Document:

Agreement between dated November 20, 2003

 Exhibit 10.47 
  
 Redacted Version 
 Confidential Treatment Marked 
  
 AGREEMENT 
  
 between 
  
 SI INVESTMENT LIMITED LIABILITY COMPANY & CO KG 
  
 and 
  
 M + W ZANDER FACILITY ENGINEERING GMBH 
  
 Pertaining to the 
 Design and Construction of Fab X, Dresden, Germany 
  
 Confidential
treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of the exhibit has been filed separately with the
Securities and Exchange Commission. 

 Table of Contents 
  

					
	 PREAMBLE
	  	5
		
	 RECITALS
	  	5
		
	 PROVISIONS
	  	8
			
	   1.
	  	  Parts of this Agreement	  	8
			
	   2.
	  	  Scope of Work	  	9
	 2.1. Scope of Work
	  	9
	 2.2. Document Flow
	  	11
	 2.3. Conduct of Executing Works
	  	12
	 2.4. Materials
	  	12
	 2.5. Company’s inspections
	  	13
	 2.6. Obligations
	  	13
	 2.6.1.  Staturory and like Requirements
	  	13
	 2.6.2.  Progress Updates
	  	14
	 2.6.3.  Construction Diary
	  	14
	 2.6.4.  Calibrating, Adjusting, Testing
	  	14
	 2.6.5.  Permits
	  	14
	 2.6.6.  Construction Management
	  	15
	 2.6.7.  Planning, Engineering, Designing, Architectural and like Works
	  	15
	 2.6.8.  Operation and Maintenance Data
	  	16
	 2.6.9.  Mechanical, Electrical, Processing Components
	  	16
	 2.6.10. Letter of Intent
	  	16
	 2.6.11. Health and Savety Plan/Site Rules
	  	16
	 2.6.12. Environmental, Health, Safety and Security Requirements
	  	16
	 2.6.13. Obligation to observe Rules
	  	17
	 2.6.14. Acceptances by Authorities
	  	17
	 2.6.15. Health and Savety Coordinator
	  	17
	 2.6.16. Clean Site
	  	17
	 2.6.17. Construction Supervisor
	  	18
	 2.6.18. Clean Roads
	  	18
	 2.6.19. Security
	  	18
			
	   3.
	  	  Remuneration	  	18
	 3.1. Lump Sum Price
	  	18

  
  

					
	 3.2. Payments on Account
	  	19
	 3.3. German Income Tax Act
	  	19
	 3.4. Presupposition for Payments becoming due
	  	19
			
	4.	  	Changes	  	20
	         4.1. Adjustment can be calculated based on lump sum price
calculation
	  	21
	         4.1.1. Works to be executed in addition
	  	21
	         4.1.2. Works not to be executed
	  	22
	         4.1.3. Changes leading to Reductions and Additions
	  	22
	 4.2. Adjustment can not be based on lump sum price calculation
	  	22
	 4.3. Payments
	  	23
			
	5.	  	Subcontracting/Personnel	  	23
	 5.1. Subcontracting
	  	23
	 5.2. Personnel
	  	24
			
	6.	  	Formal Acceptance	  	26
	 6.1. Formal Acceptance
	  	26
	 6.2. No prior Acceptance
	  	26
			
	7.	  	Milestones; Contractual Penalty	  	27
	 7.1. Milestones (Vertragsfristen)
	  	27
	 7.2. Contractual Penalty (Vertragsstrafe)
	  	28
	 7.3. Further Milestones
	  	30
	 7.4. Schedule
	  	31
	 7.5. Force Majeure
	  	31
			
	8.	  	Distribution of Risk	  	32
			
	9.	  	Defects Liability	  	32
	 9.1 Defects Liability
	  	32
	 9.2. Warranty
	  	33
	 9.3. Warranties
	  	33
			
	10.	  	Securities	  	35
	 10.1. Retention
	  	35
	 10.2. Performance Guarantee (Vertragserfüllungsbürgschaft)
	  	35
	 10.3. Defects Liability Guarantee (Gewährleistungsbürgschaft)
	  	36
	 10.4. Assignment for Security Purposes
	  	36
	 10.5 Security to be provided by Subcontractors
	  	37
			
	11.	  	Copyrights (Urheberrechte)	  	37
	 11.1. Confirmation
	  	37
	 11.2. Rights to Ideas and other intellectual Property
	  	37
	 11.3. Payment included in Lump Sum
	  	40
			
	12.	  	Lender	  	40
			
	13.	  	Termination	  	40

  
  

					
	 13.1. Termination Rights provided for in VOB/B
	  	40
	 13.2. Extraordinary Termination Right
	  	40
			
	14.	  	Liability	  	41
	 14.1. Contractor generally liable
	  	41
	 14.2. Liability for Damages
	  	41
	 14.3. Limitations on Liability
	  	42
	 14.4. Insurance
	  	44
	 14.5. Nature of Company’s Approval
	  	44
	 14.6. Contractor’s Responsibility for Construction Means
	  	45
			
	15.	  	Identification	  	45
			
	16.	  	Liens (Rechte Dritter )	  	45
			
	17.	  	Confidentiality	  	45
			
	18.	  	Section 648 BGB not applicable	  	47
			
	19.	  	Law and Jurisdiction Miscellaneous	  	47
			
	20.	  	Condition Subsequent	  	48

 PREAMBLE 
  
 This Design/Build Agreement (hereinafter referred to as “Agreement”) is made and entered into this 20th of November, 2003 by and between SI Investment Limited Liability Company & Co KG, Louis-Braille-Straße 5, 01099
Dresden, Germany (hereinafter referred to as “Company”) and M+W Zander Facility Engineering GmbH, Lotterbergstraße 30, 70499 Stuttgart, Germany (hereinafter referred to as “Contractor”). Company and
Contractor, are collectively referred to as “Parties” or each separately as “Party”. 
  
 RECITALS 
  
 A. Company will purchase certain land located in Dresden, Wilschdorfer Straße marked in the plan attached as Exhibit 1 Site
Plan in blue (the “Site”). 
  
 B.
Contractor, or a joint venture of which Contractor forms part respectively, entered into a Co-Operation Agreement (Kooperationsvertrag vom 20. November 2003) under the conditions of which Contractor shall enter into a
partnership agreement. Therefore, Contractor, or a joint venture of which Contractor forms part respectively, is not only Party to this Agreement but also limited partner (Gesellschafter/Kommanditist) of
Company. 
  
 C. Company desires to obtain a new
state-of-the-art microprocessor wafer fabrication facility for designing and producing integrated circuits (300 mm microprocessor wafers (65 nm technology, intended to be later on upgraded to up to 45 or 32 nm (to the degree defined in this
Agreement) and associated support facilities to be located on the Site. The result (Werkerfolg) of the works and services to be executed or rendered under this Agreement is referred to as “Fab X” (also
referred to as “S.I.L.K.”). Company commissions Contractor to plan, design, construct, erect, install, equip, start up, calibrate, adjust and turn over Fab X and execute all and any works, render all and any
services and make all and any deliveries (hereinafter collectively referred to as “Works”) which are necessary or expedient for completing Fab X in a turn-key and functional manner and in a ready for unrestricted hook up
condition, including, but not limited to, all and anything which is technically or functionally necessary or expedient therefore, including, but not limited, to all and any items which could have an impact on productivity, yield or ease of use but
excluding any works and services explicitly excluded in this Agreement. 
  

 5 

 D. Contractor desires to plan, design, construct, erect, install, equip, start up, certify,
calibrate, adjust and turn over Fab X in the manner provided for in Recital C and to execute all Works necessary or expedient therefore and to execute the Works and to complete Fab X in a way meeting the standards
provided for in this Agreement. As consideration in full for executing the Works and completing Fab X in accordance with this Agreement, Company will pay to Contractor the lump sum provided for in this
Agreement 
  
 E. On the site adjacent to the
Site, Contractor (or Contractor’s legal predecessor Meissner + Wurst GmbH + Co. KG) completed a wafer fabrication support facility as well as later extensions and improvements thereto (this fabrication, the support
facilities, the extensions and improvements is hereinafter referred to as “Fab 30”) under a number of agreements, including a Design/Build Agreement with a third party (AMD Saxony Manufacturing GmbH, the legal predecessor of AMD
Saxony Limited Liability Company & Co. KG) of November 15, 1996 as amended, a hook-up agreement of February 28, 1998 as amended and under later agreements especially under a letter of intent of June 7, 2000, an agreement of June 22, 2001 and a
contract of November 28,/December 5, 2002). 
  
 From being
involved in the works, services and deliveries under the aforementioned agreements, contracts and letters of intent and especially the details related to and underlying the execution, rendering or making the works, services and deliveries,
Contractor is aware of the details of the completion of a state-of-the-art microprocessor wafer fabrication facility referred to in Recital C. Therefore, and because of surveys and examinations carried out by, or on behalf of,
Contractor, Contractor is aware of the standards and requirements of such project, especially about all specifics and requirements of clean room conditions and is aware of the Site Condition, including the subsurface,
environmental and hydrological condition. Moreover, Contractor is aware of the impact executing the Works under this Agreement could have on the operation of, and the production in, the adjacent Fab 30. Contractor
acknowledges that Contractor is aware that any detrimental impact the execution of the Works may have on Fab 30 and the operation of, and production in, Fab 30 could lead to losses, damages, claims etc, for which
Contractor is liable to the extent provided for in this Agreement. Contractor, therefore, knows and acknowledges that all and any Works to be executed under this Agreement shall – unless otherwise agreed upon
by the Parties - be executed in a manner not affecting, influencing, disturbing or having any other detrimental impact, including, but not limited to, detrimental impact by vibrations, on the operation of Fab 30 or the production
within Fab 30, including, but not limited to, the production of semiconductor processors. Contractor has examined and reviewed, and is aware of, all and any conditions relating to the Site, including, but not limited to, ground
conditions, subsurface conditions and hydrological conditions and Contractor is aware of all and any requirements and 

  

 6 

 
conditions of a proper operation and production (including, but not limited to, the production of semiconductor processors) within Fab 30 as well as
within Fab X (all these conditions are hereinafter referred to as „Site Conditions”). Contractor is liable for executing the Works in the aforementioned manner and meeting the requirements of the Site
Conditions. 
  
 F. Company desires and
Contractor acknowledges and is aware that it is essential that Fab X is completed within the milestones provided for in this Agreement and that meeting the given time frame is a presupposition (Voraussetzung) for
Company being able to operate Fab X and produce in Fab X, otherwise an economical and efficient operation and production will be threatened or not be possible. Therefore, Contractor undertakes to complete the Works in the
given time frame. Moreover, Parties are aware that the environmental, health, safety and security requirements provided for in this agreement to be met on Site, when executing the works and by Fab X are far above average
standard and Contractor undertakes to meet such requirements. 
  
 Moreover, both Parties explicitly acknowledge and confirm that they are aware that for being granted the allowances Company applied for under the code of allowances (Investitionszulagengesetz) based on which the
financial concept underlying this project was developed it is of utmost importance to reach the respective degree of completion described under no. 7.1.c) until December 31, 2004. 
  
 G. Company’s ability to carry out the project underlying this Agreement depends on the fact that the
financial presuppositions the project is based on are met or maintained. Therefore, Parties agree that Company has an extraordinary termination right under circumstances desribed in this Agreement the impact of which on the
remuneration is stipulated in this Agreement. 
  
 H.
Contractor confirms that Contractor will at all and any time keep the project underlying this Agreement equipped with all and any resources, know-how, work force and all and any means and measures necessary to properly execute the
Works under this Agreement and to complete Fab X in time and that Contractor will not reduce its activities, work force or personnel and executing other projects or contracts will not detrimentally impact the
project.. 
  

 7 

 PROVISIONS 
  

	1.	Parts of this Agreement 

  
 In the event of discrepancies, the following parts of this Agreement shall be applicable in the order set forth hereinafter: 
  

	 	a)        	this document (“Document”) 

  

	 	b)        	the Exhibits to this Document 

  

	 	aa)	Exhibit 1: Site Plan 

  

	 	bb)	Exhibit 2: ITRS Roadmap 

  

	 	cc)	Exhibit 3: Design 

  

	 	dd)	Exhibit 4: List of Interfaces 

  

	 	ee)	Exhibit 5: Design Documents 

  

	 	ff)	Exhibit 6: Company’s Inspections 

  

	 	gg)	Exhibit 7: Payment Schedule 

  

	 	hh)	Exhibit 8: Operation and Maintenance Data 

  

	 	ii)	Exhibit 9: EHS Program 

  

	 	jj)	Exhibit 10: Clean Protocol 

  

	 	kk)	Exhibit 11: Lump Sum Price Calculation 

  

	 	ll)	Exhibit 12: List of Subcontractors consented to 

  

	 	mm)	Exhibit 13: Workforce Regulations 

  

	 	nn)	Exhibit 14: Milestone Definitions 

  

	 	oo)	Exhibit 15: Time Schedule 

  

 8 

	 	pp)	Exhibit 16: Performance Guarantee 

  

	 	qq)	Exhibit 17: Defects Liability Guarantee 

  

	 	c)        	the rules of sound engineering practice (anerkannte Regeln der Technik) 

  

	 	d)        	the applicable DIN, VDI and VDE regulations) 

  

	 	e)        	the provisions of VOB/B (Verdingungsordnung für Bauleistungen, Teil B) The parties clarify that this does not 

	 	            	mean that VOB/A is applicable as well. 

  

	 	f)        	the German Civil Code (BGB = Bürgerliches Gesetzbuch). 

  

	2.	Scope of Work 

  

	2.1.	Scope of Work 

  
 Contractor is obliged to deliver to Company a new state-of-the-art microprocessor wafer fabrication facility for designing and producing
integrated circuits (300 mm microprocessor wafers (65 nm technology, intended to be later on upgraded to up to 45 or 32 nm (regarding 32 nm defined in the roadmap attached hereto as Exhibit 2 ITRS Roadmap) and associated support
facilities to be located on the Site. Contractor shall plan, design, construct, erect, install, equip, start up, calibrate, adjust and turn over Fab X and execute all Works which are necessary or expedient for completing
Fab X in a turn-key and functional manner and in accordance with the specifications and descriptions contained in Exhibit 3 Design and in a ready for unrestricted hook up condition, regardless of whether the respective item or
component is explicitly mentioned in Exhibit 3 Design and including, but not limited to, all and anything which is technically or functionally necessary or expedient therefore, including, but not limited to, all and any items which
could have an impact on productivity, yield or ease of use but excluding any works and services as named as excluded in the list of interfaces attached as Exhibit 4 List of Interfaces. 
  
