Common use of Extension of Terms Clause in Contracts

Extension of Terms. If neither Kmart nor Salton terminate this Agreement pursuant to Section 10.3, 10.4 or 10.5, as applicable, Kmart shall have the right to extend the term of this Agreement for successive one-year periods through June 30, 2011, by delivering written notice to Salton of its desire to so extend this Agreement on or before May 30 of any year during the Term or any extension period, as applicable. Upon any such extension, the Minimum Product Orders for each Category shall be increased at an annual rate of no more than four percent (4%) from the amount of Minimum Product Orders in the immediately preceding year during each year in which the Term has been so extended. Kmart may terminate this Agreement without cause on sixty (60) days prior written notice at any time during any extension period without cost or penalty.

Extension of Terms. If neither Kmart nor Salton NewTech terminate this Agreement pursuant to Section 10.3, 10.4 or 10.5, as applicable, Kmart shall have the right to extend the term of this Agreement for successive one-year periods through June 30, 2011, by delivering written notice to Salton NewTech of its desire to so extend this Agreement on or before May 30 of any year during the Term or any extension period, as applicable. Upon any such extension, the Minimum Product Orders for each Category shall be increased at an annual rate of no more than four percent (4%) from the amount of Minimum Product Orders in the immediately preceding year during each year in which the Term has been so extended. Kmart may terminate this Agreement without cause on sixty (60) days prior written notice at any time during any extension period without cost or penalty.