BLANKET PARTS AGREEMENT
Customer agrees that its Monthly MRP forecasts or other indication of a need for products to be furnished by Universal Magnetics Inc may result in our procurement of certain products (“NC/NR Products”) listed above and, if applicable, on this Exhibit A.
Unless otherwise mutually agreed in writing, Customer will be responsible to accept delivery of and pay for all NC/NR Products ordered or held in inventory by Univesal Magnetics Inc based upon Customer’s expressed need for such products, as described above, over an agreed upon 24 hours period (the “Pipeline Period”). If no Pipeline Period is specified, Customer will be responsible for NC/NR Products ordered or held in inventory by Universal Magnetics Inc. based upon the manufacturer’s lead time and a reasonable time to allow for delivery. A decrease in Customer’s expressed need for products will not affect Customer’s liability for NC/NR Products ordered by Universal Magnetics Inc. prior to such decrease.
Orders for NC/NR Products may not be cancelled, and Products cannot be returned to us for any reason except in accordance with any applicable warranty. Any warranty that would ordinarily apply to NC/NR Products will not be affected by this Agreement. Customer agrees that Universal Magnetics Inc will not be required to hold NC/NR Products in inventory longer than 30 days and that Universal Magnetics Inc may charge an inventory carrying charge of 1.5% per month of the resale value of any NCNR Products held in Universal Magnetics Inc. inventory for more than 30 days. Upon Universal Magnetics Inc.’s request Customer agrees to immediately issue Universal Magnetics Inc. a PO with a quantity sufficient to consume any NC/NR Products held in Universal Magnetics Inc.’s inventory form more than 60 days. If Customer has entered into a separate, written agreement with Universal Magnetics Inc. (Contract) that provides different terms for holding NC/NR Products than does this NC/NR Parts Agreement, the Contract terms specific to holding NC/NR Products will prevail over this NC/NR Parts Agreement. Final delivery date is not to be construed as an expiration date for this Agreement or cancellation of your obligation to accept NC/NR Products. So as not to necessitate the signing of new NC/NR Parts Agreement, any part number listed on this NC/NR Parts Agreement that is changed due to a revision by the manufacturer but is the same in fit, form and function shall also be covered hereunder and designated as an NC/NR Product.
Please indicate your agreement with the above by signing in the space provided below and returning a signed copy of this form by fax or mail. Your Order will not be processed until Universal Magnetics Inc. receives this Agreement. Thank you for giving us the opportunity to serve you.