Document:

Exhibit 10.1
                          REAL ESTATE PURCHASE CONTRACT

                                                                   June 28, 2002

         I, or we,  hereby  agree  to  purchase  the  following  described  real
property, to-wit:

Lots ________________________ Block ___________________________________ Addition
to _________________________________________ known as __________________________
[See Exhibit A to Sales Contract,  plus +/- 2400 sq ft on "A"] together with all
the improvements  thereon and the appurtenances,  if any,  thereunto  belonging,
including leasehold - none of the mineral rights, and subject to existing zoning
ordinances, restrictions and easements.

         We agree to pay, for said real property,  the sum of Two Hundred Eleven
Thousand dollars and NO/100 Dollars  ($211,000.00),  payable as follows: The sum
of $211,000.00 (at closing) which is herewith deposited with N/A. Agent as agent
____,  receipt of which is hereby  acknowledged,  to be applied on the  purchase
price  and the  further  sum of $N/A  subject  to  adjustments,  at the  time of
closing, and the balance, if any, as follows: __________________.

         The seller,  within N/A days from the acceptance hereof,  shall furnish
an abstract of title to said real property to the buyer,  extended to this date,
showing a good  title,  in the seller,  according  to the  standards  adopted by
Oklahoma Bar Association,  free and clear of all liens and encumbrances,  except
as  hereinabove  provided.  The  buyer to have  Thirty  days to have  the  title
examined  and furnish  any  objections  in writing to the  seller,  or his agent
herein,  and the seller  shall have,  not to exceed  Thirty days from the notice
thereof  to correct  such  defects,  unless  such time is  further  extended  by
agreement in writing.

         In case such  defects in the title  cannot be so  corrected  within the
time  specified,  this  contract  shall  become  null and  void and the  deposit
returned forthwith, unless the buyer elects to waive such objections.

         This title shall be conveyed by Warranty  Deed and the Seller shall pay
all General  Taxes and Special  Assessments  to the calendar  year.  All General
Taxes and Special Assessment liens payable during the calendar year of N/A shall
be pro-rated on the basis of said  calendar year between buyer and seller at the
time of closing.  If the amount of the General Taxes cannot be ascertained  such
pro-ration shall be on the basis of the taxes paid for the proceeding year.

         Rents, interest,  insurance,  water, gas, and electric bills, apartment
expenses  and  salaries,  if any,  are to be  adjusted to date of closing on the
basis of thirty  days to the  month,  the  seller  to have the last  day.  Rents
delinquent  more than thirty days, are to be collected by the seller and are not
to be adjusted.

         The seller agrees to deliver the property and the  improvement  thereon
in their present condition, ordinary wear and tear excepted.

         This sale is to be closed on or before June 30,  2002,  unless the time
of closing is extended by written agreement,  and actual possession of said real
property will be given on closing date.

<PAGE>

         If the buyer  wrongfully  refuses to close,  the earnest money is to be
forfeited as  liquidated  damages to the seller;  one half paid  retained by the
Agent to apply on his  professional  services,  and one half paid to the seller,
but the seller may at his option seek specific performance.

         If the  seller's  title  fails,  and  cannot  be  perfected  as  herein
provided, the seller shall be liable for the Agent's commission.

         This is the entire  contract  between the parties,  when accepted,  and
neither party shall be bound by any verbal representation  altering the terms of
this offer and agreement.

         The foregoing  offer is made subject to acceptance in writing hereon by
the  seller  within  Ten days from and after  this  date,  and the  return of an
executed  copy to the  undersigned.  If not so accepted the said  deposits to be
returned to the Buyer.

         Time  is the  essence  of this  contract  and is so  considered  by the
Parties.

         This   contract   shall  be   binding   upon  the   heirs,   executors,
administrators,  successors  and assigns of the parties  hereto.  This contract,
when accepted, may be assigned.

         This is a legally binding contract.  If not understood,  seek competent
advice.

                                                  Pro To Management, Inc., Buyer
                                                  [illegible]       , Byer

         Received the sum of $_______, to be held and applied in accordance with
the terms  and  conditions  of the  foregoing  offer.  Dated  this  _____ day of
______________, 20___.  ______________________________ By ______________________
..

         I, or we,  accept  the  foregoing  offer  and  agree to sell the  above
described real property on the terms and conditions herein stated,  and agree to
pay the above Agent the regular commission of N/A.

         Dated this 28th day of June, 2002.

                                             Great Midwest Life Ins. Co., Seller
                                         /s/ Charles L. Smith, President, Seller
                                         ---------------------------------------

<PAGE>

                           EXHIBIT A to sales contract

A part of The Northern 100' wide strip of the following  described land; A tract
of land in the  Northwest  Quarter  (NW/4) of the  Northwest  Quarter  (NW/4) of
Section  SEVENTEEN (17),  Township ELEVEN (11) North,  Range TWO (2) West of the
Indian  Meridian,  Oklahoma County,  Oklahoma.  more  particularly  described as
follows:  Commencing  at a point  695.76  feet East and 33196  feet South of the
Northwest Corner of the NW/4 of said Quarter  Section:  Thence East and parallel
with the North line 321.29 feet to a point;  thence South and parallel  with the
West line of said Quarter Section 299 feet to a point;  thence West and parallel
with the North line of said Quarter Section 298.96 feet to the point or place of
beginning  as shown on an  unrecorded  plat of the S/2 of Lots TWO (2) and THREE
(3), block THREE (3), HOLLIDAY ACREAGE.

Further  described as an area  Commencing at the  Northeast  corner of the above
described tract of land and as described in Warranty Deed recorded in Book 6722,
page  1180:  Thence  S00  04'31" W,  along the West right of way line of Epperly
Drive and along the East line of said  Warranty  Deed, a distance of 35.20 feet;
Thence S89 14'06" W a distance of 100.57 feet to the point of beginning;  Thence
S00 45'54" E a  distance  of 60 feet;  Thence  S89 14'06" W a distance  of 40.00
feet;  Thence N00 45'54" W a distance of 60 feet; Thence N89 14'06" E a distance
of 40.00 feet to the point of beginning.  Containing  approximately  2400 square
feet, more or less.

<PAGE>

                                 QUIT CLAIM DEED
                            (Oklahoma Statutory Form)
                                   (Corporate)

KNOW ALL MEN BY TH`ESE PRESENTS:

         That GREAT MIDWEST LIFE INSURANCE COMPANY, a corporation,  Party of the
First  Part,  in  consideration  of the sum of TEN  DOLLARS and NO/100 and other
valuable   consideration,   in  hand  paid,  the  receipt  of  which  is  hereby
acknowledged, does hereby quitclaim, grant, bargain, sell and convey unto PRO TO
MANAGEMENT, INC. party of the Second Part, the following described real property
and premises situate in OKLAHOMA County, State of OKLAHOMA,  to-wit:  (metes and
bounds description)

         A part of The Northern 100' wide strip of the following described land:
A tract of land in the Northwest  Quarter (NW/4) of the Northwest Quarter (NW/4)
of Section SEVENTEEN (17), Township ELEVEN (11) North, Range TWO (2) West of the
Indian  Meridian,  Oklahoma County,  Oklahoma,  more  particularly  described as
follows:  Commencing  at a point  695.76  feet East and 331.96 feet South of the
Northwest Corner of the NW/4 of said Quarter  Section:  Thence East and parallel
with the North line 321.29 feet to a point;  thence South and parallel  with the
West line of said Quarter Section 299 feet to a point;  thence West and parallel
with the North line of said Quarter Section 298.96 feet to the point or place of
beginning  as shown on an  unrecorded  plat of the S/2 of Lots TWO (2) and THREE
(3), Block THREE (3), HOLLIDAY ACREAGE.

Further  described as an area  Commencing at the  Northeast  corner of the above
described tract of land and as described in Warranty Deed recorded in Book 6722,
page  1180:  Thence  S00  04'31" W,  along the West right of way line of Epperly
Drive and along the East line of said  Warranty  Deed, a distance of 35.20 feet;
Thence S89 14'06" W a distance of 100.57 feet to the point of beginning;  Thence
S00 45'54" E a  distance  of 60 feet;  Thence  S89 14'06" W a distance  of 40.00
feet;  Thence N00 45'54" W a distance of 60 feet; Thence N89 14'06" E a distance
of 40.00 feet to the point of beginning.  Containing  approximately  2400 square
feet, more or less. (See Exhibit "A" and "B" for further premises description)

together with all and singular the  hereditaments  and  appurtenances  thereunto
belonging

         TO HAVE AND TO HOLD the above described premises unto the said party of
the second part, and to the heirs and assigns forever.

         Signed and delivered this 28th day of June, 2002

                                             BY:    /s/ Charles L. Smith
                                                  ------------------------------
                                             its  President.
                                                  --------------------

<PAGE>

                               ABSOLUTE ASSIGNMENT

                      GREAT MIDWEST LIFE INSURANCE COMPANY
                      ------------------------------------

                                       TO

                             PRO TO MANAGEMENT, INC.
                             -----------------------

         The undersigned,  for good and valuable consideration,  the receipt and
sufficiency of which is hereby acknowledged, does hereby absolutely Grant, Sell,
Assign,  Set Over,  Transfer and Convey all of its right,  title and interest in
the  Communications  Site Lease  Agreement,  Site # 0K3215 A (Twin  Hills)  (the
"Lease"),  which is  attached  hereto  as  "Exhibit  A" and made a part  hereof,
between  Nextel West Corp.  d/b/a  Nextel  Communications  ("Lessee")  and Great
Midwest Life  Insurance  Company  ("Lessor") to Pro To  Management,  Inc.,  (the
"Assignee").

Pro To Management and Great Midwest Life Insurance  Company agree to provide any
notifications necessary to Nextel West Corp. upon receipt of funds due under the
sales contract executed between the parties.

The undersigned  represents and warrants that it has lawfully  entered into this
Contract,  has fully  complied with, and will continue to fully comply with, all
of the terms and  conditions of the Lease it has  transferred  to Assignee,  and
that  consideration  for  which  has been  received.  Further,  the  undersigned
represents  and warrants  that no event has occurred  which may,  might or could
create a defect in its right,  title and/or  interest in said  contract or lease
held  therein,  and hereby  covenants  with the  Assignee  to defend any threat,
demand or other denigration which may arise in connection therewith.

IN WITNESS  WHEREOF,  the undersigned has affixed its hand and/or seal this 28th
day of June 2002.

Great Midwest Life Insurance Company

/s/ Charles L. Smith
------------------------
Charles Smith, President<PAGE>

                                                             Exhibit 10.43 (a-4)

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

                            AMENDMENT AGREEMENT NO. 4

                                      dated
                                  June 3, 2002

                                  by and among

                          AMD SAXONY MANUFACTURING GMBH

                                       and

                                DRESDNER BANK AG

                                       and

                                    the other
                        BANKS and FINANCIAL INSTITUTIONS
                                  named herein

                                       and

                          DRESDNER BANK LUXEMBOURG S.A.

