Excess and Obsolete Material Inventory Sample Clauses

Excess and Obsolete Material Inventory. No more than two times per year, Cirtronics shall advise Customer in writing of what it believes to be Excess Material or Obsolete Material in its inventory and the “Delivered Cost” (defined as Cirtronics actual cost of the material plus [***] markup on said costs for handling) of such material (the “E&O List”). Within [***] after receiving Cirtronics E&O List, Customer shall: (i) advise Cirtronics of any Materials on the E&O List that it reasonably believes is not Excess Material or Obsolete Material, and the reasons therefor, and (ii) shall issue to Cirtronics a purchase order for (1) all undisputed Obsolete Material and (2) all undisputed Excess Material wherein Cirtronics has elected to sell back such Excess Material to Customer. For the undisputed Excess Material that Cirtronics has not sold back to Customer, Cirtronics has the right to impose an inventory carrying charge of [***] per annum on the Delivered Cost of such Excess Material. Cirtronics shall invoice Customer no later than thirty (30) days from receipt of Customer’s purchase order for the Obsolete Material and Excess Material, and Customer shall pay Cirtronics its Delivered Cost for such undisputed Excess Material and Obsolete Material within the payment term specified in Section 3. Cirtronics and Customer shall work in good faith to reach agreement, within twenty (20) business days after Cirtronics delivers an E&O List, regarding disputed Excess Material and Obsolete Material on such E&O List in accordance with the Escalation Process under Section 17.5(a). The term “Obsolete Material” shall mean the inventory of Materials for which there is no demand as a result of an ECO (as defined in Section 7.1(b)). The term “Excess Material” shall mean the inventory of Materials that exceeds the amount of Materials required to meet Customer’s firm orders based upon Customer’s Orders plus Customer’s blanket orders; provided that (1) Materials purchased by Cirtronics in excess of Customer-approved inventory levels without Customer’s specific approval shall not be considered Excess Material and (2) inventory of Materials subject to minimum order quantities that are substantially in excess of that needed to satisfy Customer’s Orders plus Customer’s blanket orders may also be considered Excess Material.
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Related to Excess and Obsolete Material Inventory

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  • Location of Equipment and Inventory All Equipment and Inventory are (i) located at the locations indicated on Schedule 4 (ii) in transit to such locations or (iii) in transit to a third party purchaser which will become obligated on a Receivable to the Debtor upon receipt. Except for Equipment and Inventory referred to in clauses (ii) and (iii) of the preceding sentence, the Debtor has exclusive possession and control of the Inventory and Equipment.

  • SIGNIFICANT LANDS INVENTORY FINDING Find that this activity is consistent with the use classification designated by the Commission for the land pursuant to Public Resources Code section 6370 et seq.

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