Asset Management Manual for Inactive Assets

ASSET MANAGEMENT MANUAL FOR INACTIVE ASSETS

WHEREAS

WHEREAS, Company Name: (the "Company") maintains an inventory of corporate assets, and requires standardized procedures for management of inactive assets to protect value, comply with applicable obligations, and limit risk; and

WHEREAS, Service Provider / Administrator Name: (the "Administrator") is engaged to manage identification, safeguarding, storage, disposition, and recordkeeping for inactive assets in accordance with this manual and applicable law; and

WHEREAS, Effective Date: this Manual establishes the policies, controls, responsibilities, and procedures governing inactive assets subject to Company oversight.

1. PURPOSE AND SCOPE

This Manual sets forth standardized processes for identification, inventory, custody, storage, maintenance, tracking, reporting, and disposition of inactive assets. It applies to all tangible and intangible assets that are no longer in active operational use but remain the legal property of the Company, including but not limited to equipment, hardware, spare parts, prototype items, and archived digital media.

2. DEFINITIONS

"Inactive Asset" means any asset identified by the Company as not currently assigned to active operational use for a continuous period exceeding the designated inactivity threshold set by the Company.

"Custodian" means the individual or organizational unit assigned responsibility for physical or electronic custody of an inactive asset.

3. ASSET CLASSIFICATION AND INVENTORY

The Company shall classify inactive assets by category, criticality, estimated residual value, and storage requirements. Custodians must record each inactive asset in the Inactive Asset Register with the required metadata below.

4. CUSTODY, STORAGE, AND MAINTENANCE

Custodians shall ensure secure storage appropriate to asset type, limit access to authorized personnel, perform periodic condition assessments, and record maintenance or environmental events that could affect asset integrity. Storage must be logged in the Inactive Asset Register and reconciled at least once per quarter.

5. DISPOSAL AND REACTIVATION PROCEDURES

Disposal or reactivation decisions require documented authorization. Disposal must follow a documented chain-of-approval and be executed to preserve legal and environmental compliance. Reactivation requires condition verification, data sanitization where applicable, and reinstatement to the active-asset register.

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6. RECORDKEEPING AND REPORTING

The Administrator shall maintain an Inactive Asset Register that records identifier, description, custody, location, condition assessments, disposal authorizations, chain-of-custody records, and disposition outcomes. Quarterly reports shall be provided to the Company’s Asset Stewardship Committee and retained for the longer of the retention period or any applicable statutory requirement.

7. ROLES AND RESPONSIBILITIES

The Company retains ultimate accountability for asset stewardship. The Administrator shall perform day-to-day management functions. Custodians are responsible for individual asset custody and timely reporting of changes in asset status. The Asset Stewardship Committee will approve major disposition actions and review compliance.

8. SCOPE OF WORK

The Administrator’s scope shall include identification and tagging of inactive assets, secure storage and environmental controls where required, periodic inspection, maintenance where necessary to protect residual value, preparation of disposition recommendations, coordination of disposition actions, and maintenance of complete records in the Inactive Asset Register.

9. PAYMENT TERMS

In consideration for the Administrator’s services under this Manual, the Company shall pay fees in accordance with the terms below. All payments are subject to standard invoicing and approval procedures.

10. TERM AND TERMINATION

This Manual is effective as of Effective Date: and shall remain in effect until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Manual for convenience by providing written notice to the other party at least Notice Period: prior to the intended termination date. Termination for cause is permitted if the other party materially breaches any obligation and fails to cure within thirty (30) days after receipt of written notice; nonpayment when due constitutes a material breach.

11. CONFIDENTIALITY

Each party shall maintain as confidential all nonpublic information obtained in connection with the Administrator’s performance under this Manual, including asset registers, disposition plans, and valuation data (collectively, "Confidential Information"). Confidential Information shall not be disclosed except as required by law or to persons with a need to know in performance of this Manual and who are bound by confidentiality obligations at least as protective as those set forth herein. Confidentiality obligations shall survive termination for a period of five (5) years or for such longer period as required by applicable law.

12. GOVERNING LAW

This Manual and any disputes arising under it shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles.

13. ENTIRE AGREEMENT

This Manual constitutes the entire agreement between the Company and the Administrator regarding the subject matter hereof and supersedes all prior or contemporaneous representations, agreements, and understandings, whether written or oral, relating to inactive asset management, except for any separate written service agreement executed by the parties that expressly references and incorporates this Manual.

14. REVIEW, AMENDMENT, AND COMPLIANCE

The Asset Stewardship Committee shall review this Manual at least annually and may amend this Manual by written instrument signed by authorized representatives of both parties. Amendments related to operational procedures may also be documented by the Administrator and submitted for Committee approval.

By checking the box below, the Administrator acknowledges receipt of this Manual, confirms familiarity with its provisions, and agrees to comply with its terms.

Administrator acknowledges receipt and will comply with the Manual

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