Engineering Change Order (ECOl Sample Clauses

Engineering Change Order (ECOl. 17.1 An Engineering Change Order (“ECO”) is required when the form, fit or function of the design of the Product and/or Specifications are affected. Kornit may request that Sanmina incorporate engineering changes into the Product or Specifications by providing a written description of the proposed engineering change sufficient to permit Sanmina to evaluate the feasibility and cost of the proposed change. 17.2 Sanmina will provide a written response in the form of an “Engineering Change Analysis” to Kornit if such changes affect the per/unit price and/or delivery of a Product, within ten (10) Business Days. The Engineering Change Analysis cost impact shell be written directly in Kornit ERP system (Priority) in addition to a formal ECO breakdown indicate the implication and the cost changes per line item (Scrap, Rework etc.). 17.3 Kornit will respond with a written acceptance or rejection of the Sanmina “Engineering Change Analysis” within three (3) Business Days. Sanmina will not implement the change to the design or Specifications of any Product or materials, equipment, manufacturing and quality assurance procedures, methods and techniques used to produce a Product, without Kornit’s prior written approval. 17.4 Sanmina will implement any ECO at the date mutually agreed between the Parties, provided that the Parties have agreed upon the changes to the Specifications and delivery schedule. 17.5 The cost of Inventory that becomes unusable because of an ECO and any other agreed implementation costs will be the responsibility of Kornit. Such responsibility shall be supported by documentation provided by Sanmina. The settlement between the Parties regarding such costs shall be made on a quarterly basis. 17.6 Kornit will issue a PO for the related costs plus material overhead ([***]%) of the ECO such as dead stock, SCRAP, within 25 Business Days of Kornit approval.