Common use of Demonstration Units Clause in Contracts

Demonstration Units. Medtronic will be entitled to purchase from CMI a reasonable number of System demonstration units, as mutually determined by CMI and Medtronic, for use in selected Medtronic training centers at a transfer price equal to CMI's fully burdened manufacturing costs reasonably determined in accordance with generally accepted accounting principles (excluding freight, duties and customs, and any extraordinary start-up costs). This "reasonable number of demonstration units" will be consistent with the number of Medtronic "training centers" for the Systems in North America. Medtronic and CMI will agree by December 31, 1997 upon terms pursuant to which CMI will be entitled to reasonable access and use of such Medtronic "training centers" in North America. During the fourth quarter of calendar 1998 or upon earlier availability, Medtronic may purchase two (2) demonstration Systems for use in Medtronic's "training centers" in North America at a price equal to [*]. Payment for all demonstration units purchased by Medtronic shall be made within 15 days of CMI's invoice. No commission shall be payable by CMI to Medtronic with respect to such sales of demonstration units. Medtronic shall not be entitled to resell such demonstration units.