Common use of Materials Procurement Clause in Contracts

Materials Procurement. FLEXTRONICS shall purchase at its own expense, or source from its inventory sufficient components and raw materials required to provide the Products (“Materials”), using the Materials Procurement and Control Procedure, set forth in this Section 3 below, to meet the requirements of (a) the outstanding Purchase Orders and (b) the binding portion of the Forecast (including without limitation, ordering or otherwise committing to suppliers in respect of long lead items “LLI”) (the outstanding Purchase Orders together with the Forecast will be hereinafter defined as the “Demand”); provided, however, that (i) any purchase of Materials by FLEXTRONICS is subject to this section; (ii) Veraz may, at its sole option, require FLEXTRONICS to purchase any such Materials at a price to be determined by Veraz from any vendor and/or upon any terms and conditions as directed by Veraz subject to section 9;. Veraz may, at any time, with a prior written notice of 30 days in advance, notify FLEXTRONICS, with respect to any Materials, that Veraz will purchase any such Materials instead of FLEXTRONICS. If Veraz exercise its right as set forth in the preceding sentence, then the following shall apply: (i) FLEXTRONICS shall immediately cease purchasing any Materials which Veraz has notified FLEXTRONICS that it will purchase such Materials on its own account; (ii) FLEXTRONICS shall place an order to Veraz in accordance with this section; (iii) It will be Veraz’s responsibility to deliver such Materials purchased by itself to FLEXTRONICS’ premises, set forth in the preamble of this Agreement; [*] Confidential information in this Exhibit has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. (iv) Any delay of delivery of Materials to FLEXTRONICS, due to Veraz’s exercise of said right, shall be Veraz responsibility. (v) If FLEXTRONICS has reasonable ground to assume that the costs of such Materials are un-reasonable, FLEXTRONICS shall have the right to ask from Veraz for documentation showing the costs of such specific Materials. Any purchase of Materials by FLEXTRONICS pursuant to the above said will be in the amount of the last agreed price list for each item + [*]%.