Common use of Quality Provisions Clause in Contracts

Quality Provisions. 3.1 Plains agrees that the nature and quality of all of Plains' products and services bearing or offered in connection with the Plains Marks shall conform to the standards set by and under the control of Spinco (hereinafter, the "Quality Standards"). Such Quality Standards shall be reasonable and shall be at least equal in quality to the Plains products and services sold by Plains prior to the Separation. 3.2 To enable Spinco to ensure that use of the Plains Marks conforms to the Design Standards and that Plains' products and services bearing or offered in connection with the Plains Marks conform to the Quality Standards, Plains shall (a) deliver to Spinco, upon Spinco's request and without charge to Spinco, representative samples of products, labels, containers, advertisements, catalogs, letterhead, and the like, bearing or containing the Plains Marks; and (b) upon reasonable notice to Plains by Spinco, permit Spinco to inspect Plains' facilities where products bearing the Plains Marks are made. 3.3 Plains shall comply with all applicable laws and regulations and shall obtain all appropriate governmental or regulatory approvals pertaining to the sale, distribution and/or advertising of Plains products and services offered in connection with the Plains Marks. 3.4 Any Plains products and services intended to be marketed under the Plains Marks that fail to meet the Quality Standards shall, at the expense of Plains, be withdrawn from production and corrected or destroyed.

Appears in 2 contracts

Sources: Intellectual Property Agreement (Plains Resources Inc), Intellectual Property Agreement (Plains Exploration & Production Co L P)