definiens: shall mean the periodbeginning on the date of the first acceptance by Distributor of a GeneratorProduct delivered by VFS to Distributor as ready for commercial sale(Distributor shall diligently and in good faith promptly evaluate the of the Generator Product that VFS has delivered toDistributor ) and ending on the last day of the calendar quarter in which thefirst anniversary date of such date occurs, unless such anniversary date is thefirst day of a calendar quarter, in which case the first Agreement Year shallend on the last day of the preceding calendar quarter, and each successivetwelve ( 12)-month period thereafter . On or before the beginning of the lastcalendar quarter of the third Agreement Year and each Agreement Year thereafter, VFS and Distributor shall conduct good faith negotiations regarding the InitialProducts Minimum for the next Agreement Year . In the event that one or more newproducts have been added to Schedule A as contemplated by Section I, Paragraph1.6(a ), a separate minimum purchase requirement shall be agreed for each Productthat is a New Field Product ( ) . Notwithstanding theforegoing, the minimum purchase requirements shall be reduced for each AgreementYear to the extent that ( i ) VFS shall fail to deliver Products, subject tobinding purchase orders with a projected shipment date during such AgreementYear, within thirty ( 30 ) days after the projected shipment date but, in anyevent, during such Agreement Year, and/or ( ii ) VFS has been advised byDistributor in writing and in timely manner that Products delivered during suchAgreement Year do not conform to the requirements of Section I, Paragraph 4(which writing shall specify in reasonable detail how the Products do notconform to the requirements of Section I, Paragraph 4 ) and, if it is determinedthat such Products do not conform to the requirements of Section I, Paragraph 4,replacements conforming to the requirements of Section I, Paragraph 4 have notbeen delivered during such Agreement Year