Common use of Generic Product Clause in Contracts

Generic Product. During the applicable Royalty Period for a particular Product and in a particular country, if a Generic Product is launched, and Net Sales for a Product in any Calendar Quarter following such launch decrease by at least [ * ] but less than [ * ] as compared to the amount of Net Sales for that Product in that country during the Calendar Quarter immediately preceding the first launch of a Generic Product, then the royalties due shall be reduced by [ * ] from what would otherwise have been due under this Section 3.3 for as long as a Generic Product is sold in such country or Net Sales in any Calendar Quarter following launch of such Generic Product remain between [ * ] to [ * ] less than the amount of Net Sales for that Product in that country during the Calendar Quarter immediately preceding the first launch of a Generic Product. During the applicable Royalty Term, for a particular Product and in a particular country, if a Generic Product is launched, and Net Sales in any Calendar Quarter following such launch decrease by more than [ * ] as compared to the amount of Net Sales for that Product in that country during the Calendar Quarter immediately preceding the launch of the Generic Product, then the royalties shall be reduced by [ * ] from what would otherwise have been due under this Section 3.3 for as long as a Generic Product is sold in such country or Net Sales in any Calendar Quarter following launch of such Generic Product remain at or below [ * ] of the amount of Net Sales for that Product in that country during the Calendar Quarter immediately preceding the first launch of a Generic Product.