PRODUCTION HALTS Clause Samples
The 'Production Halts' clause defines the procedures and responsibilities when production is temporarily stopped or interrupted. Typically, it outlines the conditions under which a halt may occur, such as equipment failure, supply shortages, or force majeure events, and specifies the notification requirements and steps for resuming operations. This clause ensures that both parties understand their obligations during a halt, minimizing disputes and providing a clear framework for managing unexpected interruptions in production.
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PRODUCTION HALTS. CAMD may at any time request ASMC to halt the manufacture of wafers still in-process and ASMC shall effect production stoppage. The manufacture of Wafers shall remain on hold pending written directions from CAMD. If CAMD decides to cancel its order for wafers after ASMC has begun to process the raw wafers, CAMD shall pay to ASMC a cancellation fee based on the formula set out in Exhibit D. ASMC shall re-start the manufacture of Wafers within a reasonable time after receipt of CAMD's written request, subject to CAMD's agreement to bear all expenses incurred by ASMC in production stoppage and re-start. ASMC will make no commitments of yield, reliability and conformance with the acceptance criteria in respect of Wafers stopped in-process (a) more than one time regardless of the number of days of stoppage, or (b) if the stoppage lasts for more than 30 days.
PRODUCTION HALTS. 9.1 MPS may at any time request ASMC to halt the manufacture of Wafers still in-process and ASMC shall effect production stoppage if commercially feasible. The manufacture of Wafers shall remain on hold pending written directions from MPS.
9.2 If MPS decides to cancel its order for Wafers, MPS shall pay to ASMC a Cancellation Fee based on the formula set out in Appendix G.
9.3 ASMC shall, if commercially feasible, re-start the manufacture of Wafers within a reasonable time after receipt of MPS’s written request, subject to MPS’ s agreement to bear all expenses incurred by ASMC in production stoppage and re-start. ASMC will make no commitments of yield, reliability and conformance with the Acceptance Criteria in respect of Wafers stopped in process (a) more than one time regardless of the number of days of stoppage, or (b) if the stoppage lasts for more than 30 days.
PRODUCTION HALTS. 10.1 Chartered may at any time request STATS to halt the Works still in-process as a result of reliability and quality issues, and STATS shall effect stoppage immediately. The Works shall remain on hold pending written directions from Chartered.
10.2 If Chartered decides to cancel any part of the halted Works, Chartered shall pay to STATS the cost of the work-in-progress only, as at the date of Chartered’s written notice to halt the Works. The cost of the work-in-progress arising from the halt shall be borne by STATS if the Works halt was due to quality and reliability defects caused by STATS, without prejudice to Chartered’s right to claim against STATS for any defects in Wafers and/or Units under Clause 11.
10.3 STATS shall, if commercially feasible, re-start the Works as soon as possible after receipt of Chartered’s written request. The cost of re-start shall be borne by STATS if the Works halt was clue to quality and reliability defects caused by STATS, without prejudice to Chartered’s right to claim against STATS for any defects in Wafers and/or Units under Clause 11.
PRODUCTION HALTS. CAMD may at any time request SANYO to halt the manufacture of wafers still in-process and SANYO shall effect such production stoppage. The manufacture of Wafers shall remain on hold pending written directions from CAMD provided, that, such pending period shall not exceed two (2) months if the problem is related to CAMD; otherwise, the two-month limitation does not apply. If CAMD decides to cancel its order for wafers after SANYO has begun to process the raw wafers, or, if the problem is related to CAMD, the manufacturing pending period exceeds two months from its halt, CAMD shall pay to SANYO a cancellation fee based on the formula set out in Exhibit C. SANYO shall re-start the manufacture of Wafers within a reasonable time after receipt of CAMD’s written request, subject to CAMD’s agreement to bear all expenses incurred by SANYO in production stoppage and re-start. SANYO will make no commitments of yield, reliability and conformance with the acceptance criteria in respect of wafers stopped in-process (a) more than one time regardless of the number of days of stoppage, or (b) if the stoppage lasts for more than 30 days.