definiens: means no more than one hundred ten ( 110 ) patients for whom a Product is prescribed for a Non - Permitted In dication as of the Effective Date . The Parties agre e to send to prescribing physicians a joint letter in the for m attached hereto as Exhibit D. The license granted under this Section 3.1(a ) shall be royalty - free with respect t o Net Sales arising from sales to the Existing Pati ents during the first three ( 3 ) months after the Effective Date . If any such sales to Existing Patients occur after su ch three ( 3)-month period, such sales shall be royalty - bearing p ursuant to Section 7.1(a)(i ), but only until the da te which is twelve ( 12 ) months after the Effective Date . Any sa les of a Product by [COMPANY] to such Existing Patient s after such twelve ( 12)-month period, or any sales of a Pr oduct by [COMPANY] to any patient who is not an Existi ng Patient for the treatment of any Non - Permitted Indication a t any time after the Effective Date, shall be evide nce of Material Breach by [COMPANY] of this Section 3.1(a ) an d / or a violation of the Permanent Injunction, and T ercica may take any action and/or seek any remedy in law o r equity for such breach or violation