Common use of Payment on Termination of Commercial Production Clause in Contracts

Payment on Termination of Commercial Production. In addition to the costs and expenses payable in Section 8.4, in the event of termination of this Agreement, except by Celator as a result of a breach by Xxxxxx under Section 8.2 or expiry of the Term of this Agreement, Celator shall pay Xxxxxx (a) the difference, if any, between the Production Price of Product actually ordered and purchased by Celator in the calendar year in which termination occurs and, the greater of the (i) Production Price of the Annual Obligation and (ii) Production Price of the Annual Obligation, as defined in Section 4.3, in such calendar year, (b) as liquidated damages and not as a penalty, **************** of the Production Price of the Annual Obligation for the next succeeding calendar year after the calendar year in which termination occurs.

Payment on Termination of Commercial Production. In addition to the costs and expenses payable in Section 8.4, in the event of termination of this Agreement, except by Celator as a result of a breach by Xxxxxx under Section 8.2 or expiry of the Term of this Agreement, Celator shall pay Xxxxxx (a) the difference, if any, between the Production Price of Product actually ordered and purchased by Celator in the calendar year in which termination occurs and, the greater of the (i) Production Price of the Annual Obligation and (ii) Production Price of the Annual Obligation, as defined in Section 4.3, in such calendar year, (b) as liquidated damages and not as a penalty, [**************** ] of the Production Price of the Annual Obligation for the next succeeding calendar year after the calendar year in which termination occurs.