Common use of Epidemic Failure Clause in Contracts

Epidemic Failure. In the event that 5% or more of the shipments received by Tellabs during any 30 day period are defective, an Epidemic Failure situation will be deemed to exist. In such case, at Tellabs' option, Riverstone will be obligated to replace 100% of that shipment and will bear all costs associated with the field replacement of such units.