Cardinal Health’s Duties Regarding Cardinal Health Components Sample Clauses

Cardinal Health’s Duties Regarding Cardinal Health Components. With respect to the Cardinal Health Components, Cardinal Health shall: (a) Timely ship all Cardinal Health Components F.O.B. destination to the SRI facilities designated by SRI in the applicable purchase order. (b) Maintain 98% Component Fill Rate (as defined below) for Cardinal Health Components. With respect to undershipments (i.e., the quantity of Cardinal Health Components shipped to SRI is less than the amount that should have been shipped to SRI in accordance with SRI’s purchase order), “Component Fill Rate for undershipments” is defined as (i) the quantity of Cardinal Health Components meeting the warranty requirements set forth in Section 4.1 actually shipped to SRI as set forth in SRI’s purchase order (ii) divided by the quantity of Cardinal Health Components that should have been shipped in accordance with SRI’s purchase order. With respect to overshipments (i.e., the quantity of Cardinal Health Components shipped to SRI is greater than the amount that should have been shipped to SRI in accordance with SRI’s purchase order), “Component Fill Rate for overshipments” is defined as one (1) less (i) (A) the quantity of Cardinal Health Components meeting the warranty requirements set forth in Section 4.1 actually shipped less (B) the amount that should have been shipped, divided by (ii) the amount that should have shipped in accordance with SRI’s purchase order. For example, if the quantity set forth in SRI’s purchase order equals 60, Cardinal Health ships 70, the Component Fill Rate calculation for this shipment would be [1 – (70 - 60) / 60 = .833 or 83.3%]. The Component Fill Rate for undershipments and overshipments shall be measured separately for each Cardinal Health Component described in a separate line item in SRI’s purchase order and shall not be measured on an aggregate basis for all Cardinal Health Components shipped pursuant to SRI’s purchase order. SRI will measure the Component Fill Rate on a quarterly basis with respect to all of the purchase orders SRI submits to Cardinal Health for such calendar quarter. If Cardinal Health fails to meet the Component Fill Rate with respect to any calendar quarter and, after notice of such failure by SRI, fails to maintain the Component Fill Rate for the immediately following calendar quarter, SRI may invoice and collect from Cardinal Health an amount equal to 2% of the value of the Cardinal Health Components for each 1% the Component Fill Rate was below 98% with respect to the purchase orders for any c...
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Cardinal Health’s Duties Regarding Cardinal Health Components. With respect to the Cardinal Health Components, Cardinal Health shall: (a) Timely ship all Cardinal Health Components to the SRI facilities designated by SRI in the applicable purchase order. (b) Maintain 98% Component Fill Rate (as defined below) for Cardinal Health Components. “Component Fill Rate” is defined as (i) the quantity of Component Products meeting the warranty requirements set forth in Section 4.1 actually shipped to SRI as of the delivery date set forth in SRI’s purchase order (ii) divided by the quantity of Cardinal Health Components that should have been shipped in accordance with SRI’s purchase order. SRI will measure the Component Fill Rate on a quarterly basis with respect to all of the purchase orders SRI submits to Cardinal Health for such calendar quarter. If Cardinal Health fails to meet the Component Fill Rate with respect to any calendar quarter and, after notice of such failure by SRI, fails to maintain the Component Fill Rate for the immediately following calendar quarter, SRI may invoice and collect from Cardinal Health an amount equal to 10% of the value of the Cardinal Health Components for each 1% the Component Fill Rate was below 98% with respect to the purchase orders for any calendar quarter for which the Component Fill Rate was below 98%. SRI acknowledges that Cardinal Health’s ability to comply with the foregoing requirements depends on its timely receipt of accurate and complete forecasts and ordering via an electronic data interchange (EDI) or Cardinal Health’s Web-based ordering system, such as xxx.Xxxxxxxx.xxx.

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