Common use of Minimum Spend Clause in Contracts

Minimum Spend. If a Product Agreement contains a minimum spend commitment from the Customer and, at the effective date of termination or expiry of such Product Agreement, such spend commitment has not been reached, then the Customer shall either: (1) within 30 days of such date, pay to Arrow the difference between (i) the minimum spend commitment and (ii) the total amount paid to Arrow by the Customer as at such date. Any such payment shall be without prejudice to the Customer’s liability for, and Arrow’s ability to recover, any other sums from the Customer under this Agreement; or (2) agree that the term of the Product Agreement shall be extended on the same terms until such time as the minimum spend commitment has been satisfied and thereafter, the terms of the Product Agreement shall continue unless and until terminated by the Customer upon 90 days’ written notice.