Common use of Most Favored Distributor Clause in Contracts

Most Favored Distributor. 4.1 LipoMatrix agrees that the prices offered to its distributors in the European Union ("E.U.") will be not less than the lowest price ("the Lowest Price") at which Products are sold to subsidiaries of Collagen International in the E.U. (currently Collagen (UK) Ltd.) as of the date of this Agreement. In addition, LipoMatrix agrees that the prices at which Products are sold to its Latin American distributors will be not less than eighty-five percent (85%) of such Lowest Price. 4.2 LipoMatrix agrees that prior to entering a distribution agreement with a third party for Israel, Poland or Hungary, that it will discuss pricing for that agreement with Collagen International in an attempt to arrive at a mutually acceptable arrangement. 4.3 LipoMatrix agrees that three (3) years after the date of this Agreement, the payment terms granted to subsidiaries of Collagen International will be reviewed to ensure that those subsidiaries are treated fairly in comparison to other LipoMatrix distributors.