Common use of Overproduction Clause in Contracts

Overproduction. If crop yields for a growing season result in an excess of Raw Products beyond the volumes contemplated in the Seneca Plan and the CMF Plan, ("Overproduction"), then (subject to the provisions of Section 13), CMF and Seneca shall purchase such Overproduction, on a pro rata basis determined based on requirements for such Raw Products as are specified in the Seneca Plan and the CMF Plan. In determining such allocation, CMF shall provide Seneca with sufficient information from the CMF Plan for the applicable growing season pertaining to the affected categories of Raw Products to establish that the Overproduction allocated to Seneca is in accordance with this Section 11. Notwithstanding the foregoing, any Overproduction of the Seneca Products, as defined in Section 10, shall be allocated solely to Seneca under this Section 11.

Appears in 2 contracts

Sources: Raw Product Supply Agreement (Pro Fac Cooperative Inc), Raw Product Supply Agreement (Curtice Burns Foods Inc)