Common use of Timing of Royalty Payments Clause in Contracts

Timing of Royalty Payments. Royalty payments due under Section 4.5, above, shall be paid annually within [***] days following the end of each calendar year until the first License Year in which aggregate Net Sales across all Licensed Product and License Services reach $[***]. Thereafter, all royalty payments due under Section 4.5 shall be paid in quarterly installments, within [***] days following the end of each calendar quarter. During such time as royalty payments are made in quarterly installments, the applicable royalty rate for each quarter pursuant to Section 4.5(a) and (b) shall be determined based upon annual Net Sales for the preceding calendar year, and the royalty payment for the fourth calendar quarter of each calendar year shall be adjusted as necessary to resolve any over- or underpayment in each of the first three calendar quarters, based on the actual annual Net Sales.