Common use of Transfer Price Adjustments Clause in Contracts

Transfer Price Adjustments. By December 1 of each calendar year -------------------------- Nipro shall provide to TheraSense a non-binding written estimate of its requirements of Strips (as defined in Exhibit A) for the upcoming calendar year (the "Estimated Annual Volume"). The Estimated Annual Volume shall be used to establish the Transfer Price for the Strips for the first quarter of the upcoming year. Thereafter, upon Nipro's submission of each quarterly forecast to TheraSense, if either party concludes that the annual purchase of Strips will be higher or lower than the Estimated Annual Volume so as to cause a different Transfer Price to obtain, the parties will agree on a price change for Strips for future shipments in such quarter. The objective of each quarterly price change will be to minimuze year-end credits or rebates between the parties. *** Confidential treatment requested Notwithstanding the foregoing, in no event shall Nipro be obligated to pay, or TheraSense be entitled to receive, more or less than the corresponding amount set forth on Exhibit B for the actual number of Strips purchased by Nipro in each calendar year. Within 30 days after the end of each calendar year, Nipro or TheraSense shall pay to the other any amounts due relating to underpayments accrued or overpayments made with respect to the Strips in such calendar year.