Common use of Orders And Production Release Clause in Contracts

Orders And Production Release. Buyer shall issue purchase orders by the 15th day of each calendar month or three (3) business days after Seller’s response to the applicable Buyer Forecast, whichever occurs later, for wafer outs during the calendar month two months hence. By way of illustration, a purchase order is due by January 15th for wafer outs scheduled for March. Seller shall have no liability as to any commitments by Seller with respect to wafer outs as to which a purchase order is not timely received. Notwithstanding Buyer’s failure to timely issue a purchase order, Buyer is committed with respect to quantities to which Buyer has committed in a Buyer Forecast to the extent such amounts have been accepted by Seller. No order for production quantities of a Product shall be placed by Buyer unless and until Buyer has approved the pilot runs or prototypes for the Product. If Buyer properly places a purchase order for production quantities of a Product, Seller may deem such an order as written production release approval for such Product. All purchase orders shall be in writing. Seller shall acknowledge in writing, within three (3) business days of receipt of a purchase order, either the acceptance of the order, or the reason such order cannot be accepted, or if Seller wishes to modify such order If Seller does not provide such acknowledgement within the time provided, Buyer shall contact Seller to determine the cause for the lack of acknowledgment. Other than variances in quantities ordered, no acceptance of a purchase order shall constitute acceptance of any terms at variance with this Agreement and/or previously accepted forecasts, and purchase orders shall be null and void as to those variances.