Common use of Generic Equivalent Clause in Contracts

Generic Equivalent. If, in any quarterly royalty reporting period, (i) a third Party commences selling a Product which is a Generic Equivalent of the Licensed Product in a country in the Territory and (ii) such Unlicensed Unit Sales (as defined below) amount to the following percentages of Centocor's Unit Sales of the Licensed Product in such country in the same royalty reporting period, the average percentage royalty rate on total world-wide Net Sales (calculated annually as the sum of total royalty actually paid pursuant to Section 6.6 divided into Net Sales for the same **Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission. annual period) shall be reduced in such country in accordance with the percentages below and such lower royalty rate shall then apply on the Net Sales in such country as long as the Unlicensed Unit Sales amount to the particular percentage of Centocor's Unit Sales of the Licensed Product in such country in the same royalty reporting period. Unlicensed Unit Sales as a Royalty Rate Reduction* (% of Centocor Unit Sales) (% of world-wide average Royalty Rate) -------------------------- -------------------------------------- (Less than [**]% [**]% Equal to) (Greater than) [**]% (Less than [**]% [**]% Equal to) (Greater than) [**]% [**]% * A royalty rate reduction will, however, only be applicable if Centocor also experiences a decrease in Net Sales of the applicable Licensed Product in that country from the Net Sales of the applicable Licensed Product in the same royalty reporting period in the previous calendar year.

Generic Equivalent. If, in any quarterly royalty reporting period, (i) a third Party commences selling a Product product which is a Generic Equivalent of the Licensed Product in a country in the Territory and (ii) such Unlicensed Unit Sales (as defined below) amount to the following percentages of Centocor's ▇▇▇▇▇▇▇'▇ Unit Sales of the Licensed Product in such country in the same royalty reporting period, the average percentage royalty rate on total world-wide Net Sales (calculated annually as the sum of total royalty actually paid pursuant to Section 6.6 divided into Net Sales for the same **Certain portions of this exhibit have been omitted based upon a request for confidential treatment that has been filed with the Commission. The omitted portions have been filed separately with the Commission. annual period) shall be reduced in such country in accordance with the percentages below and such lower royalty rate shall then apply on the Net Sales in such country as long as the Unlicensed Unit Sales amount to the particular percentage of Centocor's ▇▇▇▇▇▇▇'▇ Unit Sales of the Licensed Product in such country in the same royalty reporting period. Unlicensed Unit Sales as a Royalty Rate Reduction* (as a % of Centocor ▇▇▇▇▇▇▇ Unit Sales) (% of world-wide average Royalty Rate) -------------------------- -------------------------------------- (Less than ------------------------------ ------------------- [* *] [* *]% ] [* *] [* *]% Equal to) (Greater than) ] [* *] [* *]% (Less than [**]% [**]% Equal to) (Greater than) [**]% [**]% ] * A royalty rate reduction will, however, only be applicable if Centocor ▇▇▇▇▇▇▇ also experiences a decrease in Net Sales of the applicable Licensed Product in that country from the Net Sales of the applicable Licensed Product in the same royalty reporting period in the previous calendar yearyear in the same country.