Inventory Carrying Cost Sample Clauses

Inventory Carrying Cost. SGI agrees to pay a fee of 5% of the SGI Component Inventory value at the beginning of the program, and every 6 months thereafter on the then current inventory balance, to cover inventory carrying costs associated with the SGI Component Inventory held at the RSP until Component Inventory is consumed.
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Inventory Carrying Cost. NCR plans to purchase all E&O items which have had E&O status of greater than *** months requirements forecast visibility for more than 90 days. However, NCR, at its option may pay Solectron an inventory carrying cost of ***% per month for such E&O Items which have had E&O status for more than 90 days. At the end of the 90 days, such items that NCR does not purchase would be subject to the ***% inventory carrying cost per full month until dispositioned from Solectron. Inventory Carrying Costs apply only to declared E&O. In the event that Solectron desires to warehouse such Products and Parts subject to inventory carrying costs, it will obtain NCR’s written consent for doing so. Otherwise no additional charge for warehousing shall apply to NCR. Inventory carrying costs shall not apply to NCR if inventory aging is attributable to Solectron or its suppliers.
Sample 1
Inventory Carrying Cost. Each Party’s “Inventory Carrying Cost” shall mean Per Unit Cost (of the Party’s supplier having the longer lead time for drug substance) multiplied by the drug substance inventory receipts by Baxalta during a given calendar year from such Party’s suppliers, multiplied by (the time difference of the CTI CMO lead time and Independent Supplier lead time (expressed on an annual basis)) multiplied by **. For example: **
Sample 1
Inventory Carrying Cost. McDATA agrees to pay a monthly inventory carrying cost equal to that defined below. • The following carrying charges would be applicable on all inventory exceeding an agreed upon baseline with the goal for the McDATA/SSCI teams to obtain inventory turn rates of [***] turns per calendar year and a reasonable assumption that an ongoing baseline of inventory needs to be retained by SSCI at the end of each calendar quarter. For instance: (assuming that the current cost of goods sold is $[***] and [***] [***] turns expectation would require the maximum of SSCI carrying [***] of active inventory). Turns would be calculated using GAAP; inventory carrying costs would be calculated as follows: (total inventory at the end of each month – baseline inventory = inventory subject to the % below). • The baseline inventory for purposes of this Agreement would be calculated utilizing a [***] [***] month rolling averagecost of goods sold. • Inventory carrying charges would be applied at a rate of [***] [***] percent per month on all inventory over that month’s calculated baseline. • The total inventory must be justified and adjusted according to documentation generated by SSCI. (i.e., waterfall charts NCNR approvals, long lead-time agreements, etc.). Any inventory deemed to be the responsibility of SSCI will be subtracted from the total inventory number calculations as it pertains to inventory carrying costs Immediately after the Effective Date, the parties will form teams of McDATA and Sanmina-SCI personnel to develop methods and processes to remedy the causes generating any inventories beyond those needed to support McDATA forecast requirements. These teams would report on a monthly basis the progress and findings of their efforts to a senior management team of McDATA and Sanmina-SCI to insure all reasonable efforts are made to attain our goal of a minimum of [***] [***] turns. Additionally SSCI will waive all carrying charges for a [***] [***] period commencing from the Effective Date of this Agreement, while the teams are working to initiate processes to insure inventory turns can be maximized.
Sample 1
Inventory Carrying Cost. Handspring will be liable for On-Hand Tier 1 material carrying costs in excess of [*] demand created by a Handspring initiated change in the MPS (assuming Tier 1 materials have been purchased and/or canceled to lead time and MPS requirements). Carrying charges will be set at [*] for Tier 1 materials. Handspring agrees to disposition Tier 1 material in excess of [*] demand. The methodology will be defined in the proposed agreement and will cover freight and cost of acquisition. Handspring will be liable for a [*] of demand created by a Handspring initiated change in the MPS (assuming Tier 2 materials have been purchased and/or canceled to lead time and MPS requirements). [*] Handspring and Solectron will negotiate a methodology in the agreement to cover inbound freight and cost of acquisition expenses.
Sample 1

