Common use of Agreement Year 2005 Clause in Contracts

Agreement Year 2005. For Agreement Year 2005, subject to Article 6.2(b), Reliant shall be compensated based upon a percentage of incremental Net Sales achieved above a pre-set and fixed Annual Net Sales Baseline. Exhibit 1 outlines the Annual Net Sales Baseline for Agreement Year 2005 and the agreed percentage of Net Sales above the baseline that will be paid to Reliant by Novartis for Agreement Year 2005. Exhibit 2 presents a Seasonalized Net Sales Baseline on a Monthly basis for Agreement Year 2005. During Agreement Year 2005, Reliant will be compensated on a Monthly basis for Net Sales above the Seasonalized Net Sales Baseline using the annual percentages outlined in Exhibit 1 (each a “Monthly Payment”), as further described in Article 6.3 hereof.