Common use of Third Party Stacking Provision Clause in Contracts

Third Party Stacking Provision. If Licensee must obtain a license from a Third Party to avoid infringement of such Third Party’s rights in order to manufacture, use, or commercialize a given Licensed Product in the New Vector Field and if the royalties required to be paid to such Third Party for such license, together with those payable to Licensor, in the aggregate, exceed **** of Net Sales for any Licensed Product in the New Vector Field, then the royalty ****Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. owed to Licensor for that Licensed Product will be reduced by an amount calculated as follows: R = (C * (A / (A+B)) Where R = reduction of Licensor royalty, A = unreduced Licensor royalty, B = sum of all Third Party royalties, C = increment of projected total royalty above **** Example Calculation: assume i) all Third Party royalties = ****

Third Party Stacking Provision. If Licensee must obtain a license from a Third Party to avoid infringement of such Third Party’s rights in order to manufacture, use, or commercialize a given Licensed Product in the New Vector Field and if the royalties required to be paid to such Third Party for such license, together with those payable to Licensor, in the aggregate, exceed **** of Net Sales for any Licensed Product in the New Vector Field, then the royalty ****Certain information has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. owed to Licensor for that Licensed Product will be reduced by an amount calculated as follows: R = (C * (A / (A+B)) Where R = reduction of Licensor royalty, A = unreduced Licensor royalty, B = sum of all Third Party royalties, C = increment of projected total royalty above **** Example Calculation: : assume i) all Third Party royalties = ****