Common use of Special Inventory Clause in Contracts

Special Inventory. Subject to the conditions below, Flextronics ----------------- may purchase, in amounts beyond the amount necessary to fill accepted purchase --- orders, the components, materials, and supplies: (i) which require greater than ninety (90) days from the time they are ordered to the time they are delivered to Flextronics ("Long Lead Time Components") plus 30 days to account for the order, shipment, receipt and manufacturing and, (ii) purchased in quantities above the currently required amount in order to achieve price targets ("Economic Order Inventory"), and (iii) purchased in excess of current requirements because of minimum lot sizes available from manufacturers *** Confidential treatment requested ("Minimum Order Inventory"). Collectively, these components, materials, and supplies are termed "Special Inventory". (1) Flextronics may purchase Long Lead-Time Components sufficient to meet requirements for the Purchase Orders and Forecast in effect at the time Flextronics places an order with its supplier. (2) Flextronics may reasonably purchase Minimum Order Inventory as required by its suppliers' minimum order requirements. (3) Flextronics may purchase Economic Order Inventory only upon the prior approval of TheraSense. (4) Flextronics will, from time to time, hold Long Lead-Time Components and finished goods in inventory to increase TheraSense's production flexibility. The components and quantities of all such inventory will be mutually agreed to in writing by the parties prior to Flextronics placing such items into inventory. (5) TheraSense will be responsible for all non-cancelable/non- returnable materials as procured on TheraSense's behalf to support Purchase Orders and Forecasts subject to Section 4.2. (6) TheraSense will be responsible for all Inventory and Special Inventory purchased by Flextronics under this Section but subject to the conditions provided elsewhere in this Agreement.