Common use of Initial Purchase Commitment Clause in Contracts

Initial Purchase Commitment. Solarmax estimates that it will purchase and sell to its customers a minimum of three hundred seventy-five (375) Li-Max Energy System units within the first six (6) months of the Term of this Agreement. If, by the conclusion of said 6-month period, Solarmax has not purchased at least sixty percent (60%) of said minimum number of Li-Max Energy System units, then Li-Max shall have the right to give Solarmax notice thereof (“Notice of Deficient Purchase”), the receipt of which shall obligate Solarmax to purchase, within sixty (60) days, an additional number of Li-Max Energy System units sufficient to meet the 60% threshold. If, by the conclusion of said 60-day period, Solarmax has not purchased an additional number of Li-Max Energy System units sufficient to meet the 60% threshold, then Li-Max shall have the right, but not the obligation, to terminate this Agreement. Notice of such termination must be given within ten (10) days of the conclusion of said 60-day period, and shall be effective thirty (30) days from the date such notice is delivered to Solarmax. Failure to adhere to the foregoing terms for termination shall constitute a waiver of Li-Max’s termination rights under this Section. To the extent Solarmax’s purchases meet or exceed the 60% threshold, or to the extent Solarmax timely purchases a sufficient number of additional Li-Max Energy System units following receipt of a Notice of Deficient Purchase, Li-Max shall have no right to terminate this Agreement under this Section.