Document:

<PAGE>

                                                                   EXHIBIT 10.24

AMD's
Stock Option Program
for Employees
Outside the U.S.
For options granted
after April 25, 2000
<PAGE>

Congratulations on being selected to receive a stock option award. AMD's success
is a direct result of the creativity, innovation, and hard work of employees
like you. In recognition of this, we maintain a stock option program, under
which you can benefit from AMD's long-term success as the company's common stock
price grows.

AMD limits the granting of stock options to those employees whose individual
contributions most influence AMD's performance and add to shareholder value. The
number of options you are granted reflects competitive compensation practices,
your position at AMD, and, most importantly, your individual performance.

WHAT ARE STOCK OPTIONS?

Stock options give you the right to buy shares of AMD common stock at the
"exercise price" within a specified number of years. You "exercise" your option
by purchasing the underlying shares any time after you "vest" in the option (see
How Your Stock Options Vest), but before the option expires.

The attractiveness of stock options lies in the potential for increases in the
market price of the company's common stock over time. For example, if you are
granted options to buy 100 shares of AMD stock at an exercise price of $35 per
share, and the market price of the stock rises to $45, then your "unrealized"
financial gain is $10 per share (the difference between the exercise price and
the current market price). To realize that gain, you first have to be vested in
those 100 options. If you are, you can exercise your options by buying the
stock. You can then hold the shares for potential future gain, or sell them in
the market at any time for the current market price. In this example, if you
exercise your options and sell the purchased shares when the market price moved
up to $50, you would realize a gain of $15 per share ($50 - $35).

Enclosed with this brochure is your stock option document. It gives the grant
date, exercise price, and the vesting and expiration dates for your options.

HOW YOUR STOCK OPTIONS VEST

You earn the right to exercise your stock options according to the vesting
schedule for your grant. Each stock option grant has its own vesting period. The
stock option document for your grant shows the vesting dates for your options.

The following table shows the typical vesting schedules. An initial grant is the
first grant to an eligible employee and an annual grant is a grant that can be
awarded each year subsequent to an initial grant.

                                                Percent of Granted Options
                                                   That Are Fully Vested
                                          --------------------------------------
Anniversary of                               Initial               Annual
Grant Date                                     Grant                Grant
--------------------------------------------------------------------------------
First*                                            40%                  25%
Second                                     +20% = 60%           +25% = 50%
Third                                      +20% = 80%           +25% = 75%
Fourth                                     +20% = 100%          +25% = 100%

*After the first year, awards vest in monthly increments over the remaining
time.

If you receive stock option grants in several years, their vesting periods will
overlap. For example, the following chart illustrates the vesting for a
hypothetical employee who receives an initial grant when he/she joins AMD and
then annual grants thereafter based on varying performance ratings:

Calendar     # of Options                   Options Vesting in Calendar Year
                                         --------------------------------------
  Year          Granted                    2       3       4       5       6
--------------------------------------------------------------------------------
   1              150                     60      30      30      30
   2              100                             25      25      25      25
   3              160                                     40      40      40
   4              200                                             50      50
   5              220                                                     55
 Total                                    60      55      95     145     170

The above vesting chart is based on continuous active service with AMD.
<PAGE>

IF YOU DIE OR BECOME DISABLED

If you have at least 15 years of AMD service and your AMD employment is
terminated because of your death or total disability, here's what happens on
your termination date:

 . If you are on an unpaid leave of absence, any options that would have become
  vested in the calendar year in which your leave began are immediately vested.

 . If you are not on an unpaid leave of absence, you become immediately vested in
  any options that would have become vested in that calendar year.

This accelerated vesting of options does not occur if your AMD employment is
terminated because of your death or disability and you have less than 15 years
of service.

IF AMD EXPERIENCES A "CHANGE IN CONTROL"

You become 100% vested in your outstanding options if AMD experiences a "change
in control," and your employment is terminated by AMD for any reason other than
for misconduct or, if applicable, by constructive termination within one year
after such a change. A "change in control" occurs when:

 . More than 20% of AMD has been acquired by a single person or entity,

 . Certain changes in the majority of AMD's Board of Directors occur during a
  two-year period,

 . A merger or consolidation of the company with or into another company,

 . Stockholders of the company approve a plan of complete liquidation, or

 . There is a sale or disposition of all or substantially all the company's
  assets.

IF YOU TAKE A LEAVE OF ABSENCE

You may not exercise any options during an unpaid leave of absence. Also, if
your unpaid leave of absence exceeds 30 consecutive days, the vesting dates for
your unvested options are automatically extended by the number of days by which
your unpaid leave exceeds 30 days. "Unpaid" means that AMD is not paying you a
salary. For more details, check with Treasury Services.
<PAGE>

EXERCISING YOUR STOCK OPTIONS

Once your options are vested, you can exercise them-- that is, you can purchase
AMD common stock at the exercise price. You have a limited number of years from
the date of grant to exercise the options and take advantage of any increase in
the price of AMD stock above the exercise price. Most grants have a ten-year
life. The document for your stock option grant discloses the date on which your
options expire.

Your final opportunity to purchase your vested options is the last regular
business day of AMD before their expiration date. If you are waiting until that
last day, be sure that Treasury Services receives your completed Stock Option
Exercise form before 5:00 p.m. local time in Sunnyvale, California.

If you leave AMD before the expiration date for your options, you have a limited
period of time after your termination date in which to exercise vested options.
See the section When You Leave AMD.

Treasury Services must receive your completed Stock Option Exercise form in
order for you to purchase your options. You should review your annual stock
option statement before exercising your vested options. (See the section Annual
Statements.) You are responsible for knowing which options can be exercised and
the expiration dates for your options.

The following describes the different ways to purchase vested AMD options that
have not expired. However, some countries have currency exchange restrictions.
You should check if local laws restrict or prohibit your ability to purchase
your options with cash.

   Cash Purchase

You can pay for the options yourself or arrange for your broker to pay for them.
On the next business day after receipt of your completed Stock Option Exercise
form, Treasury Services will notify you of the cost for the exercised options.
Within two weeks following the exercise date, Treasury Services must receive
from you either a certified check or bank wire for the exercise cost in U.S.
dollars. A stock certificate is issued to you usually within three weeks after
your payment is received by Treasury Services.

   Financing through a Broker (also known as "Same Day Exercise and Sale")

You can contact one of AMD's designated brokers to buy shares of AMD stock at
the exercise price and sell them at market price on the same day. You must
submit a completed Stock Option Exercise form to Treasury Services on the same
day that you contact the broker.

If you elect a "same day exercise and sale," you may:

 . Sell all of the shares from the exercised options. You will receive a check
  from the sale of the shares minus the cost of the exercised options and the
  broker's fee.

 . Sell enough of the shares acquired through the exercise of the options (at the
  market price) to cover the cost of exercising those options and the broker's
  fee. You then receive the balance of the AMD shares obtained through
  exercising the options.

 . Sell only the number of shares you decide on and receive the balance of the
  shares. If the shares sold do not cover all the costs of exercising the
  options, you must pay the balance through sending a certified check or bank
  wire to Treasury Services on the next business day following the exercise
  date.

You also can finance your option exercise through the broker and hold the
acquired shares for a later sale. The shares will be registered to and sent to
the broker.

   Stock Swap Exercise

You can use AMD shares you have owned at least six months to pay for the
exercise price of the options. To initiate a stock swap, you must complete and
submit a Share Withholding/Delivery Election form in addition to a Stock Option
Exercise form to Treasury Services. You may not pay the exercise price by
requesting that Treasury Services withhold some of the shares resulting from the
options being purchased.
<PAGE>

WHEN TO EXERCISE

It is entirely your decision when to exercise vested options, keeping in mind
the expiration date for your options. (See the sections Exercising Stock Options
and When You Leave AMD.)

The timing of an exercise and/or sale can have a large impact on any value you
ultimately obtain from the option. In deciding when to exercise, you may wish to
consult with your financial advisor, stockbroker, or reputable publications in
which stock market analysts voice their opinions about future potential stock
values. It is also prudent to consult with a tax advisor to determine the impact
of exercising stock options on your tax obligations. In some countries (for
example, the United Kingdom), favorable tax treatment may apply if you hold tax-
qualified stock options for a certain period after the date of grant or the date
on which you last exercised options.

TAXES

AMD is required by law to report all stock option transactions to both the U.S.
and foreign tax authorities. Tax regulations on stock options and selling shares
of a foreign company can be complex. In most countries, you owe no taxes when
your stock option grant is approved. However, you may be liable for taxes on the
gain you receive upon exercising your options. (The "gain" is the difference
between the market value of the shares of AMD common stock on your exercise date
and the exercise price of your options.) In certain countries you may owe taxes
when you become vested in your options, even if you do not purchase them. In
addition, when you sell your shares of AMD stock, any profit that you receive
(the difference between the sale price and the market price on your exercise
date) is subject to your country's tax requirements. We recommend that you
consult with a tax advisor to determine your potential tax obligations.

Withholding tax requirements vary by country. You are responsible for notifying
your local office when you exercise your options. Your local office will advise
if tax withholding is required and how you can satisfy this requirement.

QUALIFIED OR NON-QUALIFIED STOCK OPTIONS

Unless you are an employee in the U.K., your stock options are "non-qualified"
options. Most stock options for U.K. employees are granted from a qualified
stock option scheme. However, some U.K. employees have received or will receive
non-qualified stock options either because the market value of all their
outstanding stock options exceed the aggregate value allowed under a qualified
scheme, or because the grants are/were made from a non-qualified scheme or were
repriced. Contact Treasury Services if you are unsure whether you hold qualified
or non-qualified U.K. stock options.
<PAGE>

WHEN YOU LEAVE AMD

You forfeit all unvested options when you leave AMD. You normally have three
months from your termination date in which to exercise vested options that have
not expired. For example, if March 14 is your final day as an AMD employee, your
last day to purchase vested options is June 14 if it is a regular business day
at AMD. If June 14 is not a regular business day, the final day to buy your
options is the last regular AMD business day before June 14.

However, you have 12 months from your termination date to exercise vested
options if your termination is due to your total disability. Similarly, if you
die while employed at AMD, your beneficiary, or your estate if you have not
designated a beneficiary, has 12 months from the date of your death in which to
exercise your vested options.

If you are uncertain about the final day to purchase options, be sure to contact
Treasury Services at least several weeks before the date on which you think that
your right to exercise your options ends.

FORFEITING STOCK OPTIONS

Your stock options are forfeited under the earliest of these circumstances:

 . You do not exercise the options before their expiration date,

 . You are not vested to them when you leave AMD,

 . You do not exercise your options within the period for exercising them after
  you leave AMD, or

 . If you die while still an AMD employee and your beneficiary to whom the
  options were transferred does not exercise the options within 12 months after
  your death.

If you are terminated because of misconduct, AMD reserves the right to cancel
all your options, whether vested or unvested.

NO REINSTATEMENT OF FORFEITED STOCK OPTIONS IF REHIRED BY AMD

If you have a break in service with AMD, your non-vested options are canceled
and will not be reinstated, even if you are rehired the day after your break in
service.

ANNUAL STATEMENTS

Each year, you will receive from Treasury Services a statement detailing the
status of your stock options. This statement includes the number of options you
have been granted to date, their exercise prices, and their vesting and
expiration dates. Your statement also lists the transactions on options that you
have exercised.

Also enclosed with your statement are the forms that you must complete and
return to Treasury Services if you wish to purchase your options.

TREASURY SERVICES DEPARTMENT

Treasury Services is located at AMD's Sunnyvale, California office. The staff
can be contacted as follows:

Phone: 010-408-749-3790
Fax:   010-408-749-3106

Treasury Services' normal hours are between 8:00 a.m. to 5:00 p.m. U.S. Pacific
time during AMD's regular business day.

TRANSFER OF STOCK OPTIONS

Your stock options may be transferred only as follows:

 . By a court-issued qualified domestic relations order,

 . By your last will and testament, or

 . By the laws of descent and distribution if you left no valid will.

Stock options transferred by a qualified domestic relations order expire twelve
months after the date of transfer.

Any other transfer or assignment of your stock options will not be accepted and
gives AMD the right to terminate your options as of the date of the attempted
transfer or assignment.

CHANGES IN CAPITALIZATION OF AMD

The Board of Directors will adjust the number of shares or the class of stock
subject to your options if the out-standing number of AMD common stock changes
as a result of changes in the capitalization of the company. These changes in
capitalization include stock dividends, mergers, consolidations, re-
capitalization, or split-up, combinations or exchange of shares.
<PAGE>

                             FOR MORE INFORMATION

This brochure summarizes some of the important features of the current AMD stock
         option program. For more details, consult the official plan
            documents, your individual stock option documents, and
             the stock option plan prospectus, all of which can be
                       obtained from Treasury Services,
                     1 AMD Place, Sunnyvale, California.
                            The mailing address is
     Treasury Services, P.O. Box 3453, MS 106, Sunnyvale, CA 94088, U.S.A.

    In the case of any conflict between this brochure and the official plan
             documents, the official plan documents will govern.
         AMD reserves the right to amend or terminate the program in
              whole or in part, at any time and for any reason,
                    with or without notice to participants.

Participation in the AMD stock option program does not confer on any participant
 any rights whatsoever with respect to continued employment with the company.

                                                                 [AMD LOGO]
                                                             Benefits Department
                                                                   One AMD Place
                                                     P.O. Box 3453, Mailstop 181
                                                             Sunnyvale, CA 94088<PAGE>

                                                              EXHIBIT 10.50(a-4)

                                                                Redacted Version

                           AMENDMENT AGREEMENT NO. 3

                               February 20, 2001

                                by and between

                         AMD SAXONY MANUFACTURING GMBH

                                      and

                            AMD SAXONY HOLDING GMBH

                                      and

                               DRESDNER BANK AG

                                      and

                                   the Other
                       BANKS and FINANCIAL INSTITUTIONS
                                 named herein

                                      and

                         DRESDNER BANK LUXEMBOURG S.A.

                    _______________________________________

                                    TO THE

                           SYNDICATED LOAN AGREEMENT

                                     dated

                          11 March 1997 (As Amended)

                         AND OTHER OPERATIVE DOCUMENTS

                    _______________________________________

                    Baker & McKenzie/Doser Amereller Noack

                                   Frankfurt
<PAGE>

                                     INDEX
                                     -----

                                                                  Page

Preamble

(S) 1    Definitions

(S) 2    Amendment of the Loan Agreement

(S) 3    Amendment of the Security Documents

(S) 4    Condition Precedent

(S) 5    Representations and Warranties

(S) 6    Miscellaneous

                                       2
<PAGE>

                                   Schedules

Schedule 1    Marked Version of the Loan Agreement
Schedule 2    Amendment Agreement to Sponsors` Support Agreement
Schedule 3    Amendment Agreement to the AMD Saxonia Wafer Purchase
              Agreement
Schedule 4    Amendment Agreement to the AMD Holding Wafer Purchase
              Agreement
Schedule 5    Amendment Agreement to Sponsors` Guaranty
Schedule 6    Amendment Agreement to Sponsors` Subordination Agreement
Schedule 7    Amendment Agreement to AMD Inc. Subordination Agreement
Schedule 8    Marked Version of the AMD Saxonia Security Assignment of
              Current Assets
Schedule 9    Marked Version of the AMD Holding SecurityAssignment of
              Current Assets
Schedule 10   Marked Version of the AMD Saxonia Assignment of Contractual
              Rights
Schedule 11   Revolving Loan Facility Agreement
Schedule 12   Legal Opinion of O'Melveny & Myers LLP
Schedule 13   Legal Opinion of Norr, Stiefenhofer & Lutz
Schedule 14   Legal Opinion of Baker & McKenzie/Doser Amereller Noack
Schedule 15   Legal Opinion of White & Case, Feddersen

*** Confidential treatment has been requested as to certain portions of this
agreement.  Such omitted confidential information has been designated by an
asterisk and has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended, and the Commission's rules and regulations promulgated under the
Freedom of Information Act, pursuant to a request for confidential treatment.

                                       3
<PAGE>

             AMENDMENT AGREEMENT TO THE SYNCIDATED LOAN AGREEMENT
             ----------------------------------------------------

                       DATED 11 MARCH 1997 (AS AMENDED)
                       --------------------------------

                                by and between

1.    AMD SAXONY MANUFACTURING GMBH, Dresden, registered in the Commercial
      Register of the Dresden Amtsgericht [Local Court] HRB 13186,

                                    - hereinafter referred to as "AMD Saxonia" -

2.    AMD SAXONY HOLDING GMBH, Dresden, registered in the Commercial Register of
      the Dresden Amtsgericht HRB 13931

                                    - hereinafter referred to as "AMD Holding" -

3.    DRESDNER BANK AG,

                                 - hereinafter referred to as "Security Agent" -

4.    the other Banks and Financial Institutions named on the signature pages
      herein

                  - the parties referred to at 3 and 4 hereinafter each referred

                 to as a "Bank" or together as the "Banks", as the case may be -

and

5.    DRESDNER BANK LUXEMBOURG S.A.

                                            - hereinafter referred to as "Agent"

                                         or "Paying Agent", as the case may be -

                                   PREAMBLE
                                   --------

1.    On 11 March 1997, AMD Saxonia, Dresdner Bank AG (in its capacity as Agent
      and Security Agent), the Banks and Dresdner Bank Luxembourg S.A. (in its
      capacity as Paying Agent) entered into a Syndicated Loan Agreement with
      respect to loan facilities totalling DM 1,650,000,000 for the purpose of
      co-financing the Project Costs defined therein. On 1 July 1997, Dresdner
      Bank AG assigned its rights and duties from its role as Agent to Dresdner
      Bank Luxembourg S.A. pursuant to (S) 22.11 of the Syndicated Loan
      Agreement.

                                       4
<PAGE>

2.    In view of substantial technological changes and the increased financing
      requirements resulting therefrom, the financing obligations of AMD Holding
      and of AMD Inc. agreed in connection with the Syndicated Loan Agreement as
      well as other provisions of the Syndicated Loan Agreement and of the
      related documentation were changed and supplemented on 6 February 1998
      within the framework of Supplemental Agreements to the Syndicated Loan
      Agreement and the Operative Documents referred to therein.

3.    As a result of changes in the AMD Inc. Senior Secured Note Indenture, the
      Syndicated  Loan Agreement as well as the Sponsors' Support Agreement and
      the Sponsors' Loan Agreement as amended on 6 February 1998 were again
      changed and supplemented on 29 June 1999.

4.    In view of the development that has meanwhile occurred in the
      microprocessor production area and the further technical development of
      the manufacturing processes, additional investments are required which
      exceed the scope envisaged so far in the Syndicated Loan Agreement.

5.    The parties hereto agreed, inter alia, on the following changes in
      accordance with the terms of this Amendment Agreement. Facility B provided
      for in the Syndicated Loan Agreement as a reserve for Cost Overruns will
      not be drawn by AMD Saxonia but will be cancelled so that the total loan
      facility granted under the Syndicated Loan Agreement will be reduced by DM
      150,000,000 to DM 1,500,000,000. The total additional investment
      requirements remaining as expected will be funded . as follows:

      (i)   from the Cash Flow of AMD Saxonia which will be generated within the
            framework of the reimbursement obligations in accordance with the
            terms of the AMD Holding and AMD Saxonia Wafer Purchase Agreements
            as amended; and

      (ii)  by an additional interim financing to be provided by the Sponsors.
            to AMD Saxonia in the form of a subordinated revolving loan facility
            in an amount of up to US$ 500,000,000 (which may be provided in Euro
            or in US$).

      The Sponsors' Guaranty will not expire after Completion of the Project but
      continue to apply for the whole term of the Syndicated Loan Agreement and
      amount to the greater of (i) thirty-five per cent (35%) of the outstanding
      amount of

                                       5
<PAGE>

      the loan and (ii) DM 217,500,000 plus interest thereon and costs, but
      subject to a maximum amount of DM 600,000,000.

6.    The parties hereto also agreed to make certain changes to the Syndicated
      Loan Agreement as amended on 6 February 1998 and 29 June 1999 and in the
      Operative Documents referred to therein in accordance with the terms of
      this Amendment Agreement.

7.    In view of the circumstances and stipulations made in paragraphs 4, 5 and
      6 of the Preamble, the parties hereto agreed to change the Syndicated Loan
      Agreement as amended on 6 February 1998 and 29 June 1999 (hereinafter the
      "Loan Agreement") and the Operative Documents referred to therein in
      accordance with the following provisions.

                                     (S) 1

                                  Definitions

1.1   The individual terms defined in the Loan Agreement will have the same
      meanings when used in this Amendment Agreement, except where the context
      otherwise requires.

1.2   Unless the context requires otherwise, any reference to an Operative
      Document or a Project Agreement shall be a reference to such Document or
      Agreement as it shall have been, or from time to time be, amended,
      supplemented or replaced in accordance with the terms of the Loan
      Agreement and the respective Operative Document or Project Agreement.

                                     (S) 2

                        Amendment of the Loan Agreement

2.1   Subject to (S) 4, the Loan Agreement (including Schedules 1, 2, 6, 7, 8,
      9, 10, 14, 16, 17, 18, 21, 24 and 63) hereby is and will be amended and
      supplemented in accordance with the amendments marked in the version of
      the Loan Agreement (including the Schedules) attached hereto as Schedule
                                                                      --------
      1.
      -

                                       6
<PAGE>

2.2   Schedules 1, 2, 6, 8, 14 and 16 of the Loan Agreement hereby are and will
      be deleted and be replaced by the Schedules 1, 2, 6,8, 14 and 16 referred
      to in para. 2.1; Schedule 21 Part I hereby is and will be deleted without
      substitution; Schedule 21 Part II hereby is and will be amended and
      supplemented in accordance with Schedule 21 referred to in para. 2.1;
      Schedules 11, 12 and 13 of the Loan Agreement hereby are and will be
      deleted without substitution.

2.3   The land charge to be created pursuant to (S) 8.1.6 of the Loan Agreement
      has been extended by notarial declaration of 14 April 1999 to cover the
      real property registered in the Land Registry of Wilschdorf (folio 925),
      parcels numbers 706 and 707.

2.4   Pursuant to (S) 8.1.6 of the Loan Agreement, AMD Saxonia is obligated to
      create a first priority land charge. The land charge has, however, been
      registered in the Land Registry of Wilschdorf (folio 851) ranking after a
      real servitude in favor of the Energieversorgungscenter Dresden-
      Wilschdorf; the same holds true for the real property parcel number 707
      (folio 925) which is encumbered with a prior-ranking land charge in the
      amount of DM 2.8 million in favor of the City of Dresden. The parties
      hereto take note of this situation without, however, releasing AMD Saxonia
      from its obligation to create a first priority land charge.

2.5   In addition to the real property referred to in (S)(S) 5.1.4 and 8.1.6 of
      the Loan Agreement and in para. 2.3 above, AMD Saxonia acquired other real
      property in Boxdorf which is registered in the Land Registry, parcel
      number 426 (folio 649). The portion of the real property which will remain
      with AMD Saxonia after an intended partial sale and which will probably
      have the parcel number 710/3 shall also be encumbered by AMD Saxonia with
      a first priority land charge. However, in view of the small size and/or
      the small value of such piece of real property, the latter will not be
      included in the collective land charge which is already encumbering the
      other real property of AMD Saxonia. Therefore, AMD Saxonia undertakes to
      create on such piece of real property a first priority land charge in
      favor of the Security Agent, in accordance with (S) 8.1.6, with personal
      submission to foreclosure and with the amount of the land charge, which
      may not be lower than the value of the piece of real property, being
      determined by AMD Saxonia and the Security Agent by mutual agreement. The
      Banks authorize the Security Agent to do so.

                                       7
<PAGE>

2.6   The remaining provisions of the Loan Agreement together with the Schedules
      remain in force to their full extent.

2.7   Any reference in the Operative Documents to an Operative Document shall be
      a reference to the Operative Document as amended.

                                     (S) 3

                      Amendment of the Security Documents

3.1   Subject to (S) 4, the following Security Documents together with the
      Schedules hereby are and will be amended and supplemented as follows:

      (i)   the AMD Saxonia Security Assignment of Current Assets dated 25
            September 1997 in accordance with the amendments marked in the
            version attached hereto as Schedule 8;
                                       ----------

      (ii)  the AMD Holding Security Assignment of Current Assets dated 25
            September 1997 in accordance with the amendments marked in the
            version attached hereto as Schedule 9; and
                                       ---------------

      (iii) the AMD Saxonia Assignment of Contractual Rights dated 25 September
            1997 in accordance with the amendments marked in the version
            attached hereto as Schedule 10.
                               -----------

3.2   The Security Documents referred to in paragraphs 3.1 (i) through (iii)
      together with the Schedules shall, in all other respects, remain in force
      to the full extent.

