Delivery Performance. During the […***…] month period immediately following the Effective Date (the “Grace Period”), for all accepted Purchase Orders, NXP will maintain an average monthly on-time delivery rate consistent with NXP’s delivery performance during the 2011 calendar year under the Original MSA. Thereafter, for all accepted Purchase Orders, NXP will maintain an average monthly on-time delivery rate of at least […***…] percent […***…]%). For purposes of this Section 7.3, the Parties acknowledge and agree that “on time delivery” means (a) shipment of the total quantity of ordered Products on the original confirmed delivery date; and (b) the period of time between shipment and delivery shall not be greater than […***…] Business Days. The Parties further acknowledge and agree that NXP’s obligations under this Section 7.3 are subject in all cases to Section 2.4 hereof. Without limiting the foregoing, the Parties shall cooperate in good faith to enable NXP to achieve an average monthly on-time delivery rate of at least […***…] percent ([…***…]%) in the calendar quarters after the Grace Period.
Appears in 3 contracts
Sources: Manufacturing Services Agreement, Manufacturing Services Agreement (Entropic Communications Inc), Manufacturing Services Agreement (Entropic Communications Inc)