Common use of Conformance with Specification Clause in Contracts

Conformance with Specification. LEXAR shall deliver to SONY, ------------------------------ upon the request of SONY at reasonable intervals no greater than once per quarter, a reasonable number of random samples of Licensed Memory Sticks manufactured by or for LEXAR (other than by SONY) in order to permit SONY to verify that the Licensed Memory Sticks meet the Memory Stick Specifications. After examining any such Licensed Memory Sticks or any Licensed Memory Sticks sold by LEXAR and purchased by SONY in the market, SONY may notify LEXAR of any failure by LEXAR to conform to the Memory Stick Specifications. If LEXAR continues to sell Licensed Memory Sticks that fail to conform to the Memory Stick Specifications three (3) months after notice from SONY as set forth in this Section 2.6, SONY shall have the right to terminate this Agreement; provided, however, LEXAR shall have the right to dispute SONY's determination under this Section 2.6 by arbitration conducted in San Francisco, California according to the rules of the American Arbitration Association. In the event LEXAR disputes SONY's determination that the LEXAR Memory Sticks fail to conform to the Memory Stick Specifications, LEXAR shall discontinue use of the "Memory Stick" trademark pending resolution of the arbitration. LEXAR's right to arbitration under this Section 2.6 shall only apply to disputes arising under this Section 2.6.