Cumulative Correction. Upon written approval by Customers, and mutual agreement by the Parties as to scope and schedule, such approval not to be unreasonably withheld, in lieu of the provisions of Section 4.3.1, Contractor shall be entitled to cumulate the corrections of nonconformance for more than one Key Milestones into one new hardware and/or new software release, as long as such cumulative corrections will not delay the final Milestone according to the Milestone Plan (“Cumulative Correction”). In case of a Cumulative Correction of a Key Milestone(s) that is/are accepted by Customers, such Key Milestone(s) will be deemed accepted. For the avoidance of doubt, nothing in this paragraph shall be construed to limit Contractor’s obligations for liquidated damages as set forth in Exhibit C for (i) Delay in delivery after the scheduled delivery date of the Cumulative Correction, or (ii) non-conformance of a Cumulative Correction. Should Contractor be unable to remedy the nonconformance in accordance with either Section 4.3.1 or Section 4.3.2, the Parties shall consult forthwith in good faith to determine the timing and delivery by Contractor of the replacement of the SDR-BB with a hardware based implementation of a baseband consisting of terrestrial and satellite functionality complying with the Specification set forth in the applicable Exhibit Set. For the avoidance of doubt, nothing in this paragraph shall be construed to limit Contractor’s obligations for liquidated damages pursuant to Section 4.3.1 or Section 4.3.2. Subject to Customer’s applicable termination rights according to Section 16.1.2 (c), this shall be the sole and exclusive remedy for Customers in case of Contractor’s nonconformance with the Exhibit Set as described in this Section 4.3.
Appears in 2 contracts
Sources: Contract for Design and Development (Terrestar Corp), Contract for Design and Development (Skyterra Communications Inc)