Common use of Type Approval Clause in Contracts

Type Approval. Prior to commencing production of any XM Receivers, Manufacturer will submit to XM for its inspection: (i) three (3) prototypes of each basic model of a receiver that Manufacturer proposes to manufacture (one to XM’s Washington, D.C. facility and two to XM’s innovation center in Florida), so that XM may confirm that such prototype receiver performs in accordance with the XM Format and the Technical Specifications; and (ii) the preliminary design specifications for such receivers, including all circuit diagrams, blueprints (or equivalents thereof), component specifications (if XM requests) and overall specifications of such prototype receiver as it relates to the XM System. If such prototype receiver successfully passes XM’s tests, which will ensure it performs in accordance with the XM Format and the Technical Specifications, it will be qualified as an “XM Receiver” under this Agreement. After a receiver has been qualified as an XM Receiver, only those changes may be made to it that are cosmetic in nature provided that such changes do not affect the XM Marks or the receiver’s function or quality, unless the receiver is resubmitted to XM for testing and XM confirms that this modified receiver continues to qualify as an XM Receiver. All testing will be performed at XM’s then current testing rates. As of the Effective Date, XM’s standard rates are as set forth in Appendix 5, but XM reserves the right to make reasonable changes to its rates without prior notification to Manufacturer.