Common use of Minimum Purchase Requirements Clause in Contracts

Minimum Purchase Requirements. A. Minimum Purchase Requirements as Exclusive Manufacturer (New Doors) - :The number of Units of SmartGate Products which Rytec must purchase as original equipment for newly manufactured high speed industrial doors in order to retain the right to be the Exclusive Manufacturer pursuant to subparagraph 02.1(i) which can purchase SmartGate Products for original equipment in new high speed industrial doors is: Minimum Purchase Requirements as Exclusive Manufacturer MINIMUM PURCHASE REQUIREMENTS CONTRACT PERIOD AS MANUFACTURER (NEW DOORS) 0 - March 30, 2003 0 Units April 1, 2003 to end of Year 1 650 Units/90-day period Year 2 of Agreement 750 Units/90-day period Year 3 of Agreement 850 Units/90-day period Year 4 of Agreement 950 Units/90-day period Year 5 of Agreement 1,050 Units/90-day period The proportionate minimum purchase requirements shall be waived for: (i) any period during which SmartGate fails to fulfill Rytec purchase orders with regard to the stated minimum pursuant to Schedule 03.1; and (ii) any period during which SmartGate is unable to deliver SmartGate products which perform the intended function in a commercial manner. Should Rytec fail to satisfy the Minimum Purchase Requirements as Exclusive Manufacturer under this subsection A, this Agreement shall remain effective and binding and Rytec shall become a non-exclusive manufacturer entitled to purchase SmartGate Products and SmartGate shall be entitled to sell its Products to other manufacturers for the integration into high speed industrial doors within the Territory. In such event, Rytec shall continue to be the Exclusive Distributor of SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii). B. Exclusive Distributor Requirements (Retrofit) - Rytec shall have the right to be the Exclusive Distributor of SmartGate Products pursuant to subparagraph 02.1(ii) for retrofit sales for a period of one year from the full execution of this Agreement, provided Rytec meets the following criteria: (i) within six months of the date of this Agreement, Rytec demonstrates a pre-production prototype for retrofit on at least one door ("Model") manufactured by at least two of Rytec's largest competitors; and (ii) at tradeshows determined by Rytec and at the National Manufacturing Week show in March 2003 ("NMW") Rytec will show and demonstrate its retrofit capabilities and will be prepared to take orders for the product; and (iii) Rytec shall have developed for distribution at or following the NMW sales literature, product video, installation video, and installation instructions for retrofit products. Within sixty (60) days following the NMW Rytec shall advise SmartGate as to whether or not it desires to be the Exclusive Distributor during the last four years of the term of thus Agreement. If said notice is in the affirmative, Rytec and SmartGate shall then have the next two-month period to conduct due diligence and market analysis based upon results of the industry's response at NMW and to negotiate the terms of an extension of the Exclusive Distributor arrangement for the last four years of the term of this Agreement. Factors in such negotiations will include, but not be limited to: minimum sales quantities; pricing; warranty and territory. In the event Rytec's response is in the negative or if Rytec and SmartGate cannot reach mutual agreement on the Exclusive Distributor extension, then, in such event, this Agreement shall remain in effect and binding: provided however, Rytec's right to purchase and distribute SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii) shall become non-exclusive and SmartGate shall be entitled to sell its Products to others, including distributors and end-users within the Territory for retrofit purposes on installed high speed industrial doors. In such event, Rytec shall continue to be the Exclusive Manufacturer of SmartGate Products for new manufactured high speed industrial doors pursuant to subsection 02.1(i).

