AMD 1996 Annual Report Download - page 206

COMPANY'S inspection of the Punch List items, it is found that CONTRACTOR has
not completed all of the items listed, or other Construction Work not listed is
found to be deficient, COMPANY shall prepare a further Punch List and submit to
CONTRACTOR. This list may not be exhaustive and the failure to include an item
on it does not relieve CONTRACTOR of the responsibility to complete all of the
Construction Work in accordance with the Contract. If, after inspection of the
further Punch List items, it is found that CONTRACTOR has not completed all of
the items listed, or other Construction Work not listed is found to be
deficient, the cost of all further inspections required by COMPANY to determine
if the Construction Work has been completed in accordance with the Design
Documents and authorized Change Orders will be charged to CONTRACTOR. Punch
List items that could not lead to malfunction of a system or could not limit any
of such system's functions or could not affect COMPANY'S continuous use of such
system shall not delay COMPANY'S acceptance of such system. COMPANY may have
the beneficial or partial use of a system prior to substantial completion and
acceptance of such system due to Punch List items that affect the system's
functions or the system's ability to meet specifications or Facility criteria,
but such beneficial or partial use shall not relieve CONTRACTOR of its
obligation to correct or complete such Punch List items, shall not trigger the
Warranty Commencement Date (defined in Section 18.1) applicable to such system
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and shall not constitute acceptance of such system.
15.2.2 CONTRACTOR'S CERTIFICATION OF COMPLETION OF CONSTRUCTION
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WORK. When CONTRACTOR has completed all of the Construction Work, including the
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items of the Punch List(s), on each system or on the Facility, CONTRACTOR shall
certify to COMPANY (i) that such Construction Work has been completed in
accordance with the approved Design Documents and (ii) that all materials and
workmanship are in accordance with the Design Documents. If COMPANY'S
Representative or Inspector agrees with CONTRACTOR'S certification, then such
Construction Work shall be deemed to have been completed. If COMPANY'S
Representative or Inspector disagrees, COMPANY'S Representative or Inspector
shall identify the matters that have not yet been completed, and CONTRACTOR
shall complete such matters. When CONTRACTOR has completed such Construction
Work to COMPANY'S satisfaction, then such Construction Work shall be deemed to
have been completed.
15.2.3 CONDITIONS CONSTITUTING FINAL COMPLETION. The Facility
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shall be finally complete when (i) CONTRACTOR shall have completed the
Construction Work as described in Section 15.2.1 above, (ii) CONTRACTOR shall
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have certified such completion as described in Section 15.2.2 above and
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COMPANY'S Inspector shall have determined in accordance with Section 15.2.2 that
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all of the Construction Work (including Punch List items) to be performed in
connection with the Facility has been performed to the satisfaction of COMPANY'S
Inspector, (iii) the construction of the Facility shall have been completed free
of liens and free of retention of title to any materials, and (iv) the Facility
is undamaged and has been available for regular use and occupancy. The date
upon which such matters have been completed to COMPANY'S satisfaction shall be
the "FINAL COMPLETION DATE". The parties shall enter into a written memorandum
memorializing the Final Completion Date. It is understood that COMPANY'S Final
Acceptance of the Facility pursuant to Section 15.3 hereof shall occur after the
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Final Completion Date.
15.3 FINAL ACCEPTANCE AND FINAL PAYMENT.
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15.3.1FINAL ACCEPTANCE BY COMPANY. When all of the conditions
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hereinafter set forth in this Section 15.3.1 shall have been fulfilled, COMPANY
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shall give CONTRACTOR its final acceptance of the Facility (the "FINAL
ACCEPTANCE") in writing. The aforesaid Final Acceptance shall be contingent
upon the following conditions: (i) the Final Completion Date shall have
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997