Common use of Exclusive Source Clause in Contracts

Exclusive Source. For each model of Customized Thermostat, beginning on the date of Final Acceptance of the relevant PTU’s and continuing as long as Comverge is WR’s exclusive reseller of that Customized Thermostat, Comverge will purchase all of its requirements for that Customized Thermostat and Equivalent Thermostats (as defined below) exclusively from WR. Moreover, Comverge will not engage in discussions or negotiations with other persons or entities for purposes of obtaining Customized Thermostats or Equivalent Thermostats from any source other than WR during such period of time; provided, however, Comverge shall not be prohibited from entering into such discussions or negotiations if Comverge rejects the applicable PTU’s pursuant to Article 3.4 or the Customized Thermostats encounter warranty claims of aggregate failure rates in excess of 2% during the then-most-recent twelve-month period (as verified by WR). Notwithstanding the foregoing, Comverge may: (i) honor contractual obligations in existence on the date of Final Acceptance to purchase Equivalent Thermostats from other suppliers; and (ii) honor existing relationships with any of the customers listed in Exhibit A by supplying them with Equivalent Thermostats purchased from other suppliers, but only if the applicable customer listed in Exhibit A specifically requests or requires that Comverge supply Equivalent Thermostats; provided, however, that Comverge shall use commercially reasonable efforts to promote the sale of Customized Thermostats to such customers. “Equivalent Thermostats” means thermostats that have the same or substantially similar application and/or function as do the Customized Thermostats.