Deviations from Budget. (a) If the volume of ARA Products actually ordered by Martek in Martek Purchase Orders during a Current Year varies by * from the Martek Budgeted Volume used in determining the Fixed Budget Price for such Current Year pursuant to Section 6.1(a): (i) Where such variation exceeds the Martek Budgeted Volume and if DSM decides to supply Martek any or all of such additional volume of ARA Products, Martek shall pay the same Fixed Budget Price it would pay for its orders of ARA Products that were within the Martek Budgeted Volume; and (ii) Where such variation falls below the Martek Budgeted Volume and DSM has been unable to cover such variation by (A) selling an equivalent volume of ARA Products in DSM’s A▇▇ ▇▇▇▇▇▇ of Use or (B) finding an alterative use for the unused Practical Capacity caused by such variation, Martek shall pay the Unabsorbed Costs to DSM in accordance with Section 6.4(a). (b) If the volume of ARA Products actually ordered by Martek in Martek Purchase Orders during a Current Year varies * the Martek Budgeted Volume used in determining the Fixed Budget Price for such Current Year pursuant to Section 6.1(a): (i) Where such variation exceeds the Martek Budgeted Volume, and if DSM decides to supply Martek any or all of such additional volume of ARA Products, Martek shall have the benefit of the dilution of the aggregate fixed costs, if any, on the incremental volume ordered by Martek * and (ii) Where such variation falls below the Martek Budgeted Volume and DSM has been unable to cover such variation by (A) selling an equivalent volume of ARA Products in DSM’s A▇▇ ▇▇▇▇▇▇ of Use or (B) finding an alternative use for the unused Practical Capacity caused by such variation, Martek shall pay to DSM the Unabsorbed Costs in accordance with Section 6.4(a). (c) In the case where, pursuant to Section 6.3(b)(i), Martek shall have the benefit of the dilution of the aggregate fixed costs for the incremental volume of ARA Products that exceeds the Martek Budgeted Volume by *, the Committee shall, within sixty (60) days of the end of the applicable Current Year, recalculate what the Fixed Budget Price per Unit of ARA for the Current Year would have been, based on the increased volume of ARA Products actually purchased by Martek that exceeds the Martek Budgeted Volume by * during such Current Year. If such recalculated Fixed Budget Price per Unit of ARA is less than the Fixed Budget Price per Unit of ARA charged to Martek during such Current Year, DSM shall refund to Martek, within ninety (90) days of the end of such Current Year, the difference between what Martek actually paid to DSM during such Current Year for ARA Products and the amount it would have paid to DSM at the recalculated Fixed Budget Price per Unit of ARA.
Appears in 1 contract
Sources: Purchase and Production Agreement (Martek Biosciences Corp)
Deviations from Budget. (a) If the volume of ARA Products actually ordered by Martek in Martek Purchase Orders during a Current Year varies by * from the Martek Budgeted Volume used in determining the Fixed Budget Price for such Current Year pursuant to Section 6.1(a):
(i) Where such variation exceeds the Martek Budgeted Volume and if DSM decides to supply Martek any or all of such additional volume of ARA Products, Martek shall pay the same Fixed Budget Price it would pay for its orders of ARA Products that were within the Martek Budgeted Volume; and
(ii) Where such variation falls below the Martek Budgeted Volume and DSM has been unable to cover such variation by (A) selling an equivalent volume of ARA Products in DSM’s A▇▇ ▇▇▇▇▇▇ of Use or (B) finding an alterative use for the unused Practical Capacity caused by such variation, Martek shall pay the Unabsorbed Costs to DSM in accordance with Section 6.4(a).
(b) If the volume of ARA Products actually ordered by Martek in Martek Purchase Orders during a Current Year varies by * from the Martek Budgeted Volume used in determining the Fixed Budget Price for such Current Year pursuant to Section 6.1(a):
(i) Where such variation exceeds the Martek Budgeted Volume, and if DSM decides to supply Martek any or all of such additional volume of ARA Products, Martek shall have the benefit of the dilution of the aggregate fixed costs, if any, on the incremental volume ordered by Martek * *; and
(ii) Where such variation falls below the Martek Budgeted Volume and DSM has been unable to cover such variation by (A) selling an equivalent volume of ARA Products in DSM’s A▇▇ ▇▇▇▇▇▇ of Use or (B) finding an alternative use for the unused Practical Capacity caused by such variation, Martek shall pay to DSM the Unabsorbed Costs in accordance with Section 6.4(a).
(c) In the case where, pursuant to Section 6.3(b)(i), Martek shall have the benefit of the dilution of the aggregate fixed costs for the incremental volume of ARA Products that exceeds the Martek Budgeted Volume by *, the Committee shall, within sixty (60) days of the end of the applicable Current Year, recalculate what the Fixed Budget Price per Unit of ARA for the Current Year would have been, based on the increased volume of ARA Products actually purchased by Martek that exceeds the Martek Budgeted Volume by * during such Current Year. If such recalculated Fixed Budget Price per Unit of ARA is less than the Fixed Budget Price per Unit of ARA charged to Martek during such Current Year, DSM shall refund to Martek, within ninety (90) days of the end of such Current Year, the difference between what Martek actually paid to DSM during such Current Year for ARA Products and the amount it would have paid to DSM at the recalculated Fixed Budget Price per Unit of ARA.
Appears in 1 contract
Sources: Purchase and Production Agreement (Martek Biosciences Corp)