Processing Irregulars Clause Samples

Processing Irregulars. Licensee shall not be responsible for the processing cost of any Processing Irregulars. Additionally, if, in any calendar quarter, the quantity of Processing Irregulars shipped by Buzz Off to Licensee exceeds 2 ½% of the quantity (measured in terms of the number of items processed) of all Products shipped by Buzz Off to or on behalf of Licensee, Buzz Off shall pay to Licensee, within 30 days after the end of such calendar quarter, a sum equal to Licensee's average actual cost of the Raw Products of such Processing Irregulars in excess of such 2 ½ %, which amount will constitute Buzz Off's sole liability to Licensee for Processing Irregulars.