Minimum Unit Sales Clause Samples
The Minimum Unit Sales clause sets a required threshold for the number of units that must be sold within a specified period. Typically, this clause applies to distribution or licensing agreements, where the licensee or distributor is obligated to achieve certain sales targets to maintain their rights under the contract. By establishing clear sales expectations, the clause ensures that both parties are aligned on performance standards and provides a mechanism for the licensor or supplier to terminate or renegotiate the agreement if the minimum sales are not met, thereby protecting their commercial interests.
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Minimum Unit Sales. It is hereby agreed that the following language is added to Section 6.8 of the Agreement. “Orthovita agrees to achieve Minimum Unit Sales of BioActive VITOSS FOAM Products during the first two years after its First Commercial Sale to the end use market. Notwithstanding anything to the contrary contained herein, BioActive VITOSS FOAM Products shall have separate and independently calculated Minimum Unit Sales requirements (cumulative by size and configuration) as *** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST UNDER 17 C.F.R. SECTIONS 200.80(B)(4) AND 230.406. stated below, where one Unit is equivalent to one part number of BioActive VITOSS FOAM Product: Year One: [***] Units Year Two: [***] Units Any failure by Orthovita to achieve Minimum Unit Sales for BioActive VITOSS FOAM Product shall not result in an increase to the BioActive VITOSS FOAM Royalty. In the event that Orthovita does not achieve Net Sales of BioActive VITOSS FOAM Products sufficient to pay royalties in the amount of [***] cumulatively during the first three years after its First Commercial Sale, Orthovita shall promptly reimburse KNC for development costs (at reasonable and billable manpower rates) for the BioActive VITOSS FOAM Products which have become Commercial Products, up to a maximum of [***] less the aggregate amount of royalties actually paid to KNC related to BioActive VITOSS FOAM Products.”
Minimum Unit Sales. Orthovita agrees to achieve minimum annual unit sales of the Commercial Product(s) (the “Minimum Unit Sales”) during the first two years after the First Commercial Sale to the end use market. If Orthovita does not achieve the Minimum Unit Sales, the royalty payment due in this Section 6 shall increase to [**]. Minimum Unit Sales following the First Commercial Sale will be as follows (any size/ any dimension) for any of the Commercial Products: Year One: [**] per year Year Two: [**] per year In the event that Orthovita does not achieve Net Sales on Commercial Products sufficient to pay royalties in the amount of [$200,000] cumulatively from the First Commercial Sale during the first three years after the First Commercial Sale, Orthovita shall promptly reimburse KNC for its development costs (at reasonable billable manpower rates) for the Commercial Products, up to a maximum of [**] less the aggregate amount of royalties actually paid to KNC under this Section 6. Minimum Unit Sales for Additional Products will be agreed upon and established after good faith reasonable negotiations by the parties prior to product launch for such Additional Products.
Minimum Unit Sales. LAVIPHARM shall achieve Product sales in the Territory during the first Contract Year of not less than (***) Units and during the second Contract Year of not less than (***) units For each subsequent Contract Year, the Minimum Unit Sales shall be a number of units equal to the sum of (i) the prior Contract Year's Minimum Unit Sales in the Territory plus (ii) fifty percent (50%) of the amount by which LAVIPHARM's actual Unit sales for such prior Contract Year exceeded such Minimum Unit Sales. LAVIPHARM shall be permitted (but shall not be obligated) to cure a failure to achieve Minimum Unit Sales for a particular Contract Year by making payment to SENETEK, within thirty (30) days after the end of such Contract Year, of the royalty that would have been due if LAVIPHARM had achieved *** Confidential portions of this material have been omitted and filed separately with the securities and Exchange Commission. such Minimum Unit Sales, provided that LAVIPHARM shall not be permitted to so cure its failure to achieve Minimum Unit Sales in two successive Contract Years.
Minimum Unit Sales. OrthoLogic agrees that Attributable Units will be equal to or greater than 50% of , 425,000 and 450,000 for Contract years 4 and 5 respectively (the "Minimum Unit Sales").
Minimum Unit Sales. PhotoMedex shall meet the following net unit sales of Metvixia (actual sales minus returns) during the Term of the Agreement: Q1 Q2 Q3 Q4 Total 2010 [**] [**] [**] [**] [**] 2011 [**] [**] [**] [**] [**] 2012 [**] [**] [**] [**] [**]