 If and to the extent the description of Fab X is insufficient in
order to define specifications for Fab X reference shall be made to the specifications and descriptions under the agreement of November 28,/December 5, 2002 relating to 
  

 9 

 
the Advanced Technology and Process Center (ATPC) or, if this agreement is insufficient to the specifications and descriptions under the Design/Build
Agreement of November 15, 1996. 
  
 The parties
acknowledge and confirm that in case more than one way of executing the Works leads to completion of Fab X or a component or part thereof meeting the standards and requirements provided in this Agreement, Company has the
right to choose the way of execution. If exercising such right to choose leads to cost or time impact this impact is covered by the change procedure provided for in no. 4. 
  
 These aforementioned obligations include, but are not limited to, all and any Works described and provided for in the
design documents attached as Exhibit 3 Design. All standards or requirements necessary or expedient as described herein for completing Fab X in a turn-key and functional manner and in a ready for unrestricted hook up condition
shall be met by the Works, this includes, but is not limited to, meeting all standards and requirements provided for in the design documents attached as Exhibit 3 Design. 
  
 As exception, the Parties clarify that to the extent regulations in
Exhibit 3 Design deal with the technical solution for insurance reasons (FM or VDS) (which is still pending) elements of the Works are only covered by the lump sum provided for in no. 3.1 to the extent these aforementioned
elements of the Works are explicitly described in Exhibit 3 Design. To the extent that regarding the aforementioned elements of the Works works or services other than those contained in Exhibit 3 Design are
requested the impact on the remuneration shall be determined in accordance with the procedure provided for under no. 4. 
  
 The Contractor shall with regard to planning, designing, constructing, erecting, installing, equipping, starting up, calibrating, adjusting
and turning over use best efforts to secure maximum possible value added and to execute the Works in a manner that there is no detrimental impact on the operation of, and production in, Fab 30. 
  
 Moreover, Contractor is aware of the impact executing the
Works under this Agreement could have on the operation of, and the production in, the adjacent Fab 30. Contractor acknowledges that Contractor is aware that any detrimental impact the execution of the Works
may have on Fab 30 and the operation of, and production in, Fab 30 could lead to losses, damages, claims etc, for which Contractor is liable to the extent provided for in this 
  

 10 

 
Agreement. Contractor, therefore, knows and acknowledges that all and any Works to be executed under this Agreement shall –
unless otherwise agreed upon by the Parties—be executed in a manner not affecting, influencing, disturbing or having any other detrimental impact, including, but not limited to, detrimental impact by vibrations, on the operation of
Fab 30 or the production within Fab 30, including, but not limited to, the production of semiconductor processors. Contractor has examined and reviewed, and is aware of, all and any conditions relating to the Site,
including, but not limited to, ground conditions, subsurface conditions and hydrological conditions and Contractor is aware of all and any requirements and conditions of a proper operation and production (including, but not limited to, the
production of semiconductor processors) within Fab 30 as well as within Fab X (to all these conditions is hereinafter referred to as „Site Conditions”). Contractor is liable for executing the Works in the
aforementioned manner and meeting the requirements of the Site Conditions but shall be entitled to an adjustment of the remuneration or an extension of time under the respective applicable provision of this Agreement if and to the
extent findings (Kampfmittel or archäologische Funde) lead to a change of the scope of work. 
  

	2.2.	Document Flow 

  
 Contractor shall submit all Design Documents as defined in Exhibit 5 Design Documents to Company for approval (approval
means written consent). Such approval by Company shall not unreasonably be withheld. Company shall approve or disapprove such documents latest within five (5) working days (working days in the meaning of this Agreement are all
days from Monday through Saturday except for days which are public holidays (gesetzliche Feiertage) in the Free State of Saxony) from receipt. If Contractor has not received the approval or disapproval (defining the reason(s) for
disapproval at the same point in time) within this period from Company receiving the particular document, Contractor shall give Company notice of Company ́s failure to respond in time. If Contractor has not
received Company ́s approval or disapproval within 24 hours from Company ́s receipt of such notice, the particular document shall be deemed to be approved by Company. Contractor shall not be entitled to an
extension of time because of Company ́s justified refusal to approve a certain document. 
  

 11 

	2.3.	Conduct of Executing Works 

  
 All Works to be executed shall, in addition to being executed in a manner meeting the standards and requirements in other parts or provisions of
this Agreement, be executed in a manner meeting clean room standards as defined in Exhibit 3 Design. 
  
 Contractor explicitly acknowledges that Contractor is aware of the conditions and requirements of a 300 mm microprocessor wafer fabrication
facility and the standards to be met by such facility (which are far higher than the standards of regular industrial construction), especially those to be met by the Works and Fab X, including, but not limited to, cleanroom conditions.
Contractor explicitly warrants that Contractor sufficiently informs all subcontractors of all conditions, requirements and standards to be met on or by such facility, including, but not limited to, cleanroom conditions. 
  
 Company has an absolute ban on smoking in place over the entire
Site and in all its buildings, with the exception of smoking zones marked accordingly. 
  
 For reasons of personal and general safety, the consumption of any alcoholic beverages during work, or starting work in an intoxicated condition, is prohibited. This also applies for other drugs. 
  
 Contractor hereby undertakes to strictly monitor compliance with
these prohibitions on the part of its employees or the staff of any subcontractors used. Repeated breaches or offences, in spite of a warning, shall be a valid basis for expulsion of the employee or the subcontractor from the Site.

  

	2.4.	Materials 

  
 Contractor shall, on demand of Company, submit for Company’s approval, detailed information, including, but not limited to,
model number, quality, manufacturer, about all materials Contractor intends to use. In addition, Contractor shall submit to Company, for Company’s approval, detailed information about all materials which are exposed
to parts of Fab X which are to be or might be operated under clean room conditions. Such approval shall not unreasonably be withheld by Company. 
  

 12 

	2.5.	Company’s inspections 

  
 Company shall, at any time, have the right to review and inspect all and any of the Works by Contractor, including but not limited
to, any Works documents, plans, drawings, Design Documents, discs, electronic data and like (except for commercial data which shall – unless provided otherwise in this Agreement—only be disclosed if and to the extent
necessary for determining price adjustments under no. 4.2 of this Document). Moreover, Contractor shall – on demand – submit to Company copies of any of such documents and all documentation and information related to
the execution of the Works to be executed. Exhibit 6 Company’s Inspections shall apply accordingly to any Works to be executed under this Agreement.  
  

	2.6.	Obligations 

  
 The Parties clarify and acknowledge that the obligations which form part of the Works include, but are not limited to, the following:

  

	2.6.1.	Staturory and like Requirements 

  
 Contractor shall obey Baustellenverordnung and all and any statutory and like requirements including, but not limited to
Arbeitsstättenverordnung, Arbeitsnehmerüberlassungsgesetz, Bundesimmissionsschutzgesetz, Strahlen- und Röntgenschutzverordnung, Sicherheitsbestimmungen, Bestimmungen der Berufsgenossenschaften and all and any
Unfallverhütungsvorschriften (accident prevention regulations) and all and any accident prevention obligations and EU directives and shall impose this duty on all subcontractors. This includes, but is not limited to,
Contractor ́s obligation to develop a security and health plan (Sicherheits- und Gesundheitsschutzplan). If Contractor proves that changes of such statutory or like requirements becoming effective after conclusion of this
Agreement of which Contractor has not been aware at the time of concluding this Agreement results in changes in the scope of work the financial impact of the total of such changes of such laws or like is more than Euro 75,000.00
(seventy five thousand Euro) the change order procedure provided for in no. 4 shall apply on the entire amount (if the amount is Euro 75,000.00 or less the change order procedure shall not apply but the resulting impact on the scope of work shall be
covered by the lump sum provided for in no. 3.1). 
  

 13 

	2.6.2.	Progress Updates 

  
 Contractor shall provide Company, with monthly status and progress reports and – upon reasonable and justified request of
Company – with periodic progress reports in the frequency justified by the situation. In addition Contractor shall provide Company with weekly progress updates. Moreover, Contractor shall provide Company with
technical progress reports relating to all completions of relevant parts of Fab X (for example “Fab construction weathertight” or “clean room ready for equipment”) and of milestones provided for in this Agreement
and for completions which trigger – under the payment schedule for progress payments attached as Exhibit 7 Payment Schedule - payments on account. 
  

	2.6.3.	Construction Diary 

  
 Contractor shall keep a construction diary (Bautagebuch) on an at least daily basis. 
  

	2.6.4.	Calibrating, Adjusting, Testing 

  
 The obligations of Contractor shall include, but not be limited to, all and any calibrating, adjusting, testing and like of Fab X and all
and any parts and components thereof to the extent necessary or expedient for completing Fab X in accordance with this Agreement. 
  

	2.6.5.	Permits 

  
 Contractor shall be obliged to procure all necessary permits, acceptances and like which are necessary or expedient for executing or completing the
Works or completing Fab X in accordance with this Agreement, including, but not limited to, the building permit, necessary permits under water law (wasserrechtliche Genehmigungen, Erlaubnisse etc.), permits required under
the Working Hours Law (Arbeitszeitgesetz) (e.g. for work on Sundays). 
  

 14 

	2.6.6.	Construction Management 

  
 Contractor shall render all and any construction management and supervision services necessary or expedient for the execution and completion of the
Works and the completion of Fab X in accordance with this Agreement. This includes, but is not limited to, Contractor ́s obligation to coordinate with persons, including but not limited to work or services performed
by Company and with other contractors employed by Company, acting on the Site on behalf of Company. Such person acting on behalf of Company shall obey Contractor ́s construction site rules and shall
attend Contractor ́s coordination meetings which Contractor shall carry out in a form, number and in intervals (at least weekly) as, and with all participants, necessary and expedient and invite Company to, and provide
Company with protocols of all coordination meetings. However, Contractor shall not be liable and responsible for conduct of such persons acting on behalf of Company (Erfüllungsgehilfen des Auftraggebers) unless such
conduct is caused by Contractor. Company shall instruct and inform any such person accordingly. The obligations of Contractor shall include, but shall not be limited to, coordinating the timing of work done by Contractor
with that carried out by third parties, 
  

	 	•	 	coordinating the physical location and personnel allocation arrangements for work done by Contractor and third party works, 

  

	 	•	 	harmonizing the structural engineering aspects of the work done by Contractor with third party contributions to the project and 

  

	 	•	 	coordinating works and firms, so that all aspects of the construction project will proceed in accordance with the accident prevention regulations. 

  

	2.6.7.	Planning, Engineering, Designing, Architectural and like Works 

  

The obligations of Contractor shall include all and any planning, engineering, designing, architectural and like works or services necessary or
expedient for the execution or completion of the Works and Fab X in accordance with this Agreement. Contractor shall be obliged to deliver the completed design for Fab X. 
  

 15 

 These planning, engineering, designing, architectural and like works, include, but shall not be limited
to, preparation and submission of all and any Design Documents defined in Exhibit 5 Design Documents. 
  

	2.6.8.	Operation and Maintenance Data 

  
 With respect to the obligation of Contractor regarding Operation and Maintenance Data, the provisions of Exhibit 8 Operation and Maintenance
Data shall apply to the extent reasonably applicable unless explicitly provided for otherwise in this Document. 
  

	2.6.9.	Mechanical, Electrical, Processing Components 

  
 The obligations of Contractor shall include, but shall not be limited to, all and any Works necessary or expedient for planning, designing,
constructing, erecting, installing, equipping, starting up, calibrating, adjusting and turning over the completed shell and all mechanical, electrical and processing components of Fab X in a turn-key and functional manner and in a ready for
unrestricted hook up condition in accordance with this Agreement. 
  

	2.6.10.	Letter of Intent 

  
 The works and services rendered under the letter of intent of May 16, 2003 as amended under the letters of August 13, 2003 and November 3, 2003.

  

	2.6.11.	Health and Savety Plan/Site Rules 

  
 Contractor shall formulate a health and safety plan and a set of site rules, and shall make the required prior notification to the competent
factory inspectorate authority (Gewerbeaufsichtsamt). 
  

	2.6.12.	Environmental, Health, Safety and Security Requirements 

  
 Contractor shall meet all environmental, health, safety and security requirements provided for in Exhibit 9 EHS Program. 

 

 16 

	2.6.13.	Obligation to observe Rules 

  
 Contractor shall place its employees and any subcontractors employed under a written obligation to observe the safety and discipline rules in force
at that location and Contractor shall clearly mark the rooms and areas used by it with its company name. 
  

	2.6.14.	Acceptances by Authorities 

  
 Contractor shall carry out, or have carried out, acceptances by authorities (Behördenabnahmen). 
  

	2.6.15.	Health and Savety Coordinator 

  
 Contractor shall appoint and commission the services of a health and safety coordinator (HSC), at its expense, pursuant to the Construction Site
Regulations (Baustellenverordnung), VBG 1 and of the Industrial Safety Law (Arbeitsschutzgesetz). Moreover, Contractor shall provide suitable training for his personnel in all health and safety requirements, including,
but not limited to, disposal of hazardous or toxic waste. Contractor shall not remove the safety and health engineer prior to completion of all and any Works on the site. This shall not be prior to remedying – and formally
accepting by Company that the defects had properly been remedied – all defects which had been detected in the course of the final acceptance. Contractor may, upon Company ́s prior written consent, appoint another
person as health and safety coordinator. 
  

	2.6.16.	Clean Site 

  
 The Site must be kept tidy, in accordance with accident prevention regulations, for the entire duration of the Works. Rubbish and packaging
material is generally to be disposed of immediately. Rubbish containers shall be emptied regularly. In particular, care shall be taken to ensure that there is no lasting impact on subsequent works from rubbish, dust and other contamination. The
Site is generally to be kept clean both inside and outside. The Site shall be cleaned to the extent provided for in the clean protocol (Exhibit 10 Clean Protocol). 
  

 17 

	2.6.17.	Construction Supervisor 

  
 The construction supervisor’s rights and obligations pursuant to the Building Regulations of Saxony (sächsische Bauordnung) apply to the
Contractor. Company shall be notified of the name, address and contact details of the construction supervisor in good time and may only object to such person for good cause. 
  

	2.6.18.	Clean Roads 

  
 Public roads and works roads shall be kept clean at all times, with any soiling to be cleaned up immediately. 
  

	2.6.19.	Security 

  
 Contractor shall be solely and completely responsible for, and shall establish and maintain, the security of the Site, including protection
of personnel, the work and materials.  
  

	3.	Remuneration 

  

	3.1.	Lump Sum Price 

  
 As consideration in full for the Works to be executed and all obligations of Contractor under this Agreement Company shall pay to
Contractor a fixed lump sum (Pauschalfestpreis) of Euro 380,500,000.00 plus VAT as applicable from time to time. 
  
 The lump sum price shall be fixed up to and including final acceptance of the entirety of Works (Der Pauschalfestpreis gilt bis
einschließlich der Schlußabnahme der Gesamtleistung). 
  
