Practical Yield Sample Clauses
Practical Yield. Within fifteen (15) business days after the completion of production of the twentieth (20th) Batch of Product by NPI under this Agreement, NPI and CUSTOMER shall meet and, based on the experience of NPI during production of such first twenty (20) Batches, NPI and CUSTOMER shall agree upon an acceptable average yield of Product (number of tablets) produced from each Batch of API used by NPI (the “Acceptable Yield”). Within fifteen (15) business days after the end of each calendar quarter thereafter during the Term, NPI shall provide CUSTOMER with a report showing the actual yield of Product produced from each Batch of API used by NPI during such calendar quarter (the “Yield”). If the average Yield for all such Batches (the “Average Yield”) is less than the Acceptable Yield, NPI shall credit CUSTOMER with an amount equal to the product of (a) the Price per * Confidential material redacted and filed separately with the Commission. vial multiplied by 2 (two) multiplied by (b) the difference between the Acceptable Yield and the Average Yield multiplied by (c) the number of Batches accepted by CUSTOMER during such calendar quarter. At the end of each Year, NPI and CUSTOMER shall review the actual average Yield for all Batches accepted by CUSTOMER during such Contract Year. If such average Yield has been consistently greater or less than the Acceptable Yield during the course of such Year, the Acceptable Yield may be revised by mutual agreement in writing. The Acceptable Yield for the first Year shall be based on the actual yield of acceptable tablets produced during the processing of the Batches designated as the “commercial validation” lots and the next number of Batches required to bring the total number of Batches produced to twenty (20), adjusted by a mutually agreed loss factor for anticipated “typical commercial scale production losses”. In addition, the Acceptable Yield may be revised by mutual agreement in writing whenever significant changes are made to the production process. NPI shall endeavor in good faith to achieve the highest practical yield on all Batches.
Practical Yield. The Production Fee is based upon a guaranteed yield of vials of Product per Batch (the "Guaranteed Yield"). Within ten (10) days after the end of each Contract Quarter, Oread shall provide Praecis with a report showing the actual yield of Product produced from each Batch accepted by Praecis during such Contract Quarter (the "Yield"). If the average yield for all such Batches (the "Average Yield") is less than the Guaranteed Yield, Oread shall credit Praecis with an amount equal to the product of (a) the Production Fee per vial multiplied by 2 (two) multiplied by (b) the difference between the Guaranteed Yield and the Average Yield multiplied by (c) the number of Batches accepted by Praecis during such Contract Quarter. At the end of each Contract Year, Oread and Praecis shall review the average Yield for all Batches accepted by Praecis during such Contract Year. If such average Yield has been consistently greater or less than the Guaranteed Yield during the course of such Contract Year, the Guaranteed Yield may be revised by mutual agreement in writing. The Guaranteed Yield for the first Contract Year shall be based on the actual yield of acceptable vials filled during the Processing of the lots designated as the "commercial validation" lots and the first ten lots of Product filled after the completion of commercial validation, adjusted by a mutually agreed loss factor for anticipated "typical commercial scale production losses". In addition, the Guaranteed Yield may be revised by mutual agreement in writing whenever significant changes are made to the production process. Oread shall endeavor in good faith to achieve the highest practical yield on all Batches