Minimum Acceptable Quality Level definition
Minimum Acceptable Quality Level means a quality level such that the number of Non-Conforming Products (as defined in the Agreement) per million units of Products delivered by Supplier to YETI (“PPM”) does not exceed the following maximum PPM amounts, measured on a quarterly basis based on YETI’s inspections of a representative sample of Product deliveries received by YETI during that quarter: First year of Term Second year of Term (if any) Third year of Term (if any) Fourth and subsequent years of Term (if any) TBD* YETI will calculate whether Supplier met the Minimum Acceptable Quality Level in each quarter, as well as the amount of any SLA Credit (as defined below), and provide Supplier with the results of those calculations within sixty (60) calendar days after the end of the quarter. If Supplier does not achieve the Minimum Acceptable Quality Level during any quarter during the Term, then Supplier shall pay to YETI a Service Level Agreement credit (“SLA Credit”) for quality, calculated as follows: The percentage of Products delivered in the quarter that are Non-Conforming Products, based on YETI’s inspections of a representative sample of Products during the quarter, will be multiplied by the aggregate net dollar amount invoiced by Supplier to YETI for Products delivered in that quarter.
Examples of Minimum Acceptable Quality Level in a sentence
Supplier shall make all reasonable efforts to continuously improve the quality of each Product it sells to YETI, and will meet or exceed the applicable Minimum Acceptable Quality Level identified below.