Common use of Manufacturing Obligation Clause in Contracts

Manufacturing Obligation. In the event the effective date of termination occurred during the Construction Phase, ADM Sub shall provide fermentation services to produce PHA Cell Paste in up to * fermentors for a period of * at the Manufacturing Cost, plus depreciation on assets in the ADM Sub Manufacturing Facility that are not allocated to other uses calculated on a ten-year straight-line basis, *, but otherwise pursuant to the terms and conditions of the ADM Sub Manufacturing Agreement. In the event the effective date of termination occurred during the Commercial Phase, ADM Sub would for a period of three and one-half (3.5) years, at MBX's election, to be exercised once at the time MBX places it first purchase order, (i) provide fermentation services to produce PHA Cell Paste in up to * fermentors at the Manufacturing Cost, plus depreciation on assets in the ADM Sub Manufacturing Facility that are not allocated to other uses calculated on a ten-year straight-line basis, *; or (ii) manufacture PHA Material in the ADM Sub Manufacturing Facility (subject to the limitations of such facility as of the time of termination) at Manufacturing Cost, plus depreciation on assets in the ADM Sub Manufacturing Facility that are not allocated to other uses calculated on a ten-year straight-line basis, *, in either case, otherwise under the terms set forth in the ADM Sub Manufacturing Agreement.

Appears in 1 contract

Sources: Commercial Alliance Agreement (Metabolix, Inc.)

Manufacturing Obligation. In the event the effective date of termination occurred during the Construction Phase, ADM Sub shall provide fermentation services to produce PHA Cell Paste in up to * fermentors for a period of * at the Manufacturing Cost, plus depreciation on assets in the ADM Sub Manufacturing Facility that are not allocated to other uses calculated on a ten-year straight-line basis, *, but otherwise pursuant to the terms and conditions of the ADM Sub Manufacturing Agreement. In the event the effective date of termination occurred during the Commercial Phase, ADM Sub would for a period of three and one-half (3.5) years, at MBX's election, to be exercised once at the time MBX places it first purchase order, (i) provide fermentation services to produce PHA Cell Paste in up to * fermentors at the Manufacturing Cost, plus depreciation on assets in the ADM Sub Manufacturing Facility that are not allocated to other uses calculated on a ten-year straight-line basis, *; or (ii) manufacture PHA Material in the ADM Sub Manufacturing Facility (subject to the limitations of such facility as of the time of termination) at Manufacturing Cost, plus depreciation on assets in the ADM Sub Manufacturing Facility that are not allocated to other uses calculated on a ten-year straight-line basis, *, in either case, otherwise under the terms set forth in the ADM Sub Manufacturing Agreement.. * CONFIDENTIAL TREATMENT REQUESTED

Appears in 1 contract

Sources: Commercial Alliance Agreement (Metabolix Inc)