Common use of Production Management Clause in Contracts

Production Management. (i) IP shall be responsible for managing all aspects of production of Products under this Agreement, including production planning, production, transportation planning and shipping. Sylvamo and IP shall comply in all material respects with the Service Level Agreement attached hereto as Schedule A, including the Sales and Operations Plan (“S&OP”) referred to therein as modified by IP from time to time, for Products produced at the Mill. The Project Managers (as defined below) shall meet at least annually to discuss in good faith and implement any changes to the S&OP or the Service Level Agreement that such Project Managers agree are necessary to maintain production, sales and operations consistent with past practice. (ii) As part of the Service Level Agreement, the Parties agree to develop and jointly manage an effective S&OP process consistent in all material respects with IP’s past practice. The S&OP process will address efficient planning and scheduling of RD16 to align commercial and manufacturing imperatives. (iii) Production overruns that exceed the percentage tolerance attached hereto as Schedule E (“Standard Tolerances”) shall be borne by IP, provided that Sylvamo shall cooperate with IP and use commercially reasonable efforts to sell any production overrun that exceeds Standard Tolerances. (iv) Sylvamo shall use commercially reasonable efforts to ensure that the grade/customer mix at Riverdale is consistent with past practices at the Mill prior to the Effective Date.

Production Management. (i) IP shall be responsible for managing all aspects of production of Products under this Agreement, including production planning, production, transportation planning and shipping. Sylvamo and IP shall comply in all material respects with the Service Level Agreement attached hereto as Schedule A, including the Sales and Operations Plan (“S&OP”) referred to therein as modified by IP from time to time, for Products produced at the Mill. The Project Managers (as defined below) shall meet at least annually to discuss in good faith and implement any changes to the S&OP or the Service Level Agreement that such Project Managers agree are necessary to maintain production, sales and operations consistent with past practice. (ii) As part of the Service Level Agreement, the Parties agree to develop and jointly manage an effective S&OP process consistent in all material respects with IP’s past practice. The S&OP process will address efficient planning and scheduling of RD16 GT 1&2 to align commercial and manufacturing imperatives. (iii) Production overruns that exceed the percentage tolerance attached hereto as Schedule E (“Standard Tolerances”) shall be borne by IP, provided that Sylvamo shall cooperate with IP and use commercially reasonable efforts to sell any production overrun that exceeds Standard Tolerances. (iv) Sylvamo shall use commercially reasonable efforts to ensure that the grade/customer mix at Riverdale Georgetown is consistent with past practices at the Mill prior to the Effective Date.