AMD 1996 Annual Report Download - page 133

submitted to COMPANY by CONTRACTOR, COMPANY shall make progress payments on
account of the Contract Amount to CONTRACTOR pursuant to this Article 17. The
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period covered by each Application for Payment shall be one calendar month
ending on the last day of the month. In all instances, the period covered by
the Application for Payment must coincide with the corresponding period set
forth in the Project Schedule. Near the end of each calendar month, CONTRACTOR
shall prepare a fully itemized Application for Payment showing in detail and as
completely as possible (i) invoices actually received from subcontractors,
vendors and other third parties and expenses and charges actually paid for
Reimbursable Costs chargeable to COMPANY under the provisions of Section 16.2
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hereof (less sums for which CONTRACTOR has previously received reimbursement);
and (ii) the portion of CONTRACTOR'S Budgeted Fee that is then payable to
CONTRACTOR, as stated in Section 17.2 below. The Application for Payment shall
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show the actual mathematical calculations by which such portion of the Budgeted
Fee was determined. The Application for Payment shall be broken down by
Reimbursable Costs and Budgeted Fee attributable to each Construction Phase.
Each Application for Payment will show the total hours worked by employees in
each classification set forth in Schedule 16.2.1.1 multiplied by the
corresponding hourly rate in Schedule 16.2.1.1. As soon as each such
Application for Payment shall have been prepared, CONTRACTOR shall submit it to
COMPANY along with all substantiating invoices, payrolls, petty cash accounts,
freight bills, etc., not previously submitted and, at the same time, shall also
send COMPANY an invoice for the amount by which the summation of the amounts
entered in the aforesaid Application for Payment exceeds the aggregate of all
payments previously made by COMPANY under the provisions of this Section 17.1
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and Section 17.2. Each Application for Payment shall show (1) Reimbursable
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Costs for the Project and for each Construction Phase and (2) the percentage
completion of the Construction Work for the Project and for each Construction
Phase as of the end of the period covered by the Application for Payment.
CONTRACTOR shall certify to COMPANY the aforesaid percentages of completion,
and COMPANY and COMPANY'S Inspector shall have the right to verify such
percentages. Each Application for Payment and the progress payment made by
COMPANY to CONTRACTOR shall exclude all amounts that CONTRACTOR retains from its
subcontractors (such amount retained being hereinafter referred to as the
"SUBCONTRACT RETAINAGE"). Applications for Payment shall show the portion of
Reimbursable Costs properly allocable to materials delivered and suitably stored
at the Site for subsequent incorporation in the Facility ("STORED MATERIALS")
and shall show that the requirements of Section 17.7 have been satisfied as a
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condition precedent to payments for Stored Materials. In taking action on
CONTRACTOR'S Applications for Payment, COMPANY shall be entitled to rely on the
accuracy and completeness of the information furnished by CONTRACTOR and shall
not be deemed to represent that COMPANY has made a detailed examination, audit
or arithmetic verification of the documentation submitted or other supporting
data. In no event shall any Application for Payment seek reimbursement of
Reimbursable Costs previously reimbursed to CONTRACTOR or payment of any part of
the Budgeted Fee previously paid to CONTRACTOR. Subject to the provisions of
Article 31 hereof, if COMPANY finds the Application for Payment and invoices to
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be proper and in accord with the provisions hereof and if no Default or Event of
Default then exists hereunder, COMPANY shall pay CONTRACTOR the entire amount of
said Application for Payment within thirty (30) calendar days after receiving
the Application for Payment, the invoices and other matters hereinabove
specified to be submitted therewith. Any errors or discrepancies discovered in
the Application for Payment shall not be cause for COMPANY to withhold payment
of the balance of the Application for Payment as to which there is no error or
discrepancy. If any part of the Project (including any Construction Work)
covered by any monthly Application for Payment has been rejected by COMPANY or
COMPANY'S Inspector or Representative (including any Person acting on behalf of
any lender of COMPANY) or is being repaired or replaced by CONTRACTOR, the
portion of Reimbursable Costs for which CONTRACTOR seeks reimbursement and the
portion of the Budgeted Fee attributable to such part of the Project shall be
withheld
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997