Common use of Order Forecasts Clause in Contracts

Order Forecasts. Once PI Product enters volume production, MEC/MEI --------------- shall provide PI sufficient information concerning wafer lot sizes and cycle times to enable PI to plan its purchase orders. PI agrees to place monthly orders/releases for tested Wafers with MEC/MEI. PI shall issue purchase orders and rolling six (6) month forecasts on a monthly basis as follows: (a) PI shall deliver an initial binding purchase order covering four (4) months of deliveries of tested Wafers and a nonbinding forecast[s] for same for the following two (2) months. (b) In order to allow MEC the smooth production of the Wafers, by the twenty-fifth (25th) day of each month during the term of this Agreement, PI shall deliver a purchase order and updated forecast, specifying (i) its firm, noncancellable order for Wafer starts for the next four (4) months ahead; the first month of which is specified by product, and the next three months of which are forecast by product, against which the numbers of Wafers (but not necessarily the product mix) stated in PI's actual orders shall be the same, and (ii) the quantities of Wafers to be ordered by PI for the months five (5) and six (6) months ahead, against which PI's actual orders will be within the range of plus or minus thirty percent (30%).