Common use of Royalty on Products Clause in Contracts

Royalty on Products. EyeTech shall pay Gilead a royalty payment on Net Sales of Products that are made or sold during the Royalty Term and that are sold by EyeTech, its Affiliates or sublicensees (the "Royalty") according to the following rates, as adjusted in accordance with Sections 3.3(b) below: (i) [**] percent ([**]%) of Net Sales in the United States for the first [**] million dollars ($[**]) in Net Sales in the United States in a given Calendar Year; (ii) [**] percent ([**]%) of Net Sales in the United States for the next [**] dollars ($[**]), up to and including, [**] dollars ($[**]) in Net Sales during the same Calendar Year; (iii) [**] percent ([**]%) of Net Sales in the United States in excess of [**] dollars ($[**]) during the same Calendar Year; and (iv) [**] percent [**]%) of Net Sales outside the United States in the same Calendar Year. By way of example, if, in the year 2005, EyeTech Net Sales in the United States were equal to [**] dollars ($[**]), and [**] dollars ($[**]) outside the United States, then the Royalty payable to Gilead hereunder would equal [**] dollars ($[**]), calculated in the following manner: AMOUNT OF NET SALES ROYALTY RATE ROYALTY ---------------------------- ------------ ------- First $[**] (United States) [**]% $ [**] Next $[**] (United States) [**]% $ [**] Next $[**] (United States) [**]% $ [**] $[**] (outside United States) [**]% $ [**] ---------------------------- ------ Total Royalty $ [**] By way of further example, if, through the second Calendar Quarter in the year 2005, EyeTech Net Sales in the United States were equal to [**] dollars ($[**]), and [**] dollars ($[**]) outside the United States, then the Royalty payable to Gilead hereunder after such Calendar Quarter would equal [**] dollars ($[**]), calculated in the following manner: AMOUNT OF NET SALES ROYALTY RATE ROYALTY ------------ ------- First $[**] (United States) [**]% $ [**] Next $[**] (United States) [**]% $ [**] $[**] (outside United States) [**]% $ [**] ---------------------------- ------ Total Royalty $ [**]

Royalty on Products. EyeTech shall pay Gilead a royalty payment on Net Sales of Products that are made or sold during the Royalty Term and that are sold by EyeTech, its Affiliates or sublicensees (the "“Royalty"”) according to the following rates, as adjusted in accordance with Sections 3.3(b) below: (i) [**] percent ([**]%) of Net Sales in the United States for the first [**] million dollars ($[**]) in Net Sales in the United States in a given Calendar Year; (ii) [**] percent ([**]%) of Net Sales in the United States for the next [**] dollars ($[**]), up to and including, [**] dollars ($[**]) in Net Sales during the same Calendar Year; (iii) [**] percent ([**]%) of Net Sales in the United States in excess of [**] dollars ($[**]) during the same Calendar Year; and (iv) [**] percent ([**]%) of Net Sales outside the United States in the same Calendar Year. By way of example, if, in the year 2005, EyeTech Net Sales in the United States were equal to [**] dollars ($[**]), and [**] dollars ($[**]) outside the United States, then the Royalty payable to Gilead hereunder would equal [**] dollars ($[**]), calculated in the following manner: AMOUNT OF NET SALES ROYALTY RATE ROYALTY ---------------------------- ------------ ------- First $[**] (United States) [**]] % $ [**] Next $[**] (United States) [**]] % $ [**] Next $[**] (United States) [**]] % $ [**] $[**] (outside United States) [**]] % $ [**] ---------------------------- ------ Total Royalty $ [**] By way of further example, if, through the second Calendar Quarter in the year 2005, EyeTech Net Sales in the United States were equal to [**] dollars ($[**]), and [**] dollars ($[**]) outside the United States, then the Royalty payable to Gilead hereunder after such Calendar Quarter would equal [**] dollars ($[**]), calculated in the following manner: AMOUNT OF NET SALES ROYALTY RATE ROYALTY ------------ ------- First $[**] (United States) [**]] % $ [**] Next $[**] (United States) [**]] % $ [**] $[**] (outside United States) [**]] % $ [**] ---------------------------- ------ Total Royalty $ [**]