DEFICIENCY TERMINATION Clause Samples
The Deficiency Termination clause allows a party to end a contract if the other party fails to correct a specified deficiency within a set period after being notified. Typically, this clause applies when one party does not meet certain performance standards or obligations, and after receiving written notice of the issue, does not remedy the problem within the agreed timeframe. Its core function is to provide a clear process for addressing unresolved breaches, ensuring that parties are not indefinitely bound to an underperforming or non-compliant counterpart.
DEFICIENCY TERMINATION. 33. In addition to the events of default and remedy described in Paragraph 32, Company may also terminate this Agreement, subject to the requirements of Paragraph 34, if any of the following events of default occur:
a. Bottler fails to make timely payment for Covered Beverages or Related Products, or of any other material debt owing to Company;
b. The condition of the facilities or equipment used by Bottler in distributing or selling the Covered Beverages and Related Products within the Territory fails to meet the sanitary standards reasonably established by Company;
c. Bottler fails to handle the Covered Beverages or Related Products supplied to Bottler under the Finished Goods Supply Agreement in strict conformity with such standards and instructions as Company may reasonably establish;
d. Bottler or any Affiliate of Bottler engages in any of the activities prohibited under Paragraph 14;
e. Bottler fails to comply with its obligations under Paragraph 17; or
f. Bottler breaches in any material respect any of Bottler’s other material obligations under this Agreement. Company may either: (i) exercise its right to terminate under this Paragraph 33 (subject to Paragraph 34), or (ii) pursue any rights and remedies (other than termination) against Bottler with respect to any such event of default.
34. Upon the occurrence of any of the events of default enumerated in Paragraph 33, Company will give Bottler written notice of default. Within sixty (60) days of receipt of such notice, Bottler will provide Company with a written proposed plan for corrective action, which plan must provide for correction of all issues identified in the notice of default within one year or less. Company will negotiate in good faith with Bottler the terms of the corrective action plan. If Company and Bottler fail to agree on a corrective action plan within sixty (60) days of Bottler’s tender of such plan, Bottler must cure the default described in such notice within one year of receipt of the notice of default. If Bottler fails to implement the agreed corrective action plan to Company’s reasonable satisfaction within the time period specified by the corrective action plan, or, if the parties fail to agree to a corrective action plan and Bottler does not cure within one year of receipt of notice of default, the default will be deemed not to have been cured within such period, and Company may, by giving Bottler further written notice to such effect, terminate this Agreement, suspend sale...
DEFICIENCY TERMINATION. 20.1. Company may also, at Company’s option, terminate this Agreement, subject to the requirements of Section 21 and Section 23, if any of the following events of default occur:
20.1.1. Bottler fails to make timely payment for Concentrate, or of any other material debt owing to Company;
20.1.2. The condition of the facilities or equipment used by Bottler in manufacturing the Authorized Covered Beverages, as reflected in any data collected by Company or generated by Bottler, or in any audit or inspection conducted by or on behalf of Company, fails to meet the Technical Requirements reasonably established by Company, and Bottler fails to complete corrective measures approved by Company within the timeframe therefor reasonably established by Company and specified in the applicable Technical Corrective Action Plan;
20.1.3. Bottler fails to handle the Concentrates or manufacture or handle the Authorized Covered Beverages in strict conformity with the Technical Requirements and applicable laws, rules and regulations and Bottler fails to complete corrective measures approved by Company within the timeframe therefor reasonably established by Company;
20.1.4. Bottler or any Affiliate of Bottler engages in any of the activities prohibited under Section 10;
20.1.5. A Change of Control occurs with respect to Bottler, except as permitted under Bottler’s CBA;
20.1.6. Any Disposition of any voting securities representing more than fifty percent (50%) of the voting power of any Bottler Subsidiary (other than to a wholly-owned Affiliate in connection with an internal corporate reorganization) is made by Bottler or by any Bottler Subsidiary, except as permitted under Bottler’s CBA. “Bottler Subsidiary” means any Person that is Controlled, directly or indirectly, by Bottler, and that is a party, or Controls directly or indirectly a party, to an agreement with Company or any of its Affiliates regarding the manufacturing of Authorized Covered Beverages;
DEFICIENCY TERMINATION. 22.1. In addition to the events of default and remedy described in Section 21, Company may also terminate this Agreement, subject to the requirements of Section 23 and Section 25, if any of the following events of default occur:
22.1.1. Bottler fails to make timely payment for Covered Beverages or Related Products, or of any other material debt owing to Company;
22.1.2. The condition of the facilities or equipment used by Bottler in distributing or selling the Covered Beverages and Related Products fails to meet the sanitary standards reasonably established by Company;
22.1.3. Bottler fails to handle the Covered Beverages or Related Products in strict conformity with such standards and instructions as Company may reasonably establish;
22.1.4. Bottler or any Affiliate of Bottler engages in any of the activities prohibited under Section 13;
22.1.5. Bottler fails to comply with its obligations under Section 14;
22.1.6. A Change of Control occurs with respect to Bottler without the consent of Company;
22.1.7. Any Disposition of any voting securities representing more than fifty percent (50%) of the voting power of any Bottler Subsidiary (other than to a wholly-owned Affiliate in connection with an internal corporate reorganization) is made without the consent of Company by Bottler or by any Bottler Subsidiary. “Bottler Subsidiary” means any Person that is Controlled, directly or indirectly, by Bottler, and that is a party, or Controls directly or indirectly a party, to an agreement with Company or any of its Affiliates regarding the distribution or sale of Covered Beverages or Related Products; or