definiens: shall mean : ( a ) the US, including its territories and possessions, and Canada ( collectiv ely, the ) ; and ( b ) Australia and New Zealand ( collectively, the ) . ” 4.Royalties Payable by [COMPANY] . The table of royalty rates applicable to tiers of aggregate annual Net Sales in the [COMPANY] Territory in Section 5.4(a ) of the Original Agreement is hereby replaced with the following tables of ( a ) royalty rates applicable to tiers of aggregate annual Net Sales by [COMPANY] and its Affiliates and Sublicensees in the North American Territory and ( b ) royalty ra tes applicable to tiers of aggregate annual Net Sales by [COMPANY] and its Affiliates ( but not by Sublicensees ) in the AUS / NZ Territory, respectively : Tiers of Aggregate Annual Net Sales by [COMPANY] and its Affiliates and Sublicensees in North Amer ican Territory Royalty Rate That portion of aggregate annual Net Sales of Products by [COMPANY] and its Affiliates and Sublicensees in the North American Territory in a calendar year that is less than or equal to $ [ * * * ] million [ * * * ] % That portion of aggregate annual Net Sales of Products by [COMPANY] and its Affiliates and Sublicensees in the North American Territory in a calendar year that is greater than $ [ * * * ] million and less than or equal to $ [ * * * ] billion