Common use of Subsequent Demand for Excess Materials Inventory Clause in Contracts

Subsequent Demand for Excess Materials Inventory. If demand for Contractor’s products (including but not limited to Company’s Purchase Orders) develops during the subsequent six-month period following the determination that excess Materials inventory exists which would consume all or a portion of the excess Materials, Contractor shall use the excess Materials inventory to fulfill such product demand. In this case, Contractor agrees to purchase back Company owned excess Materials needed to fulfill the new demand at the same price Company paid Contractor as defined in paragraph 8.4.5 above before placing its purchase orders for new Materials with suppliers. Contractor understands and agrees that Company has the right to develop and institute special sales programs that are designed to create demand for such excess Materials during the subsequent six-month period. If no demand develops for any or all of the excess Materials during the subsequent six (6) month period after the determination that excess Materials inventory exists, Contractor, with Company’s approval, shall take steps to sell the excess Materials inventory or reclaim any precious metals from the excess Materials inventory owned in total by Company and Contractor. Contractor shall seek Company’s approval of the sale or reclamation of such inventory, and Company must agree in writing prior to the sale or reclamation activity. In the case where Contractor sells or reclaims the precious metals from the excess Materials inventory, Contractor will reimburse Company for 50% of the proceeds from such sale or reclamation activity.

Subsequent Demand for Excess Materials Inventory. If demand for Contractor’s products excess Materials (including but not limited to Company’s Purchase Ordersorders) develops during the subsequent six-month period following the determination that excess Materials inventory exists which would consume all or a portion of the excess Materials, Contractor shall use the excess Materials inventory to fulfill such product demand. In this case, Contractor agrees to purchase back Company owned excess Materials needed to fulfill the new demand at the same price Company paid Contractor as defined in paragraph 8.4.5 above before placing its purchase orders for new Materials with suppliers. Contractor understands and agrees that Company has the right to develop and institute special sales programs that are designed to create demand for such excess Materials during the subsequent six-month period. If no demand develops for any or all of the excess Materials during the subsequent six (6) month period after the determination that excess Materials inventory exists, Contractor, with Company’s approval, shall take steps to sell the excess Materials inventory or reclaim any precious metals from the excess Materials inventory owned in total by Company and Contractor. Contractor shall seek Company’s approval of the sale or reclamation of such inventory, and Company must agree in writing prior to the sale or reclamation activity. In the case where Contractor sells or reclaims the precious metals from the excess Materials inventory, Contractor will reimburse Company for 50% of the proceeds from such sale or reclamation activity.