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

Treatment of Obsolete/End-of-Life Material. Upon receiving notice from iRobot of an engineering change or that any Product, component or assembly has become obsolete or has reached end-of-life, Kin Yat will, within a reasonable period after receiving such notice, provide iRobot with an analysis of iRobot’s liability to Kin Yat for components and materials acquired or scheduled to be acquired to manufacture such Product. iRobot’s liability shall include the price of finished Product and Kin Yat’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 Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 24b-2 of the Exchange Act - [***] denotes omissions. applicable Lead-times. Kin Yat will use Commercially Reasonable Efforts to assist iRobot in minimizing iRobot’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 iRobot approved third parties. • Assist iRobot to determine whether current WIP should be completed, scrapped or shipped to iRobot or its designee “as is”.