definiens: ) in which any Public Disclosure ( as defined below)is made, [COMPANY] shall pay Crescendo royalties with respect tosales of Elmiron -Registered Trademark- in the United Statesand Canada as follows : ( i ) in the Initial Quarter and thefollowing three calendar quarters, the greatest of ( 1 ) 2.5%of Excess Net Sales ( as defined below ), ( 2 ) 1 % of Excess NetSales plus an additional 0.1 % of such Excess Net Sales foreach full one million dollars of Development Payments paidby Crescendo or ( 3 ) 1 % of Net Sales ( as defined in theDevelopment Agreement ) ; and ( ii ) in each subsequent calendarquarter, the greatest of ( 1 ) 3.0 % of Excess Net Sales ( asdefined below ), ( 2 ) 1 % of Excess Net Sales plus anadditional 0.1 % of such Excess Net Sales for each full onemillion dollars of Development Payments paid by Crescendo or(3 ) 1 % of Net Sales