Common use of ECOs Clause in Contracts

ECOs. Brocade may, upon advance written notice to Hon Hai, submit engineering change orders ("ECOs") for changes to the Products. ECOs will include documentation of the change to effectively support an investigation of the impact of the engineering change. Hon Hai will review the ECO and report to Brocade within [*] of Hon Hai's receipt of the ECO. If the ECO affects the manufacturing or repair costs of the Products or otherwise affects the price of the affected Products, the parties agree to negotiate in good faith an equitable adjustment to the price of the affected Products prior to implementation of the change. The parties agree that [*] is a reasonable time period to permit Hon Hai to evaluate ECO impact regarding potential excess manufacturing costs and price.

Appears in 2 contracts

Sources: Manufacturing Agreement (Brocade Communications Systems Inc), Manufacturing Agreement (Brocade Communications Systems Inc)