Common use of Code Date Management Clause in Contracts

Code Date Management. The following shall be the Private Label Products inventory management practices the Parties will continue to employ: a) KeHE shall provide the respective SFM category managers a dedicated periodic inventory report showing code dates and time remaining for all Private Label Product inventories in each facility, as provided in Exhibit E. This provides the opportunity for the Parties to [***]. SFM will be responsible for [***] for Private Label products in KeHE’s inventory, except to the extent caused by KeHE’s negligence, such as buying errors or excessive over-purchasing by KeHE and any such responsibility by KeHE has been approved, when deemed necessary, by both Parties at the Vice President level. Additionally, in the event KeHE fails to notify SFM of a Private Label Product’s code date status at least [***] for non-perishables and [***] for perishables prior to their code date, or at an earlier agreed-upon timeframe for items with shorter shelf-life, resulting in the Private Label item being discarded due to it reaching the end of its code date, [***]. b) In the event Private Label Products inventory is required to be discarded, KeHE shall remove the Product from inventory based on agreed-upon code date parameters, and [***]. Notwithstanding the foregoing, KeHE shall notify SFM prior to discarding any Product and SFM, at its sole expense, shall reserve the right to coordinate its disposal or donation to a local food bank of their choice, provided the timing for such disposal or donation is reasonable. c) KeHE will communicate a code date policy to Private Label Product Vendors consistent with KeHE’s code date policy for Branded Product Vendors, and SFM agrees to use commercially reasonable efforts to require all Private Label Product Vendors to comply with such code date policy. The Parties will work in good faith to seek reimbursement from Private Label Product Vendors for spoilage that result from failure to comply with the code date policy.

Code Date Management. The Parties will continue to apply the following shall be the Private Label Products inventory management practices the Parties will continue to employpractices: a) KeHE shall provide the respective SFM category managers a dedicated periodic inventory report report, showing code dates and time remaining for all Private Label Product inventories in each facility, as provided in Exhibit E. . This Sprouts Expiry report is published and available through [***]. This provides the opportunity for the Parties to [***]. SFM will be responsible for [***] for Private Label products in KeHE’s inventory, except to the extent caused by KeHE’s negligence, such as buying errors or excessive over-purchasing by KeHE [***] and provided any such responsibility by KeHE ▇▇▇▇ has been approved, when deemed necessary, by both Parties Parties, at the Vice President level. Additionally, in the event KeHE fails to notify SFM of a Private Label Product’s code date status (at least [***] for nonNon-perishables Perishable Products and [***] for perishables Perishable Products), prior to their code date, or at an earlier agreed-upon timeframe for items with shorter shelf-life, resulting in the Private Label item being discarded due to it reaching the end of its code date, [***]. b) In the event Private Label Products inventory is required to must be discarded, KeHE shall remove the Product from inventory inventory, based on agreed-upon code date parameters, and [***]. Notwithstanding the foregoing, KeHE shall notify SFM SFM, prior to discarding any Product Product, and SFM, at its sole expense, shall will reserve the right to coordinate its disposal or donation to a local food bank of their its choice, provided the timing for such disposal or donation is reasonable. c) KeHE will communicate a code date policy to Private Label Product Vendors consistent with KeHE’s ▇▇▇▇’▇ code date policy for Branded Product Vendors, and SFM agrees to use commercially reasonable efforts to require all Private Label Product Vendors to comply with such code date policy. The Parties will work in good faith to seek reimbursement from Private Label Product Vendors for spoilage that result results from failure to comply with the code date policy.