                                     (S) 4

                              Condition Precedent

4.1   The validity of this Amendment Agreement is subject to the condition
      precedent of the Agent having confirmed to the Banks in writing that it
      received the documents set out in (S) 4.1.1 through (S) 4.1.14. The
      documents set out in paragraphs 4.1.8 through 4.1.14 must be satisfactory
      to the Agent in terms of content and form. The documents specified in (S)
      4.1.1 through (S) 4.1.10 must have been entered into and/or

                                       8
<PAGE>

      executed in a legally binding manner and their validity may not be subject
      to any conditions (except conditions the occurrence of which is connected
      with this Amendment Agreement):

      4.1.1  Amendment Agreement to Sponsors' Support Agreement pursuant to
             Schedule 2;
             ----------

      4.1.2  Amendment Agreement to the AMD Saxonia Wafer Purchase Agreement
             pursuant to Schedule 3;
                         ----------

      4.1.3  Amendment Agreement to the AMD Holding Wafer Purchase Agreement
             pursuant to Schedule 4;
                        ----------

      4.1.4  Amendment Agreement to Sponsors' Guaranty pursuant to Schedule 5;
                                                                   ----------

      4.1.5  Amendment Agreement to Sponsors' Subordination Agreement pursuant
             to Schedule 6;
                ----------

      4.1.6  Amendment Agreement to AMD Inc. Subordination Agreement pursuant to
             Schedule 7;
             ----------

      4.1.7  Revolving Loan Facility Agreement pursuant to Schedule 11;
                                                           -----------

      4.1.8  Written Confirmation of AMD Inc. Regarding the Unchanged Validity
             of the AMD Inc. Guaranty of 11 March 1997;

      4.1.9  Written Acceptance Confirmation of AMD Inc. and of AMD Saxonia
             regarding the amendment decision of the Guarantors.of 17 November
             2000;

      4.1.10 Written Approval of Sachsische Aufbaubank GmbH regarding the
             Amendment of the Loan Agreement and the other Operative Documents
             referred to therein;

      4.1.11 Legal Opinion of the Law Office O'Melveny & Myers LLP, Counsel to
             AMD Inc,. pursuant to Schedule 12 concerning, inter alia, the
                                   -----------
             Senior Secured Note Indenture of 1 August 1996 (as amended)
             referred to in (S) 15.1.13 of the Loan Agreement and the Loan and
             Security Agreement of 13 July 1999 (as amended) likewise referred
             to therein;

                                       9
<PAGE>

      4.1.12 Legal Opinion of the Law Office Norr, Stiefenhofer & Lutz, Counsel
             to the AMD Companies pursuant to Schedule 13;
                                              -----------

      4.1.13 Legal Opinion of the Law Office Baker & McKenzie/Doser Amereller
             Noack, Counsel to the Agent and to the Banks pursuant to Schedule
                                                                      --------
             14;
             --
      4.1.14 Legal Opinion of the Law Office White & Case, Feddersen, Counsel
             to the Agent and to the Banks pursuant to Schedule 15.
                                                       -----------

                                     (S) 5

                        Representations and Warranties

5.1  AMD Saxonia and AMD Holding represents and warrant to the Banks as follows:

     5.1.1  AMD Saxonia and AMD Holding have taken all necessary steps and
            obtained all necessary consents to enter into this Amendment
            Agreement and the Amendment Agreements to the Operative Documents
            and other documents referred to in (S) 3.1 and (S) 4.1.1 through (S)
            4.1.9 in a legally binding manner and to exercise its respective
            rights thereunder.

     5.1.2  the execution of this Amendment Agreement and of the Amendment
            Agreements to the Operative Documents referred to in (S) 3.1 and (S)
            4.1.1 through (S) 4.1.9 by AMD Saxonia, AMD Holding and AMD Inc. and
            the compliance by each of them of their obligations thereunder and
            the exercise by each of them of their rights thereunder:

            (i)   do not violate any provision of applicable law, any judgment
                  or any requirements or any approvals of any authority or the
                  like or contractual obligations or any other obligations
                  applicable to AMD Companies;

            (ii)  will not result in the termination or acceleration of any
                  other obligations of AMD Companies;

            (iii) will not result in an obligation of AMD Companies to create
                  any security in favor of any third party, save as contemplated
                  in the

                                      10
<PAGE>

                  Security Documents or in the Loan Agreement (as amended by
                  this Amendment Agreement).

      5.1.3  All Operative Documents entered into by AMD Companies and referred
             to in (S) 3.1 and (S) 4.1.1 through (S) 4.1.9 constitute legally
             binding obligations of AMD Saxonia, AMD Holding and/or AMD Inc.
             which are enforceable in accordance with their terms, subject, to
             the reservations made in the Legal Opinions. Those reservations
             comprise limitations on the enforceability of legal documents which
             are governed by German law or by U.S. federal or state law if and
             to the extent that express reservations have been made in this
             respect in the Legal Opinions to be delivered to and to be approved
             by the Agent pursuant to (S) 4.1.11 through (S) 4.1.14.

                                     (S) 6

                                 Miscellaneous

6.1   Pursuant to (S) 22.6 (iii) of the Loan Agreement, the Banks hereby agree
      to the naming by the Agent (with the consent of AMD Saxonia) of an
      insurance advisor other than Fenchurch Insurance Brokers Ltd., London.

6.2   This Amendment Agreement is part of the Loan Agreement. All references in
      the Loan Agreement and in the Operative Documents and all statements and
      declarations relating thereto shall apply in the same manner to this
      Amendment Agreement.

6.3   This Amendment Agreement and all documents referred to herein shall be
      deemed Operative Documents within the meaning of the Loan Agreement.

6.4   The parties hereto may sign several duplicate originals of this Amendment
      Agreement which, in each case, will together be deemed to be the original.

6.5   Paragraphs 25.1, 27, 28 and 29 of the Loan Agreement shall apply mutatis
      mutandis to this Amendment Agreement.

6.6   The references in the Operative Documents to the General Terms and
      Conditions of the Security Agent shall relate to the version applicable
      from time to time.

                                      11
<PAGE>

AMD SAXONY MANUFACTURING GMBH

/s/ James Doran
---------------

Managing Director

February 20, 2001

AMD SAXONY HOLDING GMBH

/s/ Thomas M. McCoy
-------------------

Managing Director

February 20, 2001

DRESDNER BANK AG,

(as Security Agent and Lending Bank)

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

Other Lending Banks:

KREDITANSTALT FUR WIEDERAUFBAU

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

DG BANK DEUTSCHE GENOSSENSCHAFTSBANK

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

LANDESBANK BADEN-WURTTEMBERG

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

                                      12
<PAGE>

SACHSEN LB LANDESBANK SACHSEN GIROZENTRALE

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

BAYERISCHE LANDESBANK GIROZENTRALE

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

HYPOVEREINSBANK LUXEMBOURG SOCIETE ANONYME

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

BHF-BANK AKTIENGESELLSCHAFT

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

COMMERZBANK AKTIENGESELLSCHAFT Filiale Dresden

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

DSL BANK DEUTSCHE SIEDLUNGS- UND LANDESRENTENBANK

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

HAMBURGISCHE LANDESBANK - GIROZENTRALE -

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

                                      13
<PAGE>

IKB DEUTSCHE INDUSTRIEBANK AG

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

LANDESBANK RHEINLAND-PFALZ - GIROZENTRALE

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

ABN AMRO BANK (DEUTSCHLAND) AG, Frankfurt

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

CREDITANSTALT AG

(formerly CREDITANSTALT-BANKVEREIN)

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

THE SUMITOMO BANK, LIMITED, Niederlassung Dusseldorf

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

BANK AUSTRIA CREDITANSTALT DEUTSCHLAND AG

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

DRESDNER BANK LUXEMBOURG S.A.

(as Agent and Paying Agent)

/s/ Marcus Nelgen  /s/ Robert von Finckenstein
----------------------------------------------

                                      14
<PAGE>

                                  Schedule 1

                     Marked Version of the Loan Agreement
   (including Schedules 1, 2, 6, 7, 8, 9, 10, 14, 16, 17, 18, 21, 24 and 63)

                                      15
<PAGE>

English translation of the legally
binding German Loan Agreement as amended.
Translation prepared for convenience only.

                           SYNDICATED LOAN AGREEMENT

                                11 March 1997,

   as amended by Supplemental Agreements dated 6 February 1998, 29 June 1999

                                      and

                               20 February 2001

                                    between

                         AMD SAXONY MANUFACTURING GMBH
                                 -as Borrower-

                                      and

                               DRESDNER BANK AG
                             - as Security Agent -

                                      and

                  THE OTHER BANKS AND FINANCIAL INSTITUTIONS
                                 named herein

                                 -as Lenders-

                                      and

                         DRESDNER BANK LUXEMBOURG S.A.
                         - as Agent and Paying Agent -

                    Baker & McKenzie/Doser Amereller Noack

                                   Frankfurt
<PAGE>

                                     INDEX
                                     -----
<TABLE>
<CAPTION>

Paragraph                                                             Page
---------                                                             ----
<S>            <C>                                                    <C>

(S) 1          Definitions and Interpretation                            6
(S) 2          Facilities                                               13
(S) 3          Purpose                                                  14
(S) 4          Utilisation of the Facilities                            14
(S) 5          Conditions to Drawing                                    16
(S) 6          Interest, Commitment Fee, Payments                       23
(S) 7          Term and Repayment                                       27
(S) 8          Security                                                 28
(S) 9          Illegality                                               31
(S) 10         Market Disruption; Alternative method of Calculation     32
(S) 11         Increased Costs                                          33
(S) 12         Indemnity                                                34
(S) 13         No Deductions or Withholdings                            35
(S) 14         Continuity Clause                                        36
(S) 15         Representations and Warranties                           36
(S) 16         Reporting and Information Requirements                   40
(S) 17         Covenants                                                42
(S) 18         Project Budget; Project Schedule                         49
(S) 19         Project Accounts                                         50
(S) 20         Consent of the Banks                                     50
(S) 21         Termination of the Facilities by the Banks               51
(S) 22         Agency Provisions                                        56
(S) 23         Administration of Security                               59
(S) 24         Paying Agent                                             62
(S) 25         Costs                                                    63
(S) 26         Assignment; Sub-participations                           64
(S) 27         Miscellaneous                                            64
(S) 28         Governing Law                                            69
(S) 29         Jurisdiction                                             69
</TABLE>

                                       2
<PAGE>

                                   Schedules

Schedule 1     Commitments of the Banks
Schedule 2     Drawdown Schedule
Schedule 3     Drawdown Notice
Schedule 4     Interest Rate Notice
Schedule 5     Notice of Prepayment
Schedule 6     Project Budget
Schedule 7     Project Schedule / Project Phases
Schedule 8     Quarterly Status Report
Schedule 9     [Scheduled Project Phase] Technical Completion Certificate
                 (Obligors)
Schedule 10    [Scheduled Project Phase] Technical Completion Certificate
                 (Technical Advisor)
Schedule 11    [left intentionally blank]
Schedule 12    [left intentionally blank]
Schedule 13    [left intentionally blank]
Schedule 14    Management Plan
Schedule 15    Disclosure Schedule
Schedule 16    Statement of Use and Source of Funds
Schedule 17    Financial Covenants
Schedule 18    Certificate of Compliance (Financial Covenants)
Schedule 19    Statement to Report of the Technical Advisor
Schedule 20    Governmental Approvals, Permits and Measures
Schedule 21    Confirmation of Auditor
Schedule 22    Insurance Provisions
Schedule 23    Cash Equivalent Investments

Schedule 24    Guaranty Decision
Schedule 25    AMD/Dresdner Subsidy Agreement
Schedule 26    SAB/Dresdner Subsidy Agreement

Schedule 27    AMD Inc. Guaranty
Schedule 28    Sponsors' Support Agreement
Schedule 29    Sponsors' Loan Agreement
Schedule 30    Sponsors' Subordination Agreement
Schedule 31    Sponsors' Consent and Agreement
Schedule 32    Sponsors' Guaranty

Schedule 33    AMD Holding Wafer Purchase Agreement
Schedule 34    AMD Holding Research, Design and Development Agreement
Schedule 35    AMD Saxonia Wafer Purchase Agreement
Schedule 36    AMD Saxonia Research, Design and Development Agreement
Schedule 37    Management Service Agreement
Schedule 38    License Agreement
Schedule 39    Design/Build Agreement; Contractors' Consent and Agreement
Schedule 40    Material Equipment Supply/Service Contracts; Consent and
                 Agreement

Schedule 41    AMD Inc. Share Pledge Agreement

                                       3
<PAGE>

Schedule 42    AMD Inc. Subordination Agreement

Schedule 43    AMD Saxonia Land Charge
Schedule 44    AMD Saxonia Security Assignment of Current Assets
Schedule 45    AMD Saxonia Security Assignment of Fixed Assets
Schedule 46    AMD Saxonia Assignment of Insurances
Schedule 47    AMD Saxonia Global Assignment
Schedule 48    AMD Saxonia Charge of Project Accounts
Schedule 49    AMD Saxonia Assignment of Contractual Rights
Schedule 50    AMD Saxonia Assignment (U.S.A.)
Schedule 50a   AMD Saxonia Hedging Agreement

Schedule 51    AMD Holding Share Pledge Agreement
Schedule 52    AMD Holding Security Assignment of Current Assets
Schedule 53    AMD Holding Global Assignment
Schedule 54    AMD Holding Charge of Bank Accounts
Schedule 55    AMD Holding Assignment of Contractual Rights
Schedule 56    AMD Holding Assignment (U.S.A.)

Schedule 57    Legal Opinion of Bronson, Bronson & McKinnon LLP (Indenture,
                 Credit Agreement)
Schedule 58    Legal Opinion of O'Melveny & Myers LLP
Schedule 59    Legal Opinion of Norr Stiefenhofer & Lutz
Schedule 60    Legal Opinion of Doser Amereller Noack/Baker & McKenzie
Schedule 61    Legal Opinion of Feddersen Laule Scherzberg & Ohle Hansen
                 Ewerwahn

Schedule 62    General Terms and Conditions
Scheduel 63    Maximum 65/35 Guaranty Amount

                                       4
<PAGE>

                           SYNDICATED LOAN AGREEMENT
                           -------------------------
                                    between

1.   AMD SAXONY MANUFACTURING GMBH, Dresden, registered in the Commercial
     Register of the Dresden County Court HRB 13186,

                                    - hereinafter referred to as "AMD Saxonia" -
                                                                 - as Borrower -

2.   DRESDNER BANK AG in Dresden,

        - hereinafter also referred to as "Security Agent", as the case may be -

3.   The Banks and financial institutions listed in Schedule 1

               - the parties referred to at 2 and 3 hereinafter each referred to
                    as a "Bank" or together as the "Banks", as the case may be -
                                                                 - as Lenders -.

     and

4.   DRESDNER BANK LUXEMBOURG S.A.

                 - hereinafter referred to as the "Agent" or the "Paying Agent",
                                                            as the case may be -

                                   PREAMBLE
                                   --------

1.   AMD Saxonia proposes to construct, own and operate a fabrication facility
     in Dresden for the manufacture of microchip silicon wafers (the
     "Fabrication Facility") together with an integrated research and
     development center (the "Design Center") (which together are referred to as
     the "Project"). AMD Saxonia is a wholly owned subsidiary of AMD Saxony
     Holding GmbH domiciled in Dresden, registered in the Commercial Register of
     the Dresden County Court under HRB 13931 ("AMD Holding") whose sole
     shareholder is Advanced Micro Devices, Inc., a Delaware corporation of One
     AMD Place, Sunnyvale, California 94088 - 3453 ("AMD Inc.").

2.   The investment cost required for implementation of the Project is to be
     partially financed in an amount of up to DM 1,500,000,000 through the
     credit facilities made available to AMD Saxonia on and subject to the terms
     and conditions of this syndicated loan agreement (the "Agreement").

3.   AMD Inc. has made available to AMD Saxonia, via AMD Holding, equity in the
     form of ordinary share capital in an aggregate amount of DM 217,550,000,
     together with subordinated loans pursuant to the terms of the Sponsors'
     Support Agreement and the Sponsors' Loan Agreement, totalling in aggregate
     DM 645,000,000 as at 31 December 1999. Furthermore, AMD Inc. has undertaken
     to make available to AMD Saxonia

                                       5
<PAGE>

     subordinated revolving loans in an aggregate amount of US$ 500,000,000
     pursuant to the Revolving Loan Facility Agreement (as defined below) to
     finance the general corporate funding requirements of AMD Saxonia.

4.   The Free State of Saxony has agreed to provide regional aid for the Project
     comprising (i) a dedicated purpose investment grant in an aggregate amount
     of DM 476,687,000 (which together with investment subsidies in an aggregate
     amount of DM 23,813,000 totals an aggregate amount of DM 500,500,000), and
     (ii) a dedicated purpose interest subsidy in an amount of DM 300,000,000
     which in each case will be paid to AMD Saxonia by Dresdner Bank AG in
     Dresden, in its capacity as house bank.

5.   The Banks have agreed to make available to AMD Saxonia the facilities
     referred to above on and subject to the following terms and conditions.

IT IS AGREED AS FOLLOWS:

                                     (S) 1
                        Definitions and Interpretation

1.1  Definitions of terms not defined above are as follows:

AMD/Dresdner Subsidy Agreement (AMD/Dresdner Zuschussvertrag):
     the agreement between AMD Saxonia and Dresdner Bank AG in its capacity as
     house bank to AMD Saxonia, in the form set out in Schedule 25.
                                                       -----------

AMD Companies (AMD-Gesellschaften):
     together AMD Saxonia, AMD Holding and AMD Inc.

AMD Holding Wafer Purchase Agreement:
     the agreement between AMD Holding and AMD Inc., in the form set out in
     Schedule 33.
     -----------

AMD K6 microprocessor:
     the Microsoft Windows compatible general purpose microprocessor under
     development by AMD Inc. to compete with Intel Corporation's Pentium Pro
     microprocessor.

AMD Saxonia Wafer Purchase Agreement:
     the agreement between AMD Saxonia and AMD Holding, in the form set out in
     Schedule 35.
     -----------

                                       6
<PAGE>

Available Revolving Loan Facility Amount:
     means, on any date, any amount (which must be positive) of:

     (i)  the Total Revolving Loan Commitment Amount on such date;

     less

     (ii) the aggregate unpaid principal amount of all Revolving Loans
          outstanding on such date.

Auditor (Wirtschaftsprufer):
     Ernst & Young Wirtschaftsprufungsgesellschaft mbH or such other firm of
     auditors charged with duties relating to the Project as may be appointed by
     AMD Saxonia with the consent of the Agent, such consent not to be
     unreasonably withheld.

Banks' Auditor (Wirtschaftsprufer der Banken):
     BDO Deutsche Warentreuhand AG Wirtschaftsprufungsgesellschaft or such other
     firm of auditors charged with duties relating to the Project as may be
     appointed by the Banks with the consent of AMD Saxonia, such consent not to
     be unreasonably withheld.

Banking Day (Bankarbeitstag):
     each day on which banks are generally open for business in London,
     Frankfurt am Main, Dresden and Luxembourg.

Capital Expenditure (Investitionskosten):
     acquisition and manufacturing costs in respect of fixed and movable assets
     in accordance with (S) 266 2 A II of the Commercial Code and acquisition
     costs for intangible assets in accordance with (S) 266 2 A I of the
     Commercial Code, to the extent the same have a useful operational life of
     more than one year (not being expenditures chargeable to the profit and
     loss account).

Completion (Fertigstellung):
     the date on which the initial satisfaction of all conditions set forth in
     the Technical Completion Certificate (Obligors) and the Technical
     Completion Certificate (Technical Advisor) set out in Schedules 9 and 10 is
                                                           -----------     --
     confirmed to the Agent by the submission of properly executed originals of
     such Certificates.

Disclosure Schedule:
     the list of matters disclosed by AMD Saxonia set out in Schedule 15.
                                                             -----------

Drawdown Notice (Auszahlungsverlangen):
     a Drawdown Notice in the form of the specimen set out in Schedule 3.
                                                              ----------

Drawdown Schedule (Auszahlungsplan):
     the drawdown schedule set out in Schedule 2, as the same may be revised in
                                      ----------
     accordance with the Project Budget.

Equipment Supply Contract (Liefervertrag):

                                       7
<PAGE>

     each agreement (also in the form of an order) between AMD Saxonia and
     suppliers (including AMD Inc. or one of its affiliates) relating to the
     acquisition by, and delivery to, AMD Saxonia of fixed or tangible current
     assets for the Project but excluding Excepted Software Agreements.

Event of Default (Kundigungsgrund):
     any event which would entitle a party to an Operative Document, possibly
     after the giving or expiry of notice and/or lapse of time, to terminate the
     relevant Operative Document.

Excepted Software Agreements (Ausgenommene Softwarevertrage):
     means software licences and software service agreements entered into by AMD
     Saxonia which are used exclusively:

     (i)   for financial planning, business administration systems and similar
           ancillary administrative functions and which are not linked to, or
           connected with (a) the production process in the Fabrication
           Facility; (b) general bookkeeping and invoicing and (c) production
           planning; or

     (ii)  in the Design Center.

Facilities (Kredite):
     as defined in (S) 2.1.

Guarantors (Burgen):
     the Federal Republic of Germany and the Free State of Saxony in their
     respective capacities as guarantors pursuant to the 65/35 Guaranty.

Guaranty Decision (Burgschaftsentscheidung):
     the decision dated 2 July 1996 set out in Schedule 24 concerning the
                                               -----------
     guaranty application made by AMD Saxonia, including the following
     documents:

     (i)   the specimen credit agreement  F 13.09.1990 (1993 Edition)
           Federal/State or THA;

     (ii)  the General Terms and Conditions applicable to the assumption of
           Guaranties by the Federal Republic of Germany and the States of the
           Accession Territory (States) in the edition dated F 04.01.1993
           Federal/State;

     (iii) Notes relating to applications for guaranties and loans of the
           Treuhandanstalt Berlin and/or Federal and State guaranties for
           projects in the Accession Territory in the edition dated 1993 F
           12.10.1990;

     (iv)  the Memorandum of Understanding ("Gemeinsame Feststellungen") of 19
           February 1997, the Amendment Decision of 12 December 1997 and the
           letter from C&L Deutsche Revision AG dated 5 January 1998; and

                                       8
<PAGE>

     (v)   the letters from C&L Deutsche Revision AG to Dresdner Kleinwort
           Benson and Dresdner Kleinwort Wasserstein, respectively, dated 17
           November 2000 and 7 February 2001.

65/35 Guaranty (65/35 Burgschaft):
     the several maximum amount shortfall guaranties issued by each of the Free
     State of Saxony (26%) and the Federal Republic of Germany (39%) in
     accordance with the Guaranty Decision up to a maximum aggregate amount of
     65 % of the Facilities (in aggregate DM 975,000,000), together with the
     shortfall of interest and costs, vested with a first right of satisfaction
     in favour of the Banks over all security granted by the AMD Companies as
     security for the Banks' risk of recovery (but subject to a set off of 65%
     of payments made (if any) under the Sponsors' Guaranty in the form of
     Schedule 32, as amended, to this Agreement against the Guarantors'
     ------------
     obligations under the aforesaid shortfall guaranties).

Insurance Advisor (Versicherungsberater):
     Fenchurch Insurance Brokers Ltd., London or such other insurance advisor as
     may from time to time be appointed by the Agent with the consent of AMD
     Saxonia, which consent shall not be unreasonably withheld.

Interest Period (Zinsperiode):
     the interest periods to be designated for individual advances, in each case
     in accordance with (S)(S) 6.1 to 6.4.

Lending Office (kreditausreichende Geschaftsstelle):
     the lending office of each Bank referred to in Schedule 1 to this
                                                    ----------
     Agreement.

LIBOR-Rate (LIBOR-Satz):
     the LIBOR-rate so defined in (S) 6.1.1.

Management Plan:
     the management plan in the form set out in Schedule 14.
                                                -----------

Material Service Contract (wesentlicher Leistungsvertrag):
     each Service Contract

     (i)   pursuant to which AMD Saxonia incurs obligations in aggregate in
           excess of DM 2,500,000 during the term of the contract, or

     (ii)  which has an initial term in excess of 12 months, or which has an
           indefinite term, and in either case cannot be terminated by AMD
           Saxonia on less than 12 months' notice; or

     (iii) which is listed in Part I of Schedule 40.
                                         -----------

                                       9
<PAGE>

Material Equipment Supply Contract (wesentlicher Liefervertrag):
     is each Equipment Supply Contract:

     (i)   pursuant to which AMD Saxonia incurs obligations in aggregate in
           excess of DM 3,750,000, or

     (ii)  which has an initial term in excess of 12 months, or which has an
           indefinite term, and in either case cannot be terminated by AMD
           Saxonia on less than 12 months' notice; or

     (iii) which is listed in Part I of Schedule 40.
                                        ------------

Minimum Liquidity Covenant (Mindestliquiditatskennzahl):
     as defined in Schedule 17, (S) 4.

