Common use of Annual Purchase Commitment and Discounts Clause in Contracts

Annual Purchase Commitment and Discounts. a. During the Term of this Agreement, Reseller and BluBØX shall agree by the last day of the current year on the next year’s Purchase Commitment level. b. The size of the commitment made will determine the Reseller Class as shown in the Table below: c. The commitment levels shall include all so-called “one-time” items, exclusive of recurring revenue, and shall be calculated on the basis of the Reseller’s discounted prices. d. The discount levels for each Reseller Class and each category of product are shown in the Table below. The discount levels are applied to BluBØX’s then-current published MSRP Prices thus yielding the Reseller’s purchase price for each product. In addition, certain parts that are widely available from other sources and normally sold at low margins are available from BluB0X for the Reseller’s convenience and classified as U-10, U-15, U-20 and U-25. Such parts are sold at 10%, 15%, 20% and 25% discounts respectively or at the C-level discount, whichever is smaller.

Annual Purchase Commitment and Discounts. a. During the Term of this Agreement, Reseller and BluBØX shall agree by the last day of the current year on the next year’s Purchase Commitment level. b. The size of the commitment made will determine the Reseller Class as shown in the Table below: c. The commitment levels shall include all so-called “one-time” items, exclusive of recurring revenue, and shall be calculated on the basis of the Reseller’s discounted prices. d. The discount levels for each Reseller Class and each category of product are shown in the Table below. The discount levels are applied to BluBØX’s then-current published MSRP Prices thus yielding the Reseller’s purchase price for each product. Initial Selected Class RESELLER CLASS Annual Purchase Commitment A Level Product B Level Product C- Level Product Elite + 500K or more 45% 30% 20% Elite $350K or more 42% 25% 15% X Premier $200K or more 35% 20% 12% Certified $50K or more 28% 15% 10% Partner N/A 15% 15% 10% In addition, certain parts that are widely available from other sources and normally sold at low margins are available from BluB0X for the Reseller’s convenience and classified as U-10, U-15, U-20 U-20, and U-25. Such parts are sold at 10%, 15%, 20% and 25% discounts respectively or at the C-level discount, whichever is smaller.