Common use of SELLER’S PROPERTY Clause in Contracts

SELLER’S PROPERTY. 17.1 All Tooling and other items that are not Buyer’s Property and that are necessary for the production of Products are the property of Seller (collectively, “Seller’s Property”). 17.2 Seller, at its expense, will furnish, keep in good working condition capable of producing the Products meeting all applicable specifications, and replace when necessary, all Seller’s Property. Seller will insure Seller’s Property with “all risk” Property Insurance for its full replacement cost. If Seller uses Seller’s Property to produce goods or services similar to the Products for other customers, including aftermarket customers, such goods or services will not incorporate any of Buyer’s Intellectual Property Rights (including, but not limited to its, logos, trademarks, trade names) or part numbers. Seller will not disclose or imply in its marketing efforts that such goods or services are equivalent to those purchased by Buyer. Seller grants to Buyer an irrevocable option to take possession of and title to Seller’s Property that is special for the production of Products under the Order upon payment to Seller of its net book value less any amounts that Buyer has previously paid to Seller for the cost of such items, if any. This option does not apply if Seller’s Property is used to produce goods that are the standard stock of Seller or if a substantial quantity of like goods is being sold by Seller to others.