Common use of Rest of World Clause in Contracts

Rest of World. With respect to sales of Licensed Product in all countries of the Territory other than Royalty Major Markets, royalties would be payable, on a Licensed Product-by-Licensed Product basis, in any country starting with the First Commercial Sale of Licensed Product in such country and expiring on a country-by-country basis upon the later of (a) the last to expire Patent owned or Controlled by Novacea that covers the Licensed Product or its use in the Field and provides commercial exclusivity for such Licensed Product, and (b) the end of the first calendar quarter of [*] (the “ROW Royalty Term” and together with the Major Market Royalty Term, the “Royalty Term”), provided, however, that on a country-by-country, Licensed Product-by-Licensed Product basis, the royalties payable by Schering hereunder would be automatically reduced [*] beginning [*] following the date on which unit sales of Generic Products that have entered the market in such country for the then current calendar month are, in the aggregate, greater than [*] percent [*] of the unit sales of the Licensed Product.