Common use of Minimum Buys Clause in Contracts

Minimum Buys. BIT may be required to purchase certain minimum quantities of materials, wherein such minimum quantities may exceed what is required to meet Client’s forecast. After the Parties discuss such cases and Client agrees to BIT’s purchase by providing a material authorization, Client shall pay for such “minimum-buy excess material” upon termination of this Agreement, if such material is not consumed by BIT during the course of executing its obligations under this Agreement. If Client requests BIT to purchase excess materials for any reason, Client shall pay BIT a carrying cost charge on such material in the amount of [***]% per month of the ending dollar value of the material on a monthly basis.