                             -----------------------

                                     TO THE

                            SYNDICATED LOAN AGREEMENT

                                      dated

                           11 March 1997 (As Amended)

                          AND OTHER OPERATIVE DOCUMENTS

                             -----------------------

<PAGE>

                                     INDEX

                                                                           Page

          Preamble ........................................................   1

ss. 1     Definitions .....................................................   2

ss. 2     Conversion to a Limited Partnership .............................   4

ss. 3     Amendment of the Loan Agreement .................................   4

ss. 4     Condition Precedent .............................................   5

ss. 5     Covenants .......................................................   7

ss. 6     Representations and Warranties ..................................   8

ss. 7     Miscellaneous ...................................................  10

<PAGE>

Schedules

Schedule 1       The Amended and Restated Syndicated Loan Agreement
Schedule 2       Amendment Agreement to Sponsors' Support Agreement
Schedule 3       Amendment Agreement to the AMD Saxonia Wafer Purchase Agreement
Schedule 4       Consent/Acknowledgement under the AMD Holding Wafer Purchase
                 Agreement
Schedule 5       Amendment Agreement to Sponsors' Subordination Agreement
Schedule 6       Amendment Agreement to AMD Inc. Subordination Agreement
Schedule 7       Amendment Agreement to Revolving Loan Facility Agreement
Schedule 8       Amendment Agreement to Sponsors' Loan Agreement
Schedule 9       Amendment Agreement to AMD Saxonia Assignment (U.S.A)
Schedule 10      Clarification and Security Agreement
Schedule 11      AMD Inc. Pledge Agreement over Membership Interests in AMD
                 Saxony LLC
Schedule 12      AMD Saxony LLC Security Agreement
Schedule 13      AMD Saxony LLC Pledge Agreement over KG Partnership Interest in
                 AMD Saxonia
Schedule 14      AMD Holding Pledge Agreement over GmbH-share in AMD Admin
Schedule 15      AMD Admin Global Assignment Agreement
Schedule 16      AMD Admin Pledge Agreement over KG Partnership Interest in AMD
                 Saxonia
Schedule 17      AMD Admin Pledge of Bank Accounts
Schedule 18      AMD Holding Pledge Agreement over KG Partnership Interest in
                 AMD Saxonia
Schedule 19      Legal Opinion of O'Melveny & Myers LLP (U.S.A.)
Schedule 20      Legal Opinion of Norr, Stiefenhofer & Lutz
Schedule 21      Legal Opinion of Baker & McKenzie
Schedule 22      Legal Opinion of White & Case, Feddersen
Schedule 23      Fairness Opinion from Ernst & Young relating to Management Plan

<PAGE>

              AMENDMENT AGREEMENT TO THE SYNDICATED LOAN AGREEMENT
                        DATED 11 MARCH 1997 (AS AMENDED)

                                 by and between

1.   AMD SAXONY MANUFACTURING GMBH, Dresden, registered in the Commercial
     Register of the Dresden Local Court under HRB 13186 (presumably to be known
     as "AMD Saxony LLC & Co. KG" following the Registration), - hereinafter
     referred to as "AMD Saxonia" -

2.         DRESDNER BANK AG,

                                 - hereinafter referred to as "Security Agent" -

3.   the other Banks and Financial Institutions named on the signature pages
     herein
            - the parties referred to at 3 and 4 hereinafter each referred to as
                       a "Bank" or together as the "Banks", as the case may be -

and

4.   DRESDNER BANK LUXEMBOURG S.A.
                                         - hereinafter referred to as "Agent" or
                                            "Paying Agent", as the case may be -

                                    PREAMBLE

1.   AMD Saxonia, Dresdner Bank AG (in its capacity as Security Agent), the
     Banks and Dresdner Bank Luxembourg S.A. (in its capacity as Agent and
     Paying Agent) are party to the Loan Agreement (as defined below) with
     respect to loan facilities totalling DM 1,500,000,000 for the purpose of
     co-financing the Project Costs defined therein.

2.   Pursuant to the Conversion Documents, AMD Saxonia proposes to change its
     legal form to a Kommanditgesellschaft (a limited partnership organized
     under the laws of the Federal Republic of Germany), with AMD Saxony Holding
     GmbH ("AMD Holding") and AMD Saxony Admin GmbH ("AMD Admin") as

<PAGE>

     its sole limited partners (Kommanditisten) and AMD Saxony LLC ("AMD Saxony
     LLC") as its sole general partner (Komplementar);

3.   The parties hereto have agreed to make certain changes to the Syndicated
     Loan Agreement dated 11 March 1997, as amended on 6 February 1998, 29 June
     1999 and 20 February 2001 (hereinafter the "Loan Agreement"), and to the
     Operative Documents referred to therein, to reflect the Conversion and to
     make certain other amendments, all in accordance with the terms of this
     Agreement.

                                      ss. 1
                                   Definitions

1.1  The terms defined in the Loan Agreement will have the same meanings when
     used in this Agreement, except where the context otherwise requires. In
     addition, the following terms shall have the meaning set forth below:

"Agreed Terms" means, in respect of any document, that document substantially in
the form thereof which has been initialled (for the purposes of identification)
by or on behalf of AMD Saxonia and the Agent.

"Agreement" means this amendment agreement.

"Amendment Agreements" means those agreements and documents described in ss.ss.
4.1.1 through 4.1.9 below.

"Conversion" means the change in the legal form of AMD Saxonia from a
Gesellschaft mit beschrankter Haftung (a limited liability company) to a Limited
Partnership in accordance with the Conversion Documents and the Registration.

"Conversion Documents" means the following agreements and documents, each in the
Agreed Terms: (i) the Certificate of Formation of AMD Saxony LLC; (ii) the AMD
Admin Articles of Association; (iii) the Formation Protocol for AMD Admin, (iv)
the Application to the Commercial Register for Formation of AMD Admin; (v) the
Resolution of AMD Holding as Shareholder of AMD Admin for Section 181 German
Civil Code Release, (vi) the List of Shareholders for AMD Admin, (vii) the AMD
Saxony LLC Agreement; (viii) the Partnership Agreement of AMD Saxony LLC & Co.,
KG, (ix) the Assignment and Trust Agreement between AMD Holding and AMD

                                        2

<PAGE>

Saxony LLC, (x) the Purchase and Assignment Agreement between AMD Holding and
AMD Admin, (xi) the Resolution of AMD Holding as Shareholder of AMD Saxonia for
Transfer of Fractional Share to AMD Saxony LLC, (xii) the Notification to AMD
Saxonia of Assignment of Fractional Share to AMD Admin, (xiii) the List of
Shareholders of AMD Saxonia (reflecting addition of AMD Admin), (xiv) the
Resolution of AMD Holding and AMD Saxony LLC as Shareholders of AMD Saxonia for
Transfer of Fractional Share to AMD Admin, (xv) the Notification to AMD Saxonia
of Assignment of Fractional Share to AMD Saxony LLC, (xvi) the List of
Shareholders of AMD Saxonia (reflecting addition of AMD Saxony LLC), (xvii) the
Resolution of AMD Holding, AMD Admin and AMD Saxony LLC as Shareholders of AMD
Saxonia Approving Conversion to a Limited Partnership, (xviii) the Resolution of
AMD Inc. as Shareholder of AMD Holding Approving Conversion of AMD Saxonia,
(xix) Application to the Commercial Register for Conversion of AMD Saxonia to a
Limited Partnership; (xx) Application to the Real Estate Register for Change in
AMD Saxonia's Name, (xxi) the Transfer Agreement for Transfer Back Of Fractional
Share between AMD Holding and AMD Saxony LLC, (xxii) Application to the
Commercial Register for Transfer Back of Fractional Share by AMD Saxony LLC to
AMD Holding, (xxiii) Power of Attorney regarding Removal of AMD Saxony LLC as
General Partner of AMD Saxonia, and (xxiv) any other agreement or document
designated by the AMD Companies (with the consent of the Agent) in addition to
or in substitution for any of the above-named documents or agreements as a
"Conversion Document."

"Conversion Effective Date" means the date on which the Registration takes
effect.

"Limited Partnership" means a limited partnership (Kommanditgesellschaft) under
the laws of the Federal Republic of Germany.

"Registration" means the registration of the Conversion with the Commercial
Register at the Local Court in Dresden.

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

                                        3

<PAGE>

                                      ss. 2
                       Conversion to a Limited Partnership

2.1  Subject to ss. 4 and ss. 5.2, the Agent, the Security Agent and the Banks
     consent to and approve the Conversion in accordance with the terms and
     conditions of the Conversion Documents.

                                      ss. 3
                         Amendment of the Loan Agreement

3.1  With effect from the Conversion Effective Date, and subject to ss.4 and ss.
     5.2:

     3.1.1     the Loan Agreement is hereby amended in accordance with the
               changes marked as set out in Schedule 1 of this Agreement; and

     3.1.2     Schedules 1, 14, 22 and 62 of the Loan Agreement are hereby
               deleted and replaced with Schedules 1, 14, 22 and 62 as set out
               in Schedule 1 of this Agreement and the documents noted under the
               heading "Schedule 24" (as included in Schedule 1 of this
               Agreement) are to be added to the end of Schedule 24 of the Loan
               Agreement.

3.2  Save to the extent amended by ss. 3.1 above, the provisions of the Loan
     Agreement, together with the Schedules thereto, remain in full force and
     effect.

                                      ss. 4
                               Condition Precedent

4.1  ss.ss. 2 and 3 of this Agreement are subject to the condition precedent of
     the Agent having confirmed to the Banks in writing that it has received the
     documents set out in ss. 4.1.1 through ss. 4.1.27. The documents set out in
     ss. 4.1.18 through ss. 4.1.20, and ss. 4.1.27 must be satisfactory to the
     Agent in terms of content and form. The agreements specified in ss. 4.1.1
     through ss. 4.1.17, and in ss. 4.1.26 must have been entered into and/or
     executed in a legally binding manner and

                                        4

<PAGE>

     their validity may not be subject to any conditions (except conditions as
     to the occurrence of the Registration):

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

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

     4.1.3     Consent/Acknowledgement under the AMD Holding Wafer Purchase
               Agreement pursuant to Schedule 4;

     4.1.4     Amendment Agreement to Sponsors' Subordination Agreement pursuant
               to Schedule 5;

     4.1.5     Amendment Agreement to AMD Inc. Subordination Agreement pursuant
               to Schedule 6;

     4.1.6     Amendment Agreement to Revolving Loan Facility Agreement pursuant
               to Schedule 7;

     4.1.7     Amendment Agreement to Sponsors' Loan Agreement pursuant to
               Schedule 8;

     4.1.8     Amendment Agreement to AMD Saxonia Assignment (U.S.A.) pursuant
               to Schedule 9;

     4.1.9     Clarification and Security Agreement pursuant to Schedule 10;

     4.1.10    AMD Inc. Pledge Agreement over Membership Interests in AMD Saxony
               LLC pursuant to Schedule 11;

     4.1.11    AMD Saxony LLC Security Agreement pursuant to Schedule 12;

     4.1.12    AMD Saxony LLC Pledge Agreement over KG Partnership Interest in
               AMD Saxonia pursuant to Schedule 13;

