Common use of Late Shipments Clause in Contracts

Late Shipments. Patheon agrees that time is of the essence of this Agreement. If Patheon becomes aware that it will not meet a scheduled delivery date, Patheon will promptly communicate this to Client. In the event of repeated late deliveries, Patheon and Client shall meet to determine a mutually satisfactory solution to this problem. If after such meetings, there are continued late deliveries, Client shall be entitled to treat same as a material breach of this Agreement and the provisions of Section 5.3(a) hereof shall apply and the time period specified in Section 5.3(a) shall commence.