Volume. i. If Company timely delivers a Purchase Order, the same shall be deemed accepted by Supplier as to the volume set forth therein, up to an aggregate volume of Material equal to the applicable prorated monthly Contract Volume plus the Below 80% Volume Reserve (as defined below) that Company is entitled to purchase as of such month plus the Deferred Contract Volume Reserve (as defined below) that Company is entitled to purchase as of such month, the aggregate of which shall not exceed 120% of the prorated monthly Contract Volume (the “Maximum Aggregate Contract Volume”). If Company issues a Purchase Order for quantities of Material in excess of such Maximum Aggregate Contract Volume for a particular month, Supplier will notify Company within five (5) Business Days of receipt of *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. the Purchase Order as to whether Supplier accepts or rejects the portion of the Purchase Order relating to such excess quantity for the applicable month; provided, that it is understood that the Discount (as defined below) shall not be applicable to the price of any Material acquired over one hundred percent (100%) of the Contract Volume in any given month. i. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material not less than eighty percent (80%) but less than one hundred percent (100%) of the scheduled Contract Volume, then the difference between one hundred percent (100%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month that is not below eighty percent (80%) of the Contract Volume will be deferred and accrued for future purchase by Company (the “Deferred Contract Volumes,” and the aggregate of such Deferred Contract Volumes that remain unpurchased by the Company as of any point in time, collectively the “Deferred Contract Volume Reserve”). ii. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material less than eighty percent (80%) of the scheduled Contract Volume, for any reason other than a Force Majeure Event (as defined in Section 3.n), then: (1) Subject to clauses (2) and (3) below, the difference between eighty percent (80%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month will be deferred and accrued for future purchase by Company (the “Below 80% Volumes,” and the aggregate of such Below 80% Volumes that remain unpurchased by the Company as of any point in time, collectively the “Below 80% Volume Reserve”). (2) The Below 80% Volumes from any particular month shall remain in the Below 80% Volume Reserve and available for purchase by the Company for the remainder of the calendar year in which such month occurs (the “Below 80% Occurrence Year”) and until the end of the following calendar year. (3) At the end of each calendar year Company will forfeit its Contract Volume Option to purchase Below 80% Volumes from the calendar year prior to such calendar year that remain unpurchased by Company and such forfeited volumes shall be removed from the Below 80% Volume Reserve but shall reduce Company’s option to purchase *** tons of Material *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. on a ton for ton basis. For the avoidance of doubt, the process contemplated by this clause (3) shall not begin until the end of the second calendar following the Commencement Option Date. (4) With respect to any Below 80% Volumes forfeited pursuant to clause (3) above (unless such Below 80% Volumes were initially deferred pursuant to clause (1) above in a month in which 50% or less of the frac fleet of Company and its affiliates were operating, in which case this clause (4) does not apply), Company shall pay to Supplier an amount equal to $*** per ton for 33% of such forfeited Below 80% Volumes. Such payment shall be due from Company within thirty (30) days after the Material is forfeited. (5) Company’s discount for products purchased in such calendar month, if any, will be reduced by fifty percent (50%) of the then current Discount rate per ton purchased. (6) The Deferred Contract Volume for such month shall be 20% of the scheduled Contract Volume for such month, which amount shall be added to the Deferred Contract Volume Reserve. iii. If in any month, Company elects to exercise a Contract Volume Option for at least 80% of the scheduled Contract Volume for such month, then volume of Material purchased in excess of such 80% threshold shall be allocated first against the then current Below 80% Volume Reserve (on a first-in/first-out basis from the Below 80% Volume Reserve), which shall be reduced by the amount of such excess over the 80% threshold. For the sake of clarity, the Discount shall apply to all such purchases, regardless of whether the volume is counted against the Below 80% Volume Reserve, the Deferred Contract Volume Reserve or otherwise except as specifically set forth in Section 1.b.iii(5) and the last sentence of Section 1.b.i. Company will have the right to purchase volumes in excess of the scheduled Contract Volume for any given month by drawing against the accrued Below 80% Volume Reserve, if any, provided that in a given month Company will not have the right to draw more than the Maximum Aggregate Contract Volume and the Discount shall not be applicable to any tons purchased exceeding one hundred percent (100%) of the prorated Contract Volume as set for in Section 1.b.i for such month. iv. Supplier acknowledges and agrees that Company is relying on the Supplier to provide the scheduled Contract Volumes on a monthly basis. In the event that Company timely delivers a Purchase Order up to the applicable Maximum Aggregate Contract Volume for any given month, and Supplier is unable to provide the volumes requested in Company’s Purchase Order for any reason other than a *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. Force Majeure Event, then Company’s discount for Material purchased in that calendar month will be increased by fifty percent (50%) of the then current discount rate per ton purchased. For the avoidance of doubt, any volume of Materials ordered by Company, but not delivered by Supplier, shall not be considered part of the Deferred Contract Volume Reserve or the Below 80% Volume Reserve, or counted against the *** tons of Material to which Company is entitled to purchase under this Agreement. v. The Parties will review the Contract Volume Schedule on a calendar year basis and make such revisions that are mutually agreed to by the Parties. In the event that the Parties are unable to agree upon any revisions to the Contract Volume Schedule, then the Contract Volume Schedule in effect for the prior calendar year shall continue to be in effect for the subsequent calendar year.
