Common use of Authorization to Procure Materials, Inventory and Special Inventory Clause in Contracts

Authorization to Procure Materials, Inventory and Special Inventory. Flextronics will provide **** and will obtain Customer’s agreement. Customer’s accepted purchase orders and forecast will constitute authorization for Flextronics to procure, without Customer’s prior approval: (a) minimum Inventory to manufacture the Products covered by such purchase orders based on the agreed upon Lead Time and (b) certain minimum Special Inventory based on Customer’s purchase orders and forecast as follows: Long Lead-Time Materials as required based on the Lead Time when such purchase orders are placed and Minimum Order Inventory. Flextronics will only purchase Economic Order Quantity with prior approval from Customer. Special Inventory materials as noted in 4.1c will require specific authorization by the Customer and will be noted at the MSR. Customer is not liable for the purchase of unauthorized inventory.