Common use of PAYABLE BY GI TO METAMORPHIX Clause in Contracts

PAYABLE BY GI TO METAMORPHIX. GI shall pay to MetaMorphix a royalty on sales made by GI, its Affiliates or sublicensees of each GI Type B Product, the manufacture, use or sale of which is covered by a Valid Claim under the applicable Factor Patent Rights, which royalty shall be calculated using the following formula: royalty =A-(B+C+D+E+F+G) where A equals eight percent (8%) of the Net Sales obtained from such sales of such GI Type B Product; B equals the royalty payable by GI to JHU under Section 7.3.3.2 below; C equals either (i) four percent (4%) of Net Sales obtained from such sales of such GI Type B Product, if the First Member of that Product's TGF-(beta) Class is a BMP; OR (ii) two percent (2%) of Net Sales obtained from such sale of such MetaMorphix Product, if the First Member of that Product's TGF-(beta) Class is a Collaborative Factor of GI and JHU or a Collaborative Factor of GI and MetaMorphix; D equals one percent (1 %) of the Net Sales obtained from such sales of such GI Type B Product, multiplied by the number (if any) of Subsequent Members in such GI Type B Product's TGF-(beta) Class (not to exceed three (3) which are BMPs;