Safety Stock Sample Clauses

Safety Stock. At all times during the Term, Distributor shall use Commercially Reasonable Efforts to maintain not less than [***] days of inventory of Product based upon the Forecasts set forth in Section 6.2(a)(i) (such [***] days of inventory of Product being the “Minimum Safety Stock Level”). If Cipher is unable to meet its obligations to supply Product, Distributor shall draw upon its Minimum Safety Stock Level in an amount equal to Cipher’s failure to supply Product and upon Distributor’s drawing upon its Minimum Safety Stock Level, Distributor’s obligation to maintain the Minimum Safety Stock Level shall be reduced by the amount of Product drawn down until Cipher has replenished the Minimum Safety Stock Level to the agreed amount set forth above. At such time as Cipher is able to resume supply of Product pursuant to the purchase orders, the Parties shall enter into good faith discussions to determine the timetable in which Cipher will replenish the Minimum Safety Stock Level and Distributor shall place purchase orders pursuant to such schedule until Cipher has replenished such Minimum Safety Stock Level.

Safety Stock. The Supplier and the Customer agree that a safety stock (the “Safety Stock”) should be established which will provide security of continuation of supply of the Products, for example in the event of an unprecedented demand for, or an interruption in the manufacture of, the Products. The Safety Stock, which will be manufactured at the Supplier’s plant in Dassel and stored at the Supplier’s site in a separate facility at Dassel or Einbeck shall be operated in accordance with the following provisions: (a) The Supplier will start building the Safety Stock on the Commencement Date and shall as soon as practically possible (and in any event within three months of the Commencement Date) manufacture and maintain three month’s Safety Stock equivalent to the customer’s estimated indication of its requirements of the Products on a rolling basis for the following three months in accordance with the first 3 months of each estimate given under clause 5.2 (Monthly Estimated Indication); (b) All Safety Stock produced and maintained shall be separate and in addition to any Products ordered for delivery to the Customer; (c) the Safety Stock shall consist of Products which meet the Specifications and which have satisfactorily met the Quality Control Standards of both the Customer and the Supplier and shall unless the parties otherwise agree comprise half of a batch the remainder of which is supplied to the Customer for use by the Customer; (d) the Safety Stock shall be held at the risk of the Supplier and the Supplier shall maintain insurance to cover the full cost of replacement of all the Safety Stock held from time to time; (e) the Customer shall whilst the Safety Stock is being built up pay the Supplier the Supply Prices for such Safety Stock by the end of the month following the month in which the Safety Stock has passed the Supplier’s and the Customers tests in respect of their respective Quality Control Standards; (f) once the Safety Stock has reached the required level specified in Clause 7.1(a), the Customer shall pay for any additional Safety Stock required to match any overall increase in the Customer’s estimated requirements for Products notified under sub-clause 5.2 or to replenish any use of Safety Stock in the manner provided under Clause 7.1(i); (g) the Supplier shall pay for the cost of storage of the Safety Stock; (h) the Supplier shall maintain the storage of the Safety Stock in accordance with all applicable safety standards and in a climate controlled roo...

Safety Stock. As requested by NeurogesX from time to time and at NeurogesX’s cost (in accordance with a budget agreed upon by the Parties in advance), LTS shall procure and maintain an additional quantity of Active Ingredient and other Raw Materials as a safety stock for its production of Patches hereunder (“Safety Stock”) subject to LTS’ available storage capacity. LTS shall [***] report to NeurogesX as requested, regarding the expenses incurred in procuring and maintaining the Safety Stock (documented and itemized in accordance with the budget), and the levels of inventory and use of such safety stock. LTS agrees to manage such levels of inventory and use of the Safety Stock in accordance with the reasonable requests of NeurogesX, and in any event LTS shall use the Safety Stock for the sole purpose of producing Patches for NeurogesX hereunder and shall use [***] to minimize expenses and wastage. When any unit of Safety Stock purchased at the expense of NeurogesX (“NeurogesX Stock”) is used in the production of Patches hereunder, NeurogesX shall receive a credit, in the amount of the price paid by NeurogesX for such unit of Safety Stock excluding the Active Ingredient and excluding any storage costs incurred by LTS with respect thereto, which may be applied against (i) the Transfer Price for the Patch or (ii) at NeurogesX’s option, the costs of procuring replacement NeurogesX Stock. ***Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

Safety Stock. If agreed by IceCure in writing, IceCure will maintain such safety stock of Probes in an amount agreed by the Parties in writing.

