Common use of Generic Reduction Clause in Contracts

Generic Reduction. If, in any country in the Territory during the Royalty Term for a Licensed Product, a Generic Product to such Licensed Product is sold, then from the [* * *] and for all calendar quarters thereafter during which the Generic Product continues to be sold in such country, the royalty applicable to sales of such Licensed Product in such country shall be [* * *] of Net Sales of such Licensed Product in such country; provided, however, that if, prior to the expiration of the last-to-expire Valid Claim in any Virobay Patent in such country claiming the composition of matter, manufacture or method of use of such Licensed Product for an Indication for which Regulatory Approval has been obtained, Virobay owes royalties under the [* * *] with respect to sales of such Licensed Product in such country, the royalty payable by ▇▇▇ shall be increased to the royalty owed by Virobay, for so long as such royalty is owed under [* * *].