Common use of VA Net Sales Clause in Contracts

VA Net Sales. Until the earlier to occur of the date of the termination of this Agreement or December 31, 2005, unless the VA Contract is earlier terminated, Reliant shall receive additional compensation in an amount equal to [***] percent ([***]%) of VA Net Sales. For the avoidance of doubt, other than with respect to Article 6.2(b) above, the amount of VA Net Sales will be excluded from the calculation of Net Sales and will not entitle Reliant to receive any other compensation pursuant to this Article VI. Payment of such compensation shall be made within thirty (30) days following the end of each Month during the Term by wire transfer of immediately available funds to an account designated by Reliant. Such monthly payments shall be calculated based on the VA claims made during the applicable Month, with a “true-up” to occur, for a period of six (6) months following the earlier of the termination of the VA Agreement or the expiration of the Term, with respect to each such Month to account for any lag in chargeback submissions. Any such “true-up” amounts due hereunder shall be paid by Reliant to Novartis within thirty (30) days following invoice by Novartis. The parties acknowledge that Reliant owes Novartis an amount equal to $[***] with respect to VA Net Sales for periods prior to March 1, 2005, as provided on Schedule 6.2(c) attached hereto. Novartis shall have the right to offset said amount against any Monthly Payment Amount calculated and payable following the New Effective Date pursuant to Article 6.3(a) below. Such offset by Novartis shall be the sole recourse by Novartis in respect of such $[***] unless this Agreement is terminated before such amount is offset in full, in which event the unpaid balance of such amount shall be payable in full by Reliant within thirty (30) days following the date of invoice by Novartis.