AMD 1994 Annual Report Download - page 193

Product from AMD's authorized distributors at no additional charge to
Compaq. Compaq also agrees to make reasonable attempts to adjust orders
placed with other third party vendors and/or adjust Compaq production
schedules before incurring additional reprocurement costs. If Compaq cannot
obtain Product in a timely fashion from AMD or AMD's authorized
distributors, then, Compaq may purchase substitute for Product elsewhere.
Without affecting other remedies Compaq may have, Compaq may [CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION].
8. PACKING, MARKING, AND SHIPPING INSTRUCTIONS
A. All Product shall be prepared and packed in a commercially reasonably manner
so as to secure the lowest transportation rates and meet carrier's
requirements or those set forth in the Product specification attached as
Exhibit B ("Specification").
B. Each shipping container shall be marked to show Compaq's Order number, part
number, revision level, lot number, and quantity contained therein. A
packing list showing the Order number shall be included in each container.
C. AMD agrees to standardize the count multiples used in shipments so that
Compaq can verify the quantity of each shipment.
9. QUALITY
A. AMD agrees to use its best efforts to deliver defect-free materials to
Compaq at all times. AMD shall establish and/or maintain a quality
improvement plan acceptable to Compaq. AMD's Quality Improvement Plan is
attached to this Agreement as Exhibit C ("Quality Plan").
B. At Compaq's request, AMD will facilitate on-site visits and inspections by
Compaq. Such inspections shall take place during normal business hours at
AMD's facilities. AMD shall, as far as reasonably practicable, assist
Compaq's personnel in the conduct of this inspection. Compaq's inspections
shall in no way relieve AMD of its obligation to deliver conforming Product
or waive Compaq's right of inspection and acceptance at the time the
Products are delivered.
C. AMD agrees to provide relevant outgoing inspection, quality, and reliability
data upon Compaq's request.
D. AMD agrees to conform to the revision level stated on Compaq's Order.
E. AMD agrees to advise Compaq of any changes to process, materials, or sources
of supply and ensure that such changes do not compromise specifications,
quality, or reliability of Products ordered by Compaq.
10. INSPECTION AND ACCEPTANCE
A. Products purchased pursuant to this Agreement shall be subject to inspection
and test by Compaq at all times and places, including the period of
manufacture or development. Unless otherwise specified in the Order, final
inspection and acceptance of Product by Compaq shall be at Compaq's
facilities. Compaq reserves the right to reject Product which does not
conform to the specifications, drawings, samples or other descriptions
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995