AMD 1996 Annual Report Download - page 123

16.2.2 FIELD COSTS.
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16.2.2.1 MATERIALS. The actual and reasonable amounts paid by
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CONTRACTOR to vendors for materials furnished by CONTRACTOR which enter directly
into the construction of the Facility or which are furnished for construction
but are left over as surplus on COMPANY'S premises when construction is
completed (excluding the cost of surplus remaining from unreasonably large
orders and excluding the cost of surplus ordered in bulk), and including such
materials as may be furnished by CONTRACTOR as accessories or spare parts for
use with, or maintenance of, the completed Facility. Also, the actual and
reasonable cost for materials manufactured or fabricated by CONTRACTOR in its
shops and furnished for the Facility. Surplus material will be disposed of
according to Section 16.8.
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16.2.2.2 CONSTRUCTION EQUIPMENT AND TOOLS EXCLUSIVE TO THE SITE. The
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actual and reasonable cost to CONTRACTOR of all construction equipment and tools
(but not small tools, i.e., those having a value when new of less then DEM800)
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and other items in CONTRACTOR'S construction outfit which are purchased by
CONTRACTOR for use exclusively at the Site for or in connection with the
construction of the Facility and that are not usable in the construction of
other plants and facilities but not to exceed the reasonable value of such
equipment and tools. CONTRACTOR shall not purchase any such construction
equipment and tools until CONTRACTOR has obtained COMPANY'S written consent.
Such items purchased by CONTRACTOR shall become COMPANY'S property when
construction is completed.
16.2.2.3 CONSTRUCTION EQUIPMENT AND TOOLS NOT EXCLUSIVE TO THE SITE.
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Rental charges on construction equipment and tools (but not small tools) and
other items in CONTRACTOR'S construction outfit that are owned by CONTRACTOR and
furnished for the job in first-class working condition, computed on the basis of
rental rates mutually agreed upon before the items involved are furnished, but
in no event more than the then prevailing rates in the general area of the Site
for such items. Upon reaching agreement on such rental rates, the parties shall
set forth such rental rates in a schedule and attach that schedule to this
Agreement as Schedule 16.2.2.3. Whenever such rental rates are revised, the
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parties shall revise Schedule 16.2.2.3 and attach such revised schedule to this
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Agreement. The rental term of any such item owned by CONTRACTOR shall commence
when said item is shipped to the Site and shall terminate when said item is
shipped away from the Site or at such time as the item is no longer needed or
necessarily kept at the Site for the proper and economical prosecution of the
job, except that the periods when the item is out of use for making major
overhauls or major repairs shall not be included in such rental term. If the
rental rates exclude the costs of minor repairs, then COMPANY will reimburse
CONTRACTOR for the actual and reasonable amounts paid by CONTRACTOR for minor
repairs to, and minor repair parts for, any such construction equipment and
tools owned by CONTRACTOR as shall be made necessary during the rental term of
said equipment on this job (such as routine replacement of spark plugs,
distributor points, oil filters, or other parts), but CONTRACTOR shall bear all
costs for major repairs to, and major repair parts for said items (such as
replacement of the generator or alternator on an automotive vehicle, an engine
overhaul, replacement of tractor treads, or other equipment reconditioning).
CONTRACTOR shall not furnish any of the aforesaid items owned by it on a rental
basis without having secured COMPANY'S prior written approval in each instance
and CONTRACTOR shall also keep COMPANY advised as to when each such item of
rented construction equipment and tools used on the Construction Work is not in
usable condition or is no longer required for the job, and the
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997