RATE REDUCTION. Reductions in the rate of delivery will be accepted by Seller at no additional charge within the following limitations: a. Buyer shall declare within the context of any production Purchase Order, as well as subsequent follow-on Orders, a "base schedule" of delivery requirements. b. The "base schedule" shall be for a period of twelve (12) months and shall identify the rate of delivery for each month. The initial four (4) months of deliveries in the "base schedule" represents Buyer's obligation/liability, whereas the last eight (8) months of deliveries in the "base schedule" are anticipated quantities based on market projections and thus are for planning purposes only. c. Buyer reserves the right to issue revisions as appropriate and without obligation for any element of the "base schedule" beyond four (4) months from delivery. d. The base schedule quantity shall become Buyer's obligation/liability as each monthly increment moves from five (5) months from delivery to four (4) months from delivery. Thereafter, Buyer shall retain its right to reschedule at no charge, quantities within the second (2nd) through the fourth (4th) month, providing the reschedule does not reduce the monthly quantity to less than one (1) for delivery in any month between the second (2nd) and fourth (4th) full calendar months from the date of notice. The quantity by which each month is reduced must be rescheduled for delivery. e. Any quantities scheduled for delivery within the first (1st) full calendar month from date of notice shall not be changed. f. Termination liability shall not apply to that element of the schedule that is beyond four (4) months from the date of termination notice, unless any element of later periods contains quantities which have been rescheduled as provided above. g. Seller will accommodate increases in the rate of delivery at no additional charge to Buyer to the degree that such increases can be achieved without incurring additional cost such as special expedite or overtime premiums. See LAI Indented ▇▇▇▇ of Material (BOM) for all tools, engineering drawings, specifications, and special instructions or documents related to configuration control. All items on the LAI BOM must be used at the revision shown to build this part. Contact LAI if a copy of the BOM or any item listed on it is needed.
Appears in 2 contracts
Sources: Purchase Order Terms & Conditions Agreement, Purchase Order Terms & Conditions Agreement
RATE REDUCTION. Reductions in the rate of delivery will be accepted by Seller at no additional charge within the following limitations:
a. Buyer shall declare within the context of any production Purchase Order, as well as subsequent follow-on Orders, a "base schedule" of delivery requirements.
b. The "base schedule" shall be for a period of twelve (12) months and shall identify the rate of delivery for each month. The initial four (4) months of deliveries in the "base schedule" represents Buyer's obligation/liability, whereas the last eight (8) months of deliveries in the "base schedule" are anticipated quantities based on market projections and thus are for planning purposes only.
c. Buyer reserves the right to issue revisions as appropriate and without obligation for any element of the "base schedule" beyond four (4) months from delivery.
d. The base schedule quantity shall become Buyer's obligation/liability as each monthly increment moves from five (5) months from delivery to four (4) months from delivery. Thereafter, Buyer shall retain its right to reschedule at no charge, quantities within the second (2nd) through the fourth (4th) month, providing the reschedule does not reduce the monthly quantity to less than one (1) for delivery in any month between the second (2nd) and fourth (4th) full calendar months from the date of notice. The quantity by which each month is reduced must be rescheduled for delivery.
e. Any quantities scheduled for delivery within the first (1st) full calendar month from date of notice shall not be changed.
f. Termination liability shall not apply to that element of the schedule that is beyond four (4) months from the date of termination notice, unless any element of later periods contains quantities which have been rescheduled as provided above.
g. Seller will accommodate increases in the rate of delivery at no additional charge to Buyer to the degree that such increases can be achieved without incurring additional cost such as special expedite or overtime premiums. See LAI Indented ▇▇▇▇ Bill of Material (BOM) for all tools, engineering drawings, specifications, and special instructions or documents related to configuration control. All items on the LAI BOM must be used at the revision shown to build this part. Contact LAI if a copy of the BOM or any item listed on it is needed.
Appears in 1 contract