Common use of Effect of Future Laws Clause in Contracts

Effect of Future Laws. In the event of the enactment, promulgation, rescission, modification or interpretation of any law or regulation after the date hereof which would (1) materially adversely affect the manner in which either party is obligated to perform under this Agreement, (2) adversely affect for either party the net prices or State Supplemental Rebates or other terms applicable under this Agreement, (3) alter or impose additional criteria for placement of a Covered Product on the PDL, or (4) have the effect of requiring the Net Price or State Supplemental Rebate or other terms applicable under this Agreement to be extended or offered to any third party, each party shall have the right to enter into good faith negotiation with the other in order to seek to agree on reasonable terms for maintaining the intent of the Agreement affected by such enactment, promulgation, etc. Agreement on any such terms shall be in the sole discretion of each party. If the parties do not agree within sixty days of a party’s written request for negotiations, either party may terminate this Agreement with respect to the affected Covered Product(s) upon expiration of the sixty day period, with immediate effect. All provisions of this Agreement remain intact for Covered Product(s) not affected by the changes in law described in this paragraph.

Effect of Future Laws. In the event of the enactment, promulgation, rescission, modification or interpretation of any law or regulation after the date hereof which would (1) materially adversely affect the manner in which either party is obligated to perform under this Agreement, (2) adversely affect for either party the net prices or State Supplemental Rebates or other terms applicable under this Agreement, (3) alter or impose additional criteria for placement of a Covered Product on the PDL, or (4) have the effect of requiring the Net Price or State Supplemental Rebate or other terms applicable under this Agreement to be extended or offered to any third party, each party shall have the right to enter into good faith negotiation with the other in order to seek to agree on reasonable terms for maintaining the intent of the Agreement affected by such enactment, promulgation, etc. Agreement on any such terms shall be in the sole discretion of each party. If the parties do not agree within sixty days of a party’s written request for negotiations, either party may terminate this Agreement with respect to the affected Covered Product(s) upon expiration of the sixty day period, with immediate effect. All provisions of this Agreement remain intact for Covered Product(s) not affected by the changes in law described in this paragraph.