Safety Stock. AcelRx shall maintain a stock of components, containers, labels, packaging materials and related items (“Materials”), finished Product or work-in-progress, in any combination thereof, amounting to [ * ] supply of Product or Drug based on the quantities of Product of the most recent Firm Order commitment of Grünenthal. All such Materials, finished Product, Drug or work-in-progress shall be of suitable quality as required under the Specifications and taken collectively would allow AcelRx to Manufacture or have available for delivery at least [ * ] of Product. For clarity, the obligation to maintain safety stock is subject to reduction with respect to Drug in the event that APQ requirements limit the amount of controlled substance available to AcelRx in its efforts to meet the requirements of this Section 2.4.

Safety Stock. Once ADVA exceeds a $[**] revenue for the preceding [**] months Acacia will absorb the safety stock costs and undertake to hold a safety stock equivalent to at least [**] forecast (based on average of [**] rolling forecast) of finished Products. Prior to this ADVA has the option to request that Acacia hold a safety stock equivalent to at least [**] forecast (based on average of [**] rolling forecast) of finished Products with a [**]% of purchase price charge. An alternate safety stock agreement may be negotiated outside this agreement when mutual agreed and signed by both parties.

Safety Stock. In recognition of TheraSense's desire to have a ------------ ready supply of Products, Facet agrees to maintain a raw materials inventory at its facility in an amount equivalent to [***]. Such inventory will be modified from time to time based upon TheraSense's actual usage over the preceding [***]. All materials for TheraSense shall be cycled through this inventory on a FIFO basis. TheraSense's obligation and sole liability for this service shall be to purchase any such inventory at Facet's cost plus associated overhead expense upon termination or expiration of this Agreement or cancellation of any Purchase Order per 4.5, and provided Facet is not able to otherwise use such inventory. Facet shall use reasonable commercial efforts to eliminate or reduce this inventory at the approaching expiration of this Agreement.

Safety Stock. At least annually, and more frequently depending on business conditions, COMPANY shall determine and inform DPT of the level of safety stock inventory for API and Materials, by Product, that DPT shall hold in its warehouse. COMPANY shall pay for such safety stock inventory for API and Materials and associated storage fee as agreed upon in writing between the parties.

Safety Stock. 9 <PAGE> [*CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***], HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.] (a) No later than [***] months prior to anticipated date of the FIRST COMMERCIAL SALE, NASTECH shall at its own cost and expense, at any time during the TERM, maintain an amount of inventory of PRODUCT equal to MERCK's requirements of PRODUCT for commercial sale for [***] months based on MERCK's most recently updated rolling forecast (the "SAFETY STOCK"). (b) The SAFETY STOCK shall be maintained for the sole benefit of MERCK and shall not be subject to allocation, and shall be stored at a secure FACILITY in compliance with cGMP, separate from the FACILITY where the PRODUCT is MANUFACTURED. NASTECH shall rotate the SAFETY STOCK on a "First Expiry-First Out" basis for routine fulfillment of FIRM ORDERS. MERCK shall have the right to reduce or eliminate the SAFETY STOCK at any time by written notice to NASTECH and MERCK's obligation to purchase the SAFETY STOCK under Section 12.8 (c) of this AGREEMENT shall be reduced or eliminated. (c) In the event NASTECH is not able to MANUFACTURE any FIRM ORDERS for any reason, NASTECH shall draw upon the SAFETY STOCK to make up for any shortfall it is not able to MANUFACTURE. Within [***] days after the end of each QUARTER, NASTECH shall deliver a report to MERCK describing the quantities of the SAFETY STOCK remaining as of the end of such QUARTER.