Common use of LINE USE FEE Clause in Contracts

LINE USE FEE. (a) During the term of this Agreement (including any extensions), DPT shall pay Connetics a line use fee any time DPT uses the R&D line previously funded by Connetics, or the production or laboratory lines of the aerosol filling facility, to manufacture any product for its affiliates or a third party. (b) The amount of the line use fee shall be calculated as follows (or in such different manner as the Parties may agree in the future): [*] The line use fee is due and payable to Connetics sixty (60) days after DPT first invoices the third party for manufacturing the product. (c) The line use fee payable pursuant to this SECTION 2.2 shall be over and above any royalty required to be paid to manufacture under Connetics' patents. It is understood that the manufacture of any product that infringes any Connetics patent will require payment of a patent royalty by DPT or the third party in an amount to be negotiated at the time.