Common use of Materials Procurement Clause in Contracts

Materials Procurement. Jabil will use Commercially Reasonable Efforts to procure components, per the Approved Manufacturers List provided by Company, necessary to fulfill mutually agreed upon Build Schedules. Jabil shall not, without Company’s prior written approval, procure any electronic components for use in manufacturing the Products: (i) that have a component manufacturer’s date code which is older than 36 months; OR (ii) that were received by Jabil from a source other than the approved manufacturer, or an alternate supplier/authorized distributor, or component not on the Approved Vendor List approved in writing in advance by Company. Jabil shall not, at any time, purchase any components from a non-franchised unauthorized distributor or unauthorized component broker for use in Company’s Products without the express written consent of Company. Jabil shall be responsible for the operational performance management of such in accordance with Schedule 3, SLA and Company shall be responsible for quality of the components and strategic management of the suppliers. Jabil will use Commercially Reasonable Efforts to support supplier quality management through data collection, return material authorizations to suppliers, supplier corrective action response management, and failure analysis follow-up with suppliers. Jabil agrees to pass through any warranty received from component suppliers in accordance with Section 5.2 of this Agreement.