                                        5

<PAGE>

     4.1.13    AMD Holding Pledge Agreement over GmbH-share in AMD Admin
               pursuant to Schedule 14;

     4.1.14    AMD Admin Global Assignment Agreement pursuant to Schedule 15;

     4.1.15    AMD Admin Pledge Agreement over KG Partnership Interest in AMD
               Saxonia pursuant to Schedule 16;

     4.1.16    AMD Admin Pledge of Bank Accounts pursuant to Schedule 17;

     4.1.17    AMD Holding Pledge Agreement over KG Partnership Interest in AMD
               Saxonia pursuant to Schedule 18;

     4.1.18    Written Acknowledgement of Sachsische Aufbaubank GmbH regarding
               the amendment of the Loan Agreement and the other Operative
               Documents contemplated herein;

     4.1.19    Written Approval of the Guarantors regarding the amendment of the
               Loan Agreement and the other Operative Documents contemplated
               herein;

     4.1.20    Written Acceptance of the Guaranty Decision executed by AMD Inc.
               and AMD Saxonia;

     4.1.21    Legal Opinion of the Law Office O'Melveny & Myers LLP, Counsel to
               AMD Inc, under U.S. law pursuant to Schedule 19;

     4.1.22    Legal Opinion of the Law Office Norr, Stiefenhofer & Lutz,
               Counsel to the AMD Companies pursuant to Schedule 20;

     4.1.23    Legal Opinion of the Law Office Baker & McKenzie, Counsel to the
               Agent and to the Banks pursuant to Schedule 21;

     4.1.24    Legal Opinion of the Law Office White & Case, Feddersen, Counsel
               to the Agent and to the Banks pursuant to Schedule 22;

                                        6

<PAGE>

     4.1.25    Fairness Opinion from Ernst & Young relating to Management Plan
               pursuant to Schedule 23;

     4.1.26    Certified copies of the Conversion Documents duly executed and in
               notarial form (as appropriate) and/or certified by the Secretary
               of State of the State of Delaware (as appropriate);

     4.1.27    Evidence that the increase of the Total Revolving Loan Commitment
               Amount has been consented to by the banks under the Loan and
               Security Agreement of 13 July 1999, as amended.

                                      ss. 5
                                    Covenants

5.1  AMD Saxonia undertakes with the Agent and the Banks to cause certificates
     in the form attached as Annexes I and II to Schedule 22 to the Loan
     Agreement to be delivered to the Agent by AMD Inc.'s Insurance Broker
     within 60 days following the Conversion Effective Date, at the Agent's
     request.

5.2  AMD Saxonia hereby undertakes with the Agent and the Banks that:

     5.2.1     it will promptly notify the Agent of the execution of the
               Conversion Documents; and

     5.2.2     it will not make any application for Registration prior to the
               Agent having given to the Banks the written confirmation referred
               to in ss. 4.1.

5.3  Any breach by AMD Saxonia of its obligations under ss. 5.2 shall constitute
     an event which entitles the Banks to terminate the Loan Agreement pursuant
     to Section 21 thereof.

5.4  AMD Saxonia undertakes to furnish the Agent promptly (and in any event
     within twenty days of the Registration) with a certified Commercial
     Registry extract for AMD Saxonia following the Registration.

                                        7

<PAGE>

5.5  The Agent undertakes that it shall provide to the Banks the written
     confirmation referred to in ss. 4.1 promptly following its receipt of the
     documents referred to in ss. 4.1.1 through ss. 4.1.27 in accordance with
     ss. 4.1 and to inform AMD Saxonia accordingly.

                                      ss. 6
                         Representations and Warranties

6.1  AMD Saxonia represents and warrants to the Banks, as of the date hereof and
     as of the Conversion Effective Date, as follows:

     6.1.1     AMD Saxonia has taken all necessary steps and obtained all
               necessary consents to enter into this Agreement, and, when
               entered into, will have taken all necessary steps and have
               obtained all necessary consents to enter into the Conversion
               Documents to which it is party, the Amendment Agreements to which
               it is a party and each other document referred to in ss. 4.1 to
               which it is a party in a legally binding manner and to exercise
               its rights thereunder.

     6.1.2     The execution by AMD Saxonia of this Agreement and the execution
               by each of AMD Inc., AMD Saxonia, AMD Holding, AMD Saxony LLC and
               AMD Admin of the Conversion Documents, the Amendment Agreements
               and each other document referred to in ss. 4.1 to which it is
               party, and the compliance by each of them of their obligations
               thereunder and the exercise by each of them of their rights
               thereunder:

               (i)   does not and, in the case of the Conversion Documents, the
                     Amendment Agreements and each of the documents referred to
                     in ss. 4.1 when entered into by it, will not violate any
                     provision of applicable law, any judgment or any
                     requirements or any approvals of any authority or the like
                     or contractual obligations or any other obligations
                     applicable to each of AMD Inc., AMD Saxonia, AMD Holding,
                     AMD Saxony LLC and AMD Admin;

               (ii)  does not and, in the case of the Conversion Documents, the
                     Amendment Agreements and each of the documents referred to

                                        8

<PAGE>

                     in ss. 4.1 when entered into by it, will not result in the
                     termination or acceleration of any other obligations of
                     each of AMD Inc., AMD Saxonia, AMD Holding, AMD Saxony LLC
                     and AMD Admin;

               (iii) subject to securities to be furnished, if necessary, in
                     accordance with Secs. 204, 22 UmwG (German Act on
                     Transformation of Companies), does not and, in the case of
                     the Conversion Documents, the Amendment Agreements and each
                     of the documents referred to in ss. 4.1 when entered into
                     by it, will not result in an obligation of any of AMD Inc.,
                     AMD Saxonia, AMD Holding, AMD Saxony LLC and AMD Admin to
                     create any security in favor of any third party, save as
                     contemplated in the Security Documents or in the Loan
                     Agreement (as amended by this Agreement).

     6.1.3     This Agreement, the Conversion Documents, the Amendment
               Agreements and each other document referred to in ss. 4.1 to
               which AMD Inc., AMD Saxonia, AMD Holding, AMD Saxony LLC and AMD
               Admin is a party constitutes, or when entered into by it, will
               constitute, its legally binding obligations which are enforceable
               in accordance with their terms, subject to the reservations made
               in the Legal Opinions. Those reservations comprise limitations on
               the enforceability of legal documents which are governed by
               German law or by U.S. federal or state law if and to the extent
               that express reservations have been made in this respect in the
               Legal Opinions to be delivered to and to be approved by the Agent
               pursuant to ss. 4.1.21 through ss. 4.1.24.

                                        9

<PAGE>

                                      ss. 7
                                  Miscellaneous

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

7.2  Without prejudice to the foregoing, AMD Saxonia hereby ratifies and
     confirms that its obligations under the Loan Agreement, as amended, shall
     continue in full force and effect following the Conversion.

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

7.4  This Agreement may be executed in any number of counterparts and by
     different parties on separate counterparts which when taken together shall
     constitute one agreement.

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

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

                                       10

<PAGE>

AMD SAXONY MANUFACTURING GMBH

 /s/  Dr. Hans-Raimund Deppe
--------------------------------------------------
Dr. Hans-Raimund Deppe
Its Managing Director (Geschaftsfuhrer)

DRESDNER BANK AG,
(as Security Agent and Lending Bank)

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

Other Lending Banks:

KREDITANSTALT FUR WIEDERAUFBAU

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

LANDESBANK BADEN-WURTTEMBERG

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

LANDESBANK SACHSEN GIROZENTRALE

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

                                       11

<PAGE>

BAYERISCHE LANDESBANK GIROZENTRALE

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

HVB BANQUE LUXEMBOURG SOCIETE ANONYME

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

BAYERISCHE HYPO- UND VEREINSBANK AG; MUNCHEN

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

BHF-BANK AKTIENGESELLSCHAFT

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

COMMERZBANK AKTIENGESELLSCHAFT, Filiale Dresden

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

DEUTSCHE POSTBANK AG BONN

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

HAMBURGISCHE LANDESBANK - GIROZENTRALE -

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

IKB DEUTSCHE INDUSTRIEBANK AG

          /s/  Prellwitz
--------------------------------------------------
Its Signatory under power of attorney

                                       12

<PAGE>

LANDESBANK RHEINLAND-PFALZ - GIROZENTRALE

               /s/  Prellwitz
------------------------------------------
Its Signatory under power of attorney

ABN AMRO BANK (DEUTSCHLAND) AG, Frankfurt

               /s/  Prellwitz
------------------------------------------
Its Signatory under power of attorney

CREDITANSTALT AG, Wien

               /s/  Prellwitz
------------------------------------------
Its Signatory under power of attorney

THE SUMITOMO MITSUI BANKING CORPORATION, Niederlassung Dusseldorf

               /s/  Prellwitz
------------------------------------------
Its Signatory under power of attorney

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

               /s/  Prellwitz
------------------------------------------
Its Signatory under power of attorney

                                       13

<PAGE>

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

                            SYNDICATED LOAN AGREEMENT

                              Dated 11 March 1997,

   as amended by Supplemental Agreements dated 6 February 1998, 29 June 1999,
                        20 February 2001 and 3 June 2002

                                      among

                          AMD SAXONY MANUFACTURING GMBH
                (proposed to be renamed "AMD Saxony LLC & Co KG")
                                  -as Borrower-

                                       and

                                DRESDNER BANK AG
                              - as Security Agent -

                                       and

                   THE OTHER BANKS AND FINANCIAL INSTITUTIONS
                                  named herein

                                  -as Lenders-

                                       and

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

                     Baker & McKenzie/Doser Amereller Noack

                                    Frankfurt

<PAGE>

                                     INDEX
                                     -----

Paragraph                                                                   Page
---------                                                                   ----

ss.1       Definitions and Interpretation .................................    2
ss.2       Facilities .....................................................   11
ss.3       Purpose ........................................................   12
ss.4       Utilization of the Facilities ..................................   12
ss.5       Conditions to Drawing ..........................................   14
ss.6       Interest, Commitment Fee, Payments .............................   20
ss.7       Term and Repayment .............................................   24
ss.8       Security .......................................................   25
ss.9       Illegality .....................................................   29
ss.10      Market Disruption; Alternative Method of Calculation ...........   29
ss.11      Increased Costs ................................................   30
ss.12      Indemnity ......................................................   31
ss.13      No Deductions or Withholdings ..................................   32
ss.14      Continuity Clause ..............................................   33
ss.15      Representations and Warranties .................................   33
ss.16      Reporting and Information Requirements .........................   37
ss.17      Covenants ......................................................   39
ss.18      Project Budget; Project Schedule ...............................   46
ss.19      Project Accounts ...............................................   46
ss.20      Consent of the Banks ...........................................   47
ss.21      Termination of the Facilities by the Banks .....................   48
ss.22      Agency Provisions ..............................................   53
ss.23      Administration of Security .....................................   56
ss.24      Paying Agent ...................................................   58
ss.25      Costs ..........................................................   59
ss.26      Assignment; Sub-participations .................................   60
ss.27      Miscellaneous ..................................................   61
ss.28      Governing Law ..................................................   65
ss.29      Jurisdiction ...................................................   65

