AMD 1996 Annual Report Download - page 131

the summaries referred to in the first sentence of this Section 16.6. CONTRACTOR
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shall furnish COMPANY with such statements, invoices, receipts, vouchers, and
other information as may be required to enable COMPANY to audit CONTRACTOR'S
books and other records. All time cards for time chargeable to COMPANY in the
summaries referred to in the first sentence of this Section 16.6 must bear the
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signature of the person's department head or division head. Also, any "cost-
plus" subcontract or purchase order which CONTRACTOR may (with COMPANY'S prior
written consent) enter into in connection with its Construction Work hereunder
shall contain provisions (i) requiring that accurate and detailed accounts be
kept of the Reimbursable Costs thereunder, (ii) permitting the Representatives
and auditors of CONTRACTOR and COMPANY to have access for audit purposes at any
and all reasonable times to the subcontractor's or vendor's books and other
records pertaining to costs thereunder, and (iii) requiring that each such
subcontractor or vendor furnish CONTRACTOR and COMPANY (if requested) with such
statements, invoices, receipts, vouchers, and other information as may be needed
to enable CONTRACTOR and COMPANY to audit the books and records pertaining to
said costs.
16.7 DISCOUNTS AND REFUNDS. CONTRACTOR shall promptly apply for and obtain
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all discounts (including discounts due to payment of bills on a "cash" basis),
refunds, deductions (including tax collection allowances) and the like to which
CONTRACTOR may be entitled with respect to the items charged to COMPANY under
this Article 16. COMPANY shall be entitled to a credit in the amount of each
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such discount, refund, deduction and the like and CONTRACTOR shall make
reasonable and timely efforts to see that they are secured.
16.8 SURPLUS. COMPANY shall be entitled to all surplus materials, surplus
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construction supplies, and surplus items for which it shall have reimbursed
CONTRACTOR at actual cost. Upon completion of its Construction Work hereunder,
CONTRACTOR shall remove all of said materials, supplies, and items to places of
storage or disposal to be designated by COMPANY; however, if requested by
COMPANY, CONTRACTOR shall make a reasonable effort to arrange with vendors to
take back (or otherwise dispose of) such left over items and if successful,
shall credit COMPANY with the amounts refunded or credited by vendors. The
amounts of such refunds or credits obtained from vendors for returning such left
over items shall in each instance be subject to COMPANY'S approval. As to those
surplus materials and supplies that are not taken back by the vendors,
CONTRACTOR shall, to the extent requested by COMPANY, endeavor to sell the same
to third parties subject to COMPANY'S prior approval as to the amounts to be
received therefor. CONTRACTOR shall use its best efforts, consistent with
meeting its obligations under the Contract, to keep surplus materials to a
minimum. In those instances where because of delivery instructions, CONTRACTOR
finds it necessary to order materials on an estimated basis prior to completing
the engineering design, CONTRACTOR shall review such orders promptly after the
design is completed and adjust the quantities involved to conform to actual
material take-off. After its field operations begin, CONTRACTOR shall make a
periodic review of materials on hand and on order for the purpose of identifying
any surplus materials that are beyond its needs. CONTRACTOR shall furnish
COMPANY reports listing any such surplus materials thus disclosed and showing
its recommendations as to whether the surplus should be returned to vendors for
credit or made available for sale to other parties. COMPANY shall promptly
review such reports and advise CONTRACTOR as to the actions to be taken with
respect to disposal of surplus materials.
16.9 LUMP SUM SUBCONTRACT. It is agreed that in those instances where
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COMPANY feels that it would be in its best interests to have CONTRACTOR
subcontract any of the field work hereunder on a lump-sum price basis instead of
having such work performed by CONTRACTOR'S forces on the basis herein provided
for, COMPANY shall have the right to require CONTRACTOR to do so.
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997