Common use of Shortage of Supply Clause in Contracts

Shortage of Supply. (a) The Company shall notify ERS: (i) as promptly as possible, but in no event more than ten days after the Company's receipt of a firm order from ERS as provided in Section 8.4, or (ii) immediately upon becoming aware that the Company is unable to supply the quantity of API to ERS that the Company is required to supply hereunder, if the Company is unable to supply such quantities of API. In such event, the Company shall implement all commercially reasonable efforts to remedy such shortage, including through the use of Third Party Manufacturers for all or a portion of such quantities of API, as determined are necessary by the JMC. (b) In the event that the Company is unable to supply both ERS's requirements of API and the Company's and Third Parties' requirements for the API due to force majeure or otherwise, the Company shall allocate the API that the Company has in inventory and that the Company is able to produce among the quantities of all such requirements, so that ERS receives at least its proportionate share of such available supplies, as determined from reasonable forecasts (taking into consideration past sales and sales performance against forecast) and orders, for the API.

Shortage of Supply. (a) The Company shall notify ERS: (i) as promptly as possible, but in no event more than ten days after the Company's receipt of a firm order from ERS as provided in Section 8.4, or (ii) immediately upon becoming aware that the Company is unable to supply the quantity of API to ERS that the Company is required to supply hereunder, if the Company is unable to supply such quantities of API. In such event, the Company shall implement all commercially reasonable efforts to remedy such shortage, including through the use of Third Party Manufacturers for all or a portion of such quantities of API, as determined are necessary by the JMC. (b) In the event that the Company is unable to supply both ERS's requirements of API and the Company's and Third Parties' requirements for the API due to force majeure FORCE MAJEURE or otherwise, the Company shall allocate the API that the Company has in inventory and that the Company is able to produce among the quantities of all such requirements, so that ERS receives at least its proportionate share of such available supplies, as determined from reasonable forecasts (taking into consideration past sales and sales performance against forecast) and orders, for the API.