Common use of Initial Forecast Clause in Contracts

Initial Forecast. Upon the execution of this Agreement, CUSTOMER shall provide SANMINA-SCI with (i) an initial ninety (90) day firm purchase order (“Order”) and (ii) a forecast for Product requirements (in monthly buckets) for an additional nine (9) months (“Forecast”). All Orders shall be binding and may be rescheduled only in accordance with Section 4.2(d), or cancelled upon payment of (1) the purchase price of the Product (if the cancellation is made within 30 days of the scheduled delivery date) or (2) the amounts set forth in Section 4.2(f) (if cancellation is made outside of such 30-day period) SANMINA-SCI shall make purchase commitments (including purchase commitments for Long Leadtime Components) to its Component suppliers (“Vendors”) based upon the Order and Forecast (solely with respect to Long Leadtime Components and Class C Components demand driven by forecast), and CUSTOMER shall be responsible for all such Components purchased in support of CUSTOMER’s Order and then-current Forecast (solely with respect to Long Leadtime Components and Class C Components demand driven by forecast and minimum order multiples). For all other purposes, however, the Forecast shall be non-binding and will be provided to SANMINA-SCI for estimation purposes only.