AMD 1996 Annual Report Download - page 130

Project, the actual Cost of the Work exceeds the Budgeted Cost of the Work, the
Fee shall be reduced by twenty percent (20%) of the amount that exceeds the
Budgeted Cost of the Work, until the amount of the reduction equals fifty
percent (50%) of the Budgeted Fee. From that point further, there shall be no
more reductions in the Fee.
16.3.3 FEE FOR SERVICES. The parties intend that all costs and
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expenses incurred by CONTRACTOR in connection with the Project not specifically
provided to be reimbursed to CONTRACTOR in Section 16.2 including, but not by
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way of limitation, CONTRACTOR'S profit and the cost of performing CONTRACTOR'S
guarantees and warranties, shall be covered by the Budgeted Fee.
16.4 TOTAL CONTRACT AMOUNT. Except for such payments as may become due
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CONTRACTOR under other provisions of this Contract, the summation of the
Reimbursable Costs enumerated in Section 16.2 above and the Fee set forth in
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Section 16.3 above shall constitute the total Contract Amount which COMPANY
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shall pay to CONTRACTOR for the true and faithful performance of all of
CONTRACTOR'S obligations under the Contract.
16.5 COSTS OF ALTERATIONS. CONTRACTOR'S charges under Section 16.2 above
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shall not include charges of the kinds covered therein incurred by CONTRACTOR
for making the alterations, adjustments, repairs, replacements and other
corrections described in Article 19 hereof. Moreover, in the event the costs of
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such work are compensated to CONTRACTOR by insurance carried hereunder, there
shall be no adjustment made in CONTRACTOR'S Fee as a consequence of any
insurance proceeds paid to CONTRACTOR. All alterations, adjustments, repairs,
replacements and other corrections which CONTRACTOR may be required to make on
the Facility in fulfilling the guarantees set forth in Article 18 hereof after
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COMPANY takes over the Facility for operation or use shall be borne by
CONTRACTOR without reimbursement from COMPANY. Furthermore, in cases where
COMPANY makes any alterations, adjustments, repairs, replacements or other
corrections of the kind herein above considered in this Section 16.5 with its
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own forces as provided for in Section 19.4 hereof, CONTRACTOR shall reimburse
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COMPANY for the actual costs to COMPANY of all materials and labor used therefor
and all other expenses such as overhead, taxes, insurance, freight, equipment
rental and the like applicable thereto.
16.6 RECORDS OF REIMBURSABLE COSTS. Following each month's work hereunder,
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CONTRACTOR shall prepare a summary of the total hours expended by job or worker
classification of all employees who have performed work hereunder during the
preceding month whose time is chargeable to COMPANY under the provisions of
Section 16.2 above. (CONTRACTOR shall maintain individual time cards and rate
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sheets for all of its personnel who have performed work hereunder showing the
time actually spent by each individual as part of CONTRACTOR'S records of
Reimbursable Costs.) CONTRACTOR shall transmit copies of this summary as soon
as possible thereafter to COMPANY'S Project Manager. All fringe benefits
included in labor charges shall be accounted for as a separate line item. In
addition, CONTRACTOR shall keep accurate and detailed accounts of all other
Reimbursable Costs chargeable to COMPANY under Section 16.2 above. All material
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costs shall be verified by the actual payment vouchers. In case any subcontract
is let, or purchase is made, on a "cost-plus" basis pursuant to Section 9.5
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hereof, CONTRACTOR shall, if COMPANY so requests, make an audit of all
expenditures made thereunder prior to final settlement with such subcontractor
or vendor. Furthermore, CONTRACTOR shall provide COMPANY'S Inspector and other
Representatives continuous access to the Site and other locations where work on
this Contract is being performed and shall give COMPANY'S Inspector and other
Representatives and auditors access to CONTRACTOR'S books and other records at
any and all reasonable times to the extent necessary to determine the accuracy
of all of CONTRACTOR'S charges entered into the accounts referred to above and
the number of hours entered in
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997