Common use of Supply Commitment Clause in Contracts

Supply Commitment. During the term of this Agreement, Open-Silicon agrees to supply to Customer one-hundred percent (100%) of Customer’s requirements for the Production Units, as specified in Purchase Orders that are not in excess of one hundred and fifty percent (150%) of the then-current Forecast. Notwithstanding the foregoing, Customer understands that yields for Production Units are subject to fluctuations; therefore, Customer will accept delivery of and accept as full performance: (a) plus five percent (5%) or (b) minus ten percent (10%) of the total quantity ordered, with price adjusted for the quantity actually delivered.

Appears in 2 contracts

Sources: Asic Design and Production Agreement (Netlist Inc), Asic Design and Production Agreement (Netlist Inc)