Operative Documents (Transaktionsdokumente):
     each of the following:

     (i)   the Project Agreements;

     (ii)  this Agreement, the Sponsors' Support Agreement, the Sponsors' Loan
           Agreement in the form set out in Schedule 29, the Security Documents,
                                            -----------
           the Sponsors' Consent and Agreement in the form set out in Schedule
                                                                      --------
           31, the AMD Saxonia Hedging Agreement in the form set out in Schedule
           --                                                           --------
           50a, the AMD/Dresdner Subsidy Agreement, the SAB/Dresdner Subsidy
           ---
           Agreement, the Sale and Settlement Agreement between AMD Saxonia and
           the City of Dresden dated 11 June 1996, together with amendments
           dated 25 October 1996 and 28 February 1997, and the Revolving Loan
           Facility Agreement;

     (iii) the Loan and Security Agreement dated as of July 13, 1999, as
           amended, between, inter alia, AMD Inc. and the Bank of America
           National Trust and Savings Association, the AMD Inc. Senior Secured
           Note Indenture dated as of 1 August 1996, as amended, between AMD
           Inc. and United States Trust Company of New York, as trustee, the
           Management Plan, the Project Budget, the Project Schedule, the Plans
           and Specifications, the Information Memorandum of AMD Saxonia of
           September 1996, the [Scheduled Project Phase] Technical Completion
           Certificates (Obligors), the [Scheduled Project Phase] Technical
           Completion Certificates (Technical Advisor), in the form set out in
           Schedules 9 and 10, the Statement of the Use and Source of Funds, in
           -----------     --
           the form set out in the Schedule 16, and each Consent and Agreement
                                   -----------
           required pursuant to the agreements referred to in this definition in
           the form set out in Part II of Schedule 40, Annex 3 to Schedule 49,
                                          -----------             -----------
           Annex 3 to Schedule 55 or in such other form to which the Agent has
                      -----------
           consented; and

     (iv)  all other Operative Documents within the meaning of the Sponsors'
           Support Agreement and each other instrument or document designated by
           the Agent (with the consent of AMD Saxonia) as an Operative Document
           under this Agreement or the Sponsors' Support Agreement.

                                      10
<PAGE>

Plans and Specifications (Plane und Spezifikationen):
     the plans and specifications to be prepared by AMD Saxonia and to be
     approved by the Technical Advisor, the Agent and each Sponsor for the
     fitting out of the Plant and the Design Center, as the same may be amended
     from time to time with the consent of each of the AMD Companies and the
     Agent. Amendments which do not reduce or affect the value of the Plant and
     the Design Center or the capacity and purpose of the Plant as set out in
     the Plans and Specifications originally approved, shall not require the
     consent of the Agent.

Project Accounts (Projektkonten):
     as defined in (S) 19.1.

Project Agreements (Projektvertrage):
     the AMD Saxonia Wafer Purchase Agreement, the AMD Holding Wafer Purchase
     Agreement, the AMD Saxonia Research, Design and Development Agreement, in
     the form set out in Schedule 36, the AMD Holding Research, Design and
                         -----------
     Development Agreement, in the form set out in Schedule 34, the Management
                                                   -----------
     Service Agreement, in the form set out in Schedule 37, the License
                                               -----------
     Agreement, in the form set out in Schedule 38, the Design/Build Agreement,
                                       -----------
     in the form set out in Schedule 39, the Equipment Supply Contracts, the
                            -----------
     Service Contracts, the AMD Inc. Guaranty, in the form set out in Schedule
                                                                      --------
     27 and each other instrument or document designated by the Agent (with the
     --
     consent of AMD Saxonia) as a Project Agreement for the purposes of this
     Agreement.

Project Budget (Projektbudget):
     the budget set out in Schedule 6, including such amendments thereto made
                           ----------
     with the consent of the Agent in accordance with (S) 18.2 of this
     Agreement.

Project Costs (Projektkosten):
     all Capital Expenditure and other costs which are incurred by AMD Saxonia
     in connection with the Project.

Project Phase (Projektabschnitt):
     each project phase set out in the Project Schedule contemplated for the
     implementation of the Project.

Project Schedule (Projektzeitplan):
     the timetable in the form set out in Schedule 7, including amendments
                                          ----------
     thereto made with the consent of the Agent in accordance with (S) 18.2 of
     this Agreement.

Reference Rate (Basissatz):
     the reference rate so defined in (S) 6.1.1.

Reference Banks (Referenzbanken):
     the Agent together with Commerzbank AG and ABN AMRO Bank (Deutschland) AG
     or such other Banks designated by the Agent in their stead, subject to the
     approval of AMD Saxonia, such approval not to be unreasonably withheld.

                                      11
<PAGE>

Revolving Loans:
     the subordinated unsecured revolving loans made by the Sponsors under the
     terms of the Revolving Loan Facility Agreement.

Revolving Loan Facility Agreement:
     the US$ 500,000,000 subordinated unsecured revolving loan facility
     agreement dated 20 February 2001 between AMD Inc., AMD Holding and AMD
     Saxonia.

SAB/Dresdner Subsidy Agreement (SAB/Dresdner Zuwendungsvertrag):
     the agreement between the Sachsische Aufbaubank GmbH, Dresden and Dresdner
     Bank AG, Dresden in its capacity as house bank to AMD Saxonia, in the form
     set out in Schedule 26.
                -----------

Security Documents (Sicherheitenvertrage):
     the agreements and other documents referred to in (S) 8.1.

Service Contract (Leistungsvertrag):
     each contract in respect of services to be performed in favour of AMD
     Saxonia (with the exception of the AMD Saxonia Wafer Purchase Agreement,
     the Management Service Agreement as set out in Schedule 37 and employment
                                                    -----------
     contracts) which is not an Equipment Supply Contract but excluding Excepted
     Software Agreements.

Sponsors (Sponsoren):
     together, AMD Inc. and AMD Holding.

Sponsors' Support Agreement:
     the agreement entered into between AMD Inc., AMD Holding, the Agent and the
     Security Agent entitled "Sponsors' Support Agreement", in the form set out
     in Schedule 28.
        -----------

Subsidy Agreement (Zuschussvertrag/Zuwendungsvertrag):
     together, the AMD/Dresdner Subsidy Agreement and the SAB/Dresdner Subsidy
     Agreement.

Technical Advisor (Technischer Berater):
     Fraunhofer Institut fur Siliziumtechnologie, Itzehoe, or such other
     technical advisor as may be appointed by the Agent with the consent of AMD
     Saxonia, which consent shall not be unreasonably withheld.

Total Revolving Loan Commitment Amount:
     means US$ 500,000,000 (five hundred million US Dollars) or the "Euro
     Equivalent" (under, and as defined therein) thereof, or such reduced amount
     as shall have been agreed upon by each of the Sponsors, AMD Saxonia, the
     Agent, and the Banks.

US GAAP:
     the generally accepted accounting principles as set forth from time to time
     in the opinions and pronouncements of the United States Accounting
     Principles Board and the American Institute of Certified Public Accountants
     and statements and pronouncements of the

                                      12
<PAGE>

     Financial Accounting Standards Board (or agencies with similar functions of
     comparable stature and authority within the U.S. accounting profession),
     which are applicable to the circumstances as of the date of determination.

1.2  The terms referred to in the introduction to this Agreement, in the
     Preamble and in (S) 1.1 above shall, except where the context otherwise
     requires, have the same meanings when used in this Agreement. Unless the
     context requires otherwise, such terms shall also have such meanings when
     used in agreements, written notifications, confirmations and other
     documents which are issued pursuant to the terms of this Agreement. Unless
     the context requires otherwise, any reference to an Operative Document or a
     Project Agreement shall be a reference to such Document or Agreement as it
     shall have been, or from time to time be, amended, varied, re-issued,
     replaced, novated or supplemented, in each case, in accordance with its
     terms and this Agreement.

                                     (S) 2
                                  Facilities

2.1  The Banks hereby agree to make available to AMD Saxonia a long term
     investment loan in an amount of up to DM 1,500,000,000 (in words: one
     billion five hundred million Deutsche Marks) (hereinafter "Facility A" or
     the "Facilities", as the case may be). The Facilities will be made
     available by each of the Banks in an amount corresponding to its commitment
     as set out in Schedule 1, as amended.
                   ----------

2.2  Each Bank shall make available its respective commitment under the
     Facilities pursuant to (S) 2.1 and Schedule 1, separately and independently
                                        ----------
     from each other Bank, through its Lending Office. AMD Saxonia may draw the
     Facilities from all the Banks only in the proportion of their respective
     commitments in accordance with (S) 2.1 and Schedule 1. No Bank shall be
                                                ----------
     liable to provide or make available any advance in respect of amounts to be
     provided or made available by the other Banks; any joint and several
     liability of the Banks is hereby excluded. The Paying Agent shall be
     obliged to distribute to AMD Saxonia the advances to be made by the other
     Banks only to the extent that the Paying Agent has in fact received payment
     of such advances. Each Bank shall have a claim against AMD Saxonia in the
     amount of advances made by such Bank, secured pro rata by the security to
     be granted in accordance with the terms and conditions of this Agreement.

2.3  The failure by any Bank to comply with its obligations under this Agreement
     shall not affect either the enforceability of this Agreement as a whole or
     the obligations of any other party.  In such case, AMD Saxonia shall have a
     claim solely against the defaulting Bank.

                                     (S) 3
                                    Purpose

3.1  Facility A shall be used only for the purpose of the partial financing of
     the Project Costs. Utilisation of Facility A to finance Project Costs which
     are not Capital Expenditure is

                                      13
<PAGE>

       permitted only up to a maximum amount of DM 100,000,000 and only in
       respect of costs incurred before 1 January 1999.

3.2    The use and source of funds in respect of each Project Phase shall be
       evidenced by furnishing to the Agent a statement of the use and source of
       funds, in the form set out in Schedule 16, certified by the Auditor, such
                                     -----------
       statement to be delivered simultaneously with the Scheduled Project Phase
       Technical Completion Certificates pursuant to Schedules 9 and 10 for the
                                                     -----------     --
       relevant Project Phase and in any event promptly after the expiry of each
       calendar quarter, save as may, in individual cases, be otherwise agreed
       with the Agent.

                                     (S) 4
                         Utilisation of the Facilities

4.1    To the extent that all the conditions precedent set out in (S)5 are
       satisfied, the Facilities may be drawn on and subject to the following
       terms and conditions by the delivery to the Paying Agent, with a copy to
       the Agent, of a written Drawdown Notice to be received by the Paying
       Agent, in the case of the first Drawdown Notice at least ten (10) Banking
       Days before the drawdown date and, in the case of any other Drawdown
       Notice five (5) Banking Days before the drawdown date, set out in such
       notice:

4.1.1  Facility A
       ----------

       Prior to Completion, advances shall be made up to the cumulative limit in
       each Project Phase set out in the Drawdown Schedule in accordance with
       the Project Schedule. Such limit and any advances drawn after Completion
       shall not, however, without the prior written consent of the Guarantors,
       be greater than the maximum guaranty amount for any calendar year
       prescribed by the Guarantors pursuant to Schedule 63. Advances shall be
       in minimum amounts of DM 15,000,000 and in integral multiples of DM
       5,000,000 or in an equal amount to the undrawn portion of Facility A. No
       more than one advance may be made in any calendar month.

       Drawdowns in any Project Phase are permitted only in the amount of
       Project Costs which have been incurred during the same Project Phase, as
       the same are documented by invoices and other supporting evidence to be
       furnished together with the Drawdown Notice, as required below. Drawdowns
       in a current Project Phase are however permitted in respect of Project
       Costs which are shown to have been incurred in respect of an invoice for
       goods or services performed or delivered, submitted in the last thirty
       days prior to the end of a prior Project Phase and which have been
       included in full in the first Drawdown Notice of such current Project
       Phase. The preceding two sentences shall not apply to drawdowns requested
       following Completion.

       Drawdown Notices, and the confirmation contained therein from AMD Saxonia
       in the form set out in Schedule 3, shall be furnished to the Agent and
                              ----------
       the Paying Agent at the same time. The following documents shall be
       furnished to the Agent together with relevant Drawdown Notice:

                                      14
<PAGE>

       (i)   written confirmation of the Managing Directors (Geschaftsfuhrung)
             of AMD Saxonia and an authorised representative of AMD Inc. that
             the conditions precedent referred to in (S)(S) 5.2.2 to 5.2.4 with
             respect to it have been satisfied at the time of the Drawdown
             Notice;

       (ii)  in respect of drawdowns requested prior to Completion only, unless
             the Agent has waived the same, copies of invoices and a description
             in reasonable detail of the deliveries and services performed in
             respect of amounts which are at least equal to the amount proposed
             to be drawn. Project Costs which are not Capital Expenditure may be
             supported by evidence other than invoices, in such form as is
             reasonably satisfactory to the Agent;

       (iii) in respect of drawdowns requested prior to Completion only, written
             confirmation of the Auditor that the amounts invoiced are, or were,
             to the extent already paid, due and any contractually agreed
             retentions and other deductions, such as discounts, have been
             deducted in each case, in the form set out in Schedule 21, as
                                                           -----------
             amended.

       Amounts drawn and subsequently repaid may not be reborrowed.

4.1.2  [left intentionally blank]

4.1.3  [left intentionally blank]

4.2    Drawings of the Facilities are not permitted after 29 June 2001.

4.3    Drawings under the Facilities shall be permitted only to the extent that
       the making of an advance would not result in the total amount advanced by
       the Banks exceeding by more than three times the total amount paid up on
       the ordinary share capital of AMD Saxonia and the total amount of
       subordinated loans advanced to AMD Saxonia (but excluding, for this
       purpose, Revolving Loans) and/or cash contributions made to the reserves
       and not repaid in accordance with Section 6.3 second sentence of the
       Sponsors' Support Agreement and used for Project Costs.

4.4    Advances under the Facilities will be made available to AMD Saxonia by
       the Paying Agent crediting AMD Saxonia's *** with the Agent.

4.5    The Banks shall be entitled to reject Drawdown Notices from AMD Saxonia
       if and to the extent that AMD Saxonia has assigned or charged its claims
       under this Agreement to any third party or if such claims have been
       subject to an attachment order without the consent of the Banks or if AMD
       Saxonia is in default in the payment of any amount due or is in breach of
       a material obligation, under this Agreement.

----------------
***  CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION.

                                      15
<PAGE>

                                     (S) 5
                             Conditions to Drawing

5.1    Initial utilisation of the Facilities is subject to the satisfaction of
       the conditions set out in (S) 4 and all the following conditions
       (including those set out in (S) 5.2) at the date of the Drawdown Notice
       and written confirmation from the Agent and/or the Paying Agent that it
       has received a duly completed Drawdown Notice and confirmation from the
       Agent that it has received the documents referred to in (S) 5.1.1 to
       5.1.16.

5.1.1  Written confirmation of the Chief Financial Officer of AMD Inc. ***

5.1.2  Written confirmation from AMD Saxonia and AMD Inc. that as at the date of
       the initial Drawdown Notice all material governmental approvals, consents
       and measures which are necessary for the implementation and ongoing
       operation of the Project in accordance with the Plans and Specifications
       and the Operative Documents are available, or have been taken, as the
       case may be, which, according to the progress of the Project are
       appropriate and there is no reason to believe that the same will be
       revoked, restricted or made subject to conditions or that governmental
       approvals, consents and measures necessary at a later stage of the
       Project will not be obtained or taken in a timely fashion. Schedule 20
                                                                  -----------
       contains a list of all material approvals, consents and measures within
       the meaning referred to above. To the extent applicable as aforesaid and
       if any Bank should so reasonably require, AMD Saxonia shall furnish the
       Agent with certified copies of all relevant documents required for the
       performance of the Operative Documents, and of the governmental
       approvals, consents and measures necessary for the operation of the
       Fabrication Facility and the Design Center.

5.1.3  Confirmation from AMD Inc. that as at the date of the initial Drawdown
       Notice all consents or approvals necessary from third party creditors in
       relation to the indebtedness or contingent liabilities of AMD Inc. and in
       relation to the execution, delivery and performance by each of the AMD
       Companies of their existing obligations and the subject matter of the
       Operative Documents have been obtained.

5.1.4  Receipt of an extract from the Land Register confirming that AMD Saxonia
       has been registered in the Register as the owner of parcels referred to
       as nos. Folio 851 parcels nos. 150/2, 121/2, 122, 123, 124, 125/2, 126,
       127, 128/2, 129/3, 130, 131, 132, 133/1, 134, 135, 136, 137, 138, 139,
       140, 141, 142, 143, 143a, 144, 145, 146, 147, 148, 149, 151/2, 152, 153,
       154/2, 155, 156, 157, 158, 159, 160/1, 160/2, 161, 162, 694/1 in the
       County Court of Dresden von Wilschdorf and that the land charge to be
       granted in accordance with (S) 8.1.6 has been registered and that there
       are no prior registered charges.

5.1.5  All fees to be borne by AMD Saxonia pursuant to this Agreement and the
       other Operative Documents, to which the Agent, the Security Agent, the
       Paying Agent or the Banks are party, and other payments relating to costs
       incurred pursuant to (S) 25.1 which are due have been paid.

-----------------
***  CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION.

                                      16
<PAGE>

5.1.6  The Agent has received the following duly executed legally binding
       documents whose effectiveness is not conditional (save solely in respect
       of any condition relating to this Agreement):

       (i)    all Security Documents pursuant to (S) 8 with the exception of
              such Consents and Agreements required in accordance with this
              Agreement and the Security Documents set out in Schedules 49 and
                                                              ------------
              55 which are to be furnished together with the relevant contracts
              --
              when the same are entered into

       (ii)   Sponsors' Support Agreement, in the form set out in Schedule 28
                                                                  -----------

       (iii)  AMD Saxonia Wafer Purchase Agreement, in the form set out in
              Schedule 35.
              -----------

       (iv)   AMD Holding Wafer Purchase Agreement, in the form set out in
              Schedule 33.
              -----------

       (v)    AMD Saxonia Research, Design and Development Agreement, in the
              form set out in Schedule 36.
                              -----------

       (vi)   AMD Holding Research, Design and Development Agreement, in the
              form set out in Schedule 34.
                              -----------

       (vii)  Management Service Agreement, in the form set out in Schedule 37.
                                                                   -----------

       (viii) License Agreement in the form set out in Schedule 38.
                                                       -----------

       (ix)   Sponsors' Loan Agreement, in the form set out in Schedule 29.
                                                               -----------

       (x)    Sponsors' Consent and Agreement, in the form set out in Schedule
                                                                      --------
              31.
              --

       (xi)   Design/Build Agreement including Contractor's Consent and
              Agreement, in the form set out in Schedule 39.
                                                -----------

       (xii)  copies, certified by a lawyer as true copies, of Material
              Equipment Supply Contracts and Material Service Contracts (to the
              extent executed as at the date of the initial Drawdown Notice),
              including relevant Consents and Agreements in the form set out in
              Schedule 40 Part II, Annex 3 of Schedule 49 or in such other form
              -----------                     -----------
              as the Agent has consented to as well as all other Consents and
              Agreements required in accordance with the Security Documents in
              the form set out in Schedules 49 and 55.
                                  ------------     --

       (xiii) AMD/Dresdner Subsidy Agreement (Zuschussvertrag).

       (xiv)  SAB/Dresdner Subsidy Agreement (Zuwendungsvertrag).

       (xv)   AMD Saxonia Hedging Agreement in the form set out in Schedule 50a.
                                                                   ------------

       (xvi)  confirmation in writing from the State Ministry of Saxony for
              Economics and Labour that it has received a Letter from the
              European Commission confirming

                                      17
<PAGE>

              its non-objection to the interest subsidies to be paid under the
              Subsidy Agreements.

       (xvii) Sale and Settlement Agreement between AMD Saxonia and the City of
              Dresden dated 11 June 1996, together with amendments dated 25
              October 1996 and 28 February 1997.

5.1.7  The Agent has received from AMD Saxonia, AMD Holding and AMD Inc.
       respectively, confirmation that, as at the date of relevant Drawdown
       Notice, subject to any disclosure to the contrary in the Disclosure
       Schedule set out in Schedule 15, (i) its representations and warranties
                           -----------
       in the Operative Documents are true and accurate in all material respects
       as at such date; (ii) none of the events referred to in (S) 21 has
       occurred and is continuing, (iii) each of the Operative Documents to
       which it is a party is legally binding on it and in full force and effect
       and (iv) there has been no breach by AMD Saxonia of such Operative
       Documents.

5.1.8  The Agent has been furnished with the following documents:

       (i)    Documents relating to AMD Inc.
              ------------------------------

              (a)   a certificate of incorporation of AMD Inc. together with any
                    amendments thereto duly certified by the Secretary of State
                    of the State of Delaware, USA;

              (b)   a certificate of the Secretary of State of the State
                    Delaware, USA, referring to the certificate of incorporation
                    of AMD Inc. and any amendments and confirming that the same
                    are the only charter documents furnished to the Secretary of
                    State concerning AMD Inc., that AMD Inc. is incorporated in
                    the State of Delaware, USA, and is in good standing and at
                    the date of the certificate all franchise taxes due up to
                    that date have been paid;

              (c)   a certificate signed by the Secretary of State of the State
                    of California, USA, in customary form, confirming that under
                    Californian law, AMD Inc. satisfies all the conditions for
                    intra-state business and as at the date of the confirmation
                    is entitled to engage in intra-state business, subject to
                    any required permits of the State of California otherwise
                    required;

              (d)   a duly signed confirmation of the Recorder of Deeds of New
                    Castle County, Delaware, USA, in customary form, confirming
                    that a certified copy of the certificate of incorporation of
                    AMD Inc. together with all amendments referred to in the
                    certificate delivered pursuant to (S) 5.1.8 (b), has been
                    furnished to his office;

              (e)   a duly signed confirmation of the Secretary of the Franchise
                    Tax Board of the State of California, USA, in customary
                    form, confirming that AMD Inc. is in good standing, has no
                    unpaid tax obligations

                                      18
<PAGE>

                      known to the Franchise Tax Board and is entitled to carry
                      on business in the State of California; the provision of
                      such confirmation shall not, however, be necessary to the
                      extent that such confirmation cannot be provided for the
                      reasons disclosed in the Disclosure Schedule, provided the
                      decisions concerning the tax assessments have been
                      challenged bona fide in appropriate proceedings and
                      provision has been made therefor in accordance with US
                      GAAP.

       The date of the documents referred to above shall not be more than one
       month prior to the date of the initial Drawdown Notice.

       (ii)   Documents relating to AMD Holding
              ---------------------------------

              (a)     certified copy of the Commercial Registry extract and the
                      articles of incorporation of AMD Holding in the form
                      certified by the County Court. The date of the Commercial
                      Registry extract shall not be more than one month prior to
                      the date of the Drawdown Notice;

              (b)     confirmation of the Managing Directors (Geschaftsfuhrung)
                      of AMD Holding that the matters set out in the documents
                      referred to in (a) are true and accurate in all respects
                      as they relate to the actual facts;

              (c)     audited financial statements of AMD Holding, including
                      notes to the statements and a management report, together
                      with an unqualified report by the Auditors for the year
                      ended 31 December 1996.

       (iii)  Documents relating to AMD Saxonia
              ---------------------------------

              (a)     certified copy of the Commercial Registry extract and the
                      articles of incorporation of AMD Saxonia in the form
                      certified by the County Court; the date of the Commercial
                      Registry extract shall not be more than one month prior to
                      the date of the initial Drawdown Notice;

              (b)     written confirmation of the Managing Directors
                      (Geschaftsfuhrung) of AMD Saxonia that the documents
                      referred to in (a) are true and accurate in all respects
                      as they relate to the actual facts.

              (c)     audited financial statements of AMD Saxonia including
                      notes to the statements and a management report, together
                      with an unqualified report by the Auditors for the year
                      ended 31 December 1996.

5.1.9  The Agent has received from AMD Inc. confirmation in the form of Schedule
                                                                        --------
       3, dated as of the date of the initial Drawdown Notice, stating that
       -
       there is attached (i) a written resolution of its Board of Directors
       authorising execution of the Operative Documents and (ii) a copy of its
       by-laws in effect at the date of the initial Drawdown Notice and (iii) a
       list of its agents and officers who have signed the Operative Documents
       and the documents relating thereto as authorised signatories.

