Common use of Material Procurement Clause in Contracts

Material Procurement. 1. In principle, Party B shall undertake the supplier development and management of the Products under its own responsibility, including the design and development of parts, commercial procurement, quality management, after-sales service, etc. In respect of the 3C and other key parts jointly determined by both parties, Party A and Party B will sign a tripartite purchase contract with the supplier in accordance with the requirements of Party A’s quality management system. The management content includes but is not limited to supplier qualification review, sample appraisal, small batch appraisal and PPAP review. 2. Party A and Party B jointly negotiate to determine the purchasing method of parts, accessories and other materials (hereinafter referred to as “Materials”) required for the production of the Products. Among them, Party A is responsible for purchasing certain Materials, Party A purchases certain Materials from Party B, and both parties jointly purchase key parts and 3C parts. The specific purchase list will be discussed and determined by both parties separately. 3. Party B warrants that the Materials provided to Party A meet the requirements of Party A’s quality inspection standards, comply with relevant national and industry standards, have manufacturer’s product identification and quality inspection certificate, and will be equipped with the “Three Guarantees” of Party B. 4. The specific matters concerning the purchase of Materials by Party A from Party B shall be agreed upon by both parties in a separate agreement on the purchase of the Materials for the Products.