Common use of Systemic Defects Clause in Contracts

Systemic Defects. 5.7.1. By mutual consent, in addition to the warranties above, Calix shall be obligated to remedy any systemic defects in the Products. A systematic defect is a defect of the same or substantially the same type, that appears or is likely to appear during the reasonably expected life time of the concerned Products in more than 3% of such Products delivered during any relevant time period, such time period to be determined by Ericsson in its reasonable discretion, however not less than a time period of three consecutive months. In case of a systematic defect in the Products, Calix shall promptly: 5.7.1.1. at no charge to Ericsson, replace all units of the respective Products delivered up to the time that the systematic defect has been remedied by Calix (provided, however that this Section 5.7.1.1 shall not apply to any EDA 1500 products previously shipped by Ericsson or shipped by Calix within the first nine months after the Effective Date); and [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 5.7.1.2. reimburse Ericsson for the actual costs for the replacement of such defective Products. 5.7.2. Calix's obligations regarding systemic defects shall be applicable for the full expected life time of the relevant Products, which time, however, never shall be shorter than [***] from the date of delivery of the relevant Products, or [***] in the case of ONT Products.