Common use of ALLOCATION AMONG CUSTOMERS Clause in Contracts

ALLOCATION AMONG CUSTOMERS. In the event Mallinckrodt has insufficient Manufacturing Quota to satisfy Osm Kft’s requirements, Mallinckrodt shall use commercially reasonable efforts to allocate available Manufacturing Quota for API to its customers based upon sales history and realistic forecasted demand, with Mallinckrodt first addressing internal Mallinckrodt demand, followed by demand of customers having written supply agreements with Mallinckrodt, followed (lastly) by customers who purchase on a non-contract or spot basis. Without limiting the foregoing, Mallinckrodt further agrees to use its commercially reasonable efforts to: (i) minimize interruptions in the supply of API to Osm Kft; and (ii) mitigate against the consequences of any shortages of Manufacturing Quota. For the avoidance of doubt, any allocation of Manufacturing Quota pursuant to this Section 2.6.3 shall not constitute a Supply Failure.