Common use of Consigned Materials Clause in Contracts

Consigned Materials. In the event Customer consigns Excess Inventory purchased by Customer to be used by Flextronics in the manufacture of the Product (“Consigned Materials”), Customer agrees to take delivery of the Consigned Materials after [*] ([*]) days. Title to Consigned Materials remains at all times with Customer and Flextronics has no obligation to purchase the Consigned Materials. All Consigned Materials are subject to a storage and handling charge of [*] percent ([*]%) of the value of the Consigned Materials per month until such Inventory is used to manufacture Products or is shipped to Customer at the end of the [*] ([*]) day period. Flextronics shall ensure that such Consigned Materials will be allocated part numbers to indicate Customer’s ownership. Flextronics will bear responsibility for any damage or loss of Consigned Materials related to nonproduction causes while they are on the premises of Flextronics. Upon reasonable notice, Customer may observe the warehouse space in which the Consigned Materials are stored.