Related to Inventory Carrying Cost

  • Inventory Adjustment (a) Within 30 days after the Closing Date, Sellers shall prepare and deliver to Buyer a statement (the "Closing Inventory Statement") setting forth the type and value, as of the close of business on the day immediately preceding the Closing Date, of the inventory of the Business, which statement shall be derived from a physical taking of such inventory as of such date and shall value inventory on the basis of the lower of cost or market value utilizing a first-in, first-out method in a manner consistent with Sellers' and the Companies' past practices and the standards and principles used in the preparation of the Unaudited Consolidated Statement of Net Investment Assets of the Business as of September 25, 2004 and shall otherwise be prepared in a manner consistent with Sellers' and the Companies' past practices with respect to perpetual inventory records; provided, that all amounts denominated in Canadian dollars that are part of the calculation of the value of inventory pursuant to this Section 2.05 shall be converted into U.S. dollars using the Closing Date Exchange Rate. Buyer and its representatives shall have such opportunity as Buyer reasonably deems appropriate to observe the taking and reconciliation of such inventory (which may begin prior to the Closing Date) in connection with the preparation of the Closing Inventory Statement. Buyer shall provide Sellers and their accountants, upon reasonable notice, such access to the books and records, to any other information, including working papers of Buyer's accountants, and to any employees of Buyer and its affiliates, in each case as may be reasonably necessary for Sellers to take such physical inventory, prepare the Closing Inventory Statement, respond to the Buyer's Inventory Objection (as defined in Section 2.05(b)) and prepare materials for presentation to the Arbitrator in connection with the matters contemplated by Section 2.05(c). If necessary, Buyer shall, after Closing, also provide or cause to be provided to Sellers and their designees such access as such persons may reasonably request to all facilities at which inventory of the Business is located in order to conduct such physical inventory. For the avoidance of doubt, the inventory of the Business to be valued pursuant to this Section 2.05 consists of the Inventory and all inventory of the Companies.

  • Accounts and Inventory Each Account or item of Inventory which Borrower shall, expressly or by implication, request Lender to classify as an Eligible Account or as Eligible Inventory, respectively, shall, as of the time when such request is made, conform in all respects to the requirements of such classification as set forth in the respective definitions of "Eligible Account" and "

  • Accounts Receivable; Inventory (a) For each Account with respect to which Advances are requested, on the date each Advance is requested and made, such Account shall be an Eligible Account.

  • Location of Inventory and Equipment The Inventory and Equipment are not stored with a bailee, warehouseman, or similar party (without Foothill's prior written consent) and are located only at the locations identified on Schedule 6.12 or otherwise permitted by Section 6.12.

  • Eligible Inventory As to each item of Inventory that is identified by any Borrower as Eligible Inventory in a Borrowing Base Certificate submitted to Agent, such Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as ineligible by virtue of one or more of the excluding criteria (other than Agent-discretionary criteria) set forth in the definition of Eligible Inventory.

  • Accounts Receivable; Inventories The accounts receivable of Seller reflected in the Unaudited Financial Statements and the accounts receivable aging report set forth in Schedule 5.21, as well as such additional accounts receivable as are reflected on the books of Seller on the date hereof, are (except to the extent reserved in accordance with GAAP) valid, genuine and subsisting, arise out of bona fide sales and deliveries of goods, performance of services or other business transactions and to Seller's Knowledge, are not subject to defenses, deductions, set-offs or counterclaims. The inventories reflected on the Unaudited Financial Statements and held by Seller on the date hereof, net of reserves therefor in accordance with GAAP, are usable or saleable in the ordinary course of Business. Such inventories have been reflected on the Unaudited Financial Statements at the lower of cost or market value (taking into account the usability or salability thereof) in accordance with GAAP. None of such inventories have been written up in value or repurchased by, or returned to, Seller at an increased value. All such inventories are owned free and clear and are not subject to any Lien except to the extent reserved against or reflected in the Financial Statements. Since the Financial Statement Date, inventories of raw materials, supplies and products have been purchased by Seller in the ordinary course of the Business, consistent with anticipated seasonal requirements, and the volumes of purchases thereof and orders therefor have not been reduced or otherwise changed in anticipation of the transactions contemplated by this Agreement. Except as set forth in Schedule 5.21 hereto, Seller does not have any Knowledge of any conditions affecting the supply of materials or products available to Seller and, to the Knowledge of Seller, the consummation of the transactions contemplated hereby will not adversely affect any such supply.

  • Equipment and Inventory With respect to any Equipment and/or Inventory of an Obligor, each such Obligor has exclusive possession and control of such Equipment and Inventory of such Obligor except for (i) Equipment leased by such Obligor as a lessee or (ii) Equipment or Inventory in transit with common carriers. No Inventory of an Obligor is held by a Person other than an Obligor pursuant to consignment, sale or return, sale on approval or similar arrangement.

  • As to Equipment and Inventory The Grantor hereby agrees that it shall

  • Returned Inventory If an Account Debtor has an authorized return and returns any Inventory covered by such return to such Grantor when no Event of Default exists, then such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. Such Grantor shall deliver a monthly report to the Administrative Agent setting forth all such returns involving an amount in excess of $10,000,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to such Grantor when an Event of Default exists, such Grantor, upon the request of the Administrative Agent, shall: (i) hold the returned Inventory in trust for the Administrative Agent; (ii) dispose of the returned Inventory solely according to the Administrative Agent’s written instructions; and (iii) not issue any credits or allowances with respect thereto in an amount exceeding $500,000 in the aggregate during any Fiscal Month without the Administrative Agent’s prior written consent. All returned Inventory shall be subject to the Administrative Agent’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory unless such Inventory constitutes Third Party Logistics Goods.

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