the requirements of Exhibit C; 9.2.2. key scientific discoveries; 9.2.3. summary of work in progress; o ; 9.2.4. current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as milestones; and 9.2.5. market plans for introduction of the time of the report; o market introduction date of Patent Licensed Products; and 9.2.6. number of full-time equivalent employees or agents (FTEs) working on the development of Licensed Products and o activities overall number of sublicensees, if anyFTEs employed by Licensee. 6.3 Licensee will also report to The Regents in its immediately subsequent progress and royalty report 9.3. Upon the date earlier of first commercial sale of a Patent Product(s) in each country where five years after the Licensee has sought marketing approval. 6.4 After Effective Date or after the first commercial sale of a Patent ProductLicensed Product anywhere in the world, Licensee will provide The Regents with shall make quarterly royalty reports to The Regents Berkeley Lab on or before each February 28, May 31, August 31, 31 and November 30 of each year. Each such royalty report will must cover the most recently completed calendar quarter and must show for all sales (or other disposition in accordance with paragraph 2.9): 9.3.1. the Selling Price of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales each type of Patent Products Licensed Product sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarterLicensee; 6.4.2 9.3.2. the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicenseeseach type of Licensed Product sold; 6.4.3 9.3.3. the royalties, in U.S. dollars, payable hereunder with respect to Net Salesunder this Agreement on those sales; 9.3.4. the exchange rates used in calculating the royalty due; 9.3.5. the royalties on government sales that otherwise would have been due under paragraph 7.10; and 6.4.4 the exchange rates used9.3.6. for each sublicense, if any: (1) the sublicensee; (2) the information set forth in paragraphs 9.3.1 to 9.3.5 for that sublicensee's sales or other disposition of Licensed Product. 6.5 9.4. If no sales of Patent Licensed Products have been made during any required reporting period after the first commercial sale of a Patent Productperiod, then Licensee shall make a statement to this effect is requiredeffect.

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28November 30, 1998, 1993 and semi-annually thereafter, Licensee will the licensee shall submit to The Regents a progress report covering the Licensee’s activities by Licensee related to the development, including clinical trials development and testing, of all Patent Products and the obtaining testing of the governmental approvals necessary for marketingProducts. These progress reports will shall cover the period beginning July 1 through December 31 and January 1 through June 30 respectively. These progress reports shall be made for the Technology Products and the Software Products) until the first commercial sale of such Technology Product and Software Products (or the functional equivalent of the Software Products) occurs anywhere in the world, provided, however, that such progress reports shall continue to be provided to The Regents to cover the progress of the research research, development and development commercialization of the Patent Products in the United States until their first commercial sale in the United States. 6.2 The progress reports submitted under Paragraph 6.1 will include, shall include but not be limited to, the following topics and such other topics as may be mutually agreed upon by the parties hereto so that The Regents may be able to determine the progress of the development of Patent Productsthe Products and may also be able to determine whether or not Licensee has met its diligence obligations set forth in Article 5 (DUE DILIGENCE) above: o • summary of work completed; o • summary of work in progress; o current schedule and, • market plans and introduction of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as of the time of the report; o market introduction date of Patent Products; and o activities of sublicensees, if any. 6.3 The Licensee will also agrees to report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale or Distribution of a Patent Product(s) each Product in the U.S. and in each country where the Licensee other country. This document has sought marketing approvalbeen redacted pursuant to a confidential treatment request. The * symbol denotes redacted information. 6.4 After the first commercial sale of a Patent Technology Product and a Software Product, the Licensee will provide The the Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, 31 and November 30 of each year. Each such royalty report will cover the Licensee’s most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 8.1 Beginning February 28, 1998, one year from the effective date recited on page one of this Agreement and semi-annually thereafter, the Licensee will shall submit to The Regents a progress report covering the Licensee's activities by Licensee related to the development, including clinical trials development and testing, testing of all Patent Products each Product and the obtaining of the governmental approvals necessary for marketing. These progress reports will shall be provided to The Regents to cover the progress of the research and development of the Patent Products Product until their its first commercial sale in the United States. 6.2 8.2 The progress reports submitted under Paragraph 6.1 will section 8.1 shall include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Productseach Product and may also be able to determine whether or not Licensee has met its diligence obligations set forth in Article 6 (DUE DILIGENCE) above: o - summary of work completed; o completed - key scientific discoveries - summary of work in progress; o progress - current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as - market plans for introduction of the time of the report; o market introduction date of Patent Products; and o each Product - activities of sublicensees, if any. 6.3 8.3 The Licensee will also agrees to report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) Product in each country where the Licensee has sought marketing approvalcountry. 6.4 8.4 After the first commercial sale of a Patent Product, the Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, 31 and November 30 of each year. Each such royalty report will cover the Licensee's most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28, 19981996, and semi-annually thereafter, Licensee will submit to The Regents a progress report covering activities by Licensee related to the development, including clinical trials and testing, of all Patent Products and the obtaining of the governmental approvals necessary for marketing. These progress reports will be provided to The Regents to cover the progress of the research and development of the Patent Products until their first commercial sale in the United States. 