Common use of Factory Acceptance Clause in Contracts

Factory Acceptance. IM shall provide ATMI with written notice that it has completed the assembly and configuration of any Wets Workflow item that ATMI is purchasing hereunder, which is to be completed on-site at IM’s facilities, and that it is accordingly ready to arrange for delivery. Prior to such delivery, IM shall demonstrate to ATMI that any Wets Workflow item sold pursuant to the Purchase Documentation satisfies the Acceptance Criteria set forth therein and shall allow ATMI to conduct tests to ensure compliance with said Acceptance Criteria at IM’s facilities. This demonstration and testing shall take place at IM’s facilities (ATMI will pay its own expenses to attend), and shall commence no later than ten (10) business days following said written notice. Upon completion of said demonstration and testing, ATMI will either (i) confirm in writing that factory acceptance of the Wets Workflow item has occurred, and ATMI shall make the payment associated therewith as set forth in the Purchase Documentation, or (ii) identify with reasonable detail any deficiencies, in which case IM will promptly remedy the same and the foregoing demonstration and testing will be repeated. If IM is unable to remedy the deficiency, ATMI may terminate the applicable Purchase Documentation in accordance with the provisions of Section 11.2(i).