Common use of Minimum Order Requirement Clause in Contracts

Minimum Order Requirement. In any given period of 6 calendar months, TearLab must place in those 6 months aggregate Purchase Orders equal to 50% of the aggregate of the forecast orders for Product provided in the respect of the first month of that period (the Minimum Orders). If TearLab fails to do so, then it must pay to MiniFAB an amount equal to the Price (as set out in the Pricing Schedule) multiplied by the difference between the Minimum Orders and the actual aggregate Purchase Orders. Unless otherwise agreed, such amount, if any, will be calculated and invoiced by MiniFAB within 60 days of the end of the relevant 6 month period, and be payable by TearLab within 40 days of invoice. Where any such sum is paid, it will be deemed to be equivalent to a Purchase Order of the relevant number of Products in the month in which it is paid, and be taken into account in any further calculation under this clause in respect of that month. [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.