Common use of Forecasts and Ordering Clause in Contracts

Forecasts and Ordering. On a basis to be agreed between the parties following good faith discussions, the Commercial Supply Agreement shall contain a mechanism by which Equillium provides Biocon with rolling forecasts of its estimated requirements of Product to be supplied to it during the term of the Commercial Supply Agreement. Such forecasting mechanism will stipulate that the Products estimated to be supplied during a particular time frame in the rolling period (not to exceed the first […***…] calendar quarter periods of each forecast) will constitute a firm binding purchase order by Equillium for those Products. The parties shall also agree on an upper maximum limit (measured as a percentage beyond […***…]% of the quantity of Products set out in a binding forecast (“Additional Quantities”)) of Products to be supplied pursuant to a binding forecast, subject to Biocon’s facility having the capacity to manufacture more than […***…]% of the quantity of Products set out in a binding forecast at the relevant time.