Common use of Cost of Supply Clause in Contracts

Cost of Supply. Adolor shall supply such API Compound and such -------------- formulated Collaboration Products to GSK at Adolor' Cost of Goods therefor and GSK shall be responsible for shipping, insurance and other related expenses. For the time period from the Effective Date through **, the Cost of Goods for API Compound shall **, unless otherwise mutually agreed between the Parties. Thereafter, Adolor will use Commercially Reasonable Efforts to provide a Cost of Goods for API Compound **, unless otherwise mutually agreed between the Parties, to be adjusted for inflation commencing with the Calendar Year beginning January 1, 2004, using the Producer Price Index as published by the Bureau of Labor Statistics of the U.S. Department of Labor; provided Adolor will use Commercially Reasonable Efforts to decrease the cost of such API Compound and formulated Collaboration Products. GSK shall pay for such API Compound in advance to the extent that Adolor is required to make payments in advance to its Product Supplier.