Common use of Unused Materials Clause in Contracts

Unused Materials. Within ninety (90) of the effective date of the expiration or termination of this Agreement for any reason other CID Lines' breach, the Company shall purchase at CID Lines' cost any packing materials that CID Lines has purchased exclusively for the Company in accordance with this Agreement for the production of the Licensed Product and CID Lines shall execute all instruments as required under applicable law to permit the Company to use such packaging materials in the packaging of the Licensed Product, provided that, the Company shall not be obligated to purchase any quantities of packaging materials in excess of a sixty (60) day supply (such supply amount based upon the Company's applicable forecast of its requirements of the foregoing). At its option the Company may, in lieu of purchasing such materials at cost, place orders with CID Lines for the packaging of additional Licensed Product in order to extinguish existing stocks of such packaging materials. In the event that the Agreement terminates as a result of a breach by CID Lines, the Company shall be under no obligation to purchase any unused packaging materials from CID Lines.