Common use of Long Term Inability to Deliver Clause in Contracts

Long Term Inability to Deliver. In cases of a long term inability to deliver, cessation of payments, the opening of an insolvency proceeding, the refusal to open insolvency proceedings due to insufficient assets, or the commencement of comparable proceedings with respect to one of the parties, the other party shall be entitled to rescind the Agreement with respect to the part that has not yet been performed. If one of the foregoing events occur with respect to Supplier, Supplier shall support Customer to the best of its abilities in Customer’s efforts to move the manufacture of the Contract Products to Customer or to a third party, which support shall include the granting of licenses to intellectual property rights to the extent such rights are necessary for the manufacture of the relevant product(s), such licenses to be granted on terms customary in the industry.

Long Term Inability to Deliver. In cases of a long term inability to deliver, cessation of payments, the opening of an insolvency proceedingproceed‐ ing, the refusal to open insolvency proceedings due to insufficient assets, or the commencement of comparable proceedings with respect to one of the parties, the other party shall be entitled to rescind the Agreement contract with respect to the part that has not yet been performed. If one of the foregoing events occur with respect to the Supplier, the Supplier shall support Customer Buyer to the best of its abilities in CustomerBuyer’s efforts to move the manufacture of the Contract Products supplied item(s) to Customer Buyer or to a third party, which support shall include the granting of licenses to intellectual property proper‐ ty rights to the extent such rights are necessary for the manufacture of the relevant product(s), such licenses to be granted on terms customary custom‐ ary in the industry.