Common use of Supply of API Clause in Contracts

Supply of API. 2.1 Subject to the terms and conditions of this Agreement, XIANJU agrees to supply to CLARUS, for incorporation into the Finished Product to be sold in the Territory, and CLARUS agrees to purchase from XIANJU the API in bulk, in accordance with Purchase Orders placed and Specifications required by CLARUS pursuant to the provisions hereof. 2.2 CLARUS’s obligation to purchase API from XIANJU shall be contingent upon XIANJU’s ability to fulfill CLARUS commercial requirements for API as set forth in the Forecasts and Purchase Orders in accordance with this Agreement. 2.3 In the event that XIANJU(i) informs CLARUS that it will not be able to supply CLARUS with the quantity of API specified in a particular accepted CLARUS Purchase Order, (ii) fails to confirm a Purchase Order within [***], or (iii) otherwise fails to supply such Purchase Order in accordance with the confirmed terms of such Purchase Order, and, in the event of default, after written notice from CLARUS and opportunity, for [***] thereafter to cure, then CLARUS may at its discretion cancel such Purchase Order. PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES ACT; [***] DENOTES OMISSIONS.