Probation Status. If Supplier cannot initially meet the Quality Target (based on validated failure data), then Supplier will be placed on Probationary Status. Supplier shall develop and implement a Continuous Quality Improvement Plan for the Product which will achieve the Quality Target in no more than a six (6) month period of time. If Supplier fails to meet the Quality Target during such period, InFocus shall have the right (but not the obligation) to cancel the Agreement and outstanding Purchase Orders shall remain in place with Supplier providing targeted screening of Products (pipeline inventory and/or other sites as designated by InFocus) delivered to InFocus so that InFocus will have no liability for specific Products which do not meet the Quality Target.Epidemic and Catastrophic failures are as defined in Exhibit H.
Appears in 2 contracts
Sources: Manufacturing and Supply Agreement, Manufacturing and Supply Agreement (Infocus Corp)