Common use of Production capability Clause in Contracts

Production capability. The Parties acknowledge that it is the current contemplation of Nokia, subject to a successful outcome of Development, to use and/or sell the Product(s) in certain volumes and that, consequently, production capability and cost effectiveness of the Product(s) are critical factors for the successful completion of Development. Developer shall ensure that it is, upon the issuance of Certificate of Final Acceptance, able to manufacture and deliver to Nokia Product(s) in the quantities specified in the Appendix 5 - (Business Model incl. Pricing) or Purchase Agreement. For avoidance of doubt it is agreed, that this Agreement constitutes no obligation whatsoever for Nokia to purchase any Product(s) or other items from Developer. Developer warrants that, in the absence of Nokia's clear written instructions to the contrary, it shall maintain the manufacturing process for the Product(s) or the capacity to promptly implement such process at least until [*] years have passed from the beginning of the deliveries of Product(s) under the Purchase Agreement. Developer shall prepare a documented production recovery plan as set out in Appendix 2, which shall define in detail, how Developer has arranged the recovery from any incidents affecting any production lines or plants related to production of Product(s). Upon request, Developer shall promptly provide Nokia with a copy of said recovery plan. Upon reasonable notice by Nokia and within Developer's business hours, Developer shall further allow Nokia and/or its authorized representative to audit the risk management systems of Developer. Developer shall promptly implement all reasonable instructions given by Nokia with respect to Developer's Product-related production recovery plan and risk management systems.

Appears in 2 contracts

Sources: Development Agreement (Endwave Corp), Development Agreement (Endwave Corp)