Designated Foundry Clause Samples
The "Designated Foundry" clause identifies a specific manufacturing facility or supplier that is authorized to produce certain goods or components under the agreement. This clause typically outlines which foundry is approved, the scope of products it may manufacture, and any conditions or standards that must be met. By clearly specifying the foundry, the clause ensures quality control, streamlines supply chain management, and prevents unauthorized production, thereby reducing risks related to quality, intellectual property, and fulfillment.
Designated Foundry. After MTI provides written notice to NetLogic of its bona fide intent to purchase a Type I Product from a Designated Foundry, then (i) NetLogic will inform the Designated Foundry of MTI’s license rights under this Agreement within five (5) business days after Tape Out of such Type I Product, in order for MTI to procure the Type I Product from such Designated Foundry; and (ii) NetLogic shall use commercially reasonable efforts to assist MTI so that MTI can obtain the Type I Product from the Designated Foundry on terms similar to those obtained by NetLogic taking into account volumes of product purchased by each of the Parties, including jointly negotiating with the Designated Foundry to achieve optimal pricing taking into account total respective volumes of products; however, if MTI cannot purchase the Accepted Type I Product from the Designated Foundry on terms similar to those obtained by NetLogic taking into account volumes, MTI may elect to procure such Product directly from NetLogic as identified in Section 3.6 below. Once MTI has made such election, MTI shall only purchase such Type I Product pursuant to Section 3.6 unless mutually agreed otherwise.