Common use of Safety Standard Changes Clause in Contracts

Safety Standard Changes. Supplier will immediately give notice to Philips if any upgrade, substitution or other change to an OEM Product is required to make that product meet applicable safety standards or other governmental statutes, rules, orders or regulations, even those that are not defined as Engineering Changes is Section 7.1 above. All affected OEM Products already purchased by Philips may, at Philips' election, either be returned to Supplier for upgrade to current revisions or upgraded by Philips in the field pursuant to the procedures outlined in Section 10.7 below. If an OEM Product meets applicable safety standards and other governmental requirements at the time of manufacture, Supplier will absorb the costs of any subsequent upgrade; substitution or other required change between the parties. If such discussions render no equitable solution, the parties may either mutually agree to escalate the matter to their respective vice presidents or general managers, as applicable, or in the alternative, divide the costs equally between them.