Common use of DEVELOPMENT PRODUCTS Clause in Contracts

DEVELOPMENT PRODUCTS. 8.1 The parties recognize that various design change requests ("DCRs"), such as modifications, design changes, redesigns, and manufacturing process improvements may be made to Capstone Special Order PSRs during the term of this Agreement. A) DCRs not affecting the form, fit, function, or safety of Capstone Special Order PSRs and which DCRs do not involve or require increased technical risk, tooling changes, field retrofit, or more than 5% part cost increase ("Type 1 DCRs") may be requested by either party for, approval by the other party, which approval shall not be unreasonably withheld. If the non-requesting party approves such Type 1 DCR, the Capstone Special Order PSRs shall be modified as required to incorporate and implement such Type 1 DCR. B) DCRs relating to new, re-designed, or substantially modified PSRs or DCRs which involve or require increased technical risk, tooling changes, field retrofit, or more than 5% part cost increase, shall be referred to as "Type 2 DCRs". Type 2 DCRs initiated by Solar may be disclosed to Capstone at Solar's sole option and discretion for possible inclusion of Capstone Special Order PSRs incorporating and implementing such Type 2 DCRs under the terms of this Agreement. Type 2 DCRs initiated by Capstone must be promptly disclosed to Solar to allow Solar a right of first refusal to manufacture the resulting new Capstone Special Order PSRs incorporating and implementing such Type 2 DCRs under the provisions of this Agreement. If new Capstone Special Order PSRs are agreed upon under the terms of this sub-paragraph 8.1 (B), the parties shall add such new Capstone Special Order PSRs to this Agreement and update Exhibits A and B as provided for in Paragraph 8.2.

DEVELOPMENT PRODUCTS. 8.1 The parties recognize that various design change requests ("DCRs")**, such as modifications, design changes, redesigns, and manufacturing process improvements may be made to Capstone Special Order PSRs during the term of this Agreement. A) DCRs not affecting the form, fit, function, or safety of Capstone Special Order PSRs and which DCRs ** do not involve or require increased technical risk, tooling changes, field retrofit, or more than 5% part cost increase ("Type 1 DCRs") ** may be requested by either party for, approval by the other party, which approval shall not be unreasonably withheld. If the non-requesting party approves such Type 1 DCR, ** the Capstone Special Order PSRs shall be modified as required to incorporate and implement such Type 1 DCR.** B) DCRs relating to new, re-designed, or substantially modified PSRs or DCRs ** which involve or require increased technical risk, tooling changes, field retrofit, or more than 5% part cost increase, ** shall be referred to as "Type 2 DCRs". Type 2 DCRs ** initiated by Solar may be disclosed to Capstone at Solar's sole option and discretion for possible inclusion of Capstone Special Order PSRs incorporating and implementing such Type 2 DCRs ** under the terms of this Agreement. Type 2 DCRs ** initiated by Capstone must be promptly disclosed to Solar to allow Solar a right of first refusal to manufacture the resulting new Capstone Special Order PSRs incorporating and implementing such Type 2 DCRs ** under the provisions of this Agreement. If new Capstone Special Order PSRs are agreed upon under the terms of this sub-paragraph 8.1 (B), the parties shall add such new Capstone Special Order PSRs to this Agreement and update Exhibits A and B as provided for in Paragraph 8.2.