Common use of VENDOR MANAGED INVENTORY PROGRAMS Clause in Contracts

VENDOR MANAGED INVENTORY PROGRAMS. Fujitsu and any Fujitsu Subsidiary may institute “vendor managed inventory programs,” operated through either Product Distribution Centers or via one or more third parties, on terms and conditions to be agreed in writing in advance by Spansion and Fujitsu. For purposes hereof, a vendor managed inventory program is a logistics program where a supplier stocks inventory at either a third party or customer location based on a customer build forecast. The customer does not own the inventory and is only billed once the inventory is used. The amount of inventory and other terms and conditions are based on an initially negotiated contract.