Common use of Volume Reduction Clause in Contracts

Volume Reduction. If at any time during the term of this Agreement the annual volume order by DEPOMED falls below five (5) million tablets, then MOVA shall be entitled to request an adjustment to the Production Fees with respect to the Product to reflect the increased costs that MOVA will incur as a result of the reduced volumes. To the extent that the Production Fee has been previously adjusted pursuant to this Section 5.7 to reflect reduced volumes, the adjustment provided for shall operate based on the fees attributed to such Product at the time the last of such adjustments were made, including any other applicable price adjustments in accordance with this Article 5. ***Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Volume Reduction. If at any time during the term of this Agreement the annual volume order by DEPOMED falls below five (5) million tablets, then MOVA shall be entitled to request an adjustment to the Production Fees with respect to the Product to reflect the increased costs that MOVA will incur as a result of the reduced volumes. To the extent that the Production Fee has been previously adjusted pursuant to this Section 5.7 to reflect reduced volumes, the adjustment provided for shall operate based on the fees attributed to such Product at the time the last of such adjustments were made, including any other applicable price adjustments in accordance with this Article 5. ***Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.. – 13 –