AMD 1996 Annual Report Download - page 136

Facility to conform to the foregoing warranties and guarantees (excepting,
however, any such failures resulting from ordinary wear and tear, ordinary
corrosion, or improper operation after COMPANY takes over the Facility for
operation if such improper operation is not attributable to some act or omission
of CONTRACTOR, its subcontractors or vendors) are found by COMPANY within the
applicable period of time specified hereinafter in this Section, beginning on
the Warranty Commencement Date (defined in this Section) applicable to the
Facility or to the Construction Phase or to such system, COMPANY shall promptly
notify CONTRACTOR thereof in writing; and, in accordance with the provisions of
Article 19 hereof, CONTRACTOR shall thereupon make all alterations,
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adjustments, repairs, replacements and other corrections and do all things
needful to make the Facility or such Construction Phase or such system and all
workmanship and materials therein conform to the warranties and guarantees
herein specified in every particular. The warranty and guarantee periods for the
Facility or any Construction Phase or system are as follows:
Electrical [Electrical 1 year
generating or transmitting
equipment such as trans-
formers, switchgear,
generators, etc.]
Rotating Parts 1 year
Piping And Static 5 years
Mechanical Systems
Any Other Portion Of 5 years
The Facility
Furthermore, it is agreed that all alterations, adjustments, repairs,
replacements and other corrections that CONTRACTOR is required to make within
the guarantee period specified above in this Section 18.1 shall, in each case,
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be warranted and guaranteed by CONTRACTOR for an additional period of time equal
to the applicable period of time specified above in this Section, dating from
the date that the alteration, adjustment, repair, replacement and other
corrections have been completed. CONTRACTOR'S warranties and guarantees shall
exclude liability for ordinary wear and tear, ordinary corrosion or improper
operation after Company takes over the Facility for operation if such improper
operation is not attributable to some act or omission of CONTRACTOR, its
subcontractors or vendors. The "WARRANTY COMMENCEMENT DATE" shall be (i) in the
case of a system, the date upon which such system has been completed in its
entirety and all Punch List items that could lead to a malfunction of the system
or could limit any of such system's functions or could affect COMPANY'S
continuous use of such system have been corrected and the system satisfies the
specifications for the operation of such system and such system has satisfied
the System Performance Test and COMPANY has given CONTRACTOR notice of
satisfactory completion of the System Performance Test pursuant to Section 25.2;
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and (ii) in the case of any other part of the Facility, upon Final Completion of
the Facility.
18.2 COMPANY'S RIGHT TO REPAIR. If CONTRACTOR fails or refuses to comply
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with a demand to repair defects within a reasonable time set by COMPANY or
unreasonably postpones such repair, then COMPANY shall be entitled to have the
defects repaired at the expense of CONTRACTOR by COMPANY'S own forces as
provided in Section 19.3. Furthermore, in that case COMPANY shall be entitled
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to claim from CONTRACTOR an anticipated payment on the estimated expense to
repair the defects. In such event, COMPANY shall use reasonable efforts to
avoid unnecessary expenditures and shall maintain reasonably detailed records of
the costs COMPANY incurs.
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997