Common use of 175% Limit on Buyer’s DRM Purchase Obligation Clause in Contracts

175% Limit on Buyer’s DRM Purchase Obligation. (A) Subject to the next sentence, during each rolling twelve-month period that begins during the Initial Term (each a “DRM Measurement Period”), Buyer will not be obligated to purchase from Seller more than 175% of the amount of DRM that Buyer purchased from Seller during the 12-month period that immediately preceded the then-current DRM Measurement Period (the “DRM 175% Limit”). Buyer’s purchases of DRM Excess in accordance with Section 4(b)(ii)(B), purchases of Offered DRM in accordance with Section 4(b)(iii)(A), and purchases of DRM in accordance with Section 4(b)(iv) will be excluded from Buyer’s purchases of DRM for the purpose of determining Buyer’s purchases of DRM in excess of the DRM 175% Limit. With respect to the first DRM Measurement Period, which will end on the last day of the fiscal month in which the first anniversary of the Effective Date occurs, and for each of the next eleven consecutive DRM Measurement Periods (each ending on the last day of a fiscal month), the purchase volumes for the applicable number of months immediately preceding the Effective Date will be used to determine Buyer’s rights in accordance with the first sentence of this Section 4(b)(ii)(A). The amount of DRM in excess of the DRM 175% Limit is referred to Execution Copy

Appears in 3 contracts

Samples: Merchandising Agreement (Sears Hometown & Outlet Stores, Inc.), Merchandising Agreement (Sears Hometown & Outlet Stores, Inc.), Merchandising Agreement (Sears Hometown & Outlet Stores, Inc.)

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175% Limit on Buyer’s DRM Purchase Obligation. (A) Subject to the next sentence, during each rolling twelve-month period that begins during the Initial Term (each a “DRM Measurement Period”), Buyer will not be obligated to purchase from Seller more than 175% of the amount of DRM that Buyer purchased from Seller during the 12-month period that immediately preceded the then-current DRM Measurement Period (the “DRM 175% Limit”). Buyer’s purchases of DRM Excess in accordance with Section 4(b)(ii)(B), purchases of Offered DRM in accordance with Section 4(b)(iii)(A), and purchases of DRM in accordance with Section 4(b)(iv) will be excluded from Buyer’s purchases of DRM for the purpose of determining Buyer’s purchases of DRM in excess of the DRM 175% Limit. With respect to the first DRM Measurement Period, which will end on the last day of the fiscal month in which the first anniversary of the Effective Date occurs, and for each of the next eleven consecutive DRM Measurement Periods (each ending on the last day of a fiscal month), the purchase volumes for the applicable number of months immediately preceding the Effective Date will be used to determine Buyer’s rights in accordance with the first sentence of this Section 4(b)(ii)(A). The amount of DRM in excess of the DRM 175% Limit is referred to Execution Copyas the “DRM Excess.” Buyer will notify Seller in writing with respect to each exercise by Buyer of its rights not to purchase the DRM Excess in accordance with this Section 4(b)(ii)(A) (each a “DRM 175% Notice”). Buyer will deliver the DRM 175% Notice within 10 days after the date Buyer’s purchases during a DRM Measurement Period equal or first exceed the DRM 175% Limit.

Appears in 1 contract

Samples: Merchandising Agreement (Sears Hometown & Outlet Stores, Inc.)

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