 The parties acknowledge and confirm that the payments to be rendered under the letter of intent of May 16, 2003 as amended under the letters of August 13, 2003 and November 3, 2003 shall form part of the aforementioned lump sum and no
additional remuneration shall be paid for these works and services which shall form part of the Works. 
  

 18 

	3.2.	Payments on Account 

  
 Contractor shall be entitled to payments on account as provided in Exhibit 7 Payment Schedule. All payments except for the final
payment shall be considered payments on account (Abschlagszahlungen) and shall not be deemed to signify or imply acknowledgement (Anerkenntnis) or acceptance of the Works to which the particular payment on account relates.
Invoices regarding payments on account (Abschlagsrechnungen) shall – to the extent provided for in no 10.1 and if the respective underlying Works were completed - become due for payment within 45 days from being received by
Company. 
  
 On Company’s request
Contractor shall – within one week from receipt of the request – provide Company with invoices on account relating to Works which Company requests to be invoiced. 
  
 If mutually agreed upon by the parties Contractor has the right to
submit to Company a partial final invoice (Teilschlußrechnung) relating to parts being subject to prior use or partial acceptance, provided that such partial final invoice does not constitute acceptance or transfer of risk to
Company (unless provided otherwise in this Agreement). 
  

	3.3.	German Income Tax Act 

  
 The parties clarify that the remuneration to be paid under this Agreement is subject to the provisions under section 48 German Income Tax Act
(Freistellungserkärung nach § 48 Einkommenssteuergesetz), including the deduction provided for therein, to the extent applicable. 
  

	3.4.	Presupposition for Payments becoming due 

  
 No payment whatsoever shall become due prior to Contractor submitting to Company the performance guarantee provided for in no. 10.2, the
refined lump sum price estimate provided for in no. 4 and Contractor submitting to Company a declaration (Freistellungserklärung) meeting the requirements of section 48 German Income Tax Act (Einkommenssteuergesetz)
or a declaration – justified - that Contractor will not submit such declaration. 
  

 19 

 Except for the first payment on account of Euro 10,800,000.00 (plus VAT as applicable from time to time)
no payment whatsoever shall become due prior to an equity injection security (belastbare Durchfinanzierungszusage being submitted to Company. 
  

	4.	Changes 

  
 Company shall be entitled to – in writing – request Contractor to execute changes or additional works, services and deliveries
(“Additional Works”). Such changes or Additional Works shall be executed even if at the time of the written request agreement on the impact of the change or the Additional Works on the remuneration to be paid to
Contractor has not been reached. In that case the impact on the remuneration shall be determined within a reasonable time from the Company ́s request to execute changes or Additional Works. 
  
 The execution of changes or Additional Works prior to an agreement on
the impact on the price shall not lead to a detrimental financial impact on Contractor. However, Contractor shall, prior to the execution notify Company in writing of the price impact, otherwise Contractor shall not be
entitled to an increase of the remuneration. 
  
 If an order of
Company for changes or Additional Works leads to the project being held up, interrupted or an extension of time, Contractor shall notify Company in writing prior to the commencement of the execution of the changes or of
the Additional Works on the – fifth (5) working day from receipt of the written request. If Contractor fails to give such written notification in time, Contractor shall not be entitled to an extension of time. 

 
 Unless provided otherwise in this Agreement all provisions
relating to Works and the execution of Works under this Agreement shall also apply to changes or Additional Works. 
  
 Company is, at any time, entitled to request Contractor not to execute certain Works or to reduce the scope of work. In this case
Contractor is obliged to immediately stop Works which Contractor is requested not to execute. The Parties clarify that this does not lead to a reduction of the remuneration Contractor is entitled to for
Works already executed (the Parties clarify that 

  

 20 

 
works which are in progress are remunerated to the extent already carried out) in accordance with this Agreement prior to receipt of the request. Only
in case and to the extent Contractor is in the course of duly executing the Works obliged to remunerate subcontractors or render other payments to third parties, which remuneration or payment can not be avoided (for example can be
avoided since the change leads – in total - to an increased remuneration or payment) Company shall reimburse Contractor for such expenditures (such reimbursement shall be limited to the remuneration if the portion had be
executed). 
  
 The Parties clarify that changes of
quantities (Massen and Mengen) within the scope of work (the scope of work which relates to the lump sum provided for in no. 3.1) shall not lead to an adjustment of the remuneration. 
  
 The remuneration provided in no 3.1 of this Agreement shall – in
case change or Additional Works are executed – be adjusted as follows: 
  

	4.1.	Adjustment can be calculated based on lump sum price calculation 

  
 Contractor based the lump sum provided for in no. 3.1 on the lump sum price calculation attached as Exhibit 11
Lump Sum Price Calculation. 
  

	4.1.1.	Works to be executed in addition 

  
 If due to a request for changes or Additional Works works, services or deliveries which are not part of the Works which form part of the
wafer fabrication facility to be completed as described under no. 2.1 but which are equal to items, other parts of the Works or components etc. covered by the lump sum price calculation or the refined lump sum price calculation are requested
to be executed and not part of the Works to be executed for the initial lump sum the remuneration is increased by the amount for the respective part of the change or Additional Works to be executed contained in the lump sum price
calculation or, the refined lump sum price calculation (which based on and in line with the lump sum price calculation further details the lump sum price calculation and in which unit prices are allocated to all components, items etc.) if already
delivered at the time of requesting the change or Additional Works underlying the works, services or deliveries to be executed or rendered in addition. The refined lump sum price calculation shall be submitted to Company by Contractor
no later than November 30, 2003 and replace the the lump sum price calculation. 
  

 21 

	4.1.2.	Works not to be executed 

  
 If due to a request for changes or Additional Works, Works covered by the lump sum price calculation are requested not to be executed, the
Works to be executed for the initial lump sum the remuneration is reduced by the amount for the respective part of the Works not to be executed contained in the lump sum price calculation or the refined lump sum price calculation, if
already delivered at the time of requesting not to execute Works or Additional Works underlying the works, services or deliveries to be executed or rendered in addition. The refined lump sum price calculation shall be submitted to
Company by Contractor no later than November 30, 2003. 
  

	4.1.3.	Changes leading to Reductions and Additions 

  
 If changes requested lead to reductions as well as additional works, services or deliveries, the price impact of additional works, services or deliveries
the increase is determined under no. 4.1.1 and the price impact of reductions is determined by no. 4.1.2. 
  

	4.2.	Adjustment can not be based on lump sum price calculation 

  
 If certain works, services or deliveries to be executed are not covered by the scope of work to be executed for the lump sum provided for in no. 3.1 and
to the extent the adjustment of the price cannot be determined in accordance with no. 4.1 since the works, services or deliveries requested to be executed are not covered by the lump sum price calculation or the refined lump sum price calculation
the price adjustment shall be determined in accordance with the following procedure which the Parties agree to follow without any detrimental time impact on the completion of Fab X: 
  
 Contractor shall - based on tender documents approved by
Company - ask potential subcontractors for competitive bids (generally three) based on a lump sum approach for such works, services or deliveries. Contractor shall also be entitled to submit a bid. Company shall have the right
to provide additional bids. Based on the bids – of which Company is provided with copies - 
  

 22 

 Contractor shall submit to Company a written proposal which bid Contractor considers
most favorable for Company which proposal shall contain the underlying reasons. 
  
 Contractor is entitled to a fee of [***]* of the remuneration to be paid to the respective subcontractor (as general contractor’s fee (Generalübernehmerzuschlag) and of
[***]* of the remuneration to be paid to the respective subcontractor as lump sum for the indirect costs of
Contractor in addition to the costs to be paid to the respective subcontractor in accordance to the respective subcontract. 
  
 The Parties clarify that not Company but Contractor shall be party to the subcontracts and that the provisions of this
Agreement relating to subcontractors shall apply unless explicitly provided otherwise in this no. 4.2. 
  

	4.3.	Payments 

  
 In case of reductions the respective reduction will be considered in the next invoice regarding a payment on account (Abschlagsrechnung) and the
amount invoiced is reduced accordingly. In cases of increases of remuneration the respective increase shall be – in verifiable form and explaining the calculation of the increase and the basis thereof in detail – included in the invoice
regarding the payment on account which relates to the Works the change or Additional Works relate(s) to. 
  
 In case of a termination of the entire Agreement under the termination provisions contained in no. 13.2 of this Agreement, Contractor
shall be only entitled to the remuneration provided for in these termination provisions. 
  

	5.	Subcontracting/Personnel 

  

	5.1.	Subcontracting 

  
 Contractor shall be entitled to subcontract parts of the Works if and to the extent the following procedure is applied. Prior to entering in
contracts with subcontractors Contractor shall inform Company in writing of Contractor ́s 
  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 23 

 intention to subcontract giving Company the complete name and address of the proposed
subcontractor and the part of the Works to be executed by this subcontractor. The Contractor shall not employ a proposed subcontractor if Company submits to Contractor in writing – and within three working
days from being informed of name, address and part of work – an objection to employing the subcontractor and this objection is supported by good cause explained in writing in the objection letter. 
  
 In case such objection is supported by good cause, Contractor is not
entitled to any additional remuneration because of the employment of a subcontractor other than the one initially proposed. 
  
 The Parties acknowledge that Company has not objected to employing the subcontractors contained in the list attached as Exhibit 12
List of Subcontractors consented to. 
  
 Subcontracting does not impact on Contractor’s liability and responsibility under this Agreement. The Contractor remains liable for all acts and omissions of the subcontractors which shall be persons or entities
engaged by Contractor for the fulfillment of Contractor ́s obligations (Erfüllungsgehilfen des Contractors). The Contractor shall use its best efforts in choosing subcontractors which are competent,
capable and qualified to complete the Works to be executed by the respective subcontractor properly and in–time. 
  
 The Contractor explicitly affirms that its employees are paid at least minimum wages. The Contractor moreover affirms only to employ
subcontractors and entities providing workers (Verleiher i.S. des Arbeitnehmerüberlassungsgesetzes) which equally compensate their employees by minimum wage. Contractor will – on demand – provide Company with the
necessary documentation that Contractor as well as any subcontractor or entities providing workers have paid and will pay such minimum wage. 
  
 Contractor shall, simultaneously with signing this Agreement, sign the declaration attached to this Agreement as Exhibit 13
Work Force Regulation and shall impose on subcontractors at least the same obligations. 
  

	5.2.	Personnel 

  
 The Contractor’s personnel shall be appropriately qualified, skilled and experienced in their respective trades and occupations, as to ensure
professional execution of the works. Contractor shall impose on all subcontractors the obligation to employ and use equally qualified, skilled and experienced personnel. 
  

 24 

 Company may require the Contractor to remove (or cause to be removed) any of
Contractor ́s personnel, unless Company requires such removal unreasonably. Contractor shall impose on all subcontractors and the same obligation to remove (or cause to be removed) any of these subcontractors’
personnel if Company reasonably so requires. Company shall have the right to inspect at any time if the Contractor and all subcontractors meet all applicable labor law requirements. Not meeting these requirements shall be
considered a reason for termination for good cause.  
  
 Contractor shall not remove the key personnel listed below without prior written approval of Company. 
  

			
	 Name

	  	 Title/Position

	 [***]*
	  	Project Manager on site
		
	 [***]*
	  	Deputy Project Manager
		
	 [***]*
	  	Commercial Manager on site
		
	 [***]*
	  	Executive Sponsor
		
	 [***]*
	  	Executive Sponsor
		
	 [***]*
	  	Executive Sponsor

  
 The aforementioned
key personnel - except Executive Sponsors - shall - except for times of vacation, holiday or illness - be present on Site at all time to ensure proper execution of the personnel’s function and may not be used in other projects than the
project underlying this Agreement.  
  
 The responsible
person authorized to act on Company ́s behalf shall be [***]* and as substitute responsible person [***]*. 
  
 The responsible person authorized to act on
Contractor ́s behalf shall be [***]* and as substitute responsible persons
[***]*. 
  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 25 

 Such responsible and substitute responsible persons shall be authorized to enter into binding agreements
and to give binding declarations (Willenserklärungen) for and against the respective Party represented. 
  

	6.	Formal Acceptance 

  

	6.1.	Formal Acceptance 

  
 After completion of the whole of the Works to be executed including, but not limited to, the tests to be performed (being precondition to
acceptance) and the submission of all documents related to the execution of this Agreement, the Parties shall carry out a formal acceptance (förmliche Abnahme) to be documented in a protocol signed by authorized
representatives of both Parties. 
  

	6.2.	No prior Acceptance 

  
 Only finally and formally accepting the whole of the Works to be executed, including but not limited to, the tests to be performed and the
submission of all documents related to the execution of this Agreement shall constitute an acceptance and not if a certain time from the notification of the completion has expired, or if Company has begun to use the relevant part of
the Works, Fab X or parts thereof. No other declaration (than the Acceptance Certificate) by Company or by anybody acting on behalf of Company or any third party (as a lender) than the formal final acceptance shall be
considered an acceptance or having any impact of an acceptance. 
  
 The acceptance may not be withheld in case of minor defects (unwesentliche Mängel). 
  
 However, if Company desires to accept or use a certain part of the Works or a certain part of Fab X prior to this formal final
acceptance, Company has the right to request Contractor to participate in (a) partial acceptance (s) which then has/have to take place within one week from Company being requested in writing. If such partial acceptance has been
formally carried out the risk regarding those Works covered by the partial acceptance is – unless defects were not detected by Company or hidden at the time of the partial acceptance – transferred to Company. However,
the limitation period for defects liability shall – in any case - not commence prior to the day after the day of final acceptance. 
  

 26 

 In case damages and defects are caused by Company due to any kind of activities Contractor
shall not be liable for any impact resulting thereof. 
  
 If in
the course of any acceptance defects are ascertained, Contractor shall be obliged to remedy these defects within 10 weeks from the date of acceptance, unless this time period is not reasonable (angemessen). This does not affect or
limit the right of Company to refuse the formal final acceptance (or if a partial acceptance has been carried out in accordance with this Agreement, the partial acceptance) according to Sec. 12 no. 3 VOB/B. 
  
 No acceptance - whether partial or final - to be granted in accordance with
this agreement shall be unreasonably withheld. 
  
 Shortcomings
and defects identified in the course of an acceptance shall be noted in a mutually developed punch list 
  

	7.	Milestones; Contractual Penalty 

  

	7.1.	Milestones (Vertragsfristen) 

  

The following milestones allocated to the respective independent assets shall constitute contractual terms in the meaning of sec. 5 no. 1 VOB/B:

  

	 	a)        	CUB Weathertight 

  
 All Works necessary or expedient for reaching CUB Weathertight (Fertigstellung der äußeren Hülle des Central Utility
Building) as defined in Exhibit 14 Milestone Definitions shall be completed on [***]* at the latest. 
  

	 	b)        	Fab Weathertight and Airtight 

  
 All Works necessary or expedient for reaching Fab Weather- and Airtight (Fertigstellung der äußeren Hülle des Fab
Gebäudes) as defined in Exhibit 14 Milestone Definitions shall be completed on [***]*
at the latest. 
  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 27 

	 	c)        	Fab X Ready for Equipment 

  
 All Works necessary or expedient for reaching Fab X Ready for Equipment condition (which means that all independent assets of Fab
X (Office, Spine, CUB and Fab) are ready for equipment as defined in Exhibit 14 Milestone Definitions) shall be executed on [***]* at the latest. 
  
