Common use of Sales and Payment Clause in Contracts

Sales and Payment. (i) During the period in which PMC's rights to co-promote are exclusive (but for Aphton), PMC shall process the sales of the Product by PMC and Aphton on its Internal Accounts. (ii) PMC (subject to the approval of the Steering Committee) shall prepare a quarterly profitability report (the "Profitability Report"), setting forth the amount of actual Net Sales and Net Profit, and the actual amount of any Supplemental Royalty due to Aphton for such quarter, and estimated Net Sales, Net Profit and Supplemental Royalty due to Aphton for the quarter next commencing after preparation of the report. Each party shall be entitled to receive out of Net Sales all of its allowed Product Costs and Expenses (to the extent included in the P/L Account), following payment of the Base Royalty to Aphton. The parties agree that the Operating Plan will provide that in the event that Net Sales in any quarter are not sufficient to reimburse both parties their respective Product Costs and Expenses that the reimbursements will be made in a manner which will ensure the long-term efficient operation under this Agreement and reflect the cash flow needs of the parties, and that Product Costs and Expenses which are not reimbursed in any such quarter will be carried forward to subsequent quarters and fully reimbursed prior to any payments in respect of Net Profit. (iii) All payments due to Aphton hereunder shall be made on a monthly basis, based on projections of quarterly Net Sales, Product Costs and Expenses and Net Profits. At the end of each calendar quarter, any overpayment or underpayment (as determined by actual Net Sales, Product Costs and Expenses and Net Profits in the applicable quarter) shall be deducted from or added to (as applicable) the next monthly payment.