Common use of Failure Rate Clause in Contracts

Failure Rate. A "Failure Rate" shall mean the cumulative percentage ------------ of Defective Products shipped under a Product Addendum in relation to the total Products shipped under that Product Addendum. ODM and EMACHINES acknowledge that a Failure Rate set forth in a Product Addendum is expected by the Parties. If the actual Failure Rate for Products exceeds the expected rate, ODM shall provide EMACHINES with a root cause analysis and a corrective action plan within ten (10) working days after the occurrence of such failure.

Failure Rate. A "Failure Rate" shall mean the cumulative percentage ------------ of Defective Products shipped under a Product Addendum in relation to the total Products shipped under that Product Addendum. ODM and EMACHINES acknowledge that a Failure Rate set forth in a Product Addendum is expected by the Parties. If the actual Failure Rate for Products exceeds the expected rate, ODM shall provide EMACHINES with a root cause analysis and a corrective action plan within ten (10) [*] working days after the occurrence of such failure.