AMD 1996 Annual Report Download - page 122

CONTRACTOR to outside consultants and/or temporary employees for services
furnished by them on the work hereunder, with COMPANY'S prior written approval.
16.2.1.4 PRINTS AND REPRODUCTIONS. Charges for direct prints and
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reproductions produced in CONTRACTOR'S home office for the work hereunder are
included in the hourly rates set forth in Schedule 16.2.1.1.
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16.2.1.5 MODEL. Actual and reasonable out-of-pocket costs to
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CONTRACTOR for supplies and materials necessary to construct a model of the
Facility, if such a model is authorized by COMPANY.
16.2.1.6 SHIPPING AND PROVIDING OFFICES. Out-of-pocket costs to
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CONTRACTOR for shipping drawings, specifications, and the like in connection
with the work hereunder, as well as CONTRACTOR'S out-of-pocket costs for
CONTRACTOR providing office services and facilities for COMPANY'S employees in
residence in CONTRACTOR'S home office are included in the hourly rates set forth
in Schedule 16.2.1.1.
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16.2.1.7 COMMUNICATIONS. Out-of-pocket costs for (i) postage
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charges, (ii) home office stationery and equipment, and (iii) telephone and
facsimile charges are included in the hourly rates set forth in Schedule
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16.2.1.1.
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16.2.1.8 INDIRECT OVERHEAD. CONTRACTOR'S indirect home office and
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overhead costs are included in the overhead rate used to establish the hourly
rates set forth in Schedule 16.2.1.1. The Addendum to Schedule 16.2.1.1 sets
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forth the method used to calculate the overhead rate. Foreign branch office
selling expenses are excluded from this calculation. These costs include, but
not by way of limitation, (i) costs of office rent, furniture, light, heat, and
depreciation, and (ii) wages and salaries of CONTRACTOR'S executive management
personnel, sales personnel, janitors, messengers and other personnel, having job
classifications other than those included in Schedule 16.2.1.1.
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16.2.1.9 FEES, PREMIUMS, LEGAL COSTS, PROTECTIVE WORK. The actual
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and reasonable out-of-pocket costs incurred for: (i) premiums for insurance and
bonds required under the Contract; (ii) fees and assessments for the building
permit and for other permits, licenses and inspections for which CONTRACTOR is
required by the Contract Documents to pay; (iii) fees of testing laboratories
for tests required by the Contract Documents, except those related to defective
or non-conforming work; (iv) royalties and license fees approved in writing by
COMPANY and paid for the use of a particular design, process or product required
by the Contract Documents; and (v) taking action to prevent threatened damage,
injury or loss in case of an emergency affecting the safety of persons and
property, as provided in the Contract.
16.2.1.10 OTHER DIRECT HOME OFFICE COSTS. The out-of-pocket amounts
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paid by CONTRACTOR for such other direct home office costs necessarily incurred
in the performance of the work hereunder but not specifically mentioned above
are included in the hourly rates set forth in Schedule 16.2.1.1.
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16.2.1.11 LIMITS ON OVERTIME PAY. Overtime premium pay which is not
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a result of CONTRACTOR'S failure to meet the Project Schedule shall be
considered as a valid cost to be reimbursed under Article 16 if CONTRACTOR has
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received COMPANY'S prior written approval to incur such overtime. Such approval
shall specify a maximum number of overtime hours CONTRACTOR shall be allowed to
incur before additional approval is required.
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997