Common use of Material Procurement Clause in Contracts

Material Procurement. Supplier is authorized to purchase materials required to provide Products ordered in writing by Netr▇; ▇▇rategic Materials as requested by Netr▇; ▇▇d long lead time materials agreed to by Netr▇ ▇▇ a Long Lead Authorization Form. The parties will work together on a best efforts basis to reduce material leadtimes. Netr▇ ▇▇▇lizes its financial responsibility for material purchased on behalf of Netr▇. ▇▇ the event of a cancellation of a Purchase Order or revision of Long Lead Authorization, or excess material created by an engineering change, or revision of Strategic Materials quantities requested by Netr▇, ▇▇tr▇ ▇▇▇ees to compensate Supplier for reasonable costs associated with the cancellation for Products and material inventory and Strategic Materials purchased per the terms of the Agreement and to fill Netr▇'▇ ▇▇▇chase orders as follows: (i) the contract price of all finished Products in Supplier's possession, (ii) the burdened cost of material inventory and/or labor whether in raw form or work in process, and not returnable to the vendor or usable for other customers, (iii) the burdened cost of material on order which cannot be canceled, and (iv) any actual vendor cancellation charges incurred with respect to material re-allocation, customer cancellations or returns to the vendor. Supplier shall undertake best efforts to cancel all applicable component purchase orders and reduce component inventory through return for credit programs or allocate components for alternate programs if applicable. Netr▇ ▇▇▇l pay the mutually agreed upon cancellation charges, if any, within thirty (30) days of receipt of invoice. Netr▇ ▇▇▇ll have the right to any or all material received by or paid for by Netr▇ ▇▇▇er this clause.