Common use of Special Inventory Clause in Contracts

Special Inventory. Subject to the conditions below, Facet 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 Facet ("Long Lead Time Components") plus thirty (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 ("Minimum Order Inventory"). Collectively, these components, materials, and supplies are termed "Special Inventory." *** Confidential Treatment Requested