Appears in 1 contract
Sources: Purchase Option Agreement (Emerge Energy Services LP)
Volume. i. If Company timely delivers 3.3.1 The volume of Products to be purchased by Buyer and to be supplied by Seller during the Term of this Agreement shall be in accordance with Exhibit B (the total polysilicon supply volume under this Agreement is 1,920 tonnes). Seller may make an adjustment (increase or decrease) to the monthly supply volume set forth in Exhibit B by no more than *** and such adjustment will not be construed as a Purchase Orderbreach as a result of delayed delivery or short delivery. Notwithstanding the foregoing, the same supply volume of any given month shall not be deemed accepted by Supplier as to less than *** of the volume set forth thereinin Exhibit B, and Seller shall, within *** commencing from the first day of the following month, make up to for the short supply. The Price of the Product so supplied shall be the Price for *** CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION. the month when such make-up delivery is made. If the monthly supply volume exceeds the volume set forth in Exhibit C, then the exceeding portion shall be deducted from the supply volume for the following month and the Price for the exceeding portion shall be the same as Price in the following month. In addition, the Parties agree that upon the execution of this Agreement, neither Party may require an aggregate adjustment of the supply volume on any grounds in the absence of Material written agreement by the Parties. The volume actually supplied in a given year shall equal to the applicable prorated monthly Contract Volume plus the Below 80% Volume Reserve (as defined below) volume agreed for that Company is entitled to purchase as of such month plus the Deferred Contract Volume Reserve (as defined below) that Company is entitled to purchase as of such month, the aggregate of which shall not exceed 120% of the prorated monthly Contract Volume (the “Maximum Aggregate Contract Volume”). If Company issues a Purchase Order for quantities of Material in excess of such Maximum Aggregate Contract Volume for a particular month, Supplier will notify Company within five (5) Business Days of receipt of *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. the Purchase Order as to whether Supplier accepts or rejects the portion of the Purchase Order relating to such excess quantity for the applicable month; provided, that it is understood year herein.
3.3.2 Both Parties agree that the Discount (as defined below) shall not be applicable to the price of any Material acquired over one hundred percent (100%) of the Contract Volume in any given month.
i. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material not less than eighty percent (80%) but less than one hundred percent (100%) of the scheduled Contract Volume, then the difference between one hundred percent (100%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month that is not below eighty percent (80%) of the Contract Volume following method will be deferred and accrued for future purchase by Company (adopted to adjust the “Deferred Contract Volumes,” and the aggregate of such Deferred Contract Volumes that remain unpurchased by the Company as of any point in time, collectively the “Deferred Contract Volume Reserve”).
ii. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material less than eighty percent (80%) of the scheduled Contract Volume, for any reason other than a Force Majeure Event (as defined in Section 3.n), thenmonthly supply volume:
(1a) Subject If Seller intends to clauses (2) and (3) below, decrease the difference between eighty percent (80%) monthly supply volume of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month will be deferred and accrued for future purchase by Company (the “Below 80% Volumes,” and the aggregate of such Below 80% Volumes that remain unpurchased by the Company as of any point Products set out in timeExhibit B, collectively the “Below 80% Volume Reserve”).
(2) The Below 80% Volumes from any particular month shall remain in the Below 80% Volume Reserve and available for purchase by the Company for the remainder of the calendar year in which such month occurs (the “Below 80% Occurrence Year”) and until the end of the following calendar year.
(3) At the end of each calendar year Company will forfeit its Contract Volume Option to purchase Below 80% Volumes from the calendar year prior to such calendar year that remain unpurchased by Company and such forfeited volumes shall be removed from the Below 80% Volume Reserve but shall reduce Company’s option to purchase *** tons of Material *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. on a ton for ton basis. For the avoidance of doubt, the process contemplated by this clause (3) shall not begin until the end of the second calendar following the Commencement Option Date.
(4) With respect to any Below 80% Volumes forfeited pursuant to clause (3) above (unless such Below 80% Volumes were initially deferred pursuant to clause (1) above in a month in which 50% or less of the frac fleet of Company and its affiliates were operating, in which case this clause (4) does not apply), Company shall pay to Supplier an amount equal to $*** per ton for 33% of such forfeited Below 80% Volumes. Such payment shall be due from Company within thirty (30) days after the Material is forfeited.
(5) Company’s discount for products purchased in such calendar month, if any, will be reduced by fifty percent (50%) of the then current Discount rate per ton purchased.
(6) The Deferred Contract Volume for such month shall be 20% of the scheduled Contract Volume for such month, which amount shall be added to the Deferred Contract Volume Reserve.
iii. If in any month, Company elects to exercise a Contract Volume Option for at least 80% of the scheduled Contract Volume for such month, then volume of Material purchased in excess of such 80% threshold shall be allocated first against the then current Below 80% Volume Reserve (on a first-in/first-out basis from the Below 80% Volume Reserve), which shall be reduced by the amount of such excess over the 80% threshold. For the sake of clarity, the Discount shall apply to all such purchases, regardless of whether the volume is counted against the Below 80% Volume Reserve, the Deferred Contract Volume Reserve or otherwise except as specifically set forth in Section 1.b.iii(5) and the last sentence of Section 1.b.i. Company will have the right to purchase volumes in excess of the scheduled Contract Volume for any given month by drawing against the accrued Below 80% Volume Reserve, if any, provided that in a given month Company will not have the right to draw more than the Maximum Aggregate Contract Volume and the Discount shall not be applicable to any tons purchased exceeding one hundred percent (100%) of the prorated Contract Volume as set for in Section 1.b.i for such month.
