definiens: shall mean attainment of annual - Net Sales ( as defined in Section 2.2.3 ) of at least $ 250, 000 . Except as provided in this Section, LICENSEE shall be granted an exclusiv~ right and license to market the Licensed Development _ - 2 -fuV\~d.evt-\-iQ\ lvett - tm*+ Requ.esW · II I Article 3 . and lor the Licensed Development Improvement in the Territory and LICENSOR shall not market directly or indirectly .the Licensed Develop.ent andlor the Licensed Development Improvement in the Territory . LICENSEEreagent test slides.2.2 . 1 From LICENSEE to LICENSOR LICENSEE shall pay to LICENSOR . from the date of the execution of this Agreement, royalties on the Licensed Development for a period_of sixteen ( 16 ) years or th duration of any Japanese ate on the Licensed Development, w ichever period is shorter