Common use of INSPECTION / ACCEPTANCE AND QUALITY CONTROL Clause in Contracts

INSPECTION / ACCEPTANCE AND QUALITY CONTROL. (a) Sprint may inspect Products according to an agreed upon incoming inspection procedure and rejection rate. Products that fail to meet inspection criteria will be returned to Supplier, at Supplier's expense. Supplier will pay for reshipping conforming Products to Sprint. Sprint may place a hold on all pending Orders until Supplier has demonstrated that the cause for rejection has been corrected. If the cause for rejection is not corrected within 30 days after rejection, Sprint may cancel outstanding Orders without further obligation or liability. Sprint may conduct a site inspection at Supplier's facility during business hours by providing 7 days notice to Supplier. (b) If Supplier becomes aware of any problem with a Product that is of a safety, regulatory compliance, environmental compliance, or serious performance nature, and changes the design or documentation related to the Product, Supplier must implement the change in accordance with Exhibit D. ------------------------- *** Confidential Information has been omitted and filed separately with the Securities and Exchange Commission.