Common use of Firm Purchase Commitment Clause in Contracts

Firm Purchase Commitment. Commencing upon OMEROS’ receipt of the first Product Approval for a Product and thereafter, the forecast for the current month plus the next [†] months following the current month of the Monthly Forecast (the “Firm Purchase Period”) shall constitute a firm purchase and supply commitment (the “Firm Purchase Commitment”), which shall state in detail the quantities of Products ordered and the required delivery dates, and shall be binding on the Parties regarding Products to be purchased and supplied. The forecast for the remaining months of the Monthly Forecast † DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION is for planning purposes only and shall not constitute a commitment to purchase or supply Product. In the event that OMEROS does not ultimately purchase the forecast quantities for each month of the Firm Purchase Commitment period, it shall be obligated to pay to DSM the applicable Cancelled Production Fee for any deficient quantities. However, if DSM is unable for any reason, other than the failure of OMEROS or OMEROS’ Unapproved Vendor timely to provide API and/or Excipients as referenced in Section 4.2.4 or Section 4.4, to supply the Firm Purchase Commitment to OMEROS, OMEROS shall not be obligated to pay for that portion of the Firm Purchase Commitment which DSM could not deliver and DSM shall pay any penalties to the extent such penalties are owing under the provisions of Section 6.8.

Firm Purchase Commitment. Commencing upon OMEROS’ receipt The forecast of the first Product Approval for a Product and thereafter, the forecast for the current month plus the next [†*] months following the current month of the Monthly Forecast (the “Firm Purchase Period”) shall constitute a firm purchase and supply commitment (the “Firm Purchase Commitment”), ) which shall state in detail the quantities of Products ordered and the required delivery dates, and shall be [*] binding on the Parties regarding Products to be purchased and supplied. The forecast for months [*] and [*] of the Monthly Forecast shall be considered semi-firm orders (the “Semi-Firm Purchase Commitment”); and B&L shall be obligated to purchase [*] of such forecast. The forecast for the remaining [*] months of the Monthly Forecast † DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION is for planning purposes only and shall not constitute a commitment to purchase or supply Product. In the event that OMEROS B&L does not ultimately purchase [*] of the forecast quantities for each month of the Firm Purchase Commitment periodperiod and [*] of the forecast quantities for each month of the Semi-Firm Purchase Commitment, it shall be obligated to pay to DSM the applicable Cancelled Production Fee [*] for any deficient quantitiesquantities on the basis of [*] of the Product Price for those quantities which B&L failed to purchase during the Firm Purchase Commitment or the Semi-Firm Purchase Commitment. However, if DSM [*] is unable for any reason, reason other than the failure of OMEROS or OMEROS’ Unapproved Vendor B&L’s designated vendors timely to provide API and/or Excipients as referenced in Section 4.2.4 or Section 4.4, to supply the Firm Purchase Commitment to OMEROSB&L, OMEROS B&L shall not be obligated to pay for that portion of the Firm Purchase Commitment which DSM [*]could not deliver deliver. (g) Section 6.7 of the Supply Agreement, governing the Minimum Contract Commitment, shall be deleted in its entirety and DSM shall pay any penalties to be replaced with the extent such penalties are owing under the provisions of Section 6.8.following: