Common use of Manufacturing Capacity Clause in Contracts

Manufacturing Capacity. Subject to the remainder of this Section 2.9, Manufacturer warrants to Distributor that, from and after the Launch Date of each Product, Manufacturer will have sufficient capacity at its Manufacturing facilities and the facilities of its Covered Contractors and the suppliers to such contractors to Manufacture and deliver the quantities of such Product requested by Distributor pursuant to the most recent Projected Forecast (as it may be revised and updated on a monthly basis). To the extent Distributor places a purchase order for quantities of Product for any month in excess of [***](9), Manufacturer shall use commercially reasonable efforts to fulfill such order, but in no event shall Manufacturer be liable for or have any obligation with respect to any failure to deliver Product in quantities in excess of [***](9), except to the extent caused by the gross negligence or willful misconduct of Manufacturer; provided that if Distributor places a purchase order for quantities of Product that would cause such Product’s Maximum Capacity to be exceeded for any month and Manufacturer submits or has submitted a written proposal to the Steering Committee for expansion of its Manufacturing capacity pursuant to Section 2.15(e) which, at the time such purchase order was placed by Distributor, is (a) not approved, or remains under consideration, by the Steering Committee, Manufacturer shall be liable for and have obligation with respect to such purchase order only for the maximum number of units that would not cause such Product’s Maximum Capacity to be exceeded for such month, or (b) approved by the Steering Committee, Manufacturer shall be liable for the fulfillment of purchase orders placed after the Steering Committee has approved of such proposal and the period of time for implementation of such proposal as specified by the Steering Committee has passed. Subject to the preceding sentence, Manufacturer warrants to Distributor that, to the extent Distributor places timely purchase orders for quantities of Product, its Manufacture and delivery of Product to Distributor shall be