Minimum Product Commitments Clause Samples
The Minimum Product Commitments clause establishes a requirement for one party, typically the buyer or distributor, to purchase or order a specified minimum quantity of products within a defined period. This clause often details the exact quantities, timeframes, and any consequences for failing to meet these commitments, such as penalties or loss of exclusivity. Its core function is to provide the supplier with predictable sales volumes and revenue, thereby reducing the risk of underperformance and ensuring a stable business relationship.
Minimum Product Commitments. During the Term of this Agreement and subject to the terms and conditions of this Agreement, each Month WNR shall:
(a) Reserve the Minimum Product Storage Commitment at the Product Terminals for which WNR shall pay a Minimum Product Storage Reservation Fee;
(b) Throughput the Minimum Product Throughput Commitment at the Product Terminals for which WNR shall pay a Minimum Product Throughput Fee; and
(c) Utilize additive and blending services at the Product Terminals at the Minimum Product Additive and Blending Commitment for which WNR shall pay a Minimum Product Additive and Blending Fee. For the avoidance of doubt, these are monthly system-wide fee commitments for all Product Terminals. During the Term of this Agreement and subject to the terms and conditions of this Agreement, each Month WRT shall provide storage services, throughput services and Product Additive and Blending Services at the Product Terminals in no less than the volumes covered under the Minimum Product Storage Commitment, the Minimum Product Throughput Commitment and the Minimum Product Additive and Blending Commitment, as applicable.
Minimum Product Commitments. During the Term of this Agreement and subject to the terms and conditions of this Agreement, each Month SPPR shall:
(a) Reserve the Minimum Product Storage Commitment at the Terminal Facilities for which SPPR shall pay a Minimum Product Storage Reservation Fee;
(b) Throughput the Minimum Product Throughput Commitment at the Terminal Facilities for which SPPR shall pay a Minimum Product Throughput Fee; and
(c) Utilize Product Additive and Blending Services at the Terminal Facilities at the Minimum Product Additive and Blending Commitment for which SPPR shall pay a Minimum Product Additive and Blending Fee. TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH THREE ASTERISKS (***).
(d) For the avoidance of doubt, these are monthly system-wide fee commitments for all Terminal Facilities. During the Term of this Agreement and subject to the terms and conditions of this Agreement, each Month WRT shall provide storage services, throughput services and Product Additive and Blending Services at the Terminal Facilities in no less than the volumes covered under the Minimum Product Storage Commitment, the Minimum Product Throughput Commitment and the Minimum Product Additive and Blending Commitment, as applicable.