3.16 Advance Notice of Material Changes. Vendor shall notify Lowe’s in advance of any proposed changes in Products that would materially alter the nature, qualify, durability, size, composition, style, performance, functionality or character of such Products. Moreover, if any proposed material change will affect Products subject to an existing Purchase Order, Lowe’s receipt of Vendor’s advance notice of the proposed material change in the Product shall, without limiting Lowe’s rights under the “Cancellations” Section, result in Lowe’s ability to cancel the subject Purchase Order without recourse to Vendor. In addition, Vendor shall provide Lowe’s at least thirty (30) days prior written notice of any proposed changes in Vendor’s premises or any premises used in the production, supply and/or distribution of Products after the Effective Date. Failure to provide Lowe’s with such notice may result in immediate suspension of business with Vendor, without the need for Lowe’s to give any prior notice to Vendor, in addition to, and not to the exclusion of, any and all other rights and remedies available to Lowe’s as set forth in this Agreement.3.17 Facility Inspection. Lowe’s and its agents shall have the authority to enter upon Vendor’s premises or any premises used in the production, supply or distribution of Products for the purposes of inspection for determining compliance with the terms of this Agreement. This right to inspection includes, but is not limited to, the right to inspect the workforce, employee records, equipment, production runs or the procedures used by Vendor in manufacturing or having manufactured Products to assure compliance with Vendor’s obligations under this Agreement or any pertinent laws, orders or decrees applicable to Lowe’s, Lowe’s customers and any Product. In the event that Vendor is not in complete control of the premises in question, Vendor agrees that it will obtain all necessary and proper consents that will allow Lowe’s and its agents to exercise the rights set forth in this Section. Vendor will produce such consents upon request by Lowe’s or its agents. Neither inspection by Lowe’s nor the lack of any such inspection shall alleviate Vendor’s obligation to comply with all Applicable Laws and Standards, orders or decrees or be viewed as Lowe’s acquiescence to any non-compliance by Vendor.3.18 Export Administration. Upon Lowe’s request, Vendor will promptly provide all applicable Export Administration Regulation product classifications and supporting documentation for the Products, including, without limitation: Certificates of Origin (General Use, NAFTA, and/or other trade agreement(s)), Export Control Classification Numbers (“ECCN’s”), U.S. Customs Classification number, export license information, and “Schedule B” (export) and Harmonized Tariff Schedule (import) codes.
3.19 Quality Management System (“QMS”). In addition to all other obligations existing between Vendor and Lowe’s, Vendor agrees that Lowe’s may, in its sole and absolute discretion and as long as Lowe’s or its Affiliates are purchasing or acquiring Products 9r services from Vendor, designate Vendor as a “QMS Vendor”. In the event Lowe’s designates Vendor as a QMS Vendor, Vendor will, at Vendor’s sole cost and expense, either: a) provide (i) Lowe’s with satisfactory written confirmation that Vendor has a QMS in place at each Facility, hereinafter defined, involved in the supply of Product to Lowe’s that meets at a minimum, the requirements of Lowe’s QMS requirements, and (ii) with a current copy of such QMS documentation and a list of each Facility referenced therein; or b): immediately implement a QMS at each Facility and provide Lowe’s with a current copy of such QMS documentation and a list of each Facility referenced therein. Lowe’s, in its sole discretion, reserves the right to accept Vendor’s QMS in lieu of Lowe’s QMS. Vendor agrees that the independent third-party testing agency used to obtain any QMS Registration will be selected from a list of acceptable third-party testing agencies provided by Lowe’s to Vendor. “Facility” shall be broadly defined herein to include any and all facilities, whether owned, operated, and/or controlled by Vendor or a third-party which has been used by Vendor (or any third-party at Vendor’s direction) to provide Products to Lowe’s. Should Vendor fail to fully perform all obligations contemplated or arising from its designation as a QMS Vendor, in addition to any other rights and remedies Lowe’s may have, Lowe’s may immediately terminate its obligations under any agreement with Vendor.
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