Common use of Reduced Royalty Term Clause in Contracts

Reduced Royalty Term. Subject to Section 19.11 and ARIAD SWISSCO’s offset rights, ARIAD SWISSCO shall pay to ARIAD US a royalty of [**] of Net Sales in each country in the Territory as to which the Full Royalty Term has expired. Such royalty obligation shall begin in each country in the Territory on the day after the Full Royalty Term has expired and continue until the [**] of such expiration (the “Reduced Royalty Term”). Further for clarity, after the expiration of the Reduced Royalty Term in each country in the Territory, no further royalties shall be due with respect to Net Sales in such country and the licenses granted to ARIAD SWISSCO hereunder shall become fully paid-up and royalty-free with respect to such country for the remainder of the Term.

Reduced Royalty Term. Subject to Section 19.11 and ARIAD SWISSCO’s offset rights, ARIAD SWISSCO shall pay to ARIAD US a royalty of [***] of Net Sales in each country in the Territory as to which the Full Royalty Term has expired. Such royalty obligation shall begin in each country in the Territory on the day after the Full Royalty Term has expired and continue until the [***] of such expiration (the “Reduced Royalty Term”). Further for clarity, after the expiration of the Reduced Royalty Term in each country in the Territory, no further royalties shall be due with respect to Net Sales in such country and the licenses granted to ARIAD SWISSCO hereunder shall become fully paid-up and royalty-free with respect to such country for the remainder of the Term.