Common use of Disposition Process Clause in Contracts

Disposition Process. Within [***] after the end of the second month of calendar quarter, SANMINA-SCI shall advise CUSTOMER in writing of any Excess or Obsolete Inventory in its inventory and their Delivered Cost (the “E&O List”). Sanmina’s E&O list will contain only inventory items that make up [***] of excess and Obsolescence. Within [***] of receiving SANMINA-SCI’s E&O List, CUSTOMER shall advise SANMINA-SCI of any Component on the E&O List that it believes is not excess or obsolete. Within [***] after receiving SANMINA-SCI’s E&O List, SANMINA-SCI and CUSTOMER shall finalize the E&O List, and (1) CUSTOMER shall issue to SANMINA-SCI an Order for all mutually agreed upon Excess Inventory on the E&O List, or (2) [***]. If option 1:CUSTOMER shall pay SANMINA-SCI its Delivered Cost for Components on the E&O List within [***] of the date of invoice. In the event the Parties cannot agree as to the Components on the E&O List, [***]. For the purpose of this Section, the phrase “obsolete Component” shall mean any Component which is not currently used to manufacture CUSTOMER’s Product (whether as a result of an ECO or otherwise), and the term “excess Component” shall mean any Component which is not required to meet CUSTOMER’s Order or CUSTOMER’s Forecast to which such Component was initially ordered. CUSTOMER shall not have the right to delay payment for excess Components by increasing or pushing out its Forecast.