                                      19
<PAGE>

5.1.10  The Agent has received an opinion acceptable to it from a recognised
        reputable first class US financial advisory firm confirming that the
        Operative Documents to which AMD Inc. is a party are fair to AMD Inc.
        from a financial point of view.

5.1.11  The Agent has received the following legal opinions:

        (i)   legal opinion (including an Exhibit A thereto in a form
              satisfactory to the Agent) of Bronson, Bronson & McKinnon LLP,
              counsel to AMD Inc., in the form set out in Schedule 57, relating
                                                          -----------
              to the Senior Secured Note Indenture dated 1 August 1996 and the
              Credit Agreement dated 19 July 1996 each as referred to in (S)
              15.1.13, dated not more than 21 calendar after the date hereof;

        (ii)  legal opinion of O'Melveny & Myers LLP, counsel to the AMD
              Companies, of even date herewith, in the form set out in Schedule
                                                                       --------
              58, together with confirmation in accordance with Schedule 58 from
              --                                                -----------
              O'Melveny & Myers LLP that the statements referred to in the legal
              opinion continue to be true and accurate as at a date not more
              than ten calendar days prior to the date of the initial Drawdown
              Notice;

        (iii) legal opinion of Norr, Stiefenhofer & Lutz, counsel to the AMD
              Companies including an opinion relating to the completeness of the
              schedule of required governmental approvals, permits and measures
              (Schedule 20) as well as relating to the status of such required
               -----------
              approvals, permits and measures in accordance with the progress of
              the Project, in a form updated from that set out in Schedule 59
                                                                  -----------
              satisfactory to the Banks dated not more than ten calendar days
              prior to the date of the initial Drawdown Notice; and

        (iv)  legal opinion of Doser Amereller Noack / Baker & McKenzie, counsel
              to the Agent and the Banks of even date herewith, in the form set
              out in Schedule 60, together with confirmation from Doser
                     -----------
              Amereller Noack/Baker & McKenzie that the statements referred to
              in the legal opinion continue to be true and accurate as at a date
              not more than ten calendar days prior to the date of the initial
              Drawdown Notice;

        (v)   legal opinions of Feddersen Laule Scherzberg & Ohle Hansen
              Ewerwahn, counsel to the Agent and the Banks of even date herewith
              in the form set out in Schedule 61, together with confirmation
                                     -----------
              from Feddersen Laule Scherzberg & Ohle Hansen Ewerwahn that the
              statements referred to in the legal opinion continue to be true
              and accurate as at a date not more than ten calendar days prior to
              the date of the initial Drawdown Notice.

5.1.12  The Agent has received a technical report (Technical Report) from the
        Technical Advisor, in form and substance satisfactory to the Agent
        together with an updated confirmation from the Technical Advisor that
        the Technical Report continues to be true and accurate in all material
        respects together with the confirmation in writing from AMD Saxonia in
        the form set out in Schedule 19;
                            -----------

                                      20
<PAGE>

5.1.13  The Agent has received confirmations from AMD Saxonia's Insurance
        Brokers in the form of Annexes I and II of Schedule 22 as well as
                                                   -----------
        confirmation from the Insurance Advisor in form and substance
        satisfactory to the Agent evidencing, in particular, that AMD Saxonia
        has taken out insurances in the scope required pursuant to (S) 17.8 and
        Schedule 22.
        -----------

5.1.14  AMD Saxonia has registered its stated capital of at least DM 217,500,00
        in the Commercial Register of which an amount of at least DM 108,750,000
        has been paid up, at the latest on the date of the initial Drawdown
        Notice and that a sum in this amount has been credited to a Project
        Account in accordance with (S) 19.

5.1.15  The Technical Advisor has received the Plans and Specifications in form
        and substance satisfactory to the Technical Advisor and the Agent has
        received confirmation in writing, to that effect.

5.1.16  The conditions to initial drawing referred to in the AMD/Dresdner
        Subsidy Agreement and the SAB/Dresdner Subsidy Agreement relating to the
        payment of grants and subsidies have been satisfied.

5.2     Each of the following conditions must be satisfied on each drawing
        (including the first) of the Facilities:

5.2.1   the Agent and the Paying Agent have received a Drawdown Notice and the
        Agent has received the documents to be submitted simultaneously with
        such notice pursuant to (S) 4.1. Each Drawdown Notice shall in
        particular contain confirmation that the conditions referred to in (S)
        5.2.2 to (S) 5.2.4 below are true and accurate;

5.2.2   the representations and warranties given by each of the AMD Companies in
        each of the Operative Documents are true and accurate in all material
        respects as at the date of the Drawdown Notice and will be true and
        accurate as at the date of drawing, save to the extent that their
        content relates solely to an earlier date;

5.2.3   as at the date of the Drawdown Notice and as at the date of drawing,
        none of the events referred to in (S) 21 which would entitle the Banks
        to terminate this Agreement has occurred;

5.2.4   as at the date of the Drawdown Notice and as at the date of drawing no
        event which has a "Material Adverse Effect" within the meaning of the
        Sponsors' Support Agreement has occurred;

5.2.5   the Agent has received a copy certified by a lawyer of each Material
        Equipment Supply Contract and each Material Service Contract entered
        into by such date, together with the written Consent and Agreements of
        the other contracting party relating to the transfer of the relevant
        contracts in the form set out in Part II of Schedule 40 or in such other
                                                    -----------
        form to which the Agent shall have consented together with all Consents
        and Agreements required pursuant to the Security Documents set out in
        Schedules 49 and 55 which have not already been obtained;
        ------------     --

                                      21
<PAGE>

5.2.6   the Agent has received evidence reasonably requested by it that all the
        governmental approvals, permits and measures necessary according to the
        progress of the Project have been granted and, or taken, in accordance
        with Part B of Schedule 20 as well as, at the beginning of each Project
                       -----------
        Phase, a legal opinion acceptable to it from Norr, Stiefenhofer & Lutz
        relating to the completeness and the legal validity of such approvals,
        permits and measures;

5.2.7   the Agent has received at the beginning of each then current Project
        Phase confirmation in the form of the Scheduled Project Phase Technical
        Completion Certificates in accordance with Schedules 9 and 10 stating
                                                   -----------     --
        that the relevant preceding Project Phase has been completed;

5.2.8   the Agent has received at the end of each calendar year confirmations
        from AMD Saxonia's Insurance Brokers in the form of Annexes I and II of
        Schedule 22 as well as confirmation of the Insurance Advisor pursuant to
        -----------
        (S) 5.1.13;

5.2.9   the Agent has received all evidence reasonably requested by it relating
        to compliance with or the enforceability of AMD Saxonia's obligations
        under this Agreement and the Security Documents.

                                     (S) 6
                      Interest, Commitment Fee, Payments

6.1     AMD Saxonia may elect, by a notification in a Drawdown Notice and/or an
        interest rate notice, whether a variable rate, a fixed rate or a
        combination of variable and fixed rates should apply to drawings under
        Facility A.

        The rate of interest applicable to each advance drawn and the Interest
        Period applicable thereto as determined in accordance with (S) 6.2 shall
        be, at AMD Saxonia's option:

        (i)  in respect of a fixed rate, the sum of the Reference Rate and the
             margin,

        (ii) in respect of a variable rate, the sum of the LIBOR-Rate and the
             margin.

6.1.1   The Reference Rate is the arithmetic mean (rounded up to the fourth
            --------------
        decimal place) of the fixed rates per annum for DM interest rate swaps
        (fixed rate as against 6 months LIBOR) in an amount equal to the
        relevant advance for the Interest Period requested by AMD Saxonia, as
        corresponds to the rate quoted by the Reference Banks at 11.00 a.m.
        (London time) as the offered rate on the second Banking Day prior to the
        relevant Interest Period, as determined by the Paying Agent.

        The LIBOR-Rate is the DM interest rate per annum in the London Interbank
            ----------
        Market which in accordance with "Telerate Screen" page 3750 (or such
        other page as may be substituted for page 3750 on that system for the
        purpose of displaying offered rates for DM deposits) is quoted as the
        offered rate at 11.00 a.m (London time) on the second Banking Day prior
        to the relevant Interest Period for such Interest Period.

                                      22
<PAGE>

        To the extent that no interest rate is displayed on the relevant
        "Telerate Screen" page at the relevant time on any day for the
        determination of the interest rate, the rate determined by the Paying
        Agent shall be the arithmetic mean (rounded to the fourth decimal place)
        quoted to the Paying Agent by the Reference Banks as the DM interest
        rate per annum at which the Reference Banks offer to prime banks in the
        London Interbank Market on the relevant date at 11.00 a.m. London time
        for deposits for the relevant period and in an amount comparable to the
        relevant advance.

        If any Reference Bank does not notify such a rate to the Paying Agent
        for any relevant period, the LIBOR-Rate and/or the Reference Rate as
        applicable shall be determined on the basis of the rates notified by the
        other Reference Banks.

6.1.2   The margin applicable to Facility A prior to 31 December 2001 shall be
        one percent (1.00%) per annum. After 31 December 2001, the margin shall
        be calculated by reference to:

        (a)  the rating of the public long-term senior unsecured debt securities
             of AMD Inc. by Moody's Investor Services, Inc. (or any successor or
             other undertaking which has assumed the relevant functions of
             Moody's Investor Service, Inc. which is a rating agency of
             international repute) in effect at the relevant time; and

        (b)  the ratio (expressed as a percentage of utilization) of outstanding
             advances under Facility A to DM 1,500,000,000,-,

        in each case, corresponding to the interest rate set out in the right
        hand column of the following table:

<TABLE>
<CAPTION>
=======================================================================================
Rating                           Utilisation percentage            Margin
=======================================================================================
<S>                              <C>                               <C>
less than "investment grade      70% or more                       1.00% per annum;
(Baa3)" or no rating
---------------------------------------------------------------------------------------
less than "investment grade      at least 50% but less than 70%    0.90% per annum;
(Baa3)" or no rating
---------------------------------------------------------------------------------------
less than "investment grade      less than 50%                     0.75% per annum;
(Baa3)" or no rating
---------------------------------------------------------------------------------------
"investment grade (Baa3)" or     70% or more                       0.75% per annum;
better
---------------------------------------------------------------------------------------
"investment grade (Baa3)" or     at least 50% but less than 70%    0.70% per annum; and
better
---------------------------------------------------------------------------------------
"investment grade (Baa3)" or     less than 50%                     0.55% per annum.
better
=======================================================================================
</TABLE>

                                      23
<PAGE>

     Adjustments to the margin in respect of each advance shall be made at the
     beginning of the next Interest Period and/or at the next interest payment
     date as set out in (S) 6.6, as the case may be.

     AMD Saxonia shall ensure that the Interest Periods elected by it always
     correspond with the repayment schedule in (S) 7.2 of this Agreement. To the
     extent that any advance must be prepaid prior to the Interest Period agreed
     therefor in order to comply with such repayment schedule, the provisions of
     (S) 7.5 shall apply accordingly.

6.2  In respect of a variable interest rate, the Interest Periods shall be 1, 3,
     6 or 12 months (to the extent available). The Interest Periods in respect
     of fixed interest rates shall be of a duration of integral multiples of one
     year or of such duration as AMD Saxonia and the Agent may agree in order to
     match the dates on which repayment instalments are made in accordance with
     (S) 7.2 but shall not in any event exceed five nor be less than two years.

     Upon the Agent's request, AMD Saxonia will consolidate individual
     outstanding advances so that not more than ten separate advances are
     outstanding at any one time.

6.3  AMD Saxonia will notify the Agent, with a copy to the Paying Agent, in an
     irrevocable Drawdown Notice and/or an interest rate notice to be received
     at the latest by the fifth Banking Day prior to an Interest Period of the
     relevant interest rate (variable or fixed rate), the amount for which the
     specified interest rate shall apply and the duration of the relevant
     Interest Period. If the Agent has not received in the time specified
     therefor an interest rate notice in the form set out in Schedule 4 for the
                                                             ----------
     next Interest Period, the relevant advance shall be for an Interest Period
     of the same duration as the previous Interest Period and bear interest on
     the same interest rate basis applicable to such Period.

6.4  The first Interest Period for each advance will commence on the date of
     drawing. Each succeeding Interest Period will commence on the expiration of
     the immediately preceding Interest Period. If the last day of an Interest
     Period does not fall on a Banking Day, the Interest Period shall be deemed
     to end on the next following Banking Day or if the Interest Period relates
     to an advance bearing interest at a variable rate and the next following
     Banking Day would otherwise fall in the next calendar month, such Interest
     Period shall be deemed to end on the immediately preceding Banking Day. If
     an Interest Period for any advance would otherwise extend beyond a due date
     for payment pursuant to (S) 7.2 of this Agreement, the relevant Interest
     Period shall be deemed to end on the relevant due date.

6.5  Interest in respect of the variable interest rate shall be calculated on
     the basis of the actual number of days elapsed and a 360 day year. Interest
     in respect of the fixed interest rate shall be calculated on the basis of a
     30 day month and a 360 day year.

6.6  Interest shall be paid on the last day of an interest period. In the case
     of an Interest Period for a variable rate advance of more than 3 months
     interest shall be due and payable at the end of every 3 months. In the case
     of a fixed rate advance, interest shall

                                      24
<PAGE>

     be paid on the last day of each calendar quarter or, if such day is not a
     Banking Day, on the next succeeding Banking Day.

6.7  AMD Saxonia shall be in default (Verzug), without any requirement for
     notice, if it has failed to make payments which are due hereunder on the
     relevant due date or if it does not make such payments in full. AMD Saxonia
     shall pay default interest on the outstanding amount of the overdue payment
     at the rate equal to 4 percentage points per annum above the applicable
     discount rate of the German Bundesbank, or the equivalent rate following
     introduction of the single currency under European Monetary Union, from the
     due date until receipt by the Paying Agent of the outstanding amounts.
     Should there be no such rate following introduction of the single currency,
     the Banks shall determine the applicable rate in accordance with (S) 315
     BGB. If AMD Saxonia is in default of payment of interest, AMD Saxonia shall
     pay to the Banks liquidated damages. The amount of such liquidated damages
     shall correspond to a rate of interest of 4 percentage points above the
     applicable discount rate of the German Bundesbank (or the equivalent rate
     following introduction of the single currency under European Monetary
     Union) from the due date until receipt by the Paying Agent of the overdue
     interest amounts. Should there be no such rate following introduction of
     the single currency, the Banks shall determine the applicable rate in
     accordance with (S) 315 BGB.

6.8  AMD Saxonia agrees to pay to the Paying Agent for the account of each Bank
     as from the date of execution of this Agreement until the end of the
     availability period pursuant to (S) 4.2 a commitment fee at the rate of
     0,2% per annum on such Bank's commitment of the unused portion of the
     Facilities calculated on the basis of the actual days elapsed and on the
     basis of a 360 day year. The commitment fee shall be calculated on a
     quarterly basis and shall be payable at the end of each calendar quarter
     for that quarter.

6.9  All payments to be made by AMD Saxonia to the Banks pursuant to the terms
     of this Loan Agreement shall at all times be made to the Paying Agent's
     account no. *** with Dresdner Bank in Frankfurt or such other account as
     may be specified by the Paying Agent on the relevant due date. The Security
     Agent is hereby also authorised to debit the relevant amounts due from AMD
     Saxonia's account no. *** with the Security Agent in Dresden on or after
     the due date and to pay the same to the Agent for distribution to the
     individual Banks. Payments made otherwise than in accordance with this
     provision shall not constitute good discharge in favour of AMD Saxonia.

6.10 AMD Saxonia shall not be entitled to assert any rights of set off or
     retention against the claims of the Banks for payment hereunder.

                                     (S) 7
                              Term and Repayment

7.1  The Facilities shall be for a term expiring on 31 December 2005.

7.2  The Facilities shall be amortized, commencing on 30 June 2001,

----------------
***  CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
     AND EXCHANGE COMMISSION.

                                      25
<PAGE>

       in semi-annual repayments in the percentages set out below on the last
       Banking Day of the relevant six month period:

<TABLE>
<CAPTION>
       --------------------------------------------------------------------------------------------
       Instalments                                       Percentage of the aggregate principal
                                                         amount of the Facilities outstanding at
                                                         the end of the availability period
                                                         pursuant to (S) 4.2
       ============================================================================================
       <S>                                               <C>
       first and second instalment                       6.50 % each
       --------------------------------------------------------------------------------------------
       third and fourth instalment                       13.50 % each
       --------------------------------------------------------------------------------------------
       fifth and sixth instalment                        14.25 % each
       --------------------------------------------------------------------------------------------
       seventh and eighth instalment                     10.50 % each
       --------------------------------------------------------------------------------------------
       ninth and tenth instalment                        5.25 % each
       --------------------------------------------------------------------------------------------
</TABLE>

       Each scheduled repayment of the Facilities shall be made, together with
       all interest accrued at the due date for repayment and with all other
       amounts due under this Agreement at such date.

7.3    AMD Saxonia is entitled to prepay the outstanding amount of the
       Facilities, in whole or in part, but not in an amount of less than DM
       10,000,000 or, if higher, an integral multiple of DM 5,000,000 or the
       total amount outstanding provided that it shall have notified the Paying
       Agent (with a copy to the Agent) at least five Banking Days in advance by
       notice in writing, substantially in the form of Schedule 5. Each
                                                       ----------
       repayment shall include accrued interest up to the date of repayment.

7.4    At the latest on 15 August 2002, AMD Saxonia shall make a prepayment of
       the outstanding Facilities in an amount equal to the excess (if any) of:

7.4.1  all drawdowns under the Facilities made after Completion,

       over
       ----

7.4.2  Capital Expenditure incurred between 1 January 2001 and 1 July 2002, as
       set out in the Statement as to the Use and Sources of Funds submitted
       pursuant to (S) 16.2.6 (ii) for such period, signed by the Auditor.

7.5    Prepayments shall be applied to payments pursuant to (S) 7.2 in inverse
       order of maturity. In the event that the Banks incur a loss arising from
       a repayment (save for a repayment at the end of an Interest Period) by
       virtue of the fact that the reinvestment of any advances repaid by AMD
       Saxonia is only possible at interest rates lower than those agreed with
       AMD Saxonia, AMD Saxonia shall indemnify the Banks in respect of
       reinvestment losses so incurred as a result of prepayment. In such
       circumstances, the Banks shall be entitled to make a claim for the
       reinvestment loss which is equal to the difference between the rate of
       interest which would have been payable by AMD Saxonia for the relevant
       remaining term of the Interest Period on the basis of the applicable
       rates and the rate available to the Banks for such period as the
       reinvestment rate. For this

                                      26
<PAGE>

       purpose, the reinvestment rate for the remaining term and/or the
       remaining term of the Interest Period is capital market rate
       corresponding to the offered rate for German
       Pfandbriefe/Kommunalobligationen (Inhaberschuldverschreibungen) of an
       equivalent maturity in the interbank market, determined in accordance
       with (S) 6.1. The difference in interest rates shall be discounted to net
       present value at a discount rate equivalent to the reinvestment rate. The
       Banks shall be entitled to make a claim for any loss incurred by them
       which is higher. AMD Saxonia shall have the right to prove that damages
       have not been incurred or not in the amount claimed. All notices in
       relation to a prepayment shall be irrevocable.

                                     (S) 8
                                    Security

8.1    The Facilities are secured by the 65/35 Guaranty in the form known to the
       Banks and AMD Saxonia, as set out in Schedule 24 including in particular
                                            -----------
       deeds of guaranty in the form set out in the specimen annexed thereto. A
       copy of the Guaranty Decision is also set out in Schedule 24 and the
                                                        -----------
       terms of such Decision constitute a material term of this Agreement. All
       terms and conditions of the Guaranty Decision to be incorporated herein
       are hereby agreed by the parties notwithstanding that the same are not
       expressly set out in this Agreement; this shall apply in particular to
       the obligation to agree to amendments to this Agreement only with the
       consent of the Guarantors. AMD Saxonia undertakes to observe and comply
       with all relevant conditions of the Guaranty Decision directly applicable
       to it and to do all things to enable AMD Inc. to observe and comply with
       all obligations encumbent on it in connection with the Guaranty Decision.
       The Guarantors are entitled to appoint authorised representatives for the
       purpose of administering the 65/35 Guaranty. In addition, AMD Saxonia
       shall grant, or procure that there is granted, in favour of the Banks and
       the Security Agent the following security as security for all claims of
       the Banks as well as any potential claims of the Guarantors arising under
       or in connection with this Agreement:

8.1.1  a joint and several guaranty by the Sponsors in an amount of up to the
       greater of (i) thirty five per cent. (35%) of all amounts outstanding
       under this Agreement, and (ii) DM 217,500,000, in each case plus interest
       thereon and costs and expenses, but subject to a maximum amount of DM
       600,000,000, as set out in the Sponsors' Guaranty in the form of Schedule
                                                                        --------
       32, as amended;
       --

8.1.2  a subordination agreement between AMD Saxonia, the Sponsors, the Agent
       and the Security Agent, in the form set out in Schedule 30;
                                                      -----------

8.1.3  a guaranty by AMD Inc. of obligations of AMD Holding under certain
       Operative Documents, in the form set out in Schedule 27;
                                                   -----------

8.1.4  a pledge of all shares in AMD Holding held by AMD Inc. in the form set as
       out in Schedule 41;
              -----------

8.1.5  a subordination agreement between AMD Holding, AMD Inc., the Agent and
       the Security Agent, in the form set out in Schedule 42.
                                                  -----------

                                      27
<PAGE>

8.1.6  a first priority land charge over real property registered in the Land
       Registry of the Dresden County Court, Dresden von Wilschdorf parcels
       numbers Folio 851 parcels nos.150/2, 121/2, 122, 123, 124, 125/2, 126,
       127, 128/2, 129/3, 130, 131, 132, 133/1, 134, 135, 136, 137, 138, 139,
       140, 141, 142, 143, 143a, 144, 145, 146, 147, 148, 149, 151/2, 152, 153,
       154/2, 155, 156, 157, 158, 159, 160/1, 160/2, 161, 162, 694/1 of AMD
       Saxonia in respect of an amount of DM 1,650,000,000 together with
       interest in an amount of 15 % per annum together with a lump sum payment
       in an amount of 5 % of the total charge amount as an immediately
       enforceable charge without prior charges in Section III of the Register
       in favour of the Security Agent together with a personal acknowledgement
       of enforceability by AMD Saxonia to be granted in the form set out in
       Schedule 43;
       -----------

8.1.7  a security assignment of the current assets of AMD Saxonia (raw
       materials, supplemental and operational materials, finished and
       unfinished products as well as trading products), in the form set out in
       Schedule 44;
       -----------

8.1.8  a security assignment of fixed assets of AMD Saxonia, in the fom set out
       in Schedule 45;
          -----------

8.1.9  a security assignment of insurance claims of AMD Saxonia, in the form set
       out in Schedule 46;
              -----------

8.1.10 a global assignment of all receivables of AMD Saxonia not otherwise
       assigned from the supply of equipment and other services and from other
       claims against debtors other than the Sponsors, in the form set out in
       Schedule 47;
       -----------

8.1.11 a pledge of all amounts standing to the credit of AMD Saxonia in the
       Project Accounts in the form set out in Schedule 48;
                                               -----------

8.1.12 an assignment of AMD Saxonia's rights under the Design/Build Agreement in
       the form set out in Schedule 39, the Equipment Supply Contracts, the
       Service Contracts and other contracts not governed by the laws of the
       United States of America or any state thereof together with an offer to
       transfer such contracts as required by Schedule 49 and with Consents and
                                              -----------
       Agreements in the form of Annex 3 to Schedule 49 as therein required. AMD
                                            -----------
       Saxonia is hereby authorised by the Security Agent to enforce on its
       behalf rights in its name under the agreements referred to above as
       against the relevant obligor for as long as no circumstances exist which
       entitle the Banks to terminate this Agreement; AMD Saxonia hereby accepts
       such authorisation.

8.1.13 an assignment of claims and contractual rights of AMD Saxonia under the
       AMD Saxonia Wafer Purchase Agreement , the Equipment Supply Contracts,
       the Service Contracts and rights under other contracts governed by the
       laws of the United States of America or any state thereof, in the form
       set out in Schedule 50.
                  -----------

8.1.14 a pledge of all shares in AMD Saxonia held by AMD Holding, in the form
       set out in Schedule 51;
                  -----------

                                      28
<PAGE>

8.1.15  a security assignment of current assets of AMD Holding (raw materials,
        supplemental and operational materials, finished and unfinished products
        as well as trading products), in the form set out in Schedule 52.
                                                             -----------

8.1.16  a global assignment of all receivables of AMD Holding not otherwise
        assigned from the supply of equipment and other services and of other
        claims against all debtors, with the exception of AMD Inc., in the form
        set out in Schedule 53;
                   -----------

8.1.17  a pledge of all amounts standing to the credit of AMD Holding in bank
        accounts, in the form set out in Schedule 54;
                                         -----------

8.1.18  an assignment of AMD Holding's rights under contracts not governed by
        laws of the United States of America or any state thereof and an offer
        to transfer such contracts, pursuant to the form set out in Schedule 55
                                                                    -----------
        together with Consents and Agreements in the form set out in Annex 3 to
        Schedule 55 as therein required; AMD Holding will be authorised by the
        -----------
        Security Agent to enforce on its behalf rights in its name under the
        agreements referred to above as against the relevant obligor for so long
        as no circumstances exist which entitle the Banks to terminate this
        Agreement.