6.2 The progress reports submitted under Paragraph 6.1 will include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Products: o summary of work completed; o summary of work in progress; o current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as of the time of the report; o market introduction date of Patent Products; and o activities of sublicensees, if any. 6.3 Licensee will also report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) in each country where the Licensee has sought marketing approval. 6.4 After the first commercial sale of a Patent Product, Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, and November 30 of each year. Each such royalty report will cover the most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28, 19981996, and semi-annually thereafter, Licensee will submit to The Regents a progress report covering activities by Licensee related to the development, including clinical trials and testing, of all Patent Products and the obtaining of the governmental approvals necessary for marketing. These progress reports will be provided to The Regents to cover the progress of the research and development of the Patent Products until their first commercial sale in the United States. 6.2 The progress reports submitted under Paragraph 6.1 will include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Products: o • summary of work completed; o • summary of work in progress; o • current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates datas when said milestones have been met or will be met, as of the time of the report; o • market introduction date of Patent Products; and o • activities of sublicensees, if any. 6.3 Licensee will also report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) in each country where the Licensee has sought marketing approval. 6.4 After the first commercial sale of a Patent Product, Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, and November 30 of each year. Each such royalty report will cover the most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee Licenses as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 8.1 Beginning February 28March 31, 19982008, and semi-annually thereafter, Licensee will submit to The Regents a written progress report covering activities by Licensee Licensee's (and any Sublicensee's) activities, in the previous two calendar quarters, related to the development, including clinical trials development and testing, testing of all Patent Products Licensed Product and the obtaining of the governmental approvals necessary for marketingmarketing and selling Licensed Products, Licensed Method and Licensed Services. These progress Progress reports will be provided to The Regents to cover are required for each Licensed Product, Licensed Method and Licensed Service until the progress of the research and development of the Patent Products until their first commercial sale of that Licensed Product, Licensed Method or Licensed Service occurs in the United StatesU.S. and will be again required if commercial sales of such Licensed Product, Licensed Method or Licensed Service are suspended or discontinued for a period of more than six (6) months. 6.2 The progress 8.2 Progress reports submitted under Paragraph 6.1 8.1 will include, but are not be limited to, the following topics so that The Regents may be able to determine the progress topics: 8.2.1 a statement specifically addressing each diligence requirement of the development of Patent Products: o Article 7 (Due Diligence); 8.2.2 summary of work completed; o ; 8.2.3 key scientific discoveries; 8.2.4 summary of work in progress; o ; 8.2.5 current schedule of anticipated events or milestones specified milestones; 8.2.6 market plans for introduction of Licensed Product, Licensed Method, and Licensed Service; 8.2.7 a summary of resources (dollar value) spent in Paragraph 5.3 and the dates when said milestones have been met or will be metreporting period; and 8.2.8 Sublicensees' activities relating to the above items, as if there are any Sublicensees. 8.3 Licensee has a continuing responsibility to keep The Regents informed of the time small or large business entity status (as defined by the U.S. Patent and Trademark Office) of the report; o market introduction date of Patent Products; itself and o activities of sublicensees, if anyits Sublicensees. 6.3 8.4 Licensee will also report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) Licensed Product, Licensed Method and Licensed Service in each country where the Licensee has sought marketing approvalcountry. 6.4 8.5 After the first commercial sale of a Patent Licensed Product, Licensed Method or Licensed Service anywhere in the world, Licensee will provide The Regents with make quarterly royalty reports to The Regents on or before each February 2828 (for the quarter ending December 31), May 31 (for the quarter ending March 31), August 31, 31 (for the quarter ending June 30) and November 30 (for the quarter ending September 30) of each year. Each such royalty report will cover the Licensee's, and all Sublicensee's, if any, most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 8.5.1 the gross sales invoice prices and Net Sales of Patent Products sold by Licensee Licensed Product, Licensed Method and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarterLicensed Service; 6.4.2 8.5.2 the number of Patent Products each type of Licensed Product, Licensed Method or Licensed Service sold and the actual or distributed by Licensee and reported to Licensee as sold or distributed by its sublicenseesaverage sales price; 6.4.3 8.5.3 a listing of the payments for performance of Licensed Method or Licensed Service, or use of Licensed Product that contribute to Net Sales; 8.5.4 the royalties, in U.S. dollars, payable hereunder with respect hereunder; 8.5.5 the method used to Net Sales; calculate the royalty, specifying all deductions taken and the dollar amount of each such deduction and, in the case of Combination Products, the percentage of the actual sales price upon which the royalty is based; 6.4.4 8.5.6 Licensed Patent Rights covering each Licensed Product, Licensed Method or Licensed Service; 8.5.7 the Sublicense fees payable; 8.5.8 the amount of the cash equivalent of any non-cash consideration payable including the method used to calculate the non-cash consideration; 8.5.9 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.; and

