Common use of Royalty on Certain Pre-Approval Net Sales Clause in Contracts

Royalty on Certain Pre-Approval Net Sales. As further consideration for the rights granted to Adapt hereunder, Adapt shall pay to Lightlake a royalty of sixteen percent (16%) of Net Sales of the First Product to the First Responder Market that are made prior to the First Commercial Sale and prior to Regulatory Approval of the First Product, up to aggregate Net Sales of Three Million One Hundred Twenty-Five Thousand Dollars ($3,125,000) (i.e., the maximum royalty payable pursuant to this Section 5.4.2 shall equal $500,000). If royalties are paid under this Section 5.4.2 in the Calendar Year of or before the First Product receives Regulatory Approval, then the initial royalties contemplated by Section 5.4.1 shall be payable only for that portion of aggregate Net Sales during such Calendar Year that exceeds such Net Sales to the First Responder Market.

Royalty on Certain Pre-Approval Net Sales. As further consideration for the rights granted to Adapt hereunder, Adapt shall pay to Lightlake a royalty of sixteen *** REDACTED *** percent (16%) of Net Sales of the First Product to the First Responder Market that are made prior to the First Commercial Sale and prior to Regulatory Approval of the First Product, up to aggregate Net Sales of Three Million One Hundred Twenty-Five Thousand Dollars ($3,125,000) *** REDACTED *** (i.e., the maximum royalty payable pursuant to this Section 5.4.2 shall equal $500,000$ *** REDACTED ***). If royalties are paid under this Section 5.4.2 in the Calendar Year of or before the First Product receives Regulatory Approval, then the initial royalties contemplated by Section 5.4.1 shall be payable only for that portion of aggregate Net Sales during such Calendar Year that exceeds such Net Sales to the First Responder Market.