Common use of Supply Requirements Clause in Contracts

Supply Requirements. 2.1 During the term of this Agreement, Flextronics shall supply TheraSense with those quantities of the Product ordered by TheraSense in a Purchase Order submitted to Flextronics pursuant to this Agreement. The Product shall comply with the Specifications and all jointly developed Quality Plans 2.2 In consideration for the services and support provided by Flextronics during the development of the Messenger and Freestyle product lines, the projected business volume offered to Flextronics hereunder, and competitive pricing offered to TheraSense hereunder. TheraSense agrees, to purchase all its Manufacturing Services for the Messenger and Freestyle product lines exclusively from Flextronics for a period of five (5) years from the Effective Date. TheraSense shall not be obligated hereunder if the Products fail to conform in all respects to the Specifications, this Agreement is terminated pursuant to Section 15, or, in market based benchmarking, Flextronics fails to maintain competitive pricing to warrant such exclusivity. Flextronics and TheraSense shall work jointly to develop a Quality Plan for Flextronics' manufacturing line with the ultimate goal to achieve within reasonable economic limits a process capability index (Cpk) of 1.67 or higher on all key parameters of the Product Specifications. 2.3 Flextronics shall share process data with TheraSense by submitting Certificates of Analysis that include process control charts, for every Product shipment.