Common use of Right of Withdrawal Clause in Contracts

Right of Withdrawal. If the Supplier does not provide the goods and services it is obliged to provide, or fails to do so in line with the parties’ contract, LEONI shall be entitled, following the setting of a grace period with a demand for proper performance of the contract to no avail, to withdraw from the contract with respect to the portion not yet performed. However, it is in particular noted that no grace period will be required if (i) the Supplier refuses performance in a serious and final manner, (ii) the Supplier does not perform by the date specified in the Parties’ agreement or within a period designated for its performance within the agreement, although timely performance by such date or within such period is material to LEONI and this was apparent to the Supplier or (iii) material deterioration in the Supplier’s financial circums- tances has occurred which places its performance of the contract at risk, or (iv) an application for the opening of insolvency proceedings over the Supplier’s assets has been made and the opening of any such proceedings has been refused due to a lack of assets in the estate. XXXXX’x statutory rights and claims shall not be deemed limited by the provisions in section 16.