iv. Supplier acknowledges and agrees that Company is relying on the Supplier to provide the scheduled Contract Volumes on a monthly basis. In the event that Company timely delivers a Purchase Order up to the applicable Maximum Aggregate Contract Volume for any given month, and Supplier is unable to provide the volumes requested in Company’s Purchase Order for any reason other than a *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. Force Majeure Event, then Company’s discount for Material purchased in that calendar month will be increased by fifty percent (50%) of the then current discount rate per ton purchased. For the avoidance of doubt, any volume of Materials ordered by Company, but not delivered by Supplier, shall not be considered part of the Deferred Contract Volume Reserve or the Below 80% Volume Reserve, or counted against it should notify Buyer before the *** tons day of Material to which Company is entitled to purchase under this Agreement.
v. The Parties will review the Contract Volume Schedule on a calendar year basis and make such revisions that are mutually agreed to by the Parties. In the event that the Parties are unable to agree upon any revisions to the Contract Volume Schedule, then the Contract Volume Schedule in effect particular month its proposed supply volume for the prior calendar year following month by delivering a written Notice on Adjustment to Monthly Supply Volume of the Products, which shall continue to be in effect set forth the amended supply volume and Payment for the subsequent calendar year.Products. However, if the supply volume is decreased by more than *** of the original supply volume, Seller shall still be deemed as breaching this Agreement and shall be liable for a penalty in connection with the exceeding portion according to Article
Appears in 1 contract
Sources: Solar Grade Polysilicon Supply Agreement (GCL Silicon Technology Holdings Inc.)
Volume. i. If Company timely delivers a Purchase OrderThe Cans will be supplied to the filling locations located within the Territory set forth for each Bottler in Exhibit A (and at any additional or substitute facilities hereafter acquired or otherwise designated by CCB on behalf of any of the Bottlers and agreed to in writing by Rexam which agreement by Rexam will not be unreasonably withheld) (collectively, the same “Filling Locations”). During the Term of this Amended and Restated Agreement, each of the Bottlers shall be deemed accepted by Supplier as to the volume set forth therein, up to an aggregate volume of Material equal to the applicable prorated monthly Contract Volume plus the Below 80% Volume Reserve (as defined below) that Company is entitled to purchase as of such month plus the Deferred Contract Volume Reserve (as defined below) that Company is entitled to purchase as of such month, the aggregate of which shall not exceed 120100% of the prorated monthly Contract Volume (Filling Locations’ respective individual requirements of Cans from Rexam in the “Maximum Aggregate Contract Volume”)sizes set forth in Exhibit B, except that each Bottler shall be allowed a commercially reasonable time to exhaust any existing supply of non-Rexam supplied Cans kept in inventory during the ordinary course of business as of the beginning of the Term hereof. If Company issues requested by Rexam, and not more than once annually, CCB shall provide a Purchase Order for quantities certificate from an officer of Material in excess of such Maximum Aggregate Contract Volume for a particular month, Supplier will notify Company within five (5) Business Days of receipt of *** Certain information in this document CCB attesting that each Bottler has been omitted and filed separately complied with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. the Purchase Order as to whether Supplier accepts or rejects the portion of the Purchase Order relating to such excess quantity its annual purchase requirements for the applicable month; provided, that it is understood that the Discount (Filling Locations as defined below) shall not be applicable to the price of any Material acquired over one hundred percent (100%) of the Contract Volume in any given month.
i. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material not less than eighty percent (80%) but less than one hundred percent (100%) of the scheduled Contract Volume, then the difference between one hundred percent (100%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month that is not below eighty percent (80%) of the Contract Volume will be deferred and accrued for future purchase by Company (the “Deferred Contract Volumes,” and the aggregate of such Deferred Contract Volumes that remain unpurchased by the Company as of any point in time, collectively the “Deferred Contract Volume Reserve”).
iiset forth herein. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material less than eighty percent (80%) of the scheduled Contract VolumeIf, for any reason (other than a an event of Force Majeure Event (as defined covered in Section 3.n23, or a metal supply issue covered in Section 14, below) Rexam is unable to supply bodies and/or ends, as the case may be, of satisfactory quality, any affected Bottler(s) shall be relieved of any obligation to buy from Rexam the unsatisfactory item under the terms of this Amended and Restated Agreement until Rexam corrects the problem on an ongoing basis to the reasonable satisfaction of the affected Bottler(s). In such event and only for the duration of time that such quality problem exists: (a) Rexam shall provide the relevant Filling Location(s) with fully conforming bodies and/or ends from an alternate Rexam plant and Rexam shall absorb any excess freight involved in shipping from the alternate plant; (b) if Rexam is unable to procure conforming bodies and/or ends from a Rexam plant, then:
the affected Bottler(s) may procure conforming bodies and/or ends from any other source; (1c) Subject to clauses (2) and (3) below, Rexam shall pay any affected Bottler the difference between eighty percent (80%) of the scheduled Contract Volume purchase price to such Bottler for the applicable month such conforming bodies and/or ends and the actual volume of Material purchase price such Bottler otherwise would have incurred hereunder; and (d) all bodies and/or ends purchased by Company from Supplier for that month will be deferred and accrued for future purchase by Company (the “Below 80% Volumes,” and the aggregate of such Below 80% Volumes that remain unpurchased by the Company as of any point in time, collectively the “Below 80% Volume Reserve”).