 The Parties clarify that in case hindrances or other delays which Contractor is not liable for (die Contractor nicht zu vertreten hat) or in case of Contractor being entitled to additional time due
to requests of Company to execute changes or Additional Works (if and to the extent Contractor proves that such change or Additional Works result in a delay), Contractor shall not be in delay for these days and the
date at which the part of the Works underlying the relevant milestone are to be completed is postponed by the number of working days by which due to such hindrance, delay or additional time the execution is delayed (which is calculated by
applying the critical path method), provided, however, that Contractor is – under this Agreement – entitled to claim such additional time. The Parties acknowledge and confirm that there could be substantial hindrances,
delays and orders to execute Additional Works which could lead to (a) substantial postponement(s) which would not lead to the provisions of this Agreement regarding milestones and contractual penalties no longer being applicable
(however, the date(s) of the respective milestone(s) shall be postponed in accordance to this no. 7.1). 
  

	7.2.	Contractual Penalty (Vertragsstrafe) 

  

	 	a)        	If Contractor is, due to Contractor’s fault, in delay with meeting the milestone CUB Weathertight provided for in no. 7.1.a) of this Agreement for
more than [***]*, Company shall be entitled to a contractual penalty of 

  

	 	-	[***]* 

  

	 	-	[***]* 

  

	 	-	[***]* 

  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 28 

 The total of any contractual penalty to which Company is entitled to for being in delay with
meeting the milestone CUB Weathertight shall not exceed [***]*. 
  

	 	b)        	If Contractor is, due to Contractor’s fault, in delay with meeting the milestone Fab Weathertight and Airtight provided for in no. 7.1.b) of this
Agreement for more than [***]*, Company shall be entitled to a contractual penalty of

  

	 	-	[***]*

  

	 	-	[***]*

  

	 	-	[***]*

  
 The total of any contractual penalty to which
Company is entitled to for being in delay with meeting the milestone Fab Weathertight and Airtight shall not exceed [***]*. 
  

	 	c)        	If Contractor is, due to Contractor’s fault, in delay with meeting the milestone Fab X Ready for Equipment provided for in no. 7.1.c) of this
Agreement for more than [***]*, Company shall be entitled to a contractual penalty of

  

	 	-	[***]*

  

	 	-	[***]*

  

	 	-	[***]* 

  
 The total of the contractual penalty to which Company is entitled for being in delay with meeting the milestone Fab X Ready for Equipment
shall not exceed [***]*. 
  
 The Parties acknowledge and confirm that the entitlement to contractual penalty does not impact on Company ́s
other or further rights or claims based on the delay, including, but not limited to, Company ́s right to claim compensation for damages because of such delay (Verzugs- und/oder Verzögerungsschaden) including, but not limited
to, damage due to allowance not being granted (Investitionszulagen). These other or further rights or claims shall, however, be reduced by the amount of the contractual penalty to which Company is entitled. 
  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 29 

 The parties acknowledge and confirm, that the contractual penalty Company is entitled to shall be
reduced to the amount of the actual damage (Verzugs- und/oder Verzögerungsschaden) including, but not limited to, damage due to allowance not being granted (Investitionszulagen)) caused by the delay if the milestone Fab Ready
for Equipment is met despite one of or both of the other penalized milestones were not met. If the contractual penalty had already been paid by Contractor and is to be reduced in accordance with the preceding sentence Company has
to reimburse Contractor accordingly. 
  
 The Parties
clarify that Company may reserve its right to demand a contractual penatly (Vorbehalt der Vertragsstrafe) until the due date of the final invoice. 
  

	7.3.	Further Milestones 

  
 In addition, Contractor is obliged to complete the following milestones (some of which are defined in Exhibit 14 Milestone
Definitions) by the following dates: 
  

			
	 Milestone

	  	 Date

	Spine weathertight	  	[***]*
		
	Office weathertight	  	[***]*
		
	Office ready for Occupation	  	[***]*
		
	Ready for Unrestricted Hook Up	  	[***]*

  
 The fact that these
milestones are not subject to contractual penalty does not impact Contractor’s responsibility for meeting these milestones or Contractor’s liability for damages, losses etc. resulting from Contractor culpably being in
delay with punctually completing the relevant part of the Works necessary for complying with the relevant milestone. In case of hindrances or other delays which do not result from culpable conduct of Contractor or in case of
Contractor being entitled to additional time due to orders of Company to execute Additional Works, the last two sentences of no. 7.1. shall be applied accordingly. 
  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 30 

	7.4.	Schedule 

  
 Contractor shall – within two weeks from signing this Agreement – furnish to Company a detailed schedule based on the
milestones provided for in this Agreement and on the critical path method showing all activities and Works to be executed and the time frame within which these activities and Works shall be executed as well as the implications
and consequences of these activities and Works, especially the impact of each activity or work on each other. The time schedule to be provided within two weeks from signature of this Agreement shall be based on and reflect the
preliminary time schedule attached as Exhibit 15 Time Schedule. If the project falls behind schedule the Contractor shall prepare and submit for Company ́s approval a recovery plan showing such actions as may be
required to restore the schedule. Contractor shall only be entitled to compensation for additional costs of these actions, and these costs shall only be considered reimbursable costs, if Contractor proves that falling behind the
schedule was not due to Contractor. 
  

	7.5.	Force Majeure 

  
 Neither Party shall be liable for delays which are caused by events of force majeure. Occurences beyond the control of the party affected shall
constitute force majeure of such affected party, including, but not limited to, acts of governmental authority (excluding delays attributable to the party’s delays or other fault and excluding proper exercise of the police power response to an
improper act or omission of the affected party), unusually severe weather conditions (as defined in this section), strikes or other concerted actions of workmen (except to the extent caused by the affected party or persons or entities acting on the
affected party’s behalf (Erfüllungsgehilfen) and except to the extent that a strike had been announced in advance and provision could have been made to alleviate such strike’s effects), fires, floods, explosions, riots,
sabotage or shipwrecks (except to the extent such fires, floods, explosions, riots, sabotage, or shipwrecks were caused by the affected party or its agents, officers, representatives, subcontractors or vendors), war and rebellion. As used in this
no. 7.5 of this Agreement, the term “unusually severe weather conditions” shall mean wheather condition that (i) Contractor establishes to Company’s reasonable satisfaction were not reasonable foreseeable and (ii)
were sufficiently severe that thirty percent (30 %) of the work force employed on the Site were unable to work, and (iii) resulted in delay that affected the critical 
  

 31 

 
path set forth in the schedule provided for in no. 7.4 of this Agreement. Notwithstanding anything herein to the contrary, events of “force
majeure” shall not include the following: (I) delays caused by general economic conditions or (II) delays caused by open market conditions, such as inability to procure labor or materials in the open market. Insufficiensies in the design of
Fab X, rejection by Company pursuant to this Agreement of any proposed subcontractor or material or absense of Contractor’s representatives or other personnel shall also not be considered as a just cause of delay.
Contractor shall be fully responsible for the timely ordering, scheduling, expediting, delivery, and installation of all material, items etc.. Therefore, delays by vendors in manufacture or delivery of materials, which delays are not caused
by force majeure, or shortages of labor or materials resulting from general market conditions shall not be considered as a just cause of delay. 
  

	8.	Distribution of Risk 

  
 Except otherwise provided in no. 6 the distribution of risk shall be exclusively governed by sections 644, 645 German Civil Code (BGB). 

 

	9.	Defects Liability 

  

	9.1	Defects Liability 

  
 The limitation period for defects liability (Gewährleistungsfrist = Frist in der Mängelansprüche verjähren) shall be:

  

			
	 Wear and tear:
	  	 1/2 year
		
	 Electrical (electrical generating or transmitting equipment,
 such as transformers, switch gear, generators,, etc.):
	  	two years
		
	 Rotating and fire exposed parts and bulbs:
	  	one year
		
	 Piping and static as well as mechanical parts:
	  	five years
		
	 Any other portion of the facility:
	  	five years
		
	 Roof:
	  	ten years

  

 32 

 In case Contractor and Contractor’s subcontractors or any vendors agree on a longer
limitation period such longer limitation period shall apply. The reference in sec. 13 no 5 VOB/B to the limitation period in sec. 13 no 4 VOB/B shall be substituted by a reference to the limitation period provided for in this no. 9 of
this Agreement. Section 13 no 4 VOB/B shall not apply. The limitations on the liability, especially on the liability for consequential damages, provided for in section 13 no. 7 VOB/B shall not apply. 
  

	9.2.	Warranty 

  
 Contractor shall warrant that all and any Works are executed in accordance with this Agreement and that the result to be achieved
(Werkerfolg) is in accordance with this Agreement. 
  

	9.3.	Warranties 

  
 Contractor has carefully examined and is aware of the location of all and any means for supply of Fab 30 and of Fab X and for
disposal of substances, including, but not limited to, water, bulk gas, gas, light or electromagnetic signals or impulses and energy, including, but not limited to, utilities and all and any means for disposal of such or like substances.
Contractor is aware of all and any conditions which could have an impact, including, but not limited to, detrimental impact by vibrations, on the proper operation of Fab 30 and/or on the proper production, including, but not limited
to, the production of semiconductor processors, within Fab 30, including, but not limited to, those which could, will or could arise or which will or could be caused by the execution of the Works (or by the execution of changes or
Additional Works) to be carried out by Contractor or by subcontractor. Contractor has carried out all surveys necessary or expedient to examine and review all and any Site Conditions, including, but not limited to surveys with
respect to subsurface conditions, the vibration risk, the impact of radar (Radarverträglichkeit) and all risks which could lead to an interruption or limitation of the production or could have a detrimental impact on a proper operation
of Fab 30 or Fab X or the unlimited, unrestricted and proper production, including, but not limited to, the production of semiconductor processors, within the Fab 30 or Fab X. 
  
 Contractor warrants (i) that the work, the Works, any changes
and Additional Works and the design shall satisfy Company ́s requirements for 

  

 33 

 
clean room air quality, process equipment (unless unknown by Contractor), vibration, particularity, air, water and other quality requirements of
Company; (ii) that the execution of the Works and of any changes and Additional Works will not lead to any vibrations which affect, influence, disturb or have any other detrimental impact on the unlimited, unrestricted, and
proper operation of Fab 30 or Fab X or on the unlimited, unrestricted and proper production, including, but not limited to, the production of semiconductor processors, within Fab 30 or Fab X and that the Works any
changes and Additional Works or the execution of the Works any changes and Additional Works will not affect, influence, disturb or have any other detrimental impact on the unlimited, unrestricted and proper operation of Fab
30 or Fab X or on the unlimited, unrestricted and proper production, including, but not limited to, the production of semiconductor processors, within Fab 30 or Fab X; (iii) that Contractor has only employed and
selected and will only use such means and methods which cannot affect, influence, harm or have any other detrimental impact on the unlimited, unrestricted and proper operation of Fab 30 or Fab X or on the unlimited, unrestricted and
proper production, including, but not limited to the production of semiconductor processors, within Fab 30 or Fab X; (iv) that Contractor has carefully examined and reviewed any and all means and methods to be employed for the
execution of the Works any changes and Additional Works to be executed under this Agreement; (v) that Contractor has examined and knows all and any facts, events and circumstances which might be relevant to, or could
affect, influence, harm, or have any other detrimental impact on, the unlimited, unrestricted and proper production, including, but not limited to, the production of semiconductor processors, within Fab 30 or Fab X, (vi) that
Contractor has performed all and any surveys and tests necessary to examine and know all and any Site Conditions; (vii) that there are no Site Conditions which could be relevant to, or affect, influence, harm or have any other
detrimental impact on the proper execution of, the Works any changes and Additional Works to be performed under this Agreement, or which might be relevant to, or could affect, influence, harm or have any other detrimental impact on the
proper operation of Fab 30 or Fab X and the unrestricted, unlimited and proper production, including, but not limited to, the production of semiconductor processors, within Fab 30 or Fab X, (viii) that Contractor
has carefully examined the Site and is aware of the location of any means through which Fab 30 or Fab X is or will be supplied, including, but not limited to, the supply with water, bulk gas, other gas, electricity, light or
electromagnetic signals or impulses, including, but not limited to, utilities and all any means for the disposal of such or like substances, (ix) that - unless 
  

 34 

 
agreed upon otherwise between the Parties - the Works any changes and Additional Works will not lead to any vibrations exceeding 250
microinch/sec for ATPC and 320 microinch/sec Malab for and that Contractor is responsible for all Site Conditions.  
  
 If mutually agreed upon between the parties, Contractor shall be granted defined shut down periods, if and to the extent such shut downs are
absolutly necessary for proper execution of the Works. Such shut downs may only be granted, if and to the extent the operation of and production within Fab 30 is impacted to the lowest degree possible. 
  

	10.	Securities 

  

	10.1.	Retention 

  
 Company may retain from any payment to be made under this Agreement an amount equal to a total of [***]* of the gross remuneration
due at the relevant time. Therefore, Company is only obliged to pay [***]* of the amounts which are due under invoices submitted in accordance with this Agreement. At the time of final formal acceptance Company may retain
this amount as defects liability security (Gewährleistungssicherheit). Company will pay Contractor said amount retained - to the extent not used in accordance with this Agreement to remedy defects – (i) at the
expiration date of the defect liability period (Gewährleistungsfrist = Frist in der Mängelansprüche verjähren) or (ii) at the date of Contractor furnishing a defects liability bank guarantee
(Gewährleistungsbürschaft) issued by a German bank or savings bank. 
  

	10.2.	Performance Guarantee (Vertragserfüllungsbürgschaft) 

  
 The Contractor shall deliver to Company a performance
guarantee (Vertragserfüllungsbürgschaft) meeting the requirements of sec. 17 VOB/B and conforming to the sample attached as Exhibit 16 Performance Guarantee. The guarantee shall be issued by a German bank or savings
bank. The amount of this guarantee shall be [***]* of the gross remuneration. The guarantee shall secure

  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 35 

 
the execution of all and any obligations of Contractor under this Agreement as well as furnishing a defects liability guarantee. If the
performance guarantee has not been used, the Company shall return the performance guarantee after the date of final acceptance simultaneously (Zug-um-Zug) to the defects liability guarantee being furnished by Contractor. No
payment whatsoever shall be due prior to handing over such guarantee. 
  

