FIRM MINIMUM ANNUAL VOLUME Sample Clauses

The Firm Minimum Annual Volume clause establishes a contractual obligation for one party to purchase or use a specified minimum quantity of goods or services within a defined year. Typically, this clause outlines the exact volume required, the measurement period, and any consequences for failing to meet the minimum, such as penalties or the right for the supplier to adjust pricing. Its core practical function is to provide predictability and security for the supplier by ensuring a baseline level of business, while also clarifying expectations and reducing the risk of underperformance by the buyer.
FIRM MINIMUM ANNUAL VOLUME. In each Contract Year, the Customer shall consume or, in any event, pay for the Adjusted Firm Minimum Annual Volume (“AFMAV”) as determined in the formula below. This AFMAV will not be less than the minimum quantity required to qualify for firm service in the M4 Rate Schedule. The firm quantity not consumed in any Contract Year (the "Firm Deficiency Volume" or “FDV”) shall be as determined in the formula below. AFMAV = FMAV x [(U - DF) / U] FDV = AFMAV - (FV - F) Where: FMAV = Firm Minimum Annual Volume (as identified in Schedule 1) U = number of days in the Contract Year DF = number of days of Force Majeure in the Contract Year FV = total firm volume taken in the Contract Year F = volumes delivered to the Points of Consumption during Force Majeure The payment required for the FDV shall be calculated by multiplying FDV by the MAV Delivery charge specified in the M4 Rate Schedule as of the last day of the Contract Year. This payment would only apply if the FDV was greater than zero.
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FIRM MINIMUM ANNUAL VOLUME. In each Contract Year, the Customer shall consume or, in any event, pay for the Adjusted Firm Minimum Annual Volume (“AFMAV”) as determined in the formula below. The firm quantity not consumed in any Contract Year (the "Firm Deficiency Volume" or “FDV”) shall be as determined in the formula below. AFMAV = FMAV x [(U - DF) / U]] FDV = AFMAV - (FV - F) Where: FMAV = Firm Minimum Annual Volume (as identified in Schedule 1) U = number of days in the Contract Year DF = number of days of Force Majeure in the Contract Year FV = total firm volume taken in the Contract Year F = volumes delivered to the Points of Consumption during Force Majeure The payment required for the FDV shall be calculated by multiplying FDV by the Monthly Firm Delivery Commodity Charge as of the last day of the Contract Year. This payment would only apply if the FDV was greater than zero.
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FIRM MINIMUM ANNUAL VOLUME. In each Contract Year, the Customer shall consume or, in any event, pay for the Adjusted Firm Minimum Annual Volume (“AFMAV”) as determined in the formula below. The firm quantity not consumed in any Contract Year (the "Firm Deficiency Volume" or “FDV”) shall be as determined in the formula below. Where: AFMAV = FMAV x [(U - DF) / U]] FDV = AFMAV - (FV - F) And: DF = number of days of Force Majeure in the Contract Year The payment required for the FDV shall be calculated by multiplying FDV by the Monthly Firm Delivery Commodity Charge as of the last day of the Contract Year. This payment would only apply if the FDV was greater than zero.
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FIRM MINIMUM ANNUAL VOLUME. In each Contract Year, the Customer shall consume or, in any event, pay for the Adjusted Firm Minimum Annual Volume (“AFMAV”) as determined in the formula below. The firm quantity not consumed in any Contract Year (the "Firm Deficiency Volume" or “FDV”) shall be as determined in the formula below. Where: AFMAV = FMAV x [(U - DF) / U]] FDV = AFMAV - (FV - F) And: The payment required for the FDV shall be calculated by multiplying FDV by the Monthly Firm Delivery Commodity Charge as of the last day of the Contract Year. This payment would only apply if the FDV was greater than zero.
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Related to FIRM MINIMUM ANNUAL VOLUME

  • Minimum Annual Royalty Beginning in the calendar year after the first occurrence of SALEs, and in each succeeding calendar year thereafter, LICENSEE will pay to REGENTS a minimum annual royalty of [Written amount] U.S. Dollars ($ Number) for the life of this AGREEMENT. This minimum annual royalty will be paid to REGENTS by February 28 of each year and will be credited against the earned royalty due and owing for the calendar year in which the minimum payment is made.

  • Minimum Annual Royalties Company shall pay to JHU minimum annual royalties as set forth in Exhibit A. These minimum annual royalties shall be due, without invoice from JHU, within thirty (30) days of each anniversary of the EFFECTIVE DATE beginning with the first anniversary. Running royalties and sublicense consideration accrued under Paragraphs 3.3 and 3.4, respectively, and paid to JHU during the one year period preceding an anniversary of the EFFECTIVE DATE shall be credited against the minimum annual royalties due on that anniversary date.

  • Contract Year A twelve (12) month period during the term of the Agreement commencing on the Effective Date and each anniversary thereof.

  • MINIMUM ORDER QUANTITY The State makes no commitment to purchase any minimum or maximum quantity, or dollar volume of products from the selected suppliers. Utilization of this agreement will be on an as needed basis by State Agencies and/or Cooperative Participants, Cities, Counties, Schools K-12, Colleges and Universities. The State will award to multiple suppliers; however, the State reserves the right to purchase like and similar products from other suppliers as necessary to meet operational requirements.

  • Contract Quantity The Contract Quantity during each Contract Year is the amount set forth in the applicable Contract Year in Section D of the Cover Sheet (“Delivery Term Contract Quantity Schedule”), which amount is inclusive of outages.