Common use of Pricing Basis Clause in Contracts

Pricing Basis. Client acknowledges that the Price in any Year is quoted based upon the Batch Order Quantity and Annual Volume Tiers specified in Schedule B to the relevant Product Agreement. The Price may be subject to change if the specified Batch Order Quantity changes or the quantity specified in the lowest specified Annual Volume Tier is not ordered in a Year. For greater certainty, if Patheon and Client agree that the Batch Order Quantity or lowest Annual Volume Tier will not be ordered in a Year, whether as a result of a decrease in Client’s forecasts or otherwise, and, as a result of the reduction, Patheon demonstrates to Client that its costs to perform the Manufacturing Services or to acquire the Components for the Product will increase on a per-unit basis, and the amount of such increase, then Patheon may increase the Price by an amount sufficient to absorb the documented increased costs. On or about November 1st of each Year, Patheon will give Client a statement setting forth the information to be applied in calculating those cost increases (if any) for the next Year, But Patheon will not be required to give information to Client that is subject to obligations of confidentiality between Patheon and its suppliers. If requested by Client, Patheon will use commercially reasonable efforts to obtain permission to disclose this information to Client, or, where applicable, will provide this information to Client with appropriate redactions.