Common use of Forecasts and Purchase Orders Clause in Contracts

Forecasts and Purchase Orders. (a) During the term of this Agreement, Ethicon shall provide to Genetronics; no later than the first day of each month a non-binding rolling 12 month forecast reflecting Ethicon's monthly requirements for Product(s) for that period. The forecast will be assumed to be mutually agreeable unless Genetronics notifies Ethicon within 10 business days of receipt of said forecast in which case the parties agree to discuss an acceptable alternate forecast. In addition, Ethicon shall provide an initial guidance forecast ("Initial Forecast") 60 days prior to the estimated date of First Commercial Sale of each new Product. Such forecast shall be updated prior to such estimated date of First Commercial Sale. (b) Ethicon shall place binding orders for Products by written or electronic purchase order (or by any other means agreed to by the parties) to Seller, which shall be placed at least 60 days prior to the desired date of delivery. Genetronics shall be obligated to supply no less than 90% of the Products ordered pursuant to this Agreement to the extent the purchase orders are, collectively, no greater than 120% of the monthly forecast provided pursuant to Section 5.3(a) above no less than 90 days prior to delivery of such purchase order. Ethicon shall at all times be obligated to purchase the quantity of the Products requested in such purchase orders.