Common use of Currency Conversion for Roche Net Sales Clause in Contracts

Currency Conversion for Roche Net Sales. Whenever calculation of Roche Net Sales requires conversion from any foreign currency, Roche shall convert the monthly amount of Roche Net Sales in such foreign currency into US dollars as computed in the central Roche currency conversion system, using the YTD average monthly rate of exchange at the time for such currencies as retrieved from the Reuters System used by Roche (or some other source agreed upon by the Parties for any particular country) for each month of the reporting period. If convenient for Roche, such conversion may be made initially into Swiss Francs and then into U.S. Dollars for purposes of calculating royalties, provided that Pharmasset is not disadvantaged by reason of such multiple conversions (e.g., that the conversion rates used by Roche do not reflect transaction costs of conversion). The currency conversion system used by Roche shall be subject to audit by Pharmasset as described in Section 7.4 and, if it is determined that the conversion system does not reflect the fair market value of the currencies in question, the above currency conversion process shall be modified as necessary to effect currency conversion at fair market value.