Engineering Change Orders. “ECO”) (a) SMC may request, in writing, that ABLECOM incorporates engineering changes into the Product and ABLECOM shall execute an ECO or an ECN accordingly. However, if such an ECO will incur additional cost, ABLECOM shall submit to SMC a written estimate that states the cost, time of implementation and the impact on the delivery schedule and pricing within three (3) working days after ABLECOM provides an ECR to SMC. (b) ABLECOM shall carry out ECO or ECN immediately after receipt of ECR from SMC. Where ECO and ECN are issued under reasonable cost and arrangement, SMC shall be liable for all excess inventory provided that ABLECOM notifies SMC of such excess inventory within three (3) weeks of the ECR. (c) If ABLECOM makes any change without an ECO or ECN from SMC, SMC has the right to reject the Product and ABLECOM will be liable for all costs and damages. (d) If SMC requests that ABLECOM deliver the Products without any ECR, ECO or ECN, SMC shall be liable for and agree to pay all the costs and expenses, such as, but are not limited to, rework and transportation cost.
Appears in 3 contracts
Sources: Product Manufacturing Agreement, Product Manufacturing Agreement (Super Micro Computer, Inc.), Product Manufacturing Agreement (Super Micro Computer, Inc.)