Forecasts Orders and Capacity Clause Samples

Forecasts Orders and Capacity. 8.1. Forecasts, Order Limits And Capacity. 8.1.1. No later than the first day of each calendar month during the Term, SESI shall provide a good faith written rolling forecast by month to EPIR (“Forecast”). Said Forecast shall outline the quantities and types of Energy Products that SESI expects to purchase in each month during the subsequent 12-month period. The quantities of Energy Products for the first six calendar months of each Forecast will be firm. The quantities of Energy Products for the remaining six months in each Forecast will be non-binding good faith estimates for planning purposes only. 8.1.2. In the event that SESI recognizes that the non-binding portion of a Forecast that has been submitted is substantially inaccurate, SESI shall submit a revised Forecast as quickly as possible. EPIR shall not be obligated to supply Energy Products in excess of the quantity contained in the then-current binding Forecast. 8.1.3. Subject to the terms and conditions of this Agreement, EPIR shall use commercially reasonable efforts to fulfill a Firm Purchase Order within ten (10) days of the delivery date set forth in the Firm Purchase Order. 8.1.4. Notwithstanding anything to the contrary in this Agreement, EPIR agrees to use commercially reasonable efforts to increase the production of Energy Products if it becomes apparent based on SESI’s Forecasts that SESI’s demand for the Energy Products will exceed EPIR’s capacity to produce the Energy Products. The parties understand and agree that EPIR’s efforts to increase such production may be constrained by the Parties’ ability to attract additional sources of funding apart from the Scheduled Payments listed in Exhibit A-1. 8.1.5. SESI shall notify EPIR in writing at least ninety (90) days in advance of any significant increases in demand that SESI anticipates and shall amend its Forecast to reflect such anticipated change. SESI expects that demand for the Products shall increase steadily over the Term as certain regulatory approvals to sell the Products are obtained, and as the distribution channels evolve and mature.