AMD 1996 Annual Report Download - page 115

and the Project engineer's works report, showing the total number of men engaged
by CONTRACTOR and the subcontractors under the Contract at the job site or in
the engineering office during such last day worked, itemized by crafts or work
classifications.
12.5 MATERIALS STATUS REPORTS. In addition to the purchasing progress
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reports which are furnished by CONTRACTOR, CONTRACTOR shall furnish COMPANY,
currently as issued, copies of all Materials Status Reports that it prepares
covering materials for the Facility.
ARTICLE 13
ACCOUNTS AND RECORDS
13.1 DETAILED ACCOUNTS. CONTRACTOR shall keep full and detailed accounts
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and records and exercise such controls as may be necessary for proper financial
management under this Agreement. The accounting and control systems shall be
satisfactory to COMPANY. A monthly Project Cost Report will be issued by
CONTRACTOR with beginning and cut off dates that are the same as the monthly
progress report referred to in Section 12.3 above.
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13.2 SEMATECH MODEL. Accounts will be maintained in such detail as to
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comply with and directly relate to the SEMATECH Facilities Cost Model, current
as of the date of this Agreement. The accounts will also be maintained to
directly relate to the schedule activities required in Article 12 above.
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13.3 TAX ACCOUNTING. All value added taxes, sales taxes, use taxes, excise
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taxes and other taxes charged to COMPANY'S account shall be separately stated
and broken out as separate line items on all invoices, Applications For Payment
and accounting reports. CONTRACTOR shall require all subcontractors and vendors
to comply with this requirement.
13.4 AUDIT BY COMPANY. The COMPANY, and any Person retained by COMPANY to
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act as one of the COMPANY'S Representatives and COMPANY'S accountants shall have
the right at any time, including without limitation following final payment to
CONTRACTOR, to audit the books and records of CONTRACTOR, and of all
subcontractors and vendors with whom CONTRACTOR has entered into a subcontract
or purchase order on a cost reimbursable basis, and shall be afforded access to
CONTRACTOR'S records, books, correspondence, instructions, drawings, receipts,
subcontracts, purchase orders, vouchers, memoranda, and other data relating to
this Agreement and to the Project, and CONTRACTOR shall preserve these for a
period of three years after final payment, or for such longer period as may be
required by tax law. In the event COMPANY conducts an audit of CONTRACTOR'S
Project cost accounting information, and such audit reveals that CONTRACTOR has
billed COMPANY on any one billing an amount which exceeds the actual amount
which CONTRACTOR should have billed COMPANY on such billing, by five percent
(5%) or more of the amount Contractor should have billed COMPANY, then
CONTRACTOR shall be responsible for reimbursing COMPANY for the cost of the
audit. In other events, COMPANY shall be responsible for the cost of the audit.
In all events, CONTRACTOR shall be responsible for reimbursing COMPANY for any
overpayment, regardless of the amount of the overpayment. In the event that the
audit reveals that CONTRACTOR has under-billed COMPANY, COMPANY shall reimburse
CONTRACTOR for the amount under-billed.
13.5 AUDIT OF SUBCONTRACTORS AND VENDORS. CONTRACTOR shall provide in each
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subcontract entered into with a subcontractor and in each purchase order entered
into with a vendor on a cost reimbursable, service or unit price basis the right
for COMPANY or COMPANY'S Representatives to audit all books, records, accounts
and other data relating to Reimbursable Costs or to work of any kind done by the
subcontractor or materials provided by the vendor in respect of the Project.
CONTRACTOR will not enter into any subcontract or
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997