Common use of Non-Binding Forecasts Clause in Contracts

Non-Binding Forecasts. The Supplied Compound volumes specified for the [*] through [*] calendar month (or, if earlier, the final calendar month) of each volume forecast shall be non-binding estimates of future requirements of Supplied Compound for use in manufacturing Licensed Products for use or sale following Regulatory Approval thereof in the Territory, provided, however, that the Supplied Compound volumes for any month of a Non-binding Forecast other than a month within the Firm Zone thereof (as defined below) shall not vary by more than (i) [*] percent ([*]%) from those set forth for such month on the first Non-binding Forecast containing the forecast for such month and (ii) [*] percent ([*]%) from those set forth for such month on the immediately preceding Non-binding Forecast. Should Toyama wish to increase order quantities at any time in excess of the volumes permitted under this Section 2.4(b) or Section 2.4(d), Toyama may contact Cempra to request and Cempra shall use Commercially Reasonable Efforts to supply any such increase in volumes.

Appears in 2 contracts

Sources: Supply Agreement, Supply Agreement (Cempra, Inc.)