Common use of OBLIGATION TO PAY RUNNING ROYALTY Clause in Contracts

OBLIGATION TO PAY RUNNING ROYALTY. The obligation to pay running royalty to Fuisz under this Article 4 shall be imposed only once with respect to the same unit of Licensed Product regardless of the number of Licensed Patents or aspects of Technology pertaining thereto. There shall be no obligation to pay running royalties to Fuisz under this Article 4 on sales of Licensed Products between Kos and its Affiliates and its Sublicensees but in such instances the obligation to pay running royalty shall arise based on Net Sales by Kos or its Affiliates or its Sublicensees. Payments due under this Article 4 shall be deemed to accrue when Licensed Products are shipped or billed, whichever event shall first occur.