Xxxxx Aviation Specific Design Products Sample Clauses

Xxxxx Aviation Specific Design Products. For those products that are produced in accordance with Buyer specifications that would reasonably be considered custom in nature due to the predominate degree of uniqueness that significantly differentiates it from other products being produced by the Seller, the obligation for cost of materials and labor to Seller shall be determined as follows; i. Pre-production Labor – Buyer shall be responsible for direct labor costs authorized by Buyer and generated by Seller specifically for the purchase order, pro-rated over the current order quantity. ii. Raw Materials – Buyer shall be responsible for the cost of applicable raw material stock purchased by Seller specifically for the purchase order. In the case of materials in which the Seller has on firm sub-contract order, Buyer may at its option either take an assignment of Seller’s rights under such orders, or pay the costs, of selling or discharging Seller’s obligations under such orders. iii. Semi-processed Materials – Buyer shall be responsible for semi-processed materials applicable to the purchase order at a proportion of contract price based on the stage of completion of such materials. iv. Finished Materials – Buyer shall be responsible for finished materials at contract price.