Common use of Pass-through of Liquidated Damages from Customers Clause in Contracts

Pass-through of Liquidated Damages from Customers. In the event Flextronics fails to meet its obligations for a specific order, and as a result Nortel Networks is required to pay liquidated damages to its Customer, Nortel Networks shall be entitled to receive from Flextronics an amount representing [•] imposed on Nortel Networks by the Customer. In the event that Flextronics is required to pay liquidated damages under this Section 9.1.3, the order(s) against which damages were assessed shall not be used in the calculation of whether Flextronics has met a relevant metric under Section 9.1.2.