Common use of Short-Term Forecasts Clause in Contracts

Short-Term Forecasts. Upon execution of this Agreement, and thereafter at least thirty (30) days prior to the first (1st) day of each succeeding calendar quarter, Rugby will furnish HMRI with a rolling forecast of the quantities of each Product, by package size (SKU) and finished dosage form, that Rugby intends to order during the twelve (12) month period commencing with that calendar quarter, stipulating periodic delivery requirements. The first three months of such forecast shall constitute a binding commitment of Rugby to purchase such quantities evidenced by purchase orders to HMRI pursuant to Section 2.6 herein. In the event it is reasonably necessary for HMRI to purchase active ingredient for Product beyond the binding commitment of Rugby, HMRI may request written authorization from Rugby regarding such purchase. In the event Rugby authorizes such purchase, or authorizes a portion of such purchase, Rugby will be responsible for the costs of the active ingredient authorized to be purchased which is not used by HMRI in the manufacture of Product or other products. In the event Rugby does not authorize such purchase, HMRI shall not be required (but shall use commercially reasonable efforts) to meet Rugby's forecasts or orders with respect to the Products manufactured with such active ingredient. Rugby will be required to purchase that percentage of the quantity of each Product specified in the short-term forecast for successive quarters as follows: Percentage of Product indicated Three Month Period in the forecast that Rugby is of the forecast is required to purchase --------------- ----------------------- First 100% Second 50% over the next three quarters

Short-Term Forecasts. Upon execution of this Agreement, and thereafter at least thirty (30) days prior to the first (1st) day of each succeeding calendar quarter*, Rugby will furnish HMRI with a rolling forecast of the quantities of each Product, by package size (SKU) and finished dosage form, that Rugby intends to order during the twelve (12) month * period commencing with that calendar quarter*, stipulating periodic delivery requirements. The first three months * of such forecast shall constitute a binding commitment of Rugby to purchase such quantities evidenced by purchase orders to HMRI pursuant to Section 2.6 3.6 herein. In the event it is reasonably necessary for HMRI to purchase active ingredient for Product beyond the binding commitment of Rugby, HMRI may request written authorization from Rugby regarding such purchase. In the event Rugby authorizes such purchase, purchase or authorizes a portion of such purchase, Rugby will be responsible for the costs of the active ingredient authorized to be purchased which is not used by HMRI in the manufacture of Product or other products. In the event Rugby does not authorize such purchase, HMRI shall not be required (but shall will use commercially reasonable efforts) to meet Rugby's forecasts or orders with respect to the Products manufactured with such active ingredient. Rugby will be required to purchase that percentage of the quantity of each Product specified in the short-term forecast for successive quarters as follows: Percentage of Product indicated Three Month Period in the forecast that Rugby is of the forecast is required to purchase PERCENTAGE OF PRODUCT INDICATED * PERIOD IN THE FORECAST THAT RUGBY IS OF THE FORECAST IS REQUIRED TO PURCHASE --------------- ----------------------- ------------------------------- First 100*% Second 50*% over the next three quarters

Short-Term Forecasts. Upon execution of this Agreement, and thereafter at least thirty (30) days prior to the first (1st) day of each succeeding calendar quarter, Rugby will furnish HMRI with a rolling forecast of the quantities of each Product, by package size (SKU) and finished dosage form, that Rugby intends to order during the twelve (12) month period commencing with that calendar quarter, stipulating periodic delivery requirements. The first three months of such forecast shall constitute a binding commitment of Rugby to purchase such quantities evidenced by purchase orders to HMRI pursuant to Section 2.6 3.6 herein. In the event it is reasonably necessary for HMRI to purchase active ingredient for Product beyond the binding commitment of Rugby, HMRI may request written authorization from Rugby regarding such purchase. In the event Rugby authorizes such purchase, purchase or authorizes a portion of such purchase, Rugby will be responsible for the costs of the active ingredient authorized to be purchased which is not used by HMRI in the manufacture of Product or other products. In the event Rugby does not authorize such purchase, HMRI shall not be required (but shall will use commercially reasonable efforts) to meet Rugby's forecasts or orders with respect to the Products manufactured with such active ingredient. Rugby will be required to purchase that percentage of the quantity of each Product specified in the short-term forecast for successive quarters as follows: Percentage of Product indicated Three Month Period in the forecast that Rugby is of the forecast is required to purchase --------------- ----------------------- First 100% Second 50% over the next three quartersquarters CONFIDENTIAL TREATMENT - NOTED BY * AND STRIKE-THROUGH