Common use of Excess Orders Clause in Contracts

Excess Orders. Teva may deliver to Alexza a Purchase Order for Product volumes in excess of those specified in any prior Supply Forecast and/or in excess of the percentage variances permitted in Section 6.12(d). Alexza shall provide notification to Teva as soon as practicable but in any event within [ * ] Business Days after the delivery of such Supply Forecast, of any excess that Alexza determines it will deliver to Teva. Alexza shall use Commercially Reasonable Efforts to manufacture any quantity of the Product ordered by Teva in excess of [ * ] of the committed quantity determined in accordance with Section 6.12(c), but in any event Alexza’s failure to manufacture any such excess quantity shall not be a breach of this Agreement. Teva shall bear any reasonable increase in the manufacturing costs of the Product supplied in excess of the quantities accepted by Alexza under Section 6.12(c); provided that such increase shall be approved by Teva prior to Alexza’s undertaking the manufacture of such excess quantity and incurring such increase. [ * ] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Appears in 2 contracts

Sources: License and Supply Agreement (Alexza Pharmaceuticals Inc.), License and Supply Agreement (Alexza Pharmaceuticals Inc.)