Common use of Initial Products Clause in Contracts

Initial Products. 1. The Purchase Price for Initial Products intended for Commercial Use purchased prior to that date which is the second anniversary of the First Commercial Sale of the first Initial Product in any country in the E.U. shall equal [*] of the Net Selling Price of such Initial Product; provided, however, that if Focal's Direct Cost of supplying such Initial Product to Ethicon is greater than [*] of the Net Selling Price of such Initial Product, then the Purchase Price shall equal [*]. Notwithstanding the foregoing, and any provision in this Agreement pursuant to which the Purchase Price is subject to a reduction, in no event shall the Purchase Price be less than [*] per unit of such Initial Product. 2. The Purchase Price for Initial Products intended for Commercial Use purchased on or after that date which is the [*] of the First Commercial Sale of the first Initial Product in any country in the E.U. shall be (a) the applicable percentage of the Net Selling Price of such Initial Product set forth in Exhibit G, part 1, if (1) but for the fact that Focal is supplying such Initial Product, Ethicon would be obligated to pay a royalty to Focal on the sale of such Initial Product in the Territory pursuant to Section 6(d) and (2) the making, using or selling of such Initial Product in a country in the Territory meets any of the Requirements for Full Royalty, or (b) the applicable percentage of the Net Selling Price of such Initial Product set forth in Exhibit G, part 2, if (1) but for the fact that Focal is supplying such Initial Product, Ethicon would be obligated to pay a royalty to Focal on the sale of such Initial Product in the Territory pursuant to * Confidential treatment has been requested for marked portion

Initial Products. 1. The Purchase Price for Initial Products intended for Commercial Use purchased prior to that date which is the second anniversary of the First Commercial Sale of the first Initial Product in any country in the E.U. shall equal [*] of the Net Selling Price of such Initial Product; provided, however, that if Focal's Direct Cost of supplying such Initial Product to Ethicon is greater than [*] of the Net Selling Price of such Initial Product, then the Purchase Price shall equal [*]. Notwithstanding the foregoing, and any provision in this Agreement pursuant to which the Purchase Price is subject to a reduction, in no event shall the Purchase Price be less than [*] per unit of such Initial Product. 2. The Purchase Price for Initial Products intended for Commercial Use purchased on or after that date which is the [*] of the First Commercial Sale of the first Initial Product in any country in the E.U. shall be (a) the applicable percentage of the Net Selling Price of such Initial Product set forth in Exhibit G, part 1[*], if (1) but for the fact that Focal is supplying such Initial Product, Ethicon would be obligated to pay a royalty to Focal on the sale of such Initial Product in the Territory pursuant to Section 6(d) and (2) the making, using or selling of such Initial Product in a country in the Territory meets any of the Requirements for Full Royalty, or (b) the applicable percentage of the Net Selling Price of such Initial Product set forth in Exhibit G, part 2[*], if (1) but for the fact that Focal is supplying such Initial Product, Ethicon would be obligated to pay a royalty to Focal on the sale of such Initial Product in the Territory pursuant to * Confidential treatment has been requested for marked portion