Product Warnings for Existing Inventory. As of October 1, 2016, Tenacious shall not sell or ship any Covered Product that is not Phthalate Free, as defined in Section 2.2 herein, into California, to a California customer or distributor, or to a non-California customer or distributor that Tenacious reasonably understands maintains retail outlets in California. To the extent that Covered Product manufactured before October 1, 2016, is sold or shipped from existing inventory, it shall not be sold or shipped to California customers or distributors and, in any event, shall include the following warning language printed on the label of each such Covered Product in no less than 6 point font size: WARNING: This product contains chemicals known to the State of California to cause cancer and birth defects or other reproductive harm. Each warning shall be prominently placed with such conspicuousness as compared with other words, statements, designs, or devices as to render it likely to be read and understood by an ordinary individual under customary conditions before purchase or use. Each warning shall be provided in a manner such that the consumer or user understands to which specific Covered Product the warning applies, so as to minimize the risk of consumer confusion. Tenacious represents as a material part of this Agreement that it currently does not sell a material number of Covered Product directly through an internet e-commerce website or a printed catalog. Based upon this representation, this Agreement does not include any obligations for clear and reasonable warnings as it relates to such methods of commerce.
Product Warnings for Existing Inventory. After November 1, 2016, for any inventory of Covered Product in AHI’s possession, custody or control as of its execution of this Agreement, AHI shall not sell or ship any Covered Product to a vendor or retailer that sells to or into California, or sell or ship any Covered Product to a vendor or retailer that AHI reasonably understands maintains retail outlets in the California, unless such Covered Products are sold or shipped with one of the clear and reasonable warnings set forth hereafter. Each warning shall be prominently placed with such conspicuousness as compared with other words, statements, designs, or devices as to render it likely to be read and understood by an ordinary individual under customary conditions before purchase or use. Each warning shall be provided in a manner such that the consumer or user understands to which specific Covered Product the warning applies, so as to minimize the risk of consumer confusion. After October1, 2016, AHI shall not distribute or otherwise sell any Covered Product unless it is Phthalate Free and shall not sell any Covered Products that are not Phthalate Free in or into California regardless of whether or not a Proposition 65 warning accompanies the product.
