Common use of Catastrophic Failure Clause in Contracts

Catastrophic Failure. Vendor agrees to reimburse Cingular for [***] when the failure rate(excluding no-fault-found returns) exceeds [***] per year. The failure rate shall be computed every quarter, using 3 months rolling average method based upon actual date of failure. The reimbursement will start when the three months rolling average exceeds [***] over two consecutive quarters and it will continue until such time that the failure rate falls below [***] over any three month period. Cingular agrees that [***].

Catastrophic Failure. Vendor agrees to reimburse Cingular for [***] when the failure rate(excluding no-fault-found returns) exceeds [***] per year. The failure rate shall be computed every quarter, using 3 months rolling average method based upon actual date of failure. The reimbursement will start when the three months rolling average exceeds [***] over two consecutive quarters and it will continue until such time that the failure rate falls below bellow [***] over any three month period. Cingular agrees that [***].