Common use of Inventory Disposition Clause in Contracts

Inventory Disposition. In the event of termination under any part of paragraph 18.1, Company will purchase from Contractor all Finished Goods and Materials inventory necessary to fulfill Company Purchase Order(s) up to the effective date of termination (e.g., 360 days after written notice if termination is without cause). Contractor agrees, in the event of termination to, (i) not place purchase orders for Materials to be delivered later than the effective date of termination, (ii) terminate all open purchase orders for Materials for more than the quantity of Die and/or Product authorized by Company Purchase Order(s) for delivery up to the effective date of termination, (iv) pursue the return for refund or credit of Materials already received but not in Manufacture that will not be needed, and (v) follow all reasonable instructions to minimize the cost of such termination to Company, including instructions concerning the minimization of any excess inventory remaining at the effective date of termination.