Common use of Consignment Inventory Clause in Contracts

Consignment Inventory. Purchaser will provide Consigned Die, and during the first six (6) months Consigned Materials, to Supplier from time to time for purposes of Supplier’s performance of Services under this Agreement. Such Consigned Die and Consigned Materials shall be stored in the locations and in the manner at the Facility such Consigned Die and Consigned Materials were stored in prior to the Closing Date or as otherwise specified in the Performance Standards, unless the parties agree in advance in writing on any changes to the storage location or procedures at the Facility. Supplier will use the Consigned Die and Consigned Materials to perform Services and Produce Products on a first-in, first-out basis. Upon reasonable advance written notice to Purchaser, Supplier may elect to obtain Materials on its own to perform the Services instead of receiving Consigned Materials from Purchaser; provided, however, if the purchase of such Materials instead of receipt of Consigned Materials results in an increase of costs to Supplier, then Supplier shall not be entitled to include such additional costs in its calculations for cost reconciliation pursuant to Section 2.4 above.

Appears in 2 contracts

Sources: Supply Agreement, Supply Agreement (Spansion Inc.)