	10.3.	Defects Liability Guarantee (Gewährleistungsbürgschaft) 

  
 If Contractor – after final acceptance – furnishes a
defects liability bank guarantee (Gewährleistungsbürgschaft) to release the amount retained under no. 10.1. of this Agreement, this guarantee shall conform to the sample attached as Exhibit 17 Defects Liability
Guarantee and meet the requirements of sec. 17 VOB/B. This defects liability bank guarantee shall – to the extent it has not been made use of in accordance with the provisions of this Agreement – be returned upon
expiry of the limitation period for defects liability as provided for in no. 9 of this Agreement. 
  
 The amount of this guarantee shall be [***]* of the gross remuneration (total of the gross remuneration under no. 3.1 of this Agreement).
However, Contractor has - upon expiry of the limitation period for the Works except for the part of the Works related to the roof the right to reduce this bank guarantee to [***]* (or the retention of no bank guarantee has been delivered) of the gross remuneration relating to the roof - by providing a bank guarantee of
[***]* relating to the gross remuneration with respect to the roof simultaneously (Zug-um-Zug) to
handing back the guarantee of [***]* of the gross remuneration (or the remainder thereof if of the bank
guarantee has (partly) been made use of). 
  

	10.4.	Assignment for Security Purposes 

  
 Contractor assigns for security purposes (tritt sicherungshalber ab) to Company all and any claims, including, but not limited to,
claims related to defects liability (Gewährleistungsansprüche which includes Mängelansprüche), performance (Erfüllungsansprüche), against any or all (einzelne oder alle) of its subcontractors
and other contractors, as architects engineers and the like, vendors and other persons or entities which Contractor employs for and related to fulfilling its duties under this Agreement. Company accepts this assignment.

  

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 36 

 
Company may only foreclose on this assignment to the respective subcontractor if the Contractor is – despite receipt of a written warning
notice explicitly notifying Contractor that not remedying the delay despite the notice will lead to such foreclosure to the rerspective subcontractor - in delay with duties under this Agreement. The Contractor is obliged, in its
name, to raise and enforce these claims assigned for security purposes until the relevant assignment is foreclosed on vis-á-vis the relevant person or entity (geltendmachen in eigenem Namen und für eigenes Recht).

  

	10.5	Security to be provided by Subcontractors 

  
 Contractor shall oblige its subcontractors to deliver security corresponding to that provided for in no. 10.2 and 10.3 and shall assign the rights
and claims for security purposes corresponding to no. 10.4. 
  

	11.	Copyrights (Urheberrechte) 

  

	11.1.	Confirmation 

  
 Contractor confirms that it holds all and any rights transferred to or made usable by Company under this Agreement and holds harmless
and indemnifies Company from any result or impact of Contractor not being, or not being unlimited, holder of these rights. 
  

	11.2.	Rights to Ideas and other intellectual Property 

  
 The Parties agree, confirm and acknowledge that, except for the copyright connected to the person developing an idea (the author)
(Urheberpersönlichkeitsrecht), all copyrights and any other intellectual property rights related to Fab X shall be transferred to Company.  
  
 Therefore, Contractor agrees that all writings, software, drawings, designs, copyrightable material, improvements,
developments, inventions and discoveries (collectively referred to as the “Ideas”) made conceived, developed, reproduced, produced or the like by Contractor (including Contractor ́s subcontractors unless the
respective subcontractor does not consent to such 

  

 37 

 
transfer even if Contractor uses best efforts to get the respective transfer, in which case Contractor shall inform Company for giving
Company the opportunity to take care of such transfer which Contractor shall support with all reasonable means) during the course of this Agreement and/or related to Fab X which relate in any manner to
Company ́s business and/or the Works to be executed, or which Contractor may become associated with while executing the Works, shall only be used and utilized by Company, and Contractor hereby transfers
to the Company all right, title and interest to use and utilize such Ideas. 
  
 Contractor agrees to assist Company in all and any proper way to enable Company to defend and enforce Company ́s aforementioned rights in and to such Ideas in any and all
countries and jurisdictions, including the disclosure to Company of all pertinent information and date with respect thereto, and the execution of all applications, specifications, oaths, assignments and all and any other instruments which are
reasonably necessary in order to apply for and obtain copyright protection, mask works registration and/or patents and in order to assign and convey to Company, Company ́s successors, assignees and nominees, sole and exclusive
rights, title and interest in and to such copyrights, mask works, inventions, patent applications and patens. 
  
 Contractor ́s obligation to execute (or cause to be executed) instruments or papers such as those described in the above paragraph shall
continue after completing all Works. If testimony or information related to any of the aforementioned matters or related to any intereference and/or litigation, including, but not limited to, any administrative procedures, is required by the
Company either prior to the completion of the Works or later on, Contractor agrees to give all information and testimony and do all things requested by Company that Contractor may lawfully do. 
  
 In the event the Company should not seek to obtain copyright
protection, mask work registration or patent protection or patent protection for any of said Ideas but should desire to keep the same secret, Contractor agrees to assist the Company in this and will not disclose any information
as to the same exept if, and if so to the extent, required by law or consented to in writing by the Company.  
  
 Contractor shall obtain the written agreement of all subcontractors that these subcontractors comply with this no 11.2 of this Agreement and
especially that – to the degree provided for in the second paragraph of this no. 11.2 – any transferable right relating to copyright and Ideas regarding Fab X is transferred 

  

 38 

 
to the Company. Contractor confirms that Contractor is able to transfer all such rights of third parties (including subcontractors) to
the Company and indemnifies and holds harmless from any impact of these rights not having been properly transferred to Company in accordance with this Agreement. 
  
 Contractor agrees to obtain Company’s
written approval prior to the inclusion of any third party intellectual property or pre-existing Contractor intellectual property, including, but not limited to, software and documentation, into any Works executed or product of
Works executed or items furnished by Contractor under this Agreement. Company may decline to give such approval at Company’s sole discretion. Contractor ensures that Contractor has the right to
include such third party intellectual property or pre-existing Contractor intellectual property in any Works executed and any products of Works executed and any items furnished by Contractor and that Company shall
have the right to use such third party intellectual property or pre-existing Contractor intellectual property in any Works executed or any products of Works executed and any items furnished by Contractor under this
Agreement to the same extent as Company may use such Works executed or product of Works executed or items furnished by Contractor pursuant to this Agreement. 
  
 Contractor ensures that the execution of Works and the
transferred exclusive rights to use the Ideas does not infringe any third party proprietary rights. 
  
 In the event Company’s use of the Ideas in accordance with the provisions of this Agreement becomes subject to
infringement proceedings initiated by a third party, Contractor, at Company’s option and in addition to Company’s other rights under the law, shall be obligated, irrespective of its culpable behaviour, to procure at
Contractor’s expense the right for Company to use the Ideas in accordance with the provisions of this Agreement. Company may set a reasonable period of time for Contractor to provide such remedy and in
case Contractor does not procure the right for Company to use the Ideas within the period set Company shall have the right to procure the right for Company to use the Ideas on Contractor’s
reasonable costs and to deduct the amount necessary for procuring the right for Company to use the Ideas from the remuneration Contractor is entitled to under this Agreement. 
  
 Upon Company’s request, Contractor shall, at
Contractor’s reasonable cost, either itself defend or settle or provide any reasonable support for Company to defend or settle any legal dispute which is brought against Company on account of the alleged infringement of a
third party proprietary right as a consequence of Company’s use of the Ideas in accordance with the provisions of this 
  

 39 

 
Agreement. Contractor shall reimburse Company any reasonable costs and reasonable expenses arising out of or in connection with such a
legal dispute and shall indemnify Company for any damages awarded against Company in such a legal dispute. 
  

	11.3.	Payment included in Lump Sum 

  
 The Parties agree, clarify and acknowledge that the remuneration for the transfer and the assignment of these Ideas and copyrights and the
aforementioned rights of Company is included in the lump sum remuneration provided for in no. 3.1. of this Agreement. 
  

	12.	Lender 

  
 The Parties acknowledge and confirm that Company has the right to transfer this Agreement or assign claims or rights thereunder.

  

	13.	Termination 

  

	13.1.	Termination Rights provided for in VOB/B 

  
 The Parties may terminate this Agreement in accordance with the provisions of VOB/B. 
  

	13.2.	Extraordinary Termination Right 

  
 In addition, Company shall have an extraordinary termination right if the co-operation agreement between the Free State of Saxony, Advanced Micro
Devices Inc. and M+W Zander Fünfte Verwaltungsgesellschaft mbH of November 20, 2003 (Kooperationsvertrag vom 20. November 2003) may be terminated under the termination rights provided for in the co-operation agreement or if the co-operation
agreement does not become valid until March 31, 2004. 
  

 40 

 In case of exercising such extraordinary termination right Contractor shall be entitled to the
remuneration agreed upon for Works executed (inclusive profit if profit was included in the remuneration due until the termination date), remuneration for commitments vis-à-vis third parties which Contractor made in the due course of
performing this Agreement but only if and to the extent Contractor proves that the respective commitment or the resulting remuneration can not be avoided or reduced. Contractor shall not be entitled to any profits relating to the works not executed.
Section 649 German Civil Code (BGB) shall not apply. 
  

	14.	Liability 

  

	14.1.	Contractor generally liable 

  
 The Contractor shall be liable for the execution of the Works and the compliance with all and any provisions of this Agreement.

  
 Contractor shall comply with all statutory, legal,
regulatory, accident insurance or other rules etc., e.g. dangerous goods regulations (Gefahrgutverordnung) and all environmental provisions which apply to this Agreement, the execution of the Works and the product
(Werkerfolg) to be completed. 
  
 Contractor shall
indemnify and hold harmless Company (including its representatives and employees) from and against all claims, damages, losses, expenses and the like arising from, or in connection with or related to this Agreement, the execution of
the Works and the product (Werkerfolg) to be completed. 
  
 Contractor shall be responsible for Contractor’s subcontractors and all and any conduct of Contractor’s subcontractors. Contractor’s subcontractors shall be persons or entities engaged by
Contractor for the fulfillment of Contractor’s obligations (Erfüllungsgehilfen des Contractors). 
  

	14.2.	Liability for Damages 

  
 The Parties explicitly acknowledge and clarify that this includes the obligation of Contractor to indemnify and hold harmless Advanced Micro
Devices Inc., AMD Saxony LLC & Co. KG, AMD Saxony LLC, AMD Saxony Holding 
  

 41 

 
GmbH and AMD Saxony Admin GmbH and the officers and employees of Advanced Micro Devices Inc., AMD Saxony LLC & Co. KG, AMD Saxony LLC, AMD Saxony Holding
GmbH and AMD Saxony Admin GmbH from and against all claims, damages, losses, expenses and the like arising from, or in connection with or related to, this Agreement or the execution of the Works regardless of whether Advanced Micro
Devices Inc., AMD Saxony LLC & Co. KG, AMD Saxony LLC, AMD Saxony Holding GmbH and AMD Saxony Admin GmbH have, because of such claims, damages, losses, expenses and like, claims against Contractor or not (and regardless whether these
claims, damages, losses, expenses and the like refer to Fab 30 or Fab X). Contractor shall - in accordance with other agreements - put Company, Advanced Micro Devices Inc., AMD Saxony LLC & Co. KG, AMD Saxony LLC, AMD
Saxony Holding GmbH and AMD Saxony Admin GmbH in the economic position in which they would have been without the detrimental impact of such conduct. Advanced Micro Devices Inc., AMD Saxony LLC & Co. KG, AMD Saxony LLC, AMD Saxony Holding GmbH
and AMD Saxony Admin GmbH shall have rights on their own under this no. 14 of this Agreement (echter Vertrag zu Gunsten Dritter). 
  
 The Parties clarify that this is not supposed to create a liability which is not dependent on Contractor’s culpable conduct
(verschuldensunabhängige Haftung) unless created outside this 14.2. 
  

	14.3.	Limitations on Liability 

  
 The overall liability of Contractor shall, as exception to 14.1, be subject to the following: 
  

	14.3.1.	If and to the extent damage occurs outside the Site as defined in Recital A and is not related to the execution of the Works under this Agreement and such
damage does not result from gross negligent or intentional conduct of Contractor the liability of Contractor for such damages shall be limited to the insurance coverage amounts provided for in no. 14.4 ([***]* per occurance and of [***]* per calendar). If the insurance company does not compensate the damage, Contractor shall in all cases be obliged to
compensate Company for the damage to the extent that Company receives in total up to a maximum of [***]*. If the insurance company had paid more than [***]* but refuses to pay due to
Contractor’s breach of the insurance contract Contractor shall pay to 

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 42 

 Company the entire amount Company would have received without such breach.
Contractor shall assist Company in all and any proper way to enable Company to be reimbursed in accordance to the first sentence of this no. 14.3.1. Contractor assigns to Company (and Company accepts this
assignment) all and any claims related to Company’s damages against third parties exceeding the amounts payable (by Contractor and/or insurance company) to Company under sentences 1-3 of this no. 14.3.1 and
Contractor shall assist Company in all and any proper way to enable Company to enforce such claims. 
  
 There shall be no limitation on Contractor’s liability for damages resulting from Contractor’s gross negligent or intentional
conduct. 
  

	14.3.2.	If and to the extent consequential damage, e.g. loss of profit, loss of production, loss of use, loss of interest, plant downtime costs, occurs and does not result from gross
negligent or intentional conduct the liability of Contractor shall be limited to [***]*. Contractor assigns to Company (and Company accepts this assignment) all and any claims related to Company’s damage against third parties exceeding the amounts payable
(by Contractor) to Company under the first sentence of this no. 14.3.2 and Contractor shall assist Company in all and any proper way to enable Company to enforce such claims. 

  
 There shall be no limitation on Contractor’s liability for
damages resulting from Contractor’s gross negligent or intentional conduct. 
  

	14.3.3.	The Parties clarify and confirm that the amount of damages Company shall be entitled to in case of delay shall be limited to a maximum of the potential maximum amount
of contractual penalties [***]*. The Parties clarify that such damage includes, but is not limited to damage
resulting from delays (Verzögerungs- und Verzugsschäden) including, but not limited to, all and any losses due to allowances not being granted (Verluste dadurch, daß Investitionszulagen nicht gewährt wurden).

  
 Contractor assigns to Company
(and Company accepts this assignment) all and any claims against third parties related to Company’s damage exceeding any amounts payable (by Contractor) to Company under sentences 1-2 of this no. 14.3.3 and
Contractor shall assist Company in all and any proper way to enable Company to enforce such claims. 

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 43 

 There shall be no limitation on Contractor’s liability for damages resulting from Contractor’s
gross negligent or intentional conduct. 
  