8.1.19  an assignment of claims and contractual rights of AMD Holding under the
        AMD Holding Wafer Purchase Agreement and other contracts governed by the
        laws of the United States of America or any state thereof, in the form
        set out in Schedule 56.
                   -----------

8.2.    AMD Saxonia undertakes that, in the event of any material deterioration
        of the security as a whole, in particular as a result of reduction in
        value and/or loss, it will on the request of the Agent grant additional
        security or repay the Facilities accordingly. AMD Saxonia undertakes to
        charge real property which is not presently charged or which is acquired
        in the future if the same is or intended to be used for operational
        purposes.

8.3     If AMD Saxonia is of the opinion that the realisable value of the
        security as a whole (with the exception of the 65/35 Guaranty) exceeds
        at any time by a material amount the total outstanding claims of the
        Banks under this Agreement, otherwise than temporarily, AMD Saxonia may
        by notice to the Security Agent, including supporting material, require
        the release of security. The Security Agent will pass a copy of such
        notice to the Guarantors for their comment.

        Following receipt of the Guarantors' comments, the Security Agent and
        the Banks will release security to the extent a material over-
        collateralisation has been adequately demonstrated.

        The Security Agent shall be obliged to agree to a release if and to the
        extent that the realisable value as determined in accordance with the
        individual Security Documents of all Security provided by AMD Saxonia
        exceeds 120% of the secured claims of the Banks other than temporarily.
        The choice of the securities released shall be at the discretion of the
        Security Agent and of the Banks, as the case may be.

8.4     In the event that the Banks are entitled to terminate the Facilities
        pursuant to (S) 21 of this Agreement, AMD Saxonia hereby authorises the
        Agent, on behalf of the Banks, to

                                      29
<PAGE>

     satisfy on its behalf all obligations of, and to discharge all claims
     against it (including those arising under extended retention of title
     clauses), at the expense of AMD Saxonia. AMD Saxonia waives its rights
     pursuant to (S) 267 II BGB and undertakes to reimburse the Agent promptly
     after request by the Agent all reasonable costs and expenses which the
     Agent may have incurred in connection with the exercise of its rights to
     satisfy obligations and discharge claims as aforesaid.

                                     (S) 9
                                   Illegality

If it becomes illegal or unlawful pursuant to domestic or foreign legislation or
it becomes contrary to any requirement of any domestic or foreign authority or
public body for any Bank to comply with its outstanding obligations - in whole
or in part - under this Agreement such Bank may immediately after it has become
aware thereof inform AMD Saxonia through the Agent. After receipt of such
notification, the Facilities made available by the relevant Bank affected by the
illegality or unlawfulness shall be cancelled without notice or on such
reasonable notice as may be determined by the relevant Bank and specified in the
notification referred to, as the case may be. In such case, AMD Saxonia shall
repay to the Paying Agent for distribution to the relevant Bank all outstanding
amounts under the affected Facilities at the date such notice becomes effective,
together with accrued interest and all other amounts due at the date of such
notice.

                                     (S) 10
              Market Disruption; Alternative Method of Calculation

10.1 The Paying Agent shall immediately notify AMD Saxonia and the Banks if any
     of the following events occur in relation to any interest period:

     (i)    the Paying Agent, after consultation with the Reference Banks,
            determines that due to circumstances affecting the London interbank
            market, the LIBOR rate or the reference rate cannot be adequately
            and reasonably determined; or

     (ii)   in the case of a LIBOR rate, no interest rate for the relevant
            interest period appears on the Telerate Monitor and less than two
            (2) Reference Banks provide the Paying Agent with a LIBOR rate or in
            the case of the reference rate, less than two Reference Banks
            provide the Paying Agent with a reference rate; or

     (iii)  a majority of Banks, as determined pursuant to (S) 22.5, inform the
            Paying Agent (with a copy to the Agent) that in respect of the
            relevant interest period no DM funds in the required amount are
            available in the London interbank market or that the average of the
            LIBOR-rates appearing on the Telerate Monitor do not adequately
            reflect the cost to such Banks of making or maintaining their
            respective participations in the relevant advance for such interest
            period.

                                      30
<PAGE>

     Following receipt of such notification no further advances may be made
     until an alternative method of calculation pursuant to (S) 10.2 is agreed
     upon or such notice is revoked by further notification from the Paying
     Agent to AMD Saxonia and the Banks.

10.2 As soon as notification pursuant to (S) 10.1 has been made, AMD Saxonia and
     the Paying Agent, in coordination with the Banks, will negotiate in good
     faith for a maximum period of thirty days with a view to setting an
     alternative method of refinancing the affected advances as well as the
     applicable interest rate, the interest period and the payment dates. To the
     extent that instead of a LIBOR rate, a reference rate can be determined or
     instead of a reference rate, a LIBOR rate can be determined, AMD Saxonia
     shall be entitled to require that the rate which is available shall apply
     to the relevant advance. If agreement as to the alternative interest rate
     is reached between the Banks and AMD, the alternative calculation method
     agreed shall apply for all relevant advances. If no agreement in respect of
     an alternative method of calculation is achieved within thirty days and
     agreed upon in writing or if AMD Saxonia does not require an alternative
     available Reference Rate or LIBOR-Rate, the following shall apply:

     (i)  to the extent that the Facilities have not been drawn, no drawing will
          be permitted. AMD Saxonia shall then be obliged to pay immediately all
          amounts due to the Paying Agent for distribution to the Banks pursuant
          to the terms of this Agreement;

     (ii) to the extent that the Facilities have already been drawn, AMD Saxonia
          and the Agent (in consultation with the Paying Agent) may determine a
          repayment date for the entire outstanding amount of the Facilities
          affected of not less than thirty days. Repayment shall be effected on
          such day together with interest in an amount equivalent to the costs
          of the Banks of making or maintaining their respective participations
          in the relevant advance for such interest period together with the
          margin to the Paying Agent for distribution to the Banks. In the event
          that such costs of the Banks cannot be determined, the applicable rate
          shall be determined in accordance with (S) 315 BGB.

                                     (S) 11
                                Increased Costs

11.1 If a Bank or its Lending Office determines that the introduction of or a
     change of any law applicable to it or change in interpretation of any such
     law or the application or compliance with any regulation of any public body
     results or will result:

     (i)  in the affected Bank being obliged to pay any tax or other payment
          relating to any advance made by it or to any payment to be made by AMD
          Saxonia to it, or

     (ii) the affected Bank being subject to any other measure which leads to an
          increase in the costs of that Bank in funding advances or that the
          amount or the effective return in relation to any payment which the
          affected Bank receives pursuant to this Agreement is reduced, or

                                      31
<PAGE>

     (iii)  the affected Bank being subject to additional costs which arise from
            its commitment under the Facility,

     such Bank shall be entitled to inform AMD Saxonia through the Agent. AMD
     Saxonia shall then be obliged on request and irrespective of whether
     advances made are repaid to the affected Bank to pay such amount to the
     Paying Agent for the account of the affected Bank as is demonstrated to be
     necessary to compensate the affected Bank for the relevant increase in
     costs or reduction of payment. The foregoing shall apply only to the extent
     that the affected Bank has informed AMD Saxonia, via the Agent, of the
     relevant circumstance in respect of paragraphs (i) to (iii).

11.2 An increase in costs or reduction of payment referred to in (S) 11.1 does
     not include:

     (i)    any tax on overall net income of any Bank or a branch thereof;

     (ii)   any tax required to be deducted or withheld from any amount payable
            by AMD Saxonia which AMD Saxonia has paid in accordance with (S) 13;

     (iii)  any amount relating to any reserve amount, special deposits, equity,
            cost ratio, liquidity or capital adequacy requirement or any other
            form of banking or monetary control resulting from any law or
            regulation in effect at the date of this Agreement.

11.3 For as long as the circumstances referred to in 11.1 above continue, AMD
     Saxonia shall be entitled by written notice to the Paying Agent, with a
     copy to the Agent, to repay all outstanding advances made by the affected
     Bank on thirty days notice expiring at the end of an interest period and to
     cancel the Facilities only as they relate to the affected Bank.

                                     (S) 12
                                   Indemnity

12.1 Without prejudice in particular to the provisions of (S) 6.7, (S) 7.5, (S)
     10 and (S) 11, AMD Saxonia shall be obliged to hold harmless from and to
     indemnify each Bank and the Paying Agent on demand in respect of all
     losses, obligations, damage, costs and expenses (including loss of profit)
     under or arising out of this Agreement which are suffered by a Bank or the
     Paying Agent as result of:

     (i)    the occurrence of circumstances which entitle the Banks to terminate
            this Agreement or breach by AMD Saxonia of its obligations under
            this Agreement;

     (ii)   the failure to draw down funds under the Facilities following a
            Drawdown Notice;

     (iii)  any amounts prepaid otherwise than in accordance with the terms of
            this Agreement (in particular also pursuant to (S) 10 and (S) 11).

                                      32
<PAGE>

12.2 The obligation to hold harmless and indemnify includes also all costs and
     expenses which a Bank incurs as result of the redeployment of funds which
     are obtained for the purposes of refinancing its commitment under the
     Facilities as well as all interest, fees and costs which arise as a result
     of the funding of the amounts not drawn.

12.3 The Paying Agent will maintain books of account in accordance with
     customary banking practice which will at all relevant times record the
     amounts owed by AMD Saxonia pursuant to this Agreement. In the event of
     disputes or other questions in connection with this Agreement, the contents
     of the Paying Agent's books of account as they relate to the obligations of
     AMD Saxonia pursuant to this Agreement and the amount thereof shall be
     conclusive, save in the case of manifest error. AMD Saxonia's ability to
     prove any error in the contents of such books of account shall remain
     unaffected.

                                      33
<PAGE>

                                     (S) 13
                         No Deductions or Withholdings

13.1 All sums payable by AMD Saxonia under this Agreement shall be paid in full
     without set off or withholding in respect of tax or other deductions. The
     right to set off or the enforcement of any rights of retention or other
     claims is hereby excluded. To the extent that AMD Saxonia or a third party
     is obliged by law to make deductions or withholdings or to retain money for
     tax or other reasons, AMD Saxonia shall be obliged to make a payment of the
     difference together with the relevant amount in such additional amount as
     will ensure that the relevant Bank or the Paying Agent (as applicable)
     receives the full amount which would otherwise have been received by it if
     the relevant deduction or withholding had not been made. AMD Saxonia shall
     be obliged to furnish the Paying Agent, with a copy to the Agent,
     immediately with copies of all the relevant documents confirming that the
     amount deducted or withheld has been paid to the relevant tax or other
     authority in the full amount.

13.2 If AMD Saxonia becomes aware that deductions or withholdings within the
     meaning of 13.1 are required, AMD Saxonia shall notify the Paying Agent,
     with a copy to the Agent, immediately giving details and information
     relating to the relevant regulations.

13.3 If any Bank receives the benefit of a tax credit or a relief or remission
     of tax resulting from the receipt of any additional amount under (S) 13.1
     such Bank shall promptly reimburse to AMD Saxonia such part of that benefit
     as will leave such Bank after such payment in no more and no less
     favourable a position than would have applied if no such benefit or relief
     had been received. The relevant Bank shall be obliged to take all
     reasonable steps to claim such credit, relief or remission from or against
     its tax liabilities even if this results in an obligation to make a
     reimbursement to AMD Saxonia. The Banks shall not, however, be obliged to
     permit AMD Saxonia to inspect its books in connection with the obligation
     referred to above nor to take any particular steps in relation to their tax
     affairs.

13.4 No additional amount will be payable to a Bank under (S) 13.1 to the extent
     that such additional amount becomes payable as a result only of a change in
     the Lending Office of the relevant Bank, unless (i) such change is
     requested by AMD Saxonia, or (ii) under the relevant laws, regulations,
     treaties or rules in effect at the time of the change in Lending Office,
     such additional amount would not have been payable.

13.5 If AMD Saxonia is obliged to pay an additional amount under (S)13.1, AMD
     Saxonia may prepay in whole (but not in part) (without prejudice to (S)
     12.1) the amount made available to it under this Agreement by the affected
     Bank, on AMD Saxonia giving not less than five Banking Days' prior written
     notice to the Paying Agent (with a copy to the Agent) and the affected
     Bank, provided that such notice is given within thirty (30) days of AMD
     Saxonia becoming aware that it would be obliged to pay such amount;
     prepayments under this (S)13.5 shall not be permitted after the expiry of
     such period. The liability of such Bank to make any further advances
     available to AMD Saxonia shall be cancelled on the giving of such notice.

                                      34
<PAGE>

                                     (S) 14
                               Continuity Clause

European Economic and Monetary Union anticipates the introduction of a single
currency and the substitution of the national currencies of Member States
participating in such Monetary Union. On the date on which the Deutsche Mark is
replaced by the single currency, conversion into such currency shall take
effect. The denomination of the original currency shall be retained for so long
as this is legally permissible. Conversions shall be based on the officially
fixed rate of conversion. Neither the introduction of the single currency nor
the substitution of the national currencies of the Member States participating
in such Monetary Union nor the fixing of the official rate of conversion nor any
economic consequences that arise from any of the aforementioned events or in
connection with such Monetary Union shall give rise to any right to terminate
prematurely, contest, cancel, rescind, modify, or renegotiate this Agreement or
any of its provisions or to raise any other objections and/or exceptions or to
assert any claims for compensation. This Agreement shall continue in full force
and effect in accordance with its terms; in particular, interest rates which
have been set for an interest period shall remain unchanged for such interest
period, subject to any mandatory provisions.

                                     (S) 15
                         Representations and Warranties

15.1    AMD Saxonia represents and warrants to the Banks as follows:

15.1.1  each of AMD Saxonia and AMD Holding is a duly organised and existing
        company under the laws of the Federal Republic of Germany;

15.1.2  each of AMD Saxonia and AMD Holding have taken all necessary steps and
        obtained all necessary consents to enter into legally binding
        obligations pursuant to the Operative Documents and the Security
        Documents and to exercise its respective rights thereunder;

15.1.3  the certified Commercial Registry extracts furnished to the Agent and
        the notarially certified articles of association of AMD Saxonia and AMD
        Holding and the other documents to be furnished pursuant to (S) 16.5
        reflect in all respects the actual position existing on the date
        furnished to the Agent;

15.1.4  the execution of the Operative Documents by AMD Saxonia, AMD Holding and
        AMD Inc. and the compliance by each of them of their obligations
        thereunder and the exercise by each of them of their rights thereunder:

        (i)  do not violate any provision of applicable law, any judgment or any
             requirements or any approvals of any authority or the like or
             contractual obligations applicable to them or any other
             obligations;

        (ii) will not result in the termination or acceleration of any of their
             other respective obligations;

                                      35
<PAGE>

        (iii)  will not result in an obligation of any of them to create or
               grant any security in favour of any third party, save as
               contemplated in the Security Documents or in this Agreement.

15.1.5  All Operative Documents entered into by the AMD Companies constitute the
        legally valid and binding obligations of AMD Saxonia, AMD Holding and/or
        AMD Inc., respectively, enforceable in accordance with their terms,
        subject, however, to the Opinion Reservations. For this purpose,
        "Opinion Reservations" means limitations on the enforceability of legal
        documents which are subject to German law or the law of the U.S.A. or
        one of its states to the extent that in respect of these circumstances
        qualifications are expressly made in the legal opinions which are to be
        furnished to the Agent pursuant to (S) 5.1.11 and which are to be
        approved by the Agent. The granting of the security pursuant to (S)
        8.1.1 to (S) 8.1.19 (inclusive) will be effective to grant to the
        Security Agent and / or the Banks a first priority security interest in
        each case, subject to retentions of title permitted in accordance with
        this Agreement. At the date of entering into this Agreement, AMD Saxonia
        does not own any real property, save for the real property referred to
        in (S) 8.1.6.

15.1.6  The audited consolidated financial statements of AMD Holding and the
        audited financial statements of AMD Saxonia each as at 31 December 1996
        which have been furnished to the Agent, together with the relevant cash
        flow statements as at such date were, and the financial statements to be
        delivered pursuant to (S) 16.2.1 will be, prepared in accordance with
        generally accepted accounting principles consistently applied; in
        accordance with these principles they fairly represent, and, in the case
        of the financial statements to be delivered pursuant to (S) 16.2.1, will
        fairly represent, the consolidated financial position of AMD Holding and
        AMD Saxonia respectively without qualification and make provision for
        all material indebtedness and other liabilities, actual or contingent,
        of AMD Holding and AMD Saxonia save to the extent set out in Schedule
                                                                     --------
        15. Since their respective dates of incorporation, there has been no
        --
        material adverse change in the business or financial position of AMD
        Saxonia and AMD Holding.

15.1.7  The audited financial statements of AMD Saxonia to be delivered in
        accordance with (S) 5.1.8 (iii) and (S) 16.2.2 were prepared in
        accordance with generally accepted accounting principles consistently
        applied. They are in accordance with those principles, true and accurate
        in all material respects and fairly represent the financial position of
        AMD Saxonia without qualification; in particular, provision has been
        made for all material indebtednes and all other liabilities, actual or
        contingent. Since the date of the latest audited accounts there has been
        no material adverse change in the business or financial position of AMD
        Saxonia.

15.1.8  There are no actions, suits, proceedings, claims or disputes or
        administrative proceedings pending or threatened against AMD Saxonia or
        AMD Holding or the assets or other sources of income of AMD Saxonia or
        AMD Holding which if an unfavourable outcome was reasonably probable,
        could reasonably be expected to have a material adverse effect on the
        financial position of AMD Saxonia or AMD Holding.

                                      36
<PAGE>

15.1.9   To the best of its knowledge and belief, no Event of Default in
         relation to any of the Operative Documents exists at the time of
         entering into this Agreement.

15.1.10  Neither AMD Holding nor AMD Saxonia is insolvent or incapable of paying
         its debts as they fall due; neither is in liquidation and no steps have
         been commenced for the dissolution of either of them.

15.1.11  AMD Saxonia is a wholly owned and the only subsidiary of AMD Holding
         which is, in turn, a wholly owned subsidiary of AMD Inc.

15.1.12  The ordinary share capital of AMD Holding has been paid up in full and
         the stated ordinary share capital of AMD Saxonia has been paid up in
         accordance with the provisions of the Sponsors' Support Agreement;
         there have been no repayments of capital. AMD Saxonia has no other
         equity participations.

15.1.13  AMD Holding and AMD Saxonia are "Unrestricted Subsidiaries" and not
         "Restricted Subsidiaries" within the meaning of the Advanced Micro
         Devices Inc. 11% Senior Secured Note Indenture dated 1 August 1996, as
         amended, between AMD Inc. and the United States Trust Company of New
         York or the Loan and Security Agreement of July 13, 1999, as amended,
         between AMD Inc. and the Bank of America National Trust and Savings
         Association.

15.1.14  The assets and rights of AMD Saxonia and AMD Holding are not subject to
         encumbrances nor has any security been granted in favour of third
         parties in respect thereof save in respect of customary retention of
         title in favour of suppliers agreed in the ordinary course of business.
         No agreements with respect to extended or prolonged retention of title
         nor current account or group retention of title agreements have been
         concluded with material suppliers.

15.1.15  The operation and assets of AMD Holding and AMD Saxonia are fully
         insured against all risks customarily insured against by similar
         businesses and on similar terms. All insurances have been entered into
         with first class reputable insurance companies which are not affiliates
         of AMD Inc. The insurances in force from time to time in accordance
         with the progress of the Project will at a minimum satisfy the
         requirements set out in (S) 17.8 and Schedule 22.
                                              -----------

15.1.16  AMD Saxonia and AMD Holding have submitted all necessary tax filings
         within a reasonable time of the relevant due date and in any event
         before penalties attach thereto. Neither AMD Saxonia nor AMD Holding is
         in default in relation to the payment of any tax claims or any other
         public law claims, other than those referred to in (S) 15.1.17, which
         are due except for these which are being contested in good faith by
         appropriate proceedings and for which proper provision has been made in
         accordance with German generally accepted accounting principles. There
         is no proposed tax assessment against AMD Saxonia or AMD Holding which
         would, if made, have a material adverse effect on the financial
         position of AMD Holding or AMD Saxonia.

15.1.17  All governmental or public law approvals, consents and measures
         (including those from the European Union) necessary for the proper
         implementation of the Project and the

                                      37
<PAGE>

         compliance by AMD Saxonia and AMD Holding of their obligations pursuant
         to the Operative Documents including in particular all such approvals,
         consents and measures necessary to ensure the legally binding nature of
         all governmental subsidies and grants in connection with the Project
         have been obtained, save for those set out in Part B to Schedule 20 and
                                                                 -----------
         there are no grounds to believe that they could be revoked or cancelled
         or made subject to material restrictions.

15.1.18  All governmental or public law approvals, consents and measures set out
         in Part A of Schedule 20 have been obtained or taken and there is no
                      -----------
         reason to believe that (i) the same would be revoked, cancelled,
         limited or made subject to conditions of a material adverse nature nor
         that (ii) the governmental approvals consents and measures set out in
         Part B of Schedule 20 will not ultimately be available on a timely
                   -----------
         basis.

15.1.19  The business of AMD Saxonia and AMD Holding is not subject to any
         unusual limitations of a material nature which might affect compliance
         by them of their obligations pursuant to the Operative Documents.

15.1.20  Neither AMD Saxonia nor AMD Holding has engaged in any business or
         operation or incurred liabilities save in connection with their
         incorporation, the Project and the Operative Documents.

15.1.21  The factual information furnished by AMD Saxonia or AMD Holding to the
         Agent or to the Banks in connection with any of the Operative Documents
         or the subject matter thereof (including the Information Memorandum
         dated September 1996) is true and accurate in all material respects and
         have not become misleading as a result of the omission of any material
         fact. All assumptions, estimates and projections contained therein have
         been made with due care and attention.

15.1.22  AMD Saxonia has not entered into any Material Equipment Supply
         Contracts or Material Service Contracts other than those notified to
         the Agent in writing, together with copies of the relevant contract or
         orders.

15.2     The above representations and warranties (with the exception of the
         representation in (S) 15.1.4) shall be deemed repeated in full on the
         date of each Drawdown Notice, on the completion of each Project Phase
         pursuant to the Project Schedule, and each submission of AMD Saxonia's
         annual financial statements by reference to the facts and circumstances
         then existing.

                                     (S) 16
                     Reporting and Information Requirements

16.1     AMD Saxonia will as soon as possible and in any event within five
         Banking Days after becoming aware thereof inform the Agent of the
         occurrence of an Event of Default within the meaning of (S) 21 or any
         other Event of Default which in the reasonable opinion of an
         experienced third party would affect the legal or risk position of the
         Banks under this Agreement in a manner which is more than immaterial by
         notice in writing

                                      38
<PAGE>

        setting out the relevant circumstances and describing the measures
        within its powers which AMD Saxonia proposes to take in relation
        thereto.

16.2    AMD Saxonia undertakes to keep the Agent regularly informed of its
        financial affairs during the term of the Facilities. In particular, it
        is agreed as follows:

16.2.1  AMD Saxonia will as soon as possible and in any event within sixty (60)
        days of the end of each quarter of each financial year or, in the case
        of the last quarter of a financial year, within ninety (90) days of such
        quarter, furnish the Agent with (i) quarterly financial statements
        (balance sheet and profit and loss statement as well as a cash flow
        statement) for the relevant quarter and the period of the four preceding
        financial quarters including a comparative statement for the four
        financial quarters preceding such period together with (ii) a
        certificate of compliance in respect of the financial covenants as set
        out in Schedule 18, in each case in a form reasonably satisfactory to
               -----------
        the Agent. The quarterly financial statements to be delivered hereunder
        shall be prepared in accordance with generally accepted accounting
        principles applicable in Germany as consistently applied.

