AMD 1996 Annual Report Download - page 169

SCHEDULE 21.6 & 21.7
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CRITERIA FOR BANK GUARANTEES
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The minimum requirements for the performance bond and the warranty and advance
payment guarantees (in addition to those already set out in Section 21.6 and
21.7) are as follows:
1) For guarantees furnished by CONTRACTOR, as well as guarantees furnished by
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subcontractors or vendors that enter into individual contracts to which the AGBG
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does not apply:
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a) the bonds and guarantees qualify as a "Garantie" under German law;
b) the bonds and guarantess be payable on first demand;
c) payment by the guarantor be made free of any restriction or
condition, whether by way of set-off (Aufrechnung), counter-claim
(Widerklage), defense of voidability (Einrede der Anfechtbarkeit) or
rights of retention (Zuruckbehaltungsrechte) or otherwise, and
d) the guarantor waives his right to deposit (Hinterlegung) the amount
claimed.
2) For guarantees furnished by subcontractors or vendors that do not enter into
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individual contracts (e.g. the AGBG does apply):
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a) the bonds and guarantees qualify as a "Burgschaft" under German law;
b) payment by the guarantor be made free of any restriction or
condition, whether by way of set-off (Aufrechnung), counter-claim
(Widerklage), defense of voidability (Einrede der Anfechtbarkeit) or
rights of retention (Zuruckbehaltungsrechte) or otherwise, and
c) the guarantor waives his right to deposit (Hinterlegung) the amount
claimed.
Source: ADVANCED MICRO DEVIC, 10-K, March 20, 1997