definiens: ( as defined in theACE-011 Agreement ) pursuant to the ACE-011 Agreement, the royalty payments to be paid by [COMPANY] toAcceleron under Section 5.6.1 shall be replaced with the following royalty payments : ( i ) [ * * * ] of annual Net Sales in each region of the Territory during a Contract Year for thatportion of the annual Net Sales in such region that is less than or equal to [ * * * ] ; ( ii ) [ * * * ] of annual Net Sales in each region of the Territory during a Contract Year for thatportion of the annual Net Sales in such region that is greater than [ * * * ] and less than or equal to [ * * * ] ; and ( iii ) [ * * * ] of annual Net Sales in each region of the Territory during a Contract Year for thatportion of the annual Net Sales in such region that is greater than [ * * * ] ; provided that the applicable thresholds above will be determined on a region - by - region basis with each ofthe following areas of the Territory treated as one region : ( x ) North America and ( y ) the rest of the Territory