EXCESS AND Sample Clauses

EXCESS AND. OBSOLETE MATERIALS (i) During the performance of this Agreement, Contractor will purchase materials to support the purchase requirements of the Buyers program. Certain materials which Contractor will acquire will be subject to minimum-buy requirements, scrap and attrition additions, and quantity price breaks which may result in excess material accumulation. Additionally, design changes may cause other materials to become obsolete. (ii) During the performance of this Agreement, Contractor will provide Buyer with periodic updates of the status and amount of excess or obsolete material. (iii) Contractor will use its best efforts to minimize the quantity and cost to Buyer of excess and/or obsolete materials relating to the production of Products, and whenever possible, return the same to Contractor's supplier or use the same in the manufacture of other Products for Buyer or other products for Contractor's other customers. Such effort will be coordinated with Buyer when possible. However, final costs associated with the ----------- * Information omitted and filed separately with the SEC pursuant to request for confidential treatment under Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

EXCESS AND. OBSOLETE MATERIALS Customer is responsible for all costs resulting from a reduction in forecast exceeding the ordering rules outlined in Section 6.1 and Customer is responsible for all obsolete material resulting from engineering design changes requested by Customer. Manufacturer is responsible for the cost of all other Excess and Obsolete materials. Customer will accept Excess and Obsolete charges at the time of the final disposition of such material to the extent Customer is responsible: for such changes as outlined above. Manufacturer and Customer shall review such Excess and Obsolete materials monthly to ensure compliance with the terms herein.

EXCESS AND. OBSOLETE MATERIALS (i) During the performance of this supply Agreement, Contractor will purchase materials to support the requirements of the Buyers program. Certain materials which Contractor will acquire will be subject to minimum-buy requirements and quantity price breaks which may result in excess material accumulation which will be the responsibility of the Buyer provided that Buyer has approved such purchases. Additionally, design changes may cause materials to become obsolete. Obsolete materials due to a design change will be returned to suppliers when possible. Non-returnable inventory will be charged and delivered to the Buyer. (ii) During the performance of this supply agreement, Contractor will provide the Buyer with periodic updates of the status and amount of excess or obsolete material. (iii) Contractor will use its best effort to minimize the impact of excess material and/or obsolete materials on Buyer's program. Contractor will return materials to suppliers for credit, less restocking fees, when appropriate. However, final costs associated with the accumulation of excess and obsolete materials are chargeable and payable by the Buyer. Any excess or obsolete inventories will be charged to the Buyer at Contractor's cost plus 20% material burden, but without profit. Disposition of excess or obsolete materials will be coordinated with the Buyer to minimize the impact of cost to the Buyer where possible. Buyer's targeted maximum obsolescence budget is $50,000 maximum.