Common use of ACCEPTANCE; DELIVERY Clause in Contracts

ACCEPTANCE; DELIVERY. (a) Supplier shall not refuse to accept, on the basis of the quantity of Items involved, Authorized Demand Signals under Section 2.1.5.1 that are within current manufacturing capacities, production volumes, and operating levels or are within Capacity Projections or flexibility levels included in the Supplier Performance Plan. Supplier shall also advise Applied (upon request) regarding additional volumes of Items that are within increases in such capacities, volumes and levels, beyond the Capacity Projections and flexibility levels under the Supplier Performance Plan, that Supplier can achieve through use of commercially reasonable efforts. (b) If week to week variations in the quantities of Items deliverable under Authorized Demand Signals, together with changes in Committed Delivery Dates through deferral of Items pursuant to Section 2.3.3 cause the volumes of Items that are to be delivered in a weekly period to exceed Supplier's delivery volumes provided for by the Supplier Performance Plan and if Supplier is not able to complete and make delivery of the quantities solely due to such variations (and exclusive of any delivery volume limitations or other problems resulting from Supplier's failure or inability to achieve capacity and flexibility levels established for the affected periods under the Supplier Performance Plan), then Applied will allow Supplier to deliver Items that are affected by the excessive increase for that period up to a maximum of two (2) weeks in advance of the applicable Committed Delivery Dates. Such early delivery allowance shall be in effect only to the extent and for the period commercially necessary to enable Supplier to comply with the Committed Delivery Date(s) of Items exceeding its capacity and flexibility levels, and in no event later than the time revised capacity or flexibility requirements can be established on a commercially reasonable basis. This Section 2.5 does not alter the provisions of this Agreement in Section 2.3 (Cancellation of Items), Section 2.14 (Provisions for Reconfiguration or Restocking), or Section 2.8 (*).

ACCEPTANCE; DELIVERY. (a) Supplier shall not refuse to accept, on the basis of the quantity of Items involved, Authorized Demand Signals under Section 2.1.5.1 that are within current manufacturing capacities, production volumes, and operating levels or are within Capacity Projections or flexibility levels included in the Supplier Performance Plan. Supplier shall also advise Applied (upon request) regarding additional volumes of Items that are within increases in such capacities, volumes and levels, beyond the Capacity Projections and flexibility levels under the Supplier Performance Plan, that Supplier can achieve through use of commercially reasonable efforts. (b) If week to week variations in the quantities of Items deliverable under Authorized Demand Signals, together with changes in Committed Delivery Dates through deferral of Items pursuant to Section 2.3.3 cause the volumes of Items that are to be delivered in a weekly period to exceed Supplier's delivery volumes provided for by the Supplier Performance Plan and if Supplier is not able to complete and make delivery of the quantities solely due to such variations (and exclusive of any delivery volume limitations or other problems resulting from Supplier's failure or inability to achieve capacity and flexibility levels established for the affected periods under the Supplier Performance Plan)) , then Applied will allow Supplier to deliver Items that are affected by the excessive increase for that period up to a maximum of two (2) weeks in advance of the applicable Committed Delivery Dates. Such early delivery allowance shall be in effect only to the extent and for the period commercially necessary to enable Supplier to comply with the Committed Delivery Date(s) of Items exceeding its capacity and flexibility levels, and in no event later than the time revised capacity or flexibility requirements can be established on a commercially reasonable basis. This Section 2.5 does not alter the provisions of this Agreement in Section 2.3 (Cancellation of Items), Section 2.14 (Provisions for Reconfiguration or Restocking), or Section 2.8 (***).. ---------- * Confidential Treatment Requested