Common use of Buffer Stock Clause in Contracts

Buffer Stock. Synnex will be required to maintain a minimum buffer stock of all Products as specified in a Product Information Document (and updated by Blue Coat as needed) (“Buffer Stock”). This Buffer Stock is to accommodate requests for expedited orders and dead-on-arrival replacements. Additionally, the Buffer Stock will be used to accommodate expected and unexpected quarterly business cycle fluctuations. However, the Buffer Stock will not exceed a maximum as specified in Product Information Document. If the Buffer Stock becomes Excess Buffer Stock, then Blue Coat shall pay either (a) reasonable carrying costs for such Excess Buffer Stock or (b) the Product cost as outlined in the Product Information Document or the updated cost agreed to by the parties.