Common use of Engineering Changes Clause in Contracts

Engineering Changes. 16.1 Supplier may make Engineering changes to the Product or Spare Parts, or to the production processes used in their manufacture, which would affect the performance, reliability, safety, serviceability, appearance, dimensions, tolerances, firmware/software, or composition of bills of material(s) or material sources thereof in accordance with subsections 16.2 and 16. 16.2 Supplier will notify Netpliance of any Engineering Change proposed to be made by Supplier to the Product, and will supply a written description of the expected effect of the Engineering Change on the Product, including its effect on price, performance, reliability, capability, and serviceability. Netpliance may elect to evaluate parts and/or designs specified as part of the proposed change. Netpliance agrees to approve or disapprove Supplier proposed changes within no more than sixty (60) days of receipt of a written request. Netpliance shall acknowledge receipt of Supplier's proposed change within seven (7) days of receipt. Supplier will not change or modify the Product or Spare Parts without Netpliance prior written approval. Netpliance and Supplier will make best efforts to expedite the turn around on the proposed changes. 16.3 Netpliance may request, in writing, that Supplier incorporate an Engineering Change into the Product, and Supplier will provide to Netpliance its written proposal within ten (10) calendar days after Netpliance's request. Supplier's proposal will state the cost savings or increase, if any, expected to be created by the Engineering Change, and the effect on the performance, reliability, safety, appearance, dimensions, tolerances, composition of bills of material, and serviceability of the Product. If Netpliance requests Supplier to incorporate an Engineering Change into the Product, the product Specification and Price will be amended as required. Supplier will not unreasonably refuse to incorporate Netpliance Engineering Changes into the Product.

Engineering Changes. 16.1 Any change that Supplier may make Engineering changes proposes to the Product or Spare PartsPRODUCT furnished hereunder and the documentation related thereto that would impact upon (a) reliability, (b) the PRODUCT specifications, or to the production processes used in their manufacture(c) form, which would affect the performance, reliability, safety, serviceability, appearance, dimensions, tolerances, firmware/softwarefit, or composition function requires the approval of bills of material(s) or material sources thereof Company, as outlined in accordance with subsections 16.2 and 16. 16.2 Supplier will notify Netpliance of any Engineering Change proposed to be made by Supplier to the Product, and will supply a written description of the expected effect of the Engineering Change on Control Procedures, Appendix 5. Notwithstanding the Productrequirements of Appendix 5, including its effect on price, performance, reliability, capability, and serviceability. Netpliance may elect to evaluate parts and/or designs specified as part any rejection by Company of the proposed change. Netpliance agrees to approve or disapprove a Supplier proposed changes within no more than sixty (60) days of receipt of a written request. Netpliance change to PRODUCT, shall acknowledge receipt of Supplier's proposed change within seven (7) days of receipt. Supplier will not change or modify be reviewed by the Product or Spare Parts without Netpliance prior written approval. Netpliance and Supplier will make best efforts to expedite the turn around on the proposed changes. 16.3 Netpliance may request, in writing, that Supplier incorporate an Engineering Change into the Product, and Supplier will provide to Netpliance its written proposal joint Executive Team within ten (10) working days for concurrence. In the event the Executive Team fails to take action to the satisfaction of both parties within the ten (10) day period, either party may move to mediation as set forth in Section 8.26 MEDIATION of this Agreement. The Supplier shall forward such proposed change to Company at the address in the NOTICES Section, at least thirty (30) calendar days after Netplianceprior to the proposed effective date except for those cases where an extremely unsatisfactory condition requires immediate action, in which case Supplier shall promptly advise Company. Supplier shall at the time of notification, provide Company with (a) a product change number, (b) a description of such change, (c) the reason for such change, (d) a classification of such change in accordance with the change classifications below, (e) a description of the impact of such change upon (1) reliability, (2) the equipment's request. Supplier's proposal will state the cost savings specifications, and (3) form, fit, or increasefunction; (f) proposed price impact, if any, expected for B, and (g) proposed effective date for such change and recommended implementation schedule therefore. Any change in PRODUCT shall be classified into one of the following two classes: "A" Changes which are needed to correct inoperative electrical or mechanical conditions, or extremely unsatisfactory operating maintenance conditions, or conditions which result in safety hazards, and which are judged severe enough to have to be created by made to all PRODUCT in process, stock, or installed. (Any conditional application criteria to be specified in the Engineering Changechange notification document.) "B" Changes which are sufficiently important to justify their application to PRODUCT being manufactured (as soon as reasonably possible), and which are recommended for application to existing installations in the effect on the performancefield. Examples of this class of change may include, reliabilitybut are not limited to: (a) Providing new features that directly affect subscriber service. (b) Providing design improvements which result in better service capabilities, safety, appearance, dimensions, tolerances, composition of bills of material, and serviceability of the Product. If Netpliance requests Supplier to incorporate an Engineering Change into the Product, the product Specification and Price will be amended as required. Supplier will not unreasonably refuse to incorporate Netpliance Engineering Changes into the Productlonger life or improved transmission margins.