16.2.2  AMD Saxonia will as soon as possible and at the latest within ninety
        (90) days after the end of each financial year furnish to the Agent
        audited financial statements prepared by the Auditor confirming that the
        financial statements are unqualified and including notes to the
        statements and a management report, together with an audited cash flow
        statement including comparative figures for the preceding financial year
        and an updated Management Plan. At the same time, AMD Saxonia will
        furnish the Agent with confirmation of the Auditor that the quarterly
        financial statements furnished at the end of a financial quarter
        correspond with the audited annual financial statements and AMD
        Saxonia's books of account (including a reconciliation statement) and
        whether the financial covenants set out in Schedule 17 have been
                                                   -----------
        properly calculated and have been complied with in the relevant
        financial year, together with a confirmation in accordance with (S)
        15.2.

16.2.3  AMD Saxonia will furnish to the Agent, simultaneously with the annual
        financial statements and other documents pursuant to (S) 16.2.1 and (S)
        16.2.2 written confirmation that as at the end of the relevant balance
        sheet date no Event of Default within the meaning of (S) 21.2 has
        occurred or, alternatively, which events have lead to such an Event of
        Default during the relevant balance sheet period. If such Event of
        Default has occurred, written notice thereof in accordance with (S) 16.1
        shall be given to the Agent, together with written confirmation that,
        except as stated therein, to AMD Saxonia's knowledge no other Events of
        Default have occurred.

16.2.4  AMD Saxonia will furnish to the Agent immediately after receipt all
        reports and similar documents prepared by the auditors or other
        independent firms of accountants and which relate to audits undertaken
        as of the end of a financial year or any interim audits.

16.2.5  [left intentionally blank]

16.2.6  AMD Saxonia will furnish to the Agent the following:

                                      39
<PAGE>

     (i)    within thirty (30) days after the end of each calendar quarter a
            status report in the form set out in Schedule 8, as amended;
                                                 ----------

     (ii)   within sixty (60) days of the end of each quarter of each financial
            year, or in the case of the last quarter of a financial year within
            ninety (90) day of such quarter and within ninety (90) days after
            the end of each Project Phase a Statement as to the Use and Source
            of Funds and compliance with the reimbursement obligations of the
            AMD Saxonia Wafer Purchase Agreement in accordance with Schedule 16,
                                                                    -----------
            as amended, signed by the Auditor; and

     (iii)  at the latest by 28 February 2002, a status report as of 31 December
            2001 relating to the Project prepared by the Technical Advisor
            updating (and in form similar to) the Technical Appraisal of the
            Technical Advisor dated 5 October 2000.

16.3 AMD Saxonia will inform the Agent promptly in writing in the event that
     production in the Fabrication Facility or research activity in the Design
     Center is not undertaken at any time after first commercial shipment of
     Products (as defined in the AMD Saxonia Wafer Purchase Agreement) for a
     period of more than five (5) successive days or if legal administrative or
     arbitration proceedings are instituted or threatened against AMD Saxonia or
     AMD Holding which may have a material adverse affect on the assets or
     ability of AMD Saxonia or AMD Holding to comply with its obligations under
     the Operative Documents.

16.4 AMD Saxonia will inform and keep the Agent informed in a reasonable manner
     of all circumstances relating to the operations of AMD Saxonia and its
     other activities as well as its economic situation to the extent required
     by the Agent or any Bank or to the extent the same may have a material
     adverse effect on AMD Saxonia's financial position or the viability of the
     Project. This obligation also applies to circumstances affecting any
     affiliate of AMD Saxonia and which may materially adversely affect the
     operations or other activities or economic position of AMD Saxonia or the
     assets which are the subject matter of the Security Documents.

16.5 On any change to the Commercial or Land Registry extracts furnished to the
     Agent, AMD Saxonia will promptly inform the Agent of the relevant event by
     providing copies of the documents to be filed with the Commercial or Land
     Registry and, following filing, AMD Saxonia will provide the Agent with
     certified copies of the new extracts.

                                     (S) 17
                                   Covenants

17.1 [left intentionally blank]

17.2 AMD Saxonia will comply in all material respects with all relevant laws and
     other regulations and administrative directives applicable to it and will
     on a timely basis comply with all reasonable requirements of the fiscal
     authorities.

                                      40
<PAGE>

17.3 AMD Saxonia will at all times promptly enforce to the full extent
     reasonable all its rights under the Operative Documents and at the Agent's
     request will take all reasonable steps to so do. AMD Saxonia hereby
     irrevocably appoints the Agent to take all measures and to enter into all
     undertakings which the Agent regards as necessary following the occurrence
     of an event which entitles the Banks to terminate this Agreement.

17.4 AMD Saxonia undertakes to complete the Project in accordance with:

     (i)  the timetable contained in the Project Schedule (save that the
          completion date of any Project Phase (other than last) may be deferred
          for up to six (6) months in aggregate for all such deferrals) provided
          that Completion shall be no later than 31 December 2000; and

     (ii) the Plans and Specifications.

17.5 AMD Saxonia will on a timely basis and to the full extent comply with its
     obligations pursuant to the Operative Documents and particular, take all
     steps to enable AMD Inc. and/or AMD Holding to comply with its respective
     obligations under the Sponsors' Support Agreement, in particular in
     connection with the increase of AMD Saxonia's ordinary share capital as
     well as the contribution of other equity capital by the Sponsors. If AMD
     Saxonia intends not to comply with its obligations pursuant to the
     Operative Documents it will immediately inform the Agent thereof in
     writing.

17.6 AMD Saxonia will permit the Agent, the Banks' Auditor and the Technical
     Advisor as well as all other advisors of the Agent who are bound by a
     professional duty of confidence at all reasonable times to inspect its
     properties and to examine the financial and other records of AMD Saxonia
     and to discuss the affairs of AMD Saxonia and AMD Holding to the extent
     relevant to this Agreement and the risk position of the Banks hereunder
     with the management and competent employees. AMD Saxonia will provide
     unrestricted access to its relevant records and those of AMD Holding and
     make available a reasonable number of copies thereof at reasonable request.
     All such inspections and examinations shall be performed in such manner as
     not to unreasonably disrupt AMD Saxonia's normal business operations and
     its manufacture of the products described in the preamble to this
     Agreement.

17.7 AMD Saxonia will at all times maintain proper books of account and prepare
     its records in accordance with general accepted book keeping and accounting
     principles in Germany as consistently applied. The balance sheet
     assumptions will be applied consistently by reference to generally accepted
     valuation principles.

17.8 AMD Saxonia will at all times maintain insurance which in type (all
     buildings, machines, other equipment, stock, business interruption, third
     party liability and the like), scope and amount is at least equal to the
     insurance cover of a comparable business and which, in addition, satisfies
     the requirements of the Operative Documents. In particular, AMD Saxonia
     undertakes to maintain the insurances referred to in Schedule 22 in the
                                                          -----------
     scope and on the terms and conditions therein referred to, save that AMD
     Saxonia shall be under no obligation to maintain insurance with respect to
     the risk of

                                      41
<PAGE>

       earthquake and floods, provided that it shall have first furnished to the
       Agent confirmation with respect thereto in writing from a third party
       (acceptable to the Agent) in form and substance satisfactory to the Banks
       and the Guarantors. The persons referred to in Schedule 22 shall be named
                                                      -----------
       in all contracts of insurance as an additional insured and the Security
       Agent as "loss payee" in accordance with Schedule 22. At the end of each
                                                -----------
       financial year, AMD Saxonia will furnish to the Agent a complete list of
       the above insurances for the next succeeding financial year giving the
       details referred to in Schedule 22 together with confirmation from its
                              -----------
       insurance brokers and the Insurance Advisor that AMD's insurance cover
       complies with the said requirements.

17.9   AMD Saxonia will construct the Plant and the Design Center in such a way
       as will ensure that the Plans and Specifications are complied with.

17.10  AMD Saxonia will at all times ensure that it has obtained and/or taken
       and will maintain and/or take on a timely basis all necessary
       governmental approvals, permits and measures required for performance by
       it of its obligations under the Operative Documents to which it is party.

17.11  AMD Saxonia will make payment of all fees and other amounts due in
       connection with the 65/35 Guaranty promptly. The Guarantors through their
       authorised representatives, C&L Deutsche Revision AG, Dusseldorf, are
       entitled to payment of one-off and regular fees together with commitment
       fees and processing fees in connection with the 65/35 Guaranty in
       accordance with the following provisions (as a genuine contract for the
       direct benefit of third parties):

       (i)  AMD Saxonia shall after acceptance, and for the duration, of the
            65/35 Guaranty pay the following guaranty fees:

            -  on the issue of the guaranty commitment, 0.25 % of the maximum
               guaranty amount in relation to the guaranteed indebtedness,
               whereby the calculation of the fee will be determined in
               accordance with the drawdowns (in accordance with Section 5 of
               the Guaranty Decision) so that the fee due on the issue of the
               documents relating the Guaranty Decision are calculated only by
               reference to the first drawdown and the first fees due in respect
               of the following drawdowns are due when such drawdowns are
               included in the terms of the Guaranty and/or in the case of
               special guaranty issues on the issue of the Guaranty.

            -  following the issue of the guaranty,on 1 April and 1 October of
               each year in respect of each half year commencing on such dates,
               0.25 % of the Guaranty amount outstanding at such times (the
               maximum amount referred to in the Guaranty in respect of the
               guaranteed indebtedness less payments of principal).

       (ii) AMD Saxonia undertakes to pay the following amounts to the
            Guarantors, in the event that the Guarantors shall so request:

                                      42
<PAGE>

             -  on any extension of the guaranty commitment, a commitment fee up
                to an amount of 0.25 % of the extended guaranty commitment,

             -  in the event of material amendments to a guaranty which has been
                approved but not yet issued, a processing fee in an amount of up
                to DM 25,000;

       (iii) the processing fee for material amendments to an approved but
             unissued guaranty is payable to C&L Deutsche Revision AG,
             Dusseldorf to its Acount No. 31 308 12, Westdeutsche Landesbank
             Girozentrale, Dusseldorf. Other current fees together with the
             commitment fee are payable to C&L Treuarbeit Deutsche Revision AG,
             Dusseldorf to their trust account "Bundesminister der Finanzen"
             Account No.: 30 151 12 at Westdeutsche Landesbank Girozentrale,
             Dusseldorf quoting the reference number of the guaranty.

17.12  AMD Saxonia undertakes to comply with and to fullfill all covenants and
       other ancillary requirements applicable to it in connection with the
       grant of the subsidies. This obligation applies in particular to
       covenants and ancillary requirements which are dealt with in the SAB/
       Dresdner Subsidy Agreement and the AMD/Dresdner Subsidy Agreement
       together with the schedules to these documents. AMD Saxonia also
       undertakes to ensure that AMD Companies undertake all steps applicable to
       them under the covenants and other ancillary requirements in connection
       with the subsidies. AMD Saxonia undertakes futhermore to ensure that all
       obligations undertaken by it in connection with the granting of other
       state aid (in particular investment allowances) are fulfilled.

17.13  AMD Saxonia undertakes to enter into the Equipment Supply Contracts and
       Service Supply Contracts in accordance with the timetable set out in the
       Project Schedule and to ensure that equipment or goods delivered pursuant
       thereto are subject to retention of title only to the extent customary
       and in the ordinary course of business. AMD Saxonia will use its best
       endeavours to ensure that retention of title arrangements are not entered
       into with material suppliers and in any event that no current account,
       group or extended or prolonged retention of title agreements are entered
       into. The Equipment Supply Contracts entered into by AMD Saxonia shall
       not in the aggregate require the making of advance payments by AMD
       Saxonia in excess of an aggregate amount of DM 20,000,000.

17.14  AMD Saxonia undertakes to hedge at least 50 % of all variable interest
       rate advances with interest rate caps with the Agent or other Banks and
       to inform the Paying Agent thereof. Any advances for which AMD Saxonia
       has elected a fixed interest rate pursuant to (S) 6.3 shall be deemed
       hedged for the purposes of this (S) 17.14. All rights arising out of
       contracts entered into by AMD Saxonia to hedge interest rate shall be
       assigned to the Security Agent in accordance with the Global Assignment
       in the form set out in Schedule 47; to the extent an assignment is not
                              -----------
       possible, the Banks shall be granted other appropriate security rights.

                                      43
<PAGE>

17.15  AMD Saxonia undertakes that, until satisfaction in full of all claims of
       the Banks under this Agreement, it will not, without the consent of the
       Agent and, in the case of (ii), (v), (ix) and (x) without the consent of
       the Guarantors:

       (i)    grant in favour of third parties any security as security for its
              own obligations or those of a third party save as contemplated or
              permitted by the Operative Documents and save for customary
              retention of title rights in favour of suppliers permitted
              pursuant to (S) 17.13. AMD Saxonia's right to further encumber
              real property already subject to land charges in favour of the
              Banks shall remain unaffected ((S) 1136 BGB);

       (ii)   incur indebtedness for borrowed money or incur liabilities save
              for such liabilities contemplated in the Operative Documents and
              liabilities in the ordinary course of business;

       (iii)  save in respect of the lease agreement in respect of premises at
              Washingtonstrasse 16 A/B, 01139 Dresden, dated 7/13.08.1996
              entered into with Siemens Technopark GmbH Dresden & Co.
              Grundstucksverwaltung OHG or any extension thereof, incur any
              other obligations as lessee, save to the extent that such
              obligations arise under agreements entered into in the ordinary
              course of business in connection with the operation of the
              Fabrication Facility and of the Design Center and do not exceed in
              aggregate more than DM 50,000,000;

       (iv)   establish any subsidiaries or acquire interests in any other
              undertakings or enter into any merger agreements;

       (v)    dispose of any assets or rights and/or remove such assets from the
              location of the Fabrication Facility and the Design Center save to
              the extent (a) contemplated by and permitted in the Operative
              Documents (b) the disposal is of assets replaced by assets of at
              least equal or greater cost in the ordinary course of business
              which are acquired within six months of the sale of the original
              assets (or such longer period as is reasonably necessary in the
              light of the market availability of the relevant asset and
              provided that AMD Saxonia has entered into contractually binding
              agreements for the replacement of the original assets within three
              months of the sale of such assets), or (c) the aggregate book
              value of which does not exceed DM 25,000,000 in any calendar year
              or (d) the disposal is of assets with an individual acquisition
              cost of less than DM 50,000 or of stores supplies in the ordinary
              course of business;

       (vi)   make any loans to or deposit funds with any third party, purchase
              or acquire securities or other financial instruments, save to the
              extent the same:

              (a)   are assets held in the bank accounts charged pursuant to (S)
                    8 or such other accounts opened with the consent of the
                    Agent, which are charged to the Banks,

              (b)   constitute trade credit,

                                      44
<PAGE>

            (c)     constitute the payment of amounts due under the AMD Saxonia
                    Wafer Purchase Agreement in respect of deliveries
                    thereunder, or

            (d)     are bona fide employee loans which are in aggregate not in
                    excess of DM 5,000,000,

            (e)     relate to the payment of amounts in respect of AMD Saxonia's
                    stated capital which shall be transferred promptly to a
                    Project Account pursuant to (S) 19, or

            (f)     are (for the avoidance of doubt) employee salary funds
                    withheld by AMD Saxonia for employees to acquire stock of
                    AMD Inc. in connection with an employee stock purchase plan;

     (vii)  make any payments of dividends or other repayment of capital to AMD
            Holding or to make any other payment AMD Inc. or to any affiliate of
            AMD Inc., save to the extent such payments are permitted pursuant to
            Section 3 of the Sponsors' Subordination Agreement, in the form set
            out in Schedule 30 or Section 6.3 of the Sponsors' Support
                   -----------
            Agreement;

     (viii) make payments pursuant to the Operative Documents (and, in
            particular, not to make any repayment of interest or principal on
            the Sponsors' Loan) save in accordance with the terms of such
            Operative Documents;

     (ix)   undertake only business compatible with the purpose set out in the
            first paragraph of the preamble to this Agreement;

     (x)    incur any expenditure (including Capital Expenditure) which is not
            of the type contemplated in the Operative Documents and which is not
            incurred in the ordinary course of business;

     (xi)   terminate or amend any of the Operative Documents, save for

            (a)     Equipment Supply Contracts which are not Material Equipment
                    Supply Contracts;

            (b)     Service Contracts which are not Material Service Contracts;

            (c)     amendments to the agreement set out in Schedule 39
                                                           -----------
                    (Design/Build Agreement), the Material Equipment Supply
                    Contracts, the Material Service Contracts and the Plans and
                    Specifications which adversely affect the value of the
                    Project, the Fabrication Plant and the Design Center or
                    their purpose, or the production capacity or other
                    characteristics required or agreed in the AMD Saxonia Wafer
                    Purchase Agreement in a manner which is immaterial only and
                    which are in accordance with the Project Budget and the
                    Project Schedule are however permitted without the consent
                    of the Banks;

                                      45
<PAGE>

              (d)     the Project Budget and the Project Schedule which may be
                      amended in accordance with the provisions of (S) 18.

       (xii)  agree to any changes to the articles of incorporation of AMD
              Saxonia, in particular changes of its fiscal year, or grant any
              general powers of attorney with respect to the business of AMD
              Saxonia except as otherwise permitted in the Operative Documents;

       (xiii) enter into any agreement compliance with which would be contrary
              to any of the obligations of AMD Saxonia pursuant to the Operative
              Documents;

       (xiv)  [left intentionally blank]

       (xv)   at any time during the currency of this Agreement manufacture in
              any quarter microchip silicon wafers containing microprocessors
              other than general purpose microprocessors and related products in
              such number as would, prior to Completion, be in excess of 25% or
              after Completion, be in excess of 35 % of all wafers produced by
              AMD Saxonia during the relevant quarter.

17.16  AMD Saxonia undertakes until the satisfaction in full of all claims of
       the Banks under this Agreement to ensure that the financial covenants set
       out in Schedule 17 are complied with at all times and/or to the extent
              -----------
       AMD Saxonia has no direct influence on compliance with such financial
       covenants, to use its best endeavours to ensure that they are so complied
       with.

17.17  AMD Saxonia undertakes to keep and maintain its fixed and current assets
       exclusively within the area of the Plant and Design Center shown in
       Schedules 44 and 45.
       ------------     --

17.18  [left intentionally blank]

17.19  AMD Saxonia undertakes, as a genuine contract for the direct benefit of
       third parties, to permit an examination at any time by the Guarantor or
       an authorised representative of the Guarantor as to whether there is any
       possibility of a claim being made pursuant to the 65/35 Guaranty or as to
       whether circumstances exist or have existed which would make such a claim
       possible. AMD Saxonia furthermore undertakes (as a genuine contract for
       the direct benefit of third parties) to provide to the Guarantors all
       information requested by them in connection with the 65/35 Guaranty. AMD
       Saxonia is aware that the examination and information rights referred to
       above exist also in favour of the Banks, however, only to the extent such
       documentation relates to the guaranteed Facilities. AMD Saxonia hereby
       relieves and discharges the Banks from their duty of confidentiality as
       against the Guarantors and their authorised representatives, to the
       extent that the aforesaid rights in favour of the Banks are exercised.
       AMD Saxonia undertakes, as a genuine contract for the direct benefit of
       third parties, to bear the costs of all examinations by the Guarantors
       referred to above.

17.20  [left intentionally blank]

                                      46
<PAGE>

17.21  AMD Saxonia undertakes not to enter into any confidentiality and non-
       competition undertakings with its employees, officers or contracting
       parties other than in the form agreed with the Agent prior to entering
       into this Agreement or save as may be otherwise agreed with the Agent.

17.22  AMD Saxonia will at the request of the Agent use its best endeavours to
       obtain from any contracting parties a Consent and Agreement, to the
       extent that such Consent and Agreement is not required to have been
       already obtained, for contracts required to be assigned to the Banks in
       accordance with this Agreement or the Security Documents, in the form set
       out in Part II of Schedule 40 or such other form as shall have been
                         -----------
       consented to by the Agent, if the Agent deems the same to be necessary to
       ensure the unrestricted continuation of the Project in the event of
       enforcement of its security and AMD Saxonia does not demonstrate the
       contrary and will make an offer to the Agent enabling it to assume the
       contract in accordance with the provisions of (S) 3 of the Security
       Document referred to in Schedule 49.
                               -----------

17.23  AMD Saxonia will make borrowings under the Revolving Loan Facility
       Agreement (in accordance with the terms thereof):

       (i)   as and to the extent necessary to comply at all times after 1 July
             2001 with the Minimum Liquidity Covenant (taking into account cash
             then on deposit in the Project Accounts and Cash Equivalent
             Investments (under and as defined in Schedule 23) then held); and
                                                  -----------

       (ii)  as and to the extent and at the times necessary such that AMD
             Saxonia shall have sufficient funds to finance its general
             corporate funding requirements, taking into account amounts then
             available for drawing under Facility A hereunder and other amounts
             then available to it, including without limitation amounts
             theretofore paid to AMD Saxonia under the AMD Saxonia Wafer
             Purchase Agreement.

       AMD Saxonia undertakes not to reduce or agree to reduce the Total
       Revolving Loan Commitment Amount to less than US$ 500,000,000 (five
       hundred million US Dollars) without the consent of the Agent.

                                     (S) 18
                        Project Budget; Project Schedule

18.1   Prior to Completion, the Project will be implemented pursuant to the
       Project Budget and the Project Schedule.

18.2   Within fourteen (14) days after the end of each Project Phase described
       in the Project Schedule, AMD Saxonia will furnish to the Agent the
       Scheduled Project Phase Technical Completion Certificates signed by the
       AMD Companies and the Technical Advisor in accordance with Schedules 9
                                                                  -----------
       and 10 together with a confirmation pursuant to (S) 15.2. At the same
           --
       time, AMD Saxonia will furnish an updated Management Plan

                                      47
<PAGE>

     approved by the Sponsors setting out all projected future Capital
     Expenditure in connection with the Project. Prior to Completion, AMD
     Saxonia will consult and agree with the Agent on a timely basis any
     amendments or variations to the Project Budget or the Project Schedule
     which it regards as necessary. Project Budgets and Project Schedules
     amended with the consent of the Agent, who may consult with the Technical
     Advisor, the Auditor and the Banks' Auditors with regard thereto, shall be
     regarded as Project Budgets and Project Schedules within the meaning of
     this Agreement.

                                     (S) 19
                                Project Accounts

19.1 AMD Saxonia undertakes to ensure that - without prejudice to (S) 17.15 (vi)
     (e) - all payments under the Operative Documents or otherwise in connection
     with the Project which are made to it or to be paid by it are effected only
     through one or more of the accounts maintained with the Security Agent
     (such accounts herein referred to as "Project Accounts").

19.2 Amounts standing to the credit of the Project Accounts may be used only in
     the ordinary course of business of AMD Saxonia (including for the purpose
     of financing Capital Expenditure), for the settlement of financing costs
     and for the repayment of the Facilities, the payment of interest and the
     repayment of principal under the Revolving Loan Facility Agreement (to the
     extent permitted under the Sponsors' Subordination Agreement set out in
     Schedule 30, as amended).
     -----------

19.3 Cash standing to the credit of the Project Accounts may be invested in the
     securities and assets set out in Schedule 23 which shall be maintained in a
                                      -----------
     custody account maintained solely with the Security Agent forming part of a
     Project Account or in other custody accounts opened with the consent of the
     Agent and charged to the Banks.

19.4 [left intentionally blank].

19.5 The Banks shall be entitled to set off any claims due against AMD Saxonia
     against the amount standing to the credit of any of the Project Accounts;
     it shall be sufficient for this purpose for the Agent to issue a
     declaration of set off.

19.6 All credits securities and assets standing to the credit of the Project
     Accounts shall be charged in favour of the Banks as security for their
     claims under this Agreement pursuant to (S) 8.

                                     (S) 20
                              Consent of the Banks

20.1 In all cases in which AMD Saxonia requires the consent of the Agent, the
     Security Agent or the Banks pursuant to the provisions of this Agreement,
     the Agent, the Security Agent and/or the Banks shall be entitled to
     withhold their consent only if the legal or

                                      48
<PAGE>

     risk exposure of the Banks would otherwise be affected in a manner which is
     material. In this regard circumstances shall be regarded as material which
     relate, in particular, to:

     (i)    the interests of the Banks in receiving payments under this
            Agreement and the other Operative Documents in a timely and complete
            manner or which would affect their ability to realise sufficient
            proceeds from the realisation of security;

     (ii)   the shareholding structure of AMD Inc. AMD Holding and AMD Saxonia;

     (iii)  the obligations of the Sponsors pursuant to the Sponsors' Support
            Agreement;

     (iv)   the viability of the Project by reference, in particular, to the
            obligations of AMD Inc. under the AMD Holding Wafer Purchase
            Agreement and the AMD Holding Research, Design and Development
            Agreement in the form set out in Schedule 34 or AMD Holding under
                                             -----------
            the AMD Saxonia Wafer Purchase Agreement and the AMD Saxonia
            Research, Design and Development Agreement in the form set out in
            Schedule 36; or
            -----------

     (v)    the compliance in full or the ability to comply with the conditions
            of the Guaranty Decision, the 65/35 Guaranty and the AMD/Dresdner
            Subsidy Agreement.

