Price Increase. The Unit Pricing may be adjusted on an annual basis, effective on the first day of each Contract Year beginning January 1, 2008, upon ninety (90) days’ written notice from Cardinal Health to Reliant. Such adjustment shall be based on actual increases or decreases in Raw Material or Manufacturing and Packaging costs, subject to the following limitations: The Unit Pricing for Product shall include only: (a) the cost of Raw Materials and (b) Cardinal Health’s Manufacturing and Packaging costs, including without limitation Cardinal Health’s labor, utilities and overhead. Any price adjustment shall limit the increase in component (b) to [***] ([***]%); provided, however, Cardinal Health shall use its best commercial efforts to limit any increases hereunder as much as possible and Cardinal Health agrees to provide backup documentation for all annual increases, if any, and such costs and related documentation shall be auditable upon reasonable notice by an independent third party reasonably acceptable to Cardinal Health and Reliant. Reliant shall bear all costs associated for such audit, unless such audit reveals that Cardinal Health exceeded the permitted increase, in which case Cardinal Health shall bear the costs of the audit and shall credit such overpayment to Reliant.
Appears in 4 contracts
Samples: Manufacturing and Packaging Agreement (Reliant Pharmaceuticals, Inc.), Manufacturing and Packaging Agreement (Reliant Pharmaceuticals, Inc.), Manufacturing and Packaging Agreement (Reliant Pharmaceuticals, Inc.)
