Common use of Yield Reconciliation Clause in Contracts

Yield Reconciliation. On a quarterly basis, Manufacturer will provide Purchaser with consigned Material reconciliation reports for any consigned Material in the format of Exhibit 2.4 (f). On an annual basis, the average Production Yield Percentage will be compared to the Target Production Yield Percentage. Annually, if the average Production Yield Percentage is more than two percentage points (2%) below the Target Production Yield Percentage, Manufacturer shall reimburse Purchaser 100% of the value of Excess Yield Loss as set forth in Example 1 on Schedule A attached hereto. Manufacturer shall reimburse Purchaser accordingly for the Materials’ value based on Purchaser’s costs (as set forth on Schedule A). Annually, if the average Production Yield Percentage is more than two percentage points (2%) above the Target Production Yield Percentage, then Purchaser will pay or credit Manufacturer for 50% of the value of the Excess Yield Gain as set forth in Example 2 on Schedule A. Purchaser shall pay Manufacturer accordingly for the Materials’ value based on Purchaser’s costs (as set forth on Schedule A). Schedule A shall be amended annually by the Parties according to any cost change communicated by Purchaser to Manufacturer. For the avoidance of doubt, the yield reconciliation process shall not apply to the first ten (10) Batches supplied for new products under this Agreement. Annual financial obligations under this Section 2.4(f) will be calculated within sixty (60) days of the end of each year of the Term.

Yield Reconciliation. On a quarterly basis, Manufacturer Packager will provide Purchaser with consigned Material reconciliation reports for any consigned Material in the format of attached hereto as Exhibit 2.4 (f2.4(f). On an annual basis, the average Production Yield Percentage will be compared to the Target Production Yield Percentage. Annually, if the average Production Yield Percentage is more than two percentage points (2%) below the Target Production Yield Percentage, Manufacturer Packager shall reimburse Purchaser 100% of the value of Excess Yield Loss as set forth in Example 1 on Schedule A attached hereto. Manufacturer Packager shall reimburse Purchaser accordingly for the Materials’ value based on Purchaser’s costs (as set forth on Schedule A). Annually, if the average Production Yield Percentage is more than two percentage points (2%) above the Target Production Yield Percentage, then Purchaser will pay or credit Manufacturer the Packager for 50% of the value of the Excess Yield Gain as set forth in Example 2 on Schedule A. Purchaser shall pay Manufacturer Packager accordingly for the Materials’ value based on Purchaser’s costs (as set forth on Schedule A). Schedule A shall be amended annually by the Parties according to any cost change communicated by Purchaser to ManufacturerPackager. For the avoidance of doubt, the yield reconciliation process shall not apply to the first ten (10) Batches supplied for new products under this Agreement. Annual financial obligations under this Section 2.4(f) will be calculated within sixty (60) days of the end of each year of the Term.