Common use of Volume Reduction Clause in Contracts

Volume Reduction. If at any time and from time to time Patheon determines, acting reasonably and based on the forecasts and Firm Orders received from the Client, that the current Minimum Run Quantities (including, without limitation, any permanent reductions in volumes) relating to a specific Product will constitute no more than [**]% of the Annual Volume for that Product specified in Schedule B hereto or, if applicable, any revised Annual Volume hereinafter agreed to by the parties, then Patheon shall be entitled to request an adjustment to the fee for Manufacturing Services in respect of that Product to reflect the increased costs that Patheon will incur as a result of the reduced volumes. If at any time and from time to time the Client determines, acting reasonably and based upon the forecasts and Firm Orders submitted to Patheon, that the current Minimum Run Quantities (including, without limitation, any permanent reduction in volumes) relating to a specific Product will constitute greater than [**]% of the Annual Volume for that Product specified in Schedule B hereto, or if applicable, any revised Annual Volume hereinafter agreed to by the parties, then the Client shall be entitled to request an adjustment to the fee for Manufacturing Services in respect of that Product to reflect the decreased costs that Patheon will incur as a -10- <PAGE> result of the increased volumes. To the extent that the fee for Manufacturing Services in respect of a Product has been previously adjusted pursuant to this clause (a) to reflect reduced or increased volumes, the adjustment provided in this clause (a) shall operate based on the fees attributed to such Product at the time the last of such adjustments were made.

Volume Reduction. If at any time and from time to time Patheon determines, acting reasonably and based on the forecasts and Firm Orders received from the Client, that the current Minimum Run Quantities (including, without limitation, any permanent reductions in volumes) relating to a specific Product will constitute no more than [**]% of the Annual Volume for that Product specified in Schedule B hereto or, if applicable, any revised Annual Volume hereinafter agreed to by the parties, then Patheon shall be entitled to request an adjustment to the fee for Manufacturing Services in respect of that Product to reflect the increased costs that Patheon will incur as a result of the reduced volumes. If at any time and from time to time the Client determines, acting reasonably and based upon the forecasts and Firm Orders submitted to Patheon, that the current Minimum Run Quantities (including, without limitation, any permanent reduction in volumes) relating to a specific Product will constitute greater than [**]% of the Annual Volume for that Product specified in Schedule B hereto, or if applicable, any revised Annual Volume hereinafter agreed to by the parties, then the Client shall be entitled to request an adjustment to the fee for Manufacturing Services in respect of that Product to reflect the decreased costs that Patheon will incur as a -10- <PAGE> result of the increased volumes. To the extent that the fee for Manufacturing Services in respect of a Product has been previously adjusted pursuant to this clause (a) to reflect reduced or increased volumes, the adjustment provided in this clause (a) shall operate based on the fees attributed to such Product at the time the last of such adjustments were made.

Volume Reduction. If at any time and from time to time Patheon determines, acting reasonably and based on the forecasts and Firm Orders received from the Client, that the current Minimum Run Quantities (including, without limitation, any permanent reductions in volumes) relating to a specific Product will constitute no more than [**]% of the Annual Volume for that Product specified in Schedule B hereto or, if applicable, any revised Annual Volume hereinafter agreed to by the parties, then Patheon shall be entitled to request an adjustment to the fee for Manufacturing Services in respect of that Product to reflect the increased costs that Patheon will incur as a result of the reduced volumes. If at any time and from time to time the Client determines, determines acting reasonably and based upon the forecasts and Firm Orders submitted to Patheon, Patheon that the current Minimum Run Quantities (including, without limitation, any permanent reduction in volumes) relating to a specific Product will constitute greater than [**]% of the Annual Volume for that Product specified in Schedule B hereto, or if applicable, any revised Annual Volume hereinafter agreed to by the parties, then the Client shall be entitled to request an adjustment to the fee for Manufacturing Services in respect of that Product to reflect the decreased costs that Patheon will incur as a -10- <PAGE> result of the increased volumes. To the extent that the fee for Manufacturing Services in respect of a Product has been previously adjusted pursuant to this clause (a) to reflect reduced or increased volumes, the adjustment provided in this clause (a) shall operate based on the fees attributed to such Product at the time the last of such adjustments were made.