(2) The Below 80% Volumes affected Bottlers from any particular month shall remain in the Below 80% Volume Reserve and available for purchase by the Company for the remainder of the calendar year in which such month occurs (the “Below 80% Occurrence Year”) and until the end of the following calendar year.
(3) At the end of each calendar year Company will forfeit its Contract Volume Option alternate source pursuant to purchase Below 80% Volumes from the calendar year prior to such calendar year that remain unpurchased by Company and such forfeited volumes this paragraph shall be removed from the Below 80% Volume Reserve but shall reduce Company’s option to purchase *** tons of Material *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. on a ton for ton basis. For the avoidance of doubt, the process contemplated by this clause (3) shall not begin until the end of the second calendar following the Commencement Option Date.
(4) With respect to any Below 80% Volumes forfeited pursuant to clause (3) above (unless such Below 80% Volumes were initially deferred pursuant to clause (1) above in a month in which 50% or less of the frac fleet of Company and its affiliates were operating, in which case this clause (4) does not apply), Company shall pay to Supplier an amount equal to $*** per ton for 33% of such forfeited Below 80% Volumes. Such payment shall be due from Company within thirty (30) days after the Material is forfeited.
(5) Company’s discount for products purchased in such calendar month, if any, will be reduced by fifty percent (50%) of the then current Discount rate per ton purchased.
(6) The Deferred Contract Volume for such month shall be 20% of the scheduled Contract Volume for such month, which amount shall be added to the Deferred Contract Volume Reserve.
iii. If in any month, Company elects to exercise a Contract Volume Option for at least 80% of the scheduled Contract Volume for such month, then volume of Material purchased in excess of such 80% threshold shall be allocated first credited against the then current Below 80% Volume Reserve (on a first-in/first-out basis from the Below 80% Volume Reserve), which shall be reduced by the amount of such excess over the 80% threshold. For the sake of clarity, the Discount shall apply to all such purchases, regardless of whether the volume is counted against the Below 80% Volume Reserve, the Deferred Contract Volume Reserve or otherwise except as specifically set forth in Section 1.b.iii(5) and the last sentence of Section 1.b.i. Company will have the right to relevant Bottler’s purchase volumes in excess of the scheduled Contract Volume for any given month by drawing against the accrued Below 80% Volume Reserve, if any, provided that in a given month Company will not have the right to draw more than the Maximum Aggregate Contract Volume and the Discount shall not be applicable to any tons purchased exceeding one hundred percent (100%) of the prorated Contract Volume as set for in Section 1.b.i for such monthobligations hereunder.
iv. Supplier acknowledges and agrees that Company is relying on the Supplier to provide the scheduled Contract Volumes on a monthly basis. In the event that Company timely delivers a Purchase Order up to the applicable Maximum Aggregate Contract Volume for any given month, and Supplier is unable to provide the volumes requested in Company’s Purchase Order for any reason other than a *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. Force Majeure Event, then Company’s discount for Material purchased in that calendar month will be increased by fifty percent (50%) of the then current discount rate per ton purchased. For the avoidance of doubt, any volume of Materials ordered by Company, but not delivered by Supplier, shall not be considered part of the Deferred Contract Volume Reserve or the Below 80% Volume Reserve, or counted against the *** tons of Material to which Company is entitled to purchase under this Agreement.
v. The Parties will review the Contract Volume Schedule on a calendar year basis and make such revisions that are mutually agreed to by the Parties. In the event that the Parties are unable to agree upon any revisions to the Contract Volume Schedule, then the Contract Volume Schedule in effect for the prior calendar year shall continue to be in effect for the subsequent calendar year.
Appears in 1 contract
Sources: Can Supply Agreement (Coca Cola Bottling Co Consolidated /De/)
Volume. i. If Company timely delivers 3.3.1 The volume of Products to be purchased by Buyer and to be supplied by Seller during the Term of this Agreement shall be in accordance with Exhibit C. Seller may make an adjustment (increase or decrease) to the monthly supply volume set forth in Exhibit C by no more than *** and such adjustment will not be construed as a Purchase Orderbreach as a result of delayed delivery or short delivery. Notwithstanding the foregoing, the same supply volume of any given month shall not be deemed accepted by Supplier as to less than *** of the volume set forth thereinin Exhibit C, and Seller shall, within *** commencing from the first day of the following month, make up to for the short supply. The Price of the Product so supplied shall be the Price for the month when such make up delivery is made. If the monthly supply volume exceeds the volume set forth in Exhibit C, then the exceeding portion shall be deducted from the supply volume for the following month and the Price for the exceeding portion shall be the same as Price in the following month. In addition, the Parties agree that upon the execution of this Agreement, neither Party may require an aggregate adjustment of the supply volume on any grounds in the absence of Material written agreement by the Parties. The volume actually supplied in a given year shall equal to the applicable prorated volume agreed for that year herein.
