Common use of Unused Materials Clause in Contracts

Unused Materials. Within ninety (90) days of the effective date of the expiration or termination of this Agreement for any reason other than Paddock’s material breach, Axcan Pharma shall purchase at Paddock’s cost any Materials that Paddock has purchased exclusively for Axcan Pharma in accordance with this Agreement for the supply of the Products. Axcan Pharma shall not be obligated to purchase any quantities of Materials under this paragraph 11.3 in excess of a ninety (90) day supply reasonably based upon Axcan Pharma’s applicable forecast of its requirements of the foregoing. In the event that the Agreement terminates as a result of a material breach by Paddock, Axcan Pharma shall be under no obligation to purchase any unused Materials from Paddock, but will have an option to do so.