                                       i

<PAGE>

                                    Schedules
<TABLE>
<CAPTION>
<S>               <C>
Schedule 1        Commitments of the Banks
Schedule 2        Drawdown Schedule
Schedule 3        Drawdown Notice
Schedule 4        Interest Rate Notice
Schedule 5        Notice of Prepayment
Schedule 6        Project Budget
Schedule 7        Project Schedule / Project Phases
Schedule 8        Quarterly Status Report
Schedule 9        [Scheduled Project Phase] Technical Completion Certificate (Obligors)
Schedule 10       [Scheduled Project Phase] Technical Completion Certificate (Technical Advisor)
Schedule 11       [left intentionally blank]
Schedule 12       [left intentionally blank]
Schedule 13       [left intentionally blank]
Schedule 14       Management Plan
Schedule 15       Disclosure Schedule
Schedule 16       Statement of Use and Source of Funds
Schedule 17       Financial Covenants
Schedule 18       Certificate of Compliance (Financial Covenants)
Schedule 19       Statement to Report of the Technical Advisor
Schedule 20       Governmental Approvals, Permits and Measures
Schedule 21       Confirmation of Auditor
Schedule 22       Insurance Provisions
Schedule 23       Cash Equivalent Investments
Schedule 24       Guaranty Decision
Schedule 25       AMD/Dresdner Subsidy Agreement
Schedule 26       SAB/Dresdner Subsidy Agreement
Schedule 27       AMD Inc. Guaranty
Schedule 28       Sponsors' Support Agreement
Schedule 29       Sponsors' Loan Agreement
Schedule 30       Sponsors' Subordination Agreement
Schedule 31       Sponsors' Consent and Agreement
Schedule 32       Sponsors' Guaranty
Schedule 33       AMD Holding Wafer Purchase Agreement
Schedule 34       AMD Holding Research, Design and Development Agreement
Schedule 35       AMD Saxonia Wafer Purchase Agreement
Schedule 36       AMD Saxonia Research, Design and Development Agreement
Schedule 37       Management Service Agreement
Schedule 38       License Agreement
Schedule 39       Design/Build Agreement; Contractors' Consent and Agreement
Schedule 40       Material Equipment Supply/Service Contracts; Consent and Agreement
Schedule 41       AMD Inc. Share Pledge Agreement
Schedule 42       AMD Inc. Subordination Agreement
</TABLE>

                                       ii

<PAGE>

                              Schedules (Continued)
<TABLE>
<CAPTION>
<S>               <C>
Schedule 43       AMD Saxonia Land Charge
Schedule 44       AMD Saxonia Security Assignment of Current Assets
Schedule 45       AMD Saxonia Security Assignment of Fixed Assets
Schedule 46       AMD Saxonia Assignment of Insurances
Schedule 47       AMD Saxonia Global Assignment
Schedule 48       AMD Saxonia Charge of Project Accounts
Schedule 49       AMD Saxonia Assignment of Contractual Rights
Schedule 50       AMD Saxonia Assignment (U.S.A.)
Schedule 50a      AMD Saxonia Hedging Agreement
Schedule 51       AMD Holding Share Pledge Agreement
Schedule 52       AMD Holding Security Assignment of Current Assets
Schedule 53       AMD Holding Global Assignment
Schedule 54       AMD Holding Charge of Bank Accounts
Schedule 55       AMD Holding Assignment of Contractual Rights
Schedule 56       AMD Holding Assignment (U.S.A.)
Schedule 57       Legal Opinion of Bronson, Bronson & McKinnon LLP (Indenture, Credit Agreement)
Schedule 58       Legal Opinion of O'Melveny & Myers LLP
Schedule 59       Legal Opinion of Norr Stiefenhofer & Lutz
Schedule 60       Legal Opinion of Baker & McKenzie
Schedule 61       Legal Opinion of Feddersen Laule Scherzberg & Ohle Hansen Ewerwahn
Schedule 62       General Terms and Conditions
Scheduel 63       Maximum 65/35 Guaranty Amount
</TABLE>

                                      iii

<PAGE>

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

                                     between

1.   AMD SAXONY MANUFACTURING GMBH (proposed to be renamed "AMD Saxony LLC & Co
     KG"), Dresden, registered in the Commercial Register of the Dresden County
     Court,

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

2.   DRESDNER BANK AG,

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

3.   The Banks and financial institutions listed in Schedule 1

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

     and

4.   DRESDNER BANK LUXEMBOURG S.A.

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

                                    PREAMBLE
                                    --------

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

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

     3.   AMD Inc. made available to AMD Saxonia, via AMD Holding, equity in the
          form of ordinary share capital in an aggregate amount of DM
          217,550,000, together with subordinated loans pursuant to the terms of
          the Sponsors' Support Agreement and the

<PAGE>

          Sponsors' Loan Agreement, totalling in aggregate DM 645,000,000 as at
          31 December 1999. Furthermore, AMD Inc. has undertaken to make
          available to AMD Saxonia subordinated revolving loans in an aggregate
          amount of US$750,000,000 pursuant to the Revolving Loan Facility
          Agreement (as defined below) to finance the general corporate funding
          requirements of AMD Saxonia.

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

     5.   Pursuant to the Conversion Documents, AMD Saxonia has changed its
          legal form to a Limited Partnership.

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

IT IS AGREED AS FOLLOWS:

                                      ss. 1

                         Definitions and Interpretation

1.1  Definitions of terms not defined above are as follows:

Agreed Terms:
     in respect of any document, that document substantially in the form thereof
     which has been initialled (for the purposes of identification) by or on
     behalf of AMD Saxonia and the Agent.

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

AMD Admin:
     AMD Saxony Admin GmbH, a limited liability company, with its seat in
     Dresden, a wholly-owned subsidiary of AMD Holding.

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

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

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

                                       2

<PAGE>

AMD Saxonia Partnership Agreement (AMD Saxonia Gesellschaftsvertrag):
     the partnership agreement of AMD Saxonia between AMD Holding, AMD Admin and
     AMD Saxony LLC dated 3 June 2002.

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

AMD Saxony LLC:
     a limited liability company organised under the laws of the State of
     Delaware, United States of America, a wholly-owned subsidiary of AMD Inc.

Amendment Agreements (Nachtragsvereinbarungen):
     the following agreements and documents, each dated 3 June 2002:

     (i)    the Amendment Agreement No. 4 to this Syndicated Loan Agreement
            between AMD Saxonia, the Security Agent, the Banks and the Agent;

     (ii)   the Accession Agreement and Fourth Amendment to the Sponsors'
            Support Agreement between the Sponsors, AMD Saxony LLC, AMD Admin,
            the Agent and the Security Agent;

     (iii)  the Third Amendment to the AMD Saxonia Wafer Purchase Agreement
            between AMD Holding and AMD Saxonia;

     (iv)   the Consent/Acknowledgement under the AMD Holding Wafer Purchase
            Agreement executed by AMD Holding, AMD Inc. and the Security Agent;

     (v)    the Accession Agreement and Second Amendment to the Sponsors'
            Subordination Agreement between the Sponsors, AMD Saxony LLC, AMD
            Admin, AMD Saxonia, the Agent and the Security Agent;

     (vi)   the Accession Agreement and Second Amendment to the AMD Inc.
            Subordination Agreement between the Sponsors, AMD Saxony LLC, AMD
            Admin, the Agent and the Security Agent;

     (vii)  the First Amendment to the Revolving Loan Facility Agreement between
            the Sponsors and AMD Saxonia;

     (viii) the Third Amendment to the Sponsors' Loan Agreement between the
            Sponsors and AMD Saxonia;

     (ix)   the First Amendment to the AMD Saxonia Assignment (U.S.A.) between
            AMD Saxonia and the Security Agent; and

     (x)    the Clarification and Security Agreement between the AMD Companies,
            the Agent and the Security Agent.

                                       3

<PAGE>

Assignment and Trust Agreement:
     the agreement referred to in (ix) of the definition of Conversion
     Documents.

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

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

     less

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

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

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

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

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

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

Conversion (Umwandlung):
     the change in legal form of AMD Saxonia from a Gesellschaft mit
     beschrankter Haftung (a limited liability company) to a Limited Partnership
     in accordance with the Conversion Documents and the Registration.

Conversion Documents (Umwandlungsdokumente):
     means the following agreements and documents, each in the Agreed Terms:

                                       4

<PAGE>

     (i)     the Certificate of Formation of AMD Saxony LLC;

     (ii)    the AMD Admin Articles of Association;

     (iii)   the Formation Protocol for AMD Admin;

     (iv)    the Application to the Commercial Register for Formation of AMD
             Admin;

     (v)     the Resolution of AMD Holding as Shareholder of AMD Admin relating
             to the releases of the managing director from the restrictions of
             Section 181 German Civil Code;

     (vi)    the List of Shareholders for AMD Admin;

     (vii)   the AMD Saxony LLC Agreement;

     (viii)  the AMD Saxonia Partnership Agreement;

     (ix)    the Assignment and Trust Agreement between AMD Holding and AMD
             Saxony LLC;

     (x)     the Purchase and Assignment Agreement between AMD Holding and AMD
             Admin;

     (xi)    the Resolution of AMD Holding as Shareholder of AMD Saxonia for
             Transfer of Fractional Share to AMD Saxony LLC;

     (xii)   the Notification to AMD Saxonia of Assignment of Fractional Share
             to AMD Admin;

     (xiii)  the List of Shareholders of AMD Saxonia (reflecting addition of AMD
             Admin);

     (xiv)   the Resolution of AMD Holding and AMD Saxony LLC as Shareholders of
             AMD Saxonia for Transfer of Fractional Share to AMD Admin;

     (xv)    the Notification to AMD Saxonia of Assignment of Fractional Share
             to AMD Saxony LLC;

     (xvi)   the List of Shareholders of AMD Saxonia (reflecting addition of AMD
             Saxony LLC);

     (xvii)  the Resolution of AMD Holding, AMD Admin and AMD Saxony LLC as
             Shareholders of AMD Saxonia Approving Conversion to Limited
             Partnership;

     (xviii) the Resolution of AMD Inc. as Shareholder of AMD Holding Approving
             Conversion of AMD Saxonia;

     (xix)   Application to the Commercial Register for Conversion of AMD
             Saxonia to Limited Partnership;

                                       5

<PAGE>

     (xx)    Application to the Real Estate Register for Change in AMD Saxonia's
             Name;

     (xxi)   the Transfer Agreement for Transfer Back Of Fractional Share
             between AMD Holding and AMD Saxony LLC;

     (xxii)  Application to the Commercial Register for Transfer Back of
             Fractional Share by AMD Saxony LLC to AMD Holding;

     (xxiii) Power of Attorney regarding Removal of AMD Saxony LLC as General
             Partner of AMD Saxonia; and

     (xxiv)  any other agreement or document designated by the AMD Companies
             (with the consent of the Agent) in addition to or in substitution
             for any of the above-named documents or agreements as a "Conversion
             Document."

Conversion Effective Date (Umwandlungsstichtag):
     the date on which the Registration takes effect.

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

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

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

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

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

Euro:
     the currency introduced at the start of the third stage of economic and
     monetary union pursuant to the treaty establishing the European Community,
     as amended by the treaty on European Union effective January 1, 1999.

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

                                       6

<PAGE>

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

     (ii)  in the Design Center.

