Common use of Quantity Forecast Clause in Contracts

Quantity Forecast. By the fifth business day of each calendar month (the month in which the forecast is issued hereafter being "M"), Customer will provide to Corvis a twelve-month rolling forecast (each being a "Rolling Forecast") of deliveries for the twelve-month period commencing at the beginning of the next month. The first calendar month of each Rolling Forecast (hereinafter "M+1") will include the quantity of each Product, by product code, to be delivered during M+1. For the remaining calendar months of each Rolling Forecast (M+2 through M+12), the Rolling Forecast will show the quantity of each Product by product code which Customer anticipates it will need to be delivered during the specified month. The first month of each Rolling Forecast (M+1) will represent a binding commitment to order and Customer will submit a Purchase Order (or multiple Purchase Orders) for such amount with the Rolling Forecast. The forecast issued in M for the second month of each Rolling Forecast (M+2) will be partially binding in that in the next subsequent Rolling Forecast (in which the calendar months designated as M+1 and M+2 in the preceding Rolling Forecast have become M and M+1, respectively), the quantity of each Product by product code to be delivered in M+1 and the corresponding Purchase Order will be not less than 85% of the quantity forecast for each Product in the immediate preceding Rolling Forecast for that same calendar month. Customer will present no more than one Rolling Forecast each month.