Common use of E&O Inventory Disposition Process Clause in Contracts

E&O Inventory Disposition Process. At each Supply Review Meeting, the parties will identify and agree upon E&O Inventory. As shown on Exhibit 4.1a, the parties will have no more than **** to carry out any agreed upon mitigation plan to reduce exposure from such E&O Inventory. Such mitigation plan may include, for example and without limitation the following: (a) returning unused Inventory and Special Inventory (to the extent it is returnable), (b) canceling pending orders for Materials (to the extent orders for Materials are cancelable), (c) using Inventory to manufacture Products to meet Customer’s future needs or other Customers’ products or (d) reworking inventory to be suitable for customer use or other customer’s products (at mutually agreed upon cost). If, after these ****, there is remaining E&O Inventory, then Customer will be responsible for all such E&O Inventory to the extent such E&O Inventory was purchased by Flextronics based on MRP Demand and in compliance with Section 4. Flextronics shall invoice Customer for the Cost of such remaining E&O Inventory and Customer shall pay in accordance with Section 3.5. Upon payment by Customer, Flextronics shall, at Customer’s sole option, either ship, at Customer’s expense, such remaining E&O Inventory to Customer or dispose of such remaining E&O Inventory in a commercially reasonable manner approved by the Customer and credit or reimburse, as applicable, Customer any monies received from third parties. **** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.