Common use of Safety Stock Clause in Contracts

Safety Stock. In recognition of TheraSense's desire to have a ------------ ready supply of Products, Facet agrees to maintain a raw materials inventory at its facility in an amount equivalent to *** of TheraSense's *** usage. Such inventory will be modified from time to time based upon TheraSense's actual usage over the preceding [***]. All materials for TheraSense shall be cycled through this inventory on a FIFO basis. TheraSense's obligation and sole liability for this service shall be to purchase any such inventory at Facet's cost plus associated overhead expense upon termination or expiration of this Agreement or cancellation of any Purchase Order per 4.5, and provided Facet is not able to otherwise use such inventory. Facet shall use reasonable commercial efforts to eliminate or reduce this inventory at the approaching expiration of this Agreement.

Safety Stock. In recognition of TheraSense's desire to have a ------------ ready supply of Products, Facet agrees to maintain a raw materials inventory at its facility in an amount equivalent to [*** of TheraSense's *** usage]. Such inventory will be modified from time to time based upon TheraSense's actual usage over the preceding [***]. All materials for TheraSense shall be cycled through this inventory on a FIFO basis. TheraSense's obligation and sole liability for this service shall be to purchase any such inventory at Facet's cost plus associated overhead expense upon termination or expiration of this Agreement or cancellation of any Purchase Order per 4.5, and provided Facet is not able to otherwise use such inventory. Facet shall use reasonable commercial efforts to eliminate or reduce this inventory at the approaching expiration of this Agreement.