Common use of Use Charges Clause in Contracts

Use Charges. TOOL OWNERSHIP: Seller retains title to any tooling required to manufacture the Product(s). Fifty percent of the tooling use charge is payable by Buyer upon receipt of the tooling order. The balance is payable upon delivery of first article parts manufactured to approved Product design specifications. Seller is responsible for routine maintenance of the tool during its useful life. Seller is responsible for repairing any damage to the tool caused by Seller's negligence or accident. The Buyer is responsible for replacement of the tool at the end of its useful life. Tool Changes: Tool design changes must be mutually agreed upon between Buyer and Seller. Any additional charges for tool changes will be borne by the requesting party. Tool Usage: Seller agrees to use tooling exclusively for Buyer's Products, except in the case that tooling is used to produce generic, non-proprietary components and Buyer approves tool usage.