Common use of RESOLUTION AGREEMENT Clause in Contracts

RESOLUTION AGREEMENT. In the event that any of the above two metrics set forth in Section 23.4 are violated, a CFO level conference may be required, at Jabil’s sole and absolute discretion, to discuss and develop an acceptable solution to bringing the Company back in compliance with targeted financial ratio. The Company will have the opportunity to provide information supportive of this compliance issue and shall be allowed [***] days from the last reported period to meet the guidelines set forth previously. In the event that at the end of the next reportable period the Company is still not in compliance, Jabil will require a CFO level discussion with the Company with the intention of reducing the working capital requirements to a more suitable level. The Company will have the ability to propose a suitable solution to both parties, such solutions may include: shortening of terms in order to reduce AR, converting a portion of the inventory to consignment by the Company, or some form of cash deposit or letter of credit to reduce exposure levels. If at any time, the Company does not provide a suitable solution, Jabil may, at its sole discretion, require that some of the previous steps be taken in order to continue with the flow of business activity. Once the Company has returned to compliance for a period of [***], business can return as originally established. [***] Information has been omitted and submitted separately to the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.