Systematic Failures Sample Clauses

Systematic Failures. If, at any time following delivery of any number of Products, it is discovered that the Products and/or any other previously delivered Products of the same type, bear a repeated and/or predictable defect which in each case (a) cannot be addressed through screening of Products during the Manufacturing process; or (b) which causes the relevant Products to fail or otherwise fails to meet the requirements of the applicable Purchase Order(s), the Specifications and the Product Assurance Plan, as had been sufficiently evidenced by Seller to Buyer namely through Certificates of Conformance, Seller shall: (a) where it has discovered the defect or potential defect, promptly Notify Buyer; (b) conduct, as Seller’s sole risk and expense, transportation included, all necessary investigations to determine: i. whether Products have the relevant defect or otherwise fails to meet the requirements of the applicable Purchase Order(s), the Specifications and the Product Assurance Plan; and ii. the root cause of such defect. (c) promptly suspend delivery of any other deliverable that has or reasonably could have that defect, unless otherwise agreed with Buyer; (d) either replace the deliverable or repair, Buyer indicating its preference for Seller to action accordingly, within the shortest time possible given the type of Defect, such Defect(s) in the Products including hardware and software, and any repair further including any necessary changes to the systems and processes giving rise to that Defect, or update the applicable screening process within the Product Assurance Plan; and (e) on a reasonable endeavours basis, avoid and minimize delays associated with the correction of any such Defect or root cause. Seller, acting reasonably, shall determine if repair or replacement is required to be performed at Seller’s plant. Risk of loss for the applicable Products shall transfer to Seller until such time as the Products are repaired or replaced, and delivered to and accepted by Buyer, to the requirements of the applicable Purchase Order(s), the Specifications and the Product Assurance Plan.

Systematic Failures. 1.14.1 Systematic workmanship failure is defined as: a failure that had been observed in more than 10% of the cards or 0.5% in component level for repeating components failures] and may be caused by a certain fault (not necessarily related to certain location on the inspected item but is characterized by specific irregular repeating failure with same failure type such as shorts, opens, missing screw, electrical etc.) Supplier shall repair systematic workmanship failures and perform, failure analysis & corrective action upon customer request. [*] Confidential information in this Exhibit has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. The systematic failures may be observed at one or more of the working stations in customer process such as: ongoing inspection (for not STS products), mechanical assembly, functional tests, integration tests, HXXX, aging etc. or due to customer complaints. In case of sampling inspection in customer (such as in mechanical assembly), also a screening will be performed by supplier whenever a workmanship systematic failure is observed. Supplier is obliged to response according to the failure severity as following: Critical – Delay in Shipments Repair 1 day Failure Analysis – 15 working days Corrective Action – 17 working days Major – No delay in shipments, but very low yield (more than 10% defects) Repair – 5 working days Failure Analysis – 15 working days Corrective Action – 17 working days Minor –No delay in shipments, low yield (5% to 10%) Repair –10 working days Failure Analysis – 20 days Corrective Action – 25 days