Common use of Shortfall Calculation Clause in Contracts

Shortfall Calculation. If the Actual Annual Yield falls more than [***] below the Target Yield for a given Year, then the shortfall for such Year (the “Shortfall”) shall be determined based on the following calculation: [(Target Yield-[***]) – AAY] ÷100 * Active Material Cost * Quantity Dispensed Any Shortfall shall be disclosed by Halo on the Reconciliation Report and Halo will undertake an investigation of the reasons for the Shortfall.

Appears in 1 contract

Sources: Drug Product Manufacturing Services Agreement (Depomed Inc)

Shortfall Calculation. If the Actual Annual Yield falls more than [*****] below the Target Yield for a given Year, then the shortfall for such Year (the “Shortfall”) shall be determined based on the following calculation: [(Target Yield-[***]) – AAY] ÷100 * Active Material Cost * Quantity Dispensed Any Shortfall shall be disclosed by Halo on the Reconciliation Report and Halo will undertake an investigation of the reasons for the Shortfall.

Appears in 1 contract

Sources: Drug Product Manufacturing Services Agreement (Egalet Corp)