Common use of Purchase Forecasts Clause in Contracts

Purchase Forecasts. At least one calendar month prior to the first requested delivery of Products hereunder, Purchaser shall notify Manufacturer in writing of the projected total number of Products, broken down by each Product model or category, to be purchased by Purchaser during each month of the succeeding twelve (12) calendar month period ("Forecast"). The projections for the first six (6) months of such initial Forecast shall be firm and shall be accompanied by Orders for such first six (6) months with respect to the models covered thereby. Thereafter, Purchaser shall provide Manufacturer with a similar Forecast for any new Product models or categories; the first six (6) months of such Forecast for new Products shall be firm and shall be accompanied by Orders for such first six (6) months for such new Products. All such Forecasts shall be updated on a monthly basis by adding a twelfth month to replace the expired month (but not changing any other month in the Forecast), with updates to be delivered not less than one (1) calendar month in advance. The first three (3) months of each such updated Forecast (beginning with the fifth month of the first Forecast period for each Product) shall be firm and shall be accompanied by Orders for the Products in the additional month of the Firm Period. The estimates for the remaining nine (9) months shall be non-binding estimates for planning purposes only and Purchaser shall have no liability therefor. Purchaser shall establish reasonable Inventory levels to meet demand for the Products which shall be a minimum amount equal to one month of anticipated demand for the Territory as evidenced by the Forecast. To accommodate Manufacturer's production scheduling, the total Products ordered for any three (3)-month or six (6)-month Firm Period will be limited to a twenty percent (20%) maximum aggregate increase or twenty percent (20%) maximum decrease in Units relative to the projection for such Firm Period contained in the Forecast provided to Manufacturer for such Firm Period, unless otherwise agreed by the Parties in writing.