Purchase Order Flexibility Clause Samples

Purchase Order Flexibility. Flextronics agrees to provide INFOCUS with maximum purchase order flexibility while limiting INFOCUS’ exposure to raw materials, work in process, and allowing INFOCUS delivery rescheduling of the Product necessary to maintain optimal finished goods levels. Flextronics will purchase material at lead-time to support INFOCUS confirmed purchase orders. Flextronics will also purchase long-lead components that have been agreed to by the Parties and shown in Exhibit C and support INFOCUS latest forecast. In the event a confirmed purchase order is cancelled by INFOCUS then Flextronics agrees to use reasonable and diligent efforts to mitigate the cost to INFOCUS by disposing of any excess non-proprietary material though one of the following means; (1) where possible, re-allocating all common material for use by other Flextronics customers in other manufacturing facilities, (2) returning excess material to supplier, or (3) selling excess non-proprietary material to 3rd party where 3rd party will fully reimburse the original purchase price or if less than original purchase price is paid, then INFOCUS will pay the difference to Flextronics including agreed to material burden.