Annual Minimum Purchase Quantity Clause Samples

Annual Minimum Purchase Quantity. DKSH shall comply with the Annual Minimum Purchase Quantity in the Territory in any Calendar Year during the Term as set out in Annex 3. In the event that DKSH does not meet the Annual Minimum Purchase Quantity in the Territory in any Calendar Year during the Term, DKSH shall compensate the difference between the Annual Actual Purchase Quantity and 90% of the Annual Minimum Purchase Quantity at the Supply Price, except where the reason for the shortfall in Annual Purchase Amount is attributable to changes in government purchasing regulations or other external factors which are outside the control of DKSH. DKSH shall pay the difference within twenty-one (21) days as from the receipt of the notice from CMS. If DKSH fails to pay the difference within the agreed time, CMS shall be entitled to terminate the Agreement with a three (3) months advance notice in which case CMS claim against DKSH shall be waived. In the event of changes of government purchasing regulations, both Parties shall enter into negotiation in good faith to resolve the issue. In the event that DKSH fails to meet the Annual Minimum Purchase Quantity in two (2) consecutive Calendar Year during the Term or DKSH fails to meet the 70% of the Annual Minimum Purchase Quantity in any Calendar Year during the Term, CMS is entitled to terminate the Agreement as per Article 10.3.