AMD 2004 Annual Report Download - page 424

equivalent method applied to other comparable equipments used by the Lessee. The Lessee shall at all times keep the Equipment in the same condition as
on the Delivery Date, ordinary wear and tear excepted. In any event, the Lessee shall not take any action which would have a material adverse effect on
any Manufacturer’s warranty for the Equipment.
3 The Lessee shall, at its own responsibility and cost, prepare and keep records concerning the repair and maintenance of the Equipment including daily
reports.
4 The Lessee may, at its own responsibility and cost, for the purpose of repair and maintenance set forth in Clause 2 of Article 14, replace the Components
with any alternative parts having the same Performance, Etc. as the relevant Components and owned by the Lessee free and clear of any Encumbrances,
Etc. (other than the Permitted Encumbrances, Etc.). In addition, the Lessee may attach the parts owned by the Lessee free and clear of any Encumbrances,
Etc. (other than the Permitted Encumbrances, Etc.) to the Equipment not for the replacement of the Components; provided however that such replacement
and attachment shall not diminish or change the Performance, Etc. of the Equipment.
5 The Lessee may, at its own responsibility and cost, remove any Components attached to the Equipment after the delivery to the Lessee of such Equipment
under Article 4 not for replacement of the Components but for an addition, or the Components which is possible to be removed without diminishing the
Performance, Etc. of the Equipment, in each case without attaching alternative parts to the Equipment.
Article 15 (Alteration of Original Condition)
The Lessee shall alter or improve the Equipment as required by the relevant laws and regulations. Except for the progressing alteration to the original
condition notified to the Lessor on or before the execution date hereof, the Lessee may, at its own responsibility and cost, so long as the Performance, Etc.
of the Equipment shall not be diminished or changed, and so long as there shall be no violation of Clause 1 of Article 12 or each clause of the immediately
preceding article, make the necessary or favorable alterations and modifications to the Equipment in the course of its business; provided, however, that in
this Article, if such alteration or improvement gives significant effects on the Performance, Etc. of the Equipment such as deterioration, etc. due to the
change of usage/process, the prior consent of the Lessor shall be required. In case that the Lessee fails to obtain such prior consent of the Lessor, the
Lessee may make a replacement with equipment which the Lessor deems to have equal value or equal price; provided that the Lessee shall cooperate with
the Lessor, the Agent and the Investor to have the equipment which will consist of the Equipment by such replacement subject to the security assignment
option under the Equipment Security Assignment Option Agreement.
Article 16 (Ownership of Components)
1 Except as provided for in Clause 2 of Article 16, the Components attached to the Equipment by the Lessee pursuant to Clause 4 of Article 14 shall,
simultaneously with such attachment, become the Components consisting of the Equipment and automatically become subject to the ownership of the
12
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005