Common use of Custom Product Development Clause in Contracts

Custom Product Development. 3.1 Mobility agrees to use commercially reasonable efforts to develop any Custom Product (including, without limitation, power or docking station products) requested in writing by Targus, subject to the remainder of this Section. Any Custom Product shall be developed and manufactured pursuant to the terms and conditions of this Agreement (including, without limitation, Section 3.2 below). In addition, prior to commencing the development of any Custom Product, the Parties shall have mutually agreed to a development program schedule, NRE and Tooling Charges, quantity purchase minimum and a PO lead time, which agreement shall be in writing in the form of Attachment 3 to this Agreement. Mobility agrees that it will not market or sell any Custom Product to any person or entity other than Targus. 3.2 Targus agrees that at the time Mobility begins to develop a Custom Product, Targus will place a separate PO for NRE and Tooling Charges for such Custom Product, with the terms of such PO being fifty percent (50%) due and payable upon placement of the PO, and the remaining fifty percent (50%) due and payable upon approval of first article. 3.3 Targus hereby agrees that Mobility shall be the exclusive manufacturer and supplier to Targus of the Products, subject to Section 6.1 below. Any material changes to any Custom Products will require the written consent of both Parties pursuant to an amendment to Attachment 2 or 3 (as applicable). Mobility agrees to use all commercially reasonable efforts to incorporate into the Products any changes reasonably requested by Targus, which changes shall be incorporated as soon as practicable after an amendment to Attachment 2 or 3 (as applicable) has been executed by the Parties setting forth such change, as well as the affect, if any, on the purchase price of such Product.