Alternative Disposition. Seller may, during or after a discontinuance or curtailment of Chip purchases pursuant to Section 13.1 or 13.2 dispose of, as it sees fit, any of the Chips produced by Seller that would have been purchased by Buyer pursuant to this Agreement but for such discontinuance or curtailment, except that: (a) Seller will, before entering into any agreement to dispose of any of such Chips, give notice to Buyer of its intention to do so, and Seller will not dispose of such Chips if, within 5 Business Days after the day such notice is given by Seller, Buyer gives a notice to Seller, that Buyer will purchase such Chips upon production; (b) Seller will not enter into any agreement concerning the disposition of Chips that would conflict with Buyer’s right to resume the purchase of Chips under this Agreement; and (c) Buyer may, after the end of the discontinuance or curtailment, purchase any of such Chips that have not been disposed of and which are stockpiled, by delivering not less than 10 Business Days’ notice to Seller (i) stating the quantity of such stockpiled Chips that it wishes to purchase under this Agreement, (ii) stipulating a rate of delivery of Chips that will not interfere with the efficiency of the Seller’s Facilities at which such Chips are located, and (iii) confirming that Buyer will take the risk of any impairment of the quality of the Chips resulting from the stipulated rate of delivery. If and to the extent requested by Buyer in a notice to purchase any Chips given pursuant to Section 13.5(a), Seller will store all or any of such Chips at the Seller’s Facility at which they are produced until the discontinuance or curtailment ends, except that if Chip inventories at such Seller’s Facility during the discontinuance or curtailment impair Seller’s operations, then Buyer agrees to accept delivery in a timely manner of such volume of Chips as is necessary to relieve such impairment.
Appears in 1 contract
Sources: Chip and Pulp Log Supply Agreement (Catalyst Paper Corp)
Alternative Disposition. Seller mayIf, as provided in Section 15.1 or 15.2, FCCL discontinues or curtails the purchase of Chips or Pulplogs produced by TimberWest, TimberWest may dispose of such Chips or Pulplogs during or after a such discontinuance or curtailment of Chip purchases pursuant to Section 13.1 or 13.2 dispose of, as it sees fit, any of the Chips produced by Seller that would have been purchased by Buyer pursuant to this Agreement but for such discontinuance or curtailment, fit except that:
(a) Seller TimberWest will, before entering into any agreement to dispose of any of such ChipsChips or Pulplogs, give notice to Buyer notify FCCL of its intention to do so, and Seller TimberWest will not dispose of such Chips ifor Pulplogs if FCCL notifies TimberWest, within 5 Business Days after the day date of receipt of such notice is given by Seller, Buyer gives a notice to Sellernotice, that Buyer FCCL will purchase such Chips or Pulplogs upon productionproduction on condition, at FCCL's option, that they are stored at a TimberWest Facility until the end of the discontinuance or curtailment, except that if Chip inventories at any TimberWest Facility at which such Chips or Pulplogs are stored during such discontinuance or curtailment impair TimberWest's operations, TimberWest may, notwithstanding any commitment made by FCCL under this Subsection, dispose of and deliver to a third party such volume of Chips or Pulplogs as is necessary to relieve such impairment (and promptly refund to FCCL any amounts paid by FCCL for such Chips or Pulplogs), unless FCCL agrees to accept delivery of such volume in a timely manner;
(b) Seller subject to Section 15.10, TimberWest will not enter into any agreement concerning the disposition of Chips or Pulplogs that would conflict with Buyer’s FCCL's right to resume the purchase of Chips or Pulplogs under this Agreement; and
(c) Buyer FCCL may, after the end of the such discontinuance or curtailment, purchase any of such Chips or Pulplogs that have not been disposed of and which are stockpiledstockpiled or stored, by delivering not less than 10 Business Days’ ' notice to Seller
(i) stating TimberWest of the quantity of such stockpiled Chips or stored Pulplogs that it wishes to purchase under this Agreement,
(ii) Agreement stipulating a rate of delivery of Chips or Pulplogs that will not interfere with the efficiency of the Seller’s TimberWest Facilities at which such Chips or Pulplogs are located, and
(iii) located and confirming that Buyer FCCL will take the risk of any impairment of the quality of the Chips or Pulplogs resulting from the stipulated rate of delivery. If and to the extent requested by Buyer in a notice to purchase any Chips given pursuant to Section 13.5(a), Seller will store all or any of such Chips at the Seller’s Facility at which they are produced until the discontinuance or curtailment ends, except that if Chip inventories at such Seller’s Facility during the discontinuance or curtailment impair Seller’s operations, then Buyer agrees to accept delivery in a timely manner of such volume of Chips as is necessary to relieve such impairment.
Appears in 1 contract
Sources: Chip and Pulp Log Supply Agreement (Norske Skog Canada LTD)