Common use of Place of Royalty Payment and Currency Conversions Clause in Contracts

Place of Royalty Payment and Currency Conversions. All royalties, with the exception of those payable on sales to customers in the United States, shall be paid by Schering from its office in Lucerne, Switzerland. Royalties payable on U.S. sales shall be paid directly to ICN by Schering Corporation from its offices in Kenilworth, New Jersey. All royalty payments shall be made in United States dollars to the extent that free conversion to United States dollars is permitted. Royalties payable on sales in countries other than the United States shall be calculated by multiplying the appropriate royalty rate times the sales in each currency in which they are made and converting the resulting amount into United States dollars at the rates of exchange used by Schering for reporting such sales for United States financial statement purposes. If, due to restrictions or prohibitions imposed by a national or international authority, payments cannot be made as aforesaid, the Parties shall consult with a view to finding a prompt and acceptable solution, and Schering will, from time to time, deal with such monies as ICN may lawfully direct at no additional out-of-pocket expense to Schering. Notwithstanding the foregoing, if royalties cannot be remitted to ICN for any reason within six (6) months after the end of the calendar quarter during which they are earned, then Schering shall be obligated to deposit the royalties in a bank account in Switzerland in the name of ICN. Royalties payable by Schering shall be net of any foreign withholding taxes due, it being understood that such withholding taxes are the obligation of ICN. Schering shall forward to ICN in a timely manner all tax receipts relating to such withholding taxes.

Place of Royalty Payment and Currency Conversions. All royalties, with the exception of those payable on sales to customers in the United States, shall be paid by Schering from its office in Lucerne, Switzerland. Royalties payable on U.S. sales shall be paid directly to ICN by Schering Corporation from its offices in Kenilworth, New Jersey. All royalty payments shall be made in United States dollars to the extent that free conversion to United States dollars is permitted. Royalties payable on sales in countries other than the United States shall be calculated by multiplying the appropriate royalty rate times the sales in each currency in which they are made and converting the resulting amount into United States dollars at the rates of exchange used by Schering for reporting such sales for United States financial statement purposes. If, due to restrictions or prohibitions imposed by a national or international authority, payments cannot be made as aforesaid, the Parties shall consult with a view to finding a prompt and acceptable solution, and Schering will, from time to time, deal with such monies as ICN may lawfully direct at no additional out-of-pocket expense to Schering. Notwithstanding the foregoing, if royalties cannot be remitted to ICN for any reason within six (6) months [REDACTED] after the end of the calendar quarter during which they are earned, then Schering shall be obligated to deposit the royalties in a bank account in Switzerland in the name of ICN. Royalties payable by Schering shall be net of any foreign withholding taxes due, it being understood that such withholding taxes are the obligation of ICN. Schering shall forward to ICN in a timely manner all tax receipts relating to such withholding taxes.