Engineering Changes. 16.1 Any change that Supplier may make Engineering changes proposes to the Product or Spare PartsPRODUCT furnished hereunder and the documentation related thereto that would impact upon (a) reliability, (b) the PRODUCT specifications, or to the production processes used in their manufacture(c) form, which would affect the performance, reliability, safety, serviceability, appearance, dimensions, tolerances, firmware/softwarefit, or composition function requires the approval of bills of material(s) or material sources thereof Company, as outlined in accordance with subsections 16.2 and 16. 16.2 Supplier will notify Netpliance of any Engineering Change proposed to be made by Supplier to the Product, and will supply a written description of the expected effect of the Engineering Change on Control Procedures, Appendix 5. Notwithstanding the Productrequirements of Appendix 5, including its effect on price, performance, reliability, capability, and serviceability. Netpliance may elect to evaluate parts and/or designs specified as part any rejection by Company of the proposed change. Netpliance agrees to approve or disapprove a Supplier proposed changes within no more than sixty (60) days of receipt of a written request. Netpliance change to PRODUCT, shall acknowledge receipt of Supplier's proposed change within seven (7) days of receipt. Supplier will not change or modify be reviewed by the Product or Spare Parts without Netpliance prior written approval. Netpliance and Supplier will make best efforts to expedite the turn around on the proposed changes. 16.3 Netpliance may request, in writing, that Supplier incorporate an Engineering Change into the Product, and Supplier will provide to Netpliance its written proposal joint Executive Team within ten (10) working days for concurrence. In the event the Executive Team fails to take action to the satisfaction of both parties within the ten (10) day period, either party may move to mediation as set forth in Section 8.26 MEDIATION of this Agreement. The Supplier shall forward such proposed change to Company at the address in the NOTICES Section, at least thirty (30) calendar days after Netplianceprior to the proposed effective date except for those cases where an extremely unsatisfactory condition requires immediate action, in which case Supplier shall promptly advise Company. Supplier shall at the time of notification, provide Company with (a) a product change number, (b) a description of such change, (c) the reason for such change, (d) a classification of such change in accordance with the change classifications below, (e) a description of the impact of such change upon (1) reliability, (2) the equipment's request. Supplier's proposal will state the cost savings specifications, and (3) form, fit, or increasefunction; (f) proposed price impact, if any, expected for B, and (g) proposed effective date for such change and recommended implementation schedule therefore. Any change in PRODUCT shall be classified into one of the following two classes: "A" Changes which are needed to correct inoperative electrical or mechanical conditions, or extremely unsatisfactory operating maintenance conditions, or conditions which result in safety hazards, and which are judged severe enough to have to be created by made to all PRODUCT in process, stock, or installed. (Any conditional application criteria to be specified in the Engineering Changechange notification document.) "B" Changes which are sufficiently important to justify their application to PRODUCT being manufactured (as soon as reasonably possible), and which are recommended for application to existing installations in the effect on the performancefield. Examples of this class of change may include, reliabilitybut are not limited to: (a) Providing new features that directly affect subscriber service. (b) Providing design improvements which result in better service capabilities, safetylonger life or improved transmission margins. (c) Providing changes in design which result in important cost savings to Supplier or Company. (d) Conditions of a mandatory nature, appearance, dimensions, tolerances, composition of bills of material, and serviceability of the Product. If Netpliance requests Supplier to incorporate an Engineering Change into the Productfor example, the product Specification and Price will fulfillment of federal registration or future compatibility requirements, or for conditions of sufficient importance to be amended intended for universal application (change to be shown as required. Supplier will not unreasonably refuse to incorporate Netpliance Engineering Changes into the Product"recommended").