	14.4.	Insurance 

  
 Contractor shall conclude, and maintain during the entire term of this Agreement, a liability insurance (Haftpflichtversicherung
einschließlich Betriebshaftpflichtversicherung, Bauwesen- und Montageversicherung sowie Umwelthaftpflichtversicherung) of a coverage of not less than Euro 30,000,000.00 occurrence and of Euro 60,000,000.00 calendar year each. 

 
 This insurance shall also cover damages caused by persons or entities
engaged by Contractor for the fulfillment of Contractor’s obligations (Erfüllungsgehilfen des Contractors, e.g. employees, legal representatives or subcontractors). 
  
 Company shall be named as co-insured (zusätzlicher
Versicherter). 
  
 Contractor guarantees and confirms
that it will always - and in time – pay the premiums and other amounts to keep the said insurances valid and in force. Contractor shall oblige the insurance companies to notify Company in case Contractor does not meet
Contractor ́s obligations under the insurance policies and in case of changes with respect to the insurance policy. In this case Company shall have the right to pay the amounts due and to deduct these amounts from any payments to
be rendered to Contractor under, or connected to, this Agreement. 
  
 The Parties shall – on request of either Party – in good faith enter into negotiations with respect to mutually agreed reasonable amendments to the insurance contract. 
  

	14.5.	Nature of Company’s Approval 

  
 Notwithstanding any review, revision, comment or approval by Company of, or failure to review, revise, comment or approve, any of the Works
or any Design Document, other documents, specifications, drawings, data, information, sheets, letters, materials etc. of Fab X, Contractor shall remain solely responsible for all Works, the execution thereof and all
obligations under this Agreement. 
  

 44 

	14.6.	Contractor’s Responsibility for Construction Means 

  
 Contractor shall be solely and completely responsible for all construction means, methods, techniques, and procedures for providing adequate safety
precautions and coordinating all portions of the Works under the Agreement, including without limitation implementing an effective safety program as required by Exhibit 9 EHS Program. In no event shall the lack of
objection by Company to any action or inaction upon the part of Contractor, be construed to make Company in any manner whatsoever responsible, e.g. for Contractor ́s construction means, methods, techniques, or
procedures. 
  

	15.	Identification 

  
 Contractor shall meet the identification standards set by Company and all of Contractor’s officers or employees shall display
proper identification at all times while entering the Site or while on the Site. Moreover, Contractor shall impose the same obligations on Contractor’s subcontractors and on anybody involved in relation to the
execution of this Agreement. 
  

	16.	Liens (Rechte Dritter) 

  
 No item, material, component etc. used by Contractor in the course of executing the Works shall be subject to rights of third parties (e.g.
Eigentumsvorbehalt or Pfandrecht). 
  

	17.	Confidentiality 

  
 The Parties shall treat this Agreement and any details of the Agreement and the Works under the Agreement as well as all
details of Fab X and the operation of, and production within, Fab X and all information gathered in the course of executing this Agreement in confidence except to the extent necessary to carry out obligations under it or to
comply with applicable law. Moreover, Contractor shall impose the same obligations on Contractor’s subcontractors and on anybody involved in relation to the execution of this Agreement. 
  

 45 

 In addition, Contractor shall meet, and shall impose on all persons acting on
Contractor’s behalf the obligation to meet, the confidentiality requirements provided for in this Agreement. 
  
 The Parties clarify that the confidentiality standards relating to C 4 process or building related to C 4, of which Contractor is aware
shall be obeyed at any time. Contractor shall make all subcontractors to also meet these confidentiality standards. The Parties shall cooperate in good faith to comply with confidentiality standards of third parties related to C 4.

  
 The confidentiality obligations of Contractor shall
include, but not be limited to, the following: 
  

	 	a)	All communications and information obtained by Contractor from Company relating to this Agreement, and all information developed by Contractor under this
Agreement, are confidential (“Confidential Information”). Without the prior written consent of Company, Contractor shall neither divulge to, nor discuss with, any third party either Works executed hereunder, or
any Confidential Information in connection with such Works, except as required by law or, upon consultation with Company, necessary for the execution of this Agreement unless Company objects for good cause. Prior
to any disclosure of such matters, whether as required by law or otherwise, Contractor shall inform Company, in writing, of the nature and reasons for such disclosure. Contractor shall not use any Confidential Information
obtained from Company for any purpose other than the performance of this Agreement, without Company’s written prior consent. 

  

	 	b)	The foregoing obligations shall not apply to the extent that the Party which has received the Confidential Information can show that such Confidential
Information of the disclosing Party (i) was in the possession of the receiving party or known to it before receipt from the receiving Party, or (ii) has become generally known through no fault of the receiving Party, or
(iii) was legally disclosed to the receiving Party by another person without restriction, or (iv) was independently developed by the receiving Party, or (v) had to be revealed in accordance with statutory or administrative provisions,
or (vi) was revealed by the receiving Party after prior written consent of the disclosing Party which is deemed to be given to the extent reasonably necessary for financing. 

  

 46 

	 	c)	In the case of Contractor subcontracting in accordance with no. 5.1, Contractor may disclose to any subcontractor, or Company approved third parties, any
information otherwise subject to above (a) that is reasonably required for the performance of the subcontractor’s work. Prior to any such disclosure, Contractor shall obtain the respective subcontractor’s written agreement to the
requirements of above (a) and shall provide a copy of such agreement to Company. Disclosing information reasonably required for the performance of the subcontractors work to nominated subcontractors as listed in no. 5.1 shall be deemed to be
consented to by Company. 

  

	 	d)	Contractor agrees that it shall not publish or cause to be disseminated through any press release, public statement or marketing or selling effort any information which
relates to this Agreement without the prior written approval of Company. 

  

	 	e)	At the completion of the execution of the Works, Contractor shall return to Company all written materials constituting or incorporating any Confidential
Information obtained from Company. Upon Company’s specific approval, Contractor may retain copies of such materials, subject to the requirements of above Subsection a). 

  

	18.	Section 648 BGB not applicable 

  
 Section 648 German Civil Code (BGB) shall not be applicable. 
  

	19.	Law and Jurisdiction Miscellaneous 

  
 This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Germany except for the provisions
regarding conflict of laws (Internationales Privatrecht) and the CISG. 
  
 Any change or amendment of this Agreement shall be in writing. This also applies to an change or amendment of the clause that changes or amendments shall be in writing. 
  
 All notices to be given under or related to this Agreement shall be
in writing. 
  

 47 

 Contractor explicitly warrants that it has not directly or indirectly offered or given, and will
not offer or give, to any employee, agent, or representative of Company any cash or non-cash gratuity or payment with a view toward securing any business from Company or influencing such person with respect to the conditions or the
performance under any contracts (including this Agreement) with or order from Company, including without limitation this Agreement. 
  
 The Parties submit, with respect to any disputes arising in connection with this Agreement, to the exclusive jurisdiction of the courts
of Dresden, as far as legally permissible. 
  
 If a clause
of this Agreement is or becomes void, the other clauses of this Agreement shall not be affected by such invalidity. The Parties shall agree on a clause having the same or a similar economic effect as the void clause to achieve
the economic purpose of the void clause. 
  
 The Parties
clarify that (unless agreed otherwise in this Agreement) if and to the extent Exhibits are not prepared at the time of signing this Agreement or not finalized at the time of signing this Agreement the Parties shall in
good faith and in good time agree on the contents of such Exhibit not prepared or if an Exhibit is not finalized the Parties shall in good faith and in good time finalize the Exhibit. The validity of this Agreement shall not be
impacted by such missing or not finalized Exhibits. 
  
 If any
deviation between the English terms in this Agreement and the German terms or explanations to such English terms occur, the German terms or explanations shall prevail for the interpretation of this Agreement. 
  

	20.	Condition Subsequent 

  
 This Agreement is subject to the condition subsequent (auflösende Bedingung) that to the Co-operation Agreement between the Free State
of Saxony, Advanced Micro Devices Inc. and M+W Zander Fünfte Verwaltungsgesellschaft mbH of November 20, 2003 (Kooperationsvertrag vom 20. November 2003) is consented to by the supervisory board of Jenoptik AG and consented to by the
supervisory board of M+W Zander Holding AG by December 15, 2003. If such condition subsequent occurs (Eintritt der auflösenden Bedingung) the provisions under no. 9, 11, and 17 shall survive this Agreement and any claims by
Contractor (except for claims under the 
  

 48 

 letter of intent of May 16, 2003 as amended under the letters of August 13, 2003 and November 3, 2003) of
shall be governed by section 812 sq. (fortfolgende) German Civil Code (BGB). 
  

							
	Company	 	Contractor
				
	Dresden,	 	 /s/ Hans-Raimund Deppe

	 	Dresden,	 	 /s/ Helmut Laub

  

 49Cooperation Agreement dated November 20, 2005

 Exhibit 10.48 
  
 Redacted Version 
 Confidential Treatment Marked 
  
 Cooperation
Agreement 
 (hereinafter referred to as the “Agreement”) 
  
 between 
  

	1.	The Free State of Saxony, represented by the Saxon State Ministry of Finance and the Saxon State Ministry for Economic Affairs and Labor, represented by the Minister Dr.
Horst Metz and Undersecretary Mrs. Andrea Fischer 

  
 - hereinafter referred to as “Saxony” - 
  

	    	and 

  

	2.	Advanced Micro Devices, Inc., One AMD Place, Sunnyvale, CA 94088, USA 

  

- hereinafter referred to as “AMD” - 
  

	    	and 

  

	3.	M+W Zander Fünfte Verwaltungsgesellschaft mbH, Lotterbergstr. 30, 70499 Stuttgart, entered under HRB 23351 in the Commercial Register of the Stuttgart Local Court
(Amtsgericht) 

  
 - hereinafter referred to
“M+W” - 
  
 Saxony, AMD and M+W will each be hereinafter referred
to as a “Party” and together as the “Parties”. 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of the exhibit has been
filed separately with the Securities and Exchange Commission. 

 Contents 
  

					
	Preamble	  	 	  	3
	§ 1	  	Objectives	  	4
	§ 2	  	Formation of a Joint Undertaking	  	5
	§ 3	  	Evaluation of the Joint Undertaking	  	5
	§ 4	  	Capital Contribution; Holding Company	  	6
	§ 5	  	Financing	  	10
	§ 6	  	Grants and Allowances	  	12
	§ 7	  	Counter Guarantees	  	12
	§ 8	  	Accession of an Additional Industrial Partner	  	12
	§ 9	  	Research and Development	  	13
	§ 10	  	Agreement on Acceptance / Cost Plus Agreement	  	13
	§ 11	  	Service Agreements	  	14
	§ 12	  	Arbitrator	  	14
	§ 13	  	Non-Discrimination	  	15
	§ 14	  	Warranty by AMD	  	15
	§ 15	  	Liability	  	15
	§ 16	  	Interest	  	16
	§ 17	  	EU Reservation	  	16
	§ 18	  	Conditions Precedent	  	16
	§ 19	  	Duration and Termination	  	17
	§ 20	  	Confidentiality	  	18
	§ 21	  	Responsibility for Costs and Expenses	  	20
	§ 22	  	Press Release	  	20
	§ 23	  	Arbitration Agreement	  	20
	§ 24	  	Final Provisions	  	21

  

 2 

 PREAMBLE 
  
 The maintenance and development of Saxony as a center for microelectronics, in particular, of Dresden as a high-technology location, is a top priority political and
structural goal of Saxony, in order to maintain existing and secure new qualified jobs. AMD intends to build a new facility in Dresden for the production of 300mm silicon wafers on which integrated circuits, particularly for microprocessors, will be
manufactured (the “Wafers”). In addition to production, own research and development on a considerable scale to develop up to suitability for industrial production semiconductor manufacturing technology will be carried out at the
new facility. 
  
 In December 2002, AMD entered into an extensive agreement with
IBM for joint development (the Joint Development Agreement, hereinafter referred to as the “JDA”) of a technological basis for the production of chips for high-performance products of the future. The JDA encompasses cooperation on
the 65- and 45 nm technology generations with the possibility of even smaller sized structures. This groundwork will be carried out on the basis of the 300 mm Wafers. AMD intends to use the results of this groundwork under the JDA in a new wafer
production facility in particular for micro processors to be built in Dresden (hereinafter referred to as “Fab X”) with the support and participation of Saxony, to develop them to the industrial production stage and to manufacture
them. The manufacturing technology is intended to be adjusted, by continuous and rapid improvement, to the requirements of mass production and further developed in accordance with market requirements. The management consultancy Arthur D. Little
GmbH has on the instructions of Saxony examined and confirmed the technical and economic feasibility of Fab X in a report (hereinafter referred to as the “ADL Report”). 
  
 Fab X is intended to be built beside the existing Fab 30. The commencement of industrial
production is planned for 2006. The full capacity for the exclusive requirements of AMD is intended to be 13,000 Wafer outs per month. Buildings and clean room are designed for a capacity of 20,000 Wafer outs per month, which is to be used
[***]*. Up to approx. 1,035, and [***]* up to 1,400 -qualified new jobs are intended to be created in Fab X. Additional jobs at suppliers will also result. Saxony attaches particular importance on
the fact that the technological and financial basis of Fab X is secured as much as possible and will be further developed in Fab X and furthermore that its capital bears 

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 3 

 
reasonable interest (“stand alone”). A declaration of intent was entered into between Saxony and AMD on June 4, 2003, concerning the
cooperation. The said declaration of intent is attached as Appendix A to this Agreement, the purpose of which is to implement the declaration of intent. 
  
 Fab X is intended to be built and operated by a special purpose entity in the form of a German limited partnership. The Parties intend to
hold capital interests in such entity, and it is up to them whether they hold such interests directly or through separate holding companies, however, the contribution of Saxony and of M+W will partly be made in the form of a limited partner
participation, and partly in the form of a typical silent partner participation. In addition, M+W simultaneously enters into a general contractor’s agreement for the construction of the necessary building modules and infrastructure. The general
contractor’s agreement is attached as Appendix B hereto. 
  

	§ 1	Objectives 

  

	1.1	The Parties intend to cooperate as direct or indirect partners for the purpose of the construction and operation of Fab X as further set out in the draft limited partnership
agreement attached hereto as Appendix 1.1(a) (the “Limited Partnership Agreement”), and to create the financial bases for this. Besides, in accordance with the draft agreement attached hereto as Appendix
1.1(b) on the formation of a silent partnership (the “Silent Partnership Agreement”), Saxony and M+W will participate as typical silent partners in the joint undertaking (both agreements hereinafter together referred to as
the “Partnership Agreements”). With respect to the limited partner participations and the silent partner participations of Saxony and M+W, the purchase agreements which are attached in their draft versions as Appendix
1.1(c) and Appendix 1.1(d) will be executed. 

