Common use of During the Production Term Clause in Contracts

During the Production Term. for Phase II, either Party may initiate the Scale-Down Period according to the following terms and the Agreement will terminate upon the expiration of any Scale-Down Period: 16.2.4.1 CBSW may initiate the Scale-Down Period (a) at any time after the 3rd anniversary of the Commencement Date for Phase II; or (b) if, at the end of any calendar year during the Production Term for Phase II, with the exception of the first full calendar year, Client has failed to order at least 50% of the quantities of Product forecast by Client pursuant to Section 6.2 for delivery during such period. 16.2.4.2 Client may initiate the Scale-Down Period (a) at any time after the 1st anniversary of the Commencement Date for Phase II, subject to payment of the scale-down fees described below in Section 16.2.4.5(d); (b) at any time after the 3rd anniversary of the Commencement Date for Phase II, without payment of scale-down fees; or (c) if, at the end of any calendar year during the Production Term for Phase II, CBSW has failed to provide at least 80% of the quantities of Product ordered by Client pursuant to Section 6.2 for delivery during such period, without payment of scale-down fees.

During the Production Term. for Phase II, either Party may initiate the Scale-Down Period according to the following terms and the Agreement will terminate upon the expiration of any Scale-Down Period: 16.2.4.1 CBSW may initiate the Scale-Down Period (a) at any time after the 3rd anniversary [***] of the Commencement Date for Phase II; or (b) if, at the end of any calendar year during the Production Term for Phase II, with the exception of the first full calendar year[***], Client has failed to order at least 50% of the quantities [***] of Product forecast by Client pursuant to Section 6.2 for delivery during such period. 16.2.4.2 Client may initiate the Scale-Down Period (a) at any time after the 1st anniversary [***] of the Commencement Date for Phase II, subject to payment of the scale-down fees described below in Section 16.2.4.5(d); (b) at any time after the 3rd anniversary [***] of the Commencement Date for Phase II, without payment of scale-down fees; or (c) if, at the end of any calendar year during the Production Term for Phase II, CBSW has failed to provide at least 80% [***] of the quantities of Product ordered by Client pursuant to Section 6.2 for delivery during such period, without payment of scale-down fees.