Common use of Production Increases Clause in Contracts

Production Increases. Company may, in writing, request increases in production volume of Product for an outstanding Forecast at any time. Jabil will analyze the request and determine if it can meet the requested increase within the required Lead-time. If Jabil can satisfy the requested increase Jabil will notify Company. If Jabil is unable to satisfy the request due to Component or capacity constraints, or other factors, Jabil will notify Company, and conduct a financial impact analysis to expedite manufacture and delivery of the Products to meet the requested production increase as expeditiously as possible. The financial impact analysis will include, but not limited to, changes to the Product’s price, inbound/outbound shipment costs, additional costs to supplier of Components to accelerate shipments and other material handling and/or production related charges. If the production increase is agreed upon, Company will provide a new PO setting forth the expected delivery date of the changed order. If Jabil is unable to satisfy or comply with Company’s requested increase in production volume within the requested time frame for delivery, Jabil will provide the reasons preventing Jabil from satisfying the requested increase within [****] after receipt of Company’s request, which could be for reasons that include capacity constraints, Component constraints, or any other factors relating to the manufacture of the Products. Any such change shall be documented in a written change order and shall become effective only upon mutual written agreement of both Parties to the terms and conditions of such change order, including changes in time required for performance, cost and applicable delivery schedules. [****].