3.3.2 Both Parties agree that the following method will be adopted to adjust the monthly Contract Volume plus supply volume:
(a) If Seller intends to decrease the Below 80% Volume Reserve (as defined below) that Company is entitled to purchase as of such month plus the Deferred Contract Volume Reserve (as defined below) that Company is entitled to purchase as of such month, the aggregate of which shall not exceed 120% monthly supply volume of the prorated monthly Contract Volume (the “Maximum Aggregate Contract Volume”). If Company issues a Purchase Order for quantities of Material Products set out in excess of such Maximum Aggregate Contract Volume for a particular monthExhibit C, Supplier will it should notify Company within five (5) Business Days of receipt of Buyer *** Certain information in advance its proposed supply volume for the given installment as well as the adjusted monthly supply volume by delivering a written Notice on Adjustment to Monthly Supply Volume of the Products, which shall set forth the amended supply volume and Payment for the Products. However, if the supply volume is decreased by more than *** of the original supply volume, Seller shall still be deemed as breaching this Agreement and shall be liable for a penalty in connection with the exceeding portion according to Clause 8.2. Buyer shall unconditionally accept the monthly supply volume of the Products if it is adjusted by Seller pursuant to Clause 3.3.1 in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. the Purchase Order as to whether Supplier accepts or rejects the portion of the Purchase Order relating to such excess quantity for the applicable month; provided, that it is understood that the Discount (as defined below) shall not be applicable to the price of any Material acquired over one hundred percent (100%) of the Contract Volume in any given month.
i. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material not less than eighty percent (80%) but less than one hundred percent (100%) of the scheduled Contract Volume, then the difference between one hundred percent (100%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month that is not below eighty percent (80%) of the Contract Volume will be deferred and accrued for future purchase by Company (the “Deferred Contract Volumes,” and the aggregate of such Deferred Contract Volumes that remain unpurchased by the Company as of any point in time, collectively the “Deferred Contract Volume Reserve”).
ii. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material less than eighty percent (80%) of the scheduled Contract Volume, for any reason other than a Force Majeure Event (as defined in Section 3.n), then:
(1) Subject to clauses (2) and (3) below, the difference between eighty percent (80%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month will be deferred and accrued for future purchase by Company (the “Below 80% Volumes,” and the aggregate of such Below 80% Volumes that remain unpurchased by the Company as of any point in time, collectively the “Below 80% Volume Reserve”)Agreement.
(2b) The Below 80% Volumes from any particular month shall remain in If Seller intends to increase the Below 80% Volume Reserve and available for purchase by the Company for the remainder monthly supply volume of the calendar year Products set out in which such month occurs (the “Below 80% Occurrence Year”) and until the end of the following calendar year.
(3) At the end of each calendar year Company will forfeit its Contract Volume Option to purchase Below 80% Volumes from the calendar year prior to such calendar year that remain unpurchased by Company and such forfeited volumes shall be removed from the Below 80% Volume Reserve but shall reduce Company’s option to purchase Exhibit C, it should notify Buyer *** tons in advance its proposed supply volume for the given installment as well as the adjusted monthly supply volume by delivering a written Notice on Adjustment to Monthly Supply Volume of Material the Products, which shall set forth the amended supply volume and Payment for the Products. However, if the supply volume is increased by more than *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. on a ton for ton basis. For the avoidance of doubt, the process contemplated by this clause (3) shall not begin until the end of the second calendar following original supply volume, Buyer may in its discretion choose to reject or accept the Commencement Option Date.
(4) With respect to any Below 80% Volumes forfeited pursuant to clause (3) above (unless such Below 80% Volumes were initially deferred pursuant to clause (1) above in a month in which 50% or less of exceeding portion. If Buyer keeps the frac fleet of Company and its affiliates were operating, in which case this clause (4) does not apply), Company exceeding portion it shall pay to Supplier an amount equal to $*** per ton for 33% of such forfeited Below 80% Volumes. Such payment shall be due from Company within thirty (30) days after the Material is forfeited.
(5) Company’s discount Products at the Price for products purchased in such calendar the following month, if any, will be reduced by fifty percent (50%) of the then current Discount rate per ton purchased.
(6) The Deferred Contract Volume for such month shall be 20% of the scheduled Contract Volume for such month, which amount shall be added to the Deferred Contract Volume Reserve.
iii. If in any month, Company elects to exercise a Contract Volume Option for at least 80% of the scheduled Contract Volume for such month, then volume of Material purchased in excess of such 80% threshold shall be allocated first against the then current Below 80% Volume Reserve (on a first-in/first-out basis from the Below 80% Volume Reserve), which shall be reduced by the amount of such excess over the 80% threshold. For the sake of clarity, the Discount shall apply to all such purchases, regardless of whether the volume is counted against the Below 80% Volume Reserve, the Deferred Contract Volume Reserve or otherwise except as specifically set forth in Section 1.b.iii(5) and the last sentence of Section 1.b.i. Company will have the right to purchase volumes in excess of the scheduled Contract Volume for any given month by drawing against the accrued Below 80% Volume Reserve, if any, provided that in a the Buyer may pay for the Product at the Price for the given month Company will not have if it so agrees. Buyer shall unconditionally accept the right to draw more than monthly Product supply volume if Seller’s adjustment is in compliance with the Maximum Aggregate Contract Volume and provisions herein. If Buyer has difficulty in making the Discount shall not be applicable to any tons purchased exceeding one hundred percent (100%) of Payment for the prorated Contract Volume as set for in Section 1.b.i for such month.
iv. Supplier acknowledges and agrees that Company is relying on the Supplier to provide the scheduled Contract Volumes on a monthly basis. In the event that Company timely delivers a Purchase Order up to the applicable Maximum Aggregate Contract Volume for any given monthincreased supply, and Supplier is unable to provide the volumes requested in Company’s Purchase Order for any reason other than Seller should give Buyer a *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. Force Majeure Eventgrace period, then Company’s discount for Material purchased in that calendar month during which Buyer will be excused from default liability unless Buyer fails to make the full payment for the original supply volume, provided that Seller is entitled to refuse to deliver the Products before it receives the full Payment for the increased by fifty percent portion of Products.
