Common use of Royalties and Fees Clause in Contracts

Royalties and Fees. 4.1 As partial consideration for the rights granted to Licensee under this Agreement and as a nonrefundable and non-creditable license fee, Licensee shall pay to Salk (a) Thirty Thousand Dollars ($30,000.00) in cash, due upon execution, and (b) [**] Dollars ($[**]) in cash annually thereafter for the Term, beginning on the one-year anniversary date of the Effective Date. The annual fee is non-refundable and not subject to proration. 4.2 Licensee agrees to pay to Salk the sum of five thousand dollars ($5,000) in cash, due upon execution, as payment of a share of the cost of general administration, filing, prosecution and maintenance of the Patent Rights. 4.3 Licensee shall pay to Salk the following royalties: (i) [**] percent ([**]%) on Net Sales of Licensed Products up to [**] dollars ($[**]), calculated from the Effective Date, (ii) [**] percent ([**]%) on Net Sales of Licensed Products [**] dollars ($[**]) up to [**] dollars ($[**]), calculated from the Effective Date, (iii) [**] percent ([**]%) on Net Sales of Licensed Products over [**] dollars ($[**]), calculated from the Effective Date. 4.4 All payments made to Salk under Paragraphs 4.1 and 4.2 of this Agreement shall be made on the dates defined therein. Royalty payments made to Salk under Paragraph 4.3 of this Agreement shall be made quarterly. All payments made to Salk under this Agreement shall be made by wire transfer to the account of Salk at: Send wire to: Bank of America, San Francisco, CA Route No. (ABA#): ▇▇▇▇-▇▇▇▇-▇ Swift No.: ▇▇▇▇▇▇▇▇ Credit to: The Salk Institute for Biological Studies Account No.: [**] Branch Name: B of A San Diego Commercial Banking Office #1450 Additional Message: Sender’s name, purpose of wire, & Attn: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, Patent and License Administrator or any other bank account that may be notified in writing by Salk to Licensee from time to time. 4.5 No royalty payment shall be altered by any tax on royalties which may be imposed on, applied to or withheld from the payment. Licensee shall be responsible for the satisfaction of the taxes so that the payments to Salk are not reduced thereby.

Royalties and Fees. 4.1 As partial consideration for the rights granted to Licensee under this Agreement and as a nonrefundable and non-creditable license fee, Licensee shall pay to Salk (a) Thirty Thousand Dollars ($30,000.00) in cash, due upon execution, and (b) [**] Thirty Thousand Dollars ($[**]30,000) in cash annually thereafter for the Term, beginning on the one-year anniversary date of the Effective Date. The annual fee is non-refundable and not subject to proration. 4.2 Licensee agrees to pay to Salk the sum of five thousand dollars ($5,000) in cash, due upon execution, as payment of a share of the cost of general administration, filing, prosecution and maintenance of the Patent Rights. 4.3 Licensee shall pay to Salk the following royalties: (i) [**] percent ([**]%) on Net Sales of Licensed Products up to [**] dollars ($[**]), calculated from the Effective Date, (ii) [**] percent ([**]%) on Net Sales of Licensed Products [**] dollars ($[**]) up to [**] dollars ($[**]), calculated from the Effective Date, (iii) [**] percent ([**]%) on Net Sales of Licensed Products over [**] dollars ($[**]), calculated from the Effective Date. 4.4 All payments made to Salk under Paragraphs 4.1 and 4.2 of this Agreement shall be made on the dates defined therein. Royalty payments made to Salk under Paragraph 4.3 of this Agreement shall be made quarterly. All payments made to Salk under this Agreement shall be made by wire transfer to the account of Salk at: Send wire to: Bank of America, San Francisco, CA Route No. (ABA#): ▇▇▇▇-▇▇▇▇-▇ Swift No.: ▇▇▇▇▇▇▇▇ Credit to: The Salk Institute for Biological Studies Account No.: [**] Branch Name: B of A San Diego Commercial Banking Office #1450 Additional Message: Sender’s name, purpose of wire, & Attn: ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, Patent and License Administrator or any other bank account that may be notified in writing by Salk to Licensee from time to time. 4.5 No royalty payment shall be altered by any tax on royalties which may be imposed on, applied to or withheld from the payment. Licensee shall be responsible for the satisfaction of the taxes so that the payments to Salk are not reduced thereby.