Common use of Minimum Purchases Clause in Contracts

Minimum Purchases. 6.1. In order to secure and maintain it exclusive rights hereunder, VDM will purchase a minimum number of Dispensers each year, based on the date of binding purchase orders, from INN or an entity designated by INN, as follows: Inception through Dec. 31, 2006 40,000 40,000 Calendar 2007 75,000 115,000 Calendar 2008 115,000 230,000 Calendar 2009 and thereafter 5% increase over prior calendar year minimum Prior year minimum plus current Time Period minimum 6.2. If VDM fails to meet the minimum in any calendar year, exclusivity shall not be terminated unless such failure to meet the Aggregate Minimum is not met by the end of the following calendar year. If VDM loses its exclusivity through failure to make minimums, the balance of the term of this Agreement shall be on a non-exclusive basis provided VDM continues to pay all Royalties earned when due and otherwise complies with this Agreement. 6.3. First year minimums shall be accrued from first purchase of dispensers by VDM, which occurs prior to inception (i.e. prior to the start of the Term) of this agreement. 6.4. INN agrees to sell dispenser components to VDM using “most favored nation” pricing, meaning the price will be no lower that INN’s best price offered it’s customers, prior to royalties, and consistent with the provisions of the Master Agreement.