Minimum Purchase Requirements. A. Minimum Purchase Requirements as Exclusive Manufacturer (New Doors) - :The number of Units of SmartGate Products which Rytec must purchase as original equipment In partial consideration for newly manufactured high speed industrial doors the exclusive rights in order the Territory in the Field being granted it under this Agreement, AngioDynamics shall use reasonable efforts to retain achieve the right to be the Exclusive Manufacturer pursuant to subparagraph 02.1(i) which can purchase SmartGate Products for original equipment in new high speed industrial doors is: Minimum Purchase Requirements as Exclusive Manufacturer MINIMUM PURCHASE REQUIREMENTS CONTRACT PERIOD AS MANUFACTURER (NEW DOORS) 0 - March 30, 2003 0 Units April 1, 2003 to end of Year 1 650 Units/90-day period Year 2 of Agreement 750 Units/90-day period Year 3 of Agreement 850 Units/90-day period Year 4 of Agreement 950 Units/90-day period Year 5 of Agreement 1,050 Units/90-day period The proportionate minimum purchase requirements set forth in Schedule “D” hereto for the Product. Notwithstanding anything to the contrary herein contained, AngioDynamics shall not be waived forresponsible for failing to achieve the minimum purchase requirements established for it hereunder if such failure is directly attributable to: (i) any period during the failure by Bioniche to deliver a sufficient quantity of the Product which SmartGate fails satisfies the Specifications in response to fulfill Rytec purchase orders placed in accordance with regard Section 7.7 hereof; and/or (ii) an Event of Force Majeure, as defined in Section 7.10 hereof. If AngioDynamics does not achieve the minimum purchase requirements in any particular Contract Year (the “Deficient Contract Year”), Bioniche’s sole remedy shall be to convert the exclusive license and distributor status of AngioDynamics into a non-exclusive relationship following ninety (90) days written notice to AngioDynamics. Notwithstanding the foregoing, AngioDynamics shall be able to cure any noticed failure to meet the minimum purchase requirements by doing the following within the ninety (90) day notice period: (i) purchasing an amount of Product equal to the stated difference between the amount of Product actually purchased by AngioDynamics in the Deficient Contract Year and AngioDynamics’ minimum pursuant to Schedule 03.1purchase requirements for the Deficient Contract Year; and (ii) any period during which SmartGate is unable purchasing an amount of Product equal to deliver SmartGate products which perform fifteen percent (15%) of its annual minimum purchase requirements for the intended function in a commercial mannerthen-current Contract Year. Should Rytec fail If AngioDynamics fully complies with (i) and (ii) above, Bioniche shall have no right to satisfy convert the Minimum Purchase Requirements as Exclusive Manufacturer under this subsection A, this Agreement shall remain effective exclusive license and binding and Rytec shall become distributor status of AngioDynamics into a non-exclusive manufacturer entitled to purchase SmartGate Products and SmartGate shall be entitled to sell its Products to other manufacturers for the integration into high speed industrial doors within the Territoryrelationship. In such event, Rytec shall continue to be the Exclusive Distributor Any amount of SmartGate Products for retrofit on installed high speed industrial doors Product purchased pursuant to subsection 02.1(ii). B. Exclusive Distributor Requirements (Retrofit) - Rytec shall have the right to be the Exclusive Distributor of SmartGate Products pursuant to subparagraph 02.1(ii) for retrofit sales for a period of one year from the full execution of this Agreement, provided Rytec meets the following criteria: (i) within six months above shall not apply to the minimum purchase requirements of the date then-current Contract Year, but the amount of this Agreement, Rytec demonstrates a pre-production prototype for retrofit on at least one door ("Model") manufactured by at least two of Rytec's largest competitors; and Product purchased pursuant to (ii) at tradeshows determined by Rytec and at above shall apply to the National Manufacturing Week show in March 2003 ("NMW") Rytec will show and demonstrate its retrofit capabilities and will be prepared to take orders for the product; and (iii) Rytec shall have developed for distribution at or following the NMW sales literature, product video, installation video, and installation instructions for retrofit products. Within sixty (60) days following the NMW Rytec shall advise SmartGate as to whether or not it desires to be the Exclusive Distributor during the last four years minimum purchase requirements of the term of thus Agreement. If said notice is in the affirmative, Rytec and SmartGate shall then have the next twothen-month period to conduct due diligence and market analysis based upon results of the industry's response at NMW and to negotiate the terms of an extension of the Exclusive Distributor arrangement for the last four years of the term of this Agreement. Factors in such negotiations will include, but not be limited to: minimum sales quantities; pricing; warranty and territorycurrent Contract Year. In the event Rytec's response is that a Second Entry Product enters the market in the negative or if Rytec Territory and SmartGate cannot reach mutual agreement on is sold in the Exclusive Distributor extensionField at any time during the Term, then, in such event, this Agreement shall remain in effect and binding: provided however, Rytec's right any annual minimum purchase requirements agreed to purchase and distribute SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii) shall become non-exclusive and SmartGate hereunder shall be entitled to sell its Products to othersautomatically reduced by fifty percent (50%). Such decrease shall be on a going forward basis only, including distributors and end-users within the Territory with a pro rata effect being calculated for retrofit purposes on installed high speed industrial doors. In such event, Rytec shall continue to be the Exclusive Manufacturer of SmartGate Products for new manufactured high speed industrial doors pursuant to subsection 02.1(i)any partial Contract Year.

