AMD 2003 Annual Report Download - page 249

time. Therefore, Company is only obliged to pay [***]* of the amounts which are due under invoices submitted in accordance with this Agreement. At
the time of final formal acceptance Company may retain this amount as defects liability security (Gewährleistungssicherheit). Company will pay
Contractor said amount retained—to the extent not used in accordance with this Agreement to remedy defects – (i) at the expiration date of the defect
liability period (Gewährleistungsfrist = Frist in der Mängelansprüche verjähren) or (ii) at the date of Contractor furnishing a defects liability bank
guarantee (Gewährleistungsbürschaft) issued by a German bank or savings bank.
10.2. Performance Guarantee (Vertragserfüllungsbürgschaft)
The Contractor shall deliver to Company a performance guarantee (Vertragserfüllungsbürgschaft) meeting the requirements of sec. 17 VOB/B and
conforming to the sample attached as Exhibit 16 Performance Guarantee. The guarantee shall be issued by a German bank or savings bank. The amount
of this guarantee shall be [***]* of the gross remuneration. The guarantee shall secure the execution of all and any obligations of Contractor under this
Agreement as well as furnishing a defects liability guarantee. If the performance guarantee has not been used, the Company shall return the performance
guarantee after the date of final acceptance simultaneously (Zug-um-Zug) to the defects liability guarantee being furnished by Contractor. No payment
whatsoever shall be due prior to handing over such guarantee.
10.3. Defects Liability Guarantee (Gewährleistungsbürgschaft)
If Contractor – after final acceptance – furnishes a defects liability bank guarantee (Gewährleistungsbürgschaft) to release the amount retained under no.
10.1. of this Agreement, this guarantee shall conform to the sample attached as Exhibit 17 Defects Liability Guaranteeand meet the requirements of sec.
17 VOB/B. This defects liability bank guarantee shall – to the extent it has not been made use of in accordance with the provisions of this Agreement – be
returned upon expiry of the limitation period for defects liability as provided for in no. 9 of this Agreement.
* Confidential treatment has been requested pursuant to section IV.1.(b) of the Confidential Treatment Request dated March 9, 2004.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004