(50%c) Any short supply as a result of an adjustment that is not made according to Article 3.3.2 (a) or Article 3.3.2 (b) (including the then current discount rate per ton purchased. For the avoidance of doubt, any volume of Materials ordered by Company, but case where Seller did not delivered by Supplier, shall give early notice) will not be considered part of the Deferred Contract Volume Reserve or the Below 80% Volume Reserve, or counted against entitled to the *** tons buff provided in Article 3.3.1, and Seller shall be liable for a penalty relating to such shortage pursuant to Article 8.2. If the delivered volume after monthly adjustment is less than *** of Material the original supply volume set forth in Exhibit C, Seller should be liable for its breach pursuant to which Company is entitled to purchase under this AgreementArticle 8.2. *** CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.
v. The Parties will review the Contract Volume Schedule on a calendar year basis and make such revisions that are mutually agreed to by the Parties. In the event that the Parties are unable to agree upon any revisions to the Contract Volume Schedule, then the Contract Volume Schedule in effect for the prior calendar year shall continue to be in effect for the subsequent calendar year.
Appears in 1 contract
Sources: Solar Grade Polysilicon and Wafer Supply Agreement (GCL Silicon Technology Holdings Inc.)
Volume. i. If Company timely delivers 3.3.1 The volume of Products to be purchased by Buyer and to be supplied by Seller during the Term of this Agreement shall be in accordance with Exhibit C. Seller may make an adjustment (increase or decrease) to the monthly supply volume set forth in Exhibit C by no more than *** and such adjustment will not be construed as a Purchase Orderbreach as a result of delayed delivery or short delivery. Notwithstanding the foregoing, the same supply volume of any given month shall not be deemed accepted by Supplier as to less than *** of the volume set forth thereinin Exhibit C, and Seller shall, within *** commencing from the first day of the following month, make up to for the short supply. The Price of the Product so supplied shall be the Price for the month when such make up delivery is made. If the monthly supply volume exceeds the volume set forth in Exhibit C, then the exceeding portion shall be deducted from the supply volume for the following month and the Price for the exceeding portion shall be the same as Price in the following month. In addition, the Parties agree that upon the execution of this Agreement, neither Party may require an aggregate adjustment of the supply volume on any grounds in the absence of Material written agreement by the Parties. The volume actually supplied in a given year shall equal to the applicable prorated volume agreed for that year herein.
3.3.2 Both Parties agree that the following method will be adopted to adjust the monthly Contract Volume plus supply volume:
(a) If Seller intends to decrease the Below 80% Volume Reserve (as defined below) that Company is entitled to purchase as of such month plus the Deferred Contract Volume Reserve (as defined below) that Company is entitled to purchase as of such month, the aggregate of which shall not exceed 120% monthly supply volume of the prorated monthly Contract Volume (the “Maximum Aggregate Contract Volume”). If Company issues a Purchase Order for quantities of Material Products set out in excess of such Maximum Aggregate Contract Volume for a particular monthExhibit C, Supplier will it should notify Company within five (5) Business Days of receipt of Buyer *** Certain information in advance its proposed supply volume for the given installment as well as the adjusted monthly supply volume by delivering a written Notice on Adjustment to Monthly Supply Volume of the Products, which shall set forth the amended supply volume and Payment for the Products. However, if the supply volume is decreased by more than *** of the original supply volume, Seller shall still be deemed as breaching this Agreement and shall be liable for a penalty in connection with the exceeding portion according to Clause 8.2. Buyer shall unconditionally accept the monthly supply volume of the Products if it is adjusted by Seller pursuant to Clause 3.3.1 in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. the Purchase Order as to whether Supplier accepts or rejects the portion of the Purchase Order relating to such excess quantity for the applicable month; provided, that it is understood that the Discount (as defined below) shall not be applicable to the price of any Material acquired over one hundred percent (100%) of the Contract Volume in any given month.
i. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material not less than eighty percent (80%) but less than one hundred percent (100%) of the scheduled Contract Volume, then the difference between one hundred percent (100%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month that is not below eighty percent (80%) of the Contract Volume will be deferred and accrued for future purchase by Company (the “Deferred Contract Volumes,” and the aggregate of such Deferred Contract Volumes that remain unpurchased by the Company as of any point in time, collectively the “Deferred Contract Volume Reserve”).
ii. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material less than eighty percent (80%) of the scheduled Contract Volume, for any reason other than a Force Majeure Event (as defined in Section 3.n), then:
(1) Subject to clauses (2) and (3) below, the difference between eighty percent (80%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month will be deferred and accrued for future purchase by Company (the “Below 80% Volumes,” and the aggregate of such Below 80% Volumes that remain unpurchased by the Company as of any point in time, collectively the “Below 80% Volume Reserve”)Agreement.
(2b) The Below 80% Volumes from any particular month shall remain in If Seller intends to increase the Below 80% Volume Reserve and available for purchase by the Company for the remainder monthly supply volume of the calendar year Products set out in which such month occurs (the “Below 80% Occurrence Year”) and until the end of the following calendar year.
(3) At the end of each calendar year Company will forfeit its Contract Volume Option to purchase Below 80% Volumes from the calendar year prior to such calendar year that remain unpurchased by Company and such forfeited volumes shall be removed from the Below 80% Volume Reserve but shall reduce Company’s option to purchase Exhibit C, it should notify Buyer *** tons in advance its proposed supply volume for the given installment as well as the adjusted monthly supply volume by delivering a written Notice on Adjustment to Monthly Supply Volume of Material the Products, which shall set forth the amended supply volume and Payment for the Products. However, if the supply volume is increased by more than *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. on a ton for ton basis. For the avoidance of doubt, the process contemplated by this clause (3) shall not begin until the end of the second calendar following original supply volume, Buyer may in its discretion choose to reject or accept the Commencement Option Date.
