Cardinal Health’s Duties Regarding Disposable Products Sample Clauses

Cardinal Health’s Duties Regarding Disposable Products. With respect to the Disposable Products, Cardinal Health shall: (a) Timely ship all Disposable Products F.O.B. destination to the SRI facilities designated by SRI in the applicable purchase order. (b) Within five (5) business days after the end of each month and receipt of customer purchase data from SRI, pay to SRI a tracing fee of [* * *]% of Cardinal Health’s gross revenues with respect to the Disposable Products and a prompt pay fee of [* * *]% 15, net 45. (c) Maintain 98% Disposable Product Fill Rate (as defined below) for Disposable Products. “Disposable Product Fill Rate” is defined as (i) the quantity of Disposable Products meeting the warranty requirements set forth in Section 4.1 actually shipped as of the delivery date set forth in SRI’s purchase order, divided by (ii) the quantity of Disposable Products that should have been shipped in accordance with that purchase order. SRI will measure the Disposable Product Fill Rate on a quarterly basis with respect to all of the purchase orders submitted by SRI to Cardinal Health for such calendar quarter. If Cardinal Health fails to meet the Disposable Product Fill Rate with respect to any calendar quarter and, after notice of such failure by SRI, fails to maintain the Disposable Product 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 Disposable Product for each 1% the Disposable Product Fill Rate was below 98% with respect to the purchase orders for any calendar month for which the Disposable Product 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 information from SRI via an electronic data interchange (EDI) or Cardinal Health’s Web-based ordering system, such as xxx.Xxxxxxxx.xxx.
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Related to Cardinal Health’s Duties Regarding Disposable Products

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