AMD 2003 Annual Report Download - page 237

5. Subcontracting/Personnel
5.1. Subcontracting
Contractor shall be entitled to subcontract parts of the Works if and to the extent the following procedure is applied. Prior to entering in contracts with
subcontractors Contractor shall inform Company in writing of Contractor´s intention to subcontract giving Company the complete name and address of
the proposed subcontractor and the part of the Works to be executed by this subcontractor. The Contractor shall not employ a proposed subcontractor if
Company submits to Contractor in writing – and within three working days from being informed of name, address and part of work – an objection to
employing the subcontractor and this objection is supported by good cause explained in writing in the objection letter.
In case such objection is supported by good cause, Contractor is not entitled to any additional remuneration because of the employment of a subcontractor
other than the one initially proposed.
The Parties acknowledge that Company has not objected to employing the subcontractors contained in the list attached as Exhibit 12 List of
Subcontractors consented to.
Subcontracting does not impact on Contractor’s liability and responsibility under this Agreement. The Contractor remains liable for all acts and
omissions of the subcontractors which shall be persons or entities engaged by Contractor for the fulfillment of Contractor´s obligations
(Erfüllungsgehilfen des Contractors). The Contractor shall use its best efforts in choosing subcontractors which are competent, capable and qualified to
complete the Works to be executed by the respective subcontractor properly and in–time.
The Contractor explicitly affirms that its employees are paid at least minimum wages. The Contractor moreover affirms only to employ subcontractors
and entities providing workers (Verleiher i.S. des Arbeitnehmerüberlassungsgesetzes) which equally compensate their employees by minimum wage.
Contractor will – on demand – provide Company with the necessary documentation that Contractor as well as any subcontractor or entities providing
workers have paid and will pay such minimum wage.
24
Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004