Treatment of Obsolete/End-of-Life Material and E&O Inventory Sample Clauses

Treatment of Obsolete/End-of-Life Material and E&O Inventory. Upon receiving notice from Company of an engineering change or that any Product, component or assembly has become obsolete or has reached end-of-life Jabil will, within a sixty (60) day period after receiving such notice, provide Company with an analysis of Company’s liability to Jabil for components and materials acquired or scheduled to be acquired to manufacture such Product. At Company’s written request, Jabil will purchase such components and materials for prompt sale to Company to be placed in inventory under consignment. In the event Jabil agrees to provide such consignment services to Company, the Parties shall execute Jabil’s standard Company Owned Inventory Agreement (“XXXX”), a copy of which is available upon request. Company shall be liable for E&O Inventory at Jabil’s Purchasing Standard Cost plus three and 3 quarters percent (3.75%) to be billed following the event which results in E&O Inventory (e.g., agreed-to order rescheduling, change order, order cancellation), or each calendar quarter if not invoiced following such event. Jabil will use Commercially Reasonable Efforts to assist Company in minimizing Company’s liability by taking the following steps: • As soon as is commercially practical reduce or cancel component and material orders to the extent contractually permitted. • Return all components and materials to the extent contractually permitted. • Review internal material usage to determine if E&O Inventory can be used by Jabil for another customer. • Make all Commercially Reasonable Efforts to sell components and materials to third parties. • Assist Company to determine whether current work in progress should be completed, scrapped or shipped “as is” (completed work shall be billed at the finished Product price; scrapped or “as-is” shipments to be billed subject to Jabil’s quote for same).