Common use of Material Planning Clause in Contracts

Material Planning. (a) Each Party shall use commercially reasonable efforts to establish an initial buffer stock of their Component Products as set forth in Paragraph 1.4 of the Initial Project Plan of Exhibit A. (b) Thereafter, each Party shall use commercially reasonable efforts to maintain at least forty-five (45) days of forward-looking buffer stock for its Component Products. On the first business day of each quarter during the Term following the Design Freeze Date, the Parties shall prepare mutually agreed upon rolling one-hundred-eighty (180) day estimate of customer requirements for Component Products for the MP DSLAM Cooperative Reference Design (the “Production Plan”) which shall be based on anticipated customer demand, not a Party’s ability to supply its Component Product. The Parties shall not be held liable for the accuracy of the “Production Plan.”