EOL of Sourced Components Sample Clauses

EOL of Sourced Components. When dealing with vendors, MiTAC must make regular enquiries as to the dangers of obsolescence in respect of the Components, and immediately forward the information to Hypercom so that any potential risks may be considered and managed. As a result, MiTAC agrees to use diligent efforts to ensure that any Component used in the design and manufacture of a Finished Product does not have a foreseeable EOL that occurs prior to the end of the projected Finished Product's life. Subject to its compliance with any applicable confidentiality obligations, MiTAC will provide Hypercom with copies of preliminary specifications, working drafts of specifications and completed portions of specifications pertaining to the Components throughout the Term. MiTAC will use its best efforts to negotiate appropriate terms with vendors. When it is completed, MiTAC will promptly provide Hypercom with a copy of the final specification for any Component. Notwithstanding the above, [****]. MiTAC shall promptly notify Hypercom in writing whenever a vendor announces LBO. In such case, MiTAC will investigate alternative solutions (e.g. negotiate with vendor extended lifetime of components, search for alternative components, product re-design) and present options to Hypercom. LBOs may not be placed by MiTAC without Hypercom’s prior written agreement. Such LBO will enter the overall Component stock maintained by MiTAC. Hypercom and MiTAC shall work in a cooperative effort to determine the most economical order quantity for purchase by Hypercom and subsequence consignment to MiTAC of Components. Hypercom and MiTAC shall also work in a cooperative effort to weigh such factors as cost to manufacture, component and material availability and inventory carrying costs in order to determine when to make LBOs.
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