Common use of Market Collapse Event Clause in Contracts

Market Collapse Event. A Market Collapse Event occurs if there will be a reduction in VicForests planned sales of timber in one or more Contract Years which: (a) reduces VicForests’ planned total sales by 30% or more in that Contract Year; or (b) reduces VicForests’ planned D+ sawlog sales by 100,000m3 in a Contract Year, arising as a result of one or more of the following occurring: (c) one or more of VicForests’ customers suffers an Insolvency Event; (d) VicForests’ suspends deliveries to one or more of its customers due to such customer(s) failing to pay for timber in accordance with contractual arrangements with VicForests; (e) one or more of VicForests’ customers refuses to accept or suspends the deliveries of Timber for a period of greater than 14 days (regardless of whether the customer has a contractual right to do so or not) and VicForests reasonably considers that: (i) it is not feasible to deliver the volume of timber that would have been delivered in that period to that customer at a later stage in the Contract Year; and (ii) it would be detrimental to the interests of VicForests or the broader forestry industry for VicForests to exercise its rights to the full extent in respect of the relevant contractual arrangements (for example: a customer does not accept deliveries for a period of time resulting in a reduction in the quantity of timber it purchases from VicForests, and VicForests reasonably considers that to xxx that customer or to require the customer to pay “take or pay” penalties would have the likely effect of the customer closing its sawmill or suffering an Insolvency Event). (f) VicForests is provided written notice by one or more of its customers that the customer wishes to reduce its intake of timber from VicForests (as compared with the quantity of timber it is contractually obliged to purchase) and VicForests reasonably considers it would be detrimental to the interests of VicForests or the broader forestry industry for VicForests to insist on strict compliance by the customer of the contractual arrangements between VicForests and that customer (for example: a customer notifies VicForests that it wishes to reduce the quantity of timber it is contractually obliged to purchase, and VicForests reasonably considers that to require the customer to pay “take or pay” penalties or continue to deliver the full quantity of timber to that customer would have the likely effect of the customer closing its sawmill or suffering an Insolvency Event).

Market Collapse Event. A Market Collapse Event occurs if there will be a reduction in VicForests planned sales of timber in one or more Contract Years which: (a) reduces VicForests’ planned total sales by 30% or more in that Contract Year; or (b) reduces VicForests’ planned D+ sawlog sales by 100,000m3 in a Contract Year, arising as a result of one or more of the following occurring: (c) one or more of VicForests’ customers suffers an Insolvency Event; (d) VicForests’ suspends deliveries to one or more of its customers due to such customer(s) failing to pay for timber in accordance with contractual arrangements with VicForests; (e) one or more of VicForests’ customers refuses to accept or suspends the deliveries of Timber for a period of greater than 14 days (regardless of whether the customer has a contractual right to do so or not) and VicForests reasonably considers that: (i) it is not feasible to deliver the volume of timber that would have been delivered in that period to that customer at a later stage in the Contract Year; and (ii) it would be detrimental to the interests of VicForests or the broader forestry industry for VicForests to exercise its rights to the full extent in respect of the relevant contractual arrangements (for example: a customer does not accept deliveries for a period of time resulting in a reduction in the quantity of timber it purchases from VicForests, and VicForests reasonably considers that to xxx sue that customer or to require the customer to pay “take or pay” penalties would have the likely effect of the customer closing its sawmill or suffering an Insolvency Event). (f) VicForests is provided written notice by one or more of its customers that the customer wishes to reduce its intake of timber from VicForests (as compared with the quantity of timber it is contractually obliged to purchase) and VicForests reasonably considers it would be detrimental to the interests of VicForests or the broader forestry industry for VicForests to insist on strict compliance by the customer of the contractual arrangements between VicForests and that customer (for example: a customer notifies VicForests that it wishes to reduce the quantity of timber it is contractually obliged to purchase, and VicForests reasonably considers that to require the customer to pay “take or pay” penalties or continue to deliver the full quantity of timber to that customer would have the likely effect of the customer closing its sawmill or suffering an Insolvency Event).