20.2 Each consent of the Banks shall be in writing. The parties agree that the
     consent of the Banks shall not be deemed to have been given unless
     expressly given in writing and that consents should be given on a timely
     basis taking into account the interests of AMD Saxonia and the other Banks.
     The Agent shall be authorised to give such consent unless such consent
     relates to the duties of the Paying Agent. In such case, the Paying Agent
     may give such consent.

                                     (S) 21
                   Termination of the Facilities by the Banks

21.1 The Banks shall be entitled to terminate the Facilities for good cause, in
     whole or in part, and without notice or subject to such notice as they may
     determine and,

     (i)    to refuse to make available to AMD Saxonia advances under the
            Facilities and/or

     (ii)   to require the immediate repayment of all outstanding advances
            together with accrued interest and other fees and amounts payable by
            AMD Saxonia pursuant to this Agreement and/or

     (iii)  to require the payment of damages including any loss of profit
            pursuant to (S) 12 which the Banks may suffer following termination
            between the time of termination and the expiry of the relevant
            Interest Period and/or

     (iv)   to realise the security granted by AMD Saxonia,

                                      49
<PAGE>

21.2 There shall be good cause for termination within the meaning of the
     aforesaid (S) 21.1 and of (S) 19 of the General Terms and Conditions of the
     Agent, in particular, if any of the following events has occurred and is
     continuing and if in the opinion of the Banks, exercising the standard of
     care customary in commercial relations, the legal or risk position of the
     Banks is materially adversely affected thereby:

     (i)    AMD Saxonia shall be in default in any payment of interest or
            principal under this Agreement for more than three months;

     (ii)   the information provided by AMD Saxonia in respect of its financial
            position is incorrect or incomplete in any material respect;

     (iii)  AMD Saxonia, AMD Inc. or AMD Holding ceases payment of its creditors
            or composition, insolvency or similar proceedings are applied for in
            respect of all of the assets of AMD Saxonia, AMD Inc. or AMD Holding
            or a material part of the assets of AMD Saxonia, AMD Inc. or AMD
            Holding are subject to mandatory attachment - and which in the case
            of involuntary proceedings or attachment against AMD Inc. have not
            been fully discharged within 60 days - or AMD Saxonia, AMD Inc.or
            AMD Holding enters into negotiations with respect to any extra-
            judicial composition proceedings;

     (iv)   AMD Saxonia, AMD Holding or AMD Inc. are in default of any payment
            due to the Banks pursuant to the Sponsors's Support Agreement or any
            other Operative Document for more than five (5) Banking Days
            following receipt of written notice of default;

     (v)    the Facilities are not used for the purposes set out in (S) 3;

     (vi)   any representation and warranty pursuant to (S) 15 including any
            deemed repetition thereof,  was incorrect in any material respect at
            the time it was given;

     (vii)  any condition precedent for utilisation of the Facilities pursuant
            to (S) 5 subsequently ceases to be complied with without the
            previous consent of the Banks;

     (viii) any of the obligations or covenants pursuant to (S)(S) 17 or 18 are
            breached, whether or not as a result of action by AMD Saxonia, and
            cannot be complied with or remedied or, to the extent the breach is
            capable of remedy, the breach is not remedied within seven (7)
            Banking Days after the Agent has given AMD Saxonia written notice
            thereof;

     (ix)   AMD Holding or AMD Inc. does not comply with any material provision
            of the Sponsors' Support Agreement, the Sponsors' Loan Agreement in
            the form set out in Schedule 29, as amended, the Revolving Loan
                                -----------
            Facility Agreement or of the other Operative Documents to which it
            is a party and, to the extent, the breach is capable of remedy, and,
            is not remedied within seven (7) Banking Days after the Agent has
            given written notice thereof; Articles I and III and

                                      50
<PAGE>

            Sections 4.1, 4.3, 6.2, 13.1 (i) (a) to (d) and (f), 13.1 (iii),
            13.2., 13.3., 13.4 (i) to (viii) and 13.5 of the Sponsors' Support
            Agreement shall without prejudice to the generality of the foregoing
            be regarded as material;

     (x)    if AMD Inc. undertakes a "Stock Offering" within the meaning of the
            Sponsors' Support Agreement in the Fiscal Year 1998 and, if
            permitted under the Indenture referred to in (S) 21.2 (xvi) of this
            Agreement (without utilizing any of the provisions contained in the
            first proviso to Section 4.07 (iv) thereof), AMD Inc. fails to
            contribute the full amount of the "Class C Sponsors Loans" within
            the meaning of the Sponsors' Support Agreement forthwith following
            receipt of proceeds from the "Stock Offering" referred to above; the
            events referred to in (ix) above shall remain unaffected;

     (xi)   AMD Saxonia is in breach of any material provision of this
            Agreement, the Security Documents, the AMD Saxonia Research, Design
            and Development Agreement in the form set out in Schedule 36 or the
                                                             -----------
            AMD Saxonia Wafer Purchase Agreement;

     (xii)  any of the Operative Documents is or becomes invalid or
            unenforceable or its validity or enforceability is challenged by AMD
            Saxonia or any of the Sponsors;

     (xiii) receivership, composition or insolvency proceedings against the
            assets of the contractor for the Fabrication Facility and the Design
            Center or against a supplier are commenced or there is a material
            adverse change in the financial position of such general contractor
            or such supplier and any such event could reasonably be expected to
            have a material adverse effect on the Project, unless AMD Saxonia
            has cured the relevant event by entering into adequate substitute
            arrangements satisfactory to the Agent within 45 days;

     (xiv)  a material adverse change in the financial condition of AMD Saxonia,
            AMD Holding or AMD Inc., or AMD Inc. on a consolidated basis, and as
            result there is likely to be a material adverse effect on the
            Project;

     (xv)   AMD Saxonia, AMD Holding or AMD Inc. are in default with any payment
            obligation in favour of a third party in an aggregate amount of more
            than DM 15,000,000;

     (xvi)  the occurrence of an "Event of Default" within the meaning of the
            Loan and Security Agreement of 13 July 1999, as amended, between,
            inter alia, AMD Inc. and Bank of America National Trust & Savings
            Association as "Administrative Agent" or there is an "Event of
            Default" within the meaning of the Indenture of 1 August 1996, as
            amended, between AMD Inc. and United States Trust Company of New
            York as "trustee";

                                      51
<PAGE>

     (xvii)  any action under this Agreement requiring consent is undertaken
             without the necessary consent unless the refusal to grant consent
             is unlawful or in contravention of the terms of this Agreement;

     (xviii) the insurances to be maintained pursuant to (S) 17.8 are not
             maintained in full force and effect;

     (xix)   any material governmental approvals, consents or permits are not
             granted, are revoked or are made subject to conditions or if any
             governmental regulations or decrees are passed relating to the
             Project which will prejudice the viability of the Project and which
             are not either set aside by adequate action of AMD Saxonia to
             discharge the effects of such regulations or decrees or if AMD
             Saxonia has not suggested a course of action reasonably
             satisfactory to the Agent within 30 days thereof;

     (xx)    any statement made to the Banks by AMD Saxonia, AMD Holding or AMD
             Inc. in connection with the Project is inaccurate or incomplete in
             any material respect to the extent that such statement is of
             material significance for the viability of the Project or for the
             compliance by AMD Saxonia, AMD Holding or AMD Inc. with its
             obligations under the Operative Documents;

     (xxi)   AMD Saxonia ceases to be a wholly owned subsidiary of AMD Holding
             or AMD Holding ceases to be a wholly owned subsidiary of AMD Inc.

     (xxii)  AMD Saxonia's ordinary share capital is not fully paid in by 31
             December 1997 in an amount of at least DM 217,500,000 or
             subordinated shareholder loans or Revolving Loans or equity are or
             is, as the case may be, not made available in accordance with the
             Sponsors' Support Agreement and/or the Revolving Loan Facility
             Agreement.

     (xxiii) projections in the current Management Plan (delivered pursuant to
             (S) 16.2.2) show that AMD Saxonia will be unable, at any time
             during the period from the date of such Management Plan to 31
             December, 2005, to comply with the Minimum Liquidity Covenant,
             after taking into account:

             (a)   the Available Revolving Loan Facility Amount; and

             (b)   other cash resources available to AMD Saxonia,

             unless within 10 Banking Days after receipt of written notice from
             the Agent, AMD Inc. provides the Agent with such evidence as shall
             be reasonably satisfactory to the Banks in the exercise of their
             due discretion with respect to the ability of AMD Inc. and AMD
             Saxonia to fund the amount necessary to ensure compliance with the
             Minimum Liquidity Covenant as aforesaid.

     (xxiv)  the terms or conditions of the 65/35 Guaranty or of the Guaranty
             Decision or the Subsidy Agreement are not complied with or breached
             or the 65/35 Guaranty is no longer available in full, or investment
             or interest grants or

                                      52
<PAGE>

              investments subsidies or other material state assistance is not
              available in the amount promised and AMD Inc. does not make
              available compensation pursuant to the Operative Documents, or AMD
              Saxonia, AMD Holding or AMD Inc. breaches the terms and conditions
              of other state assistance material to the Project and as a result
              thereof it is likely that the same will not be available in their
              full amount or are revoked or cancelled;

     (xxv)    [left intentionally blank]

     (xxvi)   any of financial covenants set out in Schedule 17 are not complied
                                                    -----------
              with;

     (xxvii)  the Agent becomes aware that AMD Saxonia has breached any other
              material contractual obligations;

     (xxviii) other circumstances occur or become known which may prejudice the
              ability of AMD Saxonia to repay the Facility;

     (xxix)   the Agent has not received by 31 March 2000 written confirmation
              from the Technical Advisor to the effect that the conditions
              required for Completion in the Technical Completion Certificate
              (Technical Advisor) as set out in Schedule 10 can be satisfied
                                                -----------
              prior to 31 December 2000.

The Banks shall not be entitled to rely upon any of the aforesaid events if the
circumstances giving rise thereto have been remedied within ten (10) Banking
Days following receipt of written notice from the Agent. This shall not apply to
the events referred to in (i), (ii), (iii), (viii) (ix), (x), (xiii), (xiv),
(xvii), (xviii), (xx), (xxi), (xxii), (xxvi) above. The Agent will consult with
the Guarantors before terminating on the grounds of the Events of Default
referred to in (viii) and (xv) and (xxiii). Termination on the grounds of the
Event of Default referred to in (xxv) is permitted only in agreement with the
Guarantors.

                                    (S) 22
                               Agency Provisions

22.1 The Banks have agreed to participate in the profits and risks of the
     Facilities in the form of a disclosed consortium. Any joint and several
     liability, the Banks is excluded; each Bank is liable only for the relevant
     commitment undertaken by it pursuant to (S) 2 and Schedule 1. Each Bank
                                                       ----------
     shall immediately inform the Agent in respect of any breach of the
     Operative Documents of which it becomes aware. A corresponding obligation
     shall apply to the Agent in the performance of its duties pursuant to (S)
     22.3.

22.2 The Agent is acting on behalf of the Banks under this Agreement. The Banks
     hereby appoint the Agent to act on their behalf as Agent in relation to the
     rights and obligations of the Banks under this Agreement, with exception of
     rights and obligations pursuant to (S) 24, and the other Operative
     Documents pursuant to the terms thereof under the following terms and
     conditions. Each of the Banks hereby irrevocably authorizes the Agent to
     give on their behalf all contractually binding declarations in connection
     with

                                      53
<PAGE>

        the implementation in this Agreement and the other Operative Documents
        and to pursue their rights and obligations in accordance therewith. The
        Agent shall be exempted from the restrictions of (S) 181 BGB. The Agent
        shall be authorised to delegate authority to entities within its group
        or to persons subject to a professional duty of confidence and revoke
        the same free from any restrictions pursuant to (S) 181 BGB. Dresdner
        Bank AG shall in its capacity as house bank pursuant to the Subsidy
        Agreements, exercise its rights thereunder exclusively in accordance
        with the terms of such agreements.

22.3    In addition, the Agent shall have the following duties:

22.3.1  verification of satisfaction of the conditions precedent pursuant to (S)
        5.

22.3.2  negotiations with AMD Saxonia and the Sponsors as well as changes and
        additions to this Agreement and the other Operative Documents including
        any changes to the method of payment;

22.3.3  prompt circulation to the Banks of Drawdown Notices submitted by AMD
        Saxonia to the Agent (together with confirmation from the Agent that it
        has received the documents to be furnished pursuant to (S) 4.1.1 (i) -
        (iii) and (S) 4.1.2 (i) - (iii), as the case may be), as well as
        circulation to each of the Banks of the documents to be furnished by AMD
        Saxonia or in individual cases, required by the Banks or any of them
        pursuant to (S) 16 and other information which is required to be
        circulated to all the Banks in accordance with the terms of this
        Agreement or the Operative Documents;

22.3.4  prompt notification of the Banks of all material circumstances coming to
        the attention of the Agent in connection with the implementation of this
        Agreement which affect the enforcement of the rights of all or any of
        the Banks such as in particular the occurrence of an event pursuant to
        (S) 21;

22.3.5  distribution of all requisite information in connection with the 65/35
        Guaranty to the Guarantors and consultation with them;

22.3.6  the convening and conduct of meetings of the Banks;

22.3.7  implementation of resolutions of the Banks;

22.3.8  monitoring of compliance with the provisions of this Agreement and the
        other Operative Documents without prejudice to the obligations of the
        Banks pursuant to (S) 22.1, sentence 3;

22.3.9  instruction of, and consultation with, the Technical Advisor, the
        Insurance Advisor, the Banks' Auditor and other advisors, for example
        lawyers.

22.4    If the Agent issues a material instruction within the meaning of (S)
        22.3.4 each Bank, including the Agent, shall be entitled to require the
        convening of a meeting of the consortium. In addition, a meeting of the
        consortium can be required at any time by 25% of the votes of the Banks.
        Convening of the meeting shall be made in writing, by telex or by fax,
        setting out the agenda and subject to five (5) Banking Days notice or in
        urgent

                                      54
<PAGE>

        cases with such notice as is appropriate to the urgency of the matter.
        Meetings shall take place in Frankfurt am Main or such other location as
        is mutually agreed. Resolutions may be passed by way of written
        resolution if in the Agent's opinion, given the nature of the matter to
        be determined, a written resolution is appropriate and the Banks do not
        decline a written resolution procedure pursuant to the majority of Banks
        (in accordance with (S) 22.6).

22.5    Each Bank shall have voting rights corresponding to the amounts drawn
        under the commitments made available by it, or if the Facilities have
        not been drawn, corresponding to its respective commitment pursuant to
        (S) 2.1 and Schedule 1. Only those Banks represented in meetings -
                    ----------
        including Banks authorised by written proxy on behalf of other Banks -
        shall be entitled to vote. In respect of written resolutions, account
        shall be taken only of those votes of the Banks whose written response
        to the matter to be voted on has been received before the expiry five
        (5) Banking Days after dispatch of the resolutions by the Agent and
        whether received as an original or by telex or telefax. Abstentions will
        not be counted. Resolutions shall be binding on the Agent as between the
        members of the consortium inter se.

22.6    Resolutions of the Banks relating to amendments to the provisions of
        this (S) 22, changes of the amounts due to the Banks pursuant to the
        provisions of this Agreement or any other Operative Agreement, or any
        amendment to the due date relating to payment obligations of AMD
        Saxonia, the release of the land charge referred to in (S) 8.1.6 or the
        waiver - in whole or in part - of rights under the 65/35 Guaranty
        require the consent of all the Banks. Resolutions relating to the
        termination, in whole or in part of this Agreement or the commencement
        of legal proceedings or administration, composition or insolvency
        proceedings against AMD Saxonia, AMD Holding or AMD Inc. or to changes
        to the Security Documents or the payment obligations of the Sponsors
        pursuant to the terms of the Sponsors' Support Agreement or the release
        and realisation of securities (other than referred to in the first
        sentence of this clause) require a majority of 75 % of the votes of the
        Banks. In addition a majority of 75 % of votes of the Banks is required
        for resolutions which concern:

        (i)    a decision of the Banks pursuant to (S) 21;

        (ii)   the consent of the Banks to any change of the AMD Saxonia Wafer
               Purchase Agreement, the AMD Holding Wafer Purchase Agreement, the
               AMD Saxonia Research, Design and Development Agreement (Schedule
               36), the AMD Holding Research, Design and Development Agreement
               (Schedule 34), the Management Service Agreement (Schedule 37) and
               the License Agreement (Schedule 38);

        (iii)  the consent of the Banks to any change of the Project Budget or
               the Project Schedule or the Drawdown Schedule;

        (iv)   a change in the Technical Advisor, the Insurance Advisor, the
               Auditor, the Banks' Auditor or any other advisor of the Banks,
               and

                                      55
<PAGE>

        (v)    a waiver of any of the conditions to drawing.

        Otherwise, resolutions shall be passed with a majority of the votes of
        the Banks; this applies in particular to resolutions which concern the
        consent of the Banks pursuant to (S) 20 or the approval of the Plans and
        Specifications or any changes thereto.

22.7    The Agent undertakes to consult with the other Banks prior to taking any
        material decisions or steps pursuant to the terms of this Agreement. At
        the request of the Banks, the Agent undertakes to furnish further
        information in respect of particular issues and to obtain such
        information from the AMD Companies pursuant to (S) 16.4 of this
        Agreement or the provisions of the Operative Documents. In urgent cases,
        the Agent may make determinations within the proper exercise of its
        discretion without obtaining a resolution of the Banks. In such case,
        the Agent will immediately inform the other Banks of the measures taken
        by it. To the extent that the relevant measures can be revoked and the
        Banks pass a resolution for such revocation, the Agent shall undertake
        all steps to revoke the measures taken by it.

22.8    Each of the Banks (including the Agent) shall comply with its
        obligations under this Agreement and under the other Operative Documents
        with the customary care and attention pursuant to (S) 347 HGB. The Agent
        shall not assume any additional liability in particular with reference
        to the legality, enforceability or value of the claims of the Banks and
        all the security. Without prejudice to its other obligations pursuant to
        this Agreement, the Agent is not obliged on its own volition to
        undertake inquiries or investigations with respect to breaches of this
        Agreement or as to the existence of any grounds for termination.

22.9    Each of the other Banks agrees to hold harmless and indemnify the Agent
        in respect of all claims or obligations which arise or are asserted
        against the Agent in the implementation of this Agreement save to the
        extent the same arise from the Agent's gross negligence or wilful
        default and to compensate it for expenses incurred and not otherwise
        reimbursed. The amount of the indemnity and/or the obligation to
        compensate costs shall correspond to the commitments of each of the
        Banks in respect of the Facilities. Costs will be paid to the Agent on
        first demand in proportion of the commitments of the other Banks.

22.10   Each Bank confirms that it has independently verified the
        creditworthiness of AMD Saxonia and the Sponsors and all Operative
        Documents and all other documents relating thereto in all respects and
        independently. If any Bank is of the opinion that the documents made
        available to it in connection with the Operative Documents do not comply
        with the contractual requirements such Bank shall be obliged to inform
        the Agent immediately thereof.

22.11   The Agent is entitled, on giving 60 days' notice, to transfer its rights
        and obligations as Agent to the Paying Agent. Resignation by the Agent
        from its role as Agent is possible only subject to 60 days(S) notice. If
        the Banks have not passed a resolution with the required majority
        (according to (S) 22.6) by the seventh Banking Day before the end of
        this period, the Agent shall appoint as its successor a Bank resident in
        Germany. The

                                      56
<PAGE>

        Agent may be dismissed with a majority of at least 75 % of the votes of
        all the Banks. It shall be a condition of the Agent's dismissal that the
        function of the house bank within the meaning of the Subsidy Agreement
        and the function of the Paying Agent is assumed by another bank or
        financial institution. The Banks will consult with AMD Saxonia in
        advance in respect of any change in the Agent.

                                    (S) 23
                          Administration of Security

23.1    The Banks hereby irrevocably authorise the Security Agent, free from the
        restrictions pursuant to (S) 181 BGB, to enter into all agreements
        necessary for the granting of the accessory security. Without prejudice
        to the restrictions governing the relationship of the members of the
        Bank consortium inter se the Security Agent is further authorised to
        enter into all necessary agreements for the granting of security
        pursuant to (S) 8 in their name, to amend and to supplement the same and
        to exercise all rights of control, administration and disposition
        arising under the Security Documents also in relation to the accessory
        security in its own name and free from the restrictions set out in (S)
        181 BGB. As between the Banks (internally), a resolution passed with a
        majority of 75 % of the votes of the Banks shall be required in respect
        of the release of any security, whether in whole or in part save to the
        extent unanimity is required pusuant to (S) 22.6. The Security Agent
        shall be released from all restrictions pursuant to (S) 181 BGB in
        connection with all action taken in respect of the security.

23.2    The Security Agent shall be authorised to delegate administration of the
        security to another financial institution and to undertake all steps in
        relation thereto in the name of the other Banks. The provisions of this
        (S) 23 shall apply in their entirety to any successor of the Security
        Agent. The Security Agent shall be liable to the other Banks only for
        the exercise of due care and attention in the selection of a successor.
        The Security Agent will inform AMD Saxonia and the Banks in writing
        prior to any transfer of its administrative duties and consult with AMD
        Saxonia and the Banks concerning the transfer of such duties. The
        Security Agent can be dismissed by way of resolution passed with a
        majority of 75 % of the votes of the Banks provided that steps are taken
        to ensure that the administration of the security is assumed by another
        bank or financial institution.

23.3    Each Bank shall be entitled at any time to require information from the
        Security Agent relating to the administration of the security. Without
        prejudice thereto, the Security Agent shall in any event keep the other
        Banks informed thereof in accordance with the proper exercise of its
        discretion. In addition, the provisions of the German Civil Code
        relating to the relationship of agents ((S)(S) 662 et seq. BGB) shall
        apply to the relationship between the Security Agent and the other
        Banks.

23.4    The Security Agent shall not be liable or responsible for the validity
        and enforceability of the Security Documents nor shall the Security
        Agent assume any liability as to whether the relevant status of the
        security is sufficient to secure the claims of the Banks under this
        Agreement. In this context, each Bank shall be responsible for examining
        the

                                      57
<PAGE>

        documentation delivered to it and shall inform the Security Agent of any
        concerns it may have so that any such concerns may be taken account of
        by a mutually acceptable arrangement.

23.5    The Security Agent will perform its obligations in relation to the
        administration of the security with the customary standard of care in
        accordance with (S) 347 HGB. The Security Agent shall not bear any
        liability in respect of possible shortfalls which may arise as a result
        of a breach of their obligations by any of the obligors under the
        Security Documents. Each Bank hereby agrees to indemnify and keep
        harmless the Security Agent with respect to all claims which may arise
        or be made against the Security Agent arising from the proper acceptance
        and administration of the security, save to the extent the same arise
        from the Security Agent's gross negligence or wilful default and to
        indemnify the Security Agent in respect of any costs incurred by it and
        not otherwise reimbursed, in each case in proportion in which the
        individual commitments of the relevant Banks bear to the Facilities. The
        Security Agent shall be reimbursed for all costs on first demand in
        accordance with the commitments of the Banks.

23.6    Realisation of the security granted pursuant to the Operative Documents
        shall be effected to the extent such security is non-accessory security
        by the Security Agent in its own name but for the account of the Banks.
        The Security Agent is hereby authorised to realise the accessory
        security in its own name and in the name and on behalf of the other
        Banks.

23.7    The Banks shall agree by way of resolution passed with a majority of 75
        % of their votes on measures to implement any realisation of the
        security. However, in urgent cases the Security Agent may make such
        decisions unilaterally in accordance with the proper exercise of its
        discretion; in such event, the Security Agent will immediately inform
        the other Banks of the steps taken. In the event that unanimity is not
        be achieved, the Banks will determine the relevant steps to be taken for
        realisation by way of majority decision (in accordance with (S) 22.6).
        In all other respects, the conditions for or procedure of realisation of
        security shall be as set out in the individual Security Documents.

