diagnosing and addressing the problem and will be responsible for all costs incurred by Flextronics and its customers in rectifying
such failures, including, without limitation, for engineering changes, testing and field-recovery costs, as well as for all
damages.
8. ITEMS FURNISHED BY FLEXTRONICS. Unless otherwise specified by Flextronics in writing, all designs, tools, patterns, drawings,
data, materials, and equipment supplied to Seller or paid for by Flextronics shall remain the property of Flextronics, shall be
used only for making the Goods or performing the Services for Flextronics, shall be insured by Seller at replacement value, and
shall be returned to Flextronics in good condition upon completion of this Order. Seller assumes all responsibility for the
accuracy of tooling used in the production of the Goods or performance of Services, whether such tooling is fabricated by Seller or
furnished by Flextronics.
9. INDEMNITY. Seller agrees to indemnify, defend and hold Flextronics and its customers harmless from and against any and all
claims, actions, losses, expenses, damages, penalties, fines, liabilities and settlements arising from any actual, alleged or
threatened third-party claims relating to (a) any infringement, misappropriation or violation on the part of Seller s Goods or
Services of any third party s patent, copyright, trade secret, mask work, trademark, trademark rights or any other intellectual
property right, (b) personal injury or property damage caused by the Goods or Services, (c) defects in the Goods or Services which
amount to a breach of Seller s warranties in Section 7 or 15; (d) breach of Section 16, or (e) as a result of any negligent or
reckless act or willful misconduct of the Seller.
10. CHANGES. Flextronics may, by purchase order amendment issued to Seller, change (a) the method of shipment or packing, (b) the
drawings, designs, or specifications, (c) the place of delivery, or (d) the shipment date. Seller shall promptly inform Flextronics
of any modifications to the delivery schedule necessitated by the changes. If any Goods are designated
non-cancelable/non-returnable ( NCNR ), Flextronics may reschedule the delivery of any NCNR Goods at any time up to the time of
shipment for a period of up to ninety (90) days beyond the delivery date, and Flextronics shall not have any liability for any
costs associated with such rescheduling. Within three (3) days from receipt of a purchase order amendment, Seller shall notify
Flextronics in writing of any increase or decrease in the cost of performance caused by a purchase order amendment and provide
supporting documentation. Flextronics shall make an equitable adjustment in the Order to reflect valid cost variances due to the
changes requested by Flextronics. Seller shall advise Flextronics in writing of any foreseeable part shortages, and shall advise
Flextronics not less than one (1) year in advance of any changes that might affect Seller s ability to accept Flextronics purchase
orders.
11. TERMINATION AND REMEDIES. Flextronics may terminate this Order in whole or in part at any time by written notice to Seller,
even Orders in which Goods are designated as NCNR. Seller will thereupon immediately (a) stop work on the cancelled Goods or
Services; (b) notify its subcontractors to do likewise; (c) cancel orders for components for the cancelled Goods or Services; (d)
return unneeded components for cancelled Goods to their suppliers or divert such components to jobs for other customers; and (e)
otherwise mitigate all non-returnable, unneeded components for cancelled Goods or Services. Seller shall not be entitled to
compensation for cancelled Goods. Except for termination due to default or delay of Seller, Seller shall be entitled to
commercially reasonable compensation for NCNR Goods on hand at the termination date as follows: Flextronics will purchase (a)
finished Goods at the Order price, (b) work-in-process Goods at a reasonable pro-rata percentage of the finished Goods Order price
and (c) custom components for the cancelled Goods, which Seller properly ordered and was not able to cancel, return, or otherwise
mitigate using diligent efforts within ninety (90) days after cancellation, at Seller s cost for such custom components. The total
compensation paid by Flextronics for such cancellation shall not exceed the price on the Order for the cancelled Goods. In the
event that Flextronics breaches its obligations under this Order, and fails to cure within a commercially reasonable time after
receiving written notice of such default, Seller s sole and exclusive remedy shall be to receive direct damages for the Goods in
question as if such Goods were cancelled, computed in the manner set forth in the fourth sentence of this section. In no event
shall Seller be entitled to indirect, incidental, consequential, special, or punitive damages or loss of profit, for Flextronics s
breach of the terms and conditions of this Order, or for any other act or omission occurring as a result of Flextronics breach of
its performance obligations under this Order.
12. WAIVER. No claim or right arising out of the breach of this Order by Seller can be discharged by a waiver of the claim or right
by Flextronics unless the waiver is supported by consideration and is in writing signed by Flextronics.
13. ASSIGNMENT. Seller shall not assign its rights or obligations under this Order without the advance written consent of
Flextronics. Flextronics may assign its rights under this Order to a subsidiary or affiliate upon written notice to Seller.
14. CONFIDENTIALITY. Neither party shall, without first obtaining the other s written permission, advertise, publish, or disclose
the terms, details, pricing or specifications of this Order, the amount of revenue generated or to be generated from this Order,
nor will either party communicate the fact that Seller has furnished or has contracted to furnish Flextronics with the Goods or
Services. Both parties agree to maintain in confidence those materials and information either has designated as being confidential
or proprietary information.
15. QUALITY REQUIREMENTS. Seller shall comply, and shall cause all Goods and Services to comply, with all applicable quality
requirements set forth at http://www.flextronics.com/supplier/supplierquality/default.aspx, which are incorporated into this Order.