Common use of Phase Two Clause in Contracts

Phase Two. 4.1 Phase Two shall commence 30 days after Augrid shall give the Phase Two Notice and shall order and pay the deposit for the Phase Two Machine in accordance with the Machinery Lease Agreement. The Phase Two Notice may not be given more than six months after Phase One Completion. If the Phase Two Notice is given before Phase One Completion, the costs incurred by Augrid in respect of Phase Two shall be at the risk of Augrid in the event of failure of Phase One. 4.2 Augrid may not give the Phase Two Notice unless it has available to it financial resources to fund all expenditures envisaged in Phase Two as set out in the form of notice in Schedule 3 and has attached confirmation from a bank acceptable to Ceravision confirming the availability of such resources. 4.3 During Phase Two, Augrid shall provide premises, facilities, machinery (other than the Phase Two Machine), labour and all other requirements for the establishment and commissioning of the Pilot Line. Augrid shall use its best endeavours to establish and commission the Pilot Line within six (6) months after the delivery of the Phase Two Machine. 4.4 During Phase Two, Ceravision shall produce or procure the production of detailed specifications, initial or indicative prices and terms for supply of Proprietary Components in and after Phase Three. The parties shall endeavour to negotiate reasonable terms for such supply. The parties recognise that Proprietary Components are necessary for a technically proper exploitation of the licensed Technology. Augrid agrees to buy all its requirements for Proprietary Components from Ceravision or its nominated supplier and Ceravision shall use reasonable endeavours to make such supplies available to Augrid. 4.5 For the avoidance of doubt, and notwithstanding the generality of Clause 8, all Intellectual Property and Technology developed during Phase Two, whether relating to the Prototypes or not, shall belong exclusively to Ceravision, or such of its Associates in which it vests by operation of law.