Customer Responsibility for Design Materials Inventory. Customer will pay Flextronics a monthly carrying fee of [***] for all Design Materials Inventory that has been held by Flextronics for longer than [***] from receipt at Flextronics’s facility and that is not covered by a purchase order backlog deliverable in the next [***] under a Design Statement of Work. Upon completion of the Design Services or termination of this Agreement, Customer will either (a) purchase any remaining Design Materials Inventory from Flextronics at Cost plus a [***] material handling fee; or (b) direct Flextronics to return such materials to the supplier (if returnable) and pay Flextronics the difference between the reimbursement actually received by Flextronics and the Cost plus a [***] material handling fee; or (c) direct Flextronics to sell such materials to a production facility selected by Customer and pay Flextronics the difference between the sale price actually received by Flextronics and the Cost plus a [***] material handling fee. Customer acknowledges and agrees that any Materials that Customer authorizes Flextronics to purchase through the issuance of a purchase order for Product prior to Customer’s final acceptance of the Design Deliverables pursuant to Section 7.1 below are considered Design Materials Inventory and subject to the terms of this Section 5.4.
Customer Responsibility for Design Materials Inventory. Customer shall pay Flex a monthly carrying fee of one and half percent (1.5%) for all Design Materials Inventory that has been held by Flex for longer than 30 days from receipt at Flex’s facility and that is not covered by a purchase order backlog deliverable in the next thirty (30) days under a Design Statement of Work. Upon completion of the Design Services or termination of this Agreement, Customer shall either (a) purchase any remaining Design Materials Inventory from Flex at Standard Cost plus a twenty percent (20%) material handling fee; or (b) direct Flex to return such Design Materials to the supplier (if returnable) and pay Flex the difference between the reimbursement actually received by Flex and the Standard Cost plus a twenty percent (20%) material handling fee; or (c) direct Flex to sell such Design Materials to a production facility selected by Customer and pay Flex the difference between the sale price actually received by Flex and the Price plus a twenty percent (20%) materials handling fee.
