Common use of Cessation of Production Clause in Contracts

Cessation of Production. In the event that the Supplier, its Affiliates and/or licensees decides to cease producing any Product, the Supplier shall notify the Purchaser of its intent to withdraw such Product at least [DELETED] before such withdrawal. Except as shown on Schedule B, the Supplier has no current plans to withdraw any Products within [DELETED] of the date of this APS Agreement. The Purchaser will have a minimum of [DELETED] from the date of such notice to place orders for such Product without quantity restrictions; provided, that the Purchaser promptly tenders to the Supplier a good faith forecast, complying with the terms of Article VIII, of the Purchaser’s requirements and allowing a commercially reasonable lead time for the Supplier, its Affiliates and/or licensees to produce such requirements. The Supplier, its Affiliates and/or licensees will maintain the capability to supply agreed upon Products, including Spare Parts, for a period to be agreed by the Parties, but in no event less than [DELETED] after withdrawal of such Products. In addition, after discontinuing any Product, the Supplier, its Affiliates and/or licensees shall maintain a reasonable supply of warranty replacements therefor for the remainder of all applicable warranty periods and an adequate supply of Spare Parts for the reasonable expected useful life of such Product.

Appears in 1 contract

Sources: Alliance and Product Supply Agreement (Davita Inc)

Cessation of Production. In the event that the Supplier, its Affiliates and/or licensees decides to cease producing any Product, the Supplier shall notify the Purchaser of its intent to withdraw such Product at least [DELETED] before such withdrawal. Except as shown on Schedule B, the Supplier has no current plans to withdraw any Products within [DELETED] of the date of this APS AgreementAmended Effective Date. The Purchaser will have a minimum of [DELETED] from the date of such notice to place orders for such Product without quantity restrictions; provided, that the Purchaser promptly tenders to the Supplier a good faith forecast, complying with the terms of Article VIII, of the Purchaser’s requirements and allowing a commercially reasonable lead time for the Supplier, its Affiliates and/or licensees to produce such requirements. The Supplier, its Affiliates and/or licensees will maintain the capability to supply agreed upon Products, including Spare Parts, for a period to be agreed by the Parties, but in no event less than [DELETED] after withdrawal of such Products. In addition, after discontinuing any Product, the Supplier, its Affiliates and/or licensees shall maintain a reasonable supply of warranty replacements therefor for the remainder of all applicable warranty periods and an adequate supply of Spare Parts for the reasonable expected useful life of such Product.

Appears in 1 contract

Sources: Alliance and Product Supply Agreement (Davita Inc)