  

	1.2	The joint undertaking is to be provided within the framework of this Agreement with the tangible and intangible resources and personnel so that a stand-alone operation of Fab X is
ensured to the extent possible and financially reasonable. This also includes the License Agreement attached as Appendix 1.2. 

  

	1.3	The details of the project including the expected investment costs shall be in accordance with the project description attached hereto as Appendix 1.3.

  

 4 

	§ 2	Formation of a Joint Undertaking 

  

	2.1	AMD has formed a limited liability partnership Limited Liability Company & Co. KG for the realization of the project. 

  

	2.2	The joint undertaking will be conducted in the name of AMD Fab X Limited Liability Company & Co. KG (hereinafter referred to as “AMD Fab X”).

  

	2.3	Immediately upon taking effect of this Cooperation Agreement (see § 18), Saxony and M+W shall, in accordance with the Limited Partnership Agreement attached hereto as
Appendix 1.1(a), join AMD Fab X as limited partners with legal and economic effect as of the day on which they are both entered in the Commercial Register. The Parties agree to execute the Limited Partnership Agreement of Fab X and to
effect the registration in the Commercial Register immediately upon taking effect of this Cooperation Agreement. The Parties agree to sign the Silent Partnership Agreement attached hereto as Appendix 1.1(b) immediately upon taking
effect of this Cooperation Agreement. 

  

	2.4	The capital contributions of the Parties will amount to a total of € 905 million, as specified in more detail in Section 4. 

  

	2.5	AMD Fab X LLC will conduct the business of AMD Fab X as the general partner with sole power of management and representation. In addition to those mentioned in Section 2.3 above,
AMD Fab X Holding GmbH and AMD Fab X Admin GmbH shall be limited partners of AMD Fab X. The conduct of the operative business shall be the sole responsibility of the general partner AMD Fab X LLC, subject to the Limited Partnership Agreement. The
other general partner will be a German limited liability company [GmbH] whose shares will be held by Saxony or the Saxony Holding Company (“Second General Partner”); the Second General Partner shall have no power of management and
no power of representation and will participate neither in the assets nor in the results of AMD Fab X. 

  

	§ 3	ADL Report 

  

	    	 On the instructions of Saxony and on the basis of information and intended plans provided by AMD and AMD’s subsidiaries – in particular the business plan
provided, ADL has prepared the ADL Report on the economic and technological feasibility. For reasons of strict confidentiality, the ADL Report is not 

  

 5 

 
attached to this Agreement, but one copy each will be provided to Saxony as principal, AMD and M+W. Saxony will grant to AMD Fab X a right of co-use in the
ADL Report. The ADL Report is to be treated with the strictest confidentiality within the recipients’ organizations. AMD warrants that the information provided to ADL by AMD and AMD subsidiaries for the purpose of ADL preparing the expert
opinion was given to the best of their knowledge and belief and that the business plan was drawn up according to recognized commercial principles. If the forecasts do not come to pass and/or the plans are not achieved, even though the information
provided to ADL for the purpose of their preparing the report was correct and complete to AMD’s best knowledge and belief and even though the business plan was drawn up according to recognized commercial principles, this shall not affect the
reciprocal rights of the Parties. 
  

	§ 4	Capital Contributions, Holding Company 

  

	4.1.1	The parties undertake within the framework of their limited partner participation, to make the following capital contributions to AMD Fab X: 

  

	4.1.2	Limited Partners’ Capital Contributions I 

  

						
	 AMD subsidiaries
	  	Capital Contribution	  	€	3,232,000
			
	 Saxony or Holding Company
	  	Capital Contribution	  	€	1,105,000
			
	 M+W
	  	Capital Contribution	  	€	663,000
			
	 Total
	  	Limited Partners’ Capital Contributions I	  	€	5,000,000

  

	 	    	Of the Limited Partners’ Capital Contribution I initially a total of € 500,000, i.e. € 323,200 for the AMD subsidiaries and € 110,500 for Saxony, and €
66,300 for M+W, will be entered in the Commercial Register as the liability capital sums of those partners after taking effect of this Cooperation Agreement. The entry of the liability capital, which has been increased by € 4,500,000 up to
€ 5,000,000, will be caused simultaneously for all partners upon achievement of Saxony’s first milestone (LM I) according to the milestone regulation attached as Appendix 4.1.1. 

  

 6 

	 	    	The AMD subsidiaries have the right to increase prematurely the liability contribution to be made by them. The Limited Partners’ Capital Contribution I will become due at the
dates set out in Appendix 4.1.1. The second sentence of Section 4.1.3 shall also apply to the Limited Partners’ Capital Contributions I. 

  

	4.1.3	Limited Partners’ Capital Contributions II 

  

						
	AMD subsidiaries	  	Capital Contribution	  	€	581,768,000
			
	Saxony or Holding Company	  	Capital Contribution	  	€	118,895,000
			
	M+W	  	Capital Contribution	  	€	59,337,000
			
	Total	  	Limited Partners’ Capital Contributions II	  	€	760,000,000

  

	    	The Capital Contributions II shall become due at the dates set out in Appendix 4.1.1 and will be paid in the installments as specified therein in more detail. t
However, the Capital Contribution I and the first installment of Capital Contribution II by Saxony and by M+W will become due no earlier than at such date when transfer of title to the real estate as described in Appendix 4.2.2 of AMD
Saxony Limited Liability Company & Co. KG (“AMD Saxony”) to AMD Fab X has been effected or instead the title re-registration has been applied for and the entry of such re-registration merely only requires issuance of the
official record of changes by the municipal surveying authority and conveyance on the basis of such official record of changes. 

  

	4.2	Saxony and M+W agree to make the following typical silent partner capital contributions. 

  

						
	Saxony or Holding Company	  	Capital Contribution	  	€	80,000,000
			
	M+W	  	Capital Contribution	  	€	60,000,000
			
	Total	  	Typical silent partner capital contributions	  	€	140,000,000

  

 7 

	    	The silent partner capital contributions shall become due at the dates set out in Appendix 4.1.1 and will be paid in the installments as specified therein in more
detail. However, the first installment of each silent partner capital contribution will become due no earlier than at such date when transfer of title to the real estate as described in Appendix 4.2.2 of AMD Saxony Limited Liability
Company & Co. KG (“AMD Saxony”) to AMD Fab X has been effected or instead the title re-registration has been applied for and the entry of such re-registration merely only requires issuance of the official record of changes by
the municipal surveying authority and conveyance on the basis of such official record of changes. 

  

	    	All limited partners and silent partners shall have the right to waive the requirement that one or all of the specified requirements are satisfied before the Limited Partners’
Capital Contributions I or II or, insofar as applicable, their silent partner capital contributions become due by written notice to the respective other Parties / AMD Fab X. 

  

	4.3	The Parties may hold their limited partner and silent participations in AMD Fab X directly or indirectly through one or more companies (“Holding Companies”). Other
than the respective Party and M+W Zander Facility Engineering GmbH, no entities may hold an interest in the Holding Companies whose objects cover the development, manufacture, marketing or sale of semiconductor products (“Competing
Entities”). Entities of the AMD Group are not considered Competing Entities. Other than M+W Zander Facility Engineering GmbH no Competing Entities may hold a direct or indirect interest in M+W. In deviation from the preceding sentences 2
and 4, finance investors who are not themselves engaged in the design, development, manufacture, marketing or sale of semiconductors may hold direct or indirect interests in AMD Fab X (above all, through Holding Companies and M+W). In case of a
indirect participation, the respective Party must warrant that the Holding Company holding the limited partner share in AMD Fab X fulfils the obligations of the respective Party and/or Holding Company under this Agreement and under the attached
Partnership 

  

 8 

	    	Agreements. Conversely, the other Parties hereto will grant to such Holding Company such rights which would be due to the concerned Party in case of a direct participation. In
addition, concurrently with the execution of this Cooperation Agreement, AMD will issue the guarantees according to Appendix 4.3. 

  

	4.4	Insofar as any Party holds a direct or indirect share in a Competing Entity, such Party agrees to impose the same duties of confidentiality on the persons assigned by it to the
organs of the Competing Entity as provided in section 20. In case of an indirect participation, the above provision shall be applied correspondingly insofar as a Holding Company holds a direct or indirect share in a Competing Entity. Insofar as any
Party or Holding Company holds a direct or indirect majority share in a Competing Entity, the other Parties shall have the right to require from such Party or Holding Company the transfer of its shareholding in AMD Fab X, including any silent
partner participation, to them or to a third party (Call Option) in accordance with Article 10.8 of the Limited Partnership Agreement. In addition, Parties and Holding Companies with a direct or indirect interests in a Competing Entity are strictly
prohibited from disclosing to the Competing Entity technical information, including information regarding the technology to manufacture Wafers. M+W Zander Facility Engineering GmbH will assume an obligation which corresponds to the above provisions,
in accordance with Appendix 4.4. 

  

	4.5	The other Parties are aware that Saxony holds an indirect non-majority interest in Infineon Technologies SC 300 GmbH & Co. KG and that Saxony holds a non-majority interest in
the semi-conductor manufacturer ZMD AG. 

  

	4.6	The participation rights of the Holding Company used by Saxony for AMD Fab X will in each case be exercised in accordance with the decisions of Saxony. 

  

	4.7	Saxony guarantees to AMD that the Second General Partner exercises and has exercised no activity other than the assumption of the general partner position in AMD Fab X according to
the Limited Partnership Agreement. Saxony further guarantees to AMD that the Second General Partner will at all times be financially funded such that it is able to perform its liabilities; this does not include any liabilities incurred by the Second
General Partner by virtue of his position as personally liable partner of AMD Fab X. The aforesaid shall apply until any replacement of the Second General Partner as provided in Article 10a of the Limited Partnership Agreement.

  

 9 

	    	If the Second General Partner is replaced in accordance with Article 10 a of the Limited Partnership Agreement, AMD guarantees to Saxony that the Second General Partner exercises
and will exercise no activity other than the assumption of the general partner position in AMD Fab X according to the Limited Partnership Agreement as long as Saxony and M+W hold a - direct or indirect - interest in the Partnership. AMD further
guarantees to Saxony – from replacement of the Second General Partner according to Article 10a of the Limited Partnership Agreement onward and as long as Saxony and M+W hold a direct or indirect interest in the Partnership – that the
Second General Partner will at all times be financially funded such that it is able to perform its liabilities; this does not include any liabilities incurred by the Second General Partner by virtue of his position as personally liable partner of
AMD Fab X 

  

	§ 5	Financing 

  

	§ 5.1	The investment volume is EUR 2,407 million. The total financing for the years 2003 to 2007 is EUR [***]* million and shall consist of: 

  

	5.1.1	the Capital Contributions mentioned at Sections 4.1.1 and 4.2 

  

			
	 Capital Contribution AMD Subsidiaries
	  	EUR 585 million
	 Saxony Capital Contribution
	  	EUR 120 million + EUR 80 m
	 M+W Capital Contribution
	  	EUR 60 million + EUR 60 m
	 Total Capital Contribution
	  	EUR 905 million

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 10 

	5.1.2	own resources and working capital 

  

			
	 Revolving credit facility of AMD
	  	EUR [***]* million
	 Grants and allowances according to Section 6
	  	EUR 497 million1
	 Working capital
	  	EUR [***]* million
	 Total own resources and working capi*tal
	  	EUR [***]* million

  

	    	Since the investment allowances were calculated on the basis of the currently applicable legal situation and since it is unclear in what amount investment allowances can be paid
under the future regulation, AMD agrees that in the event this sum turns out to be lower than calculated they will fill the financing gap arising. The working capital will by supplemented in accordance with the AMD Fab X Cost Plus Reimbursement
Agreement mentioned in Section 10.2. 

  

	5.1.3	third party finance 

  

			
	 Bank loans less redemption (EUR 42 million)
	  	EUR 658 million
	 Total third party finance
	  	EUR 658 million

  

	5.2	The Parties are aware that the requirements of EU law may not be satisfied in time to cover the financing requirements of AMD Fab X. Because of this, it is possible that delays in
obtaining third party financing for the Fab X could arise. In this event, AMD undertakes to bridge any financial shortfalls occurring until March 31, 2004. If the decision of the EU should not be available by April 1, 2004, the Parties will consult
with each other regarding the continuation of the project. AMD shall then have the right to end the project. In such case, AMD agrees to pay back the capital contributions made by Saxony and M+W, if any. 

	1	Another investment allowance of EUR 46 million is expected to be paid in 2008. 

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 11 

	5.3	Apart from payment of their capital contributions and without affecting the provisions of Section 6, Saxony and M+W are not obliged to provide additional finance, even if the
capital of AMD Fab X is not sufficient for its requirements. 

  

	5.4	If the project is terminated by AMD prior to full payment of all contributions, AMD warrants to M+W that M+W’s liability shall be limited to [***]* of its paid-in contribution. Any difference amount shall be reimbursed by AMD to M+W. 

  

	§ 6	Grants and Allowances 

  

	    	Saxony supports investment grants in the maximum amount legally permissible out of the funds of the joint tasks project “Improvement of the Regional Economic Structure”
(GA) – “GA Means”. If the total amount of the investment grants from GA Means which have been promised in a legally binding way and the investment allowances granted in a legally binding way exceeds the total grant admissible pursuant
to the EU ruling, the investment allowances granted in a legally binding way are to be used first. 

  

	§ 7	Counter-Guarantees 

  

	    	In the event that AMD is not already liable to the lenders for the loans guaranteed by the federal government and Saxony, AMD will grant Saxony free of charge directly enforceable
counter-guarantees on first demand for all guaranteed bank credits provided by Saxony together with the federal government for AMD Fab X (with an aggregate credit amount of € 700 million). 

  

	§ 8	Accession of an Additional Industrial Partner 

  

	8.1	The Parties aim to admit an additional [***]* partner who will [***]* of
AMD Fab X, if possible will enter into obligations to [***]* and further, who is intended to become a partner
in AMD Fab X and to contribute capital, perhaps by way of a capital increase. Saxony and M+W will agree to the acceptance of an 

 * Confidential treatment has been
requested for portions of this exhibit. 
  

 12 

	    	[***]* partner proposed by AMD on the
basis of the Limited Partnership Agreement of AMD Fab X, their respective approval not to be withheld or delayed without good cause. 

  

	8.2	Such partner shall be accepted on appropriate conditions. If amendments or adjustments to this Agreement or the Partnership Agreements of AMD Fab X or other contractual agreement
become necessary, the Parties will endeavor to agree on a mutually acceptable provision. Saxony and M+W will refuse their agreement thereto only if their interests are materially adversely affected. 

  

	§ 9	Research and Development 

  

	9.1	AMD aims to develop in the Fab X the 65 nm technology generation up to industrial production stage. The milestones for Saxony stated in Appendix 4.1.1 set forth the
aimed-at time schedule up to production stage. 

  

	9.2	AMD Fab X also is to further develop the 65 nm technology generation and to prepare for implementation of the following technology generations also through its own development.

