Common use of Costs of Epidemic Failure Clause in Contracts

Costs of Epidemic Failure. Subject to the liability exclusions and limitations set out in Section 22 (Limitation of Liability), Supplier will compensate Cisco for all reasonable, direct costs incurred by Cisco or its Authorized Purchasers in rectifying any Epidemic Failure. The parties acknowledge and agree that such reasonable direct costs shall be limited to: (a) the cost of replacement Products and/or subassemblies and repair materials, (b) the costs relating to communications to Cisco customers and channels of distribution regarding (i) the Epidemic Failure, (ii) its effect and (iii) the corrective/remediation process with respect to Products; (c) the cost of returning affected Products and/or subassemblies, (d) labor and travel costs relating to removing or repairing the affected Products and/or subassemblies, and installing replacement Products and/or subassemblies into, the applicable Cisco products wherever located, (e) the cost of shipping replacement Products and/or subassemblies, and (0 costs incurred by Cisco and its Authorized Purchasers for retooling, remanufacturing, retesting or recalibration as a result of such Epidemic Failure.