Common use of Materials Procurement Clause in Contracts

Materials Procurement. 3.1.1 Based on each Demand, FLEXTRONICS shall prepare an “MRP” run within four (4) working days from Forecast receipt. Based on the MRP run, FLEXTRONICS will submit to Veraz, for its information, a report with components and parts identified with catalog numbers and the quantities that FLEXTRONICS plans to acquire or to cancel or de-expedite pursuant to the “MRP” run (the “Components and Parts Report”) FLEXTRONICS shall include on the Components and Parts Report the purchase value of the MRP run. Without the need for further actions from Veraz, FLEXTRONICS shall proceed promptly to perform the activities set out in such MRP run. 3.1.2 Veraz may, at no charge, and without incurring any liability cancel delivery of all Products or component as per the Components Cancellation Window Exhibit 3.1.2 (as such term is defined in section 3.1.3 below). Cancellation by Veraz, done less than the periods set forth in the Components Cancellation Window may be subject to cancellation charges which in no event be higher than the documented payment made by FLEXTRONICS as a result of such cancellation, to any third party provider of the components subject to the cancellation as aforesaid. The foregoing (i.e. payment of cancellation charge) shall not apply if Veraz has ordered thereafter Products from the cancelled Purchase Orders. FLEXTRONICS will confirm in writing within 4 days upon receipt of any request for cancellation as aforesaid, provided that Veraz will verify upon delivery of such notification that such notification has been received by FLEXTRONICS. However, if FLEXTRONICS indeed received the notification and failed to confirm it within the above period it will be deemed to have received the notification. 3.1.3 FLEXTRONICS will submit to Veraz, once a quarter for Veraz’s written approval, an update for the Components Cancellation Window (Exhibit 3.1.2) detailing the components cancellation windows i.e. a period of days before the delivery date of each Item, if applicable, in which period the purchase order to the supplier of such item cannot be cancelled without any fees or penalties, (the “Components Cancellation Window ”). 3.1.4 Upon execution of this Agreement, FLEXTRONICS will submit to Veraz a report listing components and parts with long lead time items – LLI Materials (as defined below) greater than 60 days (the “LLI Report”), attached hereto as Exhibit 3.