Forecasts and Material Liability Clause Samples

Forecasts and Material Liability. 5.1.1 Sonim will use [***] to provide Company with [***] of its [***] of anticipated orders for the Products, and spare parts on a [***] basis. Company shall review the production capability for each Product and evaluate its capability of fulfilling the [***]. All [***] shall be subject to [***]. 5.1.2 Sonim shall be liable to Company for all excess and obsolete materials and approved Long Lead-Time Materials, as defined below, that Company purchases or causes to be purchased with Sonim’s [***] to stock-up/purchase such material, including open purchase orders for such materials (“Approved Materials”). Company’s material availability and production plan shall be [***] to Sonim. Any Company material stock-up plan must [***] be confirmed by Sonim’s purchasing team, and Sonim shall be only liable for the materials disclosed in the BOM. For materials with lead time longer than [***] (“Long Lead-Time Materials”), Company will obtain [***] approval from Sonim to purchase Long Lead-Time Materials on a case by case basis prior to any purchase of such materials. 5.1.3 Sonim shall respond to Company’s proposed material stock-up plan or purchase request for Long Lead-Time Materials no later than [***] from its receipt of Company’s proposal. 5.1.4 Company may submit a material liability claim to Sonim [***], requesting to settle the material liability related to (a) any Approved Materials that do not have a projected usage for the next [***]; (b) any Approved Materials warehoused that have not been consumed in the previous [***]; or (c) any expired Approved Materials. In the event Company submits any material liability claim requesting Sonim to pay for any excess and/or obsolete materials, Sonim may request Company to provide relevant purchase order information to the extent necessary and for the sole purpose to verify such material liability claim. 5.1.5 Subject to agreement between the Parties, Sonim shall obtain and maintain in favor of Company an irrevocable bank guarantee, equivalent to the amount specified in each applicable SOW (“Bank Guarantee”). The terms of the Bank Guarantee shall provide that Company shall be entitled to enforce the same in the event there is any default in payment obligations set forth in this Agreement. It is clarified that in the event the Bank Guarantee is encashed by Company pursuant to default in payment plus delayed payment charges, if any, in accordance with this Agreement, Sonim shall provide a fresh Bank Guarantee for the amount ...