Inventory Reporting, Inventory Liability and Coverage Clause Samples

Inventory Reporting, Inventory Liability and Coverage a. Component Mitigation. Plexus may have OX Components on hand or on order as a consequence of 1) Packeteer Demand adjustments, cancellations or rescheduling of Purchase Orders by Packeteer, 2) Plexus’ support of increases to Demand by Packeteer, 3) the failure of Purchase Orders to consume previously Forecasted requirements, 4) the failure to have adequate or conforming supplies of Customer-Supplied Components, 5) end of life requirements, 6) economic or minimum order quantities, or 7) engineering or material change orders. Plexus will use best reasonable efforts to minimize Component liability to Packeteer caused by Packeteer Demand changes, cancellations, and other factors. These efforts will include returning Components to, or restocking Components with Suppliers, canceling orders with Suppliers, or using Components to meet the current demand of other Plexus customers but only if first approved by Packeteer. Packeteer agrees to assist Plexus in such efforts if appropriate and requested by Plexus. Packeteer acknowledges that Plexus’ mitigation efforts, even if successful, may result in cancellation, restocking, and similar charges imposed by Suppliers. Plexus will obtain Packeteer’s approval prior to incurring such charges. If so approved by Packeteer, Packeteer will pay Plexus for the charges imposed within thirty (30) days from the date of Plexus’ invoice.