AMD 1996 Annual Report Download - page 146

ARTICLE 25
SYSTEM PERFORMANCE TESTS
25.1 CONDUCT OF SYSTEM PERFORMANCE TESTS; REPAIRS. As soon as practicable
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after each system within the Facility shall have been properly prepared and
conditioned for operation, COMPANY shall bring such system on stream and shall
then make a system performance test (the "SYSTEM PERFORMANCE TEST") on such
system by operating it under approximately normal conditions of temperature,
pressure, capacity, vibration, cleanliness and all other appropriate operating
conditions prescribed by COMPANY for a period of seventy-two (72) consecutive
hours to demonstrate that all materials, equipment and machinery are in proper
working order and free from defects and that such system is operable under said
conditions of temperature, pressure, capacity, vibration, cleanliness and the
Facility Performance Criteria set forth in Exhibit A, and other appropriate
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operating conditions and that the clean room and clean areas satisfy the
cleanliness requirements. In the event of failure to demonstrate this on the
first or any subsequent attempt, CONTRACTOR shall make, at CONTRACTOR'S cost,
all alterations, adjustments, repairs, replacements or other corrections that
may be needed and, if it becomes necessary to shut down the Facility or any
portion thereof for the purpose of making alterations, adjustments, repairs,
replacements or other corrections or for any other reason before any System
Performance Test is satisfactorily completed, COMPANY at CONTRACTOR'S cost shall
service the Facility (or such portions thereof as are involved in or affected by
the shutdown) for resuming testing after said shutdown. Then, when the Facility
is again ready for testing, COMPANY shall bring the system on stream and shall
start a new System Performance Test. The foregoing procedure shall be repeated
as often as necessary until such system shall have operated continuously, and in
conformity with the Facility Performance Criteria and the Fab 30 Preliminary
Design and final design, for a period of the duration specified in the first
sentence of this Section 25.1 under normal conditions of temperature, pressure,
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capacity, vibration, cleanliness and the Facility Performance Criteria and the
Fab 30 Preliminary Design and final design; and the System Performance Test
shall thereby have been satisfactorily completed. It is understood that
CONTRACTOR shall be permitted to furnish, at its own expense, an observer to
witness any System Performance Test.
25.2 NOTICE OF SATISFACTORY COMPLETION. When any System Performance Test
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on a system within the Facility has been satisfactorily completed as specified
in Section 25.1 above, COMPANY shall notify CONTRACTOR to this effect in
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writing.
25.3 COORDINATION OF SYSTEMS. The parties acknowledge that CONTRACTOR will
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complete, and COMPANY will test and accept, certain systems in the Facility
before other systems have been completed, tested and accepted. If one system,
that has already been completed, tested and accepted, operates in conjunction
with a second system, and if the balancing and coordination of the two systems
and the testing of the second system reveals defects in the first system, then
the first system shall be retested pursuant to Section 25.1 as if it had never
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been tested, and COMPANY'S previous acceptance of such defective system and
COMPANY'S previous notice of completion of the System Performance Test pursuant
to Section 25.2 shall be null and void and of no force or effect.
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25.4 STANDARDS OF OPERATION. At no time (whether during any System
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Performance Test or any other period) shall CONTRACTOR operate the Facility or
any part thereof in a manner which subjects any equipment to conditions of
temperature, pressure, excess particulates, vibrations or stress that are more
severe, in COMPANY'S opinion, than the maximum allowable operating conditions
for which the equipment was designed; nor shall any alterations, adjustments,
repairs, replacements or other corrections be made while the Facility or any
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997