Common use of Net Receipts Clause in Contracts

Net Receipts. (a) thirty per cent (30%) of Net Receipts received during that period of the Term prior to the initiation of a Phase I Study; (b) twenty per cent (20%) of Net Receipts received during that period of the Term commencing upon the initiation of the Phase I Study and before the completion of a Phase IIa Proof of Concept Study; (c) ten per cent (10%) of Net Receipts received during that period of the Term commencing upon the completion of a Phase IIa Proof of Concept Study. (d) A royalty on Net Receipts in relation to royalties received by Licensee or an Affiliate from a sub-licensee shall only be payable: (i) if at the time of sale by the sub-licensee the sale of the Product is covered by a Valid Claim in the country of sale; (ii) if at the time of sale by the sub-licensee there is Orphan Drug Exclusivity for the Product in the country of sale; or (iii) in relation to the first Product to achieve First Commercial Sale in any country of the Territory, until the last to occur of (a) the expiration of the last Valid Claim covering the Product in the country of sale, (b) the expiration of Orphan Drug Exclusivity for the Product in the country of sale; or (c) fifteen years (15) from the date of the First Commercial Sale of such Product in any country of the Territory, provided that such period follows the expiration of the last Valid Claim in the applicable country of sale. (e) If the royalty on Net Receipts relates to a Combination Product, the royalty rates in Clauses 6.1.3(a), (b) and (c) shall not be reduced by more than [***].