Common use of Payment of Royalties Clause in Contracts

Payment of Royalties. on Net Sales in the ROW. -------------------------------------------- 6.4.1 Within thirty (30) days after the end of each Calendar Quarter, GSK shall pay Adolor royalty payments based on Net Sales in such Calendar Quarter in the ROW during the ROW Term as follows: (a) ** percent (**%) for GI Products; and (b) ** percent (**%) for Adolor Products. The royalty payments made under this Section 6.4.1 shall be based on actual Net Sales for the first two (2) months of a Calendar Quarter and an estimate for the third month of the Calendar Quarter based upon projected Net Sales. Within sixty (60) days after the end of each Calendar Quarter, GSK shall calculate the actual amount of Net Sales for the third month of such Calendar Quarter and either credit or debit the difference between such actual and projected amount on the succeeding Calendar Quarter's royalty payment to Adolor. 6.4.2 For Collaboration Products in the ROW where there is Generic Competition and where the ROW Term has not expired pursuant to Section 1.125(a) or 1.125(b), on a Country-by-Country and Collaboration Product-by-Collaboration Product basis, royalty rates shall be reduced by ** percent (**%).

Payment of Royalties. on Net Sales in the ROW. -------------------------------------------- 6.4.1 Within thirty (30) days after the end of each Calendar Quarter, GSK shall pay Adolor royalty payments based on Net Sales in such Calendar Quarter in the ROW during the ROW Term as follows: (a) ** percent (**%) for GI Products; and (b) ** percent (**%) for Adolor Products. The royalty payments made under this Section 6.4.1 shall be based on actual Net Sales for the first two (2) months of a Calendar Quarter and an estimate for the third month of the Calendar Quarter based upon projected Net Sales. Within sixty (60) days after the end of each Calendar Quarter, GSK shall calculate the actual amount of Net Sales for the third month of such Calendar Quarter and either credit or debit the difference between such actual and projected amount on the succeeding Calendar Quarter's royalty payment to Adolor. 6.4.2 For Collaboration Products in the ROW where there is Generic Competition and where the ROW Term has not expired pursuant to Section 1.125(a) or 1.125(b), on a Country-by-Country and Collaboration Product-by-Collaboration Product basis, royalty rates shall be reduced by ** percent (**%).