Common use of TIMING OF SALES Clause in Contracts

TIMING OF SALES. Horizon agrees that it and its Affiliates shall not, by any action or act of omission cause sales of Products that would have otherwise occurred prior to the end of the fifth anniversary of the Effective Date, to occur after the fifth anniversary of the Effective Date. Such actions or acts of omission may include, without limitation, announcing or implementing changes in the price of Products, or delaying the filling of orders. AHP shall have the right to audit, in accordance with Section 4.5.2 hereof all of Horizon's records reasonably necessary to verify compliance with this Section and if AHP determines that either Horizon or its Affiliates has taken any such actions or committed any such act of omission then, for purposes of the payment of royalties under Section 4.2 hereof, the Net Sales of Product made during the three months after the fifth anniversary of the Effective Date shall be treated as if such sales occurred prior to the fifth anniversary of the Effective Date.

Appears in 2 contracts

Sources: License Agreement (First Horizon Pharmaceutical Corp), License Agreement (First Horizon Pharmaceutical Corp)