Common use of Purchase and Sale Commitments Clause in Contracts

Purchase and Sale Commitments. (a) Subject to the terms and conditions of this Agreement, during the period (the "Ramp-up Period") commencing on the Commencement Date (as defined in Section 4) and ending on the later to occur of the last day before the date of Final Acceptance (as defined in the Contract for Supply of Iron Carbide Production Equipment, Processes and Services, dated the date hereof, between Qualitech and Mitsubishi International Corporation, a New York corporation ("Mitsubishi")), or the Sustained Production Date (as defined in Subsection 1(c)), but in no event later than 38 months from the date of this Agreement, Qualitech shall sell to Steel Dynamics, and Steel Dynamics shall purchase from Qualitech, under the terms and conditions set forth in Section 3, 60% of any and all quantities of Product (as defined in Subsection 1(d)) produced by the Iron Carbide Plant. (b) Subject to the terms and conditions of this Agreement, during the Ramp-up Period, Steel Dynamics, together with Mitsubishi and OmniSource Corporation, an Indiana corporation ("OmniSource"), pursuant to the Iron Carbide Off-Take Agreements of even date herewith between Qualitech and Mitsubishi and OmniSource, respectively, shall have the option to purchase pro rata from Qualitech up to 45.5%, 12.1% and 18.2%, respectively (the "Option Quantities"), of any and all Product produced by the Iron Carbide Plant during any period of one calendar month or greater in the Ramp-up Period in which Product is produced during that particular period at an annualized rate of 330,000 Tonnes or more, up to 660,000 Tonnes. Qualitech shall be entitled to use the remaining 24.2% of such production for that particular period for its own consumption or other disposition. Qualitech shall notify Steel Dynamics at * Material has been redacted pursuant to request for Confidential Treatment. (c) Subject to the terms and conditions of this Agreement, including but not limited to Subsections 1(e), 1(f) and 1(g), commencing on the later to occur of the date of Final Acceptance or the date, after Final Acceptance, on which Qualitech has successfully produced Product for a sustained period of 90 days at the average rate of 41,250 Tonnes per month (the "Sustained Production Date"), but in no event later than 38 months from the date of this Agreement, and continuing during the term of this Agreement, Qualitech shall annually sell to Steel Dynamics, and Steel Dynamics shall annually purchase from Qualitech, quantities of Product produced by the Iron Carbide Plant's initial module, under the terms and conditions contemplated by Section 3, in each Product Year (as defined in subsection 1(d)), determined as annualized rate as follows (prorated for any Product Year that is not a full calendar year) ("Steel Dynamics' Allocable Amount"):