Common use of Seller’s Equipment Clause in Contracts

Seller’s Equipment. Seller, at its expense, will furnish, keep in good condition, and replace when necessary all of its machinery and equipment, including related tooling, jigs, dies, gauges, fixtures, molds, patterns, fixtures and other accessories, required for the production of goods covered by this Contract (collectively, "Seller’s Equipment”). Seller will insure Seller’s Equipment with fire and extended coverage insurance for its full replacement value. Seller grants Buyer an irrevocable option to take possession of, and title to, all or part of Seller’s Equipment that is specially designed or outfitted for the production of the goods covered by this Contract, in which event Buyer will, within 45 days following delivery of such Seller’s Equipment to Buyer, pay to Seller of the lower of (i) the net book value of such Seller’s Equipment (i.e., actual cost less amortization) or (ii) then current fair market value of such Seller’s Equipment, in each case less any amounts that Buyer has previously paid to Seller on account of such Seller’s Equipment. The foregoing option will not apply to the extent that Seller’s Equipment is used to produce goods that are the standard stock of Seller and are then being sold by Seller to other customers. Buyer’s right to exercise the foregoing option is not conditioned on Seller’s breach or Buyer’s termination of this Contract or upon payment of any other amounts due under this Contract.

Seller’s Equipment. Seller, at its expense, will furnish, keep in good condition, condition and replace when necessary all of its machinery and equipment, including related tooling, jigs, dies, gauges, fixtures, molds, patterns, fixtures and other accessories, required for the production of goods covered by this Contract (collectively, "“Seller’s Equipment”). .) Seller will insure Seller’s Equipment with fire and extended coverage insurance for its full replacement value. Seller grants Buyer an irrevocable option to take possession of, and title to, all or part of Seller’s Equipment that is specially designed or outfitted for the production of the goods good covered by this Contract, in which event Buyer will, within 45 days following delivery of such Seller’s Equipment to Buyer, pay to Seller of the lower of (i) the net book value of such Seller’s Equipment (i.e., actual cost less amortization) or (ii) then current fair market value of such Seller’s Equipment, in each case less any amounts that Buyer has previously paid to Seller on account of such Seller’s Equipment. The foregoing option will not apply to the extent that Seller’s Equipment is used to produce goods that are the standard stock of Seller and are then being sold by Seller to other customers. BuyerXxxxx’s right to exercise the foregoing option is not conditioned on Seller’s breach or Buyerof Xxxxx’s termination of this Contract or upon payment of any other amounts due under this Contract.

Seller’s Equipment. Seller, at its expense, will furnish, keep in good condition, condition and replace when necessary all of its machinery and equipment, including related tooling, jigs, dies, gauges, fixtures, molds, patterns, fixtures and other accessories, required for the production of goods covered by this Contract (collectively, "“Seller’s Equipment”). .) Seller will insure Seller’s Equipment with fire and extended coverage insurance for its full replacement value. Seller grants Buyer an irrevocable option to take possession of, and title to, all or part of Seller’s Equipment that is specially designed or outfitted for the production of the goods good covered by this Contract, in which event Buyer will, within 45 days following delivery of such Seller’s Equipment to Buyer, pay to Seller of the lower of (i) the net book value of such Seller’s Equipment (i.e., actual cost less amortization) or (ii) then current fair market value of such Seller’s Equipment, in each case less any amounts that Buyer has previously paid to Seller on account of such Seller’s Equipment. The foregoing option will not apply to the extent that Seller’s Equipment is used to produce goods that are the standard stock of Seller and are then being sold by Seller to other customers. Buyer’s right to exercise the foregoing option is not conditioned on Seller’s breach or of Buyer’s termination of this Contract or upon payment of any other amounts due under this Contract.