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

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

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

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

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

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

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

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

     (vi)  the letter from C&L Deutsche Revision AG to Dresdner Kleinwort
           Wasserstein/Dresdner Bank AG dated 22 May 2002.

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

                                       7

<PAGE>

     amended, to this Agreement against the Guarantors' obligations under the
     aforesaid shortfall guaranties).

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

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

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

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

Limited Partnership (Kommanditgesellschaft):
     a limited partnership (Kommanditgesellschaft) under the laws of the Federal
     Republic of Germany.

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

Material Service Contract (wesentlicher Leistungsvertrag):
     each Service Contract

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

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

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

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

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

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

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

                                       8

<PAGE>

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

Operative Documents (Transaktionsdokumente):
     each of the following:

     (i)   the Project Agreements;

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

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

     (iv)  each of the Conversion Documents and each of the Amendment
           Agreements; and

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

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

Power of Attorney (Vollmacht):
     the document referred to in (xxiii) of the definition of Conversion
     Documents.

                                       9

<PAGE>

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

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

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

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

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

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

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

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

Registration (Eintragung):
     the registration of the Conversion with the Commercial Register in Dresden.

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

                                       10

<PAGE>

Revolving Loan Facility Agreement:
         the $750,000,000 subordinated unsecured Revolving Loan Facility
         Agreement dated 20 February 2001 between AMD Inc., AMD Holding, and AMD
         Saxonia, as amended by the First Amendment to the Revolving Loan
         Facility Agreement dated 3 June 2002.

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

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

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

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

Sponsors' Support Agreement:
         the agreement entered into between AMD Inc., AMD Holding, AMD Saxony
         LLC, AMD Admin, the Agent and the Security Agent entitled "Sponsors"
         Support Agreement".

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

Substitution (Komplementarwechsel):
         the substitution of AMD Admin as general partner of AMD Saxonia in
         place of AMD Saxony LLC, pursuant to the AMD Saxonia Partnership
         Agreement.

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

Total Revolving Loan Commitment Amount:
         means US$750,000,000 (seven hundred and fifty million US Dollars) or
         the "Euro Equivalent" (under, and as defined in, the Revolving Loan
         Facility Agreement) thereof, or such reduced amount as shall have been
         agreed upon by each of the Sponsors, AMD Saxonia, the Agent, and the
         Banks.

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

                                       11

<PAGE>

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

1.2      The terms referred to in the introduction to this Agreement, in the
         Preamble and in ss. 1.1 above shall, except where the context otherwise
         requires, have the same meanings when used in this Agreement. Unless
         the context requires otherwise, such terms shall also have such
         meanings when used in agreements, written notifications, confirmations
         and other documents which are issued pursuant to the terms of this
         Agreement. Unless the context requires otherwise, any reference to an
         Operative Document or a Project Agreement (including, in each case, any
         reference thereto as being in the form set out in a Schedule to this
         Agreement) shall be a reference to such Document or Agreement as it
         shall have been, or from time to time be, amended, varied, re-issued,
         replaced, novated or supplemented, in each case, in accordance with its
         terms and this Agreement. Any reference in this Agreement to the stated
         capital (Stammkapital) of AMD Saxonia shall, following the Conversion
         Effective Date, be deemed to be a reference to the capital (Haftsummen
         and Pflichteinlagen) of a Limited Partnership. Any reference to any
         other term which, in connection with AMD Saxonia, relates to the
         capital structure of a German limited liability company shall,
         following the Conversion Effective Date, be deemed to be a reference to
         that term which corresponds thereto in the context of the capital
         structure of a partnership.

                                      ss. 2
                                   Facilities

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

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

                                       12

<PAGE>

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

                                      ss. 3
                                     Purpose

3.1      Facility A shall be used only for the purpose of the partial financing
         of the Project Costs. Utilization of Facility A to finance Project
         Costs which are not Capital Expenditure is permitted only up to a
         maximum amount of DM 100,000,000 and only in respect of costs incurred
         before 1 January 1999.

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

                                      ss. 4
                          Utilization of the Facilities

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

4.2      Facility A

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

         Drawdowns in any Project Phase are permitted only in the amount of
         Project Costs which have been incurred during the same Project Phase,
         as the same are documented by invoices and other supporting evidence to
         be furnished together with the Drawdown Notice, as required below.
         Drawdowns in a current Project Phase are however permitted in respect
         of Project Costs which are shown to have been incurred in respect of an
         invoice for goods or services performed or delivered, submitted in the
         last thirty days prior to the end of a prior Project Phase and which
         have been included in full in the first Drawdown

                                       13

<PAGE>

         Notice of such current Project Phase. The preceding two sentences shall
         not apply to drawdowns requested following Completion.

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

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

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

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

         Amounts drawn and subsequently repaid may not be reborrowed.

4.2.2    [left intentionally blank]

4.2.3    [left intentionally blank]

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

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

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

--------------------
*** Confidential information omitted and filed separately with the Securities
    and Exchange Commission.

                                       14

<PAGE>

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

                                      ss. 5
                              Conditions to Drawing

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

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

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

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

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

--------------------
*** Confidential information omitted and filed separately with the Securities
    and Exchange Commission.

                                       15

<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       16

<PAGE>

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

         (xvi)    confirmation in writing from the State Ministry of Saxony for
                  Economics and Labour that it has received a Letter from the
                  European Commission confirming its non-objection to the
                  interest subsidies to be paid under the Subsidy Agreements.

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

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

5.1.8    The Agent has been furnished with the following documents:

         (i)      Documents relating to AMD Inc.

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

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

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

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

                  (e)      a duly signed  confirmation of the Secretary of the
                           Franchise Tax Board of the State of California,  USA,
                           in customary form, confirming that AMD

                                       17

<PAGE>

                           Inc. is in good standing, has no unpaid tax
                           obligations known to the Franchise Tax Board and is
                           entitled to carry on business in the State of
                           California; the provision of such confirmation shall
                           not, however, be necessary to the extent that such
                           confirmation cannot be provided for the reasons
                           disclosed in the Disclosure Schedule, provided the
                           decisions concerning the tax assessments have been
                           challenged bona fide in appropriate proceedings and
                           provision has been made therefor in accordance with
                           US GAAP.

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

         (ii)     Documents relating to AMD Holding

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

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

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

         (iii)    Documents relating to AMD Saxonia

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

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

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

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

                                       18

<PAGE>

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

5.1.11   The Agent has received the following legal opinions:

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

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

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

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

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

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

                                       19

<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       20

<PAGE>

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

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

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

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

                                      ss. 6
                       Interest, Commitment Fee, Payments

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

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

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

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

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

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

                                       21

<PAGE>

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

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

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

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

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

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

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

                                       22

<PAGE>

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

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

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

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

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

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

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

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

                                       23

<PAGE>

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

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

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

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

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

                                      ss. 7
                               Term and Repayment

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

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

--------------------
*** Confidential information omitted and filed separately with the Securities
    and Exchange Commission.

                                       24

<PAGE>

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

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

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

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

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

7.4.1    all drawdowns under the Facilities made after Completion,

         over

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

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

                                       25

<PAGE>

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

                                      ss. 8

                                    Security

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

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

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

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

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

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

                                       26

<PAGE>

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

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

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

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

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

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

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

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

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

                                       27

<PAGE>

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

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

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

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

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

8.1.20 the AMD Inc. Pledge Agreement over Membership Interests in AMD Saxony LLC
       dated 3 June 2002 between AMD Inc. and the Security Agent;

8.1.21 the AMD Saxony LLC Security Agreement dated 3 June 2002 between AMD
       Saxony LLC and the Security Agent;

8.1.22 the AMD Saxony LLC KG Partnership Interest Pledge Agreement in AMD
       Saxonia dated 3 June 2002 between AMD Saxony LLC and the Security Agent;

8.1.23 the AMD Holding Share Pledge Agreement over GmbH shares in AMD Admin
       dated 3 June 2002 between AMD Holding and the Security Agent;

8.1.24 the AMD Admin Global Assignment Agreement dated 3 June 2002 between AMD
       Admin and the Security Agent;

8.1.25 the AMD Admin Pledge of Bank Accounts dated 3 June 2002 between AMD Admin
       and the Security Agent;

8.1.26 the AMD Admin KG Partnership Interest Pledge Agreement in AMD Saxonia
       dated 3 June 2002 between AMD Admin and the Security Agent;

8.1.27 the AMD Holding KG Partnership Interest Pledge Agreement in AMD Saxonia
       dated 3 June 2002 between AMD Holding and the Security Agent; and

                                       28

<PAGE>

8.1.28 the Clarification and Security Agreement dated 3 June 2002 between the
       AMD Companies, the Security Agent and the Agent.

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

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

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

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

8.4    In the event that the Banks are entitled to terminate the Facilities
       pursuant to ss. 21 of this Agreement, AMD Saxonia hereby authorizes the
       Agent, on behalf of the Banks, to satisfy on its behalf all obligations
       of, and to discharge all claims against it (including those arising under
       extended retention of title clauses), at the expense of AMD Saxonia. AMD
       Saxonia waives its rights pursuant to ss. 267 II BGB and undertakes to
       reimburse the Agent promptly after request by the Agent all reasonable
       costs and expenses which the Agent may have incurred in connection with
       the exercise of its rights to satisfy obligations and discharge claims as
       aforesaid.

                                      ss. 9
                                   Illegality

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

                                       29

<PAGE>

becomes effective, together with accrued interest and all other amounts due at
the date of such notice.

                                     ss. 10
              Market Disruption; Alternative Method of Calculation

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

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

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

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

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

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

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

                                       30

<PAGE>

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

                                     ss. 11
                                 Increased Costs

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

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

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

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

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

11.2   An increase in costs or reduction of payment referred to in ss. 11.1 does
       not include:

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

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

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

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<PAGE>

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

                                     ss. 12
                                    Indemnity

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

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

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

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

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

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

                                     ss. 13
                          No Deductions or Withholdings

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

                                       32

<PAGE>

       confirming that the amount deducted or withheld has been paid to the
       relevant tax or other authority in the full amount.

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

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

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

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

                                     ss. 14
                                Continuity Clause

European Economic and Monetary Union anticipates the introduction of a single
currency and the substitution of the national currencies of Member States
participating in such Monetary Union. On the date on which the Deutsche Mark is
replaced by the single currency, conversion into such currency shall take
effect. The denomination of the original currency shall be retained for so long
as this is legally permissible. Conversions shall be based on the officially
fixed rate of conversion. Neither the introduction of the single currency nor
the substitution of the national currencies of the Member States participating
in such Monetary Union nor the fixing of the official rate of conversion nor any
economic consequences that arise from any of the aforementioned events or in
connection with such Monetary Union shall give rise to any right to terminate
prematurely, contest, cancel, rescind, modify, or renegotiate this Agreement or
any of

                                       33

<PAGE>

its provisions or to raise any other objections and/or exceptions or to assert
any claims for compensation. This Agreement shall continue in full force and
effect in accordance with its terms; in particular, interest rates which have
been set for an interest period shall remain unchanged for such interest period,
subject to any mandatory provisions.

