Common use of Deficiency Payments; Volume Credits Clause in Contracts

Deficiency Payments; Volume Credits. If Buyer fails to order the annual minimum volume for any Product category as set forth in Exhibit A, then Buyer will be required to pay to Supplier an amount equal to (i) each applicable unit of volume for such Product category below the applicable minimum volume threshold, multiplied by (ii) the applicable Deficiency Tolling Fee for such Product category as set forth on Exhibit A hereto (such amount, a “Volume Related Deficiency Payment”). Notwithstanding the foregoing, in the event Buyer tenders volume for Products to Supplier for processing and Supplier fails to process such volume (for any reason other than a Force Majeure Event) (“Unprocessed Volume”), then the amount of Unprocessed Volume shall be treated as volume ordered by Buyer for the purposes of determining the amount of any Volume Related Deficiency Payment (“Deemed Volume”); provided, that no Unprocessed Volume of a Product shall be Deemed Volume for such Product to the extent that the Unprocessed Volume of such Product is more than twenty percent (20%) greater than the monthly average anticipated order volume of such Product as set forth in the applicable forecast.

Deficiency Payments; Volume Credits. If Buyer fails to order the annual minimum volume for any Product category as set forth in Exhibit A, then Buyer will be required to pay to Supplier an amount equal to (i) each applicable unit of volume for such Product category below the applicable minimum volume threshold, multiplied by (ii) the applicable Deficiency Tolling Fee for such Product category as set forth on Exhibit A hereto (such amount, a “Volume Related Deficiency Payment”). Notwithstanding the foregoing, in the event Buyer tenders volume for Products to Supplier for processing and Supplier fails to process such volume (for any reason other than a Force Majeure Event) (“Unprocessed Volume”), then the amount of Unprocessed Volume shall be treated as volume ordered by Buyer for the purposes of determining the amount of any Volume Related Deficiency Payment (“Deemed Volume”); provided, that no Unprocessed Volume of a Product shall be Deemed Volume for such Product to the extent that the Unprocessed Volume of such Product is more than twenty [**] percent (20[**]%) greater than the monthly average anticipated order volume of such Product as set forth in the applicable forecast.