Common use of Minimum Purchase Commitment Clause in Contracts

Minimum Purchase Commitment. During the Term, Distributor shall purchase an annual minimum amount, with reasonable Quarterly allocation, of Products (the "Minimum Purchase Commitment") for each of the geographic areas as stipulated in the individual schedules included under Exhibit C. If Distributor fails to meet the Minimum Purchase Commitment in any of the geographic areas, the parties shall jointly decide on corrective actions to be undertaken in each such area, and shall agree on a reasonable Minimum Purchase Commitment for the ensuing 6 months. If Distributor fails to meet said agreed upon 6-month Minimum Purchase Commitment, this shall constitute a material breach and basis for termination of distribution rights under Section 3.2, unless the sale of Products in such geographic area of the Territory is restricted by regulatory authority having jurisdiction over Products, or EndoSonics is unable to deliver Products by agreed upon delivery dates. For the purposes of this provision, a "purchase" of Products within the time period set forth in Exhibit C shall mean EndoSonics' shipment of such Products on or before the last day of each of such time periods.