DEMAND RATCHET Sample Clauses
A Demand Ratchet clause is designed to adjust contractual obligations or pricing based on changes in demand over time. Typically, this clause sets a minimum threshold for purchases or usage that can increase (or 'ratchet up') if actual demand exceeds certain levels during a specified period. For example, if a buyer's demand for a product surpasses the agreed baseline, future minimum purchase requirements may be raised accordingly. The core practical function of this clause is to ensure that suppliers benefit from increased demand by securing higher future commitments, thereby reducing the risk of underutilization and providing more predictable revenue.
DEMAND RATCHET. For the sole purpose of calculating the minimum billing demand reduction in subsection 6.9(b) above, the Demand Ratchet will be calculated using the sum of (i) the Emergency Protected Demand and (ii) the highest applicable Excess Demand established during the preceding 12 months instead of the applicable Contract Demand.
DEMAND RATCHET. The Demand Ratchet will be calculated using the sum of (i) the Protected Demand and (ii) the highest applicable Excess Demand established during the preceding 12 months instead of the applicable Contract Demand. The Demand Ratchet as so calculated will in no case exceed the amount of the applicable Protected Demand.
DEMAND RATCHET. For the sole purpose of calculating the minimum billing demand reduction in subsection