AMD 1996 Annual Report Download - page 142

DEM750,000 each occurrence, combined single limit bodily
injury and property damage
DEM1,500,000 aggregate combined single limit bodily injury
and property damage
21.3 INSURANCE CERTIFICATES. CONTRACTOR shall furnish, and shall make best
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efforts to cause each subcontractor to furnish, COMPANY insurance certificates
and/or certified copies of the original policies evidencing the insurance
specified herein. All insurance to be carried by CONTRACTOR shall be issued by
insurance companies qualified to issue such insurance in Germany that are
reasonably acceptable to COMPANY and maintained in force by CONTRACTOR so long
as CONTRACTOR is engaged in any work at the COMPANY'S Facility within the
purview of the Contract. Certificates should show type of insurance, operations
covered, effective dates, and dates of expiration and contain the following
statement:
"Thirty (30) days written notice of cancellation or change, to be
effective upon receipt thereof, shall be given to COMPANY, by sending notice
to Advanced Micro Devices, Inc., ATTN: Risk Manager, One AMD Place, Post
Office Box 3453, M/S 89, Sunnyvale, California 94088-3453, before any
cancellation or CONTRACTOR initiated change of this policy shall be
effective."
21.4 COMPANY AS ADDITIONAL INSURED. CONTRACTOR shall,and shall make best
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efforts to cause each Subcontractor to, name COMPANY, Advanced Micro Devices,
Inc and their respective officers, agents and employees as additional insureds
on CONTRACTOR'S and Subcontractors' liability policies for any claims arising
with respect to the negligence of CONTRACTOR or subcontractors relating to the
Construction Work performed under the Contract.
21.5 BUILDERS ALL RISK INSURANCE. COMPANY shall purchase and maintain
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builders risk-type insurance upon the entire Project for the full cost of
replacement at the time of the loss. This insurance shall include as named
insureds COMPANY, CONTRACTOR and the subcontractors (generally as a class, but
not individually) and shall insure against loss from fire and extended coverage
perils, and shall include "All Risk" insurance for physical loss or damage
including, without duplication of coverage and to the extent available, at least
theft, vandalism, malicious mischief, transit, collapse, flood, earthquake,
testing and damage resulting from defective design, workmanship or material.
COMPANY will increase limits of coverage, if necessary, to reflect estimated
replacement cost. COMPANY will be responsible for any co-insurance penalties or
deductibles unless due to the fault or negligence of CONTRACTOR or any
subcontractor.
21.6 PERFORMANCE AND WARRANTY BANK GUARANTEES. CONTRACTOR shall provide a
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performance bank guarantee in the amount of twenty percent (20%) of that portion
of the Budgeted Cost of the Work performed by CONTRACTOR (excluding design &
construction management services) and shall cause each subcontractor and vendor
to provide a performance bank guarantee in an amount equal to twenty percent
(20%) of that portion of the Budgeted Cost of the Work performed by each
subcontractor and vendor and shall provide a warranty bank guarantee in the
amount of five percent (5%) of that part of the actual Cost of the Work
performed by CONTRACTOR (excluding design & construction management services)
and shall cause each subcontractor or vendor to provide a warranty bank
guarantee in an amount equal to (i) in the case of a subcontract or purchase
order amount exceeding DEM5,000,000, five percent (5%) of the subcontract or
purchase order amount, and (ii) in the case of a subcontract or purchase order
amount between DEM500,000 and DEM5,000,000, ten percent (10%) of the subcontract
or purchase order amount, but in the case of a subcontract or purchase order
amount less than DEM500,000, no warranty bank guarantee shall be required. Each
bank guarantee shall satisfy the applicable criteria
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Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997