Common use of Technical Compliance Clause in Contracts

Technical Compliance. The Partner has to comply with all technical regulations, which according to the contractual agreements with the Partner, apply to the Parner´s products(e.g. applicable regulations, policies, laws and technical standart(s), taking into account the fundamental spirit of the perspective regulations. Further, the Partner has to establish adequate structures within his organization to ensure the adherence to all these technical regulations within the product creation phase. Such a system should provide orientation and guidance for the Partners´ employees and consider approriate ethical, integrity and technical compliance standards. The Partner shall comply with and implement the requirements of the VDA - Product Integrity. However, it is left to the Partner to decide, if the Partner implements a Product Safety and Conformity Representative (PSCR) or not. 1. Implementation of precautionary measures in the context of human rightsThe Partner is obligated to establish process for his duty to take due care of the human rights in his company, provided Partner delivers products or provides services, where potential negative effects on human rigts are to be feared in the value-added chain (e.g. risk managment system), and to take systematic and adequate precautionary measures in the context of human rights based on this process. Relevant in this regard are the specifications of the UN Guiding Principles on Business and Human Rights (hereinafter reffered to as „UN Guiding Principles“) as well as the respective relevant OECD Guiding principles and Concepts. In accordance with the UN Guiding Principles, the Partner shall design adequancy and scope of these measures according to the size and sales of its company, the nature of the product or service as well as according to the origin of the product or service and the raw materials contained in it, and particularly according to the associated risks. The Partnes must inform MBCZ unsolicited, about the identified risks and/or mitigating measures and must additionally transfer a documentation of its precautionary measures to MBCZ upon request. MBCZ is entitled to inspect and audit the processes established by the Partner for his duty to take due care of the human rigts, the processes to create transparency as well as the precautionary measures taken by the Partner in the context of human rights or to have them inspected or audited by third party commissioned by MBCZ. MBCZ may use the information and knowledge from these inspections, audits and measures to fulfill statutory obligations, as they exist, for example, in the context of reporting obligations.