PROGRESS AND ROYALTY REPORTS. 6.1 9.1 Beginning February 28March 31, 1998, 2001 and semi-annually thereafter, Licensee will shall submit to The Regents a written progress report covering Licensee's (and any Affiliate's or sublicensee's) activities by Licensee related to the development, including clinical trials development and testing, testing of all Patent Products Licensed Product and the obtaining of the governmental approvals necessary for marketing. These progress Progress reports will be provided to The Regents to cover are required for each Licensed Product until the progress of the research and development of the Patent Products until their first commercial sale of that Licensed Product occurs in the United StatesU.S. and shall be again required if commercial sales of such Licensed Product are suspended or discontinued. The Regents shall safeguard progress reports with the same degree of care as it exercises with its own data of a similar nature. 6.2 The progress 9.2 Progress reports submitted under Paragraph 6.1 will 9.1 shall include, but are not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Productstopics: o - summary of work completed; o - summary of work in progress; o - current schedule of anticipated events or milestones specified milestones; - market plans for introduction of Licensed Product; and - a summary of resources (dollar value) spent in Paragraph 5.3 and the dates when said milestones have been met or will be met, as reporting period. 9.3 Licensee has a continuing responsibility to keep The Regents informed of the time large or small business entity status (as defined by the U.S. Patent and Trademark Office) of the report; o market introduction date of Patent Products; itself and o activities of sublicensees, if anyits sublicensees and Affiliates. 6.3 9.4 Licensee will also shall report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) Licensed Product in each country where the Licensee has sought marketing approvalcountry. 6.4 9.5 After the first commercial sale of a Patent ProductLicensed Product anywhere in the world, Licensee will provide The Regents with shall make quarterly royalty reports to The Regents on or before each February 2828 (for the quarter ending December 31), May 31 (for the quarter ending March 31), August 31, 31 (for the quarter ending June 30 and November 30 (for the quarter ending September 30) of each year. Each such royalty report will cover the Licensee's most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 show (a) the gross sales and Net Sales of Patent Products Licensed Product sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 ; (b) the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 each type of Licensed Product sold; (c) the royalties, in U.S. dollars, payable hereunder with respect to Net Salessales of Licensed Product; and 6.4.4 (d) the method used to calculate the royalty; and (e) the exchange rates used, if any. 6.5 9.6 If no sales of Patent Products Licensed Product have been made during any reporting period after the first commercial sale of a Patent Productperiod, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28, 19981996, and semi-annually thereafter, Licensee will submit to The Regents a progress report covering activities by Licensee related to the development, including clinical trials and testing, of all Patent Products and the obtaining of the governmental approvals necessary *** Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. for marketing. These progress reports will be provided to The Regents to cover the progress of the research and development of the Patent Products until their first commercial sale in the United States. 6.2 The progress reports submitted under Paragraph 6.1 will include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Products: o summary of work completed; o summary of work in progress; o current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as of the time of the report; o market introduction date of Patent Products; and o activities of sublicensees, if any. 6.3 Licensee will also report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) in each country where the Licensee has sought marketing approval. 6.4 After the first commercial sale of a Patent Product, Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, and November 30 of each year. Each such royalty report will cover the most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.

PROGRESS AND ROYALTY REPORTS. 6.1 Beginning February 28August 31, 19981997, and semi-annually thereafter, Licensee will submit to The Regents a progress report covering activities by Licensee related to the development, including clinical trials and testing, of all Patent Products and the obtaining of the governmental approvals necessary for marketing. These progress reports will be provided to The Regents to cover the progress of the research and development of the Patent Products until their first commercial sale in the United States. 6.2 The progress reports submitted under Paragraph 6.1 will include, but not be limited to, the following topics so that The Regents may be able to determine the progress of the development of Patent Products: o summary of work completed; o summary of work in progress; o current schedule of anticipated events or milestones specified in Paragraph 5.3 and the dates when said milestones have been met or will be met, as of the time of the report; o market introduction date of Patent Products; and o activities of sublicensees, if any. 6.3 Licensee will also report to The Regents in its immediately subsequent progress and royalty report the date of first commercial sale of a Patent Product(s) in each country where the Licensee has sought marketing approval. 6.4 After the first commercial sale of a Patent Product, Licensee will provide The Regents with quarterly royalty reports to The Regents on or before each February 28, May 31, August 31, and November 30 of each year. Each such royalty report will cover the most recently completed calendar quarter of Licensee (October through December, January through March, April through June, and July through September) and will show: 6.4.1 the gross sales and Net Sales of Patent Products sold by Licensee and reported to Licensee as sold by its sublicensees during the most recently completed calendar quarter; 6.4.2 the number of Patent Products sold or distributed by Licensee and reported to Licensee as sold or distributed by its sublicensees; 6.4.3 the royalties, in U.S. dollars, payable hereunder with respect to Net Sales; and 6.4.4 the exchange rates used, if any. 6.5 If no sales of Patent Products have been made during any reporting period after the first commercial sale of a Patent Product, then a statement to this effect is required.