Common use of VERIFICATION AND QUALIFICATION OF CONTRACT PRODUCTS Clause in Contracts

VERIFICATION AND QUALIFICATION OF CONTRACT PRODUCTS. For any new CONTRACT PRODUCTS, the following procedures shall apply: • For the purpose of verification of the design of a CONTRACT PRODUCT and for the purpose of verifying that WAFERS can be manufactured using the PRODUCT TECHNOLOGY, ADESTO may issue a Purchase Order to ALTIS for a PROTOTYPE LOT. The PARTIES will agree on a reduced set of ACCEPTANCE CRITERIA applicable for such PROTOTYPE LOT. Upon agreement on such reduced set of ACCEPTANCE CRITERIA and receipt of ADESTO’s purchase order for such PROTOTYPE LOT, ALTIS will manufacture such PROTOTYPE LOT WAFERS. • Electrical YIELD results are not committed for these WAFERS and no warranty would apply. • ALTIS will provide technical parameters agreed in ACCEPTANCE CRITERIA and other related information of the Product to ADESTO once the manufacture of the PROTOTYPE LOT WAFERS is completed. • ADESTO will qualify the PROTOTYPE LOT WAFERS manufactured by ALTIS and provide the related written analysis report to ALTIS. • Prior to Release, ADESTO may send ALTIS a written request that ALTIS provide RISK START WAFERS. Following such RISK START request, the PARTIES will agree on a reduced set of ACCEPTANCE CRITERIA applicable for such RISK STARTS. Upon * Confidential Treatment Requested agreement on such reduced set of ACCEPTANCE CRITERIA and receipt of ADESTO’s purchase order for such RISK STARTS, ALTIS will manufacture such RISK START WAFERS. • Prior to Release, ADESTO may stop production of WAFERS for any or all CONTRACT PRODUCTS under verification by giving written notice to ALTIS. ALTIS will stop production at suitable production steps following completion of the process step at which the WAFERS reside at the time of ALTIS’ receipt of such notification. If ADESTO requests in writing, that such WAFERS have to be scrapped, ALTIS shall invoice and ADESTO shall pay price for WAFERS as defined in Article 2 of the AGREEMENT • The completion of the QUALIFICATION by ADESTO for each individual CONTRACT PRODUCT manufactured by ALTIS is a prerequisite for ordering and delivery of EARLY PRODUCTION and PRODUCTION WAFERS.