AMD 1998 Annual Report Download - page 71

AMD/Motorola Technology Development and License Agreement
December 3, 1998 - Execution Document
(ii) "Royalty Bearing Device" means a
semiconductor product manufactured using a
Logic Process Technology or other logic
process utilizing copper metallization and
sold by AMD as a production unit ***** of
the first commercial shipment of any product
using that specific process technology
(*****). Royalty Bearing Device will not
include any samples, prototypes or other
devices distributed for marketing, testing
or promotional purposes.
(b) Royalty Payments and Statements. Within thirty (30)
days after the close of each quarter during which Net
Revenue was received by AMD, AMD will pay to Motorola
royalty payments based on the ***** reflected in the
table set forth below.
*****
*****
*****
*****
*****
*****
Each payment will be accompanied by a statement
reflecting the Net Revenue received during the
quarter from Royalty Bearing Devices manufactured
under each Logic Process Technology or Derivative
Process of a Logic Process Technology.
(c) Audit. AMD will maintain appropriate books and
records necessary to verify the information contained
in the royalty statements. Motorola may upon
reasonable notice and at its expense during normal
business hours and not more than once each year have
a Big 6 certified public accounting firm review AMD's
books and records to verify the information contained
in the royalty statements. If the audit reveals a
deficiency in any royalty payment, AMD will promptly
pay the amount of that deficiency. If the audit
reveals that payments were made in excess of the
amounts due, AMD will be entitled to, at AMD's
election, either a prompt refund of the excess
payment or a credit towards future royalty
obligations. If the audit reveals a deficiency in
excess of ***** of the amount of the
***** Certain information on this page has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
Page 29
Source: ADVANCED MICRO DEVIC, 10-K, March 29, 1999