  

	9.3	Research in Fab X is to take place in the areas indicated in Appendix 9.3. 

  

	§ 10	Agreement on Acceptance/AMD Fab X Cost Plus Reimbursement Agreement 

  

	10.1	AMD undertakes to take the entire production of AMD Fab X (in warmed-up operation up to 13,000 Wafer outs per month). 

  

	10.2	The details of the acceptance obligation and the terms thereof arise from the AMD Fab X Cost Plus Reimbursement Agreement attached in the draft version as Appendix
10.2. 

  

 13 

	§ 11	Service Agreements  

  

	11.1	AMD shall ensure that AMD Saxony shall make available to AMD Fab X general administrative services (for example IT, personnel administration, administrative services of a commercial
nature) if required at competitive terms (at arms’ length). In other respects AMD Fab X shall set up the required resources itself or obtain them from third parties. 

  

	11.2	In relation to the services required by AMD Fab X from today’s perspective, AMD Fab X, AMD, AMD Fab X Holding GmbH and AMD Saxony will enter into the Fab X Management Services
Agreement which is attached hereto as Appendix 11.2. AMD will be jointly and severally liable for the obligations of AMD Saxony under the agreement. 

  

	§ 12	Arbitrator  

  

	    	If and insofar as the Parties are unable to agree on the achievement of the milestones (see Appendix 4.1.1) and on the requirements stated in Section 14.1, the Parties
will make efforts to immediately agree on an arbitrator and will instruct such arbitrator in the name of all the Parties for him to determine the disputed issues with final and binding effect on the Parties within the framework of the positions
taken by the Parties. The Parties shall be given reasonable opportunity to expound their positions in writing and at one or more hearings before the arbitrator. The arbitrator shall state grounds for his decision. In his decision the arbitrator
shall also decide on the division of the costs of the arbitration procedure based on who won and who lost the dispute (§§ 91 et seqq. ZPO – German Code of Civil Procedure), provided that each Party shall itself be responsible for the
costs of its own advisors. The facts determined by the arbitrator shall have final and binding effect on the Parties. If the Parties are unable to agree on an arbitrator within 10 bank working days, then at the request of any Party the President of
the Higher Regional Court of Dresden will appoint an expert or a consulting firm as arbitrator, such appointment having binding effect on the Parties. Such person or consulting firm shall not have, and within the past five (5) years shall not have
had, business relations with any of the Parties. 

  

 14 

	§ 13	Non-Discrimination  

  

	13.1	AMD undertakes not to discriminate unreasonably against Fab X in favour of comparable factories. 

  

	13.2	Strategic decisions in relation to Fab X, and which concern the Dresden location, will not be taken against the wishes of Saxony, in accordance with the provisions concerning voting
rights in the Limited Partnership Agreement of AMD Fab X. 

  

	§ 14	Warranty by AMD 

  

	14.1	AMD warrants irrespective of fault, by way of an independent guarantee, in accordance with § 311 ss. 1 Civil Code, 

  

	    	that the provision for Fab X, in the event that this is technologically feasible, will be supplemented up to the point at which suitability for industrial production (=
“Technical Completion” as defined in the Summary of Terms and Conditions regarding the grant of the bank loan to Fab X in the amount of € 700 million) has been achieved. 

  

	14.2	In the event of the breach of warranty, the other Parties are initially each entitled and obliged to demand that AMD provide proper performance within a reasonable period. These
rights cannot be enforced if the other Party has committed a material breach of contract. 

  

	14.3	The availability of the results of the JDA to Fab X for the production of AMD products will be regulated by way of conclusion of the license agreement according to Appendix
1.2. 

  

	§ 15	Liability 

  

	15.1	Unless otherwise provided in this Agreement, the Parties are liable only in the case of intent and gross negligence. 

  

	15.2	There shall be no liability on the part of Saxony on the basis of the draft agreements submitted according to Section 20.5 or under § 839 Civil Code and Art. 34 of the
Constitution, due to a breach of the confidentiality in connection with the political decision-making. Damage claims of any kind whatsoever, including, but not limited to, claims under § 839 Civil Code and Art. 34 of the Constitution,

  

 15 

	    	shall not exist in this respect. The waiver of claims for damages, in particular in relation to § 839 Civil Code, shall be deemed to be a contractual obligation for the benefit
of third parties. Technical data and technical details shall be protected comprehensively. In this respect, there shall be no restriction on liability according to sentence 1 above. 

  

	§ 16	Interest 

  

	    	All interest under this Agreement and the attached Partnership Agreements, shall be calculated pursuant to the 365/360 method. 

  

	§ 17	EU Reservation 

  

	    	The grant of the allowances envisioned in this Agreement (investment grants, investment allowances and guarantee) require the approval of the Commission of the European Union.

  

	§ 18	Conditions Precedent 

  

	18.1	With the exception of the provisions of Sections 5.2, 18, 20, 21, 22, 23, and 24 which become effective upon the signature of this Agreement, this Agreement is subject to the
following conditions precedent: 

  

	18.1.1	announcement of exemption or clearance by the Federal Cartel Office, or expiry of the relevant waiting periods, 

  

	18.1.2	evidence of the granting of the EU approval of the subsidies according to Section 5; 

  

	18.1.3	consent of the competent bodies of the federal government to the federal/state guarantee securing the bank loans for Fab X; 

  

	18.1.4	consent and/or noting with approval, by the Budget and Finance Committee of Saxony, 

  

	18.1.5	provision of the overall financing, in which connection the Syndicated Loan Agreement with Dresdner Bank/Dresdner Kleinwort Wasserstein or another replacement arranger/underwriter
may include customary conditions to disbursement 

  

 16 

	    	including, but not limited to the grant of the federal/state guarantee and evidence of the granting of the EU approval of the subsidies according to Section 5;

  

	18.1.6	legal opinion of the law office O’Melveny & Myers LLP confirming that AMD Fab X is a “wholly-owned subsidiary” in the sense of the JDA. 

 

	18.1.7	signing of the General Contractor Contract with M+W Zander Facility Engineering GmbH; and 

  

	18.1.8	the approval of the supervisory boards of Jenoptik AG and of M+W Zander Holding AG by December 15, 2003. 

  

	18.2	If the conditions set out in Sections 18.1.2 and 18.1.5 are not satisfied in whole or in part, AMD is entitled, but not obligated, to take over such portion of the financing which
is missing as a result thereof. In this event, the relevant condition shall be deemed to be satisfied. If the conditions stated in Section 18.1 have not been satisfied by December 31, 2004, even in consideration of Section 18.2, any later occurrence
of the conditions shall be excluded.  

  

	§ 19	Duration and Termination 

  

	19.1	This Agreement is effected for an indefinite period of time, but at least until December 31, 2015. 

  

	19.2	If the project is ended in accordance with Section 5.2, AMD shall have the right to terminate this Cooperation Agreement. 

  

	19.3	If any Party is behind schedule with the performance of a material obligation under this Agreement, performance of the relevant obligation may be demanded by one of the other
Parties in writing provided such Party has substantially performed its respective obligations and undertakings under this Agreement and the Appendices. If the obligation is not performed within 30 calendar days thereafter, the said other Party may
terminate this Agreement by notice in writing. If the principal obligation in respect of which the contracting party is in default is also an obligation pursuant to the Limited Partnership Agreement, only the provisions of the Limited Partnership
Agreement shall apply. 

  

 17 

	19.4	The right of termination of this Agreement for good cause shall remain unaffected. 

  

	19.5	A termination notice is effective only if, with effect as of the same time, the Limited Partnership Agreement and the Silent Partnership Agreement of AMD Fab X is effectively
terminated. 

  

	19.6	The rights and duties of any Party under this Agreement, except for Sections 20 and 23, shall end once such Party or its holding entity has validly withdrawn as partner (i.e. both
as limited and as silent partner) of AMD Fab X. 

  

	19.7	This Agreement shall terminate, except for Sections 20 and 23, without a notice of termination being required, upon the full withdrawal of Saxony and of M+W as direct or indirect
partners (i.e. both as limited and as silent partners) of AMD Fab X. 

  

	§ 20	Confidentiality 

  

	20.1	Each Party is obliged, in relation to all confidential information, of which it becomes aware in the preliminary stages of the negotiations and presentations involved in the
execution of this Agreement and/or in its capacity as a Party to this Agreement and/or to the agreements which are attached hereto as appendices, to maintain confidentiality vis-à-vis third parties. Each Party is obliged to use such
information only for the purpose for which it has received same. The Parties undertake to subject their employees, representatives, shareholders and lenders to confidentiality to the usual extent. Each Party shall permit access to such information
by its employees, agents, lenders and advisors only if and to the extent that they require such information for the performance of this Agreement and are subject to corresponding confidentiality obligations. Each Party may communicate confidential
information to members of the legal, accountancy or taxation professions which are subject to professional confidentiality obligations, if and to the extent this is necessary in their own legitimate interests. The communication of confidential
information to the Banks financing AMD Fab X/the capital contributions of the AMD Fab X partners, to the guarantors guarantying for the bank loans or to the European Union is permissible and must be subject to the corresponding confidentiality
obligations (in the case of the EU: insofar as legally required). Further exceptions to the confidentiality obligation may be permitted in individual cases by separate agreements. 

  

 18 

	    	Notwithstanding any of the above or below provisions in this Agreement or in any other written or oral agreement made between the Parties or by which the Parties are bound, each
Party shall be entitled to disclose the U.S. income tax treatment and the U.S. income tax structure of this Agreement and of the agreements related herewith. This right to disclose includes the right of each Party to involve without any limitation
tax consultants regarding the U.S. income tax treatment and the U.S. income tax structure of this transaction and of the agreements related therewith. This right does not include the disclosure of any other information, including but not limited to,
(i) any part of documents not relating to the U.S. income tax treatment and the U.S. income tax structure of the transactions as set out in this Agreement or the agreements related herewith; (ii) the identity of participants or potential
participants in the transaction, except to the extent that such information relates to the U.S. income tax treatment and the U.S. income tax structure of the transaction as set out in this Agreement or in the agreements related herewith; (iii) the
existence or status of negotiations; (iv) any financial information other than the financial information relating to the U.S. income tax treatment and the U.S. income tax structure of the transactions as set out in this Agreement or in the
agreements related herewith; or (v) any other condition or detail which is of no importance with respect to the U.S. income tax treatment or the U.S. income tax structure of the transactions as set out in this Agreement or in the agreements related
herewith. The partners acknowledge that this confirmed right shall not be deemed to be a waiver by any Party of any of their particular rights under the attorney-client privilege or the non-disclosure privilege under Section 7525(a) of the United
States Internal Revenue Code 1986, as amended. 

  

	20.2	This obligation shall extend beyond the ending of this Agreement, provided that the obligations of confidentiality as agreed in any Appendix remain unaffected.

  

	20.3	This obligation does not apply to information which is generally known, or information demonstrably independently worked out by the receiving Party, or information demonstrably
obtained legally from third parties without any breach of the confidentiality obligation. 

  

 19 

	20.4	This obligation shall also not apply insofar as the Parties are obliged to disclose the received information under statutory provisions or official orders. In such event the
affected Party is obligated immediately to inform the other Parties of the official order or the application of a statutory provision, as applicable, if possible in advance. 

  

	20.5	The Parties note that Saxony must present the draft agreements in Saxon ministries, the cabinet of Saxony and the parliament of Saxony, in the course of the political
decision-making process. Technical data and technical details are to be comprehensively protected. 

  

	§ 21	Responsibility for costs and expenses 

  

	    	AMD shall bear its costs and the reasonable cost of the involvement of external advisors of Saxony and the Saxony Holding Company. These include, in particular, the costs and
expenses associated with the report of ADL and the legal advice of Saxony and the Saxony Holding Company by Rechtsanwälte Clifford Chance Pünder, in connection with this Cooperation Agreement for the period from June 4, 2003 until signing
of this Cooperation Agreement. In addition, from the date of signing of this Cooperation Agreement until December 31, 2003 the amount of [***]* will be borne for expenses and costs of Saxony and/or the Saxony Holding Company. 

  

	§ 22	Press Release  

  

	    	The Parties will publish a joint press release, which is reached in mutual agreement between them, concerning this project at a date also to be agreed upon between them. In
addition, the parties undertake not to publish any further notice concerning the project unless required by law or by applicable stock exchange regulations, such as, for example, ad-hoc publication or the notice is agreed between the parties.

  

	§ 23	Arbitration Agreement 

  

	23.1	All disputes arising out of or in connection with this Agreement or regarding its validity shall be conclusively decided in accordance with the Rules of Arbitration

	*	Confidential treatment has been requested for portions of this exhibit. 

  

 20 

	    	of the Deutsche Institution für Schiedsgerichtsbarkeit e.V. (DIS) ousting the jurisdiction of the courts of law. 

  

	23.2	The place of the arbitration proceeding shall be Dresden. 

  

	23.3	The number of arbitrators shall be three. 

  

	23.4	German substantive law shall apply. 

  

	23.5	The arbitration proceeding shall be conducted in German. 

  

	§ 24	Final Provisions 

  

	24.1	This Agreement (including its appendices) contains all agreements between the Parties and replaces all agreements previously reached between the Parties concerning its subject
matter. There are no oral side agreements. In the event of any conflict or inconsistency between this Cooperation Agreement and an agreement which is attached hereto, the provision in such latter agreement shall fully supersede the corresponding
previous provisions of this Cooperation Agreement. 

  

	24.2	Unless notarized form is prescribed, all amendments, additions and rescission of this Agreement require written form in order to be effective. This applies also to waiver of written
form. 

  

	24.3	No Party may transfer rights under this Agreement to a third party without the prior written consent of the other Parties. This does not apply to cases expressly provided for in
this Agreement. 

  

	24.4	If any provision of this Agreement is or becomes partially or wholly invalid or unenforceable or if this Agreement does not contain a per se necessary provision, the validity of the
remaining provisions of this Agreement shall not thereby be affected. The same applies if an omission in this Agreement is ascertained. In the place of the invalid or unenforceable provision or for filling in the omission of a provision, such a
legally admissible provision shall be deemed to have been agreed as corresponds to what the Parties would have intended or which would have been agreed by the Parties according to the meaning and purpose of this Agreement, if they had been aware of
the invalidity or unenforceability of the relevant provision or of the omission. 

  

 21 

 Place, Date: Dresden, November 20, 2003 
  

			
	 /s/ Robert J. Rivet

	 	 /s/ Horst Metz    /s/ Andrea Fischer

	(Advanced Micro Devices, Inc.)	 	(Saxony)
		
	 /s/ Juergen Giessmann    /s/ Helmut Laub

	 	 
	(M+W Zander Fünfte Verwaltungsgesellschaft mbH)	 	 

  

 22

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