Common use of Shortage Clause in Contracts

Shortage. In the event that any Product is in short supply, KLOX shall notify Sandoz of such shortage as soon as possible and allocate to Sandoz a prorated share of such Product available to KLOX taking into consideration Sandoz’s relative sales volume in relation to customers of KLOX and its other distributors. Subject to Section 13.4(c), such allocation shall be the only remedy available to Sandoz due to any such shortage, provided that KLOX shall use commercially reasonable efforts to eliminate, cure or overcome such shortage and to resume performance of its obligations hereunder as soon as reasonably possible. Within [***] after Launch, KLOX will put in place a contingency plan to deal with potential shortages of the Product for the Territory, which shall include, with Sandoz’s support, the qualification of a back-up manufacturer (subject to Sandoz’s approval which may not be unreasonably withheld or delayed) of the Products for the Territory.