(4) With respect to any Below 80% Volumes forfeited pursuant to clause (3) above (unless such Below 80% Volumes were initially deferred pursuant to clause (1) above in a month in which 50% or less of exceeding portion. If Buyer keeps the frac fleet of Company and its affiliates were operating, in which case this clause (4) does not apply), Company exceeding portion it shall pay to Supplier an amount equal to $*** per ton for 33% of such forfeited Below 80% Volumes. Such payment shall be due from Company within thirty (30) days after the Material is forfeited.
(5) Company’s discount Products at the Price for products purchased in such calendar the following month, if any, will be reduced by fifty percent (50%) of the then current Discount rate per ton purchased.
(6) The Deferred Contract Volume for such month shall be 20% of the scheduled Contract Volume for such month, which amount shall be added to the Deferred Contract Volume Reserve.
iii. If in any month, Company elects to exercise a Contract Volume Option for at least 80% of the scheduled Contract Volume for such month, then volume of Material purchased in excess of such 80% threshold shall be allocated first against the then current Below 80% Volume Reserve (on a first-in/first-out basis from the Below 80% Volume Reserve), which shall be reduced by the amount of such excess over the 80% threshold. For the sake of clarity, the Discount shall apply to all such purchases, regardless of whether the volume is counted against the Below 80% Volume Reserve, the Deferred Contract Volume Reserve or otherwise except as specifically set forth in Section 1.b.iii(5) and the last sentence of Section 1.b.i. Company will have the right to purchase volumes in excess of the scheduled Contract Volume for any given month by drawing against the accrued Below 80% Volume Reserve, if any, provided that in a the Buyer may pay for the Product at the Price for the given month Company will not have if it so agrees. Buyer shall unconditionally accept the right to draw more than monthly Product supply volume if Seller’s adjustment is in compliance with the Maximum Aggregate Contract Volume and provisions herein. If Buyer has difficulty in making the Discount shall not be applicable to any tons purchased exceeding one hundred percent (100%) of Payment for the prorated Contract Volume as set for in Section 1.b.i for such month.
iv. Supplier acknowledges and agrees that Company is relying on the Supplier to provide the scheduled Contract Volumes on a monthly basis. In the event that Company timely delivers a Purchase Order up to the applicable Maximum Aggregate Contract Volume for any given monthincreased supply, and Supplier is unable to provide the volumes requested in Company’s Purchase Order for any reason other than Seller should give Buyer a *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. Force Majeure Eventgrace period, then Company’s discount for Material purchased in that calendar month during which Buyer will be excused from default liability unless Buyer fails to make the full payment for the original supply volume, provided that Seller is entitled to refuse to deliver the Products before it receives the full Payment for the increased by fifty percent portion of Products.
(50%c) Any short supply as a result of an adjustment that is not made according to Article 3.3.2 (a) or Article 3.3.2
(b) (including the then current discount rate per ton purchased. For the avoidance of doubt, any volume of Materials ordered by Company, but case where Seller did not delivered by Supplier, shall give early notice) will not be considered part of the Deferred Contract Volume Reserve or the Below 80% Volume Reserve, or counted against entitled to the *** tons of Material buff provided in Article 3.3.1, and Seller shall be liable for a penalty relating to which Company is entitled such shortage pursuant to purchase under this AgreementArticle 8.
v. The Parties will review the Contract Volume Schedule on a calendar year basis and make such revisions that are mutually agreed to by the Parties. In the event that the Parties are unable to agree upon any revisions to the Contract Volume Schedule, then the Contract Volume Schedule in effect for the prior calendar year shall continue to be in effect for the subsequent calendar year.
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Volume. i. If Company timely delivers a Purchase Order, 3.3.1 The volume of Products to be purchased by Buyer and to be supplied by Seller during the same Term of this Agreement shall be deemed accepted by Supplier as in accordance with Exhibit B (the total volume of Product to be supplied under this Agreement shall be 510 tonnes). Both Parties may make an adjustment (increase or decrease) according to Clause 3.3.2 to the volume of Products (as stipulated in Exhibit B) to be supplied in the following month by no more than *** and such adjustment will not be construed as a breach concerning delivery or acceptance under this Agreement. Notwithstanding the foregoing, the adjusted volume to be supplied and accepted in any given month shall not be less than *** of the original volumes set forth thereinin Exhibit B hereto, up and both Parties shall, within *** commencing from the first day of the following month, coordinate to an aggregate rebalance the supply volume (so that total volume of Material equal Product actually supplied adheres to the applicable prorated monthly Contract Volume plus the Below 80% Volume Reserve (as defined below) that Company is entitled total volume set forth in Exhibit B). Such adjustment to purchase as of such month plus the Deferred Contract Volume Reserve (as defined below) that Company is entitled to purchase as of such month, the aggregate of which supply volume shall not exceed 120% of the prorated monthly Contract Volume (the “Maximum Aggregate Contract Volume”). If Company issues a Purchase Order for quantities of Material in excess of such Maximum Aggregate Contract Volume for a particular month, Supplier will notify Company within five (5) Business Days of receipt of *** Certain information times in a given year. In addition, the Parties agree that upon the execution of this document has been omitted and filed separately with Agreement, neither Party may require the Securities and Exchange Commission. Confidential treatment has been requested with respect adjustment of the supply volume on any grounds in the absence of written agreement by the Parties.
