Common use of Supplier Capacity Clause in Contracts

Supplier Capacity. Supplier represents and warrants that it has sufficient capacity to supply the volumes of the Products. With the exception of any disruption in manufacturing caused by a Force Majeure Event, and subject to the maximum Product production volumes, if, in any calendar month during the Term, Supplier fails to deliver to SCRIPSAMERICA at least ninety-eight percent (98%) of the volume of Products ordered by SCRIPSAMERICA pursuant to its purchase order for such month (the “Minimum Production Volume”), then, for each Product for which Supplier failed to deliver the Minimum Production Volume, SCRIPSAMERICA shall receive a credit on its next purchase order (or purchase orders if the credit amount is larger than the price of the next single order) in an amount equal to (i) the number of Product units below the Minimum Production Volume that Supplier failed to deliver, multiplied by (ii) the per unit Product Fee then in effect for such Product; provided, that such credit will be applied to the total Product Fees contained in such purchase order and is not required to be used to offset Product Fees for the Product for which Supplier failed to meet the Minimum Production Volume; provided, further, that if this Agreement is terminated or expires before all of SCRIPSAMERICA’s credits are used, then SCRIPSAMERICA shall receive, within thirty (30) days of such termination or expiration date, a cash payment from Supplier for the entire value of any unused credits.

Appears in 3 contracts

Samples: Supply Agreement (ScripsAmerica, Inc.), Supply Agreement (ScripsAmerica, Inc.), Supply Agreement (ScripsAmerica, Inc.)

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Supplier Capacity. Supplier represents and warrants that it has sufficient capacity to supply the volumes of the ProductsProducts set forth on Schedule D. In the event of the occurrence of a force majeure event, which might otherwise permit Supplier to allocate production and delivery of different products among Supplier's various customers, Supplier shall continue to manufacture, assemble, package, label, pack for shipment, and deliver to Zicam on a timely basis one hundred percent (100%) of the Products ordered by Zicam pursuant to this Agreement. With the exception of any disruption in manufacturing caused by a Force Majeure Event, and subject to the maximum Product production volumesvolumes set forth in Schedule D, if, in any calendar month during the Term, Supplier fails to deliver to SCRIPSAMERICA Zicam at least ninety-eight percent (98%) of the volume of Products ordered by SCRIPSAMERICA Zicam pursuant to its purchase order for such month (the "Minimum Production Volume"), then, for each Product for which Supplier failed to deliver the Minimum Production Volume, SCRIPSAMERICA Zicam shall receive a credit on its next purchase order (or purchase orders if the credit amount is larger than the price of the next single order) in an amount equal to (i) the number of Product units below the Minimum Production Volume that Supplier failed to deliver, multiplied by (ii) the per unit Product Fee then in effect for such Product; provided, provided that such credit will be applied to the total Product Fees contained in such purchase order and is not required to be used to offset Product Fees for the Product for which Supplier failed to meet the Minimum Production Volume; provided, further, that if this Agreement is terminated or expires before all of SCRIPSAMERICA’s Zicam's credits are used, then SCRIPSAMERICA Zicam shall receive, within thirty (30) days of such termination or expiration date, a cash payment from Supplier for the entire value of any unused credits.

Appears in 2 contracts

Samples: Supply Agreement (Biozone Pharmaceuticals, Inc.), Supply Agreement (Biozone Pharmaceuticals, Inc.)

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Supplier Capacity. Supplier represents and warrants that it has sufficient capacity to supply the volumes of the ProductsProducts set forth on Schedule D. In the event of the occurrence of a force majeure event, which might otherwise permit Supplier to allocate production and delivery of different products among Supplier's various customers, Supplier shall continue to manufacture, assemble, package, label, pack for shipment, and deliver to _____ on a timely basis one hundred percent (100%) of the Products ordered by _____ pursuant to this Agreement. With the exception of any disruption in manufacturing caused by a Force Majeure Event, and subject to the maximum Product production volumesvolumes set forth in Schedule D, if, in any calendar month during the Term, Supplier fails to deliver to SCRIPSAMERICA _____ at least ninety-eight percent (98%) of the volume of Products ordered by SCRIPSAMERICA ______ pursuant to its purchase order for such month (the '"Minimum Production Volume"), then, for each Product for which Supplier failed to deliver the Minimum Production Volume, SCRIPSAMERICA _____ shall receive a credit on its next purchase order (or purchase orders if the credit amount is larger than the price of the next single order) in an amount equal to (i) the number of Product units below the Minimum Production Volume that Supplier failed to deliver, multiplied by (ii) the per unit Product Fee then in effect for such Product; provided, . that such credit will be applied to the total Product Fees contained in such purchase order and is not required to be used to offset Product Fees for the Product for which Supplier failed to meet the Minimum Production Volume; provided, further, that if this Agreement is terminated or expires before all of SCRIPSAMERICA’s _____ credits are used, then SCRIPSAMERICA ___ shall receive, within thirty (30) days of such termination or expiration date, a cash payment from Supplier for the entire value of any unused credits.

Appears in 1 contract

Samples: Supply Agreement (Biozone Pharmaceuticals, Inc.)

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