Initial Transfer Price Rate Sample Clauses

Initial Transfer Price Rate. During the Transfer Price Term, Versartis shall be the exclusive supplier to Teijin of commercial supply of Finished Product. In consideration for the Finished Product provided by Versartis to Teijin for Commercial use, Teijin shall pay to GmbH a provisional transfer price (the “Transfer Price”) equal to a percentage of the per unit Net Sales price of Finished Product for each unit of Finished Product ordered by Teijin and delivered by Versartis, subject to Sections 7.4.2, 7.4.6, and 7.6. All payment of the Transfer Price will be calculated in Japanese yen and paid in U.S. dollars. With respect to the Lead Product Finished Product, such Transfer Price shall be equal to the percentage rates set forth in the table below (the “Transfer Price Rate”). With respect to Finished Product for all other Licensed Products, the Transfer Price Rate shall be equal to the percentage rates set forth in the table below; provided, however, that if Versartis is able to demonstrate to Teijin’s reasonable satisfaction, that Versartis’ Manufacturing Costs with respect to such other Finished Product is [ * ] percent ([ * ]%) higher than its Manufacturing Costs with respect to the Lead Product Finished Product, the Parties shall negotiate in good faith an adjustment to the Transfer Price below for such Licensed Product Finished Product, which adjusted Transfer Price reflects such increased Manufacturing Costs. Tier 1 Rate: To be in effect during the period of time from First Commercial Sale until both of the following have occurred: (i) a [ * ] indication is approved for a Licensed Product, and (ii) the aggregate Net Sales in a Fiscal Year across all Licensed Products have exceeded [ * ] Japanese yen (¥[ * ]) [ * ]% of Net Sales price [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.