Minimum Purchase Requirements. A. (1) Distributor agrees to purchase and take delivery of the minimum amount of Products during each year during the term of this Agreement as established pursuant to this Section 2(f)(1) (the “Minimum Purchase Requirements”). The initial Minimum Purchase Requirements are set forth on attached Exhibit C. Distributor acknowledges that, for the reasons stated in Section 2(a) above relating to the Products being new products in the early stages of introduction to the Territory and elsewhere, EnteroMedics has limited information as Exclusive Manufacturer of the Effective Date about market demand, pricing, the desired speed of introduction, and other factors relating to the Products and the Territory on which to base the Minimum Purchase Requirements. Accordingly, Distributor agrees that (New Doorsi) - :The number of Units of SmartGate Products which Rytec must purchase as original equipment for newly manufactured high speed industrial doors in order to retain the right to be the Exclusive Manufacturer pursuant to subparagraph 02.1(i) which can purchase SmartGate Products for original equipment in new high speed industrial doors is: Minimum Purchase Requirements as Exclusive Manufacturer MINIMUM PURCHASE REQUIREMENTS CONTRACT PERIOD AS MANUFACTURER (NEW DOORS) 0 - March 30, 2003 0 Units April 1, 2003 to end of Year 1 650 Units/90-day period Year 2 of Agreement 750 Units/90-day period Year 3 of Agreement 850 Units/90-day period Year 4 of Agreement 950 Units/90-day period Year 5 of Agreement 1,050 Units/90-day period The proportionate set forth on Exhibit C state the minimum purchase requirements shall be waived for: (i) any period during which SmartGate fails to fulfill Rytec purchase orders with regard to amounts for the stated minimum pursuant to Schedule 03.1; Minimum Purchase Requirements and (ii) any period during which SmartGate is unable to deliver SmartGate products which perform the intended function in a commercial manner. Should Rytec fail to satisfy the Minimum Purchase Requirements for 2013 and thereafter may be increased by EnteroMedics consistent with the strategy that EnteroMedics adopts for development of the market in the Territory and based on information that EnteroMedics obtains through its market research and market development activities, taking into account information and advice provided by Distributor. If the parties are unable to agree on the Minimum Purchase Requirements for 2013 or any calendar year thereafter (and for any periods within any such calendar year), EnteroMedics may exercise its remedies as Exclusive Manufacturer under this subsection Aprovided in the last sentence of Section 6(b) and Section 6(f). Distributor further agrees that the Minimum Purchase Requirements are not intended to state, this Agreement and shall remain effective and binding and Rytec shall become not be interpreted to state, a non-exclusive manufacturer entitled to purchase SmartGate Products and SmartGate shall be entitled commitment by EnteroMedics to sell its to Distributor any particular quantities of the Products to other manufacturers for the integration into high speed industrial doors within the Territory. In such event, Rytec shall continue to be the Exclusive Distributor of SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii)in any time period. B. Exclusive (2) Distributor’s failure to achieve the Minimum Purchase Requirements for any time period shall entitle EnteroMedics to exercise its remedies as provided in the last sentence of Section 6(b) and Section 6(f). Distributor Requirements (Retrofit) - Rytec shall have the right to be the Exclusive Distributor of SmartGate Products pursuant to subparagraph 02.1(ii) for retrofit sales for a period of one year from the full execution of this Agreement, provided Rytec meets the following criteria: acknowledges and agrees that (i) within six months of it has assisted EnteroMedics to fix the date of this Agreementminimum purchase quantities stated on Exhibit C, Rytec demonstrates a pre-production prototype for retrofit on at least one door ("Model") manufactured by at least two of Rytec's largest competitors; and (ii) at tradeshows determined by Rytec and at the National Manufacturing Week show minimum purchase quantities are reasonable in March 2003 ("NMW") Rytec will show and demonstrate its retrofit view of Distributor’s capabilities and will be prepared market conditions in the Territory, and (iii)the provisions of this Section 2(f) are essential to take orders this Agreement as stating the minimum amount of Product sales which justify EnteroMedics’ grant to Distributor of distribution rights for the product; and (iii) Rytec shall have developed for distribution at or following the NMW sales literature, product video, installation video, and installation instructions for retrofit products. Within sixty (60) days following the NMW Rytec shall advise SmartGate as to whether or not it desires to be the Exclusive Distributor during the last four years of the term of thus Agreement. If said notice is in the affirmative, Rytec and SmartGate shall then have the next two-month period to conduct due diligence and market analysis based upon results of the industry's response at NMW and to negotiate the terms of an extension of the Exclusive Distributor arrangement for the last four years of the term of this Agreement. Factors in such negotiations will include, but not be limited to: minimum sales quantities; pricing; warranty and territory. In the event Rytec's response is in the negative or if Rytec and SmartGate cannot reach mutual agreement on the Exclusive Distributor extension, then, in such event, this Agreement shall remain in effect and binding: provided however, Rytec's right to purchase and distribute SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii) shall become non-exclusive and SmartGate shall be entitled to sell its Products to others, including distributors and end-users within the Territory for retrofit purposes on installed high speed industrial doors. In such event, Rytec shall continue to be the Exclusive Manufacturer of SmartGate Products for new manufactured high speed industrial doors pursuant to subsection 02.1(i)Products.

