Beginning on the date of Sega Sample Clauses

Beginning on the date of Sega s acceptance of the Production Version [*], continuing [*] (the "WARRANTY PERIOD"), the [*] Graphics [*], and all Deliverables, portions or components related thereto shall be free of material defects and operate in all material respects in conformance with the Specifications and other requirements of this Agreement (any failure thereof, a "DESIGN DEFECT"). In the event that Sega notifies 3Dfx of any Design Defects, 3Dfx shall use best efforts to diligently correct any such nonconformities by (i) revising the [*] Mask Data Set and providing such revised [*] Mask Data Set to the 3Dfx Foundry and the Sega Foundries, and (ii) providing to Sega software work-arounds or patches for existing defective [*] Graphics [*]s. If, as a result of Design Defects, Sega replaces defective [*], whether in Sega's possession or by recall, 3Dfx shall pay the 3Dfx Foundry or Sega Foundries for all manufacturing and shipping costs in order to deliver to Sega royalty-free, corrected replacements for such [*]; provided, however, that 3Dfx shall have no replacement liability with regard to Design Defects which Sega detected during its testing of the [*] Console internally or by independent prospective and actual software developers for the [*] Console, and which Sega did not report to 3Dfx upon detection. Except as provided above, 3Dfx shall not be responsible for the cost of any product recall, for replacement of defective [*] Graphics [*]s or components thereof, nor for a refund of any royalties paid by Sega. 3Dfx shall not be liable to Sega for manufacturing defects caused by the 3Dfx Foundry or Sega Foundries, nor the costs for any product recall or replacement of any [*] Graphics [*] resulting therefrom. The remedies set forth in this Section shall be Sega's sole and exclusive remedy for Design Defects. *CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
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