AMD 1996 Annual Report Download - page 137

18.3 LIABILITY FOR DAMAGES. If a defect is attributable to a fault of
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CONTRACTOR or its agents, subcontractors or vendors, CONTRACTOR shall also be
obliged to compensate COMPANY for all liability, loss, damage, cost and expense
arising therefrom.
18.4 CAPACITIES AT OPERATING CONDITIONS. It is expressly understood that
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compliance with the aforesaid warranties and guarantees will require, but not by
way of limitation, that all materials will have capacities (in terms of heat
capacities, duty cycles, rates of flow, volumes, and the like) at operating
conditions as set forth in the plans, specifications, drawings, data sheets and
other Construction Documents approved by COMPANY, under which said items of
material are furnished, not less than the respective capacities set forth in
said plans, specifications, drawings, data sheets and other Construction
Documents and, further, that said items will operate satisfactorily (that is,
will be free from defects in design and will operate particulate free and
without excessive noise, vibration, strain, and deterioration) at all capacities
set forth in said plans, specifications, drawings, data sheets and other
Construction Documents. Furthermore, CONTRACTOR warrants and guarantees that
the Facility shall meet the conditions of temperature, pressure, cleanliness,
vibration and other operating conditions specified in COMPANY'S process design
requirements.
18.5 Coordination Of Functions. CONTRACTOR further warrants and guarantees
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that the Facility and all portions thereof will be suitably coordinated as to
functions and interrelations, properly responsive to controls and sufficiently
stable in operation to avoid objectionable fluctuations in operating
temperatures, pressures, cleanliness, vibration and other operating conditions
and the like during all stages of operation; and will operate satisfactorily
without depending upon the routine use of spare equipment or upon the added
capacity of any spare equipment and with no more attention than is consistent
with good facility operating practice.
18.6 RETAINING IMPERFECT MATERIALS. In the event that any workmanship or
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materials are found to be not as above warranted or guaranteed and the parties
hereto mutually agree to permit same to remain in the Facility, the retention of
such workmanship or materials shall not operate as a waiver of CONTRACTOR'S
responsibility therefor and, in the absence of a written agreement to the
contrary, CONTRACTOR'S responsibility for the safety and serviceability of such
workmanship and materials shall be the same as though such imperfections had not
been discovered. However, the parties shall not allow a known unsafe condition
to continue to exist.
18.7 NO RELEASE OF OTHER CLAIMS. This Article 18 shall not constitute, or
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be interpreted to constitute, a release or discharge by COMPANY of any right,
claim or remedy COMPANY may have against CONTRACTOR or any subcontractor or
vendor under the Contract or under applicable law in respect of the matters
encompassed by this Article 18 or in respect of any defects or failure to meet
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specifications or failure of capacities at operating conditions or improper,
inferior, defective, unsuitable or damaged workmanship or materials or Defaults
or Events of Default or other disputed claim or cause of action whatsoever.
ARTICLE 19
CORRECTION OF DEFECTIVE CONSTRUCTION WORK
19.1 CORRECTION OF WORK FOR WHICH CONTRACTOR IS RESPONSIBLE. Subject to
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the conditions hereinafter set forth in this Article 19 and in Article 22
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hereof, CONTRACTOR at no charge to COMPANY shall make or cause to be made all
alterations, adjustments, repairs, replacements and other corrections to the
Construction Work that shall be, or become, necessary (i) by reason of the
rejection of improper, inferior, defective, unsuitable or damaged workmanship
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997