Common use of Engineering Change Orders Clause in Contracts

Engineering Change Orders. Blue Coat may change the Specifications for a Product at any time. In the event that Blue Coat makes such changes, Blue Coat shall issue an engineering change order in writing to Synnex specifying the change in design, manufacturing process or installation and engineering specifications (“Engineering Change Order”). Within five (5) days of receipt of an Engineering Change Order, Synnex shall provide a written acknowledgement (“Acknowledgement”), including a proposed schedule to implement such changes or additions, an estimate of the cost to implement such changes or additions and the costs associated with the Obsolete Components. Blue Coat shall review such proposed schedule and estimates and either accept or reject the Acknowledgement. If Blue Coat accepts the Acknowledgement, Blue Coat shall pay Synnex the amounts specified in the Acknowledgement. Notwithstanding the above, Blue Coat shall not be responsible for reimbursing Synnex for Obsolete Components that were purchased outside of the Total Lead Time necessary to meet the Forecasts (defined below).