Excessive Failures Sample Clauses

Excessive Failures. 2.1 If an Excessive Failure (as defined below) occurs, the Supplier will, within thirty (30) days after GE submits its reimbursement claim, reimburse GE for its reasonable direct expenses incurred in repairing or replacing the affected Wire Harness (including reasonable expenses incurred by GE for labor, materials, and travel time) in the quarter in which the Fault Call Rate (as defined below) exceeds [*]. 2.2 The Fault-Call Rate for a particular appliance model will be calculated by computing the quality percentage equal to (x) the actual number of service calls for a given quarter of manufacture divided by (y) the total number of appliances installed for the same quarter of manufacture. An "Excessive Failure" will have occurred in the case of any Wire Harness, if, during the initial 12-month period of actual consumer usage or within twenty-four (24) months from the date of manufacture, the Fault-Call Rate for a particular model of Wire Harness manufactured within a particular production quarter exceeds [*] percent regardless of the component or part involved. 2.3 For purposes of determining whether an Excessive Failure has occurred with respect to a particular Wire Harness, only those service calls requiring replacement or adjustment of Wire Harnesses because of manufacturing defects will be considered. Specifically excluded will be repeat calls required because necessary parts are not on the service truck, calls related to installation or customer education, calls made to generate good will, and other concessionaire types of calls. The Supplier will have no obligation for defects in Wire Harnesses resulting from (i) unforeseeable misuse, abuse, negligence or accident, or improper installation or service or service maintenance; (ii) transportation of Wire Harnesses; (iii) improper storage of Wire Harnesses; or (iv) improper design by GE. 2.4 In no event shall any fault-call be counted in a computation of an Excessive Failure to the extent that such fault-call relates to Wire Harnesses manufactured prior to the Effective Date.