Failure Rate. Notwithstanding that the warranties given in Section 9.1 above apply to 100% of OEM Products, Supplier and Philips acknowledge that the OEM Products are software based and it is expected that defects will be addressed through software patches designed to be installed directly by the Customers. Any defects that prohibit the normal use of the OEM Products, as defined, or that require significant workarounds must be addressed in a timely fashion, free of charge to all Customers for the life of the OEM Products. A failure rate (as defined in Section 2.4) of [****]% per year or less is expected. If the actual failure rate for OEM Products exceeds this expected rate, Supplier will provide additional engineering and technical support as needed to bring the actual failure rate within the specified failure rate. Supplier and Philips will review this data quarterly. Complete documentation (as attached to Exhibit D), and reporting of product failures, service, repair, and any RMA documentation shall be reported monthly to Supplier as per Supplier's written requirements. Defective materials, parts shall be returned with documentation monthly by the tenth of each month to Supplier for ongoing Quality Improvement initiatives.
Appears in 2 contracts
Sources: Oem Purchase Agreement (Biotel Inc.), Oem Purchase Agreement (Biotel Inc.)