Common use of DEMAND PLANNING Clause in Contracts

DEMAND PLANNING. 4.1 Siemens shall keep the Supplier as well informed as possible in the light of customer demand for its magnets and shall promptly inform the Supplier of changes in its requirements. Without limiting the foregoing Siemens shall notify the Supplier in writing on a monthly basis of Siemens’ requirements for Products for the following twelve (12) month period; this forecast shall indicate Siemens’ requirements by magnet type. Such forecasts shall be prepared in good faith on the basis of best available information but the Parties acknowledge that such forecasts do not form a binding commitment on Siemens to purchase or the Supplier to supply Products and is for information purposes such as long term planning by the Parties. 4.2 Without prejudice to Clause 4.1, in the event that Siemens requirements for Products exceeds the requirements projected in accordance with Clause 4.1, Siemens shall notify the Supplier in writing of its requirements and the Supplier shall use all endeavours reasonably practicable to meet such requirements. 4.3 Siemens agrees that it shall purchase from the Supplier the following percentages of its annual requirement of Products until such time as the percentages are reviewed and amended as agreed by the Parties: It shall not be a breach of this Agreement for Siemens in its sole discretion to purchase any Products from other Suppliers in the event of unavailability of the Products either in meeting Siemens’ forecasted requirements or due to unavailability at the Kanban System notwithstanding that this may result in the annual percentages to be purchased from the Supplier being lower than set out in this Clause 4.3. The percentages set out above shall be reviewed annually by the Parties.

DEMAND PLANNING. 4.1 Siemens shall keep the Supplier as well informed as possible in the light of customer demand for its magnets and shall promptly inform the Supplier of changes in its requirements. Without limiting the foregoing Siemens shall notify the Supplier in writing on a monthly basis of Siemens’ requirements for Products for the following twelve (12) month period; this forecast shall indicate Siemens’ requirements by magnet type. Such forecasts shall be prepared in good faith on the basis of best available information but the Parties acknowledge that such forecasts do not form a binding commitment on Siemens to purchase or the Supplier to supply Products and is for information purposes such as long term planning by the Parties. 4.2 Without prejudice to Clause 4.1, in the event that Siemens requirements for Products exceeds the requirements projected in accordance with Clause 4.1, Siemens shall notify the Supplier in writing of its requirements and the Supplier shall use all endeavours reasonably practicable to meet such requirements. 4.3 Siemens agrees that it shall purchase from the Supplier the following percentages of its annual requirement of Products until such time as the percentages are reviewed and amended as agreed by the Parties: Magnet Type Percentage [**] It shall not be a breach of this Agreement for Siemens in its sole discretion to purchase any Products from other Suppliers in the event of unavailability of the Products either in meeting Siemens’ forecasted requirements or due to unavailability at the Kanban System notwithstanding that this may result in the annual percentages to be purchased from the Supplier being lower than set out in this Clause 4.3. The percentages set out above shall be reviewed annually by the Parties.