Minimum Purchase Requirements. A. Minimum Purchase Requirements as Exclusive Manufacturer (New Doors) - :: The number of Units of SmartGate Products which Rytec must purchase as original equipment for newly manufactured high speed industrial doors in order to retain the right to be the Exclusive Manufacturer pursuant to subparagraph 02.1(i) which can purchase SmartGate Products for original equipment in new high speed industrial doors is: Minimum Purchase Requirements as Exclusive Manufacturer <TABLE> <CAPTION> MINIMUM PURCHASE REQUIREMENTS CONTRACT PERIOD AS MANUFACTURER (NEW DOORS) <S> <C> 0 - March 30, 2003 0 Units April 1, 2003 to end of Year 1 650 Units/90-day period Year 2 of Agreement 750 Units/90-day period Year 3 of Agreement 850 Units/90-day period Year 4 of Agreement 950 Units/90-day period Year 5 of Agreement 1,050 Units/90-day period </TABLE> <PAGE> 3 The proportionate minimum purchase requirements shall be waived for: (i) any period during which SmartGate fails to fulfill Rytec purchase orders with regard to the stated minimum pursuant to Schedule 03.1; and (ii) any period during which SmartGate is unable to deliver SmartGate products which perform the intended function in a commercial manner. Should Rytec fail to satisfy the Minimum Purchase Requirements as Exclusive Manufacturer under this subsection A, this Agreement shall remain effective and binding and Rytec shall become a non-exclusive manufacturer entitled to purchase SmartGate Products and SmartGate shall be entitled to sell its Products to other manufacturers for the integration into high speed industrial doors within the Territory. In such event, Rytec shall continue to be the Exclusive Distributor of SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii). . B. Exclusive Distributor Requirements (Retrofit) - Rytec shall have the right to be the Exclusive Distributor of SmartGate Products pursuant to subparagraph 02.1(ii) for retrofit sales for a period of one year from the full execution of this Agreement, provided Rytec meets the following criteria: (i) within six months of the date of this Agreement, Rytec demonstrates a pre-production prototype for retrofit on at least one door ("Model") manufactured by at least two of Rytec's largest competitors; and (ii) at tradeshows determined by Rytec and at the National Manufacturing Week show in March 2003 ("NMW") Rytec will show and demonstrate its retrofit capabilities and will be prepared to take orders for the product; and (iii) Rytec shall have developed for distribution at or following the NMW sales literature, product video, installation video, and installation instructions for retrofit products. Within sixty (60) days following the NMW Rytec shall advise SmartGate as to whether or not it desires to be the Exclusive Distributor during the last four years of the term of thus Agreement. If said notice is in the affirmative, Rytec and SmartGate shall then have the next two-month period to conduct due diligence and market analysis based upon results of the industry's response at NMW and to negotiate the terms of an extension of the Exclusive Distributor arrangement for the last four years of the term of this Agreement. Factors in such negotiations will include, but not be limited to: minimum sales quantities; pricing; warranty and territory. In the event Rytec's response is in the negative or if Rytec and SmartGate cannot reach mutual agreement on the Exclusive Distributor extension, then, in such event, this Agreement shall remain in effect and binding: provided however, Rytec's right to purchase and distribute SmartGate Products for retrofit on installed high speed industrial doors pursuant to subsection 02.1(ii) shall become non-exclusive and SmartGate shall be entitled to sell its Products to others, including distributors and end-users within the Territory for retrofit purposes on installed high speed industrial doors. In such event, Rytec shall continue to be the Exclusive Manufacturer of SmartGate Products for new manufactured high speed industrial doors pursuant to subsection 02.1(i).. 04.3