Common use of Treatment of Obsolete/End-of-Life Material Clause in Contracts

Treatment of Obsolete/End-of-Life Material. 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 reasonable 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. Company’s liability shall include the price of finished Product and Jabil’s costs (including cancellation fees and charges), plus applicable margin, of WIP, safety stock components and materials and components and materials on hand or on order within applicable Lead-times. 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. • Make all Commercially Reasonable Efforts to sell Components and materials to third parties; provided, however, that Company shall approve any such sale for Components and consigned items that Company identifies in writing as having “exclusive rights.” • Assist Company to determine whether current WIP should be completed, scrapped or shipped to Company or its designee “AS-IS.”

Treatment of Obsolete/End-of-Life Material. 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 end‑of‑life Jabil will, within a reasonable 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. Company’s liability shall include the price of finished Product and Jabil’s costs (including cancellation fees and charges), plus applicable margin, of WIP, safety stock components and materials and components and materials on hand or on order within applicable Lead-timesLead‑times. 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. • Make all Commercially Reasonable Efforts to sell Components and materials to third parties; provided, however, that Company shall approve any such sale for Components and consigned items that Company identifies in writing as having “exclusive rights.” • Assist Company to determine whether current WIP should be completed, scrapped or shipped to Company or its designee “AS-IS.”