23.8    Proceeds from the realisation of security shall be distributed in the
        following order of priority:

        (i)    in satisfaction of the costs and other expenses of the Agent,
               including any taxes incurred by the Agent in the administration
               and realisation of the security pursuant to its obligations
               hereunder;

        (ii)   in payment of accrued interest; and

        (iii)  in payment of the claims of the Banks under the Facilities in
               accordance with this Agreement, and in satisfaction of any other
               claims of the Banks under or in connection with the Operative
               Documents pro rata in accordance with the outstanding advances of
               the Banks.
<PAGE>

        The Guarantors shall, without prejudice to the first right of
        satisfaction in favour of the Banks as security for their shortfall
        risk, be subrogated by operation of law to the relevant portion of the
        guaranteed claims which is secured pro rata by the security granted in
        respect thereof. To the extent the security does not pass to the
        Guarantors by operation of law, the same shall be transferred pro rata
        to the Guarantors following payment by them.

        Any remaining amount not otherwise required out of the proceeds of
        realisation of the security shall be paid to AMD Saxonia.

        Subject to the consent of the Guarantors, the Banks shall be entitled to
        amend the above order of distribution at any time.

23.9    AMD Saxonia has agreed to pay to the Security Agent a fee in respect of
        the administration of the security by it in an amount and on terms as to
        payment set out in a letter of even date between AMD Saxonia and the
        Security Agent.

                                    (S) 24
                                 Paying Agent

24.1    The Paying Agent is hereby appointed with the duties of the Paying Agent
        in respect of all rights and obligations of the Banks under this
        Agreement and the other Operative Documents subject to the following
        terms and conditions. The Banks hereby irrevocably appoint the Paying
        Agent to do all acts and things in connection with the making of
        payments under this Agreement and the other Operative Documents and to
        give all necessary statements and declarations in their name and to
        enforce and undertake all things on their behalf to the extent the same
        have not been delegated to the Agent. The Paying Agent is exempted from
        the restrictions of (S) 181 BGB. The Paying Agent is authorised to
        delegate authority and to revoke the same free from the restrictions of
        (S) 181 BGB.

24.2    The Paying Agent will exercise the standard of care customary in
        commercial relations in accordance with (S) 347 HGB in the performance
        of its obligations under this Agreement and the other Operative
        Documents.

24.3    The Banks hereby undertake to make available the relevant amounts of
        advances to be made available by them as requested by the Paying Agent
        in accordance with (S) 4 by 11.00 a.m. (London time) at the latest on
        the drawdown date and make the same available to the account notified to
        them by the Paying Agent. The Paying Agent will make available to AMD
        Saxonia the amounts so provided with value for the same day.

24.4    The Paying Agent will pay to the Banks all interest, payments of
        principal and other payments due to the Banks pursuant to this Agreement
        on the relevant due date and to the accounts notified to the Paying
        Agent by individual Banks. To the extent that amounts are paid to the
        Banks without the Paying Agent having received a

                                      59
<PAGE>

        corresponding payment in full from AMD Saxonia on the same day, the
        Paying Agent may debit the relevant Bank accordingly.

24.5    AMD Saxonia shall pay to the Paying Agent in respect of the performance
        of its duties under this Agreement a fee, the amount and the terms as to
        payment of which are set out in a letter of even date from the Paying
        Agent to AMD Saxonia.

24.6    The Banks hereby undertake to hold harmless and to indemnify the Paying
        Agent against all claims which may arise or be made against the Paying
        Agent in connection with the performance of its duties under this
        Agreement, save to the extent the same arise from the Paying Agent's
        gross negligence or wilful default and to reimburse all expenses borne
        by the Paying Agent and not otherwise reimbursed. Each Bank shall
        indemnify the Paying Agent and reimburse costs in an amount equal to the
        commitment of the relevant Bank under the Facilities. All costs shall be
        payable to the Paying Agent on first demand and in accordance with the
        commitments of the Banks.

24.7    The Paying Agent may resign on 60 days' notice. If no resolution of the
        Banks has been passed by the seventh Banking Day before the expiry of
        such notice period in respect of a successor to the Paying Agent with
        the required majority (in accordance with (S) 22.6) the Paying Agent
        shall be entitled to appoint as its successor a credit institute
        domiciled in Germany or Luxembourg. The Paying Agent can be dismissed by
        way of resolution passed with a majority of 75 % of the votes of the
        Banks provided that steps are taken to ensure that the administration of
        the security is assumed by another bank or financial institution.

24.8    The department of the Paying Agent shall, with regard to the assumption
        of the paying agent's duties for the Banks, be regarded as a entity
        separate from the Paying Agent's other departments.

                                    (S) 25
                                     Costs

25.1    AMD Saxonia shall bear all expenses, fees and other external costs
        incurred by the Agent, the Paying Agent and the Security Agent in
        connection with the preparation, amendment and implementation of the
        Operative Documents and the granting of the security and/or perfection
        including in particular the reasonable costs of the Technical Advisor,
        the Insurance Advisor and the Banks' Auditor and the reasonable fees,
        costs and expenses of auditors and lawyers instructed by the Agent in
        connection with the verification, valuation, administration and
        realisation of the security or otherwise in connection with the
        Operative Documents. AMD Saxonia's obligations to reimburse costs shall
        also remain unaffected in those cases in which the Banks have paid the
        costs of the parties referred to above pursuant to such Banks'
        obligations to indemnify or otherwise reimburse such costs.

25.2    In the event of any payment received by a Bank either as a result of set
        off by such Bank or by AMD Saxonia or as a result of any other
        performance by AMD Saxonia as a result of which such Bank's claims are
        paid in excess of the proportion due to it in respect of

                                      60
<PAGE>

        its commitments in (S) 2 and Schedule 1, such Bank shall be obliged to
                                     ----------
        make a payment to the Paying Agent for the account of the other Banks
        such as to place such other Banks in the position they would have been
        in had they received payment in proportion to their Commitments pursuant
        to (S) 2 and Schedule 1. To the extent any Bank pays such excess amount
                     ----------
        to the other Banks, such Bank shall have a claim against AMD Saxonia in
        an amount equal to the excess. This provision shall apply to any payment
        received from or on account of AMD Saxonia. This provision does not,
        however, apply in favour of a Bank which declined to participate in
        proceedings initiated by the other Banks which have led to successful
        claims being made under the Operative Documents. If any Bank is obliged
        to repay to AMD Saxonia any amount received from any of the other Banks,
        the other Banks shall be obliged to repay the amounts received by them
        to the Bank obliged to repay.

                                    (S) 26
                        Assignment; Sub-participations

26.1    The Banks are not entitled prior to 1 July 2001 to assign, whether in
        whole or in part, their rights under this Agreement. Assignments and
        sub-participations to affiliated companies within the meaning of (S) 15
        of the Stock Corporation Act are permitted at any time - to the extent
        not made by a Bank in Germany to an enterprise outside Germany - as well
        as assignments to third parties following termination of this Agreement.
        After 1 July 2001, the Banks are entitled to assign their rights and
        claims under this Agreement with the consent of AMD Saxonia and the
        Agent, which consent may be withheld only for good cause. Each Bank is
        entitled moreover at any time to grant sub-participations to other banks
        or credit institutions in an amount up to 50 % of its respective
        commitment on and subject to the following terms and conditions:

        (i)   sub-participations require the consent of AMD Saxonia and the
              Agent. Consent may be withheld only for good cause;

        (ii)  the sub-participant shall not be granted rights as against AMD
              Saxonia or as against the other Banks and no contractual
              relationship between the sub-participant, AMD Saxonia or the other
              Banks shall be permitted to exist;

        (iii) implementation of this Agreement shall be effected exclusively as
              between AMD Saxonia, the Agent and the Paying Agent and/or the
              relevant Bank.

                                    (S) 27
                                 Miscellaneous

27.1    The failure by any of the Banks to exercise any of their rights
        hereunder, (whether in whole or in part), in particular any failure to
        exercise their right to terminate this Agreement, shall not constitute a
        waiver by the Banks of such right nor shall they be estopped from doing
        so. All rights pursuant to this Agreement shall have effect

                                      61
<PAGE>

        individually and without prejudice to any other rights at law or under
        contract in favour the Banks.

27.2    All amendments and supplements to this Agreement and the other Operative
        Documents must be in writing unless they are required by law to be
        notarially certified. This requirement shall apply also to any
        amendments, release or waiver of the requirement for such written form
        as well as all consents of the Banks contemplated under this Agreement.

27.3    The provisions of (S) 22 to 24 and all rights and duties relating
        thereto may be amended without the consent of AMD Saxonia this shall not
        apply to the provisions set out in the last sentence of each of (S)
        22.11 and (S) 23.2.

27.4    The invalidity or unenforceability of one or more provisions of this
        Agreement shall not affect the remaining provisions of this Agreement.
        The invalid or unenforceable provision shall be substituted by a
        provision which approximates most closely to the economic purpose of the
        void or unenforceable provision.

27.5    AMD Saxonia shall not be entitled to assign its rights under this
        Agreement to any third party or to dispose of such rights in any other
        way without the prior written consent of the Banks.

27.6    Each of the Banks shall inform the Agent with a copy to the Paying Agent
        at least five (5) Banking Days prior to any change in its Lending
        Office.

27.7    All correspondence or notifications under in connection with this
        Agreement shall be served personally at the following addresses (or such
        other address notified in writing by the recipient to the other party)
        or by registered letter, courier or fax:

        to the Agent and Paying Agent:

        Dresdner Bank Luxembourg S.A.
        26, rue due Marche-aux-Herbes
        L-2097 Luxembourg
        Attention: Direktion
        Facsimile No.: (352) 4760 824

        to the Banks:

        Dresdner Bank AG
        Ostra Allee 9
        01067 Dresden
        Attention: Betreuung Unternehmenskunden
        Facsimile No.: (49) 351 489 1300

                                      62

<PAGE>

        Kreditanstalt fur Wiederaufbau
        Palmengartenstrasse 5 - 9
        60325 Frankfurt am Main
        Attention: Abteilung K II a
        Facsimile No.: (49) 69 74 31 2944

        DG Bank Deutsche Genossenschaftsbank
        Am Platz der Republik
        60325 Frankfurt am Main
        Attention: Herrn Lothar Ferber-Hammeke/Frau Ute Suffrian
        Facsimile No.: (49) 69 7447 6098

        Landesbank Baden-Wurttemberg
        Konigstrasse 3-5
        70144 Stuttgart
        Attention: Herrn Jurgen Prockl (Corporate Finance)

        Sachsen LB Landesbank Sachsen
        Girozentrale
        Humboldtstr. 25
        04105 Leipzig
        Attention: Herrn Dr. Carlhans Uhle
        Facsimile No.: (49) 341 97 93 139

        Bayerische Landesbank
        Girozentrale
        Briennerstrasse 20
        80333 Munchen
        Attention: Frau Birgit Stuper
        Facsimile No.: (49) 89 2171 3334

        HypoVereinsbank Luxembourg Societe Anonyme
        4, rue Alphonse Weicker
        L-2099 Luxembourg
        Attention: Herrn Erwin Moos
        Facsimile No.: (352) 4272 4510

        BHF-Bank Aktiengesellschaft
        Niederlassung Leipzig
        Kathe-Kollwitz-Str. 52
        04109 Leipzig
        Attention: Herrn Klaus Berthold/Frau Peggy Kuhnast
        Facsimile No.: (49) 341 4654 150

                                      63

<PAGE>

        Commerzbank AG
        Filiale Dresden
        Devrient Strasse 3
        01067 Dresden
        Attention: Herrn Christoph Hense
        Facsimile No.: (49) 351 484 9200

        Deutsche Postbank AG
        (formerly: DSL Bank Deutsche Siedlungs- und Landesrentenbank)
        Friedrich-Ebert-Allee 114-126
        53113 Bonn
        Attention: Herrn Oliver Radermacher

        Hamburgische Landesbank
        Girozentrale
        Gerhard-Hauptmann-Platz 50
        20095 Hamburg
        Attention: Herrn Gasser/Herrn Rebber
        Facsimile No.: (49) 40 3333 3037

        IKB Deutsche Industriebank AG
        Wilhelm-Botzkes-Strasse 1
        40474 Dusseldorf
        Attention:   Herrn Jorg Hillmann, Telefax: 0211-8221-2256
                     Frau Katharina van der Sant, Telefax: 0211-8221-2020

        Landesbank Rheinland-Pfalz
        Girozentrale
        Grosse Bleiche 54 - 56
        55098 Mainz
        Attention: Herrn Ulrich Voepel/Herrn Lothar Ayasse
        Facsimile No.: (49) 6131 13 2599

        ABN AMRO Bank (Deutschland) AG
        Niederlassung Berlin
        Unter den Linden 42
        10105 Berlin
        Attention: Herr Axel Huck
        Facsimile No.: (49) 30 20 24 92 95

        Creditanstalt AG
        Wasagasse 2
        A-1090 Wien
        Attention: Herrn Dr. Martin Frank
        Facsimile No.: (43) 1 310 05 54

                                      64
<PAGE>

        The Sumitomo Bank, Limited, Dusseldorf Branch
        Immermannstrasse 14 - 16
        40210 Dusseldorf
        Attention: Herrn Wienke
        Facsimile No.: (49) 211 3619 277

        Bank Austria Creditanstalt Deutschland AG
        Brienner Strasse 9
        80333 Munchen
        Attention: Herrn Huber

        to AMD Saxonia:

        AMD Saxony Manufacturing GmbH
        Wilschdorfer Landstrasse 101
        01109 Dresden
        Attention: Geschaftsfuhrer
        Facsimile No: (49) 351 277 91300

        to the Security Agent

        Dresdner Bank AG
        Ostra Allee 9
        01067 Dresden
        z. Hd.: Betreuung Unternehmenskunden
        Telefax: (49) 351 489 1300

27.8    The German language counterpart of this Agreement is binding.

27.9    To the extent this Agreement does not provide to the contrary this
        Agreement shall be governed by the General Terms and Conditions of the
        Agent set out in Schedule 62, save that all references to a "Bank" shall
                         -----------
        be deemed to be references to the "Banks" within the meaning of this
        Agreement and all references to a "customer" shall be deemed to be
        references to AMD Saxonia.

27.10   All press statements or other announcements relating to this Agreement
        shall require the prior written consent of the Agent which consent shall
        not be unreasonably withheld. The withholding of consent by the Agent
        shall be deemed to be unreasonable to the extent that the disclosure of
        information relating to this Agreement is required by any law,
        regulation or official requirement or as required by any recognised
        securities supervisory authority or securities exchange.

                                    (S) 28
                                 Governing Law

This Agreement shall be governed by the law of the Federal Republic of Germany.

                                      65
<PAGE>

                                    (S) 29
                                 Jurisdiction

The courts of Frankfurt am Main shall have exclusive jurisdiction in respect of
the resolution of all disputes under or in connection with this Agreement.

Frankfurt am Main 11 March 1997

AMD SAXONY MANUFACTURING GMBH

__________________________________
Managing Directors   (Geschaftsfuhrer)

DRESDNER BANK AG
(as Security Agent and Bank)

_____________________________________

Other Banks:

KREDITANSTALT FUR WIEDERAUFBAU

_____________________________________

_____________________________________

DG BANK DEUTSCHE GENOSSENSCHAFTSBANK

____________________________________

____________________________________

LANDESBANK BADEN-WURTTEMBERG

_____________________________________

_____________________________________

                                      66
<PAGE>

SACHSEN LB LANDESBANK SACHSEN GIROZENTRALE

____________________________________

____________________________________

BAYERISCHE LANDESBANK GIROZENTRALE

____________________________________

____________________________________

HYPOVEREINSBANK LUXEMBOURG SOCIETE ANONYME

____________________________________

____________________________________

BHF-BANK AKTIENGESELLSCHAFT

____________________________________

____________________________________

COMMERZBANK AG, Dresden Branch

_____________________________________

_____________________________________

DEUTSCHE POSTBANK AG
(formerly: DSL BANK DEUTSCHE SIEDLUNGS- UND LANDESRENTENBANK)

_____________________________________

_____________________________________

HAMBURGISCHE LANDESBANK - GIROZENTRALE -

_____________________________________

______________________________________

                                      67
<PAGE>

IKB DEUTSCHE INDUSTRIEBANK AG

_____________________________________

_____________________________________

LANDESBANK RHEINLAND-PFALZ - GIROZENTRALE -

_____________________________________

_____________________________________

ABN AMRO BANK (DEUTSCHLAND) AG, Frankfurt

____________________________________

____________________________________

CREDITANSTALT AG

____________________________________

____________________________________

THE SUMITOMO BANK, LIMITED, Dusseldorf Branch

____________________________________

____________________________________

BANK AUSTRIA CREDITANSTALT DEUTSCHLAND AG

____________________________________

____________________________________

DRESDNER BANK LUXEMBOURG S.A.
(as Agent and Paying Agent)

____________________________________

                                      68
<PAGE>

                                  Schedule 1

                              Banks' Commitments

I.   THE BANKS AND THEIR LENDING OFFICES       COMMITMENTS

                                                    DM

DRESDNER BANK AG,                                          190,909,090.91
Frankfurt am Main

KREDITANSTALT FUR WIEDERAUFBAU,                            186,363,636.36
Frankfurt am Main

LANDESBANK BADEN-WURTTEMBERG,                              181,818,181.82
Stuttgart

SACHSEN LB LANDESBANK SACHSEN GIROZENTRALE,                100,000,000.00
Leipzig

BAYERISCHE LANDESBANK GIROZENTRALE,                         90,909,090.91
Munchen

HYPOVEREINSBANK LUXEMBOURG SOCIETE ANONYME,                 90,909,090.91
Luxembourg

DG BANK DEUTSCHE GENOSSENSCHAFTSBANK,                       86,363,636.36
Frankfurt am Main

THE SUMITOMO BANK, LIMITED, Niederlassung Dusseldorf,       72,727,272.73
Dusseldorf

BHF-BANK AKTIENGESELLSCHAFT,                                68,181,818.18
Leipzig

COMMERZBANK AG Filiale Dresden,                             68,181,818.18
Dresden

DEUTSCHE POSTBANK AG,                                       68,181,818.18
Bonn

HAMBURGISCHE LANDESBANK - GIROZENTRALE -,                   68,181,818.18
Hamburg

                                      69
<PAGE>

IKB DEUTSCHE INDUSTRIEBANK AG,                                 68,181,818.18
Dusseldorf

LANDESBANK RHEINLAND-PFALZ - GIROZENTRALE -,                   68,181,818.18
Mainz

ABN AMRO BANK (DEUTSCHLAND) AG,                                45,454,545.46
Berlin

CREDITANSTALT AG,                                              31,818,181.82
Wien

BANK AUSTRIA CREDITANSTALT DEUTSCHLAND AG,                     13,636,363.64
Munchen
                                                            ----------------
                                                            1,500,000,000.00

                                      70
<PAGE>

                                   Schedule 2

                              (Drawdown Schedule)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
      Project Phase            Period         Facility A per Project      Cumulative Facility A
                                                   Phase (MDM)                    (MDM)
-------------------------------------------------------------------------------------------------
<S>                            <C>            <C>                         <C>
-------------------------------------------------------------------------------------------------
    Planning/ Design            ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
          Shell                 ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
       Clean Room               ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
     First Equipment            ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
Qualification/First Silicon     ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
   Technical Completion         ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
                                ***                   ***                          ***
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
</TABLE>

----------------
*** CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.

                                      71
<PAGE>

                                  Schedule 17
                              Financial Covenants

     The financial covenants for AMD Saxony Manufacturing GmbH ("AMD Saxonia")
     will be determined on the basis of the quarterly financial statements of
     AMD Saxonia and other information provided by the management pursuant to
     (S) 16.2.1 and the audited annual financial statements of AMD Saxonia and
     the Auditor's confirmation pursuant to (S) 16.2.2 of this Agreement.

1.   Definitions

     Rolling Quarter Basis:

     refers to the calculation of a ratio or of an amount at the end of a Fiscal
     Quarter in each case covering the Fiscal Quarter in question and the three
     preceding Fiscal Quarters

     Tangible Net Worth:

     Equity

     plus  45 % of special items with equity portion ((S)(S) 273, in conjunction
           with (S) 247, 3 Commercial Code)
     plus  Subordinated Shareholder Loans (less capitalised interest)
     less  capitalised start-up and business expansion expenses ((S) 269
           Commercial Code)
     less  payments on account for fixed and Current Assets ((S) 266 2A II No.
           3, 266 2 B I No.4 Commercial Code)
     less  accruals for deferred tax released from reserves ((S) 274 2 S 1
           Commercial Code)
     less  intangible assets ((S) 266 2 A I Commercial Code)

           =    Tangible Net Worth

     Equity:

     subscribed share capital ((S) 266, 3A I Commercial Code) less amounts not
     paid-up ((S) 272, 1S 3 Commercial Code)

     plus       additional capital reserves ((S) 266, 3A II Commercial Code)
     plus       revenue reserves ((S) 266, 3A, III Commercial Code)
     plus/less  retained profit/accumulated losses ((S) 266, 3A, IV Commercial
                Code)
     plus/less     net income/net loss for the year ((S) 266, 3A, V Commercial
                   Code)
                =  Equity

                                      72
<PAGE>

     Modified EBIT:

     net income for the year ((S) 275, 2, No. 20 Commercial Code) or net income
     during the period under consideration, as the case may be

     plus  taxes on income ((S) 275, 2, No. 18 Commercial Code)
     plus  other taxes ((S)275, 2, No. 19 Commercial Code)
     plus  interest and other expenses ((S) 275, 2, No. 13 Commercial Code)
           (including interest on Revolving Loans made to AMD Saxonia by AMD
           Inc. pursuant to the Sponsors' Support Agreement and the Revolving
           Loan Facility Agreement, Interest Expense on Bank Debt and
           capitalised interest to the extent capitalised on Subordinated
           Shareholder Loans)

           =  Modified EBIT

     Subordinated Shareholder Loans:

     all shareholder loans made to AMD Saxonia by AMD Holding and AMD Inc.
     pursuant to the Sponsors' Support Agreement and the Sponsors' Loan
     Agreement in the form set out in Schedule 29, as amended, but, for the
     purpose of this Schedule 17 only, excluding revolving loans made to AMD
     Saxonia by AMD Inc. pursuant to the Sponsors' Support Agreement and the
     Revolving Loan Facility Agreement.

     Fiscal Quarter:

     each quarterly fiscal accounting period of AMD Saxonia ending on or about
     the last day of March, June, September or the last Sunday in December.

     Current Assets:

     Inventory ((S) 266, 2 B I Commercial Code), accounts receivable and other
     assets ((S) 266, 2 B II Commercial Code), other marketable securities
     included in the current assets ((S) 266, 2 B III No. 3 Commercial Code),
     cheques, balances at the Bundesbank and Post Office, and cash at bank ((S)
     266 2 B IV Commercial Code)

     Interest Expense on Bank Debt:

     all interest payments (cash or capitalised), commisions, fees, discounts
     and other financial charges incurred in respect of indebtedness for
     borrowings from banks.

                                      73
<PAGE>

     Interest Cover Ratio:

     the ratio of Modified EBIT to Interest Expense on Bank Debt, plus interest
     expense under the Revolving Loan Facility Agreement to the extent paid in
     cash or set off against other claims.

2.   Financial Covenants

2.1  Minimum Tangible Net Worth

     The Tangible Net Worth shall not at the end of any fiscal year be less than
     the amounts set out below:

     End of a Fiscal Year                   Amount in DM millions

     27 December 1998                                ***
     26 December 1999                                ***
     31 December 2000                                ***
     30 December 2001                                ***
     29 December 2002                                ***
     28 December 2003                                ***
     26 December 2004                                ***
     25 December 2005                                ***

2.2  Maximum Capital Expenditure:

     [intentionally left blank]

2.3  Minimum Interest Cover Ratio

     The Interest Cover Ratio calculated on a Rolling Quarter Basis shall not at
     the end of any Fiscal Quarter be less than the amount set out below:

     End of the Fiscal Quarter              Interest Cover Ratio

     30 December 2001                               1,70
     31 March 2002                                  1,70
     30 June 2002                                   1,90
     29 September 2002                              2,00
     29 December 2002                               2,20
     30 March 2003                                  2,40
     29 June 2003                                   2,60
     28 September 2003                              2,80

----------------
*** CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.

                                      74
<PAGE>

     28 December 2003                               3,00
     28 March 2004                                  3,00
     27 June 2004                                   3,00
     26 September 2004                              3,00
     26 December 2004                               3,00
     27 March 2005                                  3,00
     26 June 2005                                   3,00
     25 September 2005                              3,00
     25 December 2005                               3,00

2.4  Fixed Charge Cover Ratio:

     [left intentionally blank]

2.5  Maximum Inventory Turnover:

     [left intentionally blank]

3.   Excess Cash:

     [left intentionally blank]

4    Minimum Liquidity Covenant:

     At all times from 1 July 2001, AMD Saxonia shall maintain cash in the
     Project Accounts, including Cash Equivalent Investments pursuant to
     Schedule 23, in an amount ***.

----------------
*** CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.

                                      75

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