3.3.2 Both Parties hereby agree to adjust the monthly supply volume according to the omitted portions. the Purchase Order as to whether Supplier accepts or rejects the portion of the Purchase Order relating to such excess quantity for the applicable month; provided, that it is understood that the Discount (as defined below) shall not be applicable to the price of any Material acquired over one hundred percent (100%) of the Contract Volume in any given month.
i. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material not less than eighty percent (80%) but less than one hundred percent (100%) of the scheduled Contract Volume, then the difference between one hundred percent (100%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month that is not below eighty percent (80%) of the Contract Volume will be deferred and accrued for future purchase by Company (the “Deferred Contract Volumes,” and the aggregate of such Deferred Contract Volumes that remain unpurchased by the Company as of any point in time, collectively the “Deferred Contract Volume Reserve”).
ii. If Company elects to exercise a Contract Volume Option for any particular month for a volume of Material less than eighty percent (80%) of the scheduled Contract Volume, for any reason other than a Force Majeure Event (as defined in Section 3.n), thenfollowing procedures:
(1a) Subject to clauses (2) and (3) below, the difference between eighty percent (80%) of the scheduled Contract Volume for the applicable month and the actual volume of Material purchased by Company from Supplier for that month will be deferred and accrued for future purchase by Company (the “Below 80% Volumes,” and the aggregate of such Below 80% Volumes that remain unpurchased by the Company as of any point in time, collectively the “Below 80% Volume Reserve”).
(2) The Below 80% Volumes from any particular month shall remain in the Below 80% Volume Reserve and available for purchase by the Company for the remainder of the calendar year in which such month occurs (the “Below 80% Occurrence Year”) and until the end of the following calendar year.
(3) At the end of each calendar year Company will forfeit its Contract Volume Option to purchase Below 80% Volumes from the calendar year prior to such calendar year that remain unpurchased by Company and such forfeited volumes shall be removed from the Below 80% Volume Reserve but shall reduce Company’s option to purchase *** tons of Material *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. on a ton for ton basis. For the avoidance of doubt, the process contemplated by this clause (3) shall not begin until the end of the second calendar following the Commencement Option Date.
(4) With respect to any Below 80% Volumes forfeited pursuant to clause (3) above (unless such Below 80% Volumes were initially deferred pursuant to clause (1) above in a month in which 50% or less of the frac fleet of Company and its affiliates were operating, in which case this clause (4) does not apply), Company shall pay to Supplier an amount equal to $*** per ton for 33% of such forfeited Below 80% Volumes. Such payment shall be due from Company within thirty (30) days after the Material is forfeited.
(5) Company’s discount for products purchased in such calendar month, if any, will be reduced by fifty percent (50%) of the then current Discount rate per ton purchased.
(6) The Deferred Contract Volume for such month shall be 20% of the scheduled Contract Volume for such month, which amount shall be added to the Deferred Contract Volume Reserve.
iii. If in any month, Company elects to exercise a Contract Volume Option for at least 80% of the scheduled Contract Volume for such month, then volume of Material purchased in excess of such 80% threshold shall be allocated first against the then current Below 80% Volume Reserve (on a first-in/first-out basis from the Below 80% Volume Reserve), which shall be reduced by the amount of such excess over the 80% threshold. For the sake of clarity, the Discount shall apply to all such purchases, regardless of whether the volume is counted against the Below 80% Volume Reserve, the Deferred Contract Volume Reserve or otherwise except as specifically set forth in Section 1.b.iii(5) and the last sentence of Section 1.b.i. Company will have the right to purchase volumes in excess of the scheduled Contract Volume for any given month by drawing against the accrued Below 80% Volume Reserve, if any, provided that in a given month Company will not have the right to draw more than the Maximum Aggregate Contract Volume and the Discount shall not be applicable to any tons purchased exceeding one hundred percent (100%) of the prorated Contract Volume as set for in Section 1.b.i for such month.
iv. Supplier acknowledges and agrees that Company is relying on the Supplier to provide the scheduled Contract Volumes on a monthly basis. In the event that Company timely delivers a Purchase Order up Seller (or Buyer) intends to reduce the applicable Maximum Aggregate Contract Volume monthly Product supply volume as stipulated in Exhibit B for any given month, and Supplier is unable to provide it shall notify the volumes requested in Company’s Purchase Order for any reason other than a *** Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. Force Majeure Event, then Company’s discount for Material purchased in that calendar month will be increased by fifty percent (50%) Party of the then current discount rate per ton purchased. For the avoidance of doubt, any adjusted supply volume of Materials ordered by Company, but not delivered by Supplier, shall not be considered part of the Deferred Contract Volume Reserve or the Below 80% Volume Reserve, or counted against in writing prior to the *** tons of Material to which Company is entitled to purchase under this Agreementthe previous month for that given *** CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.
v. The Parties will review the Contract Volume Schedule on a calendar year basis and make such revisions that are mutually agreed to by the Parties. In the event that the Parties are unable to agree upon any revisions to the Contract Volume Schedule, then the Contract Volume Schedule in effect for the prior calendar year shall continue to be in effect for the subsequent calendar year.
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Sources: Polysilicon Supply Agreement (GCL Silicon Technology Holdings Inc.)