Common use of Engineering Change Orders Clause in Contracts

Engineering Change Orders. McDATA shall provide its Specification(s) and may provide McDATA Process Documentation to SUPPLIER for existing Products. SUPPLIER shall provide to McDATA an ECO Project Plan for Engineering Change Orders (Section 4.6) including without limitation feedback, material and manufacture risk assessment, and suggested improvements in writing as to the Manufacturability of such Engineering Change Orders (ECO). Upon McDATA’s review of such ECO Project Plan submitted by SUPPLIER, and upon mutual agreement and written authorization by McDATA, SUPPLIER shall commence production of the Products implementing the ECO or continue production without implementing such ECO. In the event McDATA instructs SUPPLIER to commence production implementing such ECO prior to mutual agreement of such ECO Project Plan, such commencement does not indicate SUPPLIER’s agreement as to the Manufacturability of such ECO design. If SUPPLIER commences production prior to mutual agreement and/or McDATA’s specific instructions to commence or continue production, and McDATA rejects the finished Product when delivered to McDATA, then SUPPLIER shall bear the production costs associated with that production run. McDATA’s failure to reject such Product shall not invalidate SUPPLIER’s warranty obligations hereunder.