                                     ss. 15

                         Representations and Warranties

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

15.1.1   AMD Saxonia is a duly organised and existing Limited Partnership; each
         of AMD Holding and AMD Admin is a duly organised and existing limited
         liability company (Gesellschaft mit beschankter Haftung) under the laws
         of the Federal Republic of Germany. AMD Saxony LLC is a duly organised
         and existing limited liability company under the laws of the State of
         Delaware, United States of America;

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

15.1.3   the certified Commercial Registry extracts furnished to the Agent and
         the notarially certified articles of association of AMD Saxonia, AMD
         Admin and AMD Holding, and a copy of the Certificate of Formation of
         AMD Saxony LLC, certified by the Secretary of State of the State of
         Delaware, the Conversion Documents and the other documents to be
         furnished pursuant to ss. 16.5 reflect in all respects the actual
         position existing on the date furnished to the Agent;

15.1.4   the execution of the Operative Documents by each of the AMD Companies
         and the compliance by each of them of their obligations thereunder and
         the exercise by each of them of their rights thereunder:

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

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

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

15.1.5   All Operative Documents entered into by the AMD Companies constitute
         the legally valid and binding obligations of AMD Saxonia, AMD Holding,
         AMD Saxony LLC, AMD Admin, and/or AMD Inc., respectively, enforceable
         in accordance with their terms, subject, however, to the Opinion
         Reservations. For this purpose, "Opinion Reservations" means
         limitations on the enforceability of legal documents which are subject
         to German law or the law of the United States of America or one of its
         states to the extent that in

                                       34

<PAGE>

         respect of these circumstances qualifications are expressly made in the
         legal opinions which were furnished to the Agent pursuant to ss. 5.1.11
         and which were approved by the Agent or in the legal opinions delivered
         to and accepted by the Agent under and pursuant to one of the Amendment
         Agreements to the Loan Agreement dated 6 February, 1998, 29 June, 1999,
         20 February, 2001 and 3 June 2002. The granting of the security
         pursuant to ss. 8.1.1 to ss. 8.1.28 (inclusive) will be effective to
         grant to the Security Agent and / or the Banks a first priority
         security interest in each case, subject to retentions of title
         permitted in accordance with this Agreement. At the date of entering
         into this Agreement, AMD Saxonia does not own any real property, save
         for the real property referred to in ss. 8.1.6;

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

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

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

15.1.9   To the best of its knowledge and belief, no Event of Default in
         relation to any of the Operative Documents exists on the Conversion
         Effective Date;

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<PAGE>

15.1.10   None of AMD Holding, AMD Saxony LLC (prior to a Substitution), AMD
          Admin or AMD Saxonia is insolvent or incapable of paying its debts as
          they fall due; none is in liquidation and no steps have been commenced
          for the dissolution of any of them;

15.1.11   100% of the capital partnership interests (Kapitalanteile) in AMD
          Saxonia are held by AMD Admin (as to Euro 250), AMD Holding (as to at
          least 99.99% (rounded to two decimal points) and AMD Saxony LLC (prior
          to a Substitution) (as to Euro 250 prior to its re-transfer of a
          fractional interest pursuant to the Conversion Documents, and as to 0%
          following such re-transfer), each of which holds no investment in any
          other person (except that AMD Admin is a wholly-owned subsidiary of
          AMD Holding). AMD Holding and AMD Saxony LLC are, in turn,
          wholly-owned subsidiaries of AMD Inc.;

15.1.12   The ordinary share capital of AMD Holding has been paid up in full and
          that of AMD Saxonia (prior to the Conversion Effective Date) has been
          paid up in accordance with the provisions of the Sponsors' Support
          Agreement; there have been no repayments of capital. AMD Saxonia has
          no equity participations in other companies;

15.1.13   AMD Holding, AMD Saxony LLC, AMD Admin or AMD Saxonia are"Unrestricted
          Subsidiaries" and not "Restricted Subsidiaries" within the meaning of
          the Loan and Security Agreement of July 13, 1999, as amended, between,
          inter alia, AMD Inc. and the Bank of America National Trust and
          Savings Association, as agent;

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

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

15.1.16   AMD Saxonia, AMD Saxony LLC, AMD Admin and AMD Holding have submitted
          all necessary tax filings within a reasonable time of the relevant due
          date and in any event before penalties attach thereto. None of AMD
          Saxonia, AMD Saxony LLC, AMD Admin or AMD Holding is in default in
          relation to the payment of any tax claims or any other public law
          claims, other than those referred to in ss. 15.1.17, which are due
          except for these which are being contested in good faith by
          appropriate proceedings and for which proper provision has been made
          in accordance with German generally accepted accounting principles or
          US GAAP (as applicable). There is no proposed tax assessment against
          AMD Saxonia, AMD Saxony LLC, AMD Admin or AMD Holding which would, if
          made, have a material adverse effect on the financial position of AMD
          Holding, AMD Saxony LLC, AMD Admin or AMD Saxonia, respectively;

                                       36

<PAGE>

15.1.17   All governmental or public law approvals, consents and measures
          (including those from the European Union) necessary for the proper
          implementation of the Project and the compliance by AMD Saxonia, AMD
          Saxony LLC, AMD Admin and AMD Holding of their obligations pursuant to
          the Operative Documents including in particular all such approvals,
          consents and measures necessary to ensure the legally binding nature
          of all governmental subsidies and grants in connection with the
          Project have been obtained, save for those set out in Part B to
          Schedule 20 and there are no grounds to believe that they could be
          revoked or cancelled or made subject to material restrictions;

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

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

15.1.20   Neither AMD Saxonia nor AMD Holding has engaged in any business or
          operation or incurred liabilities save in connection with their
          incorporation, the Project and the Operative Documents. Neither AMD
          Saxony LLC nor AMD Admin has engaged in any business or operation or
          incurred any liabilities save in connection with their incorporation,
          the Conversion Documents and the Operative Documents to which they are
          a party;

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

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

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

                                       37

<PAGE>

                                     ss. 16
                     Reporting and Information Requirements

16.1    AMD Saxonia will as soon as possible and in any event within five
        Banking Days after becoming aware thereof inform the Agent of the
        occurrence of an Event of Default within the meaning of ss. 21 or any
        other Event of Default which in the reasonable opinion of an experienced
        third party would affect the legal or risk position of the Banks under
        this Agreement in a manner which is more than immaterial by notice in
        writing setting out the relevant circumstances and describing the
        measures within its powers which AMD Saxonia proposes to take in
        relation thereto.

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

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

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

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

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<PAGE>

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

16.2.5  [left intentionally blank]

16.2.6  AMD Saxonia will furnish to the Agent the following:

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

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

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

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

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

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

                                       39

<PAGE>

                                     ss. 17
                                    Covenants

17.1    [left intentionally blank]

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

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

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

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

        (ii)    the Plans and Specifications.

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

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

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<PAGE>

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

17.8    AMD Saxonia will at all times maintain insurance which in type (all
        buildings, machines, other equipment, stock, business interruption,
        third party liability and the like), scope and amount is at least equal
        to the insurance cover of a comparable business and which, in addition,
        satisfies the requirements of the Operative Documents. In particular,
        AMD Saxonia undertakes to maintain the insurances referred to in
        Schedule 22 in the scope and on the terms and conditions therein
        referred to, save that AMD Saxonia shall be under no obligation to
        maintain insurance with respect to the risk of earthquake and floods,
        provided that it shall have first furnished to the Agent confirmation
        with respect thereto in writing from a third party (acceptable to the
        Agent) in form and substance satisfactory to the Banks and the
        Guarantors. The persons referred to in Schedule 22 shall be named in all
        contracts of insurance as an additional insured and the Security Agent
        as "loss payee" in accordance with Schedule 22. At the end of each
        financial year, AMD Saxonia will furnish to the Agent a complete list of
        the above insurances for the next succeeding financial year giving the
        details referred to in Schedule 22 together with confirmation from its
        insurance brokers and the Insurance Advisor that AMD's insurance cover
        complies with the said requirements.

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

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

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

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

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

                                       41

<PAGE>

                        suchdrawdowns are included in the terms of the Guaranty
                        and/or in the case of special guaranty issues on the
                        issue of the Guaranty.

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

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

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

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

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

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

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

                                       42

<PAGE>

       advance payments by AMD Saxonia in excess of an aggregate amount of DM
       20,000,000.

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

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

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

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

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

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

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

                                       43

<PAGE>

              DM 25,000,000 in any calendar year or (d) the disposal is of
              assets with an individual acquisition cost of less than DM 50,000
              or of stores supplies in the ordinary course of business;

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

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

              (b)   constitute trade credit,

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

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

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

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

       (vii)  make any payments (i) in connection with profits (Gewinnanspruch),
              including but not limited to, any and all rights and claims
              arising in connection with the capital accounts (Kapitalkonten),
              loan accounts (Darlehenskonten), and the private accounts
              (Privatkonten) of any partner (Gesellschafter), (ii) in connection
              with claims for distribution-quota (Auseinandersetzungsanspruche),
              including but not limited to, any compensation in case of
              termination (Auflosung), in particular claims for liquidation
              proceeds (Liquidationserlos) and the withdrawal (Ausscheiden) of a
              partner; (iii) in connection with a repayment of capital in the
              case of a capital reduction (Herabsetzung der Einlage oder der
              Pflichteinlage), repayment of capital (Ruckzahlung von Einlagen)
              or (iv) in connection with any other pecuniary claims (geldwerte
              Forderungen) to AMD Holding, AMD Saxony LLC or AMD Admin or (v) to
              make any other payment to AMD Inc. or to any affiliate of AMD
              Inc., save to the extent such payments are permitted pursuant to
              Section 3 of the Sponsors' Subordination Agreement, in the form
              set out in Schedule 30 or Section 6.3 of the Sponsors' Support
              Agreement;

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

                                       44

<PAGE>

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

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

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

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

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

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

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

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

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

       (xiv)  [left intentionally blank]

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

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

                                       45

<PAGE>

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

17.18    [left intentionally blank]

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

17.20    [left intentionally blank]

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

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

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

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

         (ii)     as and to the extent and at the times necessary such that AMD
                  Saxonia shall have sufficient funds to finance its general
                  corporate funding requirements, taking into

                                       46

<PAGE>

               account amounts then available for drawing under Facility A
               hereunder and other amounts then available to it, including
               without limitation amounts theretofore paid to AMD Saxonia under
               the AMD Saxonia Wafer Purchase Agreement.

         AMD Saxonia undertakes not to reduce or agree to reduce the Total
         Revolving Loan Commitment Amount to less than US$750,000,000 (seven
         hundred and fifty million US Dollars) without the consent of the Agent.

                                     ss. 18
                        Project Budget; Project Schedule

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

18.2     Within fourteen (14) days after the end of each Project Phase described
         in the Project Schedule, AMD Saxonia will furnish to the Agent the
         Scheduled Project Phase Technical Completion Certificates signed by the
         AMD Companies and the Technical Advisor in accordance with Schedules 9
         and 10 together with a confirmation pursuant to ss. 15.2. At the same
         time, AMD Saxonia will furnish an updated Management Plan approved by
         the Sponsors setting out all projected future Capital Expenditure in
         connection with the Project. Prior to Completion, AMD Saxonia will
         consult and agree with the Agent on a timely basis any amendments or
         variations to the Project Budget or the Project Schedule which it
         regards as necessary. Project Budgets and Project Schedules amended
         with the consent of the Agent, who may consult with the Technical
         Advisor, the Auditor and the Banks' Auditors with regard thereto, shall
         be regarded as Project Budgets and Project Schedules within the meaning
         of this Agreement.

                                     ss. 19
                                Project Accounts

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

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

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

                                       47

<PAGE>

19.4     [left intentionally blank].

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

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

                                     ss. 20
                              Consent of the Banks

20.1     In all cases in which AMD Saxonia requires the consent of the Agent,
         the Security Agent or the Banks pursuant to the provisions of this
         Agreement, the Agent, the Security Agent and/or the Banks shall be
         entitled to withhold their consent only if the legal or risk exposure
         of the Banks would otherwise be affected in a manner which is material.
         In this regard circumstances shall be regarded as material which
         relate, in particular, to:

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

         (ii)  the shareholding or capital structure of AMD Inc., AMD Holding,
               AMD Admin, AMD Saxony LLC and AMD Saxonia, except in connection
               with the Substitution (if any);

         (iii) the obligations of the Sponsors, AMD Saxony LLC and AMD Admin
               pursuant to the Sponsors' Support Agreement;

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

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

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

                                       48

<PAGE>

                                     ss. 21
                   Termination of the Facilities by the Banks

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

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

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

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

         (iv)  to realize the security provided by or on behalf of AMD Saxonia,

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

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

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

         (iii) AMD Saxonia, AMD Admin or AMD Holding ceases payment of its
               creditors or composition, insolvency or similar proceedings are
               applied for in respect of all of the assets of AMD Saxonia, AMD
               Admin or AMD Holding or a material part of the assets of AMD
               Saxonia, AMD Admin or AMD Holding are subject to mandatory
               attachment or AMD Saxonia, AMD Admin or AMD Holding enters into
               negotiations with respect to any extra-judicial composition
               proceedings;

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

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

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

                                       49

<PAGE>

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

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

         (ix)     AMD Holding, AMD Saxony LLC, AMD Admin or AMD Inc. does not
                  comply with any material provision of the Sponsors' Support
                  Agreement, the Sponsors' Loan Agreement in the form set out in
                  Schedule 29, as amended, the Revolving Loan Facility Agreement
                  or of any other Operative Documents to which it is a party
                  and, to the extent, the breach is capable of remedy, and, is
                  not remedied within seven (7) Banking Days after the Agent has
                  given written notice thereof; Articles I and III and Sections
                  4.1, 4.3, 6.2, 13.1 (i) (a) to (d) and (f), 13.1 (iii) and
                  (iv), 13.2, 13.3, 13.4 (i) to (viii) and (x), 13.5, 13.6 and
                  13.7 of the Sponsors' Support Agreement shall without
                  prejudice to the generality of the foregoing be regarded as
                  material;

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

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

         (xii)    any of the Operative Documents is or becomes invalid or
                  unenforceable or its validity or enforceability is challenged
                  by AMD Saxonia, any of the Sponsors, AMD Saxony LLC or AMD
                  Admin, or the Power of Attorney is revoked by AMD Saxony LLC,
                  AMD Admin or AMD Holding.

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

                                       50

<PAGE>

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

         (xv)    AMD Saxonia, AMD Holding, or AMD Inc. are in default with any
                 payment obligation in favor of a third party in an aggregate
                 amount of more than DM 15,000,000, or AMD Saxony LLC (except
                 with regard to any payment obligation of AMD Saxonia which is a
                 liability of AMD Saxony LLC by virtue of its general
                 partnership interest) or AMD Admin are in default with any
                 payment obligation in favor of a third party in an aggregate
                 amount of more than Euro 100,000;

         (xvi)   The occurrence of an "Event of Default" within the meaning of
                 the Loan and Security Agreement of 13 July 1999, as amended,
                 between, inter alia, AMD Inc. and Bank of America National
                 Trust & Savings Association as "Administrative Agent".

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

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

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

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

         (xxi)   AMD Saxony LLC, AMD Admin and AMD Holding cease to be the sole
                 partners of AMD Saxonia (except in connection with the
                 Substitution (if any)), AMD Holding ceases to have a capital
                 partnership interest (Kapitalanteil) of at least 99.99%
                 (rounded to two decimal points) in AMD Saxonia, (except in
                 connection with the Assignment and Trust Agreement), there is
                 any change in the Euro 250 partnership interest of AMD Admin,
                 (save in connection with the Substitution (if any)), AMD
                 Holding or AMD Saxony LLC ceases to be a wholly-owned

                                       51

<PAGE>

                  subsidiary of AMD Inc. or AMD Admin ceases to be a
                  wholly-owned subsidiary of AMD Holding.

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

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

                  (a) the Available Revolving Loan Facility Amount; and

                  (b) other cash resources available to AMD Saxonia,

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

         (xxiv)   the terms or conditions of the 65/35 Guaranty or of the
                  Guaranty Decision or the Subsidy Agreement are not complied
                  with or breached or the 65/35 Guaranty is no longer available
                  in full, or investment or interest grants or investments
                  subsidies or other material state assistance is not available
                  in the amount promised and AMD Inc. does not make available
                  compensation pursuant to the Operative Documents, or AMD
                  Saxonia, AMD Holding or AMD Inc. breaches the terms and
                  conditions of other state assistance material to the Project
                  and as a result thereof it is likely that the same will not be
                  available in their full amount or are revoked or cancelled;

         (xxv)    [left intentionally blank]

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

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

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

         (xxix)   the Agent has not received by 31 March 2000 written
                  confirmation  from the Technical  Advisor to the effect that
                  the conditions required for Completion in the

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         Technical Completion Certificate (Technical Advisor) as set out in
         Schedule 10 can be satisfied prior to 31 December 2000;

         (xxx)  Proceedings shall have been applied for or commenced in respect
                of AMD Inc. or AMD Saxony LLC:

                (a) seeking (i) to have an order for relief entered, or (ii)
                    seeking a declaration that AMD Inc. or AMD Saxony LLC is
                    insolvent or (iii) a declaration or finding, or seeking
                    dissolution, winding-up, charter revocation or forfeiture,
                    liquidation, reorganisation, arrangement, adjustment,
                    composition or other similar relief with respect to AMD Inc.
                    or AMD Saxony LLC, its assets or its debts under any law
                    relating to bankruptcy, insolvency, relief of debtors or
                    protection of creditors, termination of legal entities or
                    any other similar law now or hereafter in effect; or

                (b) seeking appointment of a receiver, trustee, liquidator,
                    assignee, sequestrator or other custodian for all or any
                    substantial part of its property in a non-bankruptcy
                    proceeding and such proceeding shall result in the entry,
                    making or grant of any such order for appointment; and

                (c) which in either of (a) or (b) above are not dismissed within
                    60 days of the commencement of such proceedings or such
                    appointment.

         (xxxi) AMD Inc. or AMD Saxony LLC shall: voluntarily suspend
                transaction of its business, cease payment of its creditors,
                make a general assignment for the benefit of its creditors;
                apply for or institute any of the proceedings described in ss.
                21.2 (xxx) hereof, or (whether or not any such proceeding have
                been applied for or commenced) shall consent to or acquiesce in
                any such order for relief, declaration, finding or relief
                described in ss. 21.2 (xxx), or to the taking of possession by
                any such custodian described in ss. 21.2 (xxx) of all or any
                substantial part of its property, dissolve, wind-up, revoke or
                forfeit its charter (or other constituent documents) or
                liquidate itself or any substantial part of its property, or
                shall take any corporate or similar action in furtherance of any
                of the foregoing.

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

                                     ss. 22
                                Agency Provisions

22.1     The Banks have agreed to participate in the profits and risks of the
         Facilities in the form of a disclosed consortium. Any joint and several
         liability, the Banks is excluded; each Bank is liable only for the
         relevant commitment undertaken by it pursuant to ss. 2 and

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         Schedule 1. Each Bank shall immediately inform the Agent in respect of
         any breach of the Operative Documents of which it becomes aware. A
         corresponding obligation shall apply to the Agent in the performance of
         its duties pursuant to ss. 22.3.

22.2     The Agent is acting on behalf of the Banks under this Agreement. The
         Banks hereby appoint the Agent to act on their behalf as Agent in
         relation to the rights and obligations of the Banks under this
         Agreement, with exception of rights and obligations pursuant to ss. 24,
         and the other Operative Documents pursuant to the terms thereof under
         the following terms and conditions. Each of the Banks hereby
         irrevocably authorizes the Agent to give on their behalf all
         contractually binding declarations in connection with the
         implementation in this Agreement and the other Operative Documents and
         to pursue their rights and obligations in accordance therewith. The
         Agent shall be exempted from the restrictions of ss. 181 BGB. The Agent
         shall be authorized to delegate authority to entities within its group
         or to persons subject to a professional duty of confidence and revoke
         the same free from any restrictions pursuant to ss. 181 BGB. Dresdner
         Bank AG shall in its capacity as house bank pursuant to the Subsidy
         Agreements, exercise its rights thereunder exclusively in accordance
         with the terms of such agreements.

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

22.3.1   verification of satisfaction of the conditions precedent pursuant to
         ss. 5.

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

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

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

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

22.3.6   the convening and conduct of meetings of the Banks;

22.3.7   implementation of resolutions of the Banks;

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

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

22.4     If the Agent issues a material instruction within the meaning of ss.
         22.3.4 each Bank, including the Agent, shall be entitled to require the
         convening of a meeting of the consortium. In addition, a meeting of the
         consortium can be required at any time by 25% of the votes of the
         Banks. Convening of the meeting shall be made in writing, by telex or
         by fax, setting out the agenda and subject to five (5) Banking Days
         notice or in urgent cases with such notice as is appropriate to the
         urgency of the matter. Meetings shall take place in Frankfurt am Main
         or such other location as is mutually agreed. Resolutions may be passed
         by way of written resolution if in the Agent's opinion, given the
         nature of the matter to be determined, a written resolution is
         appropriate and the Banks do not decline a written resolution procedure
         pursuant to the majority of Banks (in accordance with ss. 22.6).

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

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

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

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

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

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

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

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

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

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

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

22.10    Each Bank confirms that it has independently verified the
         creditworthiness of AMD Saxonia and the Sponsors and all Operative
         Documents and all other documents relating

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<PAGE>

         thereto in all respects and independently. If any Bank is of the
         opinion that the documents made available to it in connection with the
         Operative Documents do not comply with the contractual requirements
         such Bank shall be obliged to inform the Agent immediately thereof.

22.11    The Agent is entitled, on giving 60 days' notice, to transfer its
         rights and obligations as Agent to the Paying Agent. Resignation by the
         Agent from its role as Agent is possible only subject to 60 days'
         notice. If the Banks have not passed a resolution with the required
         majority (according to ss. 22.6) by the seventh Banking Day before the
         end of this period, the Agent shall appoint as its successor a Bank
         resident in Germany. The Agent may be dismissed with a majority of at
         least 75% of the votes of all the Banks. It shall be a condition of the
         Agent's dismissal that the function of the house bank within the
         meaning of the Subsidy Agreement and the function of the Paying Agent
         is assumed by another bank or financial institution. The Banks will
         consult with AMD Saxonia in advance in respect of any change in the
         Agent.

                                    ss. 23
                           Administration of Security

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

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

23.3     Each Bank shall be entitled at any time to require information from the
         Security Agent relating to the administration of the security. Without
         prejudice thereto, the Security Agent shall in any event keep the other
         Banks informed thereof in accordance with the

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         proper exercise of its discretion. In addition, the provisions of the
         German Civil Code relating to the relationship of agents (ss.ss. 662 et
         seq. BGB) shall apply to the relationship between the Security Agent
         and the other Banks.

23.4     The Security Agent shall not be liable or responsible for the validity
         and enforceability of the Security Documents nor shall the Security
         Agent assume any liability as to whether the relevant status of the
         security is sufficient to secure the claims of the Banks under this
         Agreement. In this context, each Bank shall be responsible for
         examining the documentation delivered to it and shall inform the
         Security Agent of any concerns it may have so that any such concerns
         may be taken account of by a mutually acceptable arrangement.

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

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

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

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

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

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         (ii)  in payment of accrued interest; and

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

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

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

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

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

                                     ss. 24
                                  Paying Agent

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

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

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

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24.4     The Paying Agent will pay to the Banks all interest, payments of
         principal and other payments due to the Banks pursuant to this
         Agreement on the relevant due date and to the accounts notified to the
         Paying Agent by individual Banks. To the extent that amounts are paid
         to the Banks without the Paying Agent having received a corresponding
         payment in full from AMD Saxonia on the same day, the Paying Agent may
         debit the relevant Bank accordingly.

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

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

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

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

                                     ss. 25
                                      Costs

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

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25.2     In the event of any payment received by a Bank either as a result of
         set off by such Bank or by AMD Saxonia or as a result of any other
         performance by AMD Saxonia as a result of which such Bank's claims are
         paid in excess of the proportion due to it in respect of its
         commitments in ss. 2 and Schedule 1, such Bank shall be obliged to make
         a payment to the Paying Agent for the account of the other Banks such
         as to place such other Banks in the position they would have been in
         had they received payment in proportion to their Commitments pursuant
         to ss. 2 and Schedule 1. To the extent any Bank pays such excess amount
         to the other Banks, such Bank shall have a claim against AMD Saxonia in
         an amount equal to the excess. This provision shall apply to any
         payment received from or on account of AMD Saxonia. This provision does
         not, however, apply in favor of a Bank which declined to participate in
         proceedings initiated by the other Banks which have led to successful
         claims being made under the Operative Documents. If any Bank is obliged
         to repay to AMD Saxonia any amount received from any of the other
         Banks, the other Banks shall be obliged to repay the amounts received
         by them to the Bank obliged to repay.

                                     ss. 26
                         Assignment; Sub-participations

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

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

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

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

                                     ss. 27
                                  Miscellaneous

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

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

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

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

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

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

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

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

       to the Agent and Paying Agent:

             Dresdner Bank Luxembourg S.A.
             26, rue due Marche-aux-Herbes
             L-2097 Luxembourg
             Attention:     Agencies
             Facsimile No.: (352) 4760 43222

       to the Banks:

             Dresdner Bank AG
             Ostra Allee 9
             01067 Dresden
             Attention:     Herrn Hans-Jurgen Hansen/Frau Heike Wetzel
             Facsimile No.: (49) 351 489 1300

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                  Kreditanstalt fur Wiederaufbau
                  Palmengartenstrasse 5 - 9
                  60325 Frankfurt am Main
                  Attention:     Herrn Ulrich Goretzki/Herrn Michael Andres
                  Facsimile No.: (49) 69 74 31 2016

                  DZ BANK AG Deutsche Zentral-Genossenschaftsbank
                  Am Platz der Republik
                  60265 Frankfurt am Main
                  Attention:     Herrn Lothar Ferber-Hammeke/Frau Ute Suffrian
                  Facsimile No.: (49) 69 7447 6098

                  Landesbank Baden-Wurttemberg
                  Friedrichstr. 24
                  70144 Stuttgart
                  Attention:     Herrn Steffen Franz
                  Facsimile No.: (49) 711 122 4814

                  Landesbank Sachsen
                  Girozentrale
                  Humboldtstr. 25
                  04105 Leipzig
                  Attention:     Herrn Tino Petzold/Herrn Matthias Muller
                  Facsimile No.: (49) 341 97 93 139

                  Bayerische Landesbank
                  Girozentrale
                  Briennerstrasse 20
                  80333 Munchen
                  Attention:     Frau Birgit Stuper
                  Facsimile No.: (49) 89 2171 23334

                  HVB Banque Luxembourg Societe Anonyme
                  4, rue Alphonse Weicker
                  L-2099 Luxembourg
                  Attention:     Frau Birgit Heincke/Frau Tessie Schuller
                  Facsimile No.: (352) 4272 4510

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

                                       63

<PAGE>

                  Commerzbank Aktiengesellschaft
                  Filiale Dresden
                  Devrient Strasse 3
                  01067 Dresden
                  Attention:     Herrn Christoph Hense/Herrn Frank Schulz
                  Facsimile No.: (49) 351 484 9111

                  Deutsche Postbank AG Bonn
                  Friedrich-Ebert-Allee 114-126
                  53113 Bonn
                  Attention:     Herrn Wolfgang Muller/Herrn Torsten Werner
                  Facsimile No.: (49) 228 920 23308

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

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

                  Landesbank Rheinland-Pfalz
                  - Girozentrale -
                  Grosse Bleiche 54 - 56
                  55098 Mainz
                  Attention:     Herrn Lothar Ayasse/Herrn Daniel Juncker
                  Facsimile No.: (49) 6131 13 3511/-2599

                  ABN AMRO Bank (Deutschland) AG
                  Mainzer Landstr. 65
                  60329 Frankfurt/Main
                  Attention:     Frau Hiltraud Dillmann
                  Facsimile No.: (49) 69 2690 2109

                  Creditanstalt AG
                  Schottengasse 6
                  A-1090 Wien
                  Attention:     Herrn Dr. Martin Frank/Frau Andrea Schein
                  Facsimile No.: (43) 1 53131 44209/71191 50730

                                       64

<PAGE>

                  The Sumitomo Mitsui Banking Corporation, Dusseldorf Branch
                  Prinzenallee 7
                  40549 Dusseldorf
                  Attention:     Herrn Thomas Senk
                  Facsimile No.: (49) 211 3619 277

                  Bayerische Hypo- und Vereinsbank AG, Munchen
                  Sederanger 4
                  80538 Munchen
                  Attention:     Frau Renate Bergler/Frau Sabine Vollmering
                  Facsimile No.: (49) 89 378 21801

       to AMD Saxonia:

                  AMD Saxony Manufacturing GmbH
                  Wilschdorfer Landstrasse 101
                  01109 Dresden
                  Attention:     Dr. Tillmann Blaschke
                  Facsimile No:  (49) 351 277 91 300

       to the Security Agent:

                  DRESDNER BANK AG
                  Ostra Allee 9
                  01067 Dresden
                  z. Hd.:        Herrn Hans-Jurgen Hansen/Frau Heike Wetzel
                  Facsimile No.: (49) 351 489 1300

27.8   The German language counterpart of this Agreement is binding.

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

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

                                      ss. 28
                                  Governing Law

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

                                       65

<PAGE>

                                     ss. 29

                                  Jurisdiction

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

Frankfurt am Main 11 March 1997

AMD SAXONY MANUFACTURING GMBH
(proposed to be renamed "AMD Saxony LLC & Co KG")

_______________________________

DRESDNER BANK AG
(as Security Agent and Bank)

_______________________________

Other Banks:

KREDITANSTALT FUR WIEDERAUFBAU

_______________________________

_______________________________

DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK

_______________________________

_______________________________

LANDESBANK BADEN-WURTTEMBERG

_______________________________

_______________________________

                                       66

<PAGE>

LANDESBANK SACHSEN GIROZENTRALE

_______________________________

_______________________________

BAYERISCHE LANDESBANK GIROZENTRALE

_______________________________

_______________________________

HVB BANQUE LUXEMBOURG SOCIETE ANONYME

_______________________________

_______________________________

BHF-BANK AKTIENGESELLSCHAFT

_______________________________

_______________________________

COMMERZBANK AKTIENGESELLSCHAFT, Dresden Branch

_______________________________

_______________________________

DEUTSCHE POSTBANK AG BONN

_______________________________

_______________________________

                                       67

<PAGE>

HAMBURGISCHE LANDESBANK - GIROZENTRALE -

_______________________________

_______________________________

IKB DEUTSCHE INDUSTRIEBANK AG

_______________________________

_______________________________

LANDESBANK RHEINLAND-PFALZ - GIROZENTRALE -

_______________________________

_______________________________

ABN AMRO BANK (DEUTSCHLAND) AG, Frankfurt

_______________________________

_______________________________

CREDITANSTALT AG, Wien

_______________________________

_______________________________

THE SUMITOMO MITSUI BANKING CORPORATION, Dusseldorf Branch

_______________________________

_______________________________

                                       68

<PAGE>

BAYERISCHE HYPO- UND VEREINSBANK AG, Munchen

_______________________________

_______________________________

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

_______________________________

_______________________________

                                       69

<PAGE>

                                   Schedule 1

                               Banks' Commitments

          The Banks and their Lending Offices                       Commitments

                                                                         DM

DRESDNER BANK AG,
Dresden ........................................................  190,909,090.91

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

LANDESBANK BADEN-WURTTEMBERG,
Stuttgart ......................................................  181,818,181.82

LANDESBANK SACHSEN - GIROZENTRALE -,
Leipzig ........................................................  100,000,000.00

BAYERISCHE LANDESBANK - GIROZENTRALE -,
Munchen ........................................................   90,909,090.91

HVB BANQUE LUXEMBOURG SOCIETE ANONYME,
Luxembourg .....................................................   90,909,090.91

DZ BANK AG DEUTSCHE ZENTRAL- GENOSSENSCHAFTSBANK,
Frankfurt am Main ..............................................   86,363,636.36

THE SUMITOMO BANK MITSUI BANKING CORPORATION,
Niederlassung Dusseldorf, Dusseldorf ...........................   72,727,272.73

BHF-BANK AKTIENGESELLSCHAFT,
Leipzig ........................................................   68,181,818.18

COMMERZBANK AKTIENGESELLSCHAFT Filiale Dresden,
Dresden ........................................................   68,181,818.18

DEUTSCHE POSTBANK AG Bonn
Bonn ...........................................................   68,181,818.18

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

IKB DEUTSCHE INDUSTRIEBANK AG,
Dusseldorf .....................................................   68,181,818.18

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

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

CREDITANSTALT AG,
Wien ...........................................................   31,818,181.82

                                 SCHEDULE 63-1

<PAGE>

          The Banks and their Lending Offices                       Commitments

BAYERISCHE HYPO- UND VEREINSBANK AG,
Munchen ......................................................     13,636,363.64
                                                                ----------------
                                                                1,500,000,000.00
                                                                ================

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