Common use of Forecasts and Firm Orders Clause in Contracts

Forecasts and Firm Orders. With effect from 1 February 2014, no later than one (1) week prior to the end of each month, Distributor shall provide a forecast of its estimated monthly requirements of the Products for at least the six (6) month period beginning with the following month on a Country by Country basis (each, a “Forecast”). The beginning month of each Forecast shall be referred to as “Month 1” and each subsequent month shall be numbered sequentially. The quantity of Products indicated for Months 1–4 shall be firm and binding on Distributor (a “Firm Order”). Months 5–6 of each Forecast will remain flexible and can be varied by Distributor, subject to Distributor’s efforts to achieve the Target Sales by the Target Dates. Distributor shall be obligated to purchase at least such quantities of Product as are set forth in each Firm Order. The initial Forecast is attached as Schedule 5.