Common use of Epidemic Failure Clause in Contracts

Epidemic Failure. In the event that either party detects evidence of an Epidemic Failure, it shall promptly notify the other party and present such evidence. Upon the giving of such notice by either party, Customer shall have the right, pending correction of the Epidemic Failure as provided herein, to postpone further shipments of the Product to which the Epidemic Failure relates, by giving notice of such postponement to Flextronics. The parties shall work diligently and in good faith together to prepare and implement an agreed upon action plan (“Epidemic Action Plan”) to promptly remedy such Epidemic Failure which may include repair or replacement of affected Products. Customer shall be responsible for the Epidemic Failure including the costs of implementing the Epidemic Action Plan to the extent that the Epidemic Failure: (i) results from Flextronics’s compliance with the Specifications, or (ii) relates to Products shipped more that twenty-four (24) months before the Epidemic Failure occurred (the period up to the end of such twenty-fourth month being referred to as the “Epidemic Failure Period”). Flextronics shall be responsible for the Epidemic Failure, including the costs of implementing the Epidemic Action Plan up to a total amount equal to the cost to repair the defective Product, including freight, plus five percent (5%) of the total amount paid for Products shipped during the Epidemic Failure Period ,to the extent that the Epidemic Failure results from a breach of Flextronics’s warranties under this Agreement even though the period in which to make a warranty claim under Section 6.2(e) may have expired, otherwise Customer shall be responsible for said costs. The parties shall use reasonable efforts to minimize the costs associated with the Epidemic Action Plan.

Epidemic Failure. In the event that either party detects evidence of an Epidemic Failure, it shall promptly notify the other party and present such evidence. Upon the giving of such notice by either party, Customer shall have the right, notwithstanding any other provision of this Agreement, pending correction of the Epidemic Failure as provided herein, to postpone further shipments of the Product to which the Epidemic Failure relates, by giving notice of such postponement to FlextronicsBreconRidge. The parties shall work diligently and in good faith together to prepare and implement an agreed upon action plan (“Epidemic Action Plan”) to promptly remedy such Epidemic Failure which may include recall and repair or replacement of affected Products. Customer shall be responsible for the Epidemic Failure including the costs of implementing the Epidemic Action Plan to the extent that the Epidemic Failure: (i) results from FlextronicsBreconRidge’s compliance with the Specifications, or (ii) relates to Products shipped more that than twenty-four (24) months before the Epidemic Failure occurred (the period up to the end of such twenty-fourth month being referred to as the “Epidemic Failure Period”). Flextronics shall be responsible for the Epidemic Failure, including the costs of implementing the Epidemic Action Plan up to a total amount equal to the cost to repair the defective Product, including freight, plus five percent (5%) of the total amount paid for Products shipped during the Epidemic Failure Period ,to To the extent that the Epidemic Failure results from a breach of FlextronicsBreconRidge’s warranties under this Agreement Agreement, even though the period in which to make a warranty claim under Section 6.2(e) may have expired, otherwise Customer BreconRidge shall be responsible for said coststhe Epidemic Failure, including the costs of implementing the Epidemic Action Plan, up to a total amount equal to the cost to repair or replace the defective Product, including freight, plus the lesser of (i) fifty percent (50%) of the total amount paid for Products to which the Epidemic Failure relates shipped during the Epidemic Failure Period and (ii) $500,000. The parties shall use reasonable efforts to minimize the costs associated with the Epidemic Action Plan.