NCNR Material Clause Samples

NCNR Material. For the purpose of this Agreement, “NCNR Material” shall mean those Materials which are non cancellable/non-returnable at the time the order is placed, and for the purposes of this Agreement, the initial list of NCNR Material is attached hereto as Exhibit B and is incorporated herein by this reference. If SANMINA-SCI needs to purchase any Materials that are non-cancellable or non-returnable and not included on Exhibit B, then it must obtain prior written approval from CUSTOMER to add such Materials to Exhibit B and any mutually agreed changes set forth in writing shall be considered updates to Exhibit B even if the Parties do not adopt a formal amendment to this Agreement. The Parties will meet on a quarterly basis to review and update the NCNR Material list as necessary. NCNR Material shall not include Materials which are on order (not yet received) and are manufactured to the CUSTOMER’s Specifications and, therefore, become “custom” and essentially “noncancelable” as value is added to the Material. Once received, these Materials shall be considered NCNR Material. By way of example, printed circuit boards are not considered “NCNR Material” while on order because they can be cancelled with little or no cancellation charge at the time of the order, but the cancellation charge increases as the Vendor adds value to the board and the board becomes customized.