Common use of Manufacturing Sources Clause in Contracts

Manufacturing Sources. SMI represents that, as of the Effective Date, it has a fully certified and functioning ISO 9000 manufacturing source for the Modified Starch. In addition, SMI represents that, as of the Effective Date, its sources of raw materials used in the Modified Starch are ISO certified sources that would allow SMI to manufacture the Modified Starch as required by CryoLife. 4.3.1 SMI agrees to maintain such manufacturing source or procure other sources, facilities and/or equipment in order to replace such manufacturing source that are reasonably acceptable to CryoLife and meet ISO 13485 requirements in the event that SMI’s then-active manufacturing facility becomes unable or unwilling to supply Modified Starch in a timely manner. 4.3.2 SMI shall have an approved second source for Modified Starch within thirty-six (36) months from the Effective Date of this License Agreement. Further, SMI will grant CryoLife an option, for a period of thirty-six (36) months from the Effective Date of this License Agreement, to acquire the full Modified Starch production technology for a negotiated sum not to exceed One Million U.S. dollars ($1,000,000.00).