Common use of Other Inventory Clause in Contracts

Other Inventory. When BUYER cancels or reduces an order for a particular Product under a Purchase Order for reasons other than the discontinuance of SUPPLIER as a manufacturer of the Product or because of an engineering change initiated by BUYER, BUYER will purchase approved custom, non-cancellable, nonreturnable, MOQ, or long Leadtime Components purchased in accordance with the agreed upon Build Plan and the terms of this Agreement for the Products (“Excess Materials”) which remain in SUPPLIER’s inventory [***], upon the execution of this Agreement, for a particular Product under a Purchase Order. BUYER may elect to store them at SUPPLIER and pay SUPPLIER a storage fee based on actual space required at the current quarters quoted warehouse space cost. Once the Excess Materials have been stored at SUPPLIER